Grand City Properties S.A., LU0775917882

Grand City Properties S.A., LU0775917882

17.11.2016 - 07:00:05

Grand City Properties S.A.: ANNOUNCES RESULTS FOR Q3 2016, REFLECTING STRONG OPERATIONAL PERFORMANCE AND PROFITABILITY

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS

GRAND CITY PROPERTIES S.A. ANNOUNCES RESULTS FOR Q3 2016, REFLECTING STRONG OPERATIONAL PERFORMANCE AND PROFITABILITY

- Rental and operating income up 36% YOY, at EUR320 million for the first 9 months 2016

- EBITDA increased 78% YOY to EUR630 million

- Adjusted EBITDA at EUR165 million for the 9 months 2016, up 35% YOY

- FFO I for the 9 months 2016 increased to EUR117 million, up 33% YOY

- FFO I per share at EUR0.76, FFO I per share after perpetual notes attribution at EUR0.67 (up 7% and 6% YOY, respectively)

- FFO II at EUR153 million for the first 9 months 2016, following disposals of non-core properties over the period

- Net profit increased by 73% YOY, reaching EUR495 million; earnings per share at EUR2.66, 29% increase YOY

- Equity at EUR3 billion, up 36% since December 2015; Equity ratio at 48%

- EPRA NAV including perpetual notes increased to EUR3.3 billion, EPRA NAV EUR2.6 billion

- LTV at 38%, down from 42% as of year-end 2015

- Maintaining a conservative financial position with ICR of 6.2x, and DSCR of 4.6x

- Like-for-like occupancy growth at 2.9% p.a., l-f-l in-place rent growth at 2.1% p.a.

Luxembourg, November 17, 2016 - Grand City Properties S.A. (the "Company") concludes the first 9 months of 2016 with high profitability of a net profit of EUR495 million and an FFO I of EUR117 million. Fundamental operational achievements over the period coupled with prudent acquisitions of assets complementing the quality of the portfolio have positioned the Company towards sustaining this operational momentum going forward. The portfolio increased to 84k units as of October 2016, with EPRA vacancy at 8.1%. Annualized rental and operating income run rate generated by the portfolio amounts to EUR452 million, FFO I run rate at EUR164 million.

Continue to benefit from incremental achievements in the portfolio while solidifying a diverse financing structure to support its long term operation GCP is diligently and in an ongoing manner investing its efforts in extracting more and more of the potential embedded in its current portfolio, driving vacancy down, directing capex to where is it best utilized and improving tenant satisfaction. The adjusted EBITDA in the first 9 months of 2016 amounted to EUR165 million, an increase of 35% from the same period in 2015, attributed to the operational improvements achieved, coupled with contribution of newly acquired assets over the period, which in turn increase the pool of future profitability drivers available to the Company to sustain its internal growth momentum.

At the end of Q3 2016 the EPRA NAV amounted to EUR2.6bn, an increase of 27% from December 2015. EPRA NAV including the equity of perpetual notes amounts to EUR3.3bn at September 30, 2016, an increase of 30% compared to December 2015.

GCP views its financial position as of September 2016 as highly favorable with an LTV at 38%, significantly below Board of Directors LTV limit of 45%, a level recently reduced from previously 50%.

Christian Windfuhr, CEO of Grand City Properties: "2016 is shaping up to be an excellent year for the company. Our adherence to highly conservative financial policy and acquisition criteria directed by quality guidelines is having an incremental effect that is becoming ever more evident as time progresses, solidifying the company's profitability level based on a well- constructed, diverse and high quality portfolio".

The full Q3 2016 interim report is available on the Company's website: http://www.grandcityproperties.com/en/downloads.html

About the Company:

Grand City Properties is a specialist real estate company focused on investing in and managing value-add opportunities in the real estate property market in Germany, primarily in densely populated areas. The Company's strategy is to improve its properties through targeted modernization and intensive tenant management, and then create value by subsequently raising occupancy and rental levels. Further information: www.grandcityproperties.com

Grand City Properties (ISIN: LU0775917882) is a public limited liability company (société anonyme) incorporated under the laws of the Grand Duchy of Luxembourg, having its registered office at 24, Avenue Victor Hugo, L 1750 Luxembourg and being registered with the Luxembourg trade and companies register (Registre de Commerce et des Sociétés Luxembourg) under number B 165 560. Since May 2012, Grand City Properties is listed on the Frankfurt Stock Exchange.

Contact:

Grand City Properties S.A. 24, Avenue Victor Hugo

L-1750 Luxemburg T: +352 28 77 87 86 E: info@grandcity.lu

www.grandcityproperties.com

Press Contact:

Katrin Petersen

Grand City Properties S.A. T: +49 (30) 374-381 5218 E: katrin.petersen@grandcity.lu

Disclaimer:

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.

THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFERING OF THE SECURITIES IN THE UNITED STATES.

THIS ANNOUNCEMENT IS DIRECTED AT AND IS ONLY BEING DISTRIBUTED IN THE UNITED KINGDOM TO (I) PERSONS WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE "ORDER"), (II) HIGH NET WORTH ENTITIES, AND OTHER PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED FALLING WITHIN ARTICLE 49 OF THE ORDER, AND (III) PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). THIS COMMUNICATION MUST NOT BE READ, ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS.

IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA ("EEA"), THIS ANNOUNCEMENT AND ANY OFFER IF MADE SUBSEQUENTLY IS DIRECTED ONLY AT PERSONS WHO ARE "QUALIFIED INVESTORS" WITHIN THE MEANING OF ARTICLE 2(1)(E) OF DIRECTIVE 2003/71/EC, AS AMENDED (THE "PROSPECTUS DIRECTIVE") ("QUALIFIED INVESTORS"). ANY PERSON IN THE EEA WHO ACQUIRES THE SECURITIES IN ANY OFFER (AN "INVESTOR") OR TO WHOM ANY OFFER OF THE SECURITIES IS MADE WILL BE DEEMED TO HAVE REPRESENTED AND AGREED THAT IT IS A QUALIFIED INVESTOR. ANY INVESTOR WILL ALSO BE DEEMED TO HAVE REPRESENTED AND AGREED THAT ANY SECURITIES ACQUIRED BY IT IN THE OFFER HAVE NOT BEEN ACQUIRED ON BEHALF OF PERSONS IN THE EEA OTHER THAN QUALIFIED INVESTORS, NOR HAVE THE SECURITIES BEEN ACQUIRED WITH A VIEW TO THEIR OFFER OR RESALE IN THE EEA TO PERSONS WHERE THIS WOULD RESULT IN A REQUIREMENT FOR PUBLICATION BY THE COMPANY OR ANY OF THE MANAGERS OF A PROSPECTUS PURSUANT TO ARTICLE 3 OF THE PROSPECTUS DIRECTIVE.

THIS ANNOUNCEMENT MAY CONTAIN PROJECTIONS OR ESTIMATES RELATING TO PLANS AND OBJECTIVES RELATING TO OUR FUTURE OPERATIONS, PRODUCTS, OR SERVICES, FUTURE FINANCIAL RESULTS, OR ASSUMPTIONS UNDERLYING OR RELATING TO ANY SUCH STATEMENTS, EACH OF WHICH CONSTITUTES A FORWARD-LOOKING STATEMENT SUBJECT TO RISKS AND UNCERTAINTIES, MANY OF WHICH ARE BEYOND THE CONTROL OF GRAND CITY PROPERTIES S.A. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.

17.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language: English Company: Grand City Properties S.A. 24, Avenue Victor Hugo 1750 Luxembourg Grand Duchy of Luxembourg Phone: +352 28 77 87 86 Fax: +352 28 77 87 84 Internet: http://grandcityproperties.com ISIN: LU0775917882, XS1036325527, XS1130507053, XS1191320297, XS1199992196, XS1220083551, WKN: A1JXCV , A1ZD10, A1ZRRK, A1ZW4K, A1ZYA8, A1ZZ49 Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Open Market (Entry Standard) in Frankfurt ; Luxemburg End of News DGAP News Service

521713 17.11.2016

@ dgap.de

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