21.03.2017
Grand City Properties S.A. LU0775917882
DGAP-News: Grand City Properties S.A.financial year 2016 - results reflect a profitable year and increased portfolio quality
DGAP-News: Grand City Properties S.A. / Key word(s): Final Results/Real
Estate
Grand City Properties S.A.financial year 2016 - results reflect a profitable
year and increased portfolio quality
21.03.2017 / 07:30
The issuer is solely responsible for the content of this announcement.
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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. FINANCIAL YEAR 2016 - RESULTS REFLECT A
PROFITABLE YEAR AND INCREASED PORTFOLIO QUALITY
- Rental and operating income at EUR436 million for FY 2016, up 31% from
2015
- EBITDA increased by 69% to EUR825 million in 2016
- Adjusted EBITDA for 2016 at EUR225 million, an increase of 27% to 2015
- FFO I in 2016 amounted to EUR160 million, up 25% from 2015
- FFO I per share at EUR1.05, FFO I per share after perpetual notes
attribution at EUR0.92 (up 4% and 3% YOY, respectively)
- Rating improved to BBB+ by S&P and Baa2 positive by Moody's
- FFO II at EUR229 million for full year 2016, following favorable disposals
of non-core properties during the year
- Net profit increased by 66% amounting to EUR653 million in 2016; earnings
per share at EUR3.56, an increase of 31%
- Equity at EUR3.1 billion, reflecting a 41% growth to year-end 2015; Equity
ratio at 50%
- EPRA NAV including perpetual notes increased to EUR3.2 billion and
EUR20.7, both up by 34% from year-end 2015
- EPRA NAV at EUR2.5 billion and EUR16.4 per share, both up 32% from
year-end 2015
- LTV at 35%, down from 42% as of year-end 2015
- Maintaining a conservative financial position with ICR of 6.2x, and DSCR
of 4.7x
- Like-for-like occupancy growth at 2.9% p.a., l-f-l in-place rent growth at
2% p.a.
- Increased dividend payout ratio to 65% of FFO I per share starting from
2016 dividend results in EUR0.68 dividend per share, up 172% from last
year's dividend
Luxembourg, March 21, 2017 - Grand City Properties S.A. (the "Company") is
pleased to publish its FY 2016 results, concluding a highly successful year
in which the Company continued to perform profitably, increasing occupancy
and rent levels across its portfolio, as well as further expanded the
portfolio to 84k units.
The net profit in 2016 amounted to EUR653 million, with the operational
measure of FFO I at EUR160 million increasing 25% from 2015, following
operational improvements alongside new acquisitions made over the year.
Capital gains and revaluations amounted to EUR598 million for 2016 capturing
the discounted long term value of GCP's efforts in driving forward the
operational quality of its portfolio.
FFO II amounted to EUR229 million for 2016, a result of EUR69 million
disposal gains that reflect a disposal profit margin of 79%, indicating the
importance of the Company's deal sourcing capabilities and its ability to
pursue various opportunities to improve the assets under its management.
As of February 2017, GCP's portfolio generates an annualized rental and
operating income run rate of EUR462 million, adjusted EBITDA EUR237 million
and FFO I run rate at EUR168 million, translating to an FFO I per share run
rate of EUR1.09.
EPRA vacancy at 7.8% in February 2017 down from 12.5% as of December 2015 is
indicative of the success of the Company in investing funds and efforts in
improving the quality and profitability of its portfolio.
The Board of Directors has decided to increase the long term dividend policy
to a payout ratio of 65% of FFO I per share, starting from the 2016 dividend
which will be paid after the AGM around July 2017. The revision of the
payout ratio from formerly 50% was made in view of the robust balance sheet
of the Company, its strengthened position and mature stage, and the
objective to enable our investors to further benefit from our accretive
shareholder value creation. The Board's 2016 dividend distribution proposal
for the AGM results in EUR0.68 per share, compared to EUR0.25 per share for
2015, reflecting a 172% increase.
Systematically improving operations, reducing leverage and maintaining
outstanding coverage ratios resulted in improved credit rating
As of December 2016 the NAV amounted to EUR2.7bn and EUR17.7 per share,
reflecting an increase of 33% from year-end 2015. The EPRA NAV resulted to
EUR2.5bn, an increase of 32% from December 2015. EPRA NAV including the
equity instrument of perpetual notes amounts to EUR3.2bn at December 2016,
an increase of 34%, supported by the issuance of EUR200 million perpetual
notes in September 2016.
Concluding the financial year, LTV decreased to 34.9% as of December 2016,
from 41.9% as of December 2015. The LTV is far clear of the Company's limit
of 45% decided upon by the Board of Directors. The strong balance sheet
position is further supported by an unencumbered assets level of 56% (EUR2.8
billion) and cash and liquid asset balance of EUR632 million as of December
2016.
ICR at 6.2x for 2016 is another result of the modest leverage approach of
the Company and its practice of keeping wide financial buffer positions.
GCP's conservative financial conduct coupled with steadily strengthening its
business position are viewed favorably in the credit rating development of
the Company. In November 2016, S&P increased GCP's corporate credit rating
to BBB+ (A-2 Short Term) validating the Company's strengthened position
within the Business risk profile. Also in November 2016, Moody's changed the
rating of GCP's outlook to Baa2 positive.
Strengthening the Company's position in the capital markets and providing
more visibility
GCP announced during the fourth quarter of 2016 its decision to apply for
admission to trading of the Company's shares in the Frankfurt Stock Exchange
prime standard during 2017. With the FY 2016 publication GCP has implemented
EPRA's Best Practice Recommendations including all key financial indicators
and has included additional disclosures to increase visibility and
crystalize the operational and financial performance.
Christian Windfuhr, CEO of Grand City Properties: "GCP has achieved a very
successful year in 2016, a result of us systematically guiding our efforts
to where we make an impact - identifying the value add aspects in our
assets, and applying decisive, confident and professional actions to improve
their operations. In addition, we kept our focus on sourcing new deals that
match our investment criteria and complement the strength of our portfolio.
The new acquisitions increase the pool of value add drivers available for us
to pursue, going into 2017.
The full FY 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 residential 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: [email protected]
www.grandcityproperties.com
Press Contact:
Katrin Petersen
Grand City Properties S.A. T: +49 (30) 374-381 5218
E: [email protected]
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.
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21.03.2017 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.
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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 (Scale) in Frankfurt; Luxemburg
End of News DGAP News Service
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556055 21.03.2017
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