14.02.2014
Grand City Properties S.A., LU0775917882
DGAP-News: Standard & Poor's Ratings Services raised Grand City Properties S.A. rating to 'BB+' based on stronger capital structure; Outlook Stable
DGAP-News: Grand City Properties S.A., / Key word(s): Research
Update/Real Estate
Standard & Poor's Ratings Services raised Grand City Properties S.A.
rating to 'BB+' based on stronger capital structure; Outlook Stable
14.02.2014 / 18:52
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GRAND CITY PROPERTIES S.A.
Luxembourg, 14 February, 2014
Standard & Poor's Ratings Services raised Grand City Properties S.A. rating
to 'BB+' based on stronger capital structure; Outlook Stable
Standard & Poor's Ratings Services ('S&P') raised Grand City Properties
S.A. (the 'Company') rating from 'BB' to 'BB+' on its long-term corporate
credit rating and on the Company's bonds, due in 2020.
S&P provides a stable outlook reflecting their opinion that the Company's
steady tenant demand in its main locations should continue to support
rental income growth resulting in steady recurring cash flow. Additionally,
S&P highlight in their research update the significant portfolio growth GCP
has made and the improvement of the assets and tenant diversity.
The rating upgrade is the result of S&P's revised assessment of GCP's
improved financial risk profile. Due to the increased equity base, S&P
believes that the credit metrics will improve in the coming years.
Additionally, S&P's notes the Company's well-capitalized capital structure
with an equity ratio of about 50%, a reported loan-to-value (LTV) ratio
below 50% and an increased unencumbered asset base to more than 30%.
S&P emphasizes the significant headroom under the debt covenants and
projects an increase in occupancy in the assets, which should increase
rental values and therefore the headroom under the covenants.
The Standard & Poor's Ratings Services Research Update on Grand City
Properties S.A. is available on the Company's website:
http://www.grandcityproperties.com/en/downloads
About Grand City
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 6, Boulevard Pierre Dupong,
L-1430 Luxembourg and being registered with the Luxembourg trade and
companies register (Registre de Commerce et des Sociétés Luxembourg) under
number B 165560.
Grand City Properites focuses on investing in and managing turnaround
opportunities in the real estate property market in Germany, especially in
densely populated areas. The company improves the properties through
targeted modernization and intensive tenant management, vacancy decrease
and cost control and follows primarily a buy and hold strategy. For the
nine months ending September 2013, the Company reported an EBITDA of EUR
157 million (YOY increase of 70%), and a net profit of EUR 137 million (YOY
increase of 105%). EPRA NAV amounts to EUR 730 million, as of September 30,
2013 including the recent capital increase with proceeds of EUR 175
million. Since May 2012, Grand City Properties is listed on the Frankfurt
Stock Exchange Entry Standard. Further information:
www.grandcityproperties.com
Contact:
Grand City Properties S.A.
6, boulevard Pierre Dupong
L 1430 Luxembourg
www.grandcityproperties.com
Press Contact:
Katrin Petersen
Grand City Properties S.A.
T: +49 (30) 887088-1128
E: [email protected]
www.grandcityproperties.com
End of Corporate News
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