Grand City Properties S.A. / Key word(s): Quarterly / Interim Statement/Real Estate 17.05.2016 07:00 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer / publisher is solely responsible for the content of this announcement. --------------------------------------------------------------------------- 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 FIRST QUARTER 2016 RESULTS SHOWING CONSIDERABLE OPERATIONAL ACHIEVEMENTS - Rental and operating income at EUR101 million, up 54% YOY - EBITDA at EUR122 million, up 30% YOY - Adjusted EBITDA increased by 56% YOY to EUR53 in Q1 2016 - FFO I increased by 50% YOY to EUR38 million - FFO I per share after Hybrid Notes attribution at EUR0.22, up 10% YOY - Net profit increased to EUR90 million, earning per share at EUR0.47 - Equity at EUR2.4 billion, up 11% since year end 2015; Equity ratio at 46% - EPRA NAV increased to EUR2.18 billion, and EUR2.66 billion including perpetual hybrid notes - LTV at 40%, down from 42% as of December 2015 - Sustaining a conservative financial structure with ICR of 5.8x, and DSCR of 4.6x, up from 5.7x and 4.3x respectively in Q1 2015 - Like-for-like occupancy growth at 3.3% p.a., l-f-l in-place rent growth at 2.3% p.a. Luxembourg, May 17, 2016 - Grand City Properties S.A. (the "Company", "GCP") started 2016 with successful portfolio growth and operational improvements. The portfolio increased to 80 thousand units as of May 2016, generating an annualized rental and operating income run rate of EUR423 million and an FFO I run rate of EUR155m. Turnaround efforts bearing fruit, further internal growth complementing the external growth by acquisitions The Company's significant efforts in improving the operational aspects of its assets are materializing continuously in improved occupancy rates and rental income level, supporting strong profitability. Vacancy decreased to below 10% of rentable area as of May 2016, down from 12.3% year-over-year and in-place rent at 5.3 EUR/sqm compared to 5.2 EUR/sqm as of May 2015. The Company's efficient corporate structure allows to maintain its high profitability in parallel to the significant growth. The Adjusted EBITDA in the first quarter 2016 amounted to EUR53 million, increasing by 56% compared to Q1 2015, and higher than the 54% increase in rental and operation income over the same period. Strong and well balance capital and debt structure GCP maintains its conservative debt structure and ends the first quarter of 2016 with an LTV of 40% and an equity ratio of 46%, providing substantial financial headroom. Strong operational achievements with low interest expenses result in strong cover ratios as GCP is maintaining a highly diversified financing structure resulting in a lower cost of debt of 1.6%. Christian Windfuhr, CEO of Grand City Properties: "Grand City is in the right path of making 2016 a strong and profitable year, capitalizing on our tremendous growth in 2015 and the steadily unfolding potential in our portfolio." The full Q1 2016 interim report is available on the Company's website: http://grandcityproperties.com/en/downloads.html About the Company: Grand City Properties is a specialist real estate company focused on investing in and managing turnaround 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 165560. 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. 17.05.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de ---------------------------------------------------------------------------