Grand City Properties S.A. / Key word(s): Final Results/Real Estate 18.03.2015 06:31 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 STRONG RESULTS FOR 2014 DRIVEN BY OPERATIONAL AND FINANCIAL ACHIEVEMENTS - FFO I of EUR 76 million, up 100% YOY; FFO I per share of EUR 0.66, up 32% YOY - FFO II of EUR 129 million, up 143% YOY - Rental and operating income increased to EUR 217 million, up 118% YOY - EBITDA at EUR 343 million, Net profit at EUR 244 million - Adjusted EBITDA increased to EUR 112 million, up 106 % YOY - EPRA NAV rose to EUR 1.44 billion, 67% increase from year end 2013 - Maintaining conservative leverage with 45% LTV - LTV is 34% assuming conversion of the convertible bond (share price is at 66% premium to the conversion price) - High financial flexibility with high amount of liquid assets, unencumbered assets and continuous access to capital markets - GCP received Investment Grade Rating from both S&P (BBB-) and Moody's (Baa2) Luxembourg, March 18, 2015 - Grand City Properties S.A. (the "Company", "GCP") announces the full year results for 2014. The results reflect an excellent operational performance in 2014 built on ongoing internal improvements, portfolio growth and solid financial stand benefiting from the corporate and financial achievements. Portfolio growth led by operational accomplishments The portfolio has increased in size from 26,000 units in December 2013 to 43,000 units in December 2014 (65% growth) and to 52,000 units in March 2015. The portfolio is well diversified and reflects exciting turnaround opportunities for the future. During 2014, the stabilized portion of the portfolio was increased from 33% to 40% and further increased to 43% until March 2015. Additionally, GCP accomplished a high adjusted EBITDA growth of 106% while maintaining balanced investments into its portfolio of EUR13.8 per sqm in CapEx and maintenance. Financial achievements substantially decreasing cost-of-debt GCP's prudent financial stand is reflected in the 2014 interest-coverage-ratio of over 5 (adj. EBITDA to interest) and debt-service-coverage-ratio of 4 (adj. EBITDA to interest and debt amortization). Due to its financial and operational improvements the Company obtained investment grade ratings of Baa2 from Moody's (February 2015) and BBB- from S&P (November 2014). In 2014 GCP achieved a low cost-of-debt of 2%, resulting from successful bond and convertible bond issuances, by refinancing bank loans at improved conditions and early redemption of straight bond Series B. Furthermore, in 2014 10% of the convertible bond, Series C, were converted to equity, triggered by the increasing share price which is 66% above the conversion price. GCP also announced a dividend policy for distributing 30% of the Company's FFO I. Continuous operational profitability, with further potential to unfold The operational and financial results are captured in an FFO I of EUR76m, EUR0.66 per share. The FFO I for the fourth quarter of 2014 alone amounted to EUR23 million, a quarterly annualized FFO of EUR92 million. The achievements of 2014 together with recent acquisitions will unfold their full impact in 2015, which is partially reflected in the March 2015 rental and operating income run rate (monthly annualized) of EUR280 million and FFO I run rate (monthly annualized) of EUR102 million (EUR0.84 per share). Furthermore, GCP has high financial flexibility including EUR270 million cash as of year-end 2014, which is supported by the recent issuance of EUR400 million perpetual hybrid notes in 2015 and EUR1.45 billion of unencumbered assets as of March 2015. Christian Windfuhr, CEO of Grand City Properties, comments: "Our annual results present an outstanding operational and financial performance, supported by the turnaround of our portfolio and by further growth opportunities. We are confidently progressing into 2015 and are looking forward to maintain the strong momentum and to exciting turnaround opportunities." The full 2014 annual report is available on the Company's website: http://grandcityproperties.com/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 modernisation 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) 887088-1128 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. 18.03.2015 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de ---------------------------------------------------------------------------