Grand City Properties S.A. / Key word(s): Final Results/Real Estate 18.03.2016 07:04 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. FINANCIAL YEAR 2015 - PRESENTS CONTINUED IMPROVEMENT ON THE OPERATIONAL AND FINANCIAL METRICS - Rental and operating income at EUR333 million, up 54% YOY - EBITDA at EUR488 million, up 42% YOY - Adjusted EBITDA increased to EUR177 million, up 58% YOY - FFO I increased to EUR128 million, up 68% YOY - FFO I per share after Hybrid Notes attribution at EUR0.89, up 35% YOY - FFO II at EUR171 million, up 32% YOY - Net profit at EUR394 million, up 61% YOY; EPS (Basic) at EUR2.71, up 52% YOY - Equity at EUR2.17 billion, up 109% YOY; Equity ratio up at 46%, and 49% after conversion of the convertible bond, fully converted as of January 2016 - EPRA NAV reached EUR2.07 billion, and EUR2.54 billion including perpetual hybrid notes - LTV of 42%, down from 45% year-end 2014. After conversion of the convertible bond LTV is 39% - Sustaining a conservative financial structure with ICR of 6.8, up from 5.1 in 2014, and DSCR of 4.7, up from 4.0 in 2014 - Like-for-like occupancy growth at 3.0% p.a., l-f-l in-place rent growth at 2.5% p.a. Luxembourg, March 18, 2016 - Grand City Properties S.A. (the "Company", "GCP") proudly announces the results for the year 2015, a period of profitable and exciting developments in all business aspects. GCP demonstrated in 2015 the scale of its business foundations by successfully expanding the portfolio by additional 33,000 units, while maintaining high operational standards. The March 2016 portfolio of 78,000 units is generating an annualized rental and operating income run rate of EUR412 million and an FFO I run rate of EUR151m. Strong operational platform resulting in increasing operational efficiency The year-over-year operational performance improvement is due to a combined effect of internal growth supported by robust like-for-like development and successful external growth, made possible by the strong operational platform. The vacancy has been reduced to 10.8% and the in-place rent increased up to 5.3 EUR/sqm as of March 2016, translating to an increasing adjusted EBITDA and finally to additional capitalized value. Over the same period, adjusted EBITDA amounted to EUR177 million, an increase of 58%, higher than the 54% increase in rental and operation income, reflecting the operational efficiency of GCP. FFO I increased further by 68% to EUR128 million, supported by preferred cost of debt. Conservative debt structure, high headroom for future growth GCP as of December 2015 is in a position of low leverage to support future growth opportunities. LTV is at 39%, accounting for conversion of the Series C convertible bond, which was fully converted by January 2016. With EUR389 million of cash and liquid assets as of December 2015, complemented by the EUR450 million issuance of the Series F convertible bond in 2016, the Company also has a considerable cash base for the purpose of further growth in 2016. Christian Windfuhr, CEO of Grand City Properties, comments: "2015 is a record year for Grand City in which we amplified the scale of our operations and successfully met all the professional challenges set to us. Recognizing the fruit of our hard work materialize in the results is giving us energy and determination to continue in this path of running an efficient, innovative and profitable organization, benefiting our shareholders by and through providing excellent housing to our tenants". The full FY 2015 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. 18.03.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de ---------------------------------------------------------------------------