Grand City Properties Sa · XETR:GYC
Grand City Properties Sa — H1 2025 Earnings Presentation
40 slides from Grand City Properties Sa's earnings presentation, August 2025
Slide 1: Financial Results Presentation H1 2025
FINANCIAL RESULTS PRESENTATION H1 2025 August 2025 Berlin
Slide 2: Highlights
HIGHLIGHTS GCP
Slide 3: H1 2025 Key Results Summary
H1 2025 KEY RESULTS SUMMARY KEY FINANCIAL RESULTS FINANCIAL PROFILE PORTFOLIO HIGHLIGHTS P&L H1 2025 Change H1 2024 Jun 2025 Dec 2024 Jun 2025 Dec 2024 Net Rental €213m 1% €212m LTV 32% 33% Investment Income €8,827m €8,629m Property Adjusted EPRA LTV 44% 46% €169m 2% €166m EBITDA Units 60,926 60,820
Slide 4: Positioned Well for Future Opportunities
POSITIONED WELL FOR FUTURE OPPORTUNITIES Strengthening balance sheet, Capital recycling, sticking to acquisition criteria Further external and internal growth proactively addressing challenges Development annualised net rent over past years Low LTV gives headroom for growth (in € millions) 37% 33% 3
Slide 5: Capturing Growth
CAPTURING GROWTH CREATING VALUE WHILE MAINTAINING A STRONG BALANCE SHEET OPPORTUNITY ACQUISITION CRITERIA CASH & LEVERAGE LIGHT ❖ Attractive opportunities are coming to market ❖ GCP targets residential opportunities in key due to mismanagement, financial distress, and metropolitan areas with strong
Slide 6: Operational & Financial Results
OPERATIONAL & FINANCIAL RESULTS 6
Slide 7: German Housing Trend: Supply Remains Constraint
GERMAN HOUSING TREND: SUPPLY REMAINS CONSTRAINT The gap between housing needs and completions is widening, with Germany falling well short of the annual need, supporting further rental growth. Berlin shows a similar pattern at the local level, missing its annual target of 20k units. Germany: Permits
Slide 8: Strong Operational Dynamics
STRONG OPERATIONAL DYNAMICS CONTINUOUSLY DELIVERING OPERATIONAL PERFORMANCE SUPPORTED BY FAVOURABLE MARKET FUNDAMENTALS +4.3% In-place rent CAGR (in €/sqm) ANNUALISED NET RENTAL INCOME vs. 9.4 MARKET POTENTIAL (ERV) 9.2 (in € millions) 8.6 8.1 8.2 +22% +3.8% +3.7% 422 upside 516 L-F-L L-F-L Total ne
Slide 9: Valuations Supported by Strong Operations
VALUATIONS SUPPORTED BY STRONG OPERATIONS POSITIVE REVALUATIONS DRIVEN BY OPERATIONAL GROWTH GCP’S VALUATIONS REMAIN CONSERVATIVE ❖ In H1 2025, GCP’s full portfolio was revalued by external valuators, which GCP’s valuation approach has resulted in lower valuation volatility, showing resulted in a va
Slide 10: Portfolio Overview
PORTFOLIO OVERVIEW ❖ In H1 2025, GCP completed €131 million of asset disposals around book value. These properties are primarily located in Bremen, Frankfurt, non- core locations, as well as condominiums in London, at an average in-place rent multiple of 18x. ❖ GCP completed the acquisition of ca. €
Slide 11: P&L Results
P&L RESULTS NET RENTAL INCOME ADJUSTED EBITDA Selected consolidated statement of profit or loss H1 2025 H1 2024 (in € millions) (in € millions) in € ‘000 unless otherwise indicated 79.4% margin Net rental income 212,832 211,536 213 78.5% 212 +1% +2% 169 Revenue 298,773 298,156 166 Property revaluati
Slide 12: FFO I + II
FFO I + II FFO I FFO I per share (in € millions) (in €) +1% in € ‘000 unless otherwise indicated H1 2025 H1 2024 +0% 94 95 Adjusted EBITDA 168,916 166,113 0.54 0.54 Finance expenses (31,234) (27,882) Current tax expenses (19,746) (20,835) Contribution to minorities (2,618) (2,292) H1 2024 H1 2025 H1
Slide 13: Maintenance & Capex
MAINTENANCE & CAPEX REPOSITIONING CAPEX REPOSITIONING CAPEX & MAINTENANCE REPOSITIONING CAPEX (in € per average sqm) 13.3 Berlin (before) 12.7 ❖ Focus remains on improving asset quality, value creation and increasing rental income ❖ Other value-add measures include: Repositioning • Upgrading apartme
Slide 14: EPRA NAV Metrics
EPRA NAV METRICS EPRA NAV PER SHARE METRICS (in €) EPRA NAV METRICS (in € millions) EPRA NRV PS EPRA NTA PS EPRA NDV PS EPRA NRV EPRA NTA EPRA NDV +3% +4% +3% +3% +4% +3% 28.7 4,902 5,065 27.8 25.2 4,280 4,444 24.3 3,887 22.0 3,782 21.4 Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun 2024 2025 2024
Slide 15: Strong Financial Profile
STRONG FINANCIAL PROFILE UNENCUMBERED CORPORATE LOW LEVERAGE INTEREST COVER RATIO* INVESTMENT PROPERTIES CREDIT RATING FINANCING SOURCES MIX 45% Board of Directors’ Limit EPRA LTV 70% Investment grade 9% 10% Bank Debt of value credit rating by S&P (including perpetual H1 2025 notes as 100% debt) 36%
Slide 16: Guidance
GUIDANCE GCP
Slide 17: Guidance
GUIDANCE FY 2025 FFO I €185M – €195M FFO I per share €1.05 - €1.11 GUIDANCE CONFIRMED Dividend per share* €0.78 - €0.83 Total net rent like-for-like growth ~3.5% LTV <45% * The dividend will be subject to market condition and AGM approval Key drivers: ❖ Adj. EBITDA increase as a result of the positi
Slide 18: Appendix
APPENDIX GCP
Slide 19: Financial Policy
FINANCIAL POLICY GCP FINANCIAL POLICY GCP COVENANT H1 2025 COVENANT LIMIT RESULTS LTV limit at 45% Total Net Debt / Total Net Assets <=60% 29% Debt to debt plus equity ratio at 45% (or lower) on a sustainable basis N/A Secured Net Debt / <=45% (liquidity is larger Maintaining conservative financial
Slide 20: Focus on Central Locations in Berlin and NRW
FOCUS ON CENTRAL LOCATIONS IN BERLIN AND NRW* BEST IN CLASS BERLIN PORTFOLIO WELL DISTRIBUTED NRW PORTFOLIO 23% of GCP’s Portfolio Value 70% of the Berlin portfolio is 21%* of GCP’s located in top tier Portfolio neighborhoods: Charlottenburg, Wilmersdorf, Mitte, Kreuzberg, Friedrichshain, Lichtenber
Slide 21: High Quality London Portfolio
HIGH QUALITY LONDON PORTFOLIO* 20% of GCP’s WELL CONNECTED ❖ The total London portfolio, including pre-marketed units, consists of approx. Portfolio LONDON PORTFOLIO 3,700 units ❖ Approx. 80% of the portfolio is situated within a short walking distance to an underground/overground station ❖ Through
Slide 22: Quality East and North Portfolio
QUALITY EAST AND NORTH PORTFOLIO QUALITY EAST PORTFOLIO QUALITY NORTH PORTFOLIO DRESDEN/LEIPZIG/HALLE HAMBURG / BREMEN 14%* of GCP’s Portfolio DIVERSIFICATION INTO GERMANY’S DYNAMIC WELL POSITIONED IN 4%* of GCP’s EASTERN CITIES WITH GERMANY’S LARGEST Portfolio Leipzig & Dresden are the largest STRO
Slide 23: Market Fundamentals Remain Highly Supportive
MARKET FUNDAMENTALS REMAIN HIGHLY SUPPORTIVE Consistently widening supply/demand gap and German market fundamentals provide significant tailwind to continuous operational achievements resulting in higher rents, lower vacancies, and supporting valuations Germany Strong city-specific fundamentals ❖ Ti
Slide 24: London Rental Market: Significant Supply–Demand Imbalance
LONDON RENTAL MARKET SIGNIFICANT SUPPLY – DEMAND IMBALANCE Increasing Demand Resulting in Higher Rent Cost and Delays Remain Elevated Supply Continues to Lag ❖ No significant rent regulation in London ❖ As per the most recent Construction Output Price ❖ New completions continue to lag the required l
Slide 25: London Rental Market – Renting Favorable Over Owning
LONDON RENTAL MARKET – RENTING FAVORABLE OVER OWNING Ratio of house price to median earnings Difference between the mean England home ownership rate ❖ Doubling of house price to household income ratio average house price and the since early 2000s leading to the decrease in mean mortgage size (implie
Slide 26: ESG and Sustainability
ESG AND SUSTAINABILITY RECOGNITION FOR ESG & SUSTAINABILITY MEASURES ENHANCED REPORTING In order to effectively address the varied interests and priorities of our business partners, investors, tenants, employees and communities 2024 (NON-)FINANCIAL REPORT The non-financial report was GCP presents it
Slide 27: ESG Goals and Contribution
ESG GOALS AND CONTRIBUTION 27
Slide 28: Environment
ENVIRONMENT GOING FORWARD Cologne Halle Create and deliver a portfolio wide CO2 reduction pathway report by energy auditing the environmental performance of buildings such as the use of energy, waste and water. Continue to switch the electricity supply of all common areas to PPA (Power Purchase Agre
Slide 29: Social
SOCIAL TENANTS GCP FOUNDATION EMPLOYEES LOOKING FORWARD GCP values diversity – a fact that is also Entertaining, diverse, convincing: GCP From Dortmund to Halle, from Bremen to underlined with over 40 nations creates attractive digital alternatives to Mainz: Support for charitable projects represent
Slide 30: Governance
GOVERNANCE 1 BEST-IN-CLASS REPORTING LEADING TO HIGH STANDARDS OF TRANSPARENCY - For the EIGHTH CONSECUTIVE year in September 2024, GCP received the EPRA BPR and sBPR gold awards for its financial reporting and sustainability reporting, respectively. 2 EXPERIENCED LEADERSHIP WITH STRONG AND INDEPEND
Slide 31: Analyst Coverage
ANALYST COVERAGE 20.0 17.7 14.5 14.2 13.0 12.9 12.5 12.2 12.0 11.5 11.5 11.0 10.5 10.0 Citigroup Kepler Cheuvreux Berenberg First Berlin DZ Bank Goldman Sachs Kempen & co Bernstein Jefferies Bank of America UBS Deutsche Bank Oddo BHF Barclays 15.05.2025 28.05.2025 14.05.2025 15.05.2025 18.03.2025 19
Slide 32: Share Development & Ownership Structure
SHARE DEVELOPMENT & OWNERSHIP STRUCTURE GCP - SHARE PRICE AND TOTAL RETURN* SINCE FIRST EQUITY PLACEMENT (19.7.2012) 26 24 22 Grand City Properties* 428% 20 SDAX (rebased)* 250% 18 FTSE EPRA/NAREIT 16 109% Germany (rebased)* 14 12 10 Issue price 8 €2.75 6 4 2 07/2012 07/2013 07/2014 07/2015 07/2016
Slide 33: Management – Board of Directors
MANAGEMENT – BOARD OF DIRECTORS MR. CHRISTIAN WINDFUHR – CHAIRMAN, DIRECTOR Mr. Windfuhr is the Chairman of the Board of Grand City Properties. Before joining MS. SIMONE RUNGE-BRANDNER – NON-EXECUTIVE DIRECTOR Grand City Mr. Windfuhr served as CEO of Maritim Hotels, with 40 hotels in Ms. Runge-Brand
Slide 34: Management – CEO & CFO
MANAGEMENT – CEO & CFO REFAEL ZAMIR – CHIEF EXECUTIVE OFFICER IDAN HADAD – CHIEF FINANCIAL OFFICER Mr. Zamir is the Chief Executive Officer of Grand City Properties since 2020 (and Daily Manager Mr. Hadad is the Chief Financial Officer of Grand City (administrateur-délégué)). Mr. Zamir has been work
Slide 35: Management – Senior Management
MANAGEMENT – SENIOR MANAGEMENT MICHAEL BAR-YOSEF – HEAD OF INVESTOR RELATIONS AND CAPITAL SEBASTIAN FALTIN - COO MARKETS Mr. Faltin has more than 20 years professional experience in the real estate Mr. Bar-Yosef is responsible for investor relations, capital markets and credit ratings industry. He c
Slide 36: Advisory Board
ADVISORY BOARD The Advisory Board is an important source of guidance for the Board of Directors when making strategic decisions and has been established by The Board of Directors to provide expert advice and assistance. The Advisory Board has no statutory powers under Luxembourg law or the articles
Slide 37: Credit Rating Matrix: Business Risk Profile
CREDIT RATING MATRIX FINANCIAL RISK PROFILE 1 2 3 4 5 6 MINIMAL MODEST INTERMEDIATE SIGNIFICANT AGGRESSIVE HIGH LEVER-AGED 1 aaa/ EXCELLENT aa a+/a a- bbb bbb-/bb+ BUSINESS RISK PROFILE aa+ (Vonovia, BBB+)2 2 (DW)3 (GCP, BBB)1 (Aroundtown) GCP has a business risk profile STRONG aa/ aa- a+/a A- BBB+
Slide 38: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES For enhanced transparency and more industry specific comparative basis, the Company provides market and industry standard performance indicators. GCP provides a set of measures that can be utilised to assess the Company’s operational earnings, net asset value of the
Slide 39: Disclaimer
DISCLAIMER IMPORTANT: This presentation has been provided for information purposes only and is being circulated on a confidential basis. This presentation shall be used only in accordance with applicable law, e.g. regarding national and international insider dealing rules, and must not be distribute
Slide 40: Thank You
THANK YOU Investor Relations Team E-mail: gcp-ir@grandcity.lu www.grandcityproperties.com
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