Grand City Properties Sa · XETR:GYC
Grand City Properties Sa — Q1 2025 Earnings Presentation
36 slides from Grand City Properties Sa's earnings presentation, May 2025
Slide 1: Financial Results Presentation Q1 2025
FINANCIAL RESULTS PRESENTATION Q1 2025 Hamburg May 2025
Slide 2: Highlights
HIGHLIGHTS GCP
Slide 3: Q1 2025 Key Results Summary
Q1 2025 KEY RESULTS SUMMARY KEY FINANCIAL RESULTS FINANCIAL PROFILE PORTFOLIO HIGHLIGHTS P&L Q1 2025 change Q1 2024 Mar 2025 Dec 2024 Mar 2025 Dec 2024 Net Rental Investment €106.2m 1% €105.3m LTV 32% 33% €8,709m €8,629m Income Property Adjusted EPRA LTV 45% 46% €84.6m 3% €82.0m Units 60,841 60,820
Slide 4: Operational & Financial Results
OPERATIONAL & FINANCIAL RESULTS 4
Slide 5: 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. MARKET POTENTIAL (ERV) 9.2 9.3 (in € millions) 8.6 8.1 8.2 +23% +3.8% +3.8% 416 upside 510 L-F-L L-F-L Total ne
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW ❖ In Q1 2025 the Company revalued around 20% of the portfolio, resulting in 0.6% like-for-like value uplift, driven by operational growth. ❖ In Q1 2025, GCP completed ca. €120 million of asset disposals around book value (slight premium of 0.2%). These properties are primarily loc
Slide 7: P&L Results
P&L RESULTS NET RENTAL INCOME ADJUSTED EBITDA Selected consolidated statement of profit or loss Q1 2025 Q1 2024 (in € millions) (in € millions) in € ‘000 unless otherwise indicated 80% margin Net rental income 106,173 105,301 106 78% 105 85 +1% +3% Revenue 151,377 149,052 82 Property revaluations an
Slide 8: FFO I + II
FFO I + II FFO I FFO I per share (in € millions) (in €) +6% in € ‘000 unless otherwise indicated Q1 2025 Q1 2024 +4% 0.26 0.27 Adjusted EBITDA 84,565 81,984 48 45 Finance expenses (15,376) (14,121) Current tax expenses (9,479) (10,282) Contribution to minorities (1,328) (1,408) Q1 2024 Q1 2025 Q1 20
Slide 9: Maintenance & Capex
MAINTENANCE & CAPEX REPOSITIONING CAPEX REPOSITIONING CAPEX & MAINTENANCE MODERNISATION: (in € per average sqm) FAÇADE REFIT 6.4 ❖ Focus remains on improving asset quality, value 6.0 Duisburg (before) creation and increasing rental income ❖ Other value-add measures include: Repositioning • Upgrading
Slide 10: 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 +1% +1% +2% +1% +1% +2% 27.8 28.1 4,902 4,954 24.3 24.6 4,280 4,343 3,782 3,840 21.4 21.8 Dec Mar Dec Mar Dec Mar Dec Mar Dec Mar Dec Mar 2024 2025 2024
Slide 11: 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 71% Investment grade 9% 10% Bank Debt of value credit rating by S&P (including perpetual Q1 2025 notes as 100% debt) 36%
Slide 12: Guidance
GUIDANCE GCP
Slide 13: 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 14: Appendix
APPENDIX GCP
Slide 15: Financial Policy
FINANCIAL POLICY GCP FINANCIAL POLICY GCP COVENANT Q1 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 16: 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 17: 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 3,600 units ❖ Approx. 80% of the portfolio is situated within a short walking distance to an underground/overground station ❖ Through
Slide 18: 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 19: 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 20: 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 21: 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 22: ESG and Sustainability
ESG AND SUSTAINABILITY ENHANCED REPORTING In order to effectively address the varied interests and priorities of our business partners, investors, tenants, employees and communities The non-financial report was 2024 (NON-)FINANCIAL reviewed with limited assurance by KPMG. It REPORT provides a descri
Slide 23: ESG Goals and Contribution
ESG GOALS AND CONTRIBUTION 23
Slide 24: 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 25: 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 26: 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 27: Analyst Coverage
ANALYST COVERAGE 19.7 17.0 14.5 14.2 13.5 13.2 13.0 12.5 12.0 11.5 11.5 11.0 10.5 10.0 10.0 Citigroup Kepler Cheuvreux Berenberg First Berlin HSBC Goldman Sachs DZ Bank Kempen & co Jefferies Bank of America UBS Bernstein Oddo BHF Deutsche Bank Barclays 12.03.2025 25.03.2025 07.05.2025 05.05.2025 30.
Slide 28: Share Development & Ownership Structure
SHARE DEVELOPMENT & OWNERSHIP STRUCTURE GCP - SHARE PRICE AND TOTAL RETURN* SINCE FIRST EQUITY PLACEMENT (19.7.2012) 26 24 Grand City Properties* 402% 22 SDAX (rebased)* 240% 20 18 FTSE EPRA/NAREIT 102% 16 Germany (rebased)* 14 12 10 Issue price 8 €2.75 6 4 2 2012 2013 2013 2014 2014 2015 2015 2016
Slide 29: 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 30: Management – CEO & CFO
MANAGEMENT – CEO & CFO REFAEL ZAMIR – CHIEF EXECUTIVE IDAN HADAD – CHIEF FINANCIAL OFFICER OFFICER Mr. Zamir is the Chief Executive Officer of Grand City Mr. Hadad is the Chief Financial Officer of Grand City Properties since 2020 (and Daily Manager Properties as of January 2023 (and also Daily Mana
Slide 31: 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 32: 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 33: 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 34: 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 35: 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 36: Thank You
THANK YOU Investor Relations Team E-mail: gcp-ir@grandcity.lu www.grandcityproperties.com
Grand City Properties — Q1 2025 Earnings Presentation on 6ix