Grand City Properties Sa · XETR:GYC
Grand City Properties Sa — Q1 2022 Earnings Presentation
29 slides from Grand City Properties Sa's earnings presentation, May 2022
Slide 1: Financial Results Presentation Q1 2022
Berlin FINANCIAL RESULTS PRESENTATION Q1 2022 MAY 2022
Slide 2: Financial Highlights, Portfolio Highlights
FINANCIAL HIGHLIGHTS PORTFOLIO HIGHLIGHTS SOLID LIKE-FOR-LIKE RENTAL GROWTH Net rental income Total Assets €97 million €11 billion +2.8% +2.3% +0.5% +7% -5% L-F-L L-F-L L-F-L FFO I Total net rent growth In-place rent growth Occupancy growth €48 million March 2022 March 2022 March 2022 +3% ROBUST POR
Slide 3: Operational Profitability
OPERATIONAL PROFITABILITY Selected consolidated statement of profit or loss Q1 2022 Q1 2021 in € ‘000 unless otherwise indicated Revenue 133,498 128,323 NET RENTAL INCOME ADJUSTED EBITDA Net rental income (in € millions) (in € millions) 97,064 90,578 97.1 Property revaluations and capital gains 45,2
Slide 4: FFO I + II
FFO I + II in € ‘000 unless otherwise indicated Q1 2022 Q1 2021 Adjusted EBITDA 76,417 72,632 Finance expenses (11,418) (11,724) Current tax expenses (9,543) (7,869) Contribution from / (to) joint ventures and minorities, Net (928) 159 FFO I growth has been driven by the impact of net acquisitions i
Slide 5: EPRA NAV Metrics
EPRA NAV METRICS EPRA NAV PER SHARE METRICS (in €) EPRA NRV → assumes that entities never sell assets and aims to represent the value required EPRA NRV PS EPRA NTA PS EPRA NDV PS to rebuild the entity +1% +1% 32.1 - Deferred tax liabilities fully added back 31.7 30.8 30.4 - RETT fully added back +7%
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW INVESTMENT PROPERTY ANNUALIZED RENTAL INCOME vs. Berlin (in € millions) MARKET POTENTIAL (INCLUDING VACANCY REDUCTION) (in € millions) +17% +21% 9,339 9,389 465 8,022 384 Mar 2022 Annualized market Dec Dec Mar annualised potential on current 2020 2021 2022 market rent Area Annuali
Slide 7: Diversified Portfolio with High Growth Potential
DIVERSIFIED PORTFOLIO WITH HIGH GROWTH POTENTIAL 7
Slide 8: 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 24% 4th 21% of GCP’s Largest of GCP’s Portfolio city in Portfolio Value Germany 70% of the Berlin portfolio is located in top tier neighborhoods: Charlottenburg, Wilmersdorf, Mitte, Kreuzberg,
Slide 9: High Quality London Portfolio
HIGH QUALITY LONDON PORTFOLIO* The total London portfolio, including pre-marketed 19% of GCP’s units consists of over 4,000 units Portfolio Over 80% of the portfolio is situated within a short walking Through strong distance to an letting performance underground/overground from double digit station
Slide 10: Quality East and North Portfolio
QUALITY EAST AND NORTH PORTFOLIO QUALITY EAST PORTFOLIO QUALITY NORTH PORTFOLIO DRESDEN/LEIPZIG/HALLE HAMBURG / BREMEN 4%* 13%* Second of GCP’s of GCP’s largest city in Portfolio Portfolio Germany DIVERSIFICATION INTO GERMANY’S DYNAMIC WELL POSITIONED IN EASTERN CITIES WITH GERMANY’S LARGEST STRONG
Slide 11: Maintenance & Repositioning Capex
MAINTENANCE & REPOSITIONING CAPEX REPOSITIONING CAPEX REPOSITIONING CAPEX & MAINTENANCE PLAYGROUND (in € per average sqm) HALLE - Focus remains on improving the asset quality 5.2 - All capex is directed towards value creation 4.6 - Other value-add measures include: - Upgrading apartments for new ren
Slide 12: Financial Policy
FINANCIAL POLICY GCP FINANCIAL POLICY GCP REMAINS COMFORTABLY ABOVE ITS BOND COVENANTS Strive to achieve A- global rating in the long term Overview of Covenant Package Covenant Type GCP Covenant limit and Q1 2022 results LTV limit at 45% Limitation on Debt ✓ 31% Total Debt / Assets <=60%(1) Debt to
Slide 13: Capital Structure – Strong Debt Profile
CAPITAL STRUCTURE – STRONG DEBT PROFILE FINANCING SOURCES MIX HEDGING RATIO LOW LTV 4% 3% 2% Bank Debt 45% Board of Directors’ Limit 36% 38% Straight Bond 36% 35% 4% Convertible Fixed & Swapped Variable 57% 60% Equity 96% Perpetuals Dec 2021 Mar 2022 Dec 2021 Mar 2022 DEBT MATURITY SCHEDULE 1,200 Av
Slide 14: Debt Coverage & Credit Rating
DEBT COVERAGE & CREDIT RATING INTEREST COVER RATIO UNENCUMBERED INVESTMENT PROPERTIES CORPORATE CREDIT RATING LIQUIDITY POSITION Investment grade credit rating €8.7 with a stable outlook Approx. ICR* S&P billion €550 6.7x 92% of value BBB+ Long term strategic million goal to reach A- rating *Adjuste
Slide 15: Guidance
GUIDANCE FY 2022 DRESDEN FFO I 188M – 197M FFO I per share (in €) 1.13 - 1.18 GUIDANCE CONFIRMED Dividend per share (in €) 0.85 – 0.89 Total net rent like-for-like growth >2% LTV <45% Duisburg FFO growth drivers: Operational performance through increased LFL rental growth and full year impact of 202
Slide 16: Appendix
APPENDIX GCP
Slide 17: 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 NON-FINANCIAL REPORT SUSTAINABILITY INSIGHTS based on 12 topics identified as material in GCP’s materiality externally
Slide 18: ESG Goals and Contribution
ESG GOALS AND CONTRIBUTION 18
Slide 19: Environment
ENVIRONMENT GOING FORWARD 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 Agreement) of cert
Slide 20: Social
SOCIAL TENANTS GCP FOUNDATION EMPLOYEES GCP values diversity – a fact that is also LOOKING FORWARD underlined with almost 40 nations Entertaining, diverse, convincing: GCP From Dortmund to Halle, from Bremen to represented among all GCP employees creates attractive digital alternatives to Mainz: Sup
Slide 21: Governance
GOVERNANCE 1 BEST-IN-CLASS REPORTING LEADING TO HIGH STANDARDS OF TRANSPARENCY - For the FIFTH CONSECUTIVE year in September 2021, GCP received the EPRA BPR and sBPR gold awards for its financial reporting and sustainability reporting, respectively. - GCP also published its remuneration report for 2
Slide 22: Strong Capital Market Access
STRONG CAPITAL MARKET ACCESS €1,308 mn €1,300 mn €1,201 mn Proven track record Approx. €9 billion of capital raised since 2012, with a proven track record €1,000 mn €908 mn in 4 different instruments: Equity, Perpetual notes, Convertible bonds and Straight bonds across a broad spectrum of investors
Slide 23: Analyst Coverage
ANALYST COVERAGE 34.7 28 27.5 26 26 25.8 25.5 23 23 21 21 21 20.6 20.5 19 Citigroup First Berlin Kepler Cheuvreux UBS Berenberg DZ Bank HSBC J.P. Morgan Bank of America Goldman Sachs Deutsche Bank Oddo BHF Barclays Societe Generale Kempen & co 16.08.2021 18.03.2022 16.03.2022 16.03.2022 16.03.2022 1
Slide 24: 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 636% 22 20 18 16 14 12 MDAX (rebased) 172% 10 8 6 4 FTSE EPRA/NAREIT Germany (rebased) 147% 2 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
Slide 25: Management
MANAGEMENT Refael Zamir Mr. Zamir is the Chief Executive Officer and CFO of Grand City Properties. Mr. Zamir has worked for the Group starting from 2013 and has over 15 years of international experience in management, Chief Executive Officer / capital markets, finance, accounting, and corporate matt
Slide 26: Management
MANAGEMENT Senior Management (continued) Michael Bar-Yosef Mr. Bar-Yosef is responsible for financial modeling and cooperates with equity researchers to analyze their financial models and has more than 10 years of experience. Before joining GCP he served as Senior Financial Analyst a financial and c
Slide 27: 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/ GCP will continue strengthening its position within the business profile EXCELLENT aa a+/a a- bbb bbb-/bb+ BUSINESS RISK PROFILE aa+ (Vonovia- BBB+)1 2 (Aroundtown) STRON
Slide 28: 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 29: Thank You
THANK YOU Investor Relations Team E-mail: gcp-ir@grandcity.lu www.grandcityproperties.com
Grand City Properties — Q1 2022 Earnings Presentation on 6ix