Grand City Properties Sa · XETR:GYC
Grand City Properties Sa — FY2022 Earnings Presentation
33 slides from Grand City Properties Sa's earnings presentation, March 2023
Slide 1: Financial Results Presentation FY 2022
Berlin FINANCIAL RESULTS PRESENTATION FY 2022 March 2023
Slide 2: Financial Highlights and Portfolio Highlights
FINANCIAL HIGHLIGHTS PORTFOLIO HIGHLIGHTS SOLID LIKE-FOR-LIKE RENTAL GROWTH FFO I €192million +3% Investment Net rental income Property €396million €9.5 billion +6% +2% FFO I per share €1.14 ROBUST PORTFOLIO FUNDAMENTALS +3% In-place rent Vacancy (in €/sqm) +5% EPRA NTA -2.9% Adjusted EBITDA CAGR 7.
Slide 3: Highlights
HIGHLIGHTS WELL POSITIONED IN CURRENT ENVIRONMENT WITH HIGH HEADROOM TO BOND COVENANTS STRONG LIQUIDITY POSITION PROACTIVE DEBT MANAGEMENT Cash and liquid assets position €429m covers debt maturities until Q2 €615m Redemption and repayment of CASH AND LIQUID ASSETS near-term maturing debt, 2025 and
Slide 4: Operational Profitability
OPERATIONAL PROFITABILITY Selected consolidated statement of profit or loss 2022 2021 in € ‘000 unless otherwise indicated Revenue 582,505 524,629 Net rental income 396,041 374,550 NET RENTAL INCOME ADJUSTED EBITDA (in € millions) (in € millions) 117,761 694,844 396 308 Property revaluations and cap
Slide 5: FFO I + II
FFO I + II FFO I FFO I per share (in € millions) (in €) in € ‘000 unless otherwise indicated 2022 2021 186 192 1.11 1.14 Adjusted EBITDA 308,100 298,589 +3% +3% Finance expenses (46,914) (46,450) Current tax expenses (39,120) (39,227) Contribution from / (to) joint ventures and minorities, net (5,09
Slide 6: EPRA NAV Metrics
EPRA NAV METRICS EPRA NAV PER SHARE METRICS (in €) EPRA NRV PS EPRA NTA PS EPRA NDV PS EPRA NRV → assumes that entities never sell assets and aims to represent the value required -3% -3% to rebuild the entity 31.7 30.8 +15% 30.4 29.6 - Deferred tax liabilities fully added back 26.9 - RETT fully adde
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW Berlin INVESTMENT PROPERTY ANNUALISED RENTAL INCOME (in € millions) vs. +2% MARKET POTENTIAL (INCLUDING VACANCY REDUCTION) 9,530 (in € millions) 9,339 +17% 460 393 ❖ In addition to the portfolio below GCP has investment property held for sale amounting to ~€330 million, of which o
Slide 8: Property Valuations
PROPERTY VALUATIONS GCP VALUE incl. land VS REPLACEMENT COST excl. land (Excl. London & in € per sqm) ❖ In 2022, GCP recorded like-for-like valuation gains of 1%, primarily 3,400 from positive revaluation gains in the first half of 2022. GCP values remain materially below replacement costs providing
Slide 9: Diversified Portfolio with High Growth Potential
DIVERSIFIED PORTFOLIO WITH HIGH GROWTH POTENTIAL 9
Slide 10: 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% of GCP’s Portfolio Value 4th Largest city in Germany 70% of the Berlin portfolio is 22% of GCP’s located in top tier Portfolio neighborhoods: Charlottenburg, Wilmersdorf, Mitte, Kreuzberg,
Slide 11: High Quality London Portfolio
HIGH QUALITY LONDON PORTFOLIO* 18% of GCP’s WELL CONNECTED ❖The total London portfolio, including pre-marketed units, consists of Portfolio LONDON PORTFOLIO approx. 3,900 units ❖Over 80% of the portfolio is situated within a short walking distance to an underground/overground station ❖Through strong
Slide 12: Quality East and North Portfolio
QUALITY EAST AND NORTH PORTFOLIO QUALITY EAST PORTFOLIO QUALITY NORTH PORTFOLIO DRESDEN/LEIPZIG/HALLE HAMBURG / BREMEN 13%* 4%* of GCP’s of GCP’s Portfolio Portfolio DIVERSIFICATION INTO GERMANY’S DYNAMIC WELL POSITIONED IN Leipzig & Dresden EASTERN CITIES WITH GERMANY’S LARGEST are the largest citi
Slide 13: Maintenance & Capex
MAINTENANCE & CAPEX REPOSITIONING CAPEX REPOSITIONING CAPEX & MAINTENANCE FAÇADE ENERGY EFFICIENT INSULATION AND (in € per average sqm) REFIT - Focus remains on improving the asset quality - All capex is directed towards value creation Brandenburg (Havel) - Other value-add measures include: 22.5 - U
Slide 14: Financial Policy
FINANCIAL POLICY GCP FINANCIAL POLICY GCP REMAINS COMFORTABLY ABOVE ITS BOND COVENANTS LTV limit at 45% Overview of Covenant Package Covenant Type GCP Covenant limit and 2022 results Debt to debt plus equity ratio at 45% (or lower) on a sustainable basis Limitation on Debt ✓ 33% Total Debt / Assets
Slide 15: Strong Financial Profile
STRONG FINANCIAL PROFILE FINANCING SOURCES MIX LOW LEVERAGE INTEREST HEDGING RATIO* Wuppertal Fixed & Swapped 2% 3% 3% LOW LTV Bank Debt Variable 45% Board of Directors’ Limit 5% Capped 36% 37% Straight Bond 36% 36% NET DEBT/ EPRA LTV** 4% Convertible NET DEBT/ EBITDA (including perpetual EBITDA (in
Slide 16: Debt Maturity Schedule
DEBT MATURITY SCHEDULE 1,400 No upcoming CURRENT AVERAGE DEBT 1,200 COST OF DEBT MATURITY maturities until Q2 2024 1.3% 5.9 years 1,000 800 Cash and liquid EUR Millions assets cover debt maturities up to mid 600 2025 400 200 0 CURRENT COST OF 1.3% 1.3% 1.3% 1.5% 0.2% 2.4% 2.3% 1.7% 1.6% 2.1% MATURIN
Slide 17: Perpetual Notes Refresher
PERPETUAL NOTES REFRESHER January 2023 Perpetual Notes Decision Characteristics Perpetual Notes ❖ At the end of 2022, GCP announced its decision not to call the €200 million perpetual notes series which had its first call date in January 2023. No maturity Full optionality No covenants ❖ GCP made thi
Slide 18: Guidance
GUIDANCE FY 2023 DRESDEN FFO I 170M – 180M FFO I per share (in €) 0.99 - 1.04 Dividend per share (in €)* Total net rent like-for-like growth 0.74 - 0.78 1-2% 2023 LTV <45% * the 2023 dividend will be subject to market condition and AGM approval FFO drivers: Duisburg ❖ Low single digit adj. EBITDA in
Slide 19: Appendix
APPENDIX GCP
Slide 20: 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 21: ESG Goals and Contribution
ESG GOALS AND CONTRIBUTION 21
Slide 22: Environment
ENVIRONMENT GOING FORWARD Essen 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 Agreem
Slide 23: Social
SOCIAL TENANTS GCP FOUNDATION EMPLOYEES GCP values diversity – a fact that is also LOOKING FORWARD Entertaining, diverse, convincing: GCP From Dortmund to Halle, from Bremen to underlined with almost 40 nations creates attractive digital alternatives to Mainz: Support for charitable projects represe
Slide 24: Governance
GOVERNANCE 1 BEST-IN-CLASS REPORTING LEADING TO HIGH STANDARDS OF TRANSPARENCY - For the SIXTH CONSECUTIVE year in September 2022, GCP received the EPRA BPR and sBPR gold awards for its financial reporting and sustainability reporting, respectively. 2 EXPERIENCED LEADERSHIP WITH STRONG AND INDEPENDE
Slide 25: 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 in 4 different instruments: Equity, Perpetual notes, Convertible bonds and €908 mn Straight bonds across a broad spectrum of investors
Slide 26: New EPRA KPI: EPRA LTV
NEW EPRA KPI: EPRA LTV Material Share of Share of Consolidated non- Proportionate Dec 2022 Joint material (as reported) controlling consolidation Ventures associates interests in € ‘000 unless otherwise indicated Total debt 3,935,385 - - - 3,935,385 Equity attributable to perpetual notes 1,227,743 -
Slide 27: Analyst Coverage
ANALYST COVERAGE 26.2 18.9 16.8 16 15 13 12 11.75 11 10.9 10.5 10 9.3 9.1 8 Citigroup DZ Bank First Berlin Kepler Cheuvreux HSBC Berenberg UBS J.P. Morgan Oddo BHF Goldman Sachs Societe Generale Deutsche Bank Kempen & co Barclays Bank of America 02.08.2022 19.09.2022 17.11.2022 28.11.2022 27.01.2023
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 320% 22 20 18 16 14 12 MDAX (rebased) 151% 10 Issue price 8 €2.75 6 4 FTSE EPRA/NAREIT Germany (rebased) 50% 2 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul
Slide 29: Management
MANAGEMENT Refael Zamir Mr. Zamir is the Chief Executive Officer of Grand City Properties since 2020 (and Daily Manager (administrateur-délégué)). Mr. Zamir has been working for the Group since 2013. He served as Chief Chief Executive Officer Financial Officer from 2014 to 2023 and as Chairman of th
Slide 30: 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 31: 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 (GCP) (Aroundtown)
Slide 32: 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 33: Thank You
THANK YOU Investor Relations Team E-mail: gcp-ir@grandcity.lu www.grandcityproperties.com