Grand City Properties Sa · XETR:GYC
Grand City Properties Sa — FY2021 Earnings Presentation
33 slides from Grand City Properties Sa's earnings presentation, March 2022
Slide 1: Financial Results Presentation FY 2021
Berlin FINANCIAL RESULTS PRESENTATION FY 2021 MARCH 2022
Slide 2: Financial Highlights, Portfolio Highlights
FINANCIAL HIGHLIGHTS PORTFOLIO HIGHLIGHTS STRONG OPERATIONAL PERFORMANCE, SUPPORTED BY ACCRETIVE CAPITAL RECYCLING +15% ps Total Assets EPRA NTA growth +2.8% €5 billion, +2.2% +0.6% €11.6 billion per share €30.4 L-F-L L-F-L L-F-L +6% FFO I +18% ps growth In-place rent growth Total net rent growth Oc
Slide 3: Operational Profitability
OPERATIONAL PROFITABILITY Selected consolidated statement of profit or loss 2021 2020 NET RENTAL INCOME ADJUSTED EBITDA (in € millions) (in € millions) in € ‘000 unless otherwise indicated Revenue 524,629 535,424 372.5 374.6 Net rental income 374,550 372,462 299.8 298.6 Property revaluations and cap
Slide 4: FFO I + II
FFO I + II in € ‘000 unless otherwise indicated 2021 2020 Adjusted EBITDA 298,589 299,780 Finance expenses (46,450) (52,760) Current tax expenses (39,227) (31,387) Contribution from / (to) joint ventures and minorities, Net (1,544) (579) Adjustment for perpetual notes attribution (25,042) (32,848) C
Slide 5: EPRA NAV Metrics
EPRA NAV METRICS EPRA NAV PER SHARE METRICS (in €) EPRA NRV PS EPRA NTA PS EPRA NDV PS +17% +18% +20% EPRA NRV → assumes that entities never sell assets and aims to represent the value required incl div incl div incl div to rebuild the entity 31.7 30.4 +14% +15% - Deferred tax liabilities fully adde
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW INVESTMENT PROPERTY ANNUALIZED RENTAL INCOME vs. (in € millions) MARKET POTENTIAL 2021 2020 (INCLUDING VACANCY REDUCTION) In total, acquisitions of investment properties (in € millions) amounted to over €700 million, including over Rent Multiple 23.6x 22.2x +16% 6,700 units at an
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% 20% of GCP’s Portfolio 4th of GCP’s Portfolio Largest Value city in 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 5%* 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) - Focus remains on improving the asset quality - All capex is directed towards value creation 21.5 19.7 - Other value-add measures include: - Upgrading apartments for new rentals
Slide 12: Modernisation and Environmental Investment
MODERNISATION AND ENVIRONMENTAL INVESTMENT Modernisation strategy Biodiversity - Continuous analysis of portfolio to identify opportunities for targeted investment - Additional measures to support biodiversity – improves tenant satisfaction - Modernisation forms an additional rent driver. GCP starte
Slide 13: 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 FY 2021 results LTV limit at 45% Limitation on Debt ✓ 32% Total Debt / Assets <=60%(1) Debt to
Slide 14: Capital Structure – Strong Debt Profile
CAPITAL STRUCTURE – STRONG DEBT PROFILE FINANCING SOURCES MIX HEDGING RATIO LOW LTV 4% 4% 3% 3% Bank Debt 36% 36% 45% Board of Directors’ Limit Straight Bond Convertible Fixed & Swapped 36% 3% 4% 33% 31% Variable Equity Capped 57% 57% Perpetuals 93% Dec 2020 Dec 2021 Dec 2019 Dec 2020 Dec 2021 DEBT
Slide 15: Debt Coverage & Credit Rating
DEBT COVERAGE & CREDIT RATING INTEREST COVER RATIO UNENCUMBERED INVESTMENT PROPERTIES CORPORATE CREDIT RATING LIQUIDITY POSITION Investment grade credit rating €8.4 with a stable outlook Approx. ICR* S&P billion €1.1 6.4x 88% of value BBB+ Long term strategic billion goal to reach A- rating *Adjuste
Slide 16: Non-Financial Highlights
NON-FINANCIAL HIGHLIGHTS The hard work of our service team was awarded in 2021, when our TÜV certified Service Center, which is available 24/7, was recognized as “Fairest Customer Hotline” by Focus Money magazine in October of 2021. GCP provided funds and its employees supported in clean-up works fo
Slide 17: Guidance
GUIDANCE 2021 FY 2022 Actual Guidance FFO I 186M 188M – 197M 2022 FFO I per share (in €) 1.11 1.13 - 1.18 Dividend per share (in €) 0.83 0.85 – 0.89 Total net rent like-for-like growth 2.8% >2% LTV 36% <45% FFO growth drivers: DRESDEN Operational performance through increased LFL rental growth and 2
Slide 18: Appendix
APPENDIX GCP
Slide 19: German Market
GERMAN MARKET Yield Spread Transaction Volume* CPI compared to Net Rent Index 160 345bps 5% 150 295bps 140 4% 130 245bps 3% 120 195bps 110 145bps 2% 1.94% 100 Current Spread 95bps 90 1% 1.96% Avg. Spread 45bps (2005 – Feb 2022) 80 0% 70 -5bps 60 2019 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
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
ESG GOALS ALS TARGETS andard of living at our properties through safe, attractive buildings, active community building and engaged Retain residents by acti ng tenant loyalty, by creating supportive, affordable communities where people enjoy living 4 staying ntinually enhance tenant satisfaction leve
Slide 22: Environment
ENVIRONMENT GOING FORWARD Monitor the environmental performance of buildings such as the use of energy, waste and water to identify the most inefficient ones and work on plan to improve energy-efficiency Continue analysis for potential implementation of renewable energy systems on-site Continue to s
Slide 23: Social
SOCIAL EMPLOYEES TENANTS GCP FOUNDATION The Company values diversity, a fact that is also illustrated with 39 nations represented among all GCP Alternative activities for our tenants during lock-downs, like virtual Santa More than 40 charitable projects through our Foundation across employees LOOKIN
Slide 24: Service Quality Goals
SERVICE QUALITY GOALS Reachability 24/7 Uninterrupted availability to always provide the highest quality of service. Working conditions Optimization of working conditions to remain flexible and attractive as an employer. Tenant satisfaction Increase tenant satisfaction, thereby promoting tenant loya
Slide 25: 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 26: 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 27: Analyst Coverage
ANALYST COVERAGE 34.7 27.5 27.5 27.5 26 26 26 25.5 25.4 23.8 23 21.5 21 21 19 Citigroup First Berlin DZ Bank Kepler Cheuvreux UBS Berenberg J.P. Morgan HSBC Goldman Sachs Societe Generale Bank of America Barclays Deutsche Bank Oddo BHF Kempen & co 16.08.2021 17.08.2021 18.08.2021 15.12.2021 12.10.20
Slide 28: Share Development & Ownership Structure
SHARE DEVELOPMENT & OWNERSHIP STRUCTURE GCP - SHARE PRICE AND TOTAL RETURN SINCE FIRST EQUITY PLACEMENT (19.7.2012) 26 Grand City Properties 788% 24 22 20 18 16 14 12 MDAX (rebased) 10 Issue price 185% 8 €2.75 6 FTSE EPRA/NAREIT Germany 216% 4 2 (rebased) Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Ju
Slide 29: 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 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 (Aroundtown) STRON
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