Grand City Properties Sa · XETR:GYC
Grand City Properties Sa — Q1 2021 Earnings Presentation
31 slides from Grand City Properties Sa's earnings presentation, May 2021
Slide 1: Financial Results Presentation Q1 2021
FINANCIAL RESULTS PRESENTATION Q1 2021 MAY 2021 BERLIN
Slide 2: Robust Operational Performance
ROBUST OPERATIONAL PERFORMANCE 1.8% BERLIN Revenue Net rental income LIKE-FOR-LIKE €128 million €91 million Rental growth -5% -4% FFO I 1 Adjusted EBITDA FFO I per share 1 €47 million €73 million €0.27 (FFO I yield: 4.9%2) -2% +0% -4% -1% -1% EPRA NRV EPRA NTA Total Assets HALLE €4.7 billion, €4.5 b
Slide 3: Operational Profitability
OPERATIONAL PROFITABILITY Selected consolidated statement of profit or loss Q1 2021 Q1 2020 NET RENTAL INCOME ADJUSTED EBITDA (in € millions) (in € millions) in € ‘000 unless otherwise indicated Revenue 128,323 135,331 Net rental income 90,578 94,510 94.5 90.6 Property revaluations and capital gains
Slide 4: FFO I + II
FFO I + II FFO I1 (in € millions) FFO I per share1 (in €) in € ‘000 unless otherwise indicated Q1 2021 Q1 2020 Adjusted EBITDA 72,632 73,978 Finance expenses (11,724) (11,009) Current tax expenses (7,869) (7,392) Contribution from / (to) joint ventures and minorities, Net 159 (355) 47 47 Adjustment
Slide 5: 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 27.8 28.1 to rebuild the entity 26.5 27.0 - Deferred tax liabilities fully added back 20.1 20.8 - RETT fully added back E
Slide 6: Capital Recycling & Share Buyback
CAPITAL RECYCLING & SHARE BUYBACK Disposals were carried at an average multiple of 17x – generating a profit margin of 35% over total costs primarily Acquisitions predominantly non-core and assets held-for-sale in London at an average throughout Germany, including in multiple of 18x Eastern Germany,
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW INVESTMENT PROPERTY (in € millions) +2% Revaluation and Capital Gains of €72 million 8,022 8,145 Gains supported by operational improvements in the portfolio along with solid underlying fundamentals in the portfolio locations, portfolio values further supported by the strength of
Slide 8: Diversified Portfolio with High Growth Potential
DIVERSIFIED PORTFOLIO WITH HIGH GROWTH POTENTIAL 8
Slide 9: 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 25% 17%* of GCP’s of GCP’s Portfolio Portfolio Value 16% of GCP’s Portfolio Rent 70% of the Berlin portfolio is located in top tier neighborhoods: Charlottenburg, Wilmersdorf, Mitte, Kreuzberg,
Slide 10: Quality East and North Portfolio
QUALITY EAST AND NORTH PORTFOLIO QUALITY EAST PORTFOLIO QUALITY NORTH PORTFOLIO DRESDEN/LEIPZIG/HALLE HAMBURG / BREMEN 13%* 5%* of GCP’s of GCP’s Portfolio Portfolio DIVERSIFICATION INTO GERMANY’S DYNAMIC WELL POSITIONED IN EASTERN CITIES WITH GERMANY’S LARGEST STRONG DEMOGRAPHIC NORTHERN CITIES FUN
Slide 11: High Quality London Portfolio
HIGH QUALITY LONDON PORTFOLIO* Approx. 85% of the portfolio is The total London 21% Strong letting performance portfolio, including situated within a short walking of GCP’s has taking double digit pre-marketed units distance to an Portfolio vacancy to occupancy of consists of approx. underground/ove
Slide 12: Portfolio Potential
PORTFOLIO POTENTIAL CURRENT ANNUALIZED RENTAL INCOME vs. MARKET POTENTIAL 1 (INCLUDING VACANCY REDUCTION) Strong upside potential for rent increases to market levels with limited downside risk € 430 +25% 2 € 343 Only 3% of units subject to rent restrictions from subsidizations 3 Average residential
Slide 13: Maintenance & Repositioning Capex
MAINTENANCE & REPOSITIONING CAPEX REPOSITIONING CAPEX REPOSITIONING CAPEX & MAINTENANCE (in € per average sqm) PLAYGROUNDS 5.2 - Focus remains on improving the asset quality 5.0 DRESDEN - All capex is directed towards value creation - Other value-add measures include: - Upgrading apartments for new
Slide 14: Financial Policy
FINANCIAL POLICY GCP FINANCIAL POLICY Strive to achieve A- global rating in the long term LTV limit at 45% Debt to debt plus equity ratio at 45% (or lower) on a sustainable basis Maintaining conservative financial ratios with a strong ICR Unencumbered assets above 50% of total assets Long debt matur
Slide 15: Capital Structure
CAPITAL STRUCTURE FINANCING SOURCES MIX HEDGING RATIO LOW LTV 4% 2% 4% 45% Board of Directors’ Limit Bank Debt 36% 40% Straight Bond fixed & swapped 3% 3% Convertible variable 33% 33% 31% 57% 55% Equity 96% Perpetuals Dec Dec Mar Dec 2020 Mar 2021 2019 2020 2021 DEBT MATURITY SCHEDULE 1,200 Cost of
Slide 16: Debt Coverage & Credit Rating
DEBT COVERAGE & CREDIT RATING INTEREST COVER RATIO UNENCUMBERED INVESTMENT PROPERTIES LIQUIDITY POSITION ICR1) €7.6 Approx. 6.2x billion 92% €1.7 of value billion 1) Adjusted EBITDA/ interest CORPORATE CREDIT RATING A- S&P Moody’s BBB+ Baa1 Baa2 BBB BBB- BB+ BB BB- Feb 2013 Nov 2013 Feb 2014 Nov 201
Slide 17: Guidance
GUIDANCE FY 2021 Guidance FFO I 183-192 GUIDANCE CONFIRMED – GCP WELL ON TRACK TO MEETING FFO I per share (in €) 1.08-1.13 THE GUIDANCE Dividend per share (in €) 0.81-0.85 Total net rent like-for-like growth 2%-3% LTV <45% BERLIN DRESDEN
Slide 18: Appendix
APPENDIX GCP
Slide 19: 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 assessment
Slide 20: ESG Goals
ESG GOALS 20 6 Sa vom *% @ TARGETS reate a high standard of living at our properties through safe, attractive buildings, active community building and engaged ustomer service ents by ° ant loyalty, by creating supp: Retain r and staying ontinuall Be among B Reduce sic ontinue 1 Limit wate Build supp
Slide 21: Environment
ENVIRONMENT GOING FORWARD Identify most inefficient buildings and develop roadmap to improve energy-efficiency Continue analysis for potential implementation of renewable energy GCP’S systems on-site HEADQUARTERS Conclude PPA (Power Purchase Agreement) with renewable power EQUIPPED WITH producer and
Slide 22: Social
SOCIAL TENANTS GCP FOUNDATION EMPLOYEES In 2020, alternative activities for our More than 40 charitable projects tenants like virtual Santa event through our Foundation across Introduced subsidies for lunch and public transport LOOKING AHEAD Germany Our traditional tenant events at our properties wi
Slide 23: Governance
GOVERNANCE 1 BEST-IN-CLASS REPORTING LEADING TO HIGH STANDARDS OF TRANSPARENCY - For the FOURTH CONSECUTIVE year, GCP received the EPRA BPR and sBPR gold awards for its financial reporting and sustainability reporting, respectively. - GCP also published its remuneration report for 2019, further impr
Slide 24: Strong Capital Market Access
STRONG CAPITAL MARKET ACCESS Proven track record Approx. €9 billion of capital raised since 2012, with a proven track record in 4 different instruments: Equity, Perpetual notes, Convertible bonds and € 1,308 mn € 1,300 mn Straight bonds across a broad spectrum of investors & markets € 1,201 mn GCP’s
Slide 25: Analyst Coverage
ANALYST COVERAGE 28.0 27.5 27.0 26.2 26.0 26.0 26.0 25.8 25.5 25.5 25.2 25.0 24.5 23.5 23.0 23.0 22.0 21.0 21.0 19.5 Bank of First Berlin Kepler Citigroup Berenberg Societe J.P. Morgan Goldman Sachs UBS DZ Bank Credit Suisse Commerzbank HSBC Barclays Deutsche Bank Hauck & Jefferies Oddo BHF Nord LB
Slide 26: Share Development & Ownership Structure
SHARE DEVELOPMENT & OWNERSHIP STRUCTURE GCP - SHARE PRICE AND TOTAL RETURN SINCE FIRST EQUITY PLACEMENT (19.7.2012) Share price/conversion price throughout the Company’s issuances *Refers to the conversion price of the convertible bonds issuance **Effective conversion price 10.8 (9.72 conversion at
Slide 27: 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 15 years of international experience in management, capital Chief Executive Officer / markets, finance and accounting. Before Mr. Zamir bec
Slide 28: 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. Before joining GCP he served as a financial and corporate analyst for a financial advisory and was an economist. Mr
Slide 29: 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+ aa+ BUSINESS RISK PROFILE (Vonovia- BBB+)* 2 (DW) (Aroundtown)
Slide 30: 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 31: Thank You
THANK YOU Katrin Petersen Head of Communication E-mail: katrin.petersen@grandcity.lu www.grandcityproperties.com
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