Grand City Properties Sa · XETR:GYC
Grand City Properties Sa — FY2024 Earnings Presentation
45 slides from Grand City Properties Sa's earnings presentation, March 2025
Slide 1: Financial Results Presentation FY 2024
FINANCIAL RESULTS PRESENTATION FY 2024 March 2025 Berlin
Slide 2: Highlights
HIGHLIGHTS GCP
Slide 3: Operational Growth Offsetting Disposals
OPERATIONAL GROWTH OFFSETTING DISPOSALS KEY FINANCIAL RESULTS P&L 2024 Change 2023 Balance Dec 2024 Change Dec 2023 Sheet Net Rental Cash and €423m ↑ 3% €411m Income liquid €1,515 ↑ 23% €1,230m Adjusted assets €335m ↑ 5% €320m EBITDA Investment €8,629m - €8,629m Property FFO I €188m ↑ 2% €184m 2024
Slide 4: Valuation Trend Stabilised and Reversed Supported by Operational Growth
VALUATION TREND STABILISED AND REVERSED SUPPORTED BY OPERATIONAL GROWTH PORTFOLIO* Dec 2024 Dec 2023 Dec 2024 Dec 2023 DISPOSALS 2024 2023 Annualised net Investment €413m €406m €8,629m €8,629m Signed ~€350m(1) >€190m rent Property L-F-L rental L-F-L revaluation Completed ~€270m >€300m 3.8% 3.3% +0.5
Slide 5: 1. Strong Operational Growth
1. STRONG OPERATIONAL GROWTH STRONG & ACCELERATING CONTINUED ADJUSTED EBITDA HIGH REVERSIONARY LIKE-FOR-LIKE RENTAL GROWTH GROWTH DRIVEN BY INTERNAL RENT POTENTIAL GROWTH DESPITE DISPOSALS 0.04 3.8% 423 0.03 396 411 3.3% +23% 372 375 2.8% 2.9% 335 0.02 300 299 308 320 1.8% 0.01 0 Dec-20 Dec-21 Dec-2
Slide 6: 2. Successful Measures to Reduce Leverage
2. SUCCESFUL MEASURES TO REDUCE LEVERAGE DUE TO DISPOSALS AND VALUATION MOMENTUM PIVOT, PUT GCP IN STRONG POSITION Disposals: LOW AND STABLE NET DEBT/EBITDA ❖ Disposals of non-core and mature assets strengthened GCP’s financial position: LTV €350 million in signed disposals, increasing compared to o
Slide 7: 3. Pro-active Management of Financial Profile and Access to Capital Markets
3. PRO-ACTIVE MANAGEMENT OF FINANCIAL PROFILE AND STRONG ACCESS TO CAPITAL MARKETS REAFFIRMED INVESTMENT Perpetual notes exchanges and tender offers GRADE RATING BY S&P ❖ Exchange offers with tender options on the perpetual notes in April and September 2024 ❖ The transactions had a high acceptance r
Slide 8: Portfolio & Operational Results
PORTFOLIO & OPERATIONAL RESULTS 8
Slide 9: 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 10: 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 11: Strong Operational Dynamics
STRONG OPERATIONAL DYNAMICS CONTINOUSLY 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 (in € millions) 8.6 8.1 8.2 +23% +3.3% +3.8% 413 upside 508 L-F-L L-F-L Total net ren
Slide 12: Valuations Supported by Strong Operations
VALUATIONS SUPPORTED BY STRONG OPERATIONS VALUATIONS BOTTOMED IN 2024 AND PIVOTED TO INCREASE DRIVEN BY VALUATION PARAMETERS OPERATIONAL GROWTH Dec 2024 Dec 2023 ❖ Continued solid operational performance is the main driver of valuation Rent Multiple 20.5x 20.9x results, partially offsetting yield ex
Slide 13: Portfolio Overview
PORTFOLIO OVERVIEW ❖ In FY 2024, GCP signed ca. €350 million of disposals, increasing from €190 million in 2023. ❖ In FY 2024, GCP completed ca. €270 million of asset disposals around book value (slight discount of <2%). The closed disposals include properties signed in 2023. These properties are pr
Slide 14: Financial Results
FINANCIAL RESULTS GCP
Slide 15: P&L Results
P&L RESULTS NET RENTAL INCOME ADJUSTED EBITDA Selected consolidated statement of profit or loss 2024 2023 (in € millions) (in € millions) in € ‘000 unless otherwise indicated 78% 79% margin Net rental income 422,693 411,313 411 423 320 335 +3% +5% Revenue 597,018 607,741 Property revaluations and ca
Slide 16: FFO I + II
FFO I + II FFO I FFO I per share (in € millions) (in €) +2% in € ‘000 unless otherwise indicated 2024 2023 +1% 184 188 Adjusted EBITDA 335,010 319,647 1.07 1.08 Finance expenses (58,845) (56,814) Current tax expenses (41,275) (40,865) Contribution to minorities (4,994) (4,332) 2023 2024 2023 2024 Ad
Slide 17: Maintenance & Capex
MAINTENANCE & CAPEX REPOSITIONING CAPEX REPOSITIONING CAPEX & MAINTENANCE PRE-LETTING MODIFICATIONS: (in € per average sqm) EXTENSION OF FORMER ATTIC SPACE Berlin ❖ Focus remains on improving asset quality, value Berlin 25.8 creation and increasing rental income 23.7 ❖ Other value-add measures inclu
Slide 18: 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 +4% +5% -1% +6% +7% +1% 27.8 4,902 26.7 4,606 24.3 4,280 23.2 4,014 3,745 3,782 21.7 21.4 Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec 2023 2024 2023
Slide 19: Financial Profile
FINANCIAL PROFILE GCP
Slide 20: Strong Financial Profile
STRONG FINANCIAL PROFILE LIQUIDITY POSITION LOW LEVERAGE INTEREST HEDGING RATIO* Wuppertal Fixed & Swapped LOW AND STABLE LTV Variable 95% hedged 45% Board of Directors’ Limit 37% EPRA LTV NET €1.5bn -4% 33% (including perpetual notes as 100% debt) DEBT/ EBITDA 95% Dec 2024 cash Locking in lower int
Slide 21: Debt Maturity Schedule
DEBT MATURITY SCHEDULE AVERAGE DEBT COST OF DEBT 1,400 MATURITY 1.9% 4.8 years Dec 2024 Dec 2024 1,200 1,000 EUR Millions 800 600 400 200 0 COST OF 1.3% 1.3% 1.5% 1.0% 2.6% 4.4% 2.0% 3.1% 2.1% 2.3% MATURING DEBT 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 >=2038 Straight Bonds B
Slide 22: Guidance
GUIDANCE GCP
Slide 23: Guidance
GUIDANCE FY 2025 FFO I €185M – €195M FFO I per share €1.05 - €1.11 Dividend per share* Total net rent like-for-like growth €0.78 - €0.83 ~3.5% 2025 LTV <45% * The dividend will be subject to market condition and AGM approval Key drivers: ❖ Low single digit adj. EBITDA increase as a result of the pos
Slide 24: Appendix
APPENDIX GCP
Slide 25: Financial Policy
FINANCIAL POLICY GCP FINANCIAL POLICY GCP COVENANT FY 2024 COVENANT LIMIT RESULTS LTV limit at 45% Total Net Debt / Total Net Assets <=60% (1) 30% Debt to debt plus equity ratio at 45% (or lower) on a sustainable basis N/A Secured Net Debt / <=45% (1) (liquidity is larger Maintaining conservative fi
Slide 26: Successful Perpetual Notes Transactions
SUCCESSFUL PERPETUAL NOTES TRANSACTIONS Nominal Coupon First call date % and Exchange Amount Nominal Amount absolute Ratio1) repurchased Amount MAIN CHARACTERISTICS OF PERPETUAL NOTES outstanding accepting the via tenders outstanding before offers after 6.332% Perpetual Notes €200m 6.332% Jan 2023 7
Slide 27: 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 located in top tier 21%* of GCP’s neighborhoods: Portfolio Charlottenburg, Wilmersdorf, Mitte, Kreuzberg, Friedrichshain, Lichtenber
Slide 28: 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 29: Quality East and North Portfolio
QUALITY EAST AND NORTH PORTFOLIO QUALITY EAST PORTFOLIO QUALITY NORTH PORTFOLIO DRESDEN/LEIPZIG/HALLE HAMBURG / BREMEN 14%* 4%* of GCP’s of GCP’s Portfolio Portfolio DIVERSIFICATION INTO GERMANY’S DYNAMIC WELL POSITIONED IN EASTERN CITIES WITH GERMANY’S LARGEST Leipzig & Dresden are the largest STRO
Slide 30: 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 31: 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 consolidated sustainability 2024 (NON-)FINANCIAL statement was reviewed with REPORT limited assurance by KPMG. It
Slide 32: ESG Goals and Contribution
ESG GOALS AND CONTRIBUTION 32
Slide 33: 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 34: 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 35: 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 36: Analyst Coverage
ANALYST COVERAGE 19.7 18.0 15.7 15.4 14.5 14.5 13.9 13.5 13.0 12.5 12.5 12.2 12.0 11.5 11.5 Citigroup Kepler Cheuvreux DZ Bank First Berlin Berenberg Bernstein Goldman Sachs HSBC Deutsche Bank Oddo BHF Kempen & co Barclays Jefferies Bank of America UBS 14.11.2024 09.01.2025 14.08.2024 15.11.2024 17.
Slide 37: 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* 359% 22 SDAX (rebased)* 220% 20 18 FTSE EPRA/NAREIT 80% 16 Germany (rebased)* 14 12 10 Issue price 8 €2.75 6 4 2 2012 2013 2013 2014 2014 2015 2015 2016 2
Slide 38: 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 39: 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 40: 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 41: 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 42: 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/ GCP continuously strengthens its position within the business profile EXCELLENT aa a+/a a- bbb bbb-/bb+ BUSINESS RISK PROFILE aa+ (Vonovia- BBB+)1 2 (DW)2 (GCP) (Aroundto
Slide 43: 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 44: 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 45: Thank You
THANK YOU Investor Relations Team E-mail: gcp-ir@grandcity.lu www.grandcityproperties.com