Grand City Properties Sa · XETR:GYC
Grand City Properties Sa — 9M 2021 Earnings Presentation
29 slides from Grand City Properties Sa's earnings presentation, November 2021
Slide 1: Financial Results Presentation 9M 2021
ESSEN FINANCIAL RESULTS PRESENTATION 9M 2021 NOVEMBER 2021
Slide 2: Strong Operational Performance with Enhanced Asset Quality
STRONG OPERATIONAL PERFORMANCE WITH ENHANCED ASSET QUALITY +5% ps +5% ps STRONG LETTING PERFORMANCE AND EPRA NRV EPRA NTA growth VALUE CREATION ON A CONSISTENT BASIS growth Total Assets €4.9 billion, €4.7 billion, €11.3 billion per share €29.1 per share €27.9 +8% +8% +4% ps growth ps growth incl div
Slide 3: Operational Profitability
OPERATIONAL PROFITABILITY Selected consolidated statement of profit or loss 9M 2021 9M 2020 NET RENTAL INCOME ADJUSTED EBITDA in € ‘000 unless otherwise indicated (in € millions) (in € millions) Revenue 389,522 401,238 Net rental income 276,162 278,973 279.0 276.2 223.1 222.0 Property revaluations a
Slide 4: FFO I + II
FFO I + II FFO I1 (in € millions) FFO I per share1 (in €) in € ‘000 unless otherwise indicated 9M 2021 9M 2020 Adjusted EBITDA 222,024 223,077 Finance expenses (34,193) (38,322) 140 Current tax expenses (28,256) (22,563) 137 0.84 Contribution from / (to) joint ventures and minorities, Net (285) (579
Slide 5: EPRA NAV Metrics
EPRA NAV METRICS EPRA NAV PER SHARE METRICS (in €) EPRA NRV ps EPRA NTA ps EPRA NDV ps +8% +8% +10% EPRA NRV assumes that entities never sell assets and aims to represent the value required +5% incl div incl div incl div to rebuild the entity +5% 29.1 - Deferred tax liabilities fully added back 27
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW INVESTMENT PROPERTY ANNUALIZED RENTAL INCOME vs. (in € millions) MARKET POTENTIAL (INCLUDING VACANCY REDUCTION) (in € millions) In total, acquisitions of investment properties amounted +11% 465 to approx. €700 million, including approx. 6,700 units at an average multiple of 18x. +
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% 21% of GCP’s 4th of GCP’s Portfolio largest Portfolio Value city in Germany 70% of the Berlin portfolio is located in top tier neighborhoods: Charlottenburg, Wilmersdorf, Mitte, Kreuzberg,
Slide 9: Quality East and North Portfolio
QUALITY EAST AND NORTH PORTFOLIO QUALITY EAST PORTFOLIO QUALITY NORTH PORTFOLIO DRESDEN/LEIPZIG/HALLE HAMBURG / BREMEN Largest 12%* cities, after of GCP’s 4%* Second of GCP’s Berlin, in Portfolio largest city in Portfolio Eastern Germany DIVERSIFICATION INTO Germany GERMANY’S DYNAMIC WELL POSITIONED
Slide 10: High Quality London Portfolio
HIGH QUALITY LONDON PORTFOLIO* Approx. 85% of the portfolio is Through strong letting The total London 20% situated within a short walking performance from double portfolio, including of GCP’s distance to an digit vacancy to occupancy pre-marketed units Portfolio consists of approx. underground/over
Slide 11: Maintenance & Repositioning Capex
MAINTENANCE & REPOSITIONING CAPEX REPOSITIONING CAPEX REPOSITIONING CAPEX & MAINTENANCE (in € per average sqm) PLAYGROUNDS - Focus remains on improving the asset quality 17.4 DRESDEN - All capex is directed towards value creation 15.2 - Other value-add measures include: - Upgrading apartments for ne
Slide 12: 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 13: Capital Structure
CAPITAL STRUCTURE FINANCING SOURCES MIX HEDGING RATIO LOW LTV 4% 3% 4% 4% 45% Board of Directors’ Limit Bank Debt 36% 37% Straight Bond Fixed & Swapped 36% 3% 4% Convertible Variable 33% Capped 31% 57% 55% Equity Perpetuals 93% Dec Dec Sep Dec 2020 Sep 2021 2019 2020 2021 DEBT MATURITY SCHEDULE 1,20
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 with a stable outlook Approx. ICR* S&P billion €1.3 6.5x 88% BBB+ of value Long term strategic billion goal to reach A- rating *Adjusted
Slide 15: Guidance
GUIDANCE FY 2021 Guidance FFO I 183-192 FFO I per share (in €) 1.08-1.13 GUIDANCE CONFIRMED Dividend per share (in €) 0.81-0.85 Total net rent like-for-like growth 2%-3% LTV <45% BERLIN DRESDEN
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
ESG GOALS TARGETS reate a high standard of living at our properties through safe, attractive buildings, active community building and engaged ustomer service Retain residents b ant loyalty, by cre and staying ontinually enhance tenant satisfaction levels with r pportive, affordable re people enjoy l
Slide 19: 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 20: Social
SOCIAL EMPLOYEES TENANTS GCP FOUNDATION Alternative activities for our tenants More than 40 charitable projects during lock-downs, like virtual Santa through our Foundation across The Company values diversity, a fact that is also illustrated with 39 LOOKING AHEAD event. Germany nations represented a
Slide 21: Governance
GOVERNANCE 1 BEST-IN-CLASS REPORTING LEADING TO HIGH STANDARDS OF TRANSPARENCY - For the FIFTH 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 2020, further impro
Slide 22: 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 23: Analyst Coverage
ANALYST COVERAGE 34.7 28.0 27.5 27.5 27.0 26.0 26.0 26.0 26.0 26.0 25.8 25.5 24.0 23.5 23.0 23.0 22.0 21.0 19.5 Citigroup Bank of America First Berlin DZ Bank Kepler Cheuvreux UBS Berenberg Societe Generale J.P. Morgan Commerzbank Goldman Sachs HSBC Deutsche Bank Barclays Hauck & Nord LB Jefferies O
Slide 24: Share Development & Ownership Structure
SHARE DEVELOPMENT & OWNERSHIP STRUCTURE GCP - SHARE PRICE AND TOTAL RETURN SINCE FIRST EQUITY PLACEMENT (19.7.2012) OWNERSHIP STRUCTURE Placement Frankfurt Stock Exchange (Prime Standard) 19.07.2012 First equity issuance (€2.75 per share) Other 50% Number of shares 176,187,899 (as of 30 Sep 2021) Nu
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 15 years of international experience in management, capital Chief Executive Officer / markets, finance and accounting. Before Mr. Zamir bec
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. Before joining GCP he served as a financial and corporate analyst for a financial advisory and was an economist. Mr
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+ aa+ BUSINESS RISK PROFILE (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 Katrin Petersen Head of Communication E-mail: katrin.petersen@grandcity.lu www.grandcityproperties.com
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