Grand City Properties Sa · XETR:GYC
Grand City Properties Sa — 9M 2022 Earnings Presentation
32 slides from Grand City Properties Sa's earnings presentation, November 2022
Slide 1: Financial Results Presentation 9M 2022
London FINANCIAL RESULTS PRESENTATION 9M 2022 November 2022
Slide 2: Financial Highlights Portfolio Highlights
FINANCIAL HIGHLIGHTS PORTFOLIO HIGHLIGHTS SOLID LIKE-FOR-LIKE RENTAL GROWTH Net rental income Investment Property €295million €9.7 billion +3.1% L-F-L +7% +4% FFO I +2.3% L-F-L TOTAL NET RENT +0.8% L-F-L €145million IN-PLACE RENT GROWTH GROWTH SEP 2022 OCCUPANCY GROWTH +3% SEP 2022 SEP 2022 Adjusted
Slide 3: Highlights: Well Positioned in Current Environment
HIGHLIGHTS WELL POSITIONED IN CURRENT ENVIRONMENT WITH HIGH HEADROOM TO BOND COVENANTS LONG AVERAGE DEBT MATURITY PROACTIVE DEBT MANAGEMENT 6.2 No debt maturities until Q2 €615m Redemption and repayment of near-term maturing debt, 2024, 95% of debt is fixed or years interest hedged 9M 2022 resulting
Slide 4: Operational Profitability
OPERATIONAL PROFITABILITY NET RENTAL INCOME ADJUSTED EBITDA Selected consolidated statement of profit or loss 9M 2022 9M 2021 (in € millions) (in € millions) in € ‘000 unless otherwise indicated 295 276 Revenue 424,423 389,522 222 230 Net rental income 294,799 276,162 Property revaluations and capit
Slide 5: FFO I + II
FFO I + II in € ‘000 unless otherwise indicated 9M 2022 9M 2021 Adjusted EBITDA 230,069 222,024 Finance expenses (34,788) (34,193) Current tax expenses (29,872) (28,256) Contribution from / (to) joint ventures and minorities, Net (2,264) (285) Adjustment for perpetual notes attribution (18,512) (18,
Slide 6: EPRA NAV Metrics
EPRA NAV METRICS EPRA NAV PER SHARE METRICS (in €) EPRA NRV → assumes that entities never sell assets and aims to represent the value required EPRA NRV PS EPRA NTA PS EPRA NDV PS to rebuild the entity +0% +0% - Deferred tax liabilities fully added back 31.7 31.6 +14% 30.4 30.4 - RETT fully added bac
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW INVESTMENT PROPERTY ANNUALIZED RENTAL GCP VALUE incl. land VS Berlin (in € millions) INCOME vs. REPLACEMENT COST excl. land (Excl. London & in € per sqm) MARKET POTENTIAL +4% (INCLUDING VACANCY REDUCTION) (in € millions) 3,400 9,730 9,339 +15% 457 397 1,974 Dec Sep Sep 2022 Annual
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 24% 4th 22% of GCP’s Largest of GCP’s Portfolio city in Portfolio Value Germany 70% of the Berlin portfolio is located in top tier neighborhoods: Charlottenburg, Wilmersdorf, Mitte, Kreuzberg,
Slide 10: High Quality London Portfolio
HIGH QUALITY LONDON PORTFOLIO* 19% of GCP’s WELL CONNECTED ❖The total London portfolio, including pre-marketed units, consists of Portfolio LONDON PORTFOLIO over 4,400 units ❖Over 80% of the portfolio is situated within a short walking distance to an underground/overground station ❖Through strong le
Slide 11: Quality East and North Portfolio
QUALITY EAST AND NORTH PORTFOLIO QUALITY EAST PORTFOLIO QUALITY NORTH PORTFOLIO DRESDEN/LEIPZIG/HALLE HAMBURG / BREMEN 13%* Second 4%* of GCP’s largest city in of GCP’s Portfolio Germany Portfolio DIVERSIFICATION INTO GERMANY’S DYNAMIC WELL POSITIONED IN EASTERN CITIES WITH GERMANY’S LARGEST STRONG
Slide 12: Maintenance & Repositioning Capex
MAINTENANCE & REPOSITIONING CAPEX REPOSITIONING CAPEX REPOSITIONING CAPEX & MAINTENANCE PLAYGROUND (in € per average sqm) - Focus remains on improving the asset quality DUISBURG - All capex is directed towards value creation - Other value-add measures include: - Upgrading apartments for new rentals
Slide 13: 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 9M 2022 results Debt to debt plus equity ratio at 45% (or lower) on a sustainable basis Limitation on Debt ✓ 32% Total Debt / Asse
Slide 14: Strong Financial Profile
STRONG FINANCIAL PROFILE FINANCING SOURCES MIX NET DEBT/EBITDA (9M Annualised) LOW LTV INTEREST HEDGING RATIO Wuppertal Fixed & Swapped 3% 0% 3% Bank Debt Variable 5% 15.4x 45% Board of Directors’ Limit 36% 36% Straight Bond 11.4x 36% 35% 4% Convertible 57% 61% Equity 95% Perpetuals NET DEBT/EBITDA
Slide 15: Debt Maturity Schedule
DEBT MATURITY SCHEDULE 1,200 AVERAGE DEBT COST OF DEBT MATURITY 1.2% 6.2 years 1,000 No upcoming 800 maturities until Q2 2024 EUR Millions 600 Cash and liquid assets cover debt maturities up to mid 2025 400 200 0 CURRENT COST OF 1.3% 1.3% 1.3% 1.5% 0.2% 1.9% 2.2% 1.7% 1.5% 1.8% MATURING DEBT 2022 20
Slide 16: Perpetual Notes Refresher
PERPETUAL NOTES REFRESHER Characteristics Perpetual Notes Options for Upcoming Call Dates No maturity Full optionality No covenants ❖ Refinance with a new hybrid if rates are attractive (new rates are below reset rates) ❖ Impact on S&P equity content: No impact EPRA LTV ❖ Cash repayment using the au
Slide 17: Guidance
GUIDANCE FY 2022 DRESDEN FFO I 188M – 197M FFO I per share (in €) 1.13 - 1.18 GUIDANCE CONFIRMED Dividend per share (in €)* 0.85 – 0.89 Total net rent like-for-like growth >2.5% LTV <45% * payment of dividend will be considered based on the market situation before the AGM invitation in Q2 2023 Duisb
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 externally
Slide 20: ESG Goals and Contribution
ESG GOALS AND CONTRIBUTION 20
Slide 21: Environment
ENVIRONMENT GOING FORWARD 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 Agreement) of cert
Slide 22: Social
SOCIAL TENANTS GCP FOUNDATION EMPLOYEES GCP values diversity – a fact that is also LOOKING FORWARD underlined with almost 40 nations Entertaining, diverse, convincing: GCP From Dortmund to Halle, from Bremen to represented among all GCP employees creates attractive digital alternatives to Mainz: Sup
Slide 23: 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. - GCP also published its remuneration report for 2
Slide 24: 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 25: Upcoming New EPRA KPI – EPRA LTV
UPCOMING NEW EPRA KPI – EPRA LTV ❖ The EPRA LTV disclosure aims to provide a Loan-to-Value (LTV) metric which EPRA believes is more relevant to equity holders. It therefore considers all equity which is senior to common shares not as equity but as debt. ❖ The main impact of the EPRA LTV recommendati
Slide 26: Analyst Coverage
ANALYST COVERAGE 26.2 24.5 23 19 19 18.9 18 16 15.8 14 13 11.5 11.2 10.9 8.5 Citigroup Kepler Cheuvreux Bank of America Berenberg First Berlin DZ Bank Oddo BHF HSBC Societe Generale J.P. Morgan Deutsche Bank UBS Barclays Goldman Sachs Kempen & co 02.08.2022 15.08.2022 Securities 13.09.2022 12.10.202
Slide 27: Share Development & Ownership Structure
SHARE DEVELOPMENT & OWNERSHIP STRUCTURE GCP - SHARE PRICE AND TOTAL RETURN SINCE FIRST EQUITY PLACEMENT (19.7.2012) 26 24 Grand City27 Properties 417% 22 20 18 16 14 12 MDAX (rebased) 162% 10 Issue price 8 €2.75 6 4 FTSE EPRA/NAREIT Germany (rebased) 80% 2 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 J
Slide 28: 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 29: 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 30: 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 31: 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 32: Thank You
THANK YOU Investor Relations Team E-mail: gcp-ir@grandcity.lu www.grandcityproperties.com
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