Grand City Properties Sa · XETR:GYC
Grand City Properties Sa — H1 2022 Earnings Presentation
32 slides from Grand City Properties Sa's earnings presentation, August 2022
Slide 1: Financial Results Presentation Q2 2022
Leipzig FINANCIAL RESULTS PRESENTATION Q2 2022 August 2022
Slide 2: Financial Highlights and Portfolio Highlights
FINANCIAL HIGHLIGHTS PORTFOLIO HIGHLIGHTS SOLID LIKE-FOR-LIKE RENTAL GROWTH Net rental income Investment Property €195million €9.8 billion +3.0% L-F-L +6% FFO I +5% +2.2% L-F-L TOTAL NET RENT +0.8% L-F-L €97million IN-PLACE RENT GROWTH GROWTH JUN 2022 OCCUPANCY GROWTH +3% JUN 2022 JUN 2022 Adjusted
Slide 3: Well Positioned in Current Environment
HIGHLIGHTS WELL POSITIONED IN CURRENT ENVIRONMENT LONG AVERAGE DEBT MATURITY PROACTIVE DEBT MANAGEMENT 6.4 No debt maturities until Q2 €615m Redemption and repayment of near-term maturing debt, 2024, 95% of debt is fixed or years interest hedged HI 2022 resulting in clean maturity schedule JUN 2022
Slide 4: Operational Profitability
OPERATIONAL PROFITABILITY Selected consolidated statement of profit or loss H1 2022 H1 2021 NET RENTAL INCOME ADJUSTED EBITDA (in € millions) (in € millions) in € ‘000 unless otherwise indicated Revenue 272,092 259,448 195 Net rental income 194,586 183,131 183 152 147 Property revaluations and capit
Slide 5: FFO I + II
FFO I + II in € ‘000 unless otherwise indicated H1 2022 H1 2021 Adjusted EBITDA 152,264 147,410 Finance expenses (23,006) (22,702) Current tax expenses (18,530) (17,629) FFO I growth has been driven by the impact of net acquisitions in 2021 Contribution from / (to) joint ventures and minorities, Net
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% +1% - Deferred tax liabilities fully added back 31.7 31.8 30.6 30.4 - RETT fully added back +12
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 +5% (INCLUDING VACANCY REDUCTION) (in € millions) 3,400 9,801 9,339 +20% 475 396 1,949 Dec Jun Jun 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 21% 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* The total London portfolio, including pre-marketed 20% of GCP’s units consists of approx. 4,500 units Portfolio Over 80% of the portfolio is situated within a short walking distance to an Through strong underground/overground letting performance station from double dig
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 (in € per average sqm) - Focus remains on improving the asset quality PLAYGROUND 10.9 - All capex is directed towards value creation 10.3 - Other value-add measures include: POTSDAM - Upgrading apartments for new
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 H1 2022 results LTV limit at 45% Limitation on Debt ✓ 32% Total Debt / Assets <=60%(1) Debt to
Slide 14: Strong Financial Profile
STRONG FINANCIAL PROFILE FINANCING SOURCES MIX NET DEBT/EBITDA (H1 Annualised) LOW LTV INTEREST HEDGING RATIO Wuppertal Fixed & Swapped 3% 0% 3% Bank Debt Variable 5% 15.3x 45% Board of Directors’ Limit 36% 36% Straight Bond 11.2x 36% 35% 4% Convertible 57% 61% Equity 95% Perpetuals NET DEBT/EBITDA
Slide 15: Debt Maturity Schedule
DEBT MATURITY SCHEDULE AVERAGE DEBT COST OF DEBT MATURITY 1.1% 6.4 years 1,200 No upcoming 1,000 maturities in the next 2 years 800 Cash and liquid assets cover EUR Millions 600 debt maturities up to mid 2025 400 200 0 CURRENT COST OF 1.3% 1.3% 1.3% 1.5% 0.2% 1.2% 2.3% 1.7% 1.4% 1.4% MATURING DEBT 2
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) EPRA LTV ❖ Impact on S&P equity content: No impact Equity instrument Corporate R
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% Duisburg FFO growth drivers: Operational performance through increased LFL rental growth and impact of 2021 & 2022
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 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 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 26 26 24.6 24.5 24.5 23 23 18 18 16.8 16.7 15 14.4 13 Citigroup UBS Berenberg DZ Bank First Berlin Kepler Cheuvreux J.P. Morgan Bank of America Oddo BHF HSBC Barclays Societe Generale Kempen & co Goldman Sachs Deutsche Bank 02.08.2022 17.05.2022 06.06.2022 17.05.2022 18.05.2022
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 City Properties 566% 22 20 18 16 14 12 10 Issue price MDAX (rebased) 162% 8 €2.75 6 4 FTSE EPRA/NAREIT Germany (rebased) 125% 2 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Ju
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 (Aroundtown) STRON
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
Grand City Properties — H1 2022 Earnings Presentation on 6ix