Grand City Properties Sa · XETR:GYC
Grand City Properties Sa — H1 2021 Earnings Presentation
30 slides from Grand City Properties Sa's earnings presentation, August 2021
Slide 1: Financial Results Presentation H1 2021
BERLIN FINANCIAL RESULTS PRESENTATION H1 2021 AUGUST 2021
Slide 2: Strong Operational Performance
STRONG OPERATIONAL PERFORMANCE +1% +2% ps ps EPRA NRV EPRA NTA growth growth Total Assets €4.7 billion, €4.5 billion, BERLIN €10.9 billion per share €28.0 per share €27.0 +4% +5% 0% ps growth ps growth incl div Incl. div FFO I 1 Adjusted EBITDA FFO I per share 1 €94 million €147 million €0.56 (FFO I
Slide 3: Enhanced Asset Quality
ENHANCED ASSET QUALITY ACCRETIVE CAPITAL RECYCLING STRONG LETTING PERFORMANCE AND VALUE CREATION Acquisitions located mainly London, Berlin and Dresden and other German cities executed at an average multiple of 18x The steady and gradual decline in vacancy coupled with the increase in in-place rent
Slide 4: Operational Profitability
OPERATIONAL PROFITABILITY Selected consolidated statement of profit or loss H1 2021 H1 2020 NET RENTAL INCOME ADJUSTED EBITDA in € ‘000 unless otherwise indicated (in € millions) (in € millions) Revenue 259,448 267,723 Net rental income 183,131 186,364 186.4 183.1 Property revaluations and capital g
Slide 5: FFO I + II
FFO I + II FFO I1 (in € millions) FFO I per share1 (in €) in € ‘000 unless otherwise indicated H1 2021 H1 2020 Adjusted EBITDA 147,410 147,106 Finance expenses (22,702) (24,297) 94 Current tax expenses (17,629) (14,519) 92 Contribution from / (to) joint ventures and minorities, Net (282) (300) Adjus
Slide 6: EPRA NAV Metrics
EPRA NAV METRICS EPRA NAV PER SHARE METRICS (in €) EPRA NRV ps EPRA NTA ps EPRA NDV ps +4% EPRA NRV assumes that entities never sell assets and aims to represent the value required incl div +5% to rebuild the entity +1% incl div +6% 28.0 +2% incl div - Deferred tax liabilities fully added back 27.
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW INVESTMENT PROPERTY (in € millions) ANNUALIZED RENTAL INCOME vs. MARKET POTENTIAL (INCLUDING VACANCY REDUCTION) +5% € 435 +23% € 354 8,387 8,022 Dec Jun Jun 2021 Annualized 2020 2021 annualised market potential on current market rent Area Annualized net In-place rent per Value per
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 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 10: Quality East and North Portfolio
QUALITY EAST AND NORTH PORTFOLIO QUALITY EAST PORTFOLIO QUALITY NORTH PORTFOLIO DRESDEN/LEIPZIG/HALLE HAMBURG / BREMEN Largest 13%* cities, after of GCP’s 5%* Second of GCP’s Berlin, in Portfolio largest city in Portfolio Eastern Germany DIVERSIFICATION INTO Germany GERMANY’S DYNAMIC WELL POSITIONED
Slide 11: High Quality London Portfolio
HIGH QUALITY LONDON PORTFOLIO* Approx. 85% of the portfolio is The total London 21% situated within a short walking Strong letting performance portfolio, including 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: Maintenance & Repositioning Capex
MAINTENANCE & REPOSITIONING CAPEX REPOSITIONING CAPEX REPOSITIONING CAPEX & MAINTENANCE (in € per average sqm) PLAYGROUNDS - Focus remains on improving the asset quality DRESDEN 10.2 10.3 - All capex is directed towards value creation - Other value-add measures include: - Upgrading apartments for ne
Slide 13: 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 14: Capital Structure
CAPITAL STRUCTURE FINANCING SOURCES MIX HEDGING RATIO LOW LTV 3% 45% Board of Directors’ Limit 4% 2% Bank Debt 36% 39% Straight Bond Convertible fixed & swapped 3% 3% 34% variable 33% 31% 57% 56% Equity Perpetuals 97% Dec Dec Jun Dec 2020 Jun 2021 2019 2020 2021 DEBT MATURITY SCHEDULE Cost of Debt 1
Slide 15: Debt Coverage & Credit Rating
DEBT COVERAGE & CREDIT RATING INTEREST COVER RATIO UNENCUMBERED INVESTMENT PROPERTIES LIQUIDITY POSITION ICR1) €7.8 Approx. 6.5x billion 92% €1.4 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 16: 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 17: Appendix
APPENDIX GCP
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 2020, further impr
Slide 23: 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 24: Analyst Coverage
ANALYST COVERAGE 32 28 28.0 27.5 27.0 27.0 26.2 24 26.0 26.0 26.0 26.0 25.5 25.3 24.5 23.5 23.0 23.0 23.0 20 22.0 21.0 19.5 16 12 8 4 0 Bank of First Berlin Kepler UBS Citigroup Berenberg Societe J.P. Morgan Commerzbank DZ Bank Goldman Sachs HSBC Barclays Deutsche Bank Hauck & Nord LB Jefferies Oddo
Slide 25: 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 26: 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 27: 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 28: 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 29: 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 30: Thank You
THANK YOU Katrin Petersen Head of Communication E-mail: katrin.petersen@grandcity.lu www.grandcityproperties.com
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