Grand City Properties S A : FY 2021 Financial Results Presentation

Berlin

FINANCIAL RESULTS

PRESENTATION

FY 2021

MARCH 2022

FINANCIAL HIGHLIGHTS

PORTFOLIO HIGHLIGHTS

Total Assets €11.6 billion

+6%

Net rental income

€375 million

+1%

FFO I

€186 million In-line with guidance

+2%

FFO I per share

STRONG OPERATIONAL PERFORMANCE, SUPPORTED BY

ACCRETIVE CAPITAL RECYCLING

+15%

EPRA NTA

ps

+2.8%

growth

€5 billion,

+2.2%

+0.6%

L-F-L

per share €30.4

L-F-L

L-F-L

+18%

Total net rent growth

In-place rent growth

Occupancy growth

ps growth

Dec 2021

Dec 2021

Incl. div

Dec 2021

ACQUISITIONS

DISPOSALS

Adjusted EBITDA

Acquiring quality, stable assets

Disposing non-core properties above book value

€299 million

Over €700 million

Approx. €360 million

+0%

Total profit

€617 million

million

+37%

Unencumbered

Investment properties

€8.4 billion (88%)

€1.11

(FFO I yield: 5.5%1)

+4%

Share buyback 2021

€270 million

7% of share capital

Lowest record of	Average Debt
Cost of Debt	Maturity
1%	6 years

Dividend per share2

€0.834

(Dividend yield: 4.1%1)

+1%

LTV	Equity Ratio
36%	50%

In-place rent	Vacancy		Value/sqm
(in €/sqm)			(€/sqm)
8.1	7.1%		2,205
7.4	6.7%
6.8	6.2%		1,858
6.0		5.1%	1,543
			1,257

Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec
2018	2019	2020	2021	2018	2019	2020	2021	2018	2019	2020	2021

	1 based a share price of €20.2
2	2 2021 dividend is subject to AGM approval and based on a payout ratio of 75% of FFO I

OPERATIONAL PROFITABILITY

Selected consolidated statement of profit or loss	2021	2020
in € '000 unless otherwise indicated
Revenue	524,629	535,424
Net rental income	374,550	372,462
Property revaluations and capital gains	694,844	343,409
Share of profit from investments in equity-accounted investees	3,952	3,569
Property operating expenses	(218,064)	(226,486)
Administrative and other expenses	(11,138)	(10,719)
EBITDA	994,223	645,197
Adjusted EBITDA	298,589	299,780
Depreciation and amortization	(8,235)	(5,042)
Finance expenses	(46,450)	(52,760)
Other financial results	(148,640)	(45,670)
Current tax expenses	(39,227)	(31,387)
Deferred tax expenses	(134,582)	(61,267)
Profit for the period	617,089	449,071
Earnings per share (basic) in €	3.12	2.13
Earnings per share (diluted) in €	2.90	2.01

3

NET RENTAL INCOME	ADJUSTED EBITDA
(in € millions)	(in € millions)

372.5	374.6
		299.8	298.6
2020	2021	2020	2021

	+2.2%			+2.8%			+0.6%
			L-F-L
		L-F-L							L-F-L
					Total net rent growth
		In-place rent growth							Occupancy growth
					Dec 2021
		Dec 2021					Dec 2021

FFO I + II

in € '000 unless otherwise indicated	2021	2020
Adjusted EBITDA	298,589	299,780
Finance expenses	(46,450)	(52,760)
Current tax expenses	(39,227)	(31,387)
Contribution from / (to) joint ventures and minorities, Net	(1,544)	(579)
Adjustment for perpetual notes attribution	(25,042)	(32,848)
FFO I	186,326	182,206
FFO I per share (in €)
1.11	1.07
FFO I yield1	5.5%
Dividend per share (in €)2
0.8340	0.8232
Dividend yield1	4.1%
FFO I	186,326	182,206
Result from disposal of properties	101,223	301,828
FFO II	287,549	484,034
1 based on a share price of €20.2
2 2021 dividend is subject to AGM approval and based on a pay-out policy of 75% of FFO I per share

Continued optimization of GCP's financial profile have resulted in

significant reductions to its finance expenses and coupons

attributable to perpetual notes investors, supporting growth in FFO I

Additionally, through the accretive share buybacks executed in 2021 the Company was able to further boost its FFO I on a per share basis

	FFO I	FFO I per share	Dividend per share		FFO II
	(in € millions)		(in €)		(in €)		(in € millions)
182.2	186.3	1.07	1.11	FFO I		484.0
			yield1
				5.5%	0.83
				0.82
							287.6
				Dividend
				yield1
4				4.1%
2021	2020	2021	2020	20212	2020	2021
2020

Disposals during 2021

amounted to approx. €360

million, 22% above book value

and at a profit margin over costs (incl capex) of 39%

Disposals comprised primarily of non-core assets in eastern German cities and secondary cities in NRW, as well building rights

EPRA NAV METRICS

EPRA NAV PER SHARE METRICS (in €)

EPRA NRV PS

EPRA NTA PS

EPRA NDV PS

	+17%			+18%		+20%
	incl div			incl div		incl div
	+14%	31.7		+15%	30.4
27.8
		26.5
						+16%	23.3
						20.1
Dec		Dec	Dec		Dec	Dec	Dec
2020		2021	2020		2021	2020	2021

EPRA NRV → assumes that entities never sell assets and aims to represent the value required to rebuild the entity

• Deferred tax liabilities fully added back
• RETT fully added back

EPRA NTA → assumes that entities buy and sell assets, thereby crystallizing certain levels of unavoidable deferred tax and triggering purchaser's costs.

GCP has classified properties into three categories for which, as they may be disposed in the long term, deferred taxes or real estate transfer tax are not added back in the NTA calculation:

EPRA NAV metrics supported by strong profit generation, offset by the dividend payment and share buyback during the period while the EPRA NAV per share metrics were supported by the share buyback program.

Investment properties held

for sale.

Properties classified in the

portfolio as "Others" and may be

disposed on an opportunistic basis. The Company will further evaluate the probability of these properties to be disposed or held long term.

Development rights in

Germany

		EPRA NAV METRICS (in € millions)
	EPRA NRV	EPRA NTA		EPRA NDV
	+9%	5,229	+10%	5,020		+12%
	4,776
			4,566
					3,452	3,853
	Dec	Dec	Dec	Dec	Dec	Dec
	2020	2021	2020	2021
5	2020	2021

EPRA NDV → represents the shareholders' value under a disposal scenario, where deferred tax and financial instruments are calculated to the full extent of their liability, net of any resulting tax

No adjustments besides fair value measurements of debt.