Grand City Properties S A : H1 2022 Financial Results Presentation

Leipzig

FINANCIAL RESULTS

PRESENTATION

Q2 2022

August 2022

FINANCIAL HIGHLIGHTS

PORTFOLIO HIGHLIGHTS

Net rental income

€195million

+6%

Adjusted EBITDA

€152million

+3%

1. based a share price of €13.9 per share
   2

FFO I

€97million

+3%

FFO I per share

€0.59

(FFO I yield: 8.5%1)

+5%

GUIDANCE CONFIRMED

SOLID LIKE-FOR-LIKE RENTAL GROWTH

Investment Property

€9.8 billion			+3.0% L-F-L
+5%	+2.2% L-F-L	TOTAL NET RENT	+0.8% L-F-L
			GROWTH
	IN-PLACE RENT GROWTH	JUN 2022	OCCUPANCY GROWTH
	JUN 2022			JUN 2022
EPRA NTA		ROBUST PORTFOLIO FUNDAMENTALS
€5.2billion

€30.6 per share	In-place rent			Vacancy			Value/sqm
+3% per share	(in €/sqm)								(€/sqm)	2,297
dividend adjusted		8.0	8.1	8.2									2,205
7.4	6.7%							2,085
6.8				6.2%					1,858
					5.7%
								5.1%	4.7%	1,543
Dec	Dec	Jun	Dec	Jun	Dec	Dec	Jun	Dec	Jun	Dec	Dec	Jun	Dec	Jun
2019	2020	2021	2021	2022	2019	2020	2021	2021	2022	2019	2020	2021	2021	2022

HIGHLIGHTS

WELL POSITIONED IN CURRENT ENVIRONMENT

LONG AVERAGE DEBT MATURITY

6.4	No debt maturities until Q2
years	2024, 95% of debt is fixed or
interest hedged
JUN 2022

STRONG LIQUIDITY POSITION

~€450m	Cash and liquid assets position
CASH AND LIQUID ASSETS
covers debt maturities until Q2
€300m
2025 and amounts to 12% of
UNDRAWN RCF	total debt
JUN 2022

PROACTIVE DEBT MANAGEMENT

€615m	Redemption and repayment of
near-term maturing debt,
HI 2022	resulting in clean maturity
	schedule

UNENCUMBERED ASSETS

€9bn	Large pool of high-quality
91% of value	unencumbered assets provides
excellent access to attractive
JUN 2022	bank financing

STRONG FINANCIAL PROFILE MAINTAINED

LOW COST OF	ICR
6.6x	LOW LEVERAGE	CREDIT RATING	EQUITY RATIO
DEBT	(LOAN-TO-VALUE)	BBB+
1.1%	H1 2022	35%	53%
6.5x	STABLE
JUN 2022	JUN 2022	By S&P
	H1 2021

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OPERATIONAL PROFITABILITY

Selected consolidated statement of profit or loss	H1 2022	H1 2021
in € '000 unless otherwise indicated
			259,448
Revenue		272,092
Net rental income	194,586	183,131
			179,662
Property revaluations and capital gains		234,412
Share of profit from investments in equity-accounted investees		-	3,060
Property operating expenses		(115,430)	(108,358)
Administrative and other expenses		(5,656)	(5,408)
EBITDA		385,418	328,404
Adjusted EBITDA	152,264	147,410
Depreciation and amortization		(5,148)	(2,606)
Finance expenses		(23,006)	(22,702)
Other financial results		(64,743)	(89,265)
Current tax expenses		(18,530)	(17,629)
Deferred tax expenses	(40,099)	(39,118)
Profit for the period		233,892	157,084
Earnings per share (basic) in €		1.21	0.72
Earnings per share (diluted) in €		1.17	0.68

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

	195
183			152
		147
H1 2021	H1 2022	H1 2021	H1 2022

	+3.0% L-F-L
	TOTAL NET RENT
+2.2% L-F-L	GROWTH	+0.8% L-F-L
JUN 2022
IN-PLACE RENT GROWTH		OCCUPANCY GROWTH
JUN 2022		JUN 2022

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)
Contribution from / (to) joint ventures and minorities, Net	(1,299)	(282)
Adjustment for perpetual notes attribution	(12,274)	(12,565)
FFO I	97,155	94,232
FFO I per share (in €)		0.56
0.59
FFO I yield1	8.5%
		94,232
FFO I	97,155
Result from disposal of properties	7,318	71,434
FFO II	104,473	165,666

1 based on FFO I per share annualised and a share price of €13.9 2 based on a pay-out policy of 75% of FFO I per share

FFO I growth has been driven by the impact of net acquisitions in 2021 and solid like-for-like rental growth. This has been further supported by the optimization of the financial profile in 2021 and the repayment of over €615 million of debt in the first half of 2022, offset by slightly higher leasehold expenses.

The FFO I per share increase has been additionally supported by full

impact of the share buybacks in 2021.

	FFO I	FFO I per share
	(in € millions)	FFO I	(in €)
		yield1
		8.5%
94	97		0.59
		0.56
		Dividend
		yield12
		6.4%
H1 2021	H1 2022	H1 2021	H1 2022

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