Grand City Properties S A : Q1 2021 Financial Results Presentation

FINANCIAL RESULTS

PRESENTATION

Q1 2021

MAY 2021

BERLIN

ROBUST OPERATIONAL PERFORMANCE

Revenue	Net rental income	1.8%
LIKE-FOR-LIKE
€128 million	€91 million
Rental growth
-5%	-4%
Adjusted EBITDA	FFO I 1	FFO I per share 1
€47 million
€73 million	€0.27
(FFO I yield: 4.9%2)
-2%	+0%	-4%
	-1%	-1%
Total Assets	EPRA NRV	EPRA NTA
€4.7 billion,	€4.5 billion,
€11 billion
per share €28.1	per share €27.0
+1%	+1%	+2%
ps growth	ps growth

BERLIN

HALLE

Unencumbered
Investment	Lowest record of	Average Debt
properties	Cost of Debt	Maturity
€7.6 billion	1%	7 years
(92%)

1 previously defined as FFO I / FFO I per share after perpetual notes attribution

2 2 based on FFO I per share annualised and a share price of €22

LTV	Equity Ratio
33%	50%

OPERATIONAL PROFITABILITY

Selected consolidated statement of profit or loss	Q1 2021	Q1 2020
in € '000 unless otherwise indicated
Revenue	128,323	135,331
Net rental income	90,578	94,510
Property revaluations and capital gains	72,407	69,291
Share of profit from investments in equity-accounted investees	1,997	1,348
Property operating expenses	(54,083)	(58,766) 1
Administrative and other expenses	(2,609)	(2,947) 1
Depreciation and amortization	(1,358)	(1,222) 1
EBITDA	146,035	144,257
Adjusted EBITDA	72,632	73,978
Finance expenses	(11,724)	(11,009)
Other financial results	(64,383)	(59,539)
Current tax expenses	(7,869)	(7,392)
Deferred tax expenses	(9,478)	(9,432)
Profit for the period	51,223	55,663
Earnings per share (basic) in €	0.20	0.24
Earnings per share (diluted) in €	0.19	0.23
1 Reclassified

3

NET RENTAL INCOME	ADJUSTED EBITDA
		(in € millions)			(in € millions)
	94.5
			90.6
							74.0			72.6

Q1 2020

Q1 2021

Q1 2020

Q1 2021

SUSTAINABLE

GROWTH IN NET

RENTAL INCOME

ON A LIKE-FOR-LIKE

BASIS SUPPORTING

OPERATIONAL

PROFITABILITY

AGILE AND	EFFICIENT COST
EFFICIENT	STRUCTURE DRIVEN
OPERATING	BY DISPOSAL OF
PLATFORM	NON-CORE ASSETS,
SUPPORTING	AND ACQUISITION
STRONG BUSINESS	OF HIGHER QUALITY
EFFICIENCIES	ASSETS

FFO I + II

in € '000 unless otherwise indicated		Q1 2021
Adjusted EBITDA		72,632
Finance expenses		(11,724)
Current tax expenses		(7,869)
Contribution from / (to) joint ventures and minorities, Net		159
Adjustment for perpetual notes attribution		(6,395)
FFO I 1		46,803
FFO I per share 1 (in €)		0.27
FFO I yield3	4.9%
FFO I 1		46,803
Result from disposal of properties		57,219
FFO II 2	104,022
1 previously defined as FFO I / FFO I per share after perpetual notes attribution
2 Reclassified to be based on FFO I after perpetual notes attribution
3 Based on FFO I per share annualised and a share price of €22

FFO I1 (in € millions)

FFO I per share1 (in €)

Q1 2020
73,978
(11,009)
(7,392)
(355)	47	47	0.28
(8,227)			0.27
46,995
0.28
46,995
88,912
135,907 2
	Q1 2020	Q1 2021	Q1 2020	Q1 2021

FFO II2 (in € millions)	Disposals during the first quarter
136
of 2021 amounted to €220 million,
	16% above book value.
104	These comprise primarily of non-
	core assets in secondary cities,
	generating a profit margin over
	costs (incl capex) of 35%

4	Q1 2020	Q1 2021

FFO I

yield3 4.9%

Dividend

yield3 3.7%

GCP's proactive approach in optimizing its debt profile have supported enhanced profitability

Contribution from joint ventures supplements operational profitability

Effect of Share Buyback (SBB) program on the FFO I per share will be more evident in the subsequent periods, with the full period effect of the SBB as well as further deployment of the SBB program (currently €138.6 million of approx. €270 million buy backs completed)

EPRA NAV METRICS

EPRA NAV PER SHARE METRICS (in €)

EPRA NRV ps

EPRA NTA ps

EPRA NDV ps

27.8	28.1	26.5	27.0
				20.1	20.8
Dec	Mar	Dec	Mar	Dec	Mar
2020	2021	2020	2021	2020	2021

Profit generation offset by share buyback program, resulting in marginally lower EPRA NAV metrics on an absolute basis but an increase on a per share basis.

The share buyback program remains accretive to shareholders, reflected in the increase in the EPRA NAV metrics on a per share basis.

EPRA NAV METRICS (in € millions)

EPRA NRV

EPRA NTA

EPRA NDV

	4,776	4,723	4,566	4,539	3,452	3,485
	Dec	Mar	Dec	Mar	Dec	Mar
5	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:

	Properties classified in the
Investment properties held	portfolio as "Others" and may be	Development rights in
disposed on an opportunistic
for sale.	Germany
basis. The Company will further
	evaluate the probability of these
	properties to be disposed or held
	long term.

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.