Grand City Properties S.A. announces a good start into 2019 driven by operational profitability

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (THE 'UNITED STATES') OR IN OR INTO OR TO ANY PERSON RESIDENT OR LOCATED IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO PUBLISH OR DISTRIBUTE THIS DOCUMENT.

GRAND CITY PROPERTIES S.A. ANNOUNCES A GOOD START INTO 2019 DRIVEN BY OPERATIONAL PROFITABILITY

- Rental and operating income was up 5% YOY to EUR139 million as compared to the EUR132 million recorded in Q1 2018.

- Adjusted EBITDA generated during the first quarter of 2019 was EUR73 million, higher by 7% compared to Q1 2018.

- Sustainable operational profitability evident with FFO I growing 6% to EUR53 million for the first three months of 2019 YOY.

- FFO I per share in Q1 2019 reached EUR0.32, a 7% growth YOY. FFO I per share after perpetual attribution was EUR0.27, 4% growth YOY.

- EPRA NAV expanded to EUR3.9 billion and to EUR23.4 on a per share basis as of the end of March 2019, 4% growth from year-end 2018.

- EPRA NAV including perpetual notes increased by 3% to EUR4.9 billion and increased to EUR29.5 per share.

- Total Equity was EUR4.7 billion as at the end of March 2019, resulting in a stable and secure equity ratio of 53%.

- Solid financial platform further reinforced by a longer average debt maturity of 8.7 years and a lower average cost of debt of 1.5%.

- Conservative financial structure retained with a low LTV of 35%, robust ICR of 6.2x and a significant unencumbered assets ratio of 76%, translating to EUR5.8 billion in value.

- Internal growth enabling top-line development evident in the robust like-for-like rental growth of 3.9% (3.6% coming from in-place rent increases and 0.3% from occupancy increases).

- Guidance for 2019 confirmed

Luxembourg, May 20, 2019 - Grand City Properties S.A. ('GCP' or the 'Company') had a strong start to the year with the top-line growing 5% from the corresponding period in 2018, while operational profitability continued to progress with Adjusted EBITDA growing 7% YOY to EUR73 million and the FFO I increased to EUR53 million for the first quarter of 2019, up 6% from the comparable period in 2018. GCP continued to display strong organic growth with robust like-for-like net rent increases of 3.9% during the quarter, with 3.6% coming from in-place rent increases.

The Company disposed of assets worth over EUR120 million at a substantial profit margin of 160% over total cost, reflecting a 10% premium on its last appraised book values. During the quarter, GCP also acquired properties for approx. EUR200 million, mainly in London. Overall, the Company continued to witness an improving asset quality with the value per square meter increasing to EUR1,314 and the average in-place rent growing 7% YOY to EUR6.15/sqm as of the end of March 2019.

During the first three months of 2019, GCP prepaid over EUR200 million of high interest bearing debt with short maturities while also issuing approx. EUR130 million of straight bonds with long maturities and low coupon rates. As a result of these debt optimizing measures, GCP achieved a longer average debt maturity period of 8.7 years while reducing its average cost of debt to 1.5% as of March 2019. In addition, GCP's sources of liquidity were further reinforced with the unencumbered assets ratio rising 11 percentage points to 76% and EUR5.8 billion in value.

Christian Windfuhr, CEO of Grand City Properties: 'We have begun 2019 with a strong start and a confidence in our stride. With a robust financial platform to support our strong portfolio with sufficient growth potential, we confirm our 2019 guidance and delivering on our goals for the year.'

The financial statements for Q1 2019 are available on the Company's website: https://www.grandcityproperties.com/investor-relations/publications/financial-reports/

For definitions of the alternative performance measures please see the relevant section in the pages 44-47 of the financial statements for Q1 2019 which you can find on the website under investor relations > publications > financial reports or follow this link: https://www.grandcityproperties.com/fileadmin/user_upload/03_investor_relations/Downloads/2019/GCP_Q1_2019.pdf

About the Company The Company is a specialist in residential real estate, value-add opportunities in densely populated areas primarily in Germany. The Company's strategy is to improve its properties property repositioning and intensive tenant management, and then create value by subsequently raising occupancy and rental levels. Further information: www.grandcityproperties.com Grand City Properties S.A. (ISIN: LU0775917882) is a public limited liability company (société anonyme) incorporated under the laws of the Grand Duchy of Luxembourg, having its registered office at 1, Avenue du Bois, L-1251 Luxembourg, Grand Duchy of Luxembourg and being registered with the Luxembourg trade and companies register (Registre de Commerce et des Sociétés Luxembourg) under number B 165 560. The shares of the Company are listed on the Prime Standard segment of Frankfurt Stock Exchange.

Contact: Grand City Properties S.A. 1, Avenue du Bois L-1251 Luxemburg T: +352 28 77 87 86 E: info@grandcity.lu www.grandcityproperties.com Press Contact: Katrin Petersen Grand City Properties S.A. T: +49 (30) 374-381 5218 E: katrin.petersen@grandcity.lu Disclaimer: THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.

THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE 'SECURITIES ACT'), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFERING OF THE SECURITIES IN THE UNITED STATES.

THIS ANNOUNCEMENT IS DIRECTED AT AND IS ONLY BEING DISTRIBUTED IN THE UNITED KINGDOM TO (I) PERSONS WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE 'ORDER'), (II) HIGH NET WORTH ENTITIES, AND OTHER PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED FALLING WITHIN ARTICLE 49 OF THE ORDER, AND (III) PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS 'RELEVANT PERSONS'). THIS COMMUNICATION MUST NOT BE READ, ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS.

IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA ('EEA'), THIS ANNOUNCEMENT AND ANY OFFER IF MADE SUBSEQUENTLY IS DIRECTED ONLY AT PERSONS WHO ARE 'QUALIFIED INVESTORS' WITHIN THE MEANING OF ARTICLE 2(1)(E) OF DIRECTIVE 2003/71/EC, AS AMENDED (THE 'PROSPECTUS DIRECTIVE') ('QUALIFIED INVESTORS'). ANY PERSON IN THE EEA WHO ACQUIRES THE SECURITIES IN ANY OFFER (AN 'INVESTOR') OR TO WHOM ANY OFFER OF THE SECURITIES IS MADE WILL BE DEEMED TO HAVE REPRESENTED AND AGREED THAT IT IS A QUALIFIED INVESTOR. ANY INVESTOR WILL ALSO BE DEEMED TO HAVE REPRESENTED AND AGREED THAT ANY SECURITIES ACQUIRED BY IT IN THE OFFER HAVE NOT BEEN ACQUIRED ON BEHALF OF PERSONS IN THE EEA OTHER THAN QUALIFIED INVESTORS, NOR HAVE THE SECURITIES BEEN ACQUIRED WITH A VIEW TO THEIR OFFER OR RESALE IN THE EEA TO PERSONS WHERE THIS WOULD RESULT IN A REQUIREMENT FOR PUBLICATION BY THE COMPANY OR ANY OF THE MANAGERS OF A PROSPECTUS PURSUANT TO ARTICLE 3 OF THE PROSPECTUS DIRECTIVE.

THIS ANNOUNCEMENT MAY CONTAIN PROJECTIONS OR ESTIMATES RELATING TO PLANS AND OBJECTIVES RELATING TO OUR FUTURE OPERATIONS, PRODUCTS, OR SERVICES, FUTURE FINANCIAL RESULTS, OR ASSUMPTIONS UNDERLYING OR RELATING TO ANY SUCH STATEMENTS, EACH OF WHICH CONSTITUTES A FORWARD-LOOKING STATEMENT SUBJECT TO RISKS AND UNCERTAINTIES, MANY OF WHICH ARE BEYOND THE CONTROL OF GRAND CITY PROPERTIES S.A. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.