Grand City Properties S.A. announces Q1 2017 results displaying continued operational and financial strength

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS

GRAND CITY PROPERTIES S.A. ANNOUNCES Q1 2017 RESULTS DISPLAYING CONTINUED OPERATIONAL AND FINANCIAL STRENGTH

- Rental and operating income increased to EUR118 million, up from EUR101 million

- Adjusted EBITDA of EUR60 million, up 11% YOY

- FFO I increase of 12% YOY to EUR42 million

- FFO I per share of EUR0.27 (+8% YOY), FFO I per share after perpetual notes attribution of EUR0.23 (+5% YOY)

- Net profit increased to EUR92 million; earnings per share increase of 9% YOY to EUR0.51

- Equity at EUR3.2 billion, increased 3% since year-end 2016; equity ratio at 50%

- EPRA NAV including perpetual notes up 3% to EUR3.3 billion from year-end 2016 and EUR21.3 per share, up from EUR20.7 per share

- EPRA NAV increase of 4% to EUR2.6 billion and EUR17 per share, up from EUR16.4 per share

- Low LTV of 37% and average cost of debt of 1.6%

- Strong coverage ratios with ICR of 6.2x and DSCR of 5.0x

- Like-for-like occupancy growth of 2.7% p.a. and like-for-like in-place rent growth of 2.1% p.a.

Luxembourg, May 15, 2017 - Grand City Properties S.A. (the 'Company', 'GCP') kicked off 2017 with a solid first quarter that witnessed growth in FFO I by 12% to EUR42 million, EUR168 million on an annualized basis, as well as the uplisting of the GCP's shares to the Prime Standard of the Frankfurt Stock Exchange - an important milestone for the Company going forward.

Uplisting to the Prime Standard of the Frankfurt Stock Exchange On May 9, 2017 GCP's shares were uplisted and commenced trading in the Prime Standard segment of the Frankfurt Stock Exchange. This most recent milestone achieved by the Company is the result of many years of successful growth driven by its business strategy and management expertise, as well as continued success accessing capital markets. GCP believes that this will further boost investor confidence, increase the transparency, visibility, and tradability of the GCP share, and provide for opportunities for inclusion in major German and European indices, including the DAX family.

Strong financial metrics, conservative financing and capital structure A key factor for the Company's high profitability is its conservative financing and capital structure, with an LTV of 37%, equity ratio of 50% and strong debt coverage ratios with an ICR of 6.2x and a DSCR of 5.0x. The debt maturity profile is strong and long-term with an average maturity of 7 years and no significant maturities in the next three years, allowing management to focus on achieving operational efficiencies and further maximizing the value of the Company's portfolio.

Christian Windfuhr, CEO of Grand City Properties: 'We are very pleased with the progressed made in the past quarter and can look towards yet another successful year in 2017. The upgrade to the Prime Standard was a very important step for Grand City on the capital markets front and we look forward to benefiting from the increased market visibility and the potential for inclusion in the DAX-family indices in the foreseeable future.'

The full Q1 2017 interim report is available on the Company's website: http://grandcityproperties.com/en/downloads.html

About the Company: Grand City Properties is a specialist in residential real estate, value-add opportunities in densely populated areas in Germany. The Company's strategy is to improve its properties through targeted modernization and intensive tenant management, and then create value by subsequently raising occupancy and rental levels. Further information: www.grandcityproperties.com

Grand City Properties (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 24, Avenue Victor Hugo, L 1750 Luxembourg and being registered with the Luxembourg trade and companies register (Registre de Commerce et des Sociétés Luxembourg) under number B 165 560. Since May 2012, Grand City Properties is listed on the Frankfurt Stock Exchange.

Contact:

Grand City Properties S.A. 24, Avenue Victor Hugo

L-1750 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.

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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.