Earnings release
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THIS ANNOUNCEMENT IS NOT FOR RELEASE , PUBLICATION OR DISTRIBUTION , DIRECTLY OR INDIRECTLY , IN OR INTO THE UNITED STATES , CANADA , AUSTRALIA , 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 H1 2026 RESULTS WITH ROBUST OPERATIONS CONFIRMING FY 2026 GUIDANCE • Net rental income increased by 3 % year - on - year to € 219 million in H1 2026 , compared with € 213 million in H1 2025 , supported by portfolio - wide rental growth . • Like - for - like rental growth remained solid at 3.3 % as of June 2026 , while vacancy remained low at 3.7 % . • Adjusted EBITDA increased by 3 % to € 174 million , compared with € 169 million in the prior- year period . • FFO I amounted to € 91 million , a decrease of 4 % compared with € 95 million in H1 2025. FFO I per share amounted to € 0.52 , compared with € 0.54 in the prior - year period . • The Company completed a full external revaluation in H1 2026 which resulted in a like - for- like value increase of 0.2 % excluding capex and 0.6 % including capex . • Net profit amounted to € 129 million , with basic earnings per share of € 0.49 , compared with € 210 million and € 0.92 in H1 2025 , with the year - on - year movement primarily reflecting the lower revaluation contribution . • The Company maintained a robust liquidity position of € 1.4 billion in cash and liquid assets as of June 2026 , representing 31 % of total debt . • The Company maintained a conservative balance sheet , with an LTV of 33 % , an interest coverage ratio of 4.7x , and € 6.6 billion of unencumbered assets , which represent 71 % of portfolio value . • • EPRA NTA amounted to € 4.6 billion , or € 25.8 per share , as of June 2026 , increasing from € 25.6 per share at December 2025 . In H1 2026 , GCP refinanced its full perpetual notes stack , issuing € 600 million perpetual notes at a 5.25 % coupon , resulting in no further reset dates before 2031 . Reinstatement of dividend of € 0.30 per share for 2025 was approved at the Annual General Meeting on 24 June 2026 and paid after the reporting period , on 6 July 2026 . Luxembourg , August 12 , 2026 - Grand City Properties S.A. ( " GCP " or the " Company " ) announces its results for the first half of 2026. Net rental income increased by 3 % year - on - year to € 219 million , driven by sustained like - for - like rental growth of 3.3 % , which more than offset the impact of net disposals completed in H1 2026. Adjusted EBITDA increased by 3 % to € 174 million , as higher rental income was achieved against a broadly stable net operating cost . FFO I amounted to € 91 million , GCP
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a decrease of 4% year-on-year, primarily as a result of higher finance expenses, a higher perpetual notes attribution and increased minority contributions. On a per-share basis, FFO I amounted to €0.52 compared to €0.54 in the prior-year period. Following a full external revaluation conducted in the first half, GCP recorded a property revaluation and capital gains result of €56 million. On a like-for-like basis, values increased by 0.2% excluding capex and by 0.6% including capex. Net profit amounted to €129 million, compared with €210 million in the prior-year period, with the decrease primarily attributable to the lower revaluation result and higher finance expenses, partially offset by the portfolio's continued operational performance. Basic earnings per share amounted to €0.49. The Company maintained a disciplined approach to capital recycling during the period. Disposals of €31 million, comprising mainly condominiums and properties in non-core locations, were completed at a 13% premium to book value and a 34% margin over total cost including capex. In parallel, GCP closed €75 million of residential acquisitions in Germany at an average multiple of 14x and completed part of a new-build acquisition in London for over €50 million, with the remaining approximately €50 million completed after the reporting period. The Company's financial position remained solid. Cash and liquid assets of €1.4 billion as of June 2026 represented 31% of total debt, and the conservative profile was reflected in an LTV of 33%, higher than the 31% recorded at December 2025 as a result of acquisitions and investments during the period, partially offset by positive revaluations and operational cash flow. The Company’s interest cover remained strong at 4.7x, and unencumbered assets amounted to €6.6 billion, representing 71% of portfolio value. The average cost of debt was 2.1%, with a hedge ratio of 95% and an average debt maturity of 3.8 years, extending to 5.2 years excluding debt covered by cash and liquid assets. In H1 2026, the Company refinanced its remaining 2026 perpetual notes in full, issuing €600 million of new perpetual notes at a 5.25% coupon and concurrently redeeming €603 million of notes bearing a 1.5% coupon. Following the transaction, GCP has no further perpetual notes reset dates until 2031. Reflecting the Company's sound financial position and stable operating results, a dividend of €0.30 per share for the 2025 financial year was approved at the Annual General Meeting on 24 June 2026 and paid on 6 July 2026, amounting to approximately €53 million gross. The dividend policy has been set at 50% of FFO I from financial year 2026, providing shareholders with an attractive yield while maintaining headroom to fund growth opportunities. Refael Zamir, CEO of Grand City Properties: “We are pleased to report a solid first half of 2026. Having refinanced our perpetual notes in full and resumed our dividend, we enter the second half on a strong financial footing, while keeping the conservative approach that continues to serve us well as we continue executing our accretive capital recycling strategy of selling lower yielding properties and buying higher yielding ones at a higher quality which will drive rental income.” Financial Statements for H1 2026 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 pages 32-36 of the financial statements for H1 2026, which you can find on the website under investor relations > publications > financial reports or follow this link:
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https://www.grandcityproperties.com/grandcityproperties.com/Data_Objects/Downloads/Finan cial_Reports/H1_2026_Financials/GCP_Q2_2026.pdf About the Company The Company is a specialist in residential real estate, value-add opportunities in densely populated areas primarily in Germany and London. The Company’s strategy is to improve its properties by 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 37, Boulevard Joseph II, L-1840 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. 37, Boulevard Joseph II, L-1840 Luxembourg T: +352 28 77 87 86 E: info@grandcity.lu www.grandcityproperties.com Investor Relations Team: Grand City Properties S.A. E: gcp-ir@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
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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 THE COMPANY. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.