Grand City Properties S.A. announces Q1 2026 results with robust operational performance and reinstates dividends after 3 years

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 Q1 2026 RESULTS WITH ROBUST OPERATIONAL PERFORMANCE AND REINSTATES DIVIDENDS AFTER 3 YEARS

• Net rental income in Q1 2026 amounted to €109 million, increasing by 2% compared to €106 million in Q1 2025.
• Strong like-for-like rental growth continued at 3.5%, mainly from in-place rental growth. Vacancy remains low at 3.6%.
• Adjusted EBITDA of €86 million in Q1 2026, higher by 1% from €85 million in Q1 2025, despite net disposals year over year.
• FFO I of €46 million in Q1 2026, lower by 4% compared to €48 million in Q1 2025, as a result of higher finance expenses offsetting adjusted EBITDA growth. Accordingly, FFO I per share amounted to €0.26 per share in Q1 2026, also lower by 4% compared to Q1 2025.
• Profit for the period amounted to €42 million, with basic earnings per share of €0.17, GCP did not revalue its portfolio in Q1 2026.
• Maintain strong liquidity position with €1.6 billion in cash and liquid assets as of March 2026, representing 36% of total debt.
• Conservative financial profile maintained, with a low LTV ratio of 32%, high coverage ratios with an ICR ratio of 4.8x, and €6.4 billion in unencumbered assets (71% of total portfolio value)
• EPRA NTA amounted to €4.5 billion, or €25.7 per share, as of March 2026, slightly up compared to €25.6 in December 2025.
• FY 2026 guidance confirmed.
• Dividend for the year 2025 proposed at €0.30 per share, for financial year 2026 onward, dividend policy to be adjusted to 50% of FFO I per share.
• After the reporting period, the Company successfully issued €600 million perpetual notes, with proceeds used to refinance the perpetual notes with a first call date in 2026. Following this transaction, GCP has fully refinanced its perpetual notes stack, with the next reset events occurring only in 2031.

Luxembourg, May 12, 2026 – Grand City Properties S.A. (“GCP” or the “Company”) announces its results for Q1 2026, underpinned by continued strong operational performance. GCP reported net rental income of €109 million, a 2% increase year-on-year, driven by strong operational performance, reflected in solid like-for-like rental growth of 3.5%, which more than offset the impact of net disposals. Adjusted EBITDA increased by 1% to €86 million, driven by higher net rental income, partially offset by slightly higher operating expenses. FFO I amounted to €46 million, impacted by higher finance expenses, partially offset by higher adjusted EBITDA and a lower perpetual note attribution in the current period. FFO I per share amounted to €0.26. The Company confirms its FFO I guidance for full year 2026 in the range of €175 million to €185 million.

In 2026 YTD, GCP continued to execute on its disciplined capital recycling strategy. The Company completed disposals, comprising primarily properties in non-core locations and condominiums, with a total volume of €13 million. These disposals were completed at a slight premium of 1%. After the reporting period, the Company closed €75 million of acquisitions in Germany which were signed during Q1 2026, and closed half of the acquisition of over €100 million of new built properties in London, with the remainder expected to be completed towards the end of Q3 2026. 

As of March 2026, the Company’s liquidity position stood at €1.6 billion, representing 36% of total debt. The Company’s conservative financial profile was further supported by a low LTV of 32%, slightly higher compared to December 2025 mainly as a result of the repayment of ca. €40 million of perpetual notes in the beginning of 2026, connected to the transaction executed in December 2025. GCP’s interest coverage ratio was 4.8x, and the Company maintained €6.4 billion in unencumbered assets, representing 71% of the total portfolio, positioning the Company well to capitalise on potential growth opportunities. The average cost of debt was 2.1%, with an average debt maturity of 4.0 years.

After the reporting period, the Company issued €600 million perpetual notes bearing a coupon of 5.25%. The proceeds were used to refinance the Company’s outstanding €602.7 million perpetual notes with a first call date in 2026. Following completion of the transaction, the Company has refinanced its full perpetual notes stack and has no further perpetual note reset dates until 2031. The issuance was in-line with guidance expectation, and thus the higher perpetual notes coupons resulting from the transaction going forward do not impact the FFO I guidance.

Based on the strong financial position and stable operating results of the Company, the Board of Directors of GCP recommends the reinstatement of a dividend of €0.30 per share for the year 2025. In addition, the dividend policy has been adjusted to 50% of FFO I, providing an attractive dividend yield for shareholders, while maintaining healthy headroom to fund growth opportunities.

Refael Zamir, CEO of Grand City Properties: “We are pleased to announce our results for Q1 2026, which reflects the strength of our operating platform and the resilience of our portfolio. Through disciplined capital allocation and prudent balance sheet management, we have strengthened our financial position, enabling us to recommend the reinstatement of a dividend while maintaining flexibility to pursue value-accretive growth opportunities.”

Financial Statements for Q1 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 30-34 of the financial statements for Q1 2026, which you can find on the website under investor relations > publications > financial reports or follow this link:

https://www.grandcityproperties.com/grandcityproperties.com/Data_Objects/Downloads/Financial_Reports/Q1_2026_Financials/GCP_Q1_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

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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.