Grand City Properties (GCP) has reported a 13% increase in operating profit to €495 mln last year, from €436 mln in 2016. The German residential landlord's portfolio was valued at €6.4 bn at end-2017, marking an increase of 33% during the 12-month period.
GCP is a specialist in value-add residential property opportunities in densely populated areas in Germany.
The Frankfurt-listed company said it was able to deliver double-digit growth in operational results thanks to its 'demonstrated management expertise and its strong operational platform'.
CEO Christian Windfuhr said: '2017 was a highly successful year for us in which we accomplished several notable achievements. Our portfolio of high quality assets with strong embedded potential allows us to enjoy the benefits of a growing and secure cash flow stream while also creating sustainable value by continuously materializing on the upside potential of our assets, such as further reducing vacancies and bringing rents closer to market levels as we have done in 2017. Going into 2018, we will continue to focus on internal value generation within our portfolio while continuing to realize on attractive acquisition opportunities as they arise.'
Credit rating
GCP received a further credit rating upgrade to Baa1 by Moody’s in September 2017, while the residential landlord has an S&P rating of BBB+.
In May 2017 GCP's shares moved up to the Prime Standard of the Frankfurt Stock Exchange and subsequently was added to the MDAX in September. Inclusion into key indices, which also included the Stoxx index family during the year, resulted in further capital markets visibility and a widened investor base, GCP said.
In 2017 until year-to-date the company has issued €1.8 bn, mainly targeted at proactive debt redemption management resulting in long average maturities of 8.5 years with a cost of debt of 1.6%.
GCP has established its first EMTN program, which enable it to issue debt in a variety of currencies and maturities. As a result, GCP has since issued its first foreign currency issues in Hong Kong dollars (HKD) and Swiss Francs (CHF) with currency swapped to euro until maturity, marking another milestone in its capital market exposure and increasing the investor base globally.
Aroundtown, a Frankfurt-listed owner of commercial property in Germany and the Netherlands, holds a 38% stake in GCP. Click here to read Aroundtown sees profit and portfolio balloon in 2017