Following the publication of its 2020 annual results, Grand City Properties S.A. announced its share buy-back programme for 2021. Under the programme, the company intends to repurchase up to 10 million of its own shares at a maximum value of €200 million. The shares will be purchased in the open market through the Xetra trading system of the Frankfurt Stock Exchange.
The program follows the public share purchase tender which the company initiated in January 2021 to repurchased 3,370,708 shares. The tender was successfully concluded a month later. Both the share buy-back programme and the public tender offer are being carried out under the authorization of the Annual General Meeting of the company which was held on 24 June 2020. Under this authorization, Grand City Properties was permitted to buy back up to 20% of the aggregate nominal amount of its issued share capital.
Grand City Properties sees the reinvestment into its own shares as a strong accretive investment, which provides a high and stable return on a per share basis. The share buyback has been launched on the back of GCP’s robust operational and financial performance for the year 2020 and increasing EPRA NTA per share which is executed in addition to regular acquisitions.
GCP’s recent disposals are at a premium to book value, while the share is traded at a discount to its EPRA NTA, which further highlights the disconnection between the value of the underlying business and the capital markets. The real estate conglomerate has decided to continue to use this imbalance as an opportunity to create further long-term shareholder value and accretive per share growth through the continued buyback of its shares at discount. The share buyback is further supported by the robust equity base and the high liquidity of the company, which stood at €1.7 billion as of the end of 2020, and is in-line with GCP’s conservative financial policy.
Grand City Properties S.A. (symbol: GYC), is traded on the Prime Standard of the Frankfurt Stock Exchange, and is a specialist in residential real estate, as well as value-add opportunities in densely populated areas primarily in Germany.
Grand City Properties activity was founded by property tycoon Yakir Gabay in the year 2004 to invest and manage residential properties throughout the larger metropolitan cities and developed areas of Germany, London, and the Netherlands.
Following the acquisition of over 65,000 properties, and successful management team’s ability to constantly appreciate property value, GCP has since become known as one of the largest residential landlords in Europe.
Grand City Properties’ largest shareholder is Aroundtown SA, the largest publicly listed commercial real estate company in Germany (also developed by Mr. Yakir Gabay), which strategically holds a 40% stake in GCP.
