TIDMGWI
RNS Number : 6624X
Globalworth Real Estate Inv Ltd
31 August 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
31 August 2022
Globalworth Real Estate Investments Limited
("Globalworth" or the "Company")
Notice of Interim Results & Preliminary Interim Financial
Information
Globalworth announces that it intends to publish its Interim
Report and Financial Statements for the six-month period ended 30
June 2022 during the week commencing 19 September 2022. Ahead of
this publication, the Company is today providing a preliminary
release of its unaudited Consolidated Statement of Comprehensive
Income and unaudited Consolidated Statement of Financial Position
to 30 June 2022.
Key Highlights for the period ended 30 June 2022
-- Total combined portfolio value increased by 1.7% to EUR3.2
billion, mainly due to new acquisitions and net positive impact
from our developments (delivered, in progress or under
refurbishment).
o Like-for-like appraised value of standing commercial
properties marginally increased to EUR2.8 billion (0.8% higher
compared to 31 December 2021).
-- Developments focused on high-quality logistic /
light-industrial facilities in Romania (56.0k sqm) and the
refurbishment / repositioning of two mixed-use properties in Poland
aiming at increasing their class "A" office space and improving
their retail/commercial offering, in response to current market
conditions.
-- Completed the development of four high-quality logistic
facilities, adding 61.7k sqm of spaces to our portfolio.
-- Acquired our first small business units logistic facility in
Bucharest Greater Area with an area of 7.1k sqm.
-- Overall standing portfolio footprint net increase of 64.2k
sqm to 1.4m sqm of GLA in 71 standing properties.
-- Leasing transactions for 106.1k sqm of commercial space
taken-up or extended at an average WALL of 5.0 years despite
continued challenging market conditions.
-- Average standing occupancy of our combined commercial
portfolio of 88.1% (88.4% including tenant options), marginally
lower to year-end 2021 (88.5% or 88.7% including tenant
options).
o Average occupancy impacted by the addition of four newly
completed industrial properties assets (2 in lease up phase) with
average occupancy of 61.8%, offsetting the higher occupancy
observed in the smaller business units logistics facility acquired
with occupancy of 98.0%.
o Like-for-like occupancy marginally increased by 0.9% despite
the challenging market conditions and the WARTA Tower now
effectively vacant.
-- Total annualised contracted rent increased by 2.5% to
EUR188.4 million compared to year end 2021, of which:
o 92.3% is contracted in office and industrial properties
o 95.9% is in active leases, with the remainder 4.1% of
contracted annualised rent to commence in the future.
-- Like-for-like annualised commercial contracted rents in our
standing commercial portfolio increased by 2.1% to EUR178.1 million
at the end of the first half of 2022, mainly as effect of rent
indexation.
-- Challenging market conditions and war in the Ukraine
impacting the economic and business environment negatively.
-- S&P and Fitch re-affirmed the investment grade rating
following their 2021 year end review of Globalworth, with Moody's
maintaining and stabilising their rating outlook of the Company in
Q4 2021.
-- Repaid on its maturity date the outstanding principal amount
of EUR323 million of the inaugural GWI 17/22 bond, resulting in the
Company having no material debt maturing until March 2025.
-- Entered into a 6-year term loan agreement for EUR85 million
with the International Finance Corporation ("IFC"), which is a
member of the World Bank.
-- Net Operating Income was lower by 3.2% compared to H1-2021 at EUR69.9 million.
-- EPRA earnings increased by 18.2% to EUR34.3 million (H1-2021:
EUR29.0 million), partially impacted by the better operating
results due to lower administrative costs and lower income tax
expenses (excluding deferred tax expense on investment property)
compared to the same period in 2021.
-- Adjusted normalised EBITDA (including share of minority
interests) decreased by 2.1% to EUR63.4 million (H1-2021: EUR64.8
million), due to a decline in NOI partially offset by lower
administrative and other expenses .
-- Profit attributable to equity holders of the Company
significantly improved to EUR32.6 million (H1-2021: EUR12.5
million) due to fair value gain on investment property, lower
administrative expenses, increase in the share of profit of
equity-accounted investments in joint ventures which were partially
net off by higher operating expenses.
-- Interim cash dividend paid to shareholders of EUR0.13 per share in H1-2022.
-- Preliminary EPRA Net Reinstatement Value (NRV) of EUR1.9
billion, or EUR8.72 per share, a marginal increase (+0.6% per
share) from EUR8.66 at 31 December 2021 mainly due to dividends
paid and lower operating performance offsetting the positive impact
from significantly lower non-recurring costs in H1-22, positive
revaluation gains.
-- IFRS Earnings per share of 15 cents in H1-2022 (H1-2021: 6 cents).
-- Maintaining high levels of liquidity even after the GWI 17/22
bond repayment at EUR185 million plus EUR155 million in undrawn RCF
facility, and an LTV at 41.0% at 30 June 2022 (vs 40.1% at 2021
year-end).
-- Sustainability:
o EUR2.8bn in 57 green certified properties in our
portfolio;
o 23 properties were certified or recertified with BREEAM Very
Good or higher certifications in the period;
o Issued the fourth sustainable development report for the
Group, and our second Green Bond Report; and
o Maintained our "low-risk" rating by Sustainalytics and "A"
rating by MSCI.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 20 22
30 June 30 June
2022 2021
Unaudited Unaudited
EUR'000 EUR'000
========================================================================================== ========== ==========
Revenue 116,551 108,110
Operating expenses (46,696) (35,957)
========================================================================================== ========== ==========
Net operating income 69,855 72,153
========================================================================================== ========== ==========
Administrative expenses (6,484) (9,323)
Acquisition costs (7) -
Fair value gain/(loss) on investment property 7,019 (14,703)
Share-based payment expense - (432)
Depreciation and amortisation expense (309) (259)
Other expenses (720) (795)
Other income 295 476
Foreign exchange gain/(loss) 307 (50)
Gain/(loss) from fair value of financial instruments at fair value through profit or loss 73 (243)
========================================================================================== ========== ==========
Profit before net financing cost 70,029 46,824
------------------------------------------------------------------------------------------ ---------- ----------
Finance cost (27,547) (27,523)
Finance income 1,179 839
Share of profit/(loss) of equity-accounted investments in joint ventures 2,012 (1,273)
------------------------------------------------------------------------------------------ ---------- ----------
Profit before tax 45,673 18,867
========================================================================================== ========== ==========
Income tax expense (12,245) (6,333)
========================================================================================== ========== ==========
Profit for the period 33,428 12,534
------------------------------------------------------------------------------------------ ---------- ----------
Items that will not be reclassified to profit or loss
Gain on equity instruments designated at fair value through other comprehensive income 36 -
------------------------------------------------------------------------------------------ ---------- ----------
Other comprehensive income for the period, net of tax 36 -
------------------------------------------------------------------------------------------ ---------- ----------
Total comprehensive income for the period 33,464 12,534
------------------------------------------------------------------------------------------ ---------- ----------
Profit attributable to: 33,428 12,534
------------------------------------------------------------------------------------------ ---------- ----------
* ordinary equity holders of the Company 32,606 12,534
* non-controlling interests 822 -
------------------------------------------------------------------------------------------ ---------- ----------
Total comprehensive income attributable to: 33,464 12,534
------------------------------------------------------------------------------------------ ---------- ----------
* ordinary equity holders of the Company 32,642 12,534
* non-controlling interests 822 -
------------------------------------------------------------------------------------------ ---------- ----------
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
AS AT 30 JUNE 20 22
30 June
2022 31 December 2021
Unaudited Audited
EUR'000 EUR'000
============================================================== =========== ================
ASSETS
Investment property 3,005,689 2,966,080
Goodwill 12,349 12,349
Advances for investment property 3,483 3,436
Investments in joint-ventures 66,155 48,908
Equity investments 12,628 12,109
Other long-term assets 1,927 2,083
Prepayments 460 338
Deferred tax asset 17 151
============================================================== =========== ================
Non-current assets 3,102,708 3,045,454
============================================================== =========== ================
Financial assets at fair value through profit or loss 7,397 7,324
Trade and other receivables 17,951 16,208
Contract assets 6,138 6,106
Guarantees retained by tenants 47 885
Income tax receivable 1,769 117
Prepayments 4,591 2,104
Cash and cash equivalents 184,709 418,748
============================================================== =========== ================
222,602 451,492
============================================================== =========== ================
Investment property held for sale 126,926 130,537
============================================================== =========== ================
Total current assets 349,528 582,029
============================================================== =========== ================
Total assets 3,452,236 3,627,483
============================================================== =========== ================
EQUITY AND LIABILITIES
Issued share capital 1,704,476 1,704,476
Treasury shares (4,889) (4,917)
Share-based payment reserve 156 156
Retained earnings 42,749 38,914
============================================================== =========== ================
Equity attributable to ordinary equity holders of the Company 1,742,492 1,738,629
Non-controlling interests 827 __--
Total equity 1,743,319 1,738,629
Interest-bearing loans and borrowings 1,431,659 1,285,641
Deferred tax liability 163,731 150,713
Lease liabilities 17,834 18,762
Deposits from tenants 4,050 3,844
Guarantees retained from contractors 1,628 2,661
Trade and other payables 956 956
============================================================== =========== ================
Non-current liabilities 1,619,858 1,462,577
============================================================== =========== ================
Interest-bearing loans and borrowings 18,623 348,279
Guarantees retained from contractors 3,737 3,361
Trade and other payables 32,306 39,788
Contract liability 1,729 1,940
Other current financial liabilities 47 261
Current portion of lease liabilities 1,426 1,303
Deposits from tenants 16,603 16,068
Income tax payable 702 550
============================================================== =========== ================
75,173 411,550
============================================================== =========== ================
Liabilities directly associated with the assets held for sale 13,886 14,727
============================================================== =========== ================
Total current liabilities 89,059 426,277
============================================================== =========== ================
Total equity and liabilities 3,452,236 3,627,483
============================================================== =========== ================
COMBINED CONSOLIDATED PORTFOLIO SNAPSHOT
AS AT 30 JUNE 2022
Our real estate investments are in Poland and Romania, the two
largest markets in the CEE. As at 30 June 2022, our portfolio was
spread across 12 cities, with Poland accounting for 50.8% by value
and Romania 49.2%.
Combined Portfolio Snapshot (as at 30 June 2022)
-------------------------------------------------------------------------------------------------
Poland Romania Combined Portfolio
---------------------- ---------------------- ----------------------
Standing Investments(1) 19 21 40
------------------------- ---------------------- ---------------------- ----------------------
GAV(2) / Standing
GAV (EURm) EUR1,628m / EUR1,459m EUR1,578m / EUR1,470m EUR3,206m / EUR2,929m
------------------------- ---------------------- ---------------------- ----------------------
Occupancy 84.0% 90.9% 88.1%
(91.3% incl. (88.4% incl.
tenant options) tenant options)
------------------------- ---------------------- ---------------------- ----------------------
WALL(3) 3.8 years 5.3 years 4.6 years
------------------------- ---------------------- ---------------------- ----------------------
Standing GLA (k 542.1k sqm 824.4k sqm 1,366.5k sqm
sqm)(4)
------------------------- ---------------------- ---------------------- ----------------------
Contracted Rent
(EURm)(5) EUR94.9m EUR93.5m EUR188.4m
------------------------- ---------------------- ---------------------- ----------------------
GAV Split by Asset
Usage
------------------------- ---------------------- ---------------------- ----------------------
Office 82.7% 76.2% 79.5%
Mixed-Use 17.3% 0.0% 8.8%
Industrial 0.0% 15.7% 7.7%
Others 0.0% 8.1% 4.0%
GAV Split by City
------------------------- ---------------------- ---------------------- ----------------------
Bucharest 0.0% 84.7% 41.7%
Timisoara 0.0% 6.2% 3.1%
Pitesti 0.0% 3.8% 1.9%
Constanta 0.0% 3.9% 1.9%
Arad 0.0% 1.1% 0.5%
Oradea 0.0% 0.4% 0.2%
Warsaw 44.2% 0.0% 22.5%
Krakow 21.1% 0.0% 10.7%
Wroclaw 16.0% 0.0% 8.1%
Katowice 10.9% 0.0% 5.5%
Lodz 4.2% 0.0% 2.1%
Gdansk 3.5% 0.0% 1.8%
------------------------- ---------------------- ---------------------- ----------------------
GAV as % of Total 50.8% 49.2% 100.0%
1. Standing Investments representing income producing properties.
One investment can comprise multiple buildings. e.g. Green Court
Complex comprises three buildings or one investment.
2. Includes all property assets, land and development projects
valued at 30 June 2022.
3. Includes pre-let commercial standing and development/re-development
assets. WALL of standing commercial properties in Romania, Poland
and the Combined portfolio are 5.3 years, 3.8 years and 4.5
years, respectively.
4. Including 25.7k sqm of residential assets in Romania.
5. Total rent comprises commercial (EUR180.8 million) and residential
(EUR0.9 million in Romania) standing properties, rent in assets
under refurbishment (EUR6.5 million in Poland) and development
pre-lets (EUR0.2 million in Romania).
For further information visit www.globalworth.com or
contact:
Enquiries
Stamatis Sapkas
Tel: +40 732 800 000
Chief Financial Officer
Panmure Gordon (Nominated Adviser and Broker) Tel: +44 20 7886
2500
Alina Vaskina
About Globalworth / Note to Editors:
Globalworth is a listed real estate company active in Central
and Eastern Europe, quoted on the AIM-segment of the London Stock
Exchange. It has become the pre-eminent office investor in the CEE
real estate market through its market-leading positions both in
Poland and Romania. Globalworth acquires, develops and directly
manages high-quality office and industrial real estate assets in
prime locations, generating rental income from high quality tenants
from around the globe. Managed by over 240 professionals across
Cyprus, Guernsey, Poland and Romania, a combined value of its
portfolio is EUR3.2 billion, as at 30 June 2022. Approximately
96.3% of the portfolio is in income-producing assets, predominately
in the office sector, and leased to a diversified array of over 660
national and multinational corporates. In Poland Globalworth is
present in Warsaw, Wroclaw, Lodz, Krakow, Gdansk and Katowice,
while in Romania its assets span Bucharest, Timisoara, Constanta,
Pitesti, Arad and Oradea.
IMPORTANT NOTICE: This announcement has been prepared for the
purposes of complying with the applicable laws and regulations of
the United Kingdom and the information disclosed may not be the
same as that which would have been disclosed if this announcement
had been prepared in accordance with the laws and regulations of
any jurisdiction outside of the United Kingdom. This announcement
may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may
be identified by the use of forward-looking terminology, including
the terms "targets", "believes", "estimates", "plans", "projects",
"anticipates", "expects", "intends", "may", "will" or "should" or,
in each case, their negative or other variations or comparable
terminology, or by discussions of strategy, plans, objectives,
goals, future events or intentions. These forward looking
statements include all matters that are not historical facts and
involve predictions. Forward-looking statements may and often do
differ materially from actual results. Any forward-looking
statements reflect the Company's current view with respect to
future events and are subject to risks relating to future events
and other risks, uncertainties and assumptions relating to the
Company's business, results of operations, financial position,
liquidity, prospects, growth or strategies and the industry in
which it operates. Forward-looking statements speak only as of the
date they are made and cannot be relied upon as a guide to future
performance. Save as required by law or regulation, the Company
disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements in this
announcement that may occur due to any change in its expectations
or to reflect events or circumstances after the date of this
announcement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCZZGFRNGGGZZM
(END) Dow Jones Newswires
August 31, 2022 02:01 ET (06:01 GMT)
Globalworth Real Estate ... (LSE:GWI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Globalworth Real Estate ... (LSE:GWI)
Historical Stock Chart
From Jul 2023 to Jul 2024
