GLOBALWORTH
CEE'S LEADING OFFICE LANDLORD
2023 Interim Results Presentation
GLOBALWORTH OVERVIEW
Green Court Complex, Bucharest
GLOBALWORTH SNAPSHOT
Snapshot
- Globalworth is a leading real estate Group with a primary focus on Poland and Romania, the two largest markets in the CEE
- We acquire, develop and manage commercial real estate assets, primarily in the office sector
- Prime locations in key cities
- Modern assets with excellent environmental credentials
- Established, blue chip and mostly international tenants
- Primarily long term, Euro-denominated,triple-net and inflation-linked leases
- Internal and multi-disciplinary management platform
- extensive experience in target markets
- +260 professionals mainly located in Warsaw and Bucharest
- Dividend policy of
- 90% of EPRA Earnings
- Strong and supportive shareholder base including the controlling consortium of CPI Property Group and Aroundtown (via Zakiono Enterprises Ltd) holding 60.7%, and Growthpoint Properties (29.4%)
Portfolio
- Present in 13 of the largest and most liquid sub- markets in Poland and Romania
- Principally focus on class "A" office and select other high-quality investments
- Strong Tenant Base mainly of large or established national and multinational corporations
22.0% | ||
49.8% | 50.2% | |
78.0% | ||
Poland | Romania | Office Other |
Select Metrics
Operating figures:
€3.1bn | 72 |
GAV | Standing Properties |
1,422.9k | €2.4bn |
Standing GLA | Green GAV |
85.5% | €202.2m |
Occupancy | An. Contracted Rent |
13.3k | 4.9yrs |
Dev't GLA | WALL |
Financial Key Figures:
42.7% | BBB - / BB+ |
LTV | Credit Rating |
3.3% | €0.85bn |
Avg. debt cost | in 2 Eurobonds |
OUR BUSINESS MODEL
Our Resources & | Proven Investment | Our Core | Creating Sustainable |
Relationships | Model | Activities | Long-term Value |
Skilled Team
In-house team of professionals with strong functional and local knowledge of their markets.
Financial Strength
Conservative financing policy, with simple debt structure and Euro- denominated assets, liabilities and
Locations
Prime locations in fast-
growing regions of Poland
and Romania
Sector
Primarily Class A office, with mixed-use and industrial a secondary focus
13 cities |
Invest in real estate opportunities
- Acquire standing properties and land
- Develop (or refurbish) new properties
- Allocate capital to deliver growth and risk-adjusted returns
Financial
Generate long-term sustainable and
attractive, risk-adjusted returns through yield and capital appreciation, allowing us to create the capacity to distribute
dividends for our shareholders.
- Rental growth
- Portfolio value appreciation
- EPRA NRV growth
- Sustainable and recurring dividend
revenues, and a supportive shareholder base.
Scale and Reputation
Trusted brand and scale creating new opportunities and business efficiencies.
Valued relationships
Longstanding partnerships with leading real estate industry specialists and credible financial institutions.
Office 78.0%
of GAV
74.7% of
Properties
Modern high-quality standing
properties with
environmental certification, or with potential to gain it
Tenants
Diversified base of large or established national and multinational corporations
100% of
standing GAV with or under certification
Manage Our
Portfolio
▪ Offer best-in-class asset |
and property |
management services |
▪ Enhance the |
attractiveness and |
performance of our |
Create
Communities
▪ Create an environment |
in which people want |
to work in and be |
associated with |
▪ Connect with the local |
communities |
▪ |
Non-Financial
Create a Group and an environment in which people want to work, do business,
and be associated with.
- Invest in sustainable and environmentally friendly buildings which help businesses grow.
- Create safe and healthy spaces where people want to work and be associated with.
- Assist and improve the communities we are part of by creating opportunities and making a positive contribution
contracted rent from multinational tenants
Lease terms | 93.4% |
contracted | |
Revenue streams backed | GLA secured |
by long-term, Euro- | with triple net |
contracts | |
denominated, triple net, | |
inflation-linked leases |
properties and satisfy |
our partners' |
requirements |
▪ Create sustainable and |
efficient properties |
reflecting what matters |
to both our occupiers |
and the people who |
work in and use our |
premises |
Improve quality of life, |
interaction and |
communication, and |
promote, simplify and |
advance business |
FOCUSED ON OPERATIONAL EXCELLENCE &
SUSTAINABLE GROWTH
Strengthened | Effectively Asset | Preserved and/ | Investment | ||
Our Position in | and Property | or Protected | Flexible | in Sustainable | Resilient |
Core Markets | Managing our | Operational | Capital | Environment | Operating |
of Operation | Real Estate | Efficiency | Structure | & Communities | Performance |
- Completed the development of Targu Mures Logistic Hub adding 18.3k sqm of space to our portfolio
- Undergoing Developments - two logistic / light-industrial facilities in Romania (13.3k sqm)
- Continuing with the refurbishment / repositioning of two mixed-use properties in Poland
- We signed contracts with 107 tenants for 181.0k sqm of commercial space at an average WALL of 6.9 years
- Standing commercial occupancy adjusted for Warta Tower in Warsaw (property sold in July), of 87.7%
-
Total annualized contracted rent up by
6.8% to €202.2m
- Most of our contracted rent from office and industrial spaces (90.5% of annualised contracted rent) and 94.1% in active leases
- Rate of collections for rents invoiced and due remained high at 99% in the first half of 2023 as a result of our high tenant quality and low single tenant dependency
- Continued to internalise property management, with 97.0% of office and mixed-use standing properties by value managed in-house
- High liquidity of €130.5 million plus €265 million in undrawn revolving credit facilities (€215m expiring in 2024 and €50m expiring in 2025), with no material debt maturity until March 2025
-
Drew the €110 million ten-year term secured debt facility for refinancing of the
Company's logistics / light industrial portfolio in
Romania (€96.5 million was made available to the Group and the difference to one of the Group's joint venture companies) - Buyback of €100 million nominal value of FY18/25 bonds by paying a cash consideration of €83.2 million
-
Fitch Ratings re-affirmed, in July 2023,
Globalworth's investment grade rating and changed the outlook to negative.
S&P revised Globalworth's credit rating to BB+ with a stable outlook
- €2.4 billion certified properties: 52 green standing certified properties, accounting for 87.1% of our standing commercial portfolio by value
- 95.8% of our office and mixed-use properties by value have a WELL Health-Safety rating, further demonstrating the quality of our portfolio
- Maintained our low-risk rating by Sustainalytics and our MSCI rating to
"A"
- Adjusted normalised
EBITDA of €66m, 4.1% higher than in H1 2022. - €102.9 million negative revaluations in our consolidated properties due to challenging macroeconomic and geopolitical environment and capex invested in our portfolio not fully reflected in valuations
- Dividend paid to shareholders of €0.15 per share in the first 6 months of 2023 (for H2- 2022). Shareholders representing 98.1% of total issued capital have elected Scrip Dividend Alternative
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Disclaimer
Globalworth Real Estate Investments Ltd. published this content on 13 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 October 2023 15:12:07 UTC.