TIDMGWI
RNS Number : 6035D
Globalworth Real Estate Inv Ltd
04 March 2022
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this information is considered to be in the public
domain.
4 March 2022
Globalworth Real Estate Investments Limited
("Globalworth" or the "Company")
Condensed Unaudited Financial Results for the year ended 31
December 2021
Globalworth, the leading office investor in Central and Eastern
Europe, announces the release of its Unaudited Consolidated
Statement of Comprehensive Income and Unaudited Consolidated
Statement of Financial Position for the year ended 31 December
2021.
The Company intends to announce its audited Financial Results
for the year ended 31 December 2021 and publish its 2021 Annual
Report towards the end of March 2022.
The Company will continue to report under International
Financial Reporting Standards as adopted by the European Union ("EU
IFRS"), as it has done since incorporation. As such, the condensed
Unaudited Financial Results have been prepared under EU IFRS, as
will the audited Financial Results for the year ended 31 December
2021 in due course.
Key Highlights for the year ended 31 December 2021
-- Total combined portfolio value up by 3.9% to EUR3.2 billion.
-- Focused development program in select high-quality projects.
o Romania; delivered a class "A" office comprising 29.2k sqm of
GLA, with 5 logistics facilities under development which are
expected to have a total GLA of 98.9k sqm
o Poland; two mixed-use properties under
refurbishment/repositioning.
-- Acquired two high-quality logistics facilities in Romania,
with a total area of 27.0k sqm, for EUR17.9 million.
-- Overall standing portfolio net increase of 2.4% to 1.3m sqm
of GLA in 66 standing buildings.
-- Leasing transactions of 285.5k sqm of commercial space at an
average WALL of 4.6 years, registering our second highest yearly
volume to date.
-- Average standing occupancy of 88.5% (88.7% including tenant
options), lower by 2.3% compared to 31 December 2020.
-- Total annualised contracted rent up by 0.2% to EUR183.7m, of
which 91.4% from office and industrial properties.
-- Rate of collections invoiced and due remained high at 99.0% for 2021.
-- Net Operating Income was lower by 8.3% compared to 2020 at EUR144.3 million.
-- EPRA earnings decreased by 28.2% to EUR59.1 million (2020:
EUR82.3 million), partially impacted by the exceptional one-off
costs associated with the cash offer for Globalworth's shares
initiated in May 2021.
-- Adjusted normalised EBITDA decreased by 8.1% to EUR130.2
million (2020: EUR141.6 million), due to lower NOI, as offset by
the positive impact of the EUR1.6 million (10.2% lower compared to
2020) savings in recurring administrative expenses(1) .
-- Net profit significantly improved to EUR47.5 million (2020:
net loss of EUR46.8 million) due to marginal revaluation losses of
EUR5.7 million in 2021 compared to the EUR116.2 million revaluation
losses in 2020.
-- Cash dividend paid to shareholders of EUR0.30 per share in 2021.
-- Preliminary EPRA Net Reinstatement Value (NRV) of EUR1.9
billion, or EUR8.66 per share, a marginal decrease from EUR8.68 at
31 December 2020 mainly due to dividends paid, lower operating
performance and non-recurring costs, offsetting the positive impact
of lower revaluation losses (by EUR110.4 million compared to
2020).
-- High liquidity of EUR418.7 million (vs EUR527.8 million at
2020 year-end) plus EUR215 million in undrawn RCF facility, and an
LTV at 40.1% at 31 December 2021 (vs 37.8% at 2020 year-end).
-- Maintained investment grade rating by all three major rating
agencies, improving our outlook to "Stable" (from "Negative) by
Moody's.
-- Sustainability:
o EUR2.7 million in 55 green certified properties
o Several green initiatives completed or in progress to improve
our footprint.
o Issued the third sustainable development report and our
inaugural Green Bond Report.
o Maintained low-risk rating by Sustainalitics and improved our
MSCI rating to "A".
o Contributed EUR1.0 million to support 18 initiatives in
Romania and Poland.
-- The consortium of CPI Property Group and Aroundtown became
the controlling shareholders of Globalworth with 60.6% of the share
capital.
(1) Recurring administrative expenses for 2021 exclude EUR11.5
million exceptional and non-recurring costs incurred in connection
with the cash offer for Globalworth shares, made by CPI Property
Group S.A. and Aroundtown SA (through Zakiono Enterprises Limited)
in May 2021 (non-recurring expenses for 2020: EUR2.3 million).
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2021
31 December 31 December
2021 2020
EUR'000 EUR'000
================================================ =========== ===========
Revenue 219,350 223,309
Operating expenses (75,098) (66,031)
================================================= =========== ===========
Net operating income 144,252 157,278
================================================= =========== ===========
Administrative expenses (25,622) (17,986)
Acquisition costs - (2,689)
Fair value loss on investment property (5,738) (116,153)
Share-based payment expense (532) (1,071)
Depreciation and amortisation expense (536) (466)
Other expenses (1,851) (2,565)
Other income 1,051 494
Foreign exchange gain/(loss) 214 (395)
Loss from fair value of financial instruments
at fair value through profit or loss (386) (47)
================================================= =========== ===========
Profit before net financing cost 110,852 16,400
================================================= =========== ===========
Finance cost (55,539) (51,140)
Finance income 1,749 2,383
Share of profit of equity-accounted investments
in joint ventures 5,010 1,897
================================================= =========== ===========
Profit/(loss) before tax 62,072 (30,460)
================================================= =========== ===========
Income tax expense (14,583) (16,335)
================================================= =========== ===========
Profit/(loss) for the year 47,489 (46,795)
================================================= =========== ===========
Other comprehensive income - -
================================================ =========== ===========
Total comprehensive income 47,489 (46,795)
================================================= =========== ===========
Profit/(loss) attributable to equity holders
of the Company 47,489 (46,795)
================================================= =========== ===========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
2021 2020
EUR'000 EUR'000
======================================= ================== ==================
ASSETS
Non-current assets
Investment property 2,966,080 3,013,014
Goodwill 12,349 12,349
Advances for investment property 3,436 4,215
Investments in joint ventures 48,908 28,358
Equity investments 12,109 10,369
Other long-term assets 2,083 2,148
Prepayments 338 432
Deferred tax asset 151 786
======================================== ================== ==================
Non-current assets 3,045,454 3,071,671
======================================== ================== ==================
Financial assets at fair value through
profit or loss 7,324 7,695
Trade and other receivables 16,208 16,025
Contract assets 6,106 2,819
Guarantees retained by tenants 885 894
Income tax receivable 117 931
Prepayments 2,104 2,227
Cash and cash equivalents 418,748 527,801
---------------------------------------- ------------------ ------------------
451,492 558,392
Investment property held for sale 130,537 -
======================================== ================== ==================
Total current assets 582,029 558,392
======================================== ================== ==================
Total assets 3,627,483 3,630,063
======================================== ================== ==================
EQUITY AND LIABILITIES
Equity
Issued share capital 1,704,476 1,704,374
Treasury shares (4,917) (12,977)
Share-based payment reserve 156 6,184
Retained earnings 38,914 57,783
======================================== ================== ==================
Total equity 1,738,629 1,755,364
Interest-bearing loans and borrowings 1,285,641 1,604,043
Deferred tax liability 150,713 144,843
Lease liabilities 18,762 27,324
Guarantees retained from contractors 2,661 2,235
Deposits from tenants 3,844 3,449
Trade and other payables 956 692
======================================== ================== ==================
Non-current liabilities 1,462,577 1,782,586
======================================== ================== ==================
Interest-bearing loans and borrowings 348,279 26,051
Guarantees retained from contractors 3,361 4,032
Trade and other payables 39,788 40,209
Contract liability 1,940 2,088
Other current financial liabilities 261 875
Provision for tenant lease incentives - 46
Current portion of lease liabilities 1,303 1,765
Deposits from tenants 16,068 16,245
Income tax payable 550 802
======================================== ================== ==================
411,550 92,113
======================================= ================== ==================
Liabilities directly associated with
the assets
held for sale 14,727 -
======================================== ================== ==================
Total current liabilities 426,277 92,113
======================================== ================== ==================
Total equity and liabilities 3,627,483 3,630,063
======================================== ================== ==================
COMBINED CONSOLIDATED PORTFOLIO SNAPSHOT
AS AT 31 DECEMBER 2021
Our real estate investments are in Poland and Romania, the two
largest markets in the CEE. As at 31 December 2021, our portfolio
was spread across 12 cities, with Poland accounting for 51.2% by
value and Romania 48.8%.
Combined Portfolio Snapshot
------------------------------------------------------------------------------------------------------------------
Poland Romania Combined Portfolio
----------------------- ---------------------- ----------------------
Standing Investments(1) 19 20 39
----------------------------------------- ----------------------- ---------------------- ----------------------
GAV(2) / Standing EUR1,613m /
GAV (EURm) EUR1,447m EUR1,540m / EUR1,419m EUR3,152m / EUR2,866m
----------------------------------------- ----------------------- ---------------------- ----------------------
Occupancy(3) 85.6% 90.7% 88.5%
(91.0% including (88.7% including
tenant options) tenant options)
----------------------------------------- ----------------------- ---------------------- ----------------------
WALL(4) 3.9 years 5.5 years 4.7 years
----------------------------------------- ----------------------- ---------------------- ----------------------
Standing GLA (k
sqm)(5) 542.1k sqm 760.2k sqm 1,302.3k sqm
----------------------------------------- ----------------------- ---------------------- ----------------------
Contracted Rent
(EURm)(6) EUR94.7m EUR89.0m EUR183.7m
----------------------------------------- ----------------------- ---------------------- ----------------------
GAV Split by Asset
Usage
----------------------------------------- ----------------------- ---------------------- ----------------------
Office 82.8% 77.4% 80.2%
Mixed-Use 17.2% 0.0% 8.8%
Industrial 0.0% 13.4% 6.6%
Others 0.0% 9.1% 4.5%
GAV Split by City
----------------------------------------- ----------------------- ---------------------- ----------------------
Bucharest - 85.6% 41.8%
Timisoara - 5.8% 2.8%
Pitesti - 3.6% 1.7%
Constanta - 3.6% 1.8%
Arad - 1.1% 0.5%
Oradea - 0.4% 0.2%
Warsaw 44.4% - 22.7%
Krakow 21.2% - 10.8%
Wroclaw 15.9% - 8.2%
Katowice 10.8% - 5.5%
Lodz 4.2% - 2.2%
Gdansk 3.5% - 1.8%
----------------------------------------- ----------------------- ---------------------- ----------------------
GAV as % of Total 51.2% 48.8% 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 31 December 2021.
3. Occupancy of standing commercial properties, and in the case
of Poland, including office rental guarantees.
4. Includes pre-let commercial standing and development assets.
WALL of standing commercial properties in Romania, Poland and
the Combined portfolio are 5.4 years, 3.9 years and 4.7 years,
respectively.
5. Including 30.3k sqm of residential assets in Romania.
6. Total rent comprises commercial (EUR174.5 million) and residential
(EUR0.9 million in Romania) standing properties, which includes
contracted rent under master lease agreement, rent in assets under
redevelopment (EUR6.8 million in Poland) and development pre-lets
(EUR1.5 million in Romania).
Annualised Commercial Portfolio Lease Expiration Profile
------------------------------------------------------------------------
Year 2022 2023 2024 2025 2026 >=2027 Total
-------------- ------- ------ ------- ----- ------ ------- ------
EUR million 18.8 16.1 30.3 17.4 20.7 79.3 182.8
-------------- ------- ------ ------- ----- ------ ------- ------
% of
total 10.3% 8.8% 16.6% 9.5% 11.3% 43.4% 100%
For further information visit www.globalworth.com or
contact:
Enquiries
Stamatis Sapkas Tel: +40 732 800 000
Deputy Chief Investment 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 31 December 2021. Approximately
95.9% 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.
For more information, please visit www.globalworth.com and
follow us on Facebook, Instagram and LinkedIn.
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
FR ZZGGFNFRGZZM
(END) Dow Jones Newswires
March 04, 2022 02:00 ET (07:00 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
