REG - Globalworth Real Est - Condensed Unaudited Results for FY 31 Dec 2022
03/03/2023 07:01
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RNS Number : 7320R Globalworth Real Estate Inv Ltd 03 March 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
3 March 2023
Globalworth Real Estate Investments Limited
("Globalworth" or the "Company")
Condensed Unaudited Financial Results for the year ended 31 December 2022
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 2022.
The Company intends to announce its audited Financial Results for the year
ended 31 December 2022 and publish its 2022 Annual Report towards the end of
March 2023.
Key Highlights for the year ended 31 December 2022
· Total combined portfolio value remained effectively unchanged at
€3.2 billion (0.2% higher compared to 31 December 2021).
o Combined standing commercial properties at year-end were appraised at
€2.9 billion. Like-for-like properties marginally lower at €2.8 billion
(1.3% decrease compared to 31 December 2021), with new facilities acquired or
completed in 2022 adding €75.5 million in standing commercial portfolio
value.
· Focused development program in select high-quality projects.
o Romania; delivered 6 new logistics facilities offering 104.4k sqm of GLA,
with 3 logistics facilities under development which are expected to have a
total GLA of 30.0k sqm.
o Poland; two mixed-use properties under refurbishment/repositioning.
· Acquired the first small business units logistic facility in
Romania (Bucharest), with a total area of 7.1k sqm.
· Overall standing portfolio footprint net increase of 103.3k sqm
(+7.9% compared to 31 December 2021) to 1.4m sqm of GLA in 71 standing
properties.
· Leasing transactions of 206.9k sqm of commercial space at an
average WALL of 4.4 years, despite continued challenging market conditions.
· Average standing occupancy of 85.6% (85.9% including tenant
options), 2.9% lower compared to 31 December 2021.
o Addition of 7 properties with an average occupancy of 54.2%, some of which
are in the lease-up phase, negatively impacted the overall combined standing
occupancy.
o Like-for-like standing occupancy adjusted for Warta Tower in Warsaw
(property held for sale and now effectively vacant), of 90.5% (+0.2% compared
to 31 December 2021).
· Total annualised contracted rent up by 3.0% to €189.2m
o Like-for-like annualised commercial contracted rents in our standing
commercial portfolio increased by 1.7% to €177.5 million at the end of 2022,
mainly as effect of rent indexation.
· Rate of collections invoiced and due remained high at 99.0% for
2022.
· Net Operating Income ("NOI") was lower by 3.2% compared to 2021
at €139.7 million.
· EPRA earnings increased by 21.2% to €71.6 million (2021:
€59.1 million), as prior year EPRA earnings were 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 3.2% to €126.0 million
(2021: €130.2 million), due to lower NOI, partially offset by the positive
impact of the lower recurring administrative and other non-operating expenses.
· Net loss of €16.1 million (2021: net profit of €47.5 million)
due to revaluation losses of €89.5 million in 2022 compared to the €5.7
million revaluation losses in 2021.
· Cash dividend paid to shareholders of €0.27 per share in 2022.
· Preliminary EPRA Net Reinstatement Value (NRV) of €1.8 billion,
or €8.29 per share, decreasing from €8.66 at 31 December 2021 mainly due
to revaluation losses on the property portfolio.
· High liquidity of €163.8 million (vs €418.7 million at 2021
year-end) plus available liquidity from committed undrawn facilities of
€300 million; LTV 42.7% at 31 December 2022 (vs 40.1% at 2021 year-end).
· Maintained investment grade rating by all three major rating
agencies.
· Sustainability:
o €2.6 billion in 53 green certified properties.
o 45 properties were certified or recertified with BREEAM Very Good or
higher certifications during the year.
o Committed to reduce our carbon footprint based on a science-based approach
to align with a 1.5(o)C trajectory.
o Issued the third sustainable development report and our inaugural Green
Bond Report.
o Maintained low-risk rating by Sustainalytics and our MSCI rating to "A".
o Contributed to over 15 social initiatives in Romania and Poland.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
31 December 31 December
2022 2021
€'000 €'000
Revenue 239,251 219,350
Operating expenses (99,571) (75,098)
Net operating income 139,680 144,252
Administrative expenses (13,712) (25,622)
Acquisition costs (7) -
Fair value loss on investment property (89,471) (5,738)
Share-based payment expense - (532)
Depreciation and amortisation expense (673) (536)
Other expenses (2,013) (1,851)
Other income 524 1,051
Foreign exchange gain/(loss) 851 214
Loss from fair value of financial instruments at fair value through profit or 222 (386)
loss
Profit before net financing cost 35,401 110,852
Finance cost (52,532) (55,539)
Finance income 2,694 1,749
Share of profit of equity-accounted investments in joint ventures 3,219 5,010
(Loss)/profit before tax (11,218) 62,072
Income tax expense (4,886) (14,583)
(Loss)/profit for the year (16,104) 47,489
Items that will not be reclassified to profit or loss:
Loss on equity instruments designated at fair value through other (5,391) -
comprehensive income
Other comprehensive income for the year, net of tax (5,391)
Total comprehensive income (21,495) 47,489
(Loss)/profit attributable to: (16,104) 47,489
- ordinary equity holders of the Company (16,961) 47,489
- non-controlling interests 857 -
Total comprehensive income attributable to: (21,495) 47,489
- ordinary equity holders of the Company (22,352) 47,489
- non-controlling interests 857 -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
2022 2021
€'000 €'000
ASSETS
Investment property 2,945,460 2,966,080
Goodwill 12,349 12,349
Advances for investment property 4,393 3,436
Investments in joint ventures 67,967 48,908
Equity investments 7,521 12,109
Other long-term assets 1,784 2,083
Prepayments 226 338
Deferred tax asset 161 151
Non-current assets 3,039,861 3,045,454
Financial assets at fair value through profit or loss 3,554 7,324
Trade and other receivables 22,337 16,208
Contract assets 9,967 6,106
Guarantees retained by tenants 98 885
Income tax receivable 840 117
Prepayments 2,430 2,104
Cash and cash equivalents 163,767 418,748
202,993 451,492
Investment property held for sale 126,009 130,537
Total current assets 329,002 582,029
Total assets 3,368,863 3,627,483
EQUITY AND LIABILITIES
Equity
Issued share capital 1,704,476 1,704,476
Treasury shares (4,859) (4,917)
Fair value reserve of financial assets at FVOCI (5,469) -
Share-based payment reserve 156 156
Retained earnings (37,798) 38,914
Equity attributable to ordinary equity holders of the Company 1,656,506 1,738,629
Non-controlling interests 862 -
Total equity 1,657,368 1,738,629
Interest-bearing loans and borrowings 1,433,631 1,285,641
Deferred tax liability 154,866 150,713
Lease liabilities 19,861 18,762
Guarantees retained from contractors 1,995 2,661
Deposits from tenants 3,897 3,844
Trade and other payables 1,034 956
Non-current liabilities 1,615,284 1,462,577
Interest-bearing loans and borrowings 21,600 348,279
Guarantees retained from contractors 3,652 3,361
Trade and other payables 35,679 39,788
Contract liability 1,743 1,940
Other current financial liabilities 67 261
Current portion of lease liabilities 1,669 1,303
Deposits from tenants 17,477 16,068
Income tax payable 382 550
Current liabilities 82,269 411,550
Liabilities directly associated with the assets held for sale 13,942 14,727
Total current liabilities 96,211 426,277
Total equity and liabilities 3,368,863 3,627,483
COMBINED CONSOLIDATED PORTFOLIO SNAPSHOT
AS AT 31 DECEMBER 2022
Our real estate investments are in Poland and Romania, the two largest markets
in the CEE. As at 31 December 2022, our portfolio was spread across 13 cities,
with Poland accounting for 50.2% by value and Romania 49.8%.
Combined Portfolio Snapshot
Poland Romania Combined Portfolio
Standing Investments((1)) 19 22 41
GAV((2)) / Standing GAV (€m) €1,584m / €1,423m €1,574m / €1,471m €3,159m / €2,894m
Occupancy 81.3% 88.4% 85.6%
(89.0% incl. tenant options) (85.9% incl. tenant options)
WALL((3)) 3.8 years 5.0 years 4.4 years
Standing GLA (k sqm)((4)) 542.1k sqm 863.5k sqm 1,405.6k sqm
Contracted Rent (€m)((5)) €93.3m €95.9m €189.2m
GAV Split by Asset Usage
Office 83.0% 75.0% 79.0%
Mixed-Use 17.0% 0.0% 8.5%
Industrial 0.0% 17.2% 8.6%
Others 0.0% 7.9% 3.9%
GAV Split by City
Bucharest 0.0% 84.0% 41.9%
Timisoara 0.0% 6.3% 3.1%
Pitesti 0.0% 3.7% 1.8%
Constanta 0.0% 4.0% 2.0%
Arad 0.0% 1.1% 0.5%
Oradea 0.0% 0.4% 0.2%
Tg. Mures 0.0% 0.5% 0.3%
Warsaw 44.6% 0.0% 22.3%
Krakow 20.7% 0.0% 10.4%
Wroclaw 16.0% 0.0% 8.0%
Katowice 10.8% 0.0% 5.4%
Lodz 4.3% 0.0% 2.1%
Gdansk 3.7% 0.0% 1.8%
GAV as % of Total 50.2% 49.8% 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 2022.
3. Includes pre-let commercial standing and development assets. WALL of
standing commercial properties in Romania, Poland and the Combined portfolio
are 5.0 years, 3.7 years and 4.4 years, respectively.
4. Including 22.4k sqm of residential assets in Romania.
5. Total rent comprises commercial (€181.3 million) and residential (€0.7
million in Romania) standing properties, rent in assets under redevelopment
(€6.7 million in Poland) and development pre-lets (€0.5 million in
Romania).
Annualised Commercial Portfolio Lease Expiration Profile
Year 2023 2024 2025 2026 2027 ≥2028 Total
€ million 20.2 28.8 19.0 19.6 25.7 75.2 188.5
% of total 10.7% 15.3% 10.1% 10.4% 13.6% 39.9% 100%
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
Dominic Morley
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 260 professionals across Cyprus,
Guernsey, Poland and Romania, a combined value of its portfolio is €3.2
billion, as at 31 December 2022. Approximately 96.4% of the portfolio is in
income-producing assets, predominately in the office sector, and leased to a
diversified array of over 690 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, Oradea and Targu Mures.
For more information, please visit www.globalworth.com
(http://www.globalworth.com) and follow us on Facebook, Instagram and
LinkedIn.
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