REG - Globalworth Real Est - Condensed Unaudited Results to 31 Dec 2019

Globalworth Real Estate InvestmentsAnnouncement

06/03/2020 12:00

RNS Number : 2938F
  
Globalworth Real Estate Inv Ltd
  
06 March 2020
  
 

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.
 
6 March 2020
 
Globalworth Real Estate Investments Limited 
("Globalworth" or the "Company")
Condensed Unaudited Financial Results for the year ended 31 December 2019
 
Globalworth, the leading office investor in Central and Eastern Europe, is pleased to publish its Unaudited Consolidated Statement of Comprehensive Income and Unaudited Consolidated Statement of Financial Position for the year ended 31 December 2019. 
The Company intends to announce its audited Financial Results for the year ended 31 December 2019 and the Posting of its 2019 Annual Report at the end of March 2020.
 
Key Highlights for the year ended 31 December 2019
- Combined portfolio value rose by 23.7% to over €3.0bn
- Completed or announced 11 new real estate investments for a total of €613.8m
- Took full ownership of and delisted our subsidiary Globalworth Poland from the Warsaw Stock       Exchange 
- Delivered a 17.8k sqm industrial facility and, with seven office and industrial properties under   construction in Romania and Poland, expect to add 176.2k sqm of GLA in 2020 / 2021
- Standing portfolio footprint increased by over 170k sqm to 1.2m sqm of GLA. Commercial occupancy of 95.0% including tenant options, with 0.4% increase in like-for-like occupancy 
- Record year in leasing, with 179.5k sqm of commercial space taken-up or extended at an average WALL of 5.5 years
- Standing contracted rent increased by 15.6% to €184.4m, increasing to €191.0m when including pre-lets on properties under construction
- Revenue and Net Operating Income increased by 15.3% to €222.2m and 10.7% to €147.7m respectively
- Increased the number of green-certified properties by 13 to 43, now 81.3% of our standing commercial portfolio by value with the remainder under certification
- Eurobonds recognised as investment grade by all three major rating agencies following upgrades from Moody's and S&P to Baa3 and BBB- respectively
- Loan to Value was 34.7% at 31 December 2019, down from 43.9% at 31 December 2018, consistent with the Group's strategy to manage its long-term LTV target at below 40% while still pursuing strong growth
- EPRA NAV per share increased by 2.9% to €9.30 per share at 31 December 2019 (31 December 2018: €9.04)
- IFRS earnings per share increased to 93 cents in 2019, an increase of 52.5% compared to the previous year (2018: 61 cents) 
- Further strengthened our in-house asset management footprint, with 76.9% of our standing commercial portfolio by value now internally managed by our team of c.240 professionals
 


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
 




 


2019


    2018




 


Unaudited


Audited




 


€'000


€'000




Revenue


222,246


192,801




Operating expenses


(74,534)


(59,360)




Net operating income


147,712


133,441




Administrative expenses


(19,302)


(15,253)




Acquisition costs


(240)


(1,182)




Fair value gain on investment property


117,718


34,088




Bargain purchase gain on acquisition of subsidiaries


-


251




Share-based payment expense


(496)


(509)




Depreciation on other long-term assets


(406)


(398)




Other expenses


(7,192)


(4,332)




Other income


932


330




Gain resulting from acquisition of joint venture as subsidiary


2,864


-




Foreign exchange loss


(888)


(1,214)




Gain from fair value of financial instruments


1,898


      5,463




 


94,888


17,244




Profit before net financing cost


242,600


150,685




Net financing cost


(45,050)


 




Finance cost


(41,727)




Finance income


2,416


        3,289




 


(42,634)


    (38,438)




Share of profit of equity-accounted investments in joint ventures


7,750


3,095




Profit before tax


207,716


115,342




Income tax expense


(31,535)


(15,425)




Profit for the year


176,181


99,917




Other comprehensive income


-


-




Profit attributable to:


176,181


99,917




 
- Equity holders of the Company


170,177


80,263




- Non-controlling interests


6,004


   19,654




 


 


 



 
 
 
 





CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019
 
 




 


2019
Unaudited
€'000


2018
Audited
€'000




ASSETS


 


 




Non-current assets


 


 




Investment property


3,048,955


 2,390,994 




Goodwill


12,349


 12,349 




Advances for investment property


32,440


 4,209 




Investments in joint ventures


17,857


 38,316 




Equity investments 


9,840


 8,837 




Other long-term assets


1,493


 1,035 




Prepayments


619


 1,472 




Financial assets at fair value through profit or loss


3,098


2,829




Deferred tax asset


2,869


-




 


3,129,520


2,460,041




Current assets 


 


 




Financial assets at fair value through profit or loss


20,487


12,878 




Trade and other receivables


28,963


25,281 




Contract assets


5,257


3,937




Guarantees retained by tenants


858


11 




Income tax receivable


255


395 




Prepayments


4,653


4,929 




Cash and cash equivalents


291,694


229,527




 


352,167


276,958




Total assets


3,481,687


2,736,999




 


 


 




EQUITY AND LIABILITIES


 


 




Total equity


 


 




Issued share capital


1,704,374


897,314




Treasury shares


(8,379)


(842)




Share-based payment reserve


5,571


2,117




Retained earnings


213,101


186,326




Equity attributable to ordinary equity holders of the Company


1,914,667


1,084,915




Non-controlling interests


-


212,407




 


1,914,667


1,297,322




Non-current liabilities


1,299,616


 




Interest-bearing loans and borrowings


1,235,106




Deferred tax liability


134,302


106,978




Lease liabilities


30,190


-




Guarantees retained from contractors


1,074


693




Deposits from tenants


3,460


13,754




Provision for tenant lease incentives


-


780




Trade and other payables


1,316


694




 


1,469,958


1,358,005




Current liabilities


24,304


 




Interest-bearing loans and borrowings


23,965




Guarantees retained from contractors


4,754


3,353




Trade and other payables


44,633


32,956




Contract liability


1,824


1,401




Other current financial liabilities


1,498


2,084




Current portion of lease liabilities


1,887


-




Deposits from tenants


15,988


2,241




Provision for tenant lease incentives


1,353


1,211




Dividends payable


-


10,731




Income tax payable


821


3,730




 


97,062


81,672




Total equity and liabilities


3,481,687


2,736,999




 
 
For further information visit www.globalworth.com or contact:
Enquiries
Stamatis Sapkas                                                                    Tel: +40 372 800 000
Deputy Chief Investment Officer
 
Jefferies (Joint Broker)                                                           Tel: +44 20 7029 8000
Stuart Klein
 
Panmure Gordon (Nominated Adviser and Joint Broker)      Tel: +44 20 7886 2500
Alina Vaskina
 
Milbourne (Public Relations)                                                  Tel: +44 7903 802545
Tim Draper
 
 
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 Romania and in Poland. Globalworth acquires, develops and directly manages high-quality office and logistics/light-industrial real estate assets in prime locations, generating rental income from high quality tenants from around the globe. Managed by c.240 professionals across Poland and Romania, the combined value of its portfolio is €3.04 billion, as at 31 December 2019. Approximately 93.4% of the portfolio is in income-producing assets, predominately in the office sector, and leased to a diversified array of over 715 national and multinational corporates. In Poland Globalworth is present in Warsaw, Wroclaw, Lodz, Krakow, Gdansk and Katowice, while in Romania its assets span in Bucharest, Timisoara, Constanta and Pitesti. For more information, please visit www.globalworth.com and follow us on Facebook, Instagram and LinkedIn.
 
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.
 
  END
 
 
FR SSUFSMESSEED