REG - Globalworth Real Est - Half-year Report
23/09/2025 07:00
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RNS Number : 3350A Globalworth Real Estate Inv Ltd 23 September 2025
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
23 September 2025
Globalworth Real Estate Investments Limited
("Globalworth" or the "Company")
Interim Results for the six months ended 30 June 2025
Globalworth, a leading office investor in Central and Eastern Europe,
announces the release of its Interim Report and Unaudited Consolidated
Financial Results for the six-month period ended 30 June 2025 (the "Interim
Report").
The Interim Report is also available on Globalworth's website at:
https://www.globalworth.com/investor-relations/reports-presentations/
(https://www.globalworth.com/investor-relations/reports-presentations/)
For further information visit www.globalworth.com (http://www.globalworth.com)
or contact:
Enquiries
Rashid Mukhtar
Group CFO Tel:
+40 732 800 000
Panmure Liberum (Nominated Adviser and Broker)
Atholl Tweedie Tel: +44
20 7886 2500
About Globalworth / Note to Editors:
Globalworth is a listed real estate company active in Central and Eastern
Europe, quoted on the AIMsegment 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 250 professionals across Cyprus,
Guernsey, Poland and Romania the combined value of its portfolio is €2.6
billion, as at 30 June 2025. Approximately 98.5% of the portfolio is in
income-producing assets, predominately in the office sector, being leased to a
diversified array of over 650 national and multinational corporates. In Poland
Globalworth is present in Warsaw, Wroclaw, Lodz, Krakow, Gdansk and Katowice,
while in Romania its assets span Bucharest, Constanta, Targu Mures and
Craiova.
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 forwardlooking 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.
GLOBALWORTH REAL ESTATE INVESTMENTS LIMITED
INTERIM REPORT AND UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
30 JUNE 2025
FINANCIAL HIGHLIGHTS: H1 2025
Combined portfolio open market value Shareholders' equity Dividends paid in H1-25
€2.6bn
€1.5bn 9 cents
0.6% on YE-24 0.5% on YE-24 11 cents in H1-24
NOI NOI(1) Like-for-like LTV
€67.0m €68.6m 38.0%
-7.4% in H1-24 2.9% in H1-24 38.1% at YE-24
Adjusted normalised EBITDA(3) EBITDA(3) Like-for-like Cash and cash equivalents
€57.3m
€58.9m €325.4m
-9.9% in H1-24 1.5% in H1-24 €333.6m on YE-24
IFRS Earnings per share EPRA Earnings per share EPRA NRV per share
3 cents 6 cents €5.67
-24 cents in H1-24 11 cents in H1-24 -3.7% on YE-24
Net Operating Income ('NOI')
Loan to value ('LTV')
(3) Earnings before interest, taxes, depreciation, and amortisation ('EBITDA')
Restated for scrip shares in October 2024 and April 2025
CHIEF EXECUTIVE'S REVIEW
Dear Stakeholders,
We have embarked 2025 with a sense of optimism and responsibility after a few
years which proved to be more demanding and volatile than the average year.
Globalworth has grown in terms of core business resilience and has adapted to
multiple challenges, while balancing between a prudent financial policy and
its mission of remaining the landlord of choice when it comes to providing
best in class office spaces and services to its partners.
Our two markets, Poland and Romania, are increasingly linked to the greater EU
economy, now, as geopolitical and trade tensions remain high, and an
intensified sense of national pride lies in the background of most electoral
outcomes of the latest year.
The European Commission's May'25 forecasts show the EU GDP growing by 1.1% in
2025 and 1.5% in 2026 with Poland and Romania expected to outperform EU
average and have a growth of 3.3% and 1.4% in 2025 followed by 3.0% and 2.2%
in 2026, respectively.
Globalworth's performance throughout the first half of the year was
characterised once again by resilience and robustness, as we continued to
implement our "local landlord" approach, with an increasing focus on
sustainability and financial prudence.
We consider ourselves better prepared for future challenges and opportunities,
now, that we have significantly strengthened our financial and debt profile,
following last year's bond refinancing. The disposal of non-core assets not
only contributed to this strengthening but has allowed us to focus on our
core, office and mixed-use portfolio, carefully considering and applying
select initiatives aimed at preserving and enhancing value for all our
stakeholders.
Having in mind the above, my grateful thoughts go towards all our team members
which proved that their dedication, commitment and positive attitude, does
make a difference. I am, as well, extending my appreciation to all our
stakeholders, partners and communities for their steadfast support and the
trust that they put in us.
Our Portfolio
Our portfolio predominantly consists of Class "A" office spaces, which are
complemented by additional investments in a few landmarks, mixed-use (office
& retail) assets located in Poland, a residential investment with a retail
component, one logistic property in Romania and several plots of land that
ensure future development potential for our business.
During the first six months of 2025, the footprint of our standing portfolio
remained constant at just above 1 million sqm, affected only by the sale of
residential and retail units. At the end of June 2025, we were in the course
of formalizing the acceptance of refurbishment works in Renoma, our mixed-use
property in Wroclaw, Poland, which, after completion will further add 48.3k
sqm of high-quality GLA to our standing portfolio.
Considering the rising popularity of hybrid work seen during the last years,
we have started developing back in 2024 our "Ace of Space" concept, a flexible
office solution, which has now reached 13.5k sqm of premium GLA being serviced
by our dedicated teams, located in Warsaw and four other Polish regional
centres.
The total combined portfolio value slightly increased by 0.6% during the first
semester of the year sustained by an improving macroeconomic predictability
and a slight upward trend of rental levels across our markets of interest. The
impact of high interest and discount rates on commercial valuations has been
mostly assimilated in the previous years, and a more stable outlook is
expected, conditioned no future shocks occurring at macroeconomic and
geopolitical levels.
Our Leasing and Occupancy
The leasing of our spaces remains a pivotal determinant of our business's
success. During the initial half of 2025, we successfully managed the leasing
of 52.3k sqm of commercial spaces, with a Weighted Average Lease Length (WALL)
of 5.1 years.
As of June 30, 2025, the average occupancy rate across our combined commercial
portfolio stood at 85.9%, decreasing in comparison to the year-end 2024, when
it stood at 86.7%. Virtually all this decrease is attributable to spaces
becoming available in two of our Bucharest office projects, while we still
maintain above 95% occupancy in our Bucharest offices.
In both Romanian and Polish markets, the office supply remains at historical
low levels affected by a combination of increased construction costs, tighter
access to capital markets and the volatile demand of the previous years. As
this demand picks up within a more predictable macroeconomic environment, we
estimate the upward pressure on prime rents to continue, as the
"flight-to-quality" of tenants will further enhance the desirability of
A-grade, well-located assets with strong ESG performance such as the
Globalworth assets, considering their increasing scarcity.
Our total annualised contracted rent slightly increased with 0.1%, reaching
€187.7 million compared to the year-end 2024 figures (€187.5 million) as
the positive effect of rent indexations was offset by negative net take up,
mostly driven by the two of our Bucharest assets as mentioned above.
Our Financial Results
We recorded €74.9 million net rental income, €1.9 million higher on a
like-for-like basis compared to the first half of last year as an effect of
indexation and partially offset by the reduced rates at which existing leases
were renewed for extended period or new leases were signed, accounting also
for the new lease incentives amortisation during the period.
Our net service charge result is €6.3 million, €0.1 million higher for
like-for-like properties. Total net operating income presented for the first
half of 2025 is €67.9 million, after accounting the €1.6 million one off
non recoverable property costs in Poland.
Our adjusted normalised EBITDA, for like-for-like properties, reached €58.9
million, after deducting recurring administrative and other expenditure
categories.
Our net result for the initial half of 2025 shows a net profit of €8.0
million (€65.2 million loss in similar period 2024) with only €1.7 million
loss recorded from fair valuation of investment properties.
Dividend
During March 2025, we announced the second interim dividend of €0.09 per
share in respect of the twelve-month financial period ended 31 December 2024
with a scrip dividend alternative at a reference price of €2.08 per scrip
aimed at preserving liquidity. Approximately 98.2% of the shareholders elected
to receive scrip dividend shares thus resulting in only €0.5 million cash
dividends outflows.
Also, in August 2025, we announced the payment of an interim dividend in
respect of the six-month ended 30 June 2025 of €0.05 per ordinary share,
payable on 26 September 2025. For this interim dividend, the Board has decided
not to offer a scrip dividend alternative, as it is not necessary in order to
meet the applicable bond restrictions. The Board may consider offering such an
alternative for future interim dividends should the circumstances so require.
Balance Sheet
We hold €2,608 million investment properties, being strongly present in the
two capital cities, Bucharest and Warsaw, with several commercial office
buildings having occupancy above 85% and high ESG credentials, provides us
with a unique strength in arranging additional secured facilities with local
and regional banks in our markets.
Our cash and cash equivalent balance as of 30 June 2025 is still strong
reaching €325 million, with further €115 million in undrawn debt
facilities, out of which €50 million is available to draw until December 31,
2025 and €65 million were drawn in August. We successfully refinanced €100
million secured facility, which was expiring in May 2025, by extending it for
another five years therefore we have no material debt maturing until 2027.
We secured our financing costs by reaching having 95.9% from total debt that
carries a fixed/ hedged interest rate at the end of June 2025 (86.5% as of 31
December 2024), with 45% of total debt is unsecured financing from public debt
markets. Our average debt maturity period is 4.7 years (4.9 years as of 31
December 2024) and our leverage ratio to 38.0% (38.1% as of 31 December 2024).
This is consistent with the Group's strategy to manage its long-term target
LTV of around or below 40%.
The EPRA Net Reinstatement Value (NRV) as of 30 June 2025 was €1.64 billion,
or €5.67 per share, showing a 3.70% decrease from €5.89 per share on
December 31, 2024, mostly impacted by the increase in number of shares
following the scrips dividend shares issued in April 2025.
Fitch Ratings re-affirmed, in July 2025, Globalworth's investment grade
rating, keeping the stable outlook, following the annual review of our
ratings. S&P Global Ratings changed, during first semester, the rating to
BB (from BB+) and the outlook to stable.
Environmental and social
We maintained our A-rating by MSCI and a low-risk rating by Sustainalytics. We
issued our seventh Sustainable Development Report during the period.
We continued investing in our green portfolio and, during the first six months
of 2025, we certified or recertified 6 properties in our Romanian portfolio
with LEED Platinum, the highest certification of such type. We are proud to
manage, at the end of June 2025, a portfolio of 52 green-certified properties
valued at €2.5 billion, accounting for more than 98.2% of our total standing
portfolio value.
We remain committed to our environmental target to reduce GHG emissions
intensity by 46% by 2030 versus our baseline 2019 levels (for Scope 1 and 2),
a target validated by the globally recognised Science Based Targets initiative
(SBTi).
Outlook
With many of the headwinds affecting the office sector now dissipating and a
more predictable macroeconomic environment, our business is ready to
capitalise on the challenges and opportunities that may unfold. We have
steered our strategy towards value preservation and enhancement through select
spending initiatives that emphasise ESG performance and wellbeing, while
adapting to relevant market trends like hybrid work, as we continue to uphold
our mission of being the landlord of choice for corporates and multinationals
operating in our markets.
The market fundamentals in our focus countries remain notably stronger than
those of Western Europe, with estimated macroeconomic performance set to once
again surpass the EU average performance. The office market we are operating
in is now a blend of hybrid work and return to office schemes, which highlight
the importance of well-being, collaboration, innovation and sustainability. We
are continuously evaluating the performance of our portfolio, and we are
closely assessing and implementing various portfolio optimisation initiatives
aimed at keeping our best-in-class assets among the first choices of any
company looking for spaces that define and add value to their business.
We consider that, due to our size and visibility of our assets, we are
well-positioned to capitalise on current market trends and on opportunities of
further enhancing our portfolio. As we maintain our dedication towards
operational efficiency and solid financial policy, we are selectively pursuing
investment initiatives that align with our strategic objectives.
Looking ahead, our path remains clear. We continue to capitalise on our scale,
expertise, and integrated model to deliver stable cashflows. We keep our
commitment to delivering long-term value for our stakeholders, responding
swiftly to market dynamics, and pursuing opportunities that support our growth
ambitions.
Dennis Selinas
Chief Executive Officer
23 September 2025
MANAGEMENT REVIEW
REAL ESTATE ACTIVITY
During the first half of the year, Globalworth has focused its attention on
its core asset base by continuing its renovation and proactive maintenance
program aimed at preserving and enhancing the quality and desirability of our
premium assets.
"Ace of Space" brand, the group's flexible office solution, is now operating
13.5k sqm of GLA in seven locations in Warsaw and four other Polish cities,
providing our tenants with best-in-class spaces and all the amenities needed
to acquire and retain talents and helping them boost their corporate identity
and brand.
After delivering the newly renovated Supersam mixed-use property back in 2024,
we are in course of finishing refurbishment works in Renoma, our mixed-use
asset from Wroclaw, Poland, re-adding 48.3k sqm of GLA to our standing
commercial portfolio.
"Ace of Space" - our approach to flexible offices
After launching in 2024, our flexible office solution, "Ace of Space" is now
fully operational in Warsaw and four other cities in Poland, offering premium
spaces for our partners. These spaces are operated through a special group
company, and the concept is addressing to tenants looking for smaller but
high-quality spaces, usually for the short and medium term. This brings
flexibility to our partners when planning for a new office while offering them
access to our premium locations and state-of-the art spaces to help attract
and retain talents and build their corporate identity.
As of June 30(th), we had 13.5k sqm of GLA in our flex office portfolio across
seven properties in Poland, with an average occupancy of 55.9%.
Globalworth Flex Office Portfolio
Tryton Business House Quattro Business Park Retro Office House Silesia Star Supersam Skylight & Lumen Renoma TOTAL
Location Gdansk Krakow Wroclaw Katowice Katowice Warsaw Wroclaw
GLA (k sqm) 0.5 1.5 1.2 1.2 3.6 3.0 2.5 13.5
Occupancy (%) 89.1% 27.6% 41.0% 22.5% 67.7% 89.0% 32.7% 55.9%
100% rent (€m) 0.2 0.6 0.4 0.1 1.7 1.2 0.8 5.0
Review of Development Potential
During the first part of the year, we have focused on pro-active maintenance
program and select capex initiatives aimed at preserving and enhancing the
value of our core asset base.
In Poland, the reception of refurbishment works of our iconic Renoma mixed-use
asset, after several delays, is expected to finally take place in the
following months after agreement of final details with the construction
company. The property is now offering a more attractive food court and an
increase in office GLA compared to pre-refurbishment status.
Properties Under Refurbishment / Repositioning
Renoma
Location Wroclaw
Status Refurbishment / Repositioning
GLA - on Completion (k sqm) 48.3
GAV (€ m) 115.6
Occupancy (%) 63.1%
Contracted Rent (€m) 6.5
ERV Rent at 100% (€ m) 9.8
Future Developments
We own, directly or through JV partnerships, other land plots in prime
locations in Bucharest and Constanta, Romania and in Krakow, Poland, covering
a total land surface of 0.3 million sqm (comprising 1.5% of the Group's
combined GAV), for future developments of office, industrial or mixed-use
properties. When fully developed, these land plots have the potential to add a
total of a further c. 224.5k sqm of high-quality GLA to our standing portfolio
footprint.
These projects, which are classified as "Future Development", continue to be
reviewed by the Group periodically. The pace at which they will be developed
is subject to tenant demand and general market conditions.
Future Developments
Podium Green Court D Globalworth West Constanta Business Park (Phased) Luterana
Park III
Location Krakow Bucharest Bucharest Constanta Bucharest
Status Postponed Postponed Postponed Planned Planned
GLA (k sqm) 17.7 17.2 33.4 129.8 26.4
CAPEX to 30 Jun 25 (€ m) 8.5 3.3 5.2 3.3 7.4
GAV (€ m) 6.3 7.1 6.0 7.9 12.3
Estimated CAPEX to Go (€ m)* 29.7 38.0 38.5 60.2 39.7
ERV (€ m) 3.1 4.3 6.2 6.9 6.8
Estimated Yield on Development Cost 8.1% 10.4% 14.1% 10.9% 14.4%
(*) Initial preliminary development budgets on future projects to be revised
periodically or prior to the permitting.
ASSET MANAGEMENT REVIEW
· 52.3k sqm of commercial space taken up or extended at an average
WALL of 5.1 years, with Romania accounting for 53.1% of leases signed in the
first six months of 2025
· New leases (including expansions) accounted for 45.9% of our
leasing activity at a WALL of 5.6 years, with renewals signed at a WALL of 4.7
years
· Total annualised contracted rent remained stable at €187.7
million, up just 0.1% compared to the year-end 2024, as the positive impact of
indexations was offset by negative net take-up during the first half of the
year
· Like-for-like annualised contracted rent from our standing commercial
assets owned throughout the first 6 months of the year was also stable at
€181.0m (€181.2 as of Dec'24)
· Total combined portfolio value slightly increased by 0.6% to
€2.6 billion, under the effect of small valuation gains.
Leasing Review
New Leases
Our principal focus continues to be the prolongation of leases with existing
tenants in our portfolio and the take-up of available spaces in standing
properties and developments, maximising the utilization degree and efficiency
of our buildings.
In the first six months of 2025, the Group successfully negotiated the take-up
(including expansions) or extension of 52.3k sqm of commercial spaces in
Poland (46.9% of transacted GLA) and Romania (53.1% of transacted GLA), with
an average WALL of 5.1 years. Between 1 January and 30 June 2025, our leasing
activity involved new take-up of available spaces, with such leases accounting
for 45.9% of our total leasing activity signed at a WALL of 5.6 years, while
renewals were signed at a WALL of 4.7 years.
The office leasing market has emerged more stable and vibrant from the
challenges of the previous years, with a clear differentiation now seen
between capital cities compared to regional cities and between grade A and
grade B properties. CEE growth rates continue to be estimated higher compared
to Western Europe, with inflation normalized and interest rates stabilizing.
Hybrid work has set new trends and many of the office landlords have adapted
and responded to the need for flexibility manifested by tenants.
In total, we signed new take-up for 24.0k sqm of GLA, with 68.4% involving
spaces leased to new tenants, and the remaining areas being taken up by
existing tenants who were expanding their operations.
New leases were signed with 25 tenants for 16.4k sqm of GLA at a WALL of 5.6
years. The majority were for office spaces, accounting for 76.7%, with the
remainder involving mostly retail and other commercial spaces. The largest new
leases in this period were with Polish Water Management Authority (3.1k sqm)
in Tryton Business House (Gdansk), Schneider Electric (2.3k sqm) in
Globalworth Campus (Bucharest) and Drager Polska (2.1k sqm) in Silesia Star
(Katowice).
In addition, 14 tenants signed new leases, expanding their operations by 7.6k
sqm at an average WALL of 5.6 years, with the most notable being the expansion
of Banca Transilvania (3.1k sqm) in Green Court Complex (Bucharest).
We renewed leases for a total of 28.3k sqm of GLA with 37 of our tenants at a
WALL of 4.7 years. The most notable extensions involved Regina Maria (3.3k
sqm) in Globalworth Tower (Bucharest), Jaral Sp. Z.o.o. (3.0k sqm) in Rondo
Business Park (Krakow), PGE Energia (2.3k sqm) in Skylight & Lumen
(Warsaw) and Chain IQ Services (2.2k sqm) in Globalworth Campus (Bucharest),
while c.59% of the renewals by GLA signed were for leases that were expiring
in 2026 or later.
Summary Leasing Activity for Combined Portfolio in H1-2025
GLA (k sqm) No. of Tenants* WALL (yrs)
New Leases (incl. expansions) 24.0 37 5.6
Renewals / Extensions 28.3 37 4.7
Total 52.3 70 5.1
*Number of individual tenants
Rental Levels
During the latest years, headline rental levels started to display a slight
upward pressure, mostly influenced by indexation, but also by the limited new
supply of high-quality spaces coming into the market. We expect this trend to
continue, despite challenges in the market, but with different impact
depending on the location, ESG credentials and office asset class.
Most of our leases typically adjust annually in the first quarter of the year,
and in the first half, eligible leases were indexed at an average of 2.5%.
However, this positive impact was partly offset by the rates at which leases
were renewed or new leases signed throughout the period.
At the end of June 2025, our average headline rent in our standing properties
for office, retail/commercial and industrial spaces were €16.1/sqm/month
(€15.9 at YE-2024), €15.7/sqm/month (€16.2 at YE-2024) and
€4.5/sqm/month (€4.4 at YE-2024) respectively.
Office leases signed in the first half of the year were at an average rent of
€16.6/sqm/month while retail spaces were leased at an average of
€13.3/sqm/month. The overall commercial GLA take-up during the first six
months of 2025 was at an average rent of €15.9/sqm/month.
Contracted Rents (on annualised basis)
Total annualised contracted rent across our portfolio in Poland and Romania
was stable during the first months reaching €187.7 million, only 0.1% higher
compared to year-end 2024, as the impact of rent indexations was offset by
negative net take-up.
Like for like total annualised contracted rents in our standing commercial
portfolio were €181.0 million on 30 June 2025, slightly lower by 0.1%
compared to 31 December 2024, increasing to €187.5 million when including
rental income contracted in Renoma, our mixed-use property in Wroclaw,
currently under refurbishment.
Annualised Contracted Rent Evolution H1-2025 (€m)
Poland Romania Group
Rent from St. Comm. Props ("SCP") 31 Dec 2024 91.3 89.9 181.2
Less: Assets sold - - -
Rent from SCP Adj. for Properties sold 91.3 89.9 181.2
Less: Space Returned (2.9) (4.4) (7.3)
Plus: Rent Indexation 1.5 1.7 3.2
Plus/Less: Lease Renewals (net impact) & Other (0.2) (0.2) (0.4)
Plus: New Take-up 2.1 2.2 4.3
Total L-f-L Rent from SCP 30 Jun 2025 91.8 89.2 181.0
Plus: Standing Commercial Properties Acquired During the Period - - -
Plus: Developments Completed During the Period - - -
Total Rent from Standing Commercial Properties 91.8 89.2 181.0
Plus: Residential Rent - 0.2 0.2
Total Rent from Standing Properties 91.8 89.4 181.2
Plus: Active and Pre-lets of Space on Projects Under Development / 6.5 - 6.5
Refurbishment
Total Contracted Rent as at 30 Jun 2025 98.3 89.4 187.7
Annualised Commercial Contracted Rent Profile as of 30 June 2025
Poland Romania Group
Contracted Rent (€ m) 98.3 89.1 187.5
Tenant origin - %
Multinational 65.1% 80.8% 72.6%
National 33.5% 17.3% 25.8%
State Owned 1.4% 1.8% 1.6%
Note: Commercial Contracted Rent excludes c.€0.2 million from residential
spaces as of 30 June 2025
Annualised Contracted Rent by Period of Commencement Date as of 30 June 2025
(€m)
Active Leases H2-2025 >2025 Total
Standing Properties 178.4 2.8 - 181.2
Developments 6.5 0.0 - 6.5
Total 184.9 2.8 - 187.7
Annualised Commercial Portfolio Lease Expiration Profile as of 30 June 2025
(€m)
Year H2-2025 2026 2027 2028 2029 2030 2031 2032 2033 >2033
Total 6.9 15.4 24.2 24.4 30.6 34.1 18.8 11.6 4.1 17.2
% of total 3.7% 8.2% 12.9% 13.0% 16.3% 18.2% 10.0% 6.2% 2.2% 9.2%
The Group's rent roll across its combined portfolio is well diversified, with
the largest tenant accounting for 3.5% of contracted rents, while the top
three tenants account for 9.5% and the top 10 account for 23.6%.
Cost of Renting Spaces
The headline (base) rent presents the reference point, which is typically
communicated in the real estate market when a new lease is signed. However,
renting spaces typically involves certain costs, such as rent-free periods,
fitouts for the space leased, and brokerage fees, which the landlords incur.
These incentives can vary significantly between leases and depend on market
conditions, type of lease (new take-up or lease extension), space leased
(office, industrial, other), contract duration and other factors.
In calculating our effective rent, we account for the costs incurred over the
lease's lifetime, which we deduct from the headline (base) rent, thus allowing
us to assess the profitability of a rental agreement.
Overall, in the first half of 2025, we successfully negotiated the take-up
(including expansions) or extension of 49.5k sqm of commercial spaces in our
portfolio, excluding leases signed with group entity for flexible office
spaces or other leases granted in connection to our social commitments. The
weighted average effective rent for these new leases was €13.0/sqm/month
with a WALL of 5.4 years.
The difference between headline (base) and effective rents in the first half
of 2025 was, on average, 18.2%, lower than FY2024 (average of 27.1%),
considering the relatively low level of leasing activity in the first half of
2025.
In total, new leases signed in the first six months of the year will generate
a future headline rental income of €53.2 million (including auxiliary spaces
and revenues from GW flex offices), with leases from office properties
accounting for 93.8% of future headline rental income.
Weighted Average Effective Rent (€ / sqm / m) - H1-2025
Poland Romania Group
Headline Commercial Rent 15.9 15.9 15.9
Less: Rent Free Concessions (2.0) (1.0) (1.4)
Less: Tenant Fitouts (1.5) (1.0) (1.2)
Less: Broker Fees (0.5) (0.1) (0.3)
Effective Commercial Rent 11.9 13.8 13.0
WALL (in years) 4.9 5.9 5.4
Portfolio Valuation
In line with our practice of biannual valuations, our entire portfolio in
Poland and Romania was revalued as of 30 June 2025.
The valuations were performed by Knight Frank for our properties in Poland,
with Colliers and Cushman & Wakefield valuing our properties in Romania
(more information is available under note 4 of the unaudited interim condensed
consolidated financial statements as of and for the period ended 30 June
2025).
Assigning the appraisal of our portfolio to independent and experienced
service providers makes the process of determining the value properties
transparent and impartial. Through our oversight, we ensure that a consistent
methodology, reporting, and timeframe are respected.
Our portfolio, since the inception of the Group, has been growing to reach
€3.2 billion as of 31 December 2022, following series of acquisitions and
development of high-quality office and logistic / light industrial assets in
Poland and Romania. Subsequently, in the following, high-inflation, years our
focus has switched to preserving the value of our core assets and towards
liquidity enhancing initiatives resulting in the disposal of our non-core,
industrial portfolio back in 2024.
The first half of 2025 was entirely focused on core-portfolio initiatives
aimed at value preservation without any additions of newly acquired or
developed assets or disposals of other non-core assets, except for units sold
from Upground Residential project. Without such developments, the portfolio's
third-party appraised value on 30 June 2025 was estimated at €2.6 billion,
slightly up with 0.6% compared to the value as of December 2024, impacted
mostly by a small positive valuation gain.
In valuing our properties, the key market indicators used by our independent
appraisers, although they vary, consider factors such as the commercial
profile of the property, its location and the country in which it is situated.
These factors have remained consistent with year-end 2024, with ERVs
displaying selective upward trend, especially in prime locations and for class
A assets.
Combined Portfolio Value Evolution 30 June 2025 (€m)
Poland Romania Group
Total Portfolio Value on 31 Dec 2024 1,404.0 1,195.7 2,599.7
Less: Properties Held in Joint Venture (*) - (7.9) (7.9)
Total Investment Properties on 31 Dec 2024 1,404.0 1,187.8 2,591.8
Plus: Transactions - (3.5) (3.5)
o/w New Acquisitions - - -
o/w Disposals - (3.5) (3.5)
Plus: Capital Expenditure 9.3 10.6 19.8
o/w Developments - - -
o/w Standing Properties 9.3 10.6 19.8
o/w Future Developments - - -
Plus: Net Revaluations Adjustments (1.7) 1.7 (0.0)
o/w Developments 4.7 - 4.7
o/w Standing Properties (6.4) 1.7 (4.7)
o/w Lands, Future Developments & Acquisitions - - -
Total Investment Properties on 30 Jun 2025 1,411.6 1,196.6 2,608.2
Plus: Properties Held in Joint Venture (*) - 7.9 7.9
o/w Capital Expenditure & Acquisitions - - -
o/w Net Revaluation Adjustments - - -
Total Portfolio Value on 30 Jun 2025 1,411.6 1,204.5 2,616.1
(*) Joint Venture Portfolio is shown at 100%; Globalworth owned 50% stake as
of June 30(th),2025.
STANDING PORTFOLIO REVIEW
Standing portfolio footprint stable at 1,011.6k sqm valued at €2.5 billion
as of 30 June 2025, reaching €2.6 billion after including the value of
assets under refurbishment and of land plots.
Average standing occupancy of our combined commercial portfolio of 85.9%,
slightly lower vs. year-end 2024 (86.7%)
Total contracted rent of €181.2 million in our standing properties (over 90%
coming from office properties).
All our properties in Poland are now internally managed, resulting in 96.4% of
our combined standing commercial portfolio by value (96.6% of office and
mixed-use standing properties) being internally managed by the Group.
Standing Portfolio Evolution
The footprint of our standing commercial portfolio remained basically
unchanged during the first half of 2025 just above 1 million sqm valued at
€2.5 billion.
Overall, our standing portfolio is almost entirely focused on 28 Class "A"
office (48 properties in total) and two mixed-use investments (with six
properties in total) in central locations in Bucharest (Romania), Warsaw
(Poland) and five of the largest office markets/cities of Poland (Krakow,
Wroclaw, Katowice, Gdansk and Lodz), which account for more than 98.0% of our
standing portfolio by value. In addition, in Romania we own a small logistic
park in Craiova and part of a residential complex in Bucharest with a retail
component at ground floor.
As of 30 June 2025, our combined standing portfolio comprised 32 investments
with 56 buildings in Poland and Romania without any changes compared to the
beginning of the year.
The appraised value of our combined standing portfolio as of 30 June 2025 was
€2.5 billion (more than 99% in commercial properties), which was 0.5% higher
compared to 31 December 2024, the small increase being mostly due to valuation
gains. Our standing office and mixed-use properties were valued at €2,429.0m
as of 30 June 2025, registering a €15.4m like-for-like uplift compared to 31
December 2024.
Globalworth Combined Portfolio: Key Metrics
Total Standing Properties 31 Dec. 2023 31 Dec. 2024 30 Jun. 2025
Number of Investments 41 32 32
Number of Assets 71 56 56
GLA (k sqm) 1,386.0 1,014.0 1,011.6
GAV (€ m) 2,736.4 2,449.2 2,460.9
Contracted Rent (€ m) 192.0 181.5 181.2
Of which Commercial Properties 31 Dec. 2023 31 Dec. 2024 30 Jun. 2025
Number of Investments 40 31 31
Number of Assets 70 55 55
GLA (k sqm) 1,367.4 1,003.7 1,003.0
GAV (€ m) 2,700.0 2,428.5 2,443.1
Occupancy (%) 88.3% 86.7% 85.9%
Contracted Rent (€ m) 191.5 181.2 181.0
Potential rent at 100% occupancy (€ m) 217.7 205.5 207.1
WALL (years) 4.9 4.6 4.4
Evolution of Combined Standing Portfolio over H1-2025
31 Dec. 2024 LfL Change* New Acquisitions Sales New Deliveries Reclass. 30 Jun. 2025
& Other Adj**
GLA (k sqm) 1,014.0 - - (2.1) - (0.3) 1,011.6
GAV (€ m) 2,449.2 15.1 - (3.5) - - 2,460.9
(*) Like-for-Like change represents the changes in GLA or GAV of standing
properties owned by the Group at 31 December 2024 and 30 June 2025.
(**) Includes impact in areas (sqm) from the remeasurement of certain
properties and other GAV adjustments (redevelopment capex, reclassification).
Standing Portfolio Occupancy
Our standing commercial portfolio's average occupancy as of 30 June 2025 was
85.9%, representing a small decrease of 0.9% over the past six months (86.7%
as of 31 December 2024), mostly impacted by spaces becoming available in two
of our office properties from Bucharest.
Across the portfolio, at the end of the first half of 2025, we had 861.1k sqm
of commercial GLA leased to more than 630 tenants at an average WALL of 4.4
years, the majority of which is let to national and multinational corporates
that are well-known within their respective markets.
In addition, we had 30.5k sqm leased in Renoma mixed-use property (Wroclaw,
Poland), which was under refurbishment/repositioning as of 30 June 2025 and
was not included in our standing portfolio metrics.
Occupancy Evolution H1-2025 (GLA 'k sqm) - Commercial Portfolio
Poland Occupancy Romania Occupancy Group Occupancy
Rate (%) Rate (%) Rate (%)
Standing Available GLA - 31 Dec. 24 530.4 473.3 1,003.7
Sold GLA - (0.5) (0.5)
Acquired GLA - - -
New Built GLA - - -
Remeasurements, reclassifications (0.3) 0.0 (0.3)
Standing Available GLA - 30 Jun. 25 530.1 472.9 1,003.0
Occupied Standing GLA - 31 Dec. 24 412.5 77.8% 458.3 96.8% 870.7 86.7%
Sold Occupied GLA - - -
Acquired/Developed Occupied GLA - - -
Expiries & Breaks (13.1) (21.0) (34.1)
Renewals* 12.7 15.4 28.1
New Take-up 11.5 12.4 23.9
Other Adj. (relocations, remeasurements, etc) (0.0) 0.6 0.5
Occupied Standing GLA - 30 Jun. 25 410.9 77.5% 450.2 95.2% 861.1 85.9%
* Renewals are neutral to the occupancy calculation.
Standing Properties Operation and Upgrade Programme
Offering best-in-class real estate space to our business partners remains a
key component of our strategy at Globalworth.
We believe that through a "hands-on" approach with continuous active
management and investment in our portfolio, we can preserve and enhance the
value of our properties, generate long-term income, and offer premium real
estate space to our business partners.
To be able to provide spaces for our current and future business partners'
requirements, we keep (re)investing in our properties, maintain and, where
required, improve the quality of our buildings and our services.
We are pleased that all our properties in Poland are now internally managed by
the Group. In Romania, we manage all but one of our offices in-house. Overall,
we internally manage 954.8k sqm of high-quality commercial spaces with an
appraised value of €2.4 billion. Of our total standing commercial portfolio,
internally managed properties account for 96.4% by value (96.6% of office and
mixed-use standing properties) as of 30 June 2025.
In the first half of 2025, we invested €19.8 million in select improvement
initiatives in our standing commercial portfolio. As a result of our ongoing
in-house initiatives and property additions, we hold a modern portfolio with
36 of our standing commercial properties, accounting for 68.6% by GLA and
70.1% by commercial portfolio value, having been delivered or significantly
refurbished in the last 10 years.
Internally Managed Commercial Portfolio as of 30 June 2025 Poland Romania Group
Internally Managed GLA (k sqm) 530.1 424.7 954.8
% of Commercial GLA 100% 90% 95%
% of Office and Mixed-Use GLA 100% 91% 96%
Internally Managed GAV (€ m) 1,289.7 1,065.1 2,354.8
% of Commercial GAV 100% 92% 96%
% of Office and Mixed-Use GAV 100% 93% 97%
SUSTAINABLE DEVELOPMENT UPDATE / OTHER INITIATIVES
Overall, we own 52 green certified properties in our portfolio valued at
€2.5 billion, accounting for 96.8% of our total portfolio value.
6 properties were certified or recertified with LEED Platinum certifications
in our Romanian portfolio during H1-2025.
All our office properties in Romania have a WELL Health-Safety rating, further
demonstrating the quality of our portfolio.
Issued the seventh sustainable development report for the Group for FY 2024.
Globalworth maintained its low-risk rating by Sustainalytics and A by MSCI.
c.€130k donated to over17 initiatives in Romania and Poland.
Green Buildings
Consistent with our commitment to energy-efficient properties, during H1-2025
we certified or recertified 6 properties in our Romanian portfolio with LEED
Platinum, the highest certification of such type.
Overall, as of 30 June 2025, our combined standing portfolio comprised 51
green-certified properties, accounting for 99.0% of our standing commercial
portfolio by value. BREEAM-accredited properties account for 59.7% of our
green-certified standing portfolio by value, with the remaining properties
being holders of other certifications (LEED Gold or Platinum). In addition,
our mixed-use property Renoma, which is undergoing the last refurbishment
works, has been recertified with BREEAM Excellent during 2024.
At Globalworth, we are aiming for 100% of our commercial portfolio to be
green-accredited. We are currently in the process of certifying or
recertifying 3 other properties in our portfolio, principally targeting BREEAM
and LEED certifications.
Furthermore, as part of our overall green initiatives, we kept our policy of
securing 100% of the energy used in our Polish and Romanian properties from
renewable sources.
Social Initiatives
In the first half of 2025, Globalworth and the Globalworth Foundation
continued with their very active social programme, contributing €130k to
over 17 initiatives in Romania and Poland.
Initiatives to which we contributed included:
Real Estate Hackathon, pioneering event in real estate in Poland, an
initiative designed to merge the world of commercial real estate with
technology. Nearly 100 participants, a total of 21 projects submitted and 48
hours of intensive coding and innovation
· Virtual journeys with Globalworth:
· Continuation of the therapeutic project using virtual reality
(VR) technology for cancer ill children in 2 pediatric hospitals in Wrocław
and Krakow. Over 100 children participated.
· Completed the "Virtual Journeys with Globalworth" project, which
enabled 250 young patients from oncology wards in 6 cities to benefit from
therapeutic VR sessions. Each facility received a VR kit to continue the
activities after the project ended.
Music workshops for children: A series of music workshops for children from
families in need, in cooperation with the Serduszko Association which will be
carried out till December. The workshops aim to support the emotional and
creative development of the participants through regular music sessions.
Blood donation day: organised both in our offices in Romania and Poland for
our community members
Race for the Cure - Our team took part in the 11th edition of Race for the
Cure, Europe's largest charitable sports event dedicated to women's health,
organized by the Fundația Renașterea pentru Sănătatea Femeii.
In addition to these we had several campaigns within our communities among
which it is noteworthy to mention:
Book Clubs - organised for our Bucharest Globalworth Community - We shared our
thoughts, sipped tea and wine, enjoyed cookies, and connected with fellow book
lovers
Bike to Work and No Car Day campaigns - To celebrate World Environment Day, we
dedicated the entire week to our No Car Day initiative across our office
buildings. We supported our community members who chose to bike to work by
offering dedicated bike parking, showers, and secure lockers across our
buildings
Earth Hour - We turned off all non-essential lights in our buildings for Earth
Hour, joining the global movement to protect our planet
Reporting
As part of our effort to improve disclosure in relation to our sustainable
development strategy, initiatives and performance, we published Globalworth's
"2024 Sustainable Development Report".
This is the sixth report published by the Group and has been prepared in
accordance with the GRI Standards: Core option and with the European Public
Real Estate Association's Sustainability Best Practice Reporting
Recommendations (EPRA sBPR).
PORTFOLIO SNAPSHOT
Our real estate investments are in Poland and Romania, the two largest markets
in the CEE. As at 30 June 2025, our portfolio was spread across 9 cities, with
Poland accounting for 54.0% by value and Romania 46.0%.
Combined Portfolio Snapshot (as at 30 June 2025)
Poland Romania Combined Portfolio
Standing Investments((1)) 18 14 32
GAV((2)) / Standing GAV (€m) €1,412m / €1,290m €1,205m / €1,171m €2,616m / €2,461m
Occupancy((3)) 77.5% 95.2% 85.9%
WALL 3.7 years 5.2 years 4.4 years
Standing GLA (k sqm)((4)) 530.1k sqm 481.8k sqm 1,011.8 sqm
Contracted Rent (€m)((5)) €98.3m €89.4m €187.7m
GAV Split by Asset Usage
Office 80.0% 95.7% 87.2%
Mixed-Use 20.0% 0.0% 10.8%
Industrial 0.0% 0.4% 0.2%
Others 0.0% 3.9% 1.8%
GAV Split by City
Bucharest 0.0% 98.9% 45.6%
Constanta 0.0% 0.7% 0.3%
Craiova 0.0% 0.4% 0.2%
Warsaw 42.7% 0.0% 23.1%
Krakow 19.8% 0.0% 10.7%
Wroclaw 17.6% 0.0% 9.5%
Katowice 11.7% 0.0% 6.3%
Lodz 4.1% 0.0% 2.2%
Gdansk 4.0% 0.0% 2.2%
GAV as % of Total 54.0% 46.0% 100.0%
1. Standing Investments representing income producing properties. One
investment can comprise multiple buildings. e.g. Globalworth Campus comprises
three buildings or one investment
2. Includes all property assets, land and development projects valued at 30
June 2025
3. Occupancy of standing commercial properties adjusted with the active leases
related to our social commitments (1,954 sqm in BOC Tower, Bucharest, signed
with social assistance authority) and with the available area of the spaces
leased to GW Flex Sp. Z.o.o, our group entity overseeing the implementation of
flex offices concept in our portfolio, was 76.7%, 94.8% and 85.2% as of 30
June 2025 for Poland, Romania and at group level, respectively.
4. Including 8.9k sqm of residential assets in Romania
5. Total rent comprises commercial (€181.0 million) and residential (€0.3
million in Romania) standing properties and rent in assets under redevelopment
(€6.5 million in Poland)
CAPITAL MARKETS UPDATE
With inflation aligning more closely with central banks' targets, the pressure
on capital markets is beginning to cool off. Trade and geopolitical risks
remain elevated, but businesses have somehow adapted and acknowledged the
importance of considering such risks.
Globalworth's share price in this period continued to trade consistently below
our last reported EPRA NRV, but historically, this is also attributable to the
limited free float of our shares.
After the 2024 successful exchange of our bonds, we consider ourselves better
prepared for the challenges and opportunities ahead, having significantly
strengthened our financial and debt maturity profile.
Fitch reaffirmed the investment grade rating following their July review of
Globalworth andmaintained a stable outlook, while S&P changed the group's
corporate credit rating to BB (from BB+) with a stable outlook.
Equity Capital Markets and Shareholder Structure Update
The first half of 2025 was characterised by a relatively calm macroeconomic
environment with inflation stabilizing around central banks long term targets.
Having this in mind, we look forward with confidence as capital markets should
benefit from this relative stability. However, we keep an eye on the
persistence of trade and geopolitical risks, to be prepared for future
challenges and also opportunities coming from intensification or easing of
such risks.
Real estate valuations have somehow stabilized after several years of higher
uncertainty, which incurred high capital costs. Supported by rental upward
pressure generated by the limited supply of the latest years and by a more
predictable macroeconomic environment, we are starting to see some small
positive valuation uplifts for some of our prime, high-quality assets.
As of 30 June 2025, FTSE EPRA Developed Europe and the FTSE EPRA Global
indices recorded a performance of +6.4% and +4.7%, respectively, for the six
months starting on 1 January 2025, while Globalworth's share price evolution
was at -8.5%, however, we must underline the limited free float of our shares.
Globalworth's share price in this period has been trading consistently below
its last reported 31 December 2024 EPRA NRV level of €5.89 / share, reaching
its lowest closing price on 26 June 2025 at €2.37 per share and its highest
price on 24 Mar 25 at €2.62 per share.
Zakiono Enterprises Ltd, which is jointly and equally owned by CPI Property
Group S.A. ("CPI") and Aroundtown SA ("Aroundtown"), holds 60.9% of the share
capital of the Group, followed by Growthpoint Properties Ltd with 29.6%. As
further proof of their commitment to the business, more than 98% of our
shareholders have chosen the scrip dividend alternative for the dividend
announced and paid during the first semester of 2025.
Globalworth Shareholding
30 June 24 30 June 25
CPI Property Group Together: Zakiono Enterprises 60.8% 60.9%
Aroundtown
Growthpoint Properties 29.5% 29.6%
Oak Hill Advisors 5.3% 4.7%
Others 4.4% 4.8%
Basic Data on Globalworth Shares (Information as of 30 June 2025)
Number of Shares 290.5m plus 0.8m shares held in treasury
Share Capital €1.8bn
WKN / ISIN GG 00B979FD04
Symbol GWI
Free Float 7.4%
Exchange London AIM
Globalworth Share Performance
H1-2024 H1-2025
Market Capitalisation (€ million) - 30 June 649 689
30-June Closing Price (€) 2.44 2.37
52-week high (€) 3.07 2.69
52-week low (€) 2.05 2.23
Dividend paid per share (€) 0.11 0.09
Globalworth H1-2025 Share Price Performance
Bonds Update
We finance ourselves through a combination of equity and debt, and we compete
with many other real estate companies for investor trust to support our
initiatives.
To issue Eurobonds efficiently and benefit from market opportunities, we have
established a Euro Medium Term Notes (EMTN) programme in 2018, allowing the
Group to issue up to €1.5 billion of bonds. From this programme, €950
million was raised through bonds issued in March 2018 and July 2020 (inaugural
green bond), with maturities in 2025 and 2026.
During last year, confronted with high interest rates, investor risk aversion
and the two significant bond maturities, we have refinanced the two bonds
maturing in 2025 and 2026 with new bonds expiring in 2029 and 2030.
Furthermore, following the completion of sale of our industrial portfolio, we
have redeemed additional amounts reaching an aggregated value of €492.3m as
of 30 June 2025.
This proactive approach to managing debt and liquidity underscores GWI's
commitment to maintaining financial health and strategic flexibility in an
evolving market landscape.
Globalworth is rated by two of the three major agencies, with Fitch
maintaining their investment credit rating following their July review of the
Group while keeping the stable outlook and S&P changing the group's
corporate credit rating to BB with a stable outlook.
Rating
S&P Fitch
Rating BB BBB-
Outlook Stable Stable
Basic Data on the Globalworth Bonds
GWI bond 24/29 GWI bond 24/30
ISIN XS2809858561 XS2809868446
Segment Euronext Dublin Euronext Dublin
Minimum investment amount €100,000 and €1,000 thereafter €100,000 and €1,000 thereafter
Coupon 6.250% 6.250%
Issuance volume €307.1 million €333.4 million
Outstanding 30 June 2025 €223.9 million €268.4 million
Maturity 31 March 2029 31 March 2030
Performance of the Globalworth Bonds
H1-2025
GWI bond 24/29
30 June closing price 101.77
Yield to maturity on 30 June 6.2%
GWI bond 24/30
30 June closing price 101.85
Yield to maturity on 30 June 6.2%
Globalworth H1-2025 Eurobond Yield Performance
FINANCIAL REVIEW
Introduction and Highlights
In the first half of 2025, we focused on preserving our cash position and
securing our future financing costs by entering fixed rated financial
instruments, reaching 95.9% from total debt to carry fixed interest rates.
We hold 45% unsecured financing from public debt markets, comprising of two
Eurobonds maturing in 2029 and 2030 accounting for €492.3 million and
€85.0 million facility from the IFC.
Our commitment to responsible financial management remains unwavering
therefore we continue to invest in our standing assets and prioritise ESG
initiatives focused on energy efficiency and tenant comfort.
We measure our performance using a range of metrics widely recognized in the
real estate sector, based on consolidated figures, incorporating our joint
ventures, to show in the best way possible how we manage our portfolio and
operations. Additionally, we report like-for-like metrics and adopt standards
set by EPRA, aimed at enhancing transparency and ensuring comparability across
the European real estate industry.
Revenues Combined Portfolio Value (OMV)1
€115.7 €2.6bn
-7.5% on H1 2024 0.6% on 31 Dec. 2024
NOI(1) NOI(1) Like-for like
€67.0m €68.6m
-7.4% on H1 2024 2.9% on H1 2024
Adjusted normalised EBITDA(1) Adjusted normalised EBITDA(1) Like-for-Like
€57.3m €58.9m
-9.9% on H1 2024 1.6% on H1 2024
IFRS Earnings per share(2) EPRA NRV per share(1,3)
3 cents €5.67
-24 cents in H1 2024 -3.7% on 31 Dec. 2024
EPRA NRV(1,3) EPRA Earnings per share(1,2)
€1,644.8m 6 cents
0.4% on 31 Dec. 2024 11 cents in H1 2024
LTV1,4 Dividends paid in H1 2025 per share
38.0% 9 cents
38.1% at 31 Dec. 2024 11 cents in H1 2024
1. See Glossary for definitions.
2. See note 12 of the unaudited condensed consolidated financial statements
for calculation.
3. See note 20 of the unaudited condensed consolidated financial statements
for calculation.
4. See note 17 of the unaudited condensed consolidated financial statements
for calculation.
2. Revenues and Profitability
Total consolidated revenue generated by our properties in the first half of
2025 was €115.7 million, with €9.3 lower revenue generated compared to the
same period 2024, reflecting a 7% decrease.
From our core revenue stream, we recorded €74.9 million in H1 2025 as rental
income with €74.9 million rental income recorded same period of 2024.
However, on a like for like basis, excluding the €5.9 million recorded in
2024 from disposed properties, our rental income increased with €1.9
million, or 3%, with €3.0 million more income recorded in Poland, while
Romania generated €1.1 million lower rental income.
Overall, our revenues remained relatively evenly split between our two markets
of operation, with Poland taking the lead and accounting for 53% (45% in
H1-2024) and Romania 47% (55% in H1-2024), after the disposal of industrial
properties in 2024.
Revenue share per country
Our Net Operating Income ("NOI"), on a like for like basis, was €68.6
million, €2.0 million higher than H1 2024. However, after considering €1.6
million one-off non recoverable operating costs recorded in H1 2025 and €5.6
million NOI generated in 2024 by the disposed properties, the overall NOI for
H1 2025 was 7% lower reaching €67.0 million.
Majority of our leases are triple net thus most of our operating expenses,
c.83% (c. 83% in H1 2024) on consolidated Group level are reinvoiced to
tenants, or 92% recoveries in Romania and 76% in Poland.
NOI share per country
Adjusted normalised EBITDA lower by 9.9% or €6.3 million, reaching €57.3
million for H1 2025 (€63.6 million for H1 2024) resulted from €5.3 million
decrease in NOI and €1.0 million increase in administrative expenses in
first half. Excluding the industrial contributions from 2024, the
like-for-like adjusted normalised EBITDA, is higher by €1.0 million.
Our finance costs for H1 2025 were €34.7 million (€48.4 million in H1
2024), excluding the one-off debt close-out cost related to bond exchange
exercise in April 2024, of €12.8 million, the cost decreased with €0.9
million, from:
€0.5 million increase in fixed rated bonds interest,
€0.8m lower interest expense for secured and unsecured loans; and
€0.6m lower debt cost amortization
Finance income was €5.5 million, lower by €2.0 million:
€0.9 million less income from short-term and overnight placement with banks,
€0.9 million less interest income on loans receivable from the joint
ventures and
€0.9 million less interest income on discounting.
During H1 2025 we also recorded €0.05 million loss from one joint venture
investment (€13.2 million in H1 2024) since in July 2024 we disposed entire
investment held in the joint venture companies.
The earnings before tax generated in H1 2025 was a gain of €21.2 million,
with only €1.7 million revaluation loss accounted as compared with €50.5
million loss in H1 2024, additional one-off loss recorded from sale of wholly
owned industrial properties of €24.1 million and the loss recorded from
joint ventures of €13.2 million in H1 2024 contributed to total loss of
€65.1 million loss in prior period.
The current income tax expense of €7.6 million (€3.5 million for H1 2024)
include one of withholding tax payable in Poland of €5.9 million and
deferred tax expense increased up to €5.5 million compared to H1 2024 when
we recorded €3.3 million deferred tax income.
EPRA earnings for the first six months of 2025 were €17.7 million (or 6
cents per share), lower by €12.0 million mainly from the decrease in EBITDA
due to properties disposed in 2024 of €5.6 million and additional
withholding tax expense recorded in Poland of €5.9 million. EPRA earnings
per share decline is also amplified by the increase in weighted average number
of shares being of 285.2 million in H1 2025 (259.8 million in H1 2024)
following the issue of scrip dividend shares in October 2024 and April 2025.
IFRS earnings per share of 3 cents (€8.0 million loss) in H1 2025 (24 cents
negative in H1 2024 or €65.3 million loss).
3. Balance Sheet
As of 30 June 2025, we own real estate that makes up most of our assets, with
investment properties and cash equivalents accounting for over 97% of our
total value.
Our combined market value of the investment property portfolio is €2,616
million increased by €16.4 million (31 Dec. 2024: €2,600 million), out of
which €2,608 million is wholly owned investment property and €8 million
(31 Dec. 2024: €8 million) represents the 100% value of the properties owned
by the joint venture company in which we own a 50% stake.
The balance sheet value of our freehold investment property increased under
the effect of small valuation uplift, to €2,608 million, €1,197 million in
Romania and €1,411 million in Poland. We invested in our properties €25.7
million (€10.6 million in Romania and €15.1 million in Poland) and
recorded €207 million fair value losses of €1.7 million. We continued
disposals of residential properties from Romania, with €3.5 million total
fair value of assets sold.
The pie chart below presents further details of our capital expenditure:
CAPEX H1 2025 (€ million)
€25.7m
Our cash position at the end of the first half of 2025 is still strong at
€325.5 million (€333.6 million on 31 December 2024) with €115 million
additional liquidity available from the undrawn facilities.
Total assets at the end of the period were €3,060.4 million, 0.3% higher
compared to 31 December 2024 (€3,049.7 million).
EPRA NRV was €1,644.8 million as of 30 June 2025, 0.4% higher compared to 31
December 2024 (€1,639.0 million). EPRA NRV per share was €5.67 per share
(31 December 2024: €5.89 per share), 3.7% lower. The decrease in EPRA NRV
per share was driven by the increase in the fully diluted number of shares,
with 11.8 million shares issued in April 2025 following the distribution of
scrip divided shares.
4. Dividends
Globalworth distributes bi-annually at least 90% of its EPRA Earnings to its
shareholders. During the first half of 2025, the distributions included the
option to a scrip dividend alternative so that qualifying shareholders can
elect to receive new ordinary shares in the Company instead of cash in respect
of all or part of their entitlement to the dividend. Qualifying shareholders
who validly elect to receive the Scrip Dividend Alternative become entitled to
a number of Scrip Dividend Shares in respect of their entitlement to the
Dividend that is based on a price per Scrip Dividend Share calculated on the
basis of a discount of 20% to the average of the middle market quotations for
the Company's shares on the five consecutive dealing days from and including
the Ex-Dividend Date, the "Reference Price".
The dividend declared for the six-month period ended 31 December 2024 was 9
cents per share. Following the election of scrip dividend 11.8 million new
shares were issued in April 2025, while the Group paid in total €0.5 million
as cash dividend, resulting in 98.2% shareholders opting to reinvest in the
Company.
The results for the period are set out in the consolidated statement of
comprehensive income on page 28.
5. Financing and Liquidity Review
Our key priorities included maintaining strong cash reserves, managing debt
maturities, reduction in weighted average cost of debt and ensuring access to
revolving credit facilities for unexpected needs.
We close monitor our cost of debt with strategies like hedging or adjusting
the fixed versus floating rate debt mix to protect against rising rates.
Additionally, regular compliance checks with debt covenants and exploring
opportunities for further cost of debt reduction is crucial to maintaining
financial flexibility.
Debt Summary
The total debt of the Group at 30 June 2025 was €1,305.5 million (31
December 2024: €1,310.8 million) comprising mainly of medium to long-term
debt, denominated entirely in Euro, out of which €84.6 million is unsecured
loans, €504.9 million New unsecured Notes and €716.0 million secured
loans.
In the first half of 2025 we successfully refinanced €100 million secured
facility, which was expiring in May 2025, by extending it for another five
years. The extension involved swapping two mortgaged properties from
guarantees structure with a new one.
In addition, the Group continued its focus to decrease the cost of debt by
hedging through interest rates swaps additional circa 9% of its debt
facilities reaching total 95.9% fixed debt (31 December 2024: 86.5%).
Therefore the Group continues to maintain a low weighted average interest rate
cost, which as of 30 June 2025 was 4.86% (4.87% as of 31 December 2024), while
the average maturity period is 4.7 years (4.9 years as of 31 December 2024),
as depicted in the chart below.
Strong liquidity € million
Cash balance as at 30 June 2025 325
(+) RCF - undrawn amount 50
(+) Other undrawn facilities 65
Total Liquidity as at 30 June 2025 440
Group's strong cash position is sufficient to cover debt maturities over the
next two years
Liquidity & Loan to value ratio (LTV")
Managing our financial and operational resources has been a key area of focus
for the Group and this careful management has carried on throughout this
period of higher volatility and uncertainty.
From total Group's €325.5 million cash and cash equivalents balance of 30
June 2025 (31 December 2024: € 333.6 million) €28.9 million was restricted
due to various conditions imposed by the financing Banks. In addition, the
Group had available liquidity from committed undrawn loan facilities of €115
million.
The Group's loan to value ratio on 30 June 2025 was 38.0% (38.1% as of 31
December 2024). This is consistent with the Group's strategy to manage its
long-term target LTV of around or below 40%.
Debt Structure as at 30 June 2025
Debt Structure - Secured vs. Unsecured Debt
Our debt as of 30 June 2025 comprises unsecured facilities 44.6% (31 December
2024: 44.4%) of the total debt outstanding. Unsecured facilities included the
two Eurobonds maturing in 2029 and 2030 accounting for €509.2 million and
the €85.0 million facility from the IFC. The remainder debt (55.4%) is
secured with real estate mortgages, pledges on shares, receivables and loan
subordination agreements in favour of the financing banks.
Debt Denomination Currency and Interest Rate Risk
Our loan facilities are entirely Euro denominated, and bear interest based
either on three months or six months Euribor plus a margin (4.1% of the
outstanding balance compared to 13.5% as of 31 December 2024), or at a fixed
interest rate (66.7% of the outstanding balance compared to 66.3% as of 31
December 2024).
As of 30 June 2025, the majority of our debt (66.7% compared to 66.3% 31
December 2024) carries fixed interest rates and 20.5% of debt facilities are
hedged through interest rate swaps.
The high degree of fixed interest rate debt ensures a natural hedging to the
Euro, the currency in which the most significant part of our liquid assets
(cash and cash equivalents and rental receivables) is originally denominated
and the currency for the fair market value of our investment property. Based
on the Group's debt balances on 30 June 2025, an increase of 100 basis points
in the EURIBOR will result in an increase of interest expense of €0.5
million per annum.
Debt Covenants
As of 30 June 2025, the Group is in compliance with all of its debt covenants.
The Group's financial indebtedness is arranged with standard terms and
financial covenants, the most notable as of 30 June 2024 being the following:
Unsecured Eurobonds, Revolving Credit Facility and IFC loan
the Consolidated Coverage Ratio, with minimum value of 150% (covenant value
was aligned for all debt facilities).
the Consolidated Leverage Ratio, with maximum value of 60%.
the Consolidated Secured Leverage Ratio with a maximum value of 30%, and
the Total Unencumbered Assets Ratio, with minimum value of 125% (additional
covenant applicable for the Revolving Credit Facility and IFC loan).
Secured Bank Loans
the debt service cover ratio ('DSCR') / interest cover ratio ('ICR'), with
values starting from 120% (be it either historic or projected), and
the LTV ratio, with contractual values ranging from 45% to 83%.
6. Principal Risks and Uncertainties
The key risks which may have a material impact on the Group's performance,
together with the corresponding mitigating actions, are presented on pages 67
to 71 of the Annual Report for the year ended 31 December 2024, which is
available at www.globalworth.com (http://www.globalworth.com/) .
(http://www.globalworth.com/)
These risks comprise the following:
Market conditions and the economic environment, particularly in Romania and
Poland
Changes in the political or regulatory framework in Romania, Poland or the
European Union
Inflation in Romania and Poland
Execution of investment strategy
Valuation of the portfolio
Inability to lease space
Counterparty credit risk
Sustainable portfolio risk and response to climate change
Lack of available financing and refinancing
Breach of loan covenants
Changes in Interest and foreign exchange rates
Compliance with fire, structural, health and safety, or other regulations, and
Cyber security
There have been no new risks identified during the six-month period ended 30
June 2025, and the identified risks are expected to continue to remain
relevant during the second half of 2025.
7. Going Concern
The Directors have considered the Company's ability to continue to operate as
a going concern based on the Management's cash flow projections for the 15
months subsequent to the date of approval of the unaudited interim condensed
consolidated financial statements. The Directors believe that the Company
would have sufficient cash resources to meet its obligations as they fall due
and continue to adopt the going concern basis in preparing the unaudited
interim condensed consolidated financial statements as of and for the six
months ended 30 June 2025.
GLOBALWORTH REAL ESTATE INVESTMENTS LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD
ENDED 30 JUNE 2025
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE
SIX-MONTH PERIOD ENDED 30 JUNE 2025
30 June 2025 30 June 2024
Unaudited Unaudited
Note €'000 €'000
Revenue 7 115,697 125,034
Operating expenses 8 (48,654) (52,652)
Net operating income 67,043 72,382
Administrative expenses 9 (9,764) (9,287)
Fair value loss on investment property 3 (1,659) (50,527)
Share-based payment expense 21 (128) (167)
Loss on disposal of subsidiary - (24,111)
Depreciation and amortisation expense (554) (404)
Other expenses (1,468) (1,204)
Other income 141 1,162
Foreign exchange loss (1,268) (249)
Profit/(Loss) from fair value of financial instruments at fair value through (2,021) 1,368
profit or loss
Profit/(Loss) before net financing cost 50,322 (11,037)
Finance cost 10 (34,657) (48,386)
Finance income 10.2 5,544 7,528
Share of (loss)/ profit of equity-accounted investments in joint ventures 22 (59) (13,198)
Profit/(Loss) before tax 21,150 (65,093)
Income tax expense 11 (13,119) (154)
Profit/(Loss) for the period 8,031 (65,247)
Items that will not be reclassified to profit or loss
Gain on equity instruments designated at fair value through other - 90
comprehensive income
Other comprehensive income for the period, net of tax - 90
Total comprehensive income for the period 8,031 (65,157)
8,031 (65,247)
Profit/(Loss) attributable to:
- ordinary equity holders of the Company 8,031 (65,292)
- non-controlling interests - 45
8,031 (65,157)
Total comprehensive income attributable to:
- ordinary equity holders of the Company 8,031 (65,202)
- non-controlling interests - 45
Cents
Cents restated*
Earnings per share
- Basic 12 3 (24)
- Diluted 12 3 (24)
The IFRS earnings per share as at 30 June 2024 have been restated following
the IAS 33 'Earnings per share' requirements regarding accounting for scrip
dividend shares issued in the period of 01 January 2025 to 30 June 2025.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
30 June 31 December
2025 2024
Unaudited Audited
Notes €'000 €'000
ASSETS
Investment property 3 2,636,941 2,585,345
Goodwill 12,039 12,039
Advances for investment property 5 2,327 3,625
Investments in joint ventures 22 4,021 3,960
Equity investments 8,200 8,010
Other long-term assets 1,777 1,765
Prepayments 576 259
Non-current financial assets 7,619 3,067
Deferred tax asset 11 2,092 2,629
Non-current assets 2,675,592 2,620,699
Trade and other receivables 14 48,446 51,351
Contract assets 16.2 5,193 5,702
Guarantees retained by tenants 94 97
Income tax receivable 366 118
Prepayments 5,228 2,447
Cash and cash equivalents 15 325,456 333,560
384,783 393,275
Investment property held for sale 3.3 - 35,763
Total current assets 384,783 429,038
Total assets 3,060,375 3,049,737
EQUITY AND LIABILITIES
Issued share capital 18 1,847,540 1,822,934
Treasury shares 21.1 (4,733) (4,752)
Fair value reserve of financial assets at FVOCI (5,379) (5,379)
Share-based payment reserve 67 185
Retained earnings (311,086) (294,036)
Equity attributable to ordinary equity holders of the Company 1,526,409 1,518,952
Total equity 1,526,409 1,518,952
Interest-bearing loans and borrowings 13 1,271,985 1,178,250
Deferred tax liability 11.1 123,780 118,184
Lease liabilities 3.2 26,580 24,414
Deposits from tenants 3,761 3,517
Guarantees retained from contractors 3,120 2,977
Other financial liabilities 2,319 1,882
Trade and other payables - 399
Non-current liabilities 1,431,545 1,329,623
Interest-bearing loans and borrowings 13 33,493 132,581
Guarantees retained from contractors 4,234 4,774
Trade and other payables 41,080 38,048
Contract liability 1,835 320
Current portion of lease liabilities 1,989 1,946
Deposits from tenants 19,255 19,536
Income tax payable 535 816
Current liabilities 102,421 198,021
Liabilities directly associated with the assets held for sale 3.3 - 3,141
Total current liabilities 102,421 201,162
Total equity and liabilities 3,060,375 3,049,737
The financial statements were approved by the Board of Directors on 22
September 2025 and were signed on its behalf by:
Andreas Tautscher,
Director
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE
Issued share capital Share- based payment reserve Fair value reserve of financial assets at FVOCI Non- controlling interests
Treasury shares Retained earnings Total Total Equity
Notes €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
As at 1 January 2025 1,822,934 (4,752) 185 (5,379) (294,036) 1,518,952 - 1,518,952
Interim dividends paid in cash and scrip dividend 19 24,616 19 - - (25,081) (446) - (446)
Transaction costs on issuance of shares for cash (10) - - - - (10) - (10)
Settlement of share-based payment - - (246) - - (246) - (246)
Share - based payment expense 21 - - 128 - - 128 - 128
Loss for the period - - - - 8,031 8,031 - 8,031
Total comprehensive income for the period - - - - 8,031 8,031 - 8,031
At 30 June 2025 1,847,540 (4,733) 67 (5,379) (311,086) 1,526,409 - 1,526,409
Issued share capital Share- based payment reserve Fair value reserve of financial assets at FVOCI Non- controlling interests
Treasury shares Retained earnings Total Total Equity
€'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
As at 1 January 2024 1,769,456 (4,797) - (5,469) (158,066) 1,601,124 1,411 1,602,535
Interim dividends paid in cash and scrip dividend 27,364 24 - - (27,740) (352) - (352)
Transaction costs on issuance of shares for cash (11) - - - - (11) - (11)
Non-controlling interest component of subsidiaries disposed - - - - - - (1,456) (1,456)
Settlement of fair value reserve of equity instruments designated at FVOCI in - - - 90 - 90 - 90
cash
Loss for the period - - - - - (65,382) - (65,337)
Total comprehensive income for the period - - - - (65,292) (65,292) 45 (65,247)
At 30 June 2024 1,796,809 (4,773) - (5,379) (251,098) 1,535,559 - 1,535,559
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2025
30 June 30 June
Notes 2025 2024
€'000 €'000
Operating activities
Profit/(Loss) before tax 21,150 (65,093)
Adjustments to reconcile profit/(loss) before tax to net cash flows:
Fair value adjustment of investment property 3.4 1,659 50,527
Loss on sale of residential properties 19 756
Share-based payment expense 21 128 167
Depreciation and amortisation expense 554 404
Net movement in allowance for expected credit losses 16.2 (264) 277
Net foreign exchange differences 1,268 83
Loss/(gain) from fair valuation of financial instrument at fair value through 2,021 (1,368)
profit or loss
Loss on disposal of subsidiary - 24,111
Share of profit of a joint venture 22.4 59 13,198
Finance income 10.2 (5,544) (7,528)
Finance costs 10 34,657 48,386
Operating profit before changes in working capital 55,707 63,920
Working capital adjustments:
(Increase)/Decrease in contract assets, trade and other receivables 2,647 (3,569)
(Decrease)/Increase in contract liabilities, trade and other payables 4,511 (3,988)
7,158 (7,557)
Interest paid (30,749) (40,697)
Interest received 4,014 4,983
Income tax paid (2,246) (2,924)
Interest received from joint ventures - 407
Net cash flows from operating activities 33,884 18,132
Investing activities
Expenditure on investment property completed and under development or (28,876) (28,927)
refurbishment
Proceeds from disposal of subsidiary 1,000 68,985
Proceeds from sale of investment property 4,271 21,314
Proceeds from sale of financial assets through profit and loss - 3,322
Payments for equity investments (190) (182)
Investment in and loans given to joint ventures 22 - (3,332)
Proceeds from joint ventures for loans given 22 - 3,727
Receipt from equity investments held at FVOCI - 123
Purchase of other long-term assets (566) (614)
Net cash flows from investing activities (24,361) 64,416
Financing activities
Transaction costs of issue of scrip dividend shares (10) (11)
Proceeds from interest-bearing loans and borrowings 13 44,966 25,975
Repayments of interest-bearing loans and borrowings 13 (51,190) (276,953)
Interim dividend paid to equity holders of the Company (net of scrip) 19 (446) (352)
Payment for lease liabilities 3.2 (2,018) (1,779)
Payments for financial assets at fair value through profit or loss (6,136) (2,680)
Payment of bank loan arrangement fees and other financing costs (2,000) (12,925)
Net cash flows (used in)/from financing activities (16,834) (268,725)
Net (decrease) in cash and cash equivalents (7,311) (186,177)
Net foreign exchange difference (793) 201
Cash and cash equivalents on 1 January 15 333,560 396,259
Cash and cash equivalents on 30 June 15 325,456 210,283
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SECTION I: BASIS OF PREPARATION
Basis of Preparation Corporate Information
Globalworth Real Estate Investments Limited ('the Company' or 'Globalworth')
is a company with liability limited by shares and incorporated and domiciled
in Guernsey on 14 February 2013, with registered number 56250. The registered
office of the Company is located at PO Box 336, Fourth Floor, Plaza House,
Admiral Park, St Peter Port, Guernsey, GY1 3UQ. Globalworth, being a real
estate entity, has had its ordinary shares admitted to trading on AIM
(Alternative Investment Market of the London Stock Exchange) under the ticker
"GWI" since 2013.
On 23 July 2021 Zakiono Enterprises Limited, a company wholly owned by Tevat
Limited, became a controlling shareholder by holding 60.6% share capital of
the company through public offer. Tevat Limited is a joint venture between CPI
Property Group S.A. and Aroundtown SA. As of 30 June 2025, Zakiono holds 60.9%
share capital of the company.
The Company's Eurobonds have been admitted to trading on the official List of
the Irish Stock Exchange in April 2024, providing access to an unregulated
secondary market. The main country of operation of the Company is Guernsey.
The Group's principal activities and nature of its operations are mainly
investments in real estate properties, through both acquisition and
development, as set out in the Strategic Report section of the 2024 Annual
Report.
Directors
The Directors of the Company are:
Dennis Selinas, Executive, Group Chief Executive Officer and Member of the
Investment Committee
Martin Bartyzal, Independent Non-Executive, Chair of the Board, Member of the
Remuneration Committee
Norbert Sasse, Non-Executive, Member of the Investment Committee
Richard van Vliet, Independent Non-Executive, Member of the Audit & Risk
Committee and Remuneration Committee
Andreas Tautscher, Senior Independent Non-Executive, Chair of the Audit and
Risk Committee, Member of Nomination Committee
David Maimon, Independent Non-Executive, Member of the Audit & Risk
Committee and Investment Committee
Piotr Olendski, Independent Non-Executive, Chair of the Remuneration Committee
and Member of the Investment Committee
Daniel Malkin, Independent Non-Executive, Chair of the Nomination Committee,
Member of the Audit & Risk Committee
Favieli Stelian, Independent Non-Executive, Chair of the Investment Committee,
Member of the Remuneration Committee
Panico Theocharides, Non-Executive, Member of the Nomination Committee
Basis of Preparation and Compliance
The interim condensed consolidated financial statements of the Group (or
'financial statements' or 'consolidated financial statements') for the six
months ended 30 June 2025 have been prepared in accordance with International
Accounting Standard (IAS) 34 "Interim Financial Reporting". These interim
condensed consolidated financial statements are presented in euros ("EUR" or
"€") and all values are rounded to the nearest thousand ("000") unless
otherwise indicated, being the functional currency and presentation currency
of the Company.
These financial statements have been prepared on a historical cost basis,
except for investment property, financial assets at fair value through other
comprehensive income and financial assets at fair value through profit or loss
that have been measured at fair value.
The Group has prepared the financial statements on the basis that it will
continue to operate as a going concern. The Directors have considered the
Company's ability to continue to operate as a going concern based on the
management's cash flow projections for the 15 months subsequently to the date
of approval of the unaudited interim condensed consolidated financial
statements. The Directors believe that the Company would have sufficient cash
resources to meet its obligations as they fall due to and continue to adopt
the going concern basis preparing the unaudited interim condensed consolidated
financial statements for the six months ended 30 June 2025.
Accounting policies
These consolidated financial statements apply the same accounting policies,
presentation and methods of calculation as those followed in the preparation
of the Group's consolidated financial statements for the year ended 31
December 2024, which were prepared in accordance with International Financial
Reporting Standards ('IFRS') as adopted by the European Union ('EU') and the
Companies (Guernsey) Law 2008, as amended. The interim condensed consolidated
financial statements included in this Interim Report do not include all the
information and disclosures required in the annual financial statements and
should be read in conjunction with the consolidated financial statements for
the year ended 31 December 2024.
Basis of Consolidation
These condensed consolidated financial statements comprise the financial
statements of the Company and its subsidiaries ('the Group') as of and for the
period ended 30 June. Subsidiaries are fully consolidated (refer to note 23)
from the date of acquisition, being the date on which the Group obtains
control, and continues to be consolidated until the date when such control
ceases. The financial statements of the subsidiaries are prepared for the
period from the date of obtaining control to 30 June, using consistent
accounting policies. All intra-group balances, transactions and unrealised
gains and losses resulting from intra-group transactions are eliminated in
full. Non-controlling interest represents the portion of profit or loss, other
comprehensive income and net assets not held by the Group and is presented
separately in the income statement and within equity in the consolidated
statement of financial position, separately from net assets and profit and
loss attributable to the equity holders of the Company.
Foreign Currency transactions and balances
Foreign currency transactions during the period are initially recorded in the
functional currency at the exchange rates approximating those ruling on the
date of the transaction. Monetary assets and liabilities denominated in
foreign currencies other than functional currency of the Company and its
subsidiaries are retranslated at the rates of exchange prevailing on the
statement of financial position date. Gains and losses on translation are
taken to profit and loss. Non -monetary items that are measured in terms of
historical cost in a foreign currency are translated using the exchange rates
as at the dates of the initial transactions. Non-monetary items measured at
fair value in a foreign currency are translated using the exchange rates at
the date when the fair value was determined.
2. Critical Accounting Judgements, Estimates and Assumptions
The preparation of consolidated financial statements in conformity with IFRS
requires management to make certain judgements, estimates and assumptions that
affect reported amounts of revenue, expenses, assets and liabilities, and the
accompanying disclosures and the disclosures of contingent liabilities.
Selection of Functional Currency
The Company and its subsidiaries used their judgment, based on the criteria
outlined in IAS 21 "The Effects of Changes in Foreign Exchanges Rates", and
determined that the functional currency of all the entities is the EUR. In
determining the functional currency consideration is given to the denomination
of the major cash flows of the entity e.g., revenues and financing.
Consequently, the Company uses EURO (€) as the functional currency, rather
than the local currency Romanian Lei ("RON") for the subsidiaries incorporated
in Romania, Polish Zloty ("PLN") for the subsidiaries in Poland and Pounds
Sterling ("GBP") for the Company and the subsidiary incorporated in Guernsey.
Further additional critical accounting judgements, estimates and assumptions
are disclosed in the following notes to the financial statements.
Investment Property, see note 3 and Fair value measurement and related
estimates and judgements, see note 4;
Commitments (operating leases commitments - Group as lessor), see note 6;
Taxation, see note 11;
Trade and other receivables, see note 14;
Share-based payment reserve, see note 21;
Investment in Joint Ventures, see note 22; and
Investment in Subsidiaries, see note 23.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SECTION II: INVESTMENT PROPERTY
This section focuses on the assets on the balance sheet of the Group which
form the core of the Group's business activities. This includes investment
property (both 100% owned by the Group and by the Joint Ventures), related
disclosures on fair valuation inputs, commitments for future property
developments and investment property-leasehold and related lease liability
recognised for the right of perpetual usufruct of the lands.
Further information about the property portfolio is described in the
Management Review section of the Interim Report.
3. Investment Property
Investment property - freehold
Completed investment property Investment property under refurbishment Investment property under development Land for further development Sub-total Investment property leasehold- Right of usufruct of the land TOTAL
Note €'000 €'000 €'000 €'000 €'000 €'000 €'000
1 January 2024 2,598,618 163,000 27,170 31,000 2,819,788 23,297 2,843,085
Subsequent expenditure 46,937 3,139 2,771 57 52,904 - 52,904
Net lease incentive movement 6,600 (570) 236 - 6,266 - 6,266
Capitalised borrowing costs 1 - - - 1 - 1
Transfer to completed investment property 55,510 (50,610) (4,900) - - - -
Disposal during the year (199,785) - (11,726) (11,016) (222,527) - (222,527)
Additions of right of usufruct of the land - - - - - 4,189 4,189
Fair value loss on investment property (91,871) (4,099) (1,251) (641) (97,862) (711) (98,573)
31 December 2024 2,416,010 110,860 12,300 19,400 2,558,570 26,775 2,585,345
Subsequent expenditure 19,847 2,845 - 19 22,711 - 22,711
Net lease incentive movement (3,430) 1,000 - - (2,430) - (2,430)
Disposal during the year (3,466) - - - (3,466) - (3,466)
Transfer from held for sale 33,230 - - - 33,230 2,533 35,763
Additions of right of usufruct of the land 3.2 - - - - - 677 677
Fair value gain /(loss) on investment property 3.4 (1,281) 845 - (19) (455) (1,204) (1,659)
30 June 2025 2,460,910 115,550 12,300 19,400 2,608,160 28,781 2,636,941
3.1 Investment Property - Freehold
Judgements
Classification of Investment Property
Investment property comprises completed property, property under construction
or refurbishment and land bank for further development which are not occupied
substantially for use by, or in the operations of, the Group, nor for sale in
the ordinary course of business, but are held, or to be held, primarily to
earn rental income and for capital appreciation. The Group considers that,
when the property is in a condition which will allow the generation of cash
flows from its rental, the property is no longer a property under development
or refurbishment but an investment property. If the property is kept for sale
in the ordinary course of the business, then it is classified as inventory
property.
Disposal of Investment Property not in the Ordinary Course of Business
The Group occasionally enters into such contracts with customers to sell
properties that are complete. The sale of completed property is generally
expected to be the only performance obligation, and the Group has determined
that it will be satisfied at the point in time when control transfers. For
unconditional exchange of contracts, this is generally expected to be when
legal title transfers to the customer. For conditional exchanges, this is
expected to be when all significant conditions are satisfied. The recognition
and measurement requirements in IFRS 15 are applicable for determining the
timing of derecognition and the measurement of consideration (including
applying the requirements for variable consideration) when determining any
gains or losses on disposal of non-financial assets when that disposal is not
in the ordinary course of business.
3.2 Investment property - Leasehold
Right of Perpetual Usufruct of the Land (the "RPU") or "right-of-use assets"
Under IFRS 16, right-of-use assets that meet the definition of investment
property are required to be presented in the statement of financial position
as investment property. The Group has the right of perpetual usufruct of the
land (the "RPU" or "right-of-use assets") contracts for the property portfolio
in Poland which meet the definition of investment property under IAS 40.
Therefore, the Group has combined its 'Right-of-use assets' being Investment
property - freehold under the line item "Investment property" along with the
investment property - freehold in the statement of financial position. The
corresponding lease liabilities are presented under the line item 'Lease
liabilities' as non-current and the related short-term portion are presented
in the line item "Current portion of lease liability".
3.3 Assets Held for Sale
Judgements and Assumptions Used in the Classification of Investment Properties
as Held for Sale
Even though the Group is committed to selling the properties and actively
looking for buyers, following unsuccessful negotiations with potential buyers,
we concluded that, as of 30 June 2025, the €35.7 million assets no longer
meet the classification in order to be presented as held for sale. Therefore,
the assets were transferred to investment property, €2.5 million to lease
liability line and €0.6 million to corresponding deferred tax liability
line.
Note 31 December 2024 Reclassified during the period 30 June
2025
Completed Investment property 3.1 33,230 (33,230) -
Investment property - leasehold 3.2 2,533 (2,533) -
Investment property held for sale 35,763 (35,763) -
Lease liabilities 3.2 2,498 (2,498) -
Deferred tax liability 11.1 643 (643) -
Liabilities directly associated with the assets held for sale 3,141 (3,141) -
Net assets held for sale 32,622 (32,622) -
3.4 Investment property - Fair value gain/(loss)
30 June 2025 30 June 2024
Note €'000 €'000
Fair value loss on investment property (1,659) (50,527)
- Related to investment property -freehold 3.1 (1,659) (49,834)
- Related to investment property -held for sale 3.3 - (693)
3.5 Sale of investments property
The Group did not record any significant sales of investment property up to
June 2025.
In March 2024 the Group sold Bliski, the property held by Ebgaron sp. z o.o. a
property held for sale and in May 2024, the Group successfully closed the sale
for part of its logistics portfolio with the properties disposed having a
total value of €207 million. The portfolio comprised five logistics /
light-industrial parks with ten facilities in Timisoara, Arad, Oradea and
Pitesti as well as a majority stake in two small business units in Bucharest.
4. Fair Value Measurement and Related Estimates and Judgements
Investment Property Measured at Fair Value
The Group's investment property portfolio for Romania was valued by Colliers
Valuation and Advisory SRL and Cushman & Wakefield International Real
Estate Advisor Ltd and for Poland by Knight Frank Sp. z o.o. and AXI IMMO
Group Sp. z o.o. All independent professionally qualified valuers hold a
recognised relevant professional qualification and have recent experience in
the locations and segments of the investment properties valued using
recognised valuation techniques.
Our Property Valuation Approach and Process
The Group's investment department includes a team that reviews twice in a
financial year the valuations performed by the independent valuers for
financial reporting purposes. For each independent valuation performed, the
investment team along with the finance team:
verifies all major inputs to the independent valuation report.
assesses property valuation movements when compared to the initial valuation
report at acquisition or latest period end valuation report; and
holds discussions with the independent valuer.
The fair value hierarchy levels are specified in accordance with IFRS 13 "Fair
Value Measurement". Some of the inputs to the valuations are defined as
"unobservable" by IFRS 13 and these are analysed in the tables below. Any
change in valuation technique or fair value hierarchy (between level 1, level
2 and level 3) is analysed at each reporting date or as of the date of the
event or variation in the circumstances that caused the change. As of 30 June
2024 (2024: same) the values of all investment properties were classified as
level 3 fair value hierarchy under IFRS 13 and there were no transfers from or
to level 3 from level 1 and level 2.
Valuation Techniques, Key Inputs and Underlying Management's Estimations and
Assumptions
Property valuations are inherently subjective as they are made on the basis of
assumptions made by the valuer. Valuation techniques comprise the discounted
cash flows, the sales comparison approach, and the residual value method.
The Group has based its assumptions and estimates on the parameters available
when the unaudited interim condensed consolidated financial statements were
prepared, including the amendments or possible amendments of the current lease
contracts, delays to non-committed capital expenditure, cost-cutting
initiatives and delays in construction activity. The key assumptions concern
the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next reporting period.
However, all such assumptions or estimates are sensitive to change due to the
current market environment. The climate-related risks are embedded in the
determination of future cash flows that are used for the fair value of
investment properties. Further information is disclosed in Operational Review
and Strategic Review sections of the 2024 Annual report. Such uncertainty is
reflected in the assumptions used for the valuation and the Group disclosed
below the sensitivity to different key inputs to overall valuation.
Key information about fair value measurements, valuation technique and
significant unobservable inputs (Level 3) used in arriving at the fair value
under IFRS 13 are disclosed below:
Fair value
Class of property 30 June 31 December Valuation Technique Country Location Input 30 June 31 December 2024
2025 2024 2025
€'000 €'000
Completed 490,070 486,790 DCF Poland Warsaw Rent per sqm €11.50 - €24.00 €11.50 - €23.00
Investment Discount rate 5.09% - 9.78% 5.71% -10.89%
property Exit yield 6.05% - 7.90% 5.95% - 7.90%
out of which:
Held for sale - (33,230)
632,730 637,030 DCF Poland Regional Rent per sqm €12.50 - €15.50 €12.50 - €15.50
Discount rate 4.45% -16.34% 5.22% -16.03%
Exit yield 6.80% -10.00% 6.80% -10.00%
166,910 163,020 DCF Poland Mixed - used Rent per sqm €13.50 - €24.00 €13.50 - €24.00
Discount rate 6.35% - 8.81% 5.54% - 8.55%
Exit yield 5.67% - 6.90% 5.72% - 7.04%
1,139,300 1,126,800 DCF Romania Office Rent per sqm €2.00 - €40.00 €2.00 - €35.00
Discount rate 8.20% - 9.25% 8.30% - 9.1%
Exit yield 6.75% - 7.45% 6.75% - 7.65%
4,900 4,900 DCF Romania Industrial Rent per sqm €4.35 - €4.35 €4.35 - €4.35
Discount rate 9.50% - 9.50% 9.25% - 9.25%
Exit yield 7.50% - 7.50% 7.75% - 7.75%
9,200 10,000 DCF Romania Residential Rent per sqm €7.72 - €15.75 €7.72 - €24.20
Discount rate 9.75% - 9.75% 9.75% - 9.75%
Exit yield 7.75% - 7.75% 7.75% - 7.75%
17,800 20,700 SC Romania Residential Sales value (sqm) €1,500 €1,500
Sub-total 2,460,910 2,416,010
Investment 6,000 6,000 RM Romania Office Rent per sqm €13.75 - €15.00 €13.75 - €15.00
property under Discount rate 9.50% - 9.50% 9.50% - 9.50%
development Exit yield 7.75% - 7.75% 7.75% - 7.75%
and Capex (€m) €0.00 €0.00
under 121,850 117,160 DCF Poland Mixed - used Rent per sqm €13.75 - €15.00 €15.00 - €15.00
refurbishment Discount rate 9.50% - 9.50% 6.95% - 8.48%
Exit yield 7.75% - 7.75% 6.68% - 6.68%
Capex (€m) €0.00 €0.00
Land bank - for further Rent per sqm €17.00 - €20.00 €16.00 - €20.00
development 19,400 19,400 RM Romania Office Exit yield 7.00% - 7.20% 7.00% - 7.20%
TOTAL 2,608,160 2,558,570
Income approach: Discounted Cash Flows ('DCF'), Residual Method
('RM')
Market approach: Sales Comparison ('SC')
All classes of property portfolio were categorised as Level 3 under the fair
value hierarchy. The fair value movement on investment property recognised, as
loss, in the income statement includes an amount of €1.7 million (June 2024:
loss of €50.5 million) for fair value measurements as of the statement of
financial position date related to investment properties categorised within
Level 3 of the fair value hierarchy. In arriving at estimates of market values
as at 30 June 2025 and 2024, the independent valuation experts used their
market knowledge and professional judgement and did not rely solely on
comparable historical transactions. In these circumstances, there was a
greater degree of uncertainty in estimating the market values of investment
properties than would have existed in a more active market.
Sensitivity Analysis on significant estimates used in the valuation
The assumptions on which the property valuations have been based include, but
are not limited to, rent per sqm (per month), discount rate, exit yield, cost
to complete, comparable market transactions for land bank for further
development, tenant pro file for the rented properties, and the present
condition of the properties. These assumptions are market standard and in line
with the International Valuation Standards ('IVS'). Generally, a change in the
assumption made for the rent per sqm (per month) is accompanied by a similar
change in the rent growth per annum and discount rate (and exit yield) and an
opposite change in the other inputs.
Other Disclosures Related to Investment Property
Interest-bearing loans and borrowings are secured on investment property
freehold, see note 13 for details. Further information about individual
properties is disclosed in the asset management review section in the Interim
Report.
A quantitative sensitivity analysis, in isolation, of the most sensitive
inputs used in the independent valuations performed, as of the statement of
financial position date, are set out below:
€0.5 change in rental value per month, per sqm 25 bps change in market yield 5% change in Capex €50 change in sales prices per sqm 2.5% change in vacancy in Perpetuity1
Investment property Year Country Increase Decrease Increase Decrease Increase Decrease Increase Decrease Increase Decrease
€'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
Completed 2025 Poland 33,110 (33,060) (52,170) 56,380 - - - - (29,294) -
2025 Romania 23,300 (23,700) (41,400) 44,300 - - 500 (500) (12,300) 10,500
2024 Poland 33,500 (33,510) (52,440) 56,630 - - - - (29,000) -
2024 Romania 22,900 (23,000) (40,800) 43,800 - - 600 (600) (12,000) 10,000
Under 2025 Poland - - - - - - - - - -
development 2025 Romania 1,700 (1,700) (1,800) 2,000 (2,300) 2,400 - - - -
2024 Poland - - - - - - - - -
2024 Romania 1,700 (1,700) (1,800) 2,000 (2,300) 2,400 - - - -
Under 2025 Poland 3,270 (3,270) (4,920) 5,320 - - - - (7,320) -
refurbishment 2024 Poland 3,200 (3,200) (4,890) 5,280 - - - - (2,700) -
Further 2025 Romania 2,100 (2,100) (3,300) 3,500 (3,300) 3,300 - - - -
development 2024 Romania 2,100 (2,100) (3,100) 3,400 (3,200) 3,200 - - - -
The vacancy in perpetuity sensitivity analysis is not followed for the Polish
properties portfolio as this factor is considered in the valuation methodology
as part of yields and not a variable in isolation.
4.1 Investment properties owned by Joint Ventures
Completed investment property Investment property under development Land for further development TOTAL
Note €'000 €'000 €'000 €'000
1 January 2024 91,800 - 37,247 129,047
Subsequent expenditure 2,676 - 89 2,765
Net lease incentive movement 662 - (6) 656
Disposal during the year (90,543) - (19,056) (109,599)
Fair value gain/(loss) on investment property (4,595) - (10,374) (14,969)
31 December 2024 22.2 - - 7,900 7,900
30 June 2025 - - 7,900 7,900
Sensitivity analysis on significant estimates used in the valuation of
investment properties owned by the joint venture
As disclosed in note 22, during 2024 the Group disposed 50% interests in
Global Logistics Chitila SRL, Black Sea Vision SRL and Targu Mures Logistics
Hub SRL for a total net consideration to the Company of €56.0 million,
leaving the Group with only a 50% interest in Black Sea Business Park SRL
where investment properties were valued at fair value under the similar Group
accounting policies by Colliers Valuation and Advisory SRL.
As of June 2025, no additional events have taken place.
The table below describes key information about the fair value measurements,
valuation technique and significant unobservable inputs (Level 3) used in
arriving at the fair value under IFRS 13.
Carrying value Range
Class of Joint Venture 30 June 2025 31 December 2024 Valuation technique Country Input 30 June 31 December 2024
property 2025
€'000 €'000
Land bank - for
further development 7,900 7,900 SC Romania Sales value sqm €40.00-€59.00 €33.00-€40.00
TOTAL 7,900 7,900
Income approach: DCF: Discounted Cash Flows, Market approach: SC: Sales
Comparison
A quantitative sensitivity analysis (for properties owned by joint ventures),
in isolation, of the most sensitive inputs used in the independent valuations
performed, as of the statement of financial position date, are set out below.
Generally, a change in the assumption made for the estimated rental value is
accompanied by a directionally similar change in the rent growth per annum and
the discount rate (and exit yield), and an opposite change in the long-term
vacancy rate.
0.5 euro change in rental value per month per sqm 25 bps change in market yield 5% change in capex €1.5 change in sales prices per sqm 2.5% change in vacancy in perpetuity
Joint ventures Increase Decrease Increase Decrease Increase Decrease Increase Decrease Increase Decrease
Investment Property Year Country €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
- Further 2025 Romania - - - - - - 400 (400) - -
development 2024 Romania - - - - - - 400 (400) - -
The Group is committed to responding to the effects of climate change and its
Sustainability Policy covers the impact of the Group's operations and
processes, the long-term environmental performance of the properties owned and
developed, as well as the reduction of energy consumption and greenhouse gas
emissions. The Group, therefore, actively invests in properties which are
either certified as environmentally friendly or have the potential to be
classified as such following our own initiatives.
The Company conducted a climate change transition and physical risks and
opportunities assessment, across its value chain, in alignment with TCFD
recommendations (i.e. Task Force on Climate-Related Financial Disclosures).
Climate analysis indicates that the probability of floods to occur is very
likely across RCPs climate scenarios (2.6, 4.5 and 8.5 W/m 2) for several
locations in Poland and likely in Romania, where construction operations are
in progress. As Globalworth considers that extreme precipitation and flood
events will increase and that direct operations might be compromised, it is
investing in solutions that will provide business continuity. Already, we are
implementing procedures and flood protection has been purchased for the
majority of the properties, as we consider flooding to be one of the main
natural hazards occurring in Poland and Romania, which, in certain
circumstances, may take the form of a disaster.
5. Advances for investment Property
30 June 31 December
2025 2024
€'000 €'000
Advances for land and other property acquisitions 0 0
Advances to contractors for investment properties under development 2,327 3,625
2,327 3,625
6. Commitments
Commitments for Investment Property
As at 30 June 2025 the Group had agreed the construction contracts with third
parties and is consequently committed to future capital expenditure in respect
of completed investment property of €11 million (2024: €11.2 million) and
had committed with tenants to incur incentives (such as fit-out works and
other lease incentives) of €8.3 million (2024: €11.5 million).
As of 30 June 2025, the Group's joint ventures had no commitments for the
construction of investment property (2024: nil).
Judgements Made for Properties Under Operating Leases, being the lessor
The Group has determined, based on an evaluation of the terms and conditions
of the arrangements, that it retains all the significant risks and rewards of
ownership of the investment properties leased to third parties and, therefore,
being the lessor accounts for these leases as operating leases.
The duration of these leases is one year or more (2024: one year or more) and
rentals are subject to annual upward revisions based on the consumer price
index. The future aggregate minimum rentals receivable under non-cancellable
operating leases for investment properties - freehold are as follows:
30 June 31 December
2025 2024
€'000 €'000
Not later than 1 year 181,761 180,106
Later than 1 year and not later than 5 years 549,911 548,850
Later than 5 years 99,174 96,836
830,846 825,792
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SECTION III: FINANCIAL RESULTS
This section quantifies the financial impact of the operations for the period;
further analysis on operations is presented in the Financial Review section of
the Interim Report. This section includes the results and performance of the
Group, including earnings per share and EPRA Earnings. This section also
includes details about the Group's tax position in the period and deferred tax
assets and liabilities held at the period end.
7. Revenue
Revenue from asset management fees, marketing and other income are recognised
at the time the service is provided.
30 June 30 June 2024
2025 €'000
€'000
Contracted rent 94,511 96,554
Adjustment for lease incentives (19,572) (17,625)
Rental income 74,939 78,929
Revenue from contracts with customers
Service charge income 39,973 37,254
Fit-out services income 264 8,297
Income from other services rendered 422 100
Asset management fees - 77
Marketing and other income 99 377
40,758 46,105
115,697 125,034
The total contingent rents and surrender premia recognised as rental income
during the period amount to €0.9 million (30 June 2024: €1.2 million) and
€1 million (30 June 2024: €0.9 million), respectively.
8. Operating Expenses
30 June 30 June
2025 2024
€'000 €'000
Property management, utilities and insurance 44,789 42,900
Property maintenance costs and other non-recoverable costs 3,250 1,616
Expenses related to other services rendered 350 188
Property expenses arising from investment property that generate rental income 48,389 44,704
Property expenses arising from investment property that did not generate 13 23
rental income
Fit-out services costs 252 7,925
48,654 52,652
9. Administrative expenses
30 June 30 June
2025 2024
€'000 €'000
Directors' emoluments 439 574
Salary and remuneration costs 5,366 4,752
Accounting, secretarial and administration costs 445 231
Legal and other advisory services 885 664
Audit and non-audit services 649 587
Corporate social responsibility 16 111
Travel and accommodation 180 123
Marketing and advertising services 958 920
Office and IT expenses 377 353
Stock exchange expenses 449 482
Restructuring costs - 490
9,764 9,287
10. Finance Cost
Note 30 June 30 June
2025 2024
€'000 €'000
Interest on secured loans 14,101 14,147
Interest on unsecured credit facilities 1,717 2,473
Interest on fixed rate unsecured Notes 15,226 14,666
Debt cost amortisation and other finance costs 10.1 2,549 3,098
Debt close-out costs - 12,810
Interest on lease liabilities 3.2 862 1,054
Bank charges 202 138
Finance cost expensed during the period 34,657 48,386
1 Debt cost amortisation and other finance costs
30 June 30 June
2025 2024
€'000 €'000
Debt issue cost amortisation - secured bank loans 608 779
Debt issue cost amortisation - unsecured facility 207 505
Debt issue cost amortisation - fixed rate Notes 1,734 1,814
2,549 3,098
1 Finance income
Note 30 June 30 June
2025 2024
€'000 €'000
Income from bank deposits 4,014 4,983
Interest income from loans to joint ventures 22 120 998
Interest income on deferred sale consideration for subsidiary disposal 1,289 1,296
Other finance income 121 251
5,544 7,528
11. Taxation
30 June 30 June
2025 2024
€'000 €'000
Current income tax expense 7,629 3,450
- Related to current period 5,479 3,844
- Related to prior period 2,150 (394)
Deferred tax expense/(income) 5,490 (3,296)
13,119 154
Current income tax expense
The Company is tax resident in Guernsey and subject to Guernsey tax rules and
does not fall in the scope of the Pillar Two model rules. The subsidiaries in
Romania, Poland and Cyprus are subject to tax on local sources of income. The
current income tax expense of €7.6 million (June 2024: €3.5 million
income) represents the profit tax for the Group. The taxable income arising in
each jurisdiction is subject to the following standard corporate income tax
rates: Poland at 19% (however small entities with revenue up to €2 million
in the given tax year and entities starting a new business for their first tax
year of operation, under certain conditions, are charged a reduced rate of
9%), Romania at 16% and Cyprus at 12.5%.
The Group's subsidiaries in Poland are subject to the minimum tax, which is
applied to income from ownership of certain high- value fixed assets having an
initial value of the asset exceeding PLN 10 million at a rate of 0.035% per
month. From 2019, the taxpayer has a right to apply for the refund of
previously paid minimum tax which was not deducted from the advance corporate
income tax. This minimum tax can be set off against CIT if CIT is higher. The
tax is applied only to leased buildings while no tax applies on vacant
buildings or on vacant space in partially occupied buildings.
Starting 1 January 2024, there is an additional minimum tax on turnover
introduced in Poland and it is applicable to taxpayers declaring tax losses or
negligible income (≤ 2% of revenue) from a source of income other than
capital gains. Therefore, the Polish entities are captured by this new rule,
and they will be paying the higher amount of tax between corporate income tax
or a minimum tax on turnover. The minimum tax related to real estate companies
is not deducted from the additional minimum tax.
The additional minimum income tax rate amounts 10% and the tax base is
calculated as the sum of: the amount corresponding to 1.5% of taxable
operational income other than capital gains, excessive debt financing costs
paid to related entities exceeding 30% of the so called tax EBITDA plus costs
of intangible services or royalties paid to related entities exceeding PLN 3
million plus 5% of the tax EBITDA. There are certain additional conditions on
which the entity can be exempt from paying the minimum tax, e.g. the average
joint taxable income other than capital gains for the related entities in
Poland (for the companies belonging to a group, in which one entity holds,
directly or indirectly, at least 75% of the share capital of the other
entities throughout the tax year) is higher than 2% of joint revenue other
than capital gains. For 2024 the additional minimum tax on turnover was not
applicable for Polish entities in 2024.
Starting 1 January 2024, there is a minimum tax on turnover introduced in
Romania and it applies to entities which have a turnover over certain limit.
Therefore, the Romanian entities which are part of the tax unity will be
captured by this new rule, and they will be paying the higher amount of tax
between corporate income tax or a minimum tax on turnover. The minimum tax on
turnover is 1% applicable on certain adjusted elements of income.
The Group's subsidiaries registered in Cyprus need to comply with the National
tax regulations; the most significant future sources of income of the Group
subsidiaries registered in Cyprus are dividend and interest income. Dividend
income is tax exempt under certain conditions and interest income, however, is
subject to corporate income tax at the rate of 12.5% in Cyprus.
Judgements and Assumptions Used in the Computation of Current Income Tax
Liability
There are uncertainties in Romania and Poland where the Group has significant
operations and this is due to the interpretation of complex tax regulations,
changes in tax laws, and the amount and timing of future taxable income.
Differences arising between the actual results and the assumptions made, or
future changes to such assumptions, could necessitate future adjustments to
tax income and expense already recorded. Such differences of interpretation
may arise on a wide variety of issues depending on the conditions prevailing
in the respective company's domicile. In Romania and Poland, the tax position
is open to further verification for five years and no subsidiary in Romania
has had a corporate income tax audit in the last five years, while in Poland
some entities are currently under tax audit with respect to the corporate
income tax and withholding tax settlements for the fiscal years 2018, 2019,
2020 and 2021.
The tax regulations regarding withholding taxes in Poland significantly
changed in recent years, while the Polish tax authorities have issued new
non-binding guidance and interpretation with respect to law provisions related
to past periods. The ongoing tax audits regarding withholding tax are at
various stages for Polish subsidiaries, but as of the publication date of
these financial statements, they have not been finalized. Several entities in
Poland have been subject to tax inspections by the Polish Tax Authorities
("PTA") for tax during last few years purposes with respect to payments made
to a foreign recipient of income. The tax inspections will be finalized during
2025 and based on the estimate as of 30 June 2025 when the tax audits were not
finalized, the total estimated exposure for entities subject to tax audit will
be around €5.8 million that have been recorded as a tax liability as of 30
June 2025. The entities will amend the tax returns and pay the tax liability
without challenging the respective amounts. This will close the ongoing tax
audits are at various stages, mitigate the tax exposure and supplementary
efforts".
Deferred tax (asset)/liabilities
30 June 31 December
2025 2024
Note €'000 €'000
Deferred tax asset (2,092) (2,629)
Deferred tax liabilities directly associated with the assets held for sale 3.3 - 643
Deferred tax liabilities 123,780 118,184
121,688 116,198
Deferred income tax expense
Consolidated statement of financial position Consolidated statement of comprehensive income
30 June 31 December 2024 30 June 30 June
2025 2025 2024
Net Deferred Tax €'000 €'000 €'000 €'000
Valuation of investment property at fair value 129,029 124,032 4,997 (5,919)
Deductible temporary differences (1,924) (2,306) 382 135
Interest expense and foreign exchange loss on intra-group loans (4,022) (4,421) 399 2,411
Discounting of tenant deposits and long-term deferred costs 139 146 (7) (10)
Share issue cost recognised in equity (7) (7) - -
Valuation of financial instruments at fair value (572) (158) (414) (511)
Recognised unused tax losses (955) (1,088) 133 598
121,688 116,198 5,490 (3,296)
The deferred tax assets for deductible temporary differences are related to
allowances recorded for trade receivables, in amount of €0.6 million (2024:
€0.8 million) in Romania and €1.4 million (2024: €1.5 million) in
Poland. The Group is also recording deferred tax assets for unused tax losses
and carried forward Interest expense and foreign exchange loss on intra-group
loans. The unused assessed tax losses carried forward of €8.5 million (2024:
€8.8 million) in Romania and €11.3 million (2024: €15.1 million) in
Poland are available for offset against future taxable profits of the entity
which has the tax losses. The tax losses recorded by Romanian subsidiaries
before 1st January 2025 can be carried forward for seven years from the year
of generation. However, starting 2025, tax losses can be used up to 70% of the
taxable income computed by the entity. Also, the tax losses incurred from 1
January 2025 can be carried forward only for five consecutive years and within
the 70% limit mentioned above.
The tax losses in Poland can be carried forward for a period of five
consecutive tax years from the year of origination. In Poland, in any
particular tax year, the taxpayer may not deduct more than 50% of the loss
incurred in the year for which it was reported. Additionally, starting from
2020, the taxpayer may utilize one-time tax losses generated after 31 December
2018 in the amount of greater than PLN 5 million or 50% of tax loss of a given
fiscal year in the following five fiscal years. As of the statement of
financial position date the Group recognized deferred tax assets of €1
million (2024: €1.1 million) in Romania and Poland for which deferred tax
asset recognition criteria were met under IAS 12, out of the total available
deferred tax assets of €4.1 million (2024: €4.3 million), calculated at
the corporate income tax rates of 16% in Romania and 19% (9% for small
entities) in Poland.
Therefore, the available deferred tax assets, €4.1 million (2024: €6.1
million) deferred tax asset was not recognised (Romania and Poland) in the
income statement of the Group as the amount could not be utilised from the
future taxable income as per the criteria under IAS 12.
Expiry year 2025 2026 2027 2028 2029 2030 2031 Total
Total available deferred tax assets (€m) 0.3 1.0 0.7 1.0 0.9 0.3 0.0 4.1
Temporary non-deductible interest expenses and net foreign exchange
There are also temporary non-deductible interest expenses and net foreign
exchange losses of €241.1 million, €50.3 million in Romania and €190.8
million in Poland (2024: €223.9 million, €41.7 million in Romania and
€182.2 million in Poland) related to intercompany and bank loans. Each year
an amount up to 30% of tax EBITDA not less than PLN 3 million would become
tax-deductible, for which €4.0 million (€0.1 million in Romania and €3.9
million in Poland) deferred tax asset was recorded (2024: €4.4 million,
€0.3 million in Romania and €4.1 million in Poland).
In Romania such temporary non-deductible interest expenses can be carried
forward indefinitely until they are tax deductible as per EBITDA threshold.
Nevertheless, starting 1 January 2025, the threshold for deductibility of
interest expense which will be subject to 30% of tax EBITDA is decreased from
€1 million to €500,000. On the other hand, in Poland, the interest expense
which was already paid prior to the financial position date (and corresponding
net foreign exchange loss on such interest expense) can only be utilized over
five consecutive tax years from the year of origination and unpaid interest
expense (and corresponding net foreign exchange loss on such interest expense)
is available for utilization indefinitely.
As of 30 June 2025, out of the total €3.7 million (2024: €4.1 million)
deferred tax asset on interest expense and foreign exchange loss recognised in
Poland, €1.6 million (2024: €1.5 million) is available for utilisation in
five years from the origination.
Judgements, Estimates and Assumptions Used for Assessed Tax Losses and Related
Deferred Tax Assets
At each statement of financial position date, the Group assesses whether the
realisation of future tax benefits is sufficiently probable to recognise
deferred tax assets. This assessment requires the exercise of judgement on the
part of management with respect to, among other things, benefits that could be
realised from available tax strategies and future taxable income, as well as
other positive and negative factors. Based on the above assessment, the Group
recognised deferred tax expense related to deferred tax asset for fiscal
losses carried forward for an amount of €0.1 million (2024: deferred tax
expense of €0.6 million).
The recorded amount of total deferred tax assets could be reduced if estimates
of projected future taxable income or if changes in current tax regulations
are enacted that impose restrictions on the timing or extent of the Group's
ability to utilise future tax benefits.
12. Earnings Per Share
The following table reflects the data used in the calculation of basic and
diluted earnings per share per IFRS and EPRA guidelines:
Number of shares issued % of the period Weighted average
Date Event Note ('000) Period ('000)
1 Jan 2024 At the beginning of the year 257,242 257,242
1 Jan 2024 New shares issued for scrip dividend (April 2025)* 18 2,367 100% 2,367
10 Apr 2024 New shares issued for scrip dividend (April 2024)* 11,169 73% 8,109
30 June 2024 Shares in issue at period-end (basic) 270,778 267,718
01 Apr 2024 Share letters given to employees in Romania 41 50% 20
30 June 2024 Shares in issue at year-end (diluted) 270,820 267,739
1 Jan 2025 At the beginning of the year 280,827 280,827
08 Apr 2025 New shares issued for scrip dividend (April 2025) 18 9,468 46% 4,366
30 June 2024 Shares in issue at period-end (basic) 290,294 285,192
1 Jan 2025 Share letters given to employees in Romania 41 100% 41
23 May 2025 Share option letters bought back from employees (41) 21% (9)
30 June 2025 Shares in issue at year-end (diluted) 290,294 285,225
Subsequent to 30 June 2025, no new shares were issued.
30 June 2025 €'000 30 June 2024 €'000
Loss attributable to equity holders of the Company for the basic and diluted 8,031 (65,292)
earnings per share
Restated*
IFRS earnings per share Cents Cents
- Basic 3 (24)
- Diluted 3 (24)
* The IFRS earnings per share as of 30 June 2024 have been restated following
the IAS 33 "Earnings per share" requirements regarding accounting for scrip
dividend issued in 2025, the number of Scrip Dividend Share being calculated
based on a discount of 20%.
EPRA Earnings Per Share
The following table reflects the reconciliation between IFRS earnings as per
the statement of comprehensive income and EPRA earnings (non-IFRS measure):
30 June 30 June
2025 2024
€'000 €'000
Note
Earnings per IFRS income statement 8,031 (65,292)
Changes in value of investment property 3.4 1,659 50,527
Changes in value of financial instruments 2,021 (1,368)
Losses on disposal of investment properties 19 1,286
Losses on disposal of subsidiaries - 24,111
Loan close-out costs 10.1 - 12,810
Deferred tax charge in respect of above 4,583 (6,430)
Non-controlling interests share of above - (2)
Adjustments in respect of joint ventures for above items - 14,130
One off other income/ expense 1,423 -
EPRA earnings attributable to equity holders of the Company 17,736 29,772
Restated*
EPRA earnings per share Cents Cents
- Basic 6 11
- Diluted 6 11
* EPRA earnings per share as of 30 June 2024 have been calculated based on
weighted average of the diluted number of shares following the IFRS
requirements.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SECTION IV: FINANCIAL ASSETS AND LIABILITIES
This section focuses on financial instruments, together with the working
capital position of the Group and financial risk management of the risks that
the Group is exposed to at period end.
13. Interest-Bearing Loans and Borrowings
This note describes information on the material contractual terms of the
Group's interest-bearing loans and borrowings. For more information about the
Group's exposure to market risk, currency risk and liquidity risks, see note
16.
30 June 31 December
2025 2024
€'000 €'000
Current portion of: 16,373 115,086
Secured loans and accrued interest
Unsecured loans, fixed-rate bonds and accrued interest 17,120 17,495
Sub-total 33,493 132,581
Non-current 699,643 601,584
Secured loans
Unsecured loans and fixed-rate bonds 572,342 576,666
Sub-total 1,271,985 1,178,250
TOTAL 1,305,478 1,310,831
1 Key terms and conditions of outstanding debt
30 June 2025 31 December 2024
Face value Carrying Face value Carrying
value value
Facility Nominal interest rate Maturity date €'000 €'000 €'000 €'000
Loan 16 EURIBOR 3 month + margin March 2031 9,237 9,193 9,763 9,715
Loan 38 Fixed/Floating rate + margin May 2025 - - 100,110 100,070
EURIBOR 3 month + margin
Loan 41 EURIBOR 3 month + margin March 2029 82,574 82,214 83,872 83,466
Loan 44/45 Fixed rate February 2027 62,293 62,205 62,295 62,180
Loan 46 Fixed rate November 2029 65,043 64,661 65,043 64,625
Loan 51 EURIBOR 6 month + margin May 2028 85,133 84,555 85,142 84,465
Loan 55 EURIBOR 3 month + margin October 2030 145,307 144,061 145,329 143,984
Loan 56 EURIBOR 3 month + margin December 2030 43,007 42,713 43,806 43,491
Loan 57 EURIBOR 3 month + margin June 2034 54,020 53,731 55,267 54,962
Loan 58 EURIBOR 6 month + margin February 2036 23,370 23,096 24,127 23,840
Loan 59 Fixed rate Bond March 2029 237,511 235,090 230,147 227,369
Loan 60 Fixed rate Bond March 2030 273,271 269,817 280,180 276,245
Loan 61 EURIBOR 3 month + margin October 2031 42,134 41,626 42,281 41,976
Loan 62 EURIBOR 3 month + margin December 2031 94,405 93,162 95,191 94,443
Loan 63 EURIBOR 3 month + margin March 2030 100,177 99,354 - -
1,317,482 1,305,478 1,322,553 1,310,831
Unsecured corporate Bonds
In April 2024, the Company successfully completed a bond exchange exercise
thus €142.9 million nominal value of 18/25 Notes was repaid and thus €66.6
million nominal value of 20/26 Notes was repaid. The remaining nominal value
of €307.1 million and €333.4 million were exchanged into two new 6.25%
Senior Notes due in March 2029 and in March 2030. In accordance with the terms
and conditions of the bonds, following the disposal of the logistic properties
in May 2024 (see note 3.5), in June 2024 the Company used part of the net
proceeds received from the sale to redeem at par €45 million of the Notes
due 2029 and €20 million of the Notes due 2030. As of 30 June 2025, the
Company holds €223.9 million of the Notes due 2029 and €268.4 million of
the Notes due 2030.
Financial covenants for unsecured corporate Bonds
Financial covenants on unsecured fixed rate bonds are calculated on a semi
-annual basis at 30 June and 31 December each year and include the
Consolidated Coverage Ratio, with minimum value of 150%, the Consolidated
Leverage Ratio, with maximum value of 60%, and the Consolidated Secured
Leverage Ratio with a maximum value of 30%.
Unsecured Revolving Credit Facility
As of 30 June 2025, we held €50 million available until December 2025.
New secured facilities
In November 2024, the Group entered into two new ten-year term loans for €30
million and €35 million with Banca Transilvania secured with office
buildings of the Group. Both facilities were drawn in full on 13 August 2025.
In April 2025, the Group successfully refinanced €100 million secured
facility, which was expiring in May 2025, by extending it for another five
years. The extension involved swapping two mortgaged properties from
guarantees structure with a new one.
Financial covenants
Financial covenants on secured loans are calculated based on the individual
financial statements of the respective subsidiaries, as of each calculation
date specified in the loan agreement, on an annual, bi-annual or quarterly
basis, and subject to the following ratios:
· gross loan-to-value ratio ("LTV") with maximum values ranging from
45%-83% (2024: 45%-83%). LTV is calculated as the loan value divided by the
market value of the relevant property;
· the debt service cover ratio ("DSCR") minimum values of 120% (2024:
120%). DSCR is calculated, depending on the respective credit facility, on the
preceding 12-months historical ratio or projected future 12-months period
ratio;
· minimum interest cover ratio ("ICR") projected with minimum values
from 140% (2024: 140%), which was applicable to two properties as at 30 June
2025 (31 December 2024: two). Historic ICR is calculated as Actual Net Rental
Income as a percentage of the Actual Interest Costs for the 12 preceding
months period from the calculation date. Projected ICR is calculated as
Projected Net Rental Income as a percentage of the Projected Interest Costs
for the 12-month period commencing immediately after the date of the
calculation; and
· debt yield ratio ("DYR") with minimum values of 5%. DYR is
calculated as the 12-month projected Net Operating Income divided by the loan
outstanding value at a relevant calculation date.
Secured bank loans are secured by investment properties which were recognised
in the statement of financial position at fair value of €1,603.4 million at
30 June 2025 (2024: € 1,554 million) and also carry pledges on rent and
other receivable balances of €8.2 million (2024: €13.9 million), VAT
receivable balances of €1.3 million (2024: €2.0 million) and a movable
charge on the respective bank accounts (refer to note 15).
The Group is in compliance with all financial covenants and there was no
payment defaults during the period ended 30 June 2025 (2024: same). As of 30
June 2025, the Group had undrawn borrowing facilities of €115 million (2024:
€115 million). Out of this, €65 million facilities were drawn in August
2025 and €50 million RCF is available until December 2025.
1 Loan from non-controlling interest holders to a subsidiary
In July 2024, the Group provided €3.9 million loan to Black Sea Business
Park SRL, representing 50% of acquisition price for purchased investment
property which were financed through shareholders loans from the minority
shareholder in proportion to the equity interest in the Company. The loans are
unsecured and carry a variable interest of EURIBOR 3 month + margin.
14. Trade and Other receivables
30 June 31 December
2025 2024
€'000 €'000
Rent and service charges receivable 13,788 16,643
VAT and other taxes receivable 4,568 6,784
Consideration receivable for subsidiary disposal 25,079 24,790
Guarantees paid to suppliers 1,547 1,579
Advances to suppliers for services 3,092 1,261
Sundry debtors 372 294
48,446 51,351
Rent and Service Charges receivable
Rent and service charges receivable are shown, in the above table, net of an
allowance for expected credit losses of €5.3 million (2024: €6.5 million).
Rent and service charges receivable are non-interest-bearing and are typically
due within 30-90 days (see more information on credit risk and currency
profile in note 16.2). For the terms and conditions for related party
receivables, see note 25.
Consideration Receivable for Subsidiary Disposal
The consideration receivable for the Warta disposal in 2023 of €20 million
will be received in October 2025. The receivable carries interest of 13% p.a.
Total consideration, including accrued interest receivable as of 30 June 2025
was €25.1 million (2024: €24.8 million).
15. Cash and Cash Equivalents
30 June 31 December
2025 2024
€'000 €'000
Cash at bank and in hand 113,116 96,907
Short-term deposits 212,340 236,653
Cash and cash equivalents at period end 325,456 333,560
Cash at bank and in hand includes restricted cash balances of €17.7 million
(2024: €8.9 million) and short-term deposits include restricted deposits of
€11.3 million (2024: €12 million). The restricted cash balance can be used
to repay the outstanding debts and repayment of deposits to tenants.
Details of cash and cash equivalents denominated in foreign currencies are
disclosed in note 16.1.
Short-term deposits are made for varying periods depending on the immediate
cash requirements of the Group and earn interest at rates on Euro deposits
ranging from 0% to positive 4.3% (2024: minus 0.2% to positive 4.5%) per
annum, for RON deposits from 3.7% to 6.6% (2024: 3.9% to 5.6%) per annum and
for PLN deposits from nil% to 3.9% (2024: from nil to 3.9%) per annum. For RON
deposits the highest interest rate was earned on overnight deposits.
16. Financial Risk Management - Objective and Policies
The Group is exposed to the following risks from its use of financial
instruments:
Market risk (including currency risk, interest rate risk).
Credit risk.
Liquidity risk.
Refer to the Principal Risks & Uncertainties section on the Annual Report,
pages 65 to 71, for further details on the Group's Risk Management Framework,
covering Business Environment Risks, Property Portfolio Risks, Financial,
Financing & Liquidity Risks and Regulatory Risks.
1 Market Risk
Market risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market prices.
The Group's market risks arise from open positions in: (a) foreign currencies;
(b) interest-bearing assets and liabilities, (c) investments in equity
instruments and (d) fair value of investment property - refer to note 4, to
the extent that these are exposed to general and specific market movements.
1 a) Foreign currency risk
The Group has entities registered in several EU countries, with the majority
of the operating transactions arising from its activities in Romania and
Poland.
Therefore, the Group is exposed to foreign exchange risk, primarily with
respect to the Romanian Lei ("RON") and Polish Zloty ("PLN"). Foreign exchange
risk arises in respect of those recognised monetary financial assets and
liabilities that are not in the functional currency of the Group.
The Group's exposure to foreign currency risk was as follows (based on nominal
amounts):
30 June 2025 31 December 2024
Denominated in Denominated in
Amounts in €'000 equivalent value RON PLN GBP USD RON PLN GBP USD
ASSETS
Cash and cash equivalents 14,818 18,673 28 19 23,974 22,186 71 12
Trade and other receivables 10,744 10,005 - - 11,085 14,010 - -
Contract assets 4,774 1,300 - - 4,111 2,473 - -
Income tax receivable - 365 - - - 116 - -
Total 30,336 30,343 28 19 39,170 38,785 71 12
LIABILITIES
Trade and other payables 12,592 22,282 - - 15,519 10,040 - -
Lease liability - 28,569 - - - 28,858 - -
Income tax payable 300 250 - - 551 263 - -
Guarantees from subcontractors 514 4,054 - - 530 3,357 - -
Deposits from tenants 4,554 6,573 - - 4,511 7,129 - -
Total 17,960 61,728 - - 21,111 49,647 - -
Net exposure 12,376 (31,385) 28 19 18,059 (10,862) 71 12
Foreign Currency Sensitivity Analysis
As of the statement of financial position date, the Group is mainly exposed to
foreign exchange risk in respect of the exchange rate fluctuations of the RON
and PLN. The following table details the Group's sensitivity (impact on income
statement before tax and equity) to a 5% devaluation in RON, PLN and GBP
exchange rates against the Euro, on the basis that all other variables remain
constant.
The 5% sensitivity rate represents management's assessment of the reasonably
possible change in foreign exchange rates. The sensitivity analysis includes
only outstanding foreign currency denominated monetary items and adjusts their
translation at the reporting date for a 5% appreciation in the Euro against
other currencies.
30 June 2025 31 December 2024
Profit or Equity Profit or (loss) Equity
(loss)
All amounts in €'000
RON (619) (619) (903) (903)
PLN 1,569 1,569 543 543
USD (1) (1) (1) (1)
GBP (1) (1) (4) (4)
A 5% devaluation of the Euro against the above currencies would have had an
equal but opposite impact on the above currencies to the amounts shown above,
on the basis that all other variables remain constant.
1 b) Interest Rate Risk
Interest rate price risk is the risk that the value of a financial instrument
will fluctuate due to changes in market interest rates relative to the
interest rate that applies to the financial instrument. Interest rate cash
flows risk is the risk that the interest cost will fluctuate over time.
The Group's interest rate risk principally arises from interest-bearing loans
and borrowings. As at 30 June 2025, 66.7% of the total outstanding balance of
interest-bearing loans and borrowings (2024: 66.3%) carry fixed rate interest,
as a consequence, the Group is exposed to fair value interest rate risk, which
has been disclosed under IFRS. As of 30 June 2025, the fair value of such
fixed rate debt was higher with €13.3 million (2024: higher with €9.4
million) than the carrying value as disclosed in the fair value hierarchy
table.
The Group monitors on a regular basis the cost of its debt financing and has a
preference towards fixed rate long-term financing either through fixed rate
secured or unsecured loans or variable rate loans where the risk for interest
rate increase is mitigated through fixed-variable swaps or caps from
case-by-case basis.
Furthermore, as at 30 June 2025, 33.3% from the total outstanding
interest-bearing loans and borrowing balance (2024: 33.4%) carry variable
interest rate, which range from EURIBOR three-month to EURIBOR six-month
rates, see note 13 for details on each individual loan. These loans expose the
Group to cash flow interest rate risk and in order to minimise this risk, the
Group hedged 87.6% (2024: 60.3%) of such variable interest rate exposure with
fixed-variable interest rate swap instruments.
Based on the Group's debt balances at 30 June 2025, an increase or decrease of
100 basis points in the EURIBOR will result in an increase or decrease (net of
tax) of interest expense by €0.5 million per annum (2024: €1.8 million per
annum), with a corresponding impact on equity for the same amount,
respectively. This analysis assumes that all other variables, in particular
foreign currency rates, remain constant.
1 Credit Risk
Credit risk refers to the risk that a counterparty will default on its
contractual obligations resulting in financial loss to the Group. The Group's
policy is to trade with recognised and creditworthy third parties. The Group's
exposure is continuously monitored and spread amongst approved counterparties.
The Group's maximum exposure to credit risk, by class of financial asset, is
equal to their carrying values at the statement of financial position date.
30 June 2025 31 December 2024
Note €'000 €'000
Non-current assets
Loan receivable from joint venture 22 3,864 3,744
Equity investments 8,200 8,010
Non-current financial assets 7,619 3,067
Current assets
Consideration receivable for subsidiary disposal 3.4 25,079 24,790
Trade receivables - net of provision 14 13,788 16,643
VAT and other taxes receivable 14 4,568 6,784
Guarantees paid by tenants 1,547 1,579
Other receivables 372 294
Contract assets 5,193 5,702
Guarantees retained by tenants 94 97
Income tax receivable 366 118
Cash and cash equivalents 15 325,456 333,560
396,146 404,388
Financial assets at fair value through profit or loss and other comprehensive
income
The Group places funds in financial instruments issued by reputable real
estate companies with high credit worthiness.
Contract assets and Trade Receivables
A trade receivable is recognised if an amount of consideration that is
unconditional is due from the customer (only the passage of time is required
before payment of the consideration is due).
There is no significant concentration of credit risk with respect to contract
assets and trade receivables, as the Group has a large number of tenants, most
of which are part of multinational groups, internationally dispersed, as
disclosed in the Interim Report. For related parties, including the joint
ventures, it is assessed that there is no significant risk of non-recovery.
Estimates and assumptions used for impairment of trade receivables and
contract assets
The Group's trade receivables do not contain any financing component and
mainly represent lease receivables. Therefore, the Group applied the
simplified approach under IFRS 9 and measured the loss allowance based on a
provision matrix that is based on historical collection and default experience
adjusted for forward looking factors (such as macroeconomic forecasts of
unemployment, economic sentiment indicator, real GDP growth, inflation rate)
in order to estimate the provision on initial recognition and throughout the
life of the receivables at an amount equal to lifetime ECL (Expected Credit
Losses). The assessment is performed on a six-month basis and any change in
original allowance will be recorded as gain or loss in the income statement.
The movements in the provision for impairment of receivables during the
respective periods were as follows:
30 June 31 December
2025 2024
€'000 €'000
Opening balance 6,468 6,026
Specific allowance for expected credit losses 183 1,052
Reversal of provision for doubtful debts (556) (128)
Foreign currency translation income (34) (474)
Provisions income - (8)
Closing balance 6,061 6,468
The analysis by credit quality of financial assets, cumulated for rent,
service charge and property management, is as follows:
30 June 2025 (€'000) Current Days past due
<90 days <120 days <365 days >365 days TOTAL
Trade and other receivables - gross 8,513 3,768 1,184 1,053 5,331 19,849
Less: Specific provision 7 41 21 300 5,331 5,700
Less: Expected credit loss 4 198 7 152 - 361
Carrying amount 8,502 3,529 1,156 601 - 13,788
Expected credit loss rate 0.0% 5.6% 0.6% 25.3% 0.0%
31 December 2024 (€'000) Current Days past due
<90 days <120 days <365 days >365 days TOTAL
Trade and other receivables - gross 10,113 4,666 943 2,533 4,856 23,111
Less: Specific provision - 31 106 1,114 4,856 6,107
Less: Expected credit loss 4 198 7 152 - 361
Carrying amount 10,109 4,437 830 1,267 - 16,643
Expected credit loss rate 0.0% 4.5% 0.8% 12.0% -
The Group considers that a default on a trade receivable occurs when the
counterparty fails to make contractual payments within 90 days of when they
fall due. The customer balances which were overdue but for which no specific
loss allowance was recorded are due to the fact that the related customers
committed and started to pay the outstanding balances subsequent to the
year-end. Further deposits payable to tenants may be withheld by the Group in
part or in whole if receivables due from the tenant are not settled or in case
of other breaches of contractual terms.
VAT and other taxes receivable
This balance relates to corporate income tax paid in advance, VAT and other
taxes receivable from the tax authorities in Romania and Poland. The balances
are not considered to be subject to significant credit risk as all the amounts
receivable from Government authorities are secured under sovereign warranty.
Cash and cash equivalents
The credit risk on cash and cash equivalents is very small, since the cash and
cash equivalents are held at reputable banks in different countries. The most
significant part of the cash and cash equivalents balance is kept at the
company level with international banks having credit rating profile (assigned
by S&P, Moody's or Fitch) in upper medium grade range (i.e. A+ to A- for
long-term and P-2, F1, F2 for short-term) for 84% (2024: 86%) of the cash and
cash equivalents balance of the Group, in lower medium grade range (BBBs) for
15% (2024: 13%) of the cash and cash equivalents balance of the Group and
insignificant amounts (2024: same) in non-investment grade. Surplus funds from
operating activities are deposited only for short-term periods, which are
highly liquid with reputable institutions.
Loans receivable from joint ventures
The outstanding loan balance is neither past due nor impaired. Loans
receivable from joint ventures are considered to be low credit risk where they
have a low risk of default and the issuer has a strong capacity to meet its
contractual cash flow obligations.
Financial instruments for which Fair values are disclosed
Set out below is a comparison by class of the carrying amounts and fair values
of the Group's financial instruments, other than those with carrying amounts
that are reasonable approximations of their fair values.
Fair value hierarchy
Carrying amount Level 1 Level 2 Level 3 Total
Year €000 €000 €000 €000 €000
Interest-bearing loans and borrowings (Note 13) 2025 1,305,478 501,211 - 817,588 1,318,769
2024 1,310,831 495,636 - 824,570 1,320,206
Lease liabilities 2025 28,569 - - 28,569 28,569
2024 26,360 - - 26,360 23,360
The fair value of financial liabilities is included at the amount at which the
instrument could be exchanged in a current transaction between willing
parties, other than in a forced or liquidation sale. When determining the fair
values of interest - bearing loans and borrowings and lease liabilities the
Group used the DCF method with inputs such as discount rate that reflects the
issuer 's borrowing rate as at the statement financial position date.
Specifically, for the Eurobonds, their fair value is calculated on the basis
of their quoted market price. The own non-performance risk at the statement of
financial position date was assessed to be insignificant.
1 Liquidity Risk
The Group's policy on liquidity is to maintain sufficient liquid resources to
meet its obligations as they fall due. Ultimate responsibility for liquidity
risk management rests with management. The Group manages liquidity risk by
maintaining adequate cash reserves and planning and close monitoring of cash
flows. The Group expects to meet its financial liabilities through the various
available liquidity sources, including a secure rental income profile, further
equity raises and in the medium term, debt refinancing. The table below
summarizes the maturity profile of the Group's financial liabilities based on
contractual undiscounted payments.
The table below presents the undiscounted cash flows of financial liabilities
based on the earliest date on which the Group can be required to pay and
includes both interest and principal cash flows. As the amount of contractual
undiscounted cash flows related to bank borrowings is based on variable rather
than fixed interest rates, the amount disclosed is determined by reference to
the conditions existing at the year end, that is, the actual spot interest
rates effective at the end of the year are used for determining the related
undiscounted cash flows.
Contractual payment term Difference from carrying amount
All amounts in €'000 <3 months 3 months- 1 year 1-5 years >5 years Total Carrying amount
30 June 2025
Interest-bearing loans and borrowings 24,620 46,255 1,454,251 78,277 1,603,403 (297,925) 1,305,478
Lease liability - 1,966 17,044 202,201 221,211 (192,642) 28,569
Trade payables and guarantee retained from contracts (excluding advances from 40,963 7,505 4,612 223 53,303 (10,972) 42,331
customers)
Other non-current financial liabilities - - - 2,319 2,319 - 2,319
Deposits from tenants 19,251 4 3,352 1,365 23,972 (956) 23,016
Total 84,834 55,730 1,479,259 284,385 1,904,208 (502,495) 1,401,713
Contractual payment term Difference from carrying amount
All amounts in €'000 <3 months 3 months- 1 year 1-5 years >5 years Total Carrying amount
31 December 2024
Interest-bearing loans and borrowings 25,656 140,205 1,246,773 206,611 1,619,245 (308,414) 1,310,831
Lease liability - 2,108 9,615 107,592 119,315 (90,457) 28,858
Trade payables and guarantee retained from contracts (excluding advances from 29,812 8,855 2,944 448 42,059 (3,491) 38,568
customers)
Other non-current financial liabilities - - - - 1,882 - 1,882
Deposits from tenants 19,011 525 3,353 998 23,887 (834) 23,053
Total 74,479 151,693 1,262,685 317,531 1,806,388 (403,196) 1,403,192
Other current financial liabilities
Other financial liabilities represent the mark-to-market value of swap
instruments classified as fair value through profit or loss, for covering the
increased EURIBOR obtained from the counterparty financial institution and
were valued at €2.3 million at 30 June 2025 (2024: €1.9 million).
The fair value of derivative was measured in accordance with the requirements
of IFRS 13 "Fair Value Measurement". Under the terms of the swap agreement,
the Group swapped the floating rate of 3-month EURIBOR at a notional amount of
€81.8 million with a fixed rate of interest of 2.710% p.a. on the said
notional amount with maturity date of April 2029 and 6-month EURIBOR at a
notional amount of €85.0 million with a fixed rate of interest of 2.219%
p.a. on the said notional amount with maturity date of May 2028.
17. Capital Management
The Company has no legal capital regulatory requirement. The Group's policy is
to maintain a strong equity capital base so as to maintain investor, creditor
and market confidence and to sustain the continuous development of its
business. The Board considers from time to time whether it may be appropriate
to raise new capital by a further issue of shares. The Group monitors capital
primarily using an LTV ratio and manages its gearing strategy to a long-term
target LTV of less than 40%.
The LTV is calculated as the amount of outstanding debt (Group's debt balance
plus 50% of joint ventures' debt balance), less cash and cash equivalents
(Group cash balance plus 50% of joint ventures' cash balance), divided by the
open market value of its investment property portfolio (Group's investment
property- freehold portfolio plus 50% of joint ventures' investment property -
freehold value) as certified by external valuers. The future share capital
raise or debit issuance are influenced, in addition to other factors, by the
prevailing LTV ratio.
Note 30 June 2025 €'000 31 December 2024 €'000
Interest-bearing loans and borrowings (face value) 13 1,317,482 1,322,590
Less:
Cash and cash equivalents 15 325,456 333,560
Group Interest-bearing loans and borrowings (net of cash) 992,026 989,030
Add:
50% Share of Joint Ventures cash and cash equivalents (2) (11)
Combined Interest-bearing loans and borrowings (net of cash) 992,025 989,019
Group open market value as of financial position date 2,608,160 2,591,800
Add:
50% Share of Joint Ventures open market value as of financial position date 22 3,950 3,950
Open market value as of financial position date 2,612,110 2,595,750
Loan-to-value ratio ("LTV") 38.0% 38.1%
Since the carrying value of the lease liability closely matches the fair value
of the investment property - leasehold at 30 June 2025 under the applicable
accounting policy as per IFRS 16, both asset and liability, related to the
right of perpetual usufruct of the lands, are excluded from the above
calculation
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SECTION V: SHARE CAPITAL AND RESERVES
The disclosures in this section focus on dividend distributions, the share
schemes in operation and the associated share-based payment charge to profit
or loss. Other mandatory disclosures, such as details of capital management,
are also disclosed in this section.
18. Issued share capital
30 June 2025 31 December 2024
€'000 Number '000 €'000 Number '000
Opening balance 1,822,934 279,511 1,769,456 252,990
Share issued for scrip dividends 24,616 11,834 53,489 26,521
Transaction costs on issuance of shares in cash (10) - (11) -
Closing balance 1,847,540 291,345 1,822,934 279,511
Ordinary shares carry no right to fixed income but are entitled to dividends
as declared from time to time. Each ordinary share is entitled to one vote at
meetings of the Company. There is no limit on the authorised share capital of
the Company. The Company can issue no par value and par value shares as the
Directors see fit.
Under Guernsey company law there is no distinction between distributable and
non-distributable reserves, requiring instead that a company passes a solvency
test in order to be able to make distributions to shareholders. Similarly, the
share premium for the issuance of shares above their par value per share was
recognised directly under share capital and no separate share premium reserve
account was recognised.
At an extraordinary general meeting of the Company held on 8 March 2023, a
resolution was passed to grant the Board of Directors the authority to offer a
scrip dividend alternative to shareholders, so that qualifying shareholders
can elect to receive new ordinary shares in the Company (the "scrip dividend
shares") instead of cash in respect of all or part of their entitlement to the
Interim Dividend. The reference price used for the scrip shares issued is
determined on the basis of a discount of 20% to the average of the middle
market quotations on the five consecutive dealing days from and including the
ex-dividend date.
On 11 March 2025, the Company offered a scrip dividend alternative to the
interim dividend so that qualifying shareholders can elect to receive new
ordinary shares at a reference price of €2.08 per scrip dividend share
instead of cash dividend of €0.09 per share. Approximately 98.2% of the
qualifying shareholders (excluding shares held in treasury) elected to receive
scrip dividend shares in respect of their entitlement to the interim dividend
resulting in the issuance of 11,834,419 new shares on 8 April 2025 to
qualifying shareholders.
19. Dividends
30 June 31 December
2025 2024
€'000 €'000
Distributed during the period 25,081 54,351
On 11 March 2025, the Board of Directors of the Company approved the
distribution of an interim dividend in respect of the six-month financial
period ended 31 December 2024 of €0.09 per ordinary share.
20. Financial Position Key Performance Measures
The net assets value ("NAV"), EPRA Net Reinstatement Value ("EPRA NRV") and
the numbers of shares used for the calculation of each key performance measure
on the financial position of the Group and the reconciliation between IFRS and
EPRA measures are shown below.
30 June 31 December
Note 2025 2024
€'000 €'000
Net assets attributable to equity holders of the Company 1,526,409 1,518,952
Number of ordinary shares used for the calculation of: Number ('000) Number ('000)
- NAV per share 12 290,294 278,460
- Diluted NAV and EPRA NRV per share 12 290,294 278,501
€ €
NAV per share 5.26 5.45
Diluted NAV per share 5.26 5.45
EPRA Net Reinstatement Value ("EPRA NRV") Per Share* Note 30 June 31 December
2025 2024
€'000 €'000
Net assets attributable to equity holders of the Company 1,526,409 1,518,952
Exclude:
V) 50% of deferred tax in relation to fair value gains of IP 11 129,029 124,032
VI) Fair value of financial instruments (5,300) (1,185)
VII) Goodwill as a result of deferred tax (5,387) (5,387)
IX) Adjustment in respect of Joint venture and NCI for above items 50 2,617
EPRA NRV attributable to equity holders of the Company 1,644,801 1,639,029
€ €
EPRA NRV per share 5.67 5.89
* Not an IFRS requirement
21. Share-Based Payment Reserve
30 June 30 June
2025 2024
Share-based payments expense €'000 €'000
Expense during the period 128 167
21.1 Treasury shares
30 June 2025 31 December 2024
Amount Number Amount Number
€'000 ('000) €'000 ('000)
Opening balance (4,752) (1,053) (4,797) (1,053)
Dividend on treasury shares held by a subsidiary 19 - 45 -
Closing balance (4,733) 1,053 (4,752) (1,053)
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SECTION VI: INVESTMENT IN SUBSIDIARIES, JOINT VENTURES AND RELATED DISCLOSURE
This section includes details about Globalworth's subsidiaries, if any new
business and /or new properties acquired, investment in joint ventures and
related impact on the statement of comprehensive income and cash flows.
22. Investment in Joint ventures
30 June 31 December
Investments Note 2025 2024
€'000 €'000
Opening balance 216 24,366
Investments in the joint ventures (including acquisition costs) - 5
Disposals during the period - (15,712)
Loss on valuation of investment 22.1 - (2,932)
Share of (loss)/profit during the period 22.4 (59) (5,511)
Sub-total 157 216
Loans receivable from joint ventures
Opening balance 3,744 47,732
Loan provided to the joint ventures - 6,984
Loan repayments from the joint ventures - (45,935)
Interest repayment from the joint ventures - (4,233)
Interest income on the loans to joint ventures 120 1,196
Sub-total 3,864 3,744
TOTAL 4,021 3,960
22.1 Investments in the Joint Ventures
In April 2019, the Group's subsidiary, Globalworth Holdings Cyprus Limited,
entered into a joint venture agreement with Bucharest Logistic Park SRL,
through which it acquired a 50% shareholding interest (€0.09 million
investment) in Global Logistics Chitila SRL ("Chitila Logistics Hub"), an
unlisted company in Romania, owning land for further development, at the
acquisition date, in Chitila, Romania.
In June 2019, the Group's subsidiary, Globalworth Holdings Cyprus Limited,
entered into a joint venture agreement with Mr. Sorin Preda through which it
acquired a 50% shareholding interest (€6.36 million investment) in Black Sea
Vision SRL ("Constanta Business Park"), an unlisted company in Romania, owning
land for further development, at acquisition date, in Constanta, Romania.
In September 2022, the Group's subsidiary, Globalworth Holdings Cyprus
Limited, entered into a joint venture agreement with Global Vision Business
Development SRL through which it acquired a 50% shareholding interest (€0.07
million investment) in Targu Mures Logistics Hub SRL ("Targu Mures Logistics
Hub"), an unlisted company in Romania, owning land for further development, at
acquisition date, in Mures, Romania. During the first half of 2023, the
development of Targu Mures Logistics Hub was completed.
On 18 July 2024 the Group disposed of its 50% interests in Global Logistics
Chitila SRL, Black Sea Vision SRL and Targu Mures Logistics Hub SRL for a
total net consideration of €61.6 million (out of which €45.9 million was
repayment of loans receivable from joint ventures).
Also, in July 2024 the Company sold 50% interest in Black Sea Business Park
SRL to a joint venture partner, also Black Sea Business Park SRL acquired
Constanta Land from Black Sea Vision SRL at a price of €7.2 million. As at
30 June 2025 and 31 December 2024 the investment properties owned by the joint
venture entities were classified as an industrial segment for the Group.
Judgements and assumptions used for Joint Ventures
At the time of acquisition, the Group considered whether the acquisition
represented an acquisition of a business or an acquisition of an asset. In the
absence of an integrated set of activities required for a business other than
the property, the Group concluded the acquisition of the joint venture does
not represent a business therefore accounted for it as an acquisition of a
group of assets and liabilities. The cost to acquire the entity is allocated
between the identifiable assets and liabilities of the entity based upon their
relative fair values at the acquisition date and no goodwill or deferred tax
is recognised.
Joint control is the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the relevant activities
require the unanimous consent of the parties sharing control. The
considerations made in determining significant influence or joint control are
similar to those necessary to determine control over subsidiaries. Following
such assessment, the Group's investment was classified as a joint venture.
Until the disposal date, the carrying amount of the investment in the joint
venture was recorded at cost plus the change in the Group's share of net
assets of the joint venture until the disposal date.
22.2 Summarised Statements of Financial Position of the Joint Ventures as at
reporting date
The summarised statements of financial position of the joint ventures are
disclosed below, which represents the assets and liabilities recognised in the
financial statements of each joint venture without adjusting of the balance
payable to or receivable from the Group. Transactions and balances receivable
or payable between the Group and the individual joint ventures are disclosed
in note 25.
30 June 31 December
2025 2024
€'000 €'000
Constanta Land Constanta Land
Investment property 7,900 7,900
Total non-current assets 7,900 7,900
Other current assets 12 9
Cash and cash equivalents 3 22
Total assets 7,915 7,931
Loans payable to the Group 3,863 3,744
Loan from Joint venture partner 3,863 3,743
Deferred tax liability 100 100
Total non-current liabilities 7,826 7,826
Other current liabilities - 4
Total liabilities 7,826 7,591
Net assets 89 340
The Group has signed loan facilities amounting to €3.7 million (2024: €3.7
million) with Black Sea Business Park. Further details about the fair
valuation of investment property owned by the Joint Ventures are disclosed in
note 4.1.
22.3 Summarised Statements of Financial Performance of the Joint Ventures
The table below includes individual and combined income statements of the
joint venture extracted from the individual financial statements of each joint
venture without adjusting for the transactions with the Group.
30 June 30 June 30 June 30 June 30 June
2025 2024 2024 2024 2024
€'000 €'000 €'000 €'000 €'000
Constanta Land Constanta Business Park Chitila Logistics Hub
Targu Mures Combined
Revenue - 1,621 1,997 973 4,591
Operating expenses - (442) (834) (283) (1,559)
Administrative expenses (11) (47) (39) (106) (192)
Fair value gain/(loss) on investment property - (10,554) (3,760) (247) (14,561)
Foreign exchange loss (1) (26) 20 (13) (19)
Profit/(loss) before net financing cost (12) (9,448) (2,616) 324 (11,740)
Finance expense (239) (503) (998) (547) (2,048)
Finance income - 39 7 - 46
Income tax (expense)/income - 1,565 514 (13) 2,066
Total comprehensive income for the period (251) (8,347) (3,093) (236) (11,676)
Income tax expense mainly represents deferred tax (expense)/income on the
valuation of investment property.
22.4 Share of profit/(loss) of equity-accounted investments in joint
ventures
The following table presents a reconciliation between the profit/(loss) for
the period ended 30 June 2025 and 30 June 2024 recorded in the individual
financial statements of the joint ventures with the Share of profit recognised
in the Group's financial statements under the equity method.
30 June 30 June 30 June 30 June 30 June
2025 2024 2024 2024 2024
€'000 €'000 €'000 €'000 €'000
Constanta Land Constanta Business Park Chitila Logistics Hub Targu Mures Combined
Profit/(loss) for the period (251) (8,347) (3,093) (236) (11,676)
Group 50% share of profit/(loss) for the period (126) (4,174) (1,547) (118) (5,839)
Adjustments for transactions with the Group 67 130 226 167 524
Share of profit/(loss) of equity-accounted investments in joint ventures (59) (4,044) (1,321) 49 (5,316)
23. Investment in Subsidiaries
Details on all direct and indirect subsidiaries of the Company, over which the
Group has control and consolidated as of 30 June 2025 and 31 December 2024,
are disclosed in the table below. The Group did not have any restrictions
(statutory, contractual or regulatory) on its ability to transfer cash or
other assets (or settle liabilities) between the entities within the Group.
As of 30 June 2025, the Group consolidated the following subsidiaries, with
holding and financing as principal activities, except for Globalworth
Investment Advisers Limited being advisory company.
30 June 2025 31 December 2024 Place of incorporation
Subsidiary Shareholding interest Shareholding interest
(%) (%)
Globalworth Investment Advisers Limited 100 100 Guernsey,
Channel Islands
Globalworth Holdings Cyprus Limited
Tisarra Holdings Limited
Serana Holdings Limited 100 100 Cyprus
Kusanda Holdings Limited
Minory Investments Limited
Globalworth Tech Limited
IB 14 Fundusz Inwestycyjny Zamkniety Aktywow Niepublicznych 100 100 Poland
As of 30 June 2025, the Group consolidated the following subsidiaries, which
own real estate assets in Romania and Poland, being asset holding companies as
their principal activities, except for Globalworth Building Management SRL,
GPRE Property Management Sp. z o.o. and GPRE Management Sp. z o.o. with
building management activities in Romania and Poland, Fundatia Globalworth in
Romania non-profit organisations with corporate social responsibility
activities and newly incorporated company Atlas Office Technology SRL with no
activity until June 2025.
30 June 2025 31 December 2024 Place of incorporation
Subsidiary Note Shareholding interest Shareholding interest
(%) (%)
Aserat Properties SRL
BOB Development SRL
BOC Real Property SRL
Corinthian Five SRL
Corinthian Tower SRL
Corinthian Twin Tower SRL
Elgan Offices SRL
Fundatia Globalworth
Globalworth Asset Managers SRL 100 100 Romania
Globalworth Building Management SRL
Globalworth Expo SRL
SPC Beta Property Development Company SRL
SPC Epsilon Property Development Company SRL
SPC Gamma Property Development Company SRL
Netron Investment SRL
Otopeni Logistics Hub SRL
Tower Center International SRL
Upground Estates SRL
West Logistics Hub SRL
Atlas Office Technology SRL* 100 - Romania
A4 Business Park Sp. z o.o.
Artigo Sp. z o.o.
Centren Sp. z o.o
DH Supersam Katowice Sp. z o.o.
Dolfia Sp. z o.o.
Dom Handlowy Renoma Sp. z o.o.
Ebgaron Sp. z o.o.
Gold Project Sp. z o.o.
GPRE Management Sp. z o.o.
GPRE Property Management Sp. z o.o.
GW Tech Sp. z o.o.
Hala Koszyki Sp. z o.o.
Imbali Sp. z o.o.
Ingadi Sp. z o.o.
Kusini Sp. z o.o. 100 100 Poland
Lamantia Sp. z o.o.
Lima Sp. z o.o.
Nordic Park Offices Sp. z o.o.
Podium Park Sp. z o.o.
Quattro Business Park Sp. z o.o.
Rondo Business Park Sp. z o.o.
Spektrum Tower Sp. z o.o.
Tryton Business Park Sp. z o.o.
Warsaw Trade Tower 2 Sp. z o.o.
Warta Tower Sp. z o.o.
West Gate Sp. z o.o.
West Link Sp. z o.o.
GW Flex Sp. z o.o.
*Incorporated in April 2025
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SECTION VII: OTHER DISCLOSURES
This section includes segmental disclosures highlighting the core areas of
Globalworth's operations in the Office, Mixed -use, residential, and other
(industrial and corporate segments). There were no significant transactions
between segments except for management services provided by the offices
segment to the residential, mixed-use and other (industrial) segments. This
section also includes the transactions with related parties, new standards and
amendments, contingencies that existed at the period end and details on
significant events which occurred subsequent to the period end.
24. Segmental Information
The Board of Directors is of the opinion that the Group is engaged mainly in
real estate business, comprising offices, mixed - use, industrial and
residential investment properties segments and property management services,
in two geographical areas, Romania and Poland. Operating segments are reported
in a manner consistent with the internal reporting provided to the chief
operating decision-makers. The chief operating decision-makers who are
responsible for allocating resources and assessing the performance of the
operating segments have been identified as the Executive Directors.
The Group earns revenue and holds non-current assets (investment properties)
in Romania and Poland, the geographical area of its operations. For investment
property, discrete financial information is provided on a property-by-property
basis (including those under construction or refurbishment) to members of
Executive Management, which collectively comprise the Executive Directors of
the Group. The information provided is Net Operating Income ("NOI", i.e. gross
rental income less property expenses) on a quarterly basis and valuation
gains/losses from property valuation at each semi -annual basis. The
individual properties are aggregated into office, mixed-use, industrial and
residential segments.
The industrial property segment and head office segments are presented on a
collective basis as Others in the table on the next page since their
individual assets, revenue and absolute profit (or loss) are below 10% of all
combined total asset, tot al revenue and total absolute profit (or loss) of
all segments. All other segments are disclosed separately as these meet the
quantitative threshold of IFRS 8.
Consequently, the Group is considered to have four reportable operating
segments: the offices segment (acquires, develops, leases and manages offices
and spaces), the residential segment (builds, acquires, develops and leases
apartments), mixed-use and the other segment (acquires, develops, leases and
manages industrial spaces and corporate office).
Share-based payments expense is not allocated to individual segments as
underlying instruments are managed at the Group level. Segment assets and
liabilities reported to Executive Management on a segmental basis are set out
below:
30 June 2025 Residential Inter - segment eliminations
Office Mixed-use Other Total
€'000 €'000 €'000 €'000 €'000 €'000
Rental income - Total 67,368 7,085 526 183 (223) 74,939
Romania 35,059 - 526 183 (65) 35,703
Poland 32,309 7,085 - - (158) 39,236
Revenue from contract with customers - Total 37,664 5,101 300 212 (2,519) 40,758
Romania 17,778 - 300 212 (166) 18,124
Poland 19,886 5,101 - - (2,353) 22,634
Revenue-total 105,032 12,186 826 395 (2,742) 115,697
Operating expenses (42,823) (5,830) (329) (111) 439 (48,654)
Segment NOI 62,209 6,356 497 284 (2,303) 67,043
NOI - Romania 33,714 - 497 284 (208) 34,287
NOI - Poland 28,495 6,356 - - (2,095) 32,756
Administrative expenses (6,834) (366) (16) (2,548) - (9,764)
Fair value (loss)/gain on investment property (4,710) 1,496 1,553 2 - (1,659)
Depreciation and amortisation expense (511) - (20) (23) - (554)
Other expenses (1,285) (75) (40) (80) 24 (1,456)
Other income 187 (19) - - (39) 129
Loss on disposal of investment property 9 (8) - (1) - -
Foreign exchange loss (1,013) (64) (27) (164) - (1,268)
Segment result 48,052 7,320 1,947 (2,530) (2,318) 52,471
Finance cost (13,886) (1,773) - (18,998) - (34,657)
Finance income 2,375 73 125 2,971 - 5,544
Share-based payment expense - - - (128) - (128)
Gain from fair value of financial instruments (1,652) - - - (369) (2,021)
Share of profit of equity-accounted investments in joint ventures - - - (59) - (59)
Profit/(loss) before tax 34,889 5,620 2,072 (18,744) (2,687) 21,150
30 June 2024 Inter - segment eliminations
Office Mixed-use Residential Other Total
€'000 €'000 €'000 €'000 €'000 €'000
Rental income - Total 66,034 6,777 684 5,660 (226) 78,929
Romania 36,294 - 684 5,660 (217) 42,421
Poland 29,740 6,777 - - (9) 36,508
Revenue from contract with customers - Total 42,297 4,242 315 1,729 (2,478) 46,105
Romania 24,513 - 315 1,729 (797) 25,760
Poland 17,784 4,242 - - (1,681) 20,345
Revenue-total 108,331 11,019 999 7,389 (2,704) 125,034
Operating expenses (45,028) (5,591) (369) (2,356) 692 (52,652)
Segment NOI 63,303 5,428 630 5,033 (2,012) 72,382
NOI - Romania 35,690 - 630 5,033 (741) 40,612
NOI - Poland 27,613 5,428 - - (1,271) 31,770
Administrative expenses (6,583) (241) (19) (2,444) - (9,287)
Fair value (loss)/gain on investment property (44,474) (4,778) (1,688) 413 - (50,527)
Depreciation and amortisation expense (374) - (6) (24) - (404)
Other expenses (1,142) (59) (3) - - (1,204)
Other income 8 1,162 - - (8) 1,162
Loss on disposal of subsidiary - - - (24,111) - (24,111)
Foreign exchange loss (511) (108) (6) 376 - (249)
Segment result 10,227 1,404 (1,092) (20,757) (2,020) (12,238)
Finance cost (11,910) (1,773) - (34,703) - (48,386)
Finance income 2,508 85 95 4,840 - 7,528
Share-based payment expense - - - (167) - (167)
Gain from fair value of financial instruments 803 - - 565 - 1,368
Share of profit of equity-accounted investments in joint ventures - - - (13,198) - (13,198)
Profit/(loss) before tax 1,628 (284) (997) (63,420) (2,020) (65,093)
Revenues are derived from a large number of tenants, and no tenant contributes
more than 10% of the Group's rental revenues for the period ended 30 June
2025.
30 June 2025 Office Mixed-use Residential Other Inter segment eliminations Total
Segments €'000 €'000 €'000 €'000 €'000 €'000
Segment non-current assets 2,312,754 296,290 27,072 4,900 (4,075) 2,636,941
Romania 1,164,700 - 27,072 4,900 (72) 1,196,600
Poland 1,148,054 296,290 - - (4,003) 1,440,341
Assets held for sale - - - - - -
Total assets 2,715,888 306,746 37,852 5,245 (5,356) 3,060,375
Total liabilities 861,018 80,961 2,677 590,589 (1,279) 1,533,966
Additions to non-current assets
- Romania 7,455 - 338 - - 7,793
- Poland 5,765 6,723 - - - 12,488
31 December 2024 Office Mixed-use Residential Other Inter segment Total
eliminations
Segments €'000 €'000 €'000 €'000 €'000 €'000
Segment non-current assets 2,265,971 286,614 30,772 5,756 (3,768) 2,585,345
Romania 1,152,200 - 30,772 5,756 (928) 1,187,800
Poland 1,113,771 286,614 - - (2,840) 1,397,545
Assets held for sale 35,763 - - - - 35,763
Total assets 2,706,648 300,132 46,571 2,133 (4,304) 3,051,180
Total liabilities 862,021 78,916 2,890 588,929 (528) 1,532,228
Additions to non-current assets
- Romania 37,092 - 594 3,685 - 41,371
- Poland 13,808 3,837 - - - 17,645
None of the Group's non-current assets are located in Guernsey except for
goodwill (there are no employment benefit plan assets, deferred tax assets or
rights arising under insurance contracts) recognised on business combination.
25. Transactions with Related Parties
The Group's immediate parent is Zakiono Enterprises Limited, 60.9% holding
(2024: same), a wholly owned subsidiary of Tevat Limited. Tevat Limited is
jointly owned by Aroundtown SA (indirectly) and CPI Property Group S.A.
The Group's related parties are Aroundtown SA and CPI Property Group S.A, the
Company's joint venturers, the Company's Executive and Non -Executive
Directors, other key Executives, as well as all the companies controlled by
them or under their joint control, or under significant influence. The related
party transactions are set out in the table below:
Income statement Statement of financial
position
Note Income/(expense) Amounts owing (to)/from
Nature of transaction/balances 30 June 30 June 30 June 31 December
2025 2024 2025 2024
Name Amounts €'000 €'000 €'000 €'000
Global Logistics Chitila SRL Finance income 22.1 - 447 - -
(50% Joint Venture) Office rent - 6 - -
Asset management fees - 29 - -
Black Sea Vision SRL Finance income 22.1 - 251 - -
(50% Joint Venture) Office rent - 6 - -
Asset management fees - 31 - -
Targu Mures Logistics Hub SRL Finance income 22.1 - 333 - -
(50% Joint Venture) Office rent - 3 - -
Asset management fees - 16 - -
Black Sea Business Park SRL Shareholder loan receivable 22.1 - - 3,863 3,744
(50% Joint Venture) Finance income 169 - - -
Asset management fees 13 - - -
Rashid Mukhtar Revenue from sale of residential property 11 - -
(Group Chief Financial Officer)
26. New and Amended Standards
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual consolidated financial statements for the
year ended 31 December 2024, except for the adoption of new standards
effective as of 1 January 2025. The Group has not early adopted any standard,
interpretation or amendment that has been issued but is not yet effective. The
new amendments had no significant impact on the Group's financial position and
performance.
Narrow scope amendments and new Standards Effective Date (EU
endorsement)
Amendments to the Classification and Measurement of Financial Instruments -
Amendments to IFRS 9 and IFRS 7 (issued on 30 May 2024)
Jan-26
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Jan-25
Exchangeability (issued on 15 August 2023)
27. Contingencies
Taxation
All amounts due to State authorities for taxes have been paid or accrued at
the balance sheet date. There might be inconsistent interpretations of the tax
law and frequent changes of tax law which create unpredictability and may
trigger the risk of additional tax liabilities and penalties. In case the
State authorities have findings from tax audits relating to misinterpretation
of tax laws and/or related regulations, these may result in confiscation of
the amounts, additional tax liabilities, fines and penalties which are applied
on the total outstanding amount of additional tax liability. As a result, the
fiscal penalties resulting from misinterpretation of the legal provisions may
result in a significant amount payable to the State. The Group assessed any
uncertainties regarding the tax treatments in accordance with IFRIC 23
"Uncertainty over Income Tax Treatments", analyzed all significant tax
positions and concluded that it is more likely than not that the tax treatment
applied in its tax filings will be accepted by the relevant tax authorities.
The Group has provided for possible outcomes accordingly where uncertainty
exists regarding the tax treatment. Any adjustments to tax provisions will be
recognized in the period in which the uncertainty is resolved, with
appropriate disclosures in the financial statements. The Group believes that
it has paid in due time and in full all applicable taxes, penalties and
penalty interests in the applicable extent.
Transfer Pricing
According to applicable relevant tax legislation in Cyprus, Romania and
Poland, the tax assessment of related party transactions is based on the
concept of market value for the respective operations. Following this concept,
the prices applicable for intra-group transactions reflect the market value
that would have been set between unrelated companies acting independently
(i.e. based on the "arm's length principle"). It is likely that transfer
pricing reviews will be undertaken in the future to assess whether the
transfer pricing policy observes the "arm's length principle".
Legal Proceedings
The Group is engaged in ongoing litigations related to development projects,
lease contracts and for miscellaneous compensation. The outcome of such
litigations is uncertain, and no provision for potential losses has been made
as the likelihood of an adverse judgment is not considered probable.
28. Subsequent events
Dividends
On 28 August 2025, the Company announced that its Board of Directors had
approved the payment of an interim dividend in respect of the six-month
financial period ended 30 June 2025 of €0.05 per ordinary share, which will
be paid on 26 September 2025 to shareholders on the register as at close of
business on 5 September 2025 with a corresponding ex-dividend date of 4
September 2025.
Secured loans
On 13 August 2025, the Company drew down the two secured bank loans with Banca
Transilvania. The €65 million facilities were drawn in full.
ADDITIONAL INFORMATION
29. EPRA NAV Metrics
EPRA NRV EPRA NRV EPRA NTA EPRA NTA EPRA NDV EPRA NDV
30-Jun-25 31-Dec-24 30-Jun-25 31-Dec-24 30-Jun-25 31-Dec-24
€'000 €'000 €'000 €'000 €'000 €'000
Net assets attributable to equity holders of the parent 1,526,409 1,518,952 1,526,409 1,518,952 1,526,409 1,518,952
Include / exclude
I) Hybrid instruments − − − − − −
Diluted NAV 1,526,409 1,518,952 1,526,409 1,518,952 1,526,409 1,518,952
Include:
II. a) Revaluation of IP (if IAS 40 cost option is used) − − − − − −
II. b) Revaluation of IPUC (if IAS 40 cost option is used) − − − − − −
II. c) Revaluation of other non-current investments − − − − − −
III.) Revaluation of tenant leases held as finance leases − − − − − −
IV.) Revaluation of trading properties − − − − − −
Diluted NAV at fair value 1,526,409 1,518,952 1,526,409 1,518,952 1,526,409 1,518,952
Exclude:
V) Deferred tax in relation to fair value gains of IP 129,029 124,032 64,515 62,016 n/a n/a
VI) Fair value of financial instruments (5,300) (1,185) (5,300) (1,185) (5,300) (1,185)
VII) Goodwill as a result of deferred tax (5,387) (5,387) (5,387) (5,387) (5,387) (5,387)
VIII. a) Goodwill as per the IFRS balance sheet n/a n/a (6,652) (6,652) (6,652) (6,652)
VIII. b) Intangibles as per the IFRS balance sheet n/a n/a (15) (3) (15) (3)
IX) Adjustment in respect of joint venture and NCI share for above items 50 2,617 50 2,617 n/a n/a
Include:
IX) Fair value of fixed interest rate debt n/a n/a n/a n/a 13,291 (9,375)
X) Revaluation of intangibles to fair value n/a n/a n/a n/a n/a n/a
XI) Real estate transfer tax / acquisition costs − − − − n/a n/a
NAV 1,644,801 1,639,029 1,573,620 1,570,358 1,495,764 1,496,350
Fully diluted number of shares 290,294 278,501 290,294 278,501 290,294 278,501
NAV per share (EUR) 5.67 5.89 5.42 5.64 5.15 5.37
30. EPRA LTV Metric
30 June 2025 31 December 2024
Proportionate Consolidation Proportionate Consolidation
Group (as reported) Share of Joint Ventures Combined Group (as reported) Share of Joint Ventures Combined
€'000 €'000 €'000 €'000 €'000 €'000
Include:
Borrowings from Financial Institutions 806,700 - 806,700 812,226 - 812,226
Commercial paper n/a n/a n/a n/a n/a n/a
Hybrids (incl. convertibles, pref. shares, debt, options, perpetuals) n/a n/a n/a n/a n/a n/a
Bond loans 510,782 n/a 510,782 510,327 n/a 510,327
Foreign currency derivatives n/a n/a n/a n/a n/a n/a
Net payables 17,845 1,926 19,771 7,675 1,869 9,544
Owner-occupied property (debt) n/a n/a n/a n/a n/a n/a
Current accounts (equity characteristic) n/a n/a n/a n/a n/a n/a
Exclude:
Cash and cash equivalents 325,456 2 325,458 333,560 11 333,571
Net Debt (a) 1,009,871 1,924 1,011,795 996,668 1,858 998,526
Include:
Owner-occupied property n/a n/a n/a n/a n/a n/a
Investment properties at fair value 2,509,091 3,950 2,513,041 2,462,185 3,950 2,466,135
Properties held for sale - - - 35,763 - 35,763
Properties under development 127,850 - 127,850 123,160 - 123,160
Intangibles 15 - 15 3 - 3
Net receivables - - - - - -
Financial assets 3,864 - 3,864 3,744 - 3,744
Total Property Value (b) 2,640,820 3,950 2,644,770 2,624,855 3,950 2,628,805
LTV (a/b) 38.2% 48.7% 38.3% 38.0% 47.0% 38.0%
31. EPRA Cost Ratios
30 June 2025 30 June 2024
€'000 €'000
Include:
Administrative/operating expense line per IFRS income statement (9,764) (9,287)
Net service charge costs/fees (6,411) (5,694)
Management fees less actual/estimated profit element - 77
Other operating income/recharges intended to cover overhead expenses less any 214 1,091
related profits
Share of Joint Ventures expenses (6) (876)
Exclude (if part of the above):
Investment property depreciation n/a n/a
Ground rent costs - 10
Service charge costs recovered through rents but not separately invoiced - -
EPRA Costs (including direct vacancy costs) (A) (15,967) (14,679)
Direct vacancy costs 4,816 5,646
EPRA Costs (excluding direct vacancy costs) (B) (11,151) (9,033)
Gross Rental Income less ground rents - per IFRS 74,939 78,929
Less: service fee and service charge costs components of Gross Rental Income - -
(if relevant)
Add: share of Joint Ventures (Gross Rental Income less ground rents) - 2,296
Gross Rental Income (C) 74,939 81,225
EPRA Cost Ratio (including direct vacancy costs) (A/C) 21% 18%
EPRA Cost Ratio (excluding direct vacancy costs) (B/C) 14% 11%
STANDING PORTFOLIO - BREAKDOWN BY LOCATION & TYPE
(data as of 30 June 2025)
Number of Value Area Occupancy Rate Rent Contracted Headline Rent / Sqm or Unit
Investments Properties GAV GLA by GLA Contracted WALL 100% Rent Office Commercial Industrial
(#) (#) (€m) (k sqm) (%) Rent (€m) Years (€m) (€/sqm/m) (€/sqm/m) (€/sqm/m)
Office & Mixed-Use Portfolio
Bucharest New CBD 8 12 868.6 343.4 95.9% 67.0 5.0 69.9 15.3 15.3 --
Bucharest Other 4 6 270.7 118.2 92.9% 21.0 5.3 22.9 15.0 14.7 --
Romania: Office 12 18 1,139.3 461.6 95.1% 88.0 5.1 92.8 15.3 15.2 --
Warsaw 7 12 603.4 172.6 90.0% 42.0 3.4 46.1 20.2 20.3 --
Krakow 4 12 273.8 150.2 60.3% 18.1 3.7 28.4 15.1 15.2 --
Wroclaw 2 3 133.4 56.7 95.8% 10.8 3.8 11.2 15.1 15.0 --
Lodz 1 2 57.5 35.5 69.9% 4.3 2.6 6.0 13.5 13.6 --
Katowice 3 6 165.3 89.5 69.9% 11.9 4.1 16.3 14.4 13.8 --
Gdansk 1 1 56.4 25.6 91.6% 4.7 4.9 5.2 15.7 15.5 --
Poland: Office & Mixed-Use 18 36 1,289.7 530.1 77.5% 91.8 3.7 113.2 16.9 16.8 --
Total Office & Mixed-Use Portfolio 30 54 2,429.0 991.7 85.7% 179.9 4.4 206.0 16.1 16.0 --
Logistics / Light-Industrial
Craiova 1 1 4.9 5.9 100.0% 0.4 18.9 0.4 8.2 4.6 4.5
Total Industrial Portfolio 1 1 4.9 5.9 100.0% 0.4 18.9 0.4 8.2 4.6 4.5
Other Portfolio
Bucharest New CBD 1 1 17.8 8.6 nm 0.2 3.3 0.2 -- -- --
Upground Complex - Residential
Bucharest New CBD -- -- 9.2 5.3 95.5% 0.7 8.7 0.8 -- 10.8 --
Upground Complex - Commercial
Total Other Portfolio 1 1 27.0 14.0 nm 1.0 7.4 1.0 -- 10.8 --
Total Standing Commercial Portfolio 31 55 2,443.1 1,003.0 85.9% 181.0 4.4 207.1 16.1 15.9 4.5
Of which Romania 13 19 1,153.4 472.9 95.2% 89.2 5.2 93.9 15.3 15.0 4.5
Of which Poland 18 36 1,289.7 530.1 77.5% 91.8 3.7 113.2 16.9 16.8 --
GLOSSARY
Adjusted EBITDA (normalised)
Earnings before finance cost, tax, depreciation, amortisation of other
non-current assets, purchase gain on acquisition of subsidiaries, fair value
movement, and other non-operational and/or non-recurring income and expense
items.
Asset or Property
Represent the individual land plot or building under development or standing
building which forms part or the entirety of an investment.
Bargain Purchase Gain
Any excess between the fair value of net assets acquired and consideration
paid, in accordance with IFRS 3 "Business Combination".
BREEAM
Building Research Establishment Assessment Method, which assesses the
sustainability of the buildings against a range of criteria.
CAPEX
Represents the estimated Capital Expenditure to be incurred for the completion
of the development projects. Capitalisation Rates
Based on actual location, size and quality of the properties and considering
market data at the valuation date.
CBD
Central Business District
CEE
Central and Eastern Europe
CIT
Corporate income tax Commercial Properties
Comprises the office, light-industrial and retail properties, or areas of the
portfolio.
Combined Portfolio
Includes the Group's property investments consolidated on the balance sheet
under Investment Property- Freehold, plus those properties held as Joint
Ventures (currently the lands relating to Chitila Logistics Hub and Constanta
Business Park projects) presented at 100%.
Completed Investment Property
Completed developments consist of those properties that are in a condition
which will allow the generation of cash flows from its rental. Completion
Dates
The date when the properties under development will be completed and ready to
generate rental income after obtaining all necessary permits and approvals.
Consolidated Coverage Ratio
Calculated as the aggregate amount of Adjusted EBITDA for the period of the
most recent two consecutive semi-annual periods ending on such Measurement
Date divided by the Consolidated Interest Expense for such two semi-annual
periods.
Consolidated Interest Expense
All charges, interest, commission, fees, discounts, premiums, and other
finance costs in respect of Indebtedness (but excluding such interest on
Subordinated Shareholder Debt) incurred by the Group.
Consolidated Leverage Ratio
Calculated as the Consolidated Total Indebtedness divided by Consolidated
Total Assets Consolidated Secured Leverage Ratio
Calculated as the Secured Consolidated Total Indebtedness divided by
Consolidated Total Assets at that date Consolidated Total Assets
Total assets (excluding intangible assets) of the Group.
Consolidated Total Indebtedness
Total Indebtedness of the Group (excluding deferred tax liabilities and income
and deposits from tenants
Contracted Rent
The annualised headline rent that is contracted on leases (including
pre-leases) before any customary tenant incentive packages.
Debt Service Cover Ratio ("DSCR")
It is calculated as net operating income for the year as defined in specific
loan agreements with the respective lenders, divided by the principal plus
interest due over the same year or period.
Discount Rates
The discount rate is the interest rate used to discount a stream of future
cash flows to their present value. Discounted Cash Flow Analysis ("DCF")
Valuation method that implies income projections of the property for a
discrete period, usually between 5-10 years. The DCF method involves the
projection of a series of periodic cash flows either to an operating property
or a development property. Discounted cash flow projections based on
significant unobservable inputs considering the costs to complete and
completion date.
Earnings Per Share ("EPS")
Profit after tax divided by the basic/diluted weighted average number of
shares in issue during the year or period.
EDGE
Excellence in Design for Greater Efficiencies ("EDGE"). An innovation of the
International Finance Corporation ("IFC"), member of the World Bank Group,
EDGE is a green building standard and a certification system for more than 160
countries.
EPRA
The European Public Real Estate Association is a non-profit association
representing Europe's publicly listed property companies.
EPRA Earnings
Profit after tax attributable to the equity holders of the Company, excluding
investment property revaluation, gains, losses on investment property
disposals and related tax adjustment for losses on disposals, bargain purchase
gain on acquisition of subsidiaries, acquisition costs, changes in the fair
value of financial instruments and associated closeout costs and the related
deferred tax impact of adjustments made to profit after tax.
EPRA Earnings Per Share
EPRA Earnings divided by the basic or diluted number of shares outstanding at
the year or period end.
EPRA Net Disposal Value ("EPRA NDV")
The EPRA Net Disposal Value provides the reader with a scenario where deferred
tax, financial instruments, and certain other adjustments are calculated as to
the full extent of their liability, including tax exposure not reflected in
the Balance Sheet, net of any resulting tax. This measure should not be viewed
as a "liquidation NAV" because, in many cases, fair values do not represent
liquidation values.
EPRA Net Reinstatement Value ("EPRA NRV")
The objective of the EPRA Net Reinstatement Value measure is to highlight the
value of net assets on a long-term basis. Assets and liabilities that are not
expected to crystallise in normal circumstances such as the fair value
movements on financial derivatives and deferred taxes on property valuation
surpluses are therefore excluded. Since the aim of the metric is to also
reflect what would be needed to recreate the Company through the investment
markets based on its current capital and financing structure, related costs
such as real estate transfer taxes are included, as applicable.
EPRA Net Tangible Assets ("EPRA NTA")
The underlying assumption behind the EPRA Net Tangible Assets calculation
assumes entities buy and sell assets, thereby crystallising certain levels of
deferred tax liability.
EPRA NAV, EPRA NRV, EPRA NTA, EPRA NDV Per Share
EPRA NAV, or EPRA NRV, or EPRA NTA, or EPRA NDV divided by the diluted number
of shares outstanding at the year or period end. Estimated Rental Value
("ERV")
ERV is the external valuers' opinion as to the open market rent which, on the
date of valuations, could reasonably be expected to be obtained on a new
letting or rent review of a property.
Estimated Vacancy Rates
Represent vacancy rates computed based on current and expected future market
conditions after expiry of any current lease.
EURIBOR
The Euro Interbank Offered Rate: the interest rate charged by one bank to
another for lending money, often used as a reference rate in bank facilities.
Financial Year
Period from 1 January to 31 December.
FFO
Free funds from operations, estimated as the EPRA Earnings for the relevant
period.
GLA
Gross leasable area.
IFRS
International Financial Reporting Standards as adopted by the European Union.
IFRS Earnings
Result (Profit or Loss) after tax as per the statement of comprehensive
income.
IFRS Earnings per share
Result (Profit or Loss) after tax as per the statement of comprehensive income
divided by the weighted average number of shares in issue during the year.
Interest Cover Ratio ("ICR")
Calculated as net operating income divided by the debt service / interest.
Investment
Represent a location in which the Company owns / has interests in.
Land Bank for Further Development
Land bought for further development but for which the Group did not obtain all
the legal documentations and authorisation permits in order to start the
development process.
Leadership in Energy & Environmental Design ("LEED")
LEED, a green building certification programme that recognises best-in-class
building strategies and practices.
Loan-to-Cost Ratio ("LTC")
Calculated by dividing the value of loan drawdowns by the total project cost.
Loan to Value ("LTV")
Calculated as the total outstanding debt excluding amortised cost, less cash
and cash equivalents as of financial position date, divided by the appraised
value of owned assets as of the financial position date. both outstanding debt
and the appraised value of owned assets includes our share of these figures
for joint ventures, which are accounted for in the consolidated financial
statements under the equity method.
Maintenance Costs
Including necessary investments to maintain functionality of the property for
its expected useful life.
Master Lease
Master lease includes various rental guarantees, which range between 3 and 5
years, covering certain vacant spaces in certain properties owned in Poland.
MSCI
MSCI is an international finance company headquartered in New York City and
listed on New York Stock Exchange and serves as a global provider of equity,
fixed income, hedge fund stock market indexes, multi-asset portfolio analysis
tools and ESG products. An MSCI ESG Rating is designed to measure a company's
resilience to long-term, industry material environmental, social and
governance (ESG) risks.
NBP
National bank of Poland.
Net Assets Value ("NAV")
Equity attributable to shareholders of the Company and/or net assets value.
Net Asset Value ("NAV") Per Share
Equity attributable to owners of the Company divided by the number of Ordinary
shares in issue at the period end.
Net Operating Income ("NOI")
Net operating income (being the gross operating income less operating expenses
that are not paid by or rechargeable to tenants, excluding funding costs,
depreciation and capital expenditure).
Occupancy Rate
The estimated let sqm (GLA) as a percentage of the total estimated total sqm
(GLA) of the portfolio, excluding development properties and in certain cases
(where applicable) spaces subject to asset management (where they have been
taken back for refurbishment and are not available to let as of the financial
position date).
Open Market Value ("OMV" or "GAV")
Open market value means the fair value of the Group's investment properties
and the joint ventures (where the Group owns 50%) determined by Colliers
Valuation and Advisory SRL ("Colliers"), Cushman & Wakefield LLP (C&W)
and Knight Frank Sp. z o.o. ("Knight Frank") independent professionally
qualified valuers who hold a recognised relevant professional qualification
and have recent experience in the locations and segments of the investment
properties valued, using recognised valuation techniques.
Passing Rent
It is the gross rent, less any ground rent payable under the head leases.
Property Under Development
Properties that are in development process that do not meet all the
requirements to be transferred to completed investment property.
RCF
Revolving Credit Facility. Residual Value Method
Valuation method that estimated the difference between the market value of the
building upon completion that can be built on the plot of land and all the
building's construction costs, as well as the developer's profit. This method
relies on the contribution concept by estimating from the future income of the
building, the amount that can be distributed to the land.
ROBOR
Romanian Interbank Offer Rate.
Sales Comparison Approach
Valuation method that compares the subject property with quoted prices of
similar properties in the same or similar location.
Secured Consolidated Total Indebtedness Consolidated
Total Indebtedness that is secured by any Security granted by any member of
the Group.
SPA
Share sale purchase agreement.
SQM
Square metres.
The Company or the Group
Globalworth Real Estate Investments Limited and its subsidiaries.
The Investment Adviser
Globalworth Investment Advisers Limited, a wholly owned holding subsidiary
incorporated in Guernsey.
Total Accounting Return
Total accounting return is the growth in EPRA NRV per share plus dividends
paid, expressed as a percentage of EPRA NRV per share at the beginning of the
year.
Total Unencumbered Assets Ratio
Calculated as the Unsecured Consolidated Total Assets divided by Unsecured
Consolidated Total Indebtedness.
Unsecured Consolidated Total Assets
Means such amount of Consolidated Total Assets that is not subject to any
Security granted by any subsidiary of the Group.
Unsecured Consolidated Total Indebtedness
Means the Consolidated Total Indebtedness less Secured Consolidated Total
Indebtedness.
WALL
Represents the remaining weighted average lease length of the contracted
leases as of the financial position date, until the lease contracts full
expiration.
Weighted Average Interest Rate
The average of the interest rate charged on the Group's loans, weighted by the
relative outstanding balance of each loan at the year or period end.
WIBOR
Warsaw Interbank Offered Rate.
COMPANY DIRECTORY
Registered Office
Plaza House
Fourth Floor
Admiral Park
St Peter Port
Guernsey
PO Box 336
GY1 3UQ
Nominated Adviser and Broker
Panmure Liberum Limited
Ropemaker Place, Level 12
25 Ropemaker Street London EC2Y 9LY
Investment Adviser (wholly owned subsidiary of the Company)
Globalworth Investment Advisers Limited
Plaza House
Fourth Floor
Admiral Park
St Peter Port
Guernsey
PO Box 336
GY1 3UQ
Auditors
Ernst & Young Cyprus Limited
Esperides Building 10 Esperidon Street
1087 Nicosia, Cyprus
P.O Box 21656 1511
Administrator
IQ EQ (Guernsey) Limited
Plaza House
Fourth Floor
Admiral Park
St Peter Port
Guernsey
GY1 2HU
Company Secretary
Nicola Marrin
Plaza House
Fourth Floor
Admiral Park
St Peter Port
Guernsey
GY1 2HU
Registrar
MUFG Corporate Markets (Guernsey) Limited
Mont Crevalt House
Bulwer Avenue
St. Sampson, Guernsey
GY2 4LH
Globalworth Real Estate Investments Limited
Plaza House
Fourth Floor
Admiral Park
St Peter Port
Guernsey
PO Box 336
GY1 3UQ
Email: enquiries@globalworth.com (mailto:enquiries@globalworth.com)
www.globalworth.com (http://www.globalworth.com/)
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