REG - Globalworth Real Est - Notice of Interim Results & Prelim Interim Results

Globalworth Real Estate InvestmentsAnnouncement

28/08/2025 07:00

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RNS Number : 9467W  Globalworth Real Estate Inv Ltd  28 August 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

28 August 2025

Globalworth Real Estate Investments Limited

("Globalworth" or the "Company")

Notice of Interim Results & Preliminary Interim Financial Information

Globalworth plans to publish its Interim Report and Financial Statements for
the six months ending 30 June 2025 during the week commencing 22 September
2025. In advance, we are releasing unaudited preliminary financials.

Key Highlights for the period ended 30 June 2025

·      Portfolio Value: The total combined portfolio value as of 30
June 2025 increased slightly to just above €2.6 billion, primarily thanks to
small revaluation gains, a 0.6% increase (or €16.4 million) compared to 31
December 2024.

o  On a like-for-like basis the value of our standing office and mixed-use
properties as of 30 June 2025 also increased by 0.6% (or €15.4 million) to
c.€2.4 billion, compared to 31 December 2024.

 

·    Standing Portfolio Footprint: Standing portfolio footprint remained
stable, with just above 1.0 million sqm of high quality GLA across 56
buildings, the slight change in the period being due to sales of residential
and retail units from our Upground project (Bucharest, Romania) and by certain
remeasurements and adjustments.

 

·    Leasing: 52.3k sqm of commercial space leased or extended, with an
average WALL of 5.1 with Romania and Poland accounting for 53.1% and 46.9% of
leases signed in the first six months of 2025, respectively.

 

·    Commercial Occupancy: The average occupancy of our combined
commercial portfolio reached 85.9%, 0.9% lower than 31 December 2024, mostly
due to spaces becoming available in two of our office properties in Bucharest.

 

·    Contracted Rent: Annualised contracted rent remained stable in the
first six months, recording a slight increase of 0.1%, reaching €187.7
million as of 30 June 2025 compared to €187.5 million as of 31 December 2024

o  99.3% of rent comes from office and mixed-use properties.

o  98.5% of contracted rent is active, with the remainder to commence.

 

·    Debt Management: Our total debt marginally reduced by €6.2 million
due to periodic repayment of secured loans and weighted average debt maturity
reached 4.7 years

o  In April 2025, we successfully refinanced the Company's €100 million
secured facility, which was expiring in May 2025, by extending it for another
five years.

 

·    Credit Ratings: In July 2025, Fitch reaffirmed Globalworth's
investment grade rating and maintained the stable outlook. S&P changed our
rating to BB (from BB+) with stable outlook during H1-2025.

 

·    Operating Income: Net Operating Income decreased by 7.4% year-on-year
to €67.0 million.

o  Like-for-like net operating income, excluding industrial disposals, showed
a strong growth of 2.9% to €68.6 million (excluding €1.6 million one-off
non-recoverable operating expense).

o  In the first half of 2025, eligible leases were indexed at an average of
2.5%.

 

·    Finance Costs: decreased by €13.7 million year-on-year, as
comparative period had included €12.8 million of one-off costs related to
the refinancing of the 2025 and 2026 Notes in 2024

o  Like-for-like basis finance cost decreased by €1.0 million (3.0%) as
result of lower average cost of debt as compared to H1-2024.

 

·    Earnings: EPRA earnings dropped by €12.1 million to €17.7 million
(H1-2024: €29.8 million), mainly impacted by €5.6 million of asset
disposals and a one-off income tax charge of €5.9 million for fiscal periods
2020-2022.

 

·    EBITDA: Adjusted normalised EBITDA decreased by 9.9% to €57.3
million (H1-2024: €63.6 million)

o  Like-for-like EBITDA of €58.9 million (H1-2024: €58.0 million),
excluding disposals, decreased by €1 million (1.6%) as result of higher
administrative expenses.

 

·    Equity: Profit attributable to equity holders enhanced equity by
€7.5 million (H1-2024: loss of €65.3 million):

o  In 2024, we recorded a one-off €24.1 million loss from subsidiary sales
and €13.2 million loss from joint venture sale.

 

·    Dividends: Scrip Dividend Shares covering 98.2% of total share
capital were issued in April 2025, with an interim cash dividend of €0.5m
(€0.09 per share) paid to the remaining shareholders in H1 2025.

 

·    Valuation: Preliminary EPRA Net Reinstatement Value (NRV) stands at
€1.6 billion (€5.67 per share), a 3.7% decrease per share from €5.89 as
of 31 December 2024. This reduction is due to the dilutive impact of €0.15
from the 11.8 million new scrip dividend shares issued in H1 2025 at a
discount to NRV per share.

 

·    Earnings per Share: IFRS Earnings per share was 3 cents in H1 2025
(H1-2024: - 25 cents).

 

·    Liquidity: We continue to maintain a strong cash balance, being
€325.5 million as of 30 June 2025 (31 December 2024: €333.6 million).

 

·    LTV: Improved to 38.0% as of 30 June 2025 (from 38.1% on 31 December
2024) following value accretive investments in our standing portfolio.

 

·    Sustainability:

-       €2.5 billion invested in 52 (31 December 2024: 51) green
certified properties within our portfolio, accounting for 96.8% of our total
portfolio value.

-       6 properties certified or recertified with LEED Platinum
certification (the highest such type certification) in our Romanian portfolio,
during the first six months of 2025.

-       Issued the Group's seventh sustainable development report.

-       Maintained our "low-risk" rating by Sustainalytics and "A"
rating by MSCI, similar to 31 December 2024.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2025

                                                                              30 June     30 June

                                                                               2025       2024

                                                                              Unaudited   Unaudited
                                                                              €'000       €'000
 Revenue                                                                      115,697     125,034
 Operating expenses                                                           (48,654)    (52,652)
 Net operating income                                                         67,043      72,382
 Administrative expenses                                                      (9,764)     (9,287)
 Fair value loss on investment property                                       (1,659)     (50,527)
 Share-based payment expense                                                  (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)
 (Loss)/ Gain from fair value of financial instruments at fair value through  (2,021)     1,368
 profit or loss
 Gain/(Loss) before net financing cost                                        50,322      (11,037)
 Finance cost                                                                 (34,657)    (48,386)
 Finance income                                                               5,544       7,528
 Share of loss of equity-accounted investments in joint ventures              (59)        (13,198)
 Profit/(Loss) before tax                                                     21,150      (65,093)
 Income tax (expense)/ income                                                 (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)

 Profit/(Loss) attributable to:                                               8,031       (65,247)
 -      ordinary equity holders of the Company                                8,031       (65,292)
 -      non-controlling interests                                             -           45

 Total comprehensive income attributable to:                                  8,031       (65,157)
 -      ordinary equity holders of the Company                                8,031       (65,202)
 -      non-controlling interests                                             -           45

 

 

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2025

                                                                30 June    31 December
                                                                2025       2024
                                                                Unaudited  Audited
                                                                €'000      €'000
 ASSETS
 Investment property                                            2,636,941  2,585,345
 Goodwill                                                       12,039     12,039
 Advances for investment property                               2,327      3,625
 Investments in joint-ventures                                  4,021      3,960
 Equity investments                                             8,200      8,010
 Other long-term assets                                         1,777      1,765
 Prepayments                                                    576        259
 Financial assets at fair value through profit or loss          7,619      3,067
 Deferred tax asset                                             2,092      2,629
 Non-current assets                                             2,675,592  2,620,699

 Trade and other receivables                                    48,446     51,351
 Contract assets                                                5,193      5,702
 Guarantees retained by tenants                                 94         97
 Income tax receivable                                          366        118
 Prepayments                                                    5,228      2,447
 Cash and cash equivalents                                      325,456    333,560
 Current assets                                                 384,783    393,275
 Investment property held for sale                              -          35,763
 Total current assets                                           384,783    429,038
 Total assets                                                   3,060,375  3,049,737

 EQUITY AND LIABILITIES
 Issued share capital                                           1,847,540  1,822,934
 Treasury shares                                                (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)
 Total equity                                                   1,526,409  1,518,592

 Interest-bearing loans and borrowings                          1,271,985  1,178,250
 Deferred tax liability                                         123,780    118,184
 Lease liability                                                26,580     24,414
 Deposits from tenants                                          3,761      3,517
 Guarantees retained from contractors                           3,120      2,977
 Other non-current 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                          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  -          3,141
 Total current liabilities                                      102,421    201,162
 Total equity and liabilities                                   3,060,375  3,049,737

 

 

COMBINED CONSOLIDATED PORTFOLIO SNAPSHOT

AS AT 30 JUNE 2025

 

Our real estate investments are in Poland and Romania, the two largest markets
in the CEE. As of 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 / €1,290          €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                481.5k sqm                1,011.6k 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 8.6k sqm of residential assets in Romania.
 5. Total rent comprises commercial (€181.0 million) and residential (€0.2
 million in Romania) standing properties and rent in assets under redevelopment
 (€6.5 million in Poland).

 

 

For further information visit www.globalworth.com (http://www.globalworth.com)
or contact:

Enquiries

 Rashid Mukhtar                                   Tel: +40 732 800 000

 Group CFO

 Panmure Liberum (Nominated Adviser and Broker)   Tel: +44 20 7886 2500

 Atholl Tweedie

 

About Globalworth / Note to Editors:

Globalworth is a listed real estate company active in Central and Eastern
Europe, quoted on the AIM-segment of the London Stock Exchange. It has become
the pre-eminent office investor in the CEE real estate market through its
market-leading positions both in Poland and Romania. Globalworth acquires,
develops and directly manages high-quality office and industrial real estate
assets in prime locations, generating rental income from high quality tenants
from around the globe. Managed by over 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 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 forward-looking statements may be
identified by the use of forward-looking terminology, including the terms
"targets", "believes", "estimates", "plans", "projects", "anticipates",
"expects", "intends", "may", "will" or "should" or, in each case, their
negative or other variations or comparable terminology, or by discussions of
strategy, plans, objectives, goals, future events or intentions. These
forward-looking statements include all matters that are not historical facts
and involve predictions. Forward-looking statements may and often do differ
materially from actual results. Any forward-looking statements reflect the
Company's current view with respect to future events and are subject to risks
relating to future events and other risks, uncertainties and assumptions
relating to the Company's business, results of operations, financial position,
liquidity, prospects, growth or strategies and the industry in which it
operates. Forward-looking statements speak only as of the date they are made
and cannot be relied upon as a guide to future performance. Save as required
by law or regulation, the Company disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking statements in
this announcement that may occur due to any change in its expectations or to
reflect events or circumstances after the date of this announcement.

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