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

Globalworth Real Estate InvestmentsAnnouncement

31/08/2021 07:05

RNS Number : 1103K
  
Globalworth Real Estate Inv Ltd
  
31 August 2021
  
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
31 August 2021
Globalworth Real Estate Investments Limited 
("Globalworth" or the "Company")
Notice of Interim Results & Preliminary Interim Financial Information
Globalworth announces that it intends to publish its Interim Report and Financial Statements for the six-month period ended 30 June 2021 during the week commencing 20 September 2021. Ahead of this publication, the Company is today providing a preliminary release of its unaudited Consolidated Statement of Comprehensive Income and unaudited Consolidated Statement of Financial Position to 30 June 2021. 
 
Key Highlights for the period ended 30 June 2021

Total combined portfolio value increased by 1.3% to €3.1 billion, mainly due to new acquisitions and net positive impact from our developments.

Like-for-like appraised value of standing commercial properties remained effectively unchanged at €2.7 billion (0.1% lower compared to 31 December 2020).


Completed the development of Globalworth Square in Bucharest adding 29.1k sqm class "A" office space to our portfolio.
Prioritised the development of new high-quality logistic / light-industrial facilities in Romania (99.7k sqm) and the refurbishment / repositioning of two mixed-use properties in Poland aiming at increasing their class "A" office space and improving their retail/commercial offering, in response to current market conditions.
Acquired two high-quality logistics / light-industrial facilities in the western part of Romania with a total area of 27.0k sqm for €17.9 million which are 100% let to two multinational tenants on 15-year lease agreements.
Overall standing portfolio footprint net increase of 31.7k sqm to 1.3m sqm of GLA in 66 standing properties.
Leasing transactions of 194.4k sqm (+68.2% increase compared to H1-2020) of commercial space taken-up or extended, representing our best semester to date, at an average WALL of 4.7 years.
Average standing occupancy of our combined commercial portfolio of 88.7% (89.7% including tenant options), lower by 2.4% compared to 31 December 2020, due to average occupancy of three new standing properties lower than the Group average, and the 1.3% decrease in like-for-like occupancy due to very challenging market conditions.
Total annualised contracted rent increased by 1.0% to €185.2 million compared to year-end 2020, of which:

91.4% from office and industrial properties
94.7% in active leases


Rate of collections for rents invoiced and due remaining high at 98.7%.
Net Operating Income decreased by 9.4% to €72.2 million compared to the first half of 2020, including the 1.3% impact due to restrictions addressing COVID-19.
Maintained our investment grade rating by all three major rating agencies post their 2020 year-end review of the Company.
Loan to Value of 39.2% at 30 June 2021, consistent with the Group's strategy to manage its long-term LTV target at below 40%.
Liquidity position remained high with €459.9 million of cash available as of 30 June 2021 and an additional undrawn €215 million Revolving Credit Facility available to the Group.
Preliminary EPRA Net Reinstatement Value (NRV) as at 30 June 2021 of €1,903 million, or €8.61 per share, a marginal decrease compared to €8.68 at 31 December 2020 mainly due to payment of interim dividend in period and negative impact of the IFRS valuation losses recorded.
IFRS Earnings per share of 6 cents in H1-2021 (H1-2020: 22 cents negative, as a result of the negative impact of revaluations recorded).
57 green certified properties in our portfolio as at 30 June valued at €2.7bn.
Issued the third sustainable development report for the Group for FY 2020, and our inaugural Green Bond Report.
Maintained our low-risk rating by Sustainalitics and BBB by MSCI.
Maintained our strong focus of giving back to our community, with Globalworth and the Globalworth Foundation contributing c.€445k in more than 10 initiatives in Romania and Poland.
The consortium of CPI Property Group and Aroundtown currently holds 60.6% of the share capital of the Company, via Zakiono Enterprises Limited, following the successful completion of a cash offer for the acquisition of Globalworth shares at Eur 7.00 / share which was initiated by way of a formal offer first announced on 12 May 2021. 







INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2021
 




 


30 June
 2021
Unaudited


30 June 
2020
Unaudited




 


€'000


€'000




Revenue


108,110


114,039




Operating expenses


(35,957)


(34,392)




Net operating income


72,153


79,647




Administrative expenses


(9,323)


(8,824)




Acquisition costs


-


(2,302)




Fair value loss on investment property


(14,703)


(91,977)




Share-based payment expense 


(432)


(194)




Depreciation on other long-term assets


(259)


(203)




Other expenses


(795)


(1,444)




Other income


476


285




Foreign exchange loss


(50)


(167)




(Loss)/gain from fair value of financial instruments at fair value through profit or loss


(243)


151




 


(25,329)


(104,675)




Profit/(loss) before net financing cost


46,824


(25,028)




Net financing cost


 


 




Finance cost


(27,523)


(23,528)




Finance income


839


1,203




 


(26,684)


(22,325)




Share of (loss)/profit of equity-accounted investments in joint ventures


(1,273)


1,258




Profit/(loss) before tax


18,867


(46,095)




Income tax expense


(6,333)


(2,487)




Profit/(loss) for the period


12,534


(48,582)




Other comprehensive income


-


-




Total comprehensive income


12,534


(48,582)




 




Profit/(loss) attributable to equity holders of the Company


12,534


(48,582)




 
 
 
 
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021




 


30 June 
2021
Unaudited
€'000


31 December 2020
Audited
€'000




ASSETS


 


 




Non-current assets


 


 




Investment property


3,049,467


3,013,014




Goodwill


12,349


12,349




Advances for investment property


4,128


4,215




Investments in joint ventures


33,190


28,358




Equity investments


10,589


10,369




Other long-term assets


1,957


2,148




Prepayments


387


432




Deferred tax asset


137


786




 


3,112,204


3,071,671




Current assets


 


 




Financial assets at fair value through profit or loss


7,510


7,695




Trade and other receivables


17,354


16,025




Contract assets


1,840


2,819




Guarantees retained by tenants


887


894




Income tax receivable


846


931




Prepayments


5,614


2,227




Cash and cash equivalents


459,893


527,801




 


493,944


558,392




Total assets


3,606,148


3,630,063




EQUITY AND LIABILITIES


 


 




Issued share capital


1,704,374


1,704,374




Treasury shares


(9,592)


(12,977)




Share-based payment reserve


3,557


6,184




Retained earnings


37,187


57,783




Equity attributable to ordinary equity holders of the Company


1,735,526


1,755,364




Non-current liabilities


 


 




Interest-bearing loans and borrowings


1,284,655


1,604,043




Deferred tax liability


149,713


144,843




Lease liabilities


26,965


27,324




Guarantees retained from contractors


2,307


2,235




Deposits from tenants


3,558


3,449




Trade and other payables


1,012


692




 


1,468,210


1,782,586




Current liabilities


 


 




Interest-bearing loans and borrowings


340,211


26,051




Guarantees retained from contractors


3,417


4,032




Trade and other payables


37,835


40,209




Contract liability


2,488


2,088




Other current financial liabilities


552


875




Current portion of lease liabilities


2,096


1,765




Deposits from tenants


15,575


16,245




Provision for tenant lease incentives


-


46




Income tax payable


238


802




 


402,412


92,113




Total equity and liabilities


3,606,148


3,630,063




 
 
 
For further information visit www.globalworth.com or contact: 
 




Enquiries 
 


 




Stamatis Sapkas
Deputy Chief Investment Officer
 


Tel: +40 732 800 000




Jefferies (Joint Broker)
Stuart Klein
 


Tel: +44 20 7029 8000




Panmure Gordon (Nominated Adviser and Joint Broker)
Alina Vaskina
 


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 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 230 professionals across Cyprus, Guernsey, Poland and Romania, a combined value of its portfolio is €3.1 billion, as at 30 June 2021. Approximately 95.1% of the portfolio is in income-producing assets, predominately in the office sector, and 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, Timisoara, Constanta and Pitesti. For more information, please visit www.globalworth.com and follow us on Facebook, Instagram and LinkedIn.
 
IMPORTANT NOTICE: This announcement has been prepared for the purposes of complying with the applicable laws and regulations of the United Kingdom and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws and regulations of any jurisdiction outside of the United Kingdom. This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "targets", "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward looking statements include all matters that are not historical facts and involve predictions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's business, results of operations, financial position, liquidity, prospects, growth or strategies and the industry in which it operates. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. Save as required by law or regulation, the Company disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.

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