Condensed Unaudited Results to 31 Dec 2019

RNS Number : 2938F

Globalworth Real Estate Inv Ltd

06 March 2020

 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this information is considered to be in the public domain.

6 March 2020

Globalworth Real Estate Investments Limited

("Globalworth" or the "Company")

Condensed Unaudited Financial Results for the year ended 31 December 2019

Globalworth, the leading office investor in Central and Eastern Europe, is pleased to publish its Unaudited Consolidated Statement of Comprehensive Income and Unaudited Consolidated Statement of Financial Position for the year ended 31 December 2019.

The Company intends to announce its audited Financial Results for the year ended 31 December 2019 and the Posting of its 2019 Annual Report at the end of March 2020.

Key Highlights for the year ended 31 December 2019

- Combined portfolio value rose by 23.7% to over €3.0bn

- Completed or announced 11 new real estate investments for a total of €613.8m

- Took full ownership of and delisted our subsidiary Globalworth Poland from the Warsaw Stock       Exchange

- Delivered a 17.8k sqm industrial facility and, with seven office and industrial properties under  construction in Romania and Poland, expect to add 176.2k sqm of GLA in 2020 / 2021

- Standing portfolio footprint increased by over 170k sqm to 1.2m sqm of GLA. Commercial occupancy of 95.0% including tenant options, with 0.4% increase in like-for-like occupancy

- Record year in leasing, with 179.5k sqm of commercial space taken-up or extended at an average WALL of 5.5 years

- Standing contracted rent increased by 15.6% to €184.4m, increasing to €191.0m when including pre-lets on properties under construction

- Revenue and Net Operating Income increased by 15.3% to €222.2m and 10.7% to €147.7m respectively

- Increased the number of green-certified properties by 13 to 43, now 81.3% of our standing commercial portfolio by value with the remainder under certification

- Eurobonds recognised as investment grade by all three major rating agencies following upgrades from Moody's and S&P to Baa3 and BBB- respectively

- Loan to Value was 34.7% at 31 December 2019, down from 43.9% at 31 December 2018, consistent with the Group's strategy to manage its long-term LTV target at below 40% while still pursuing strong growth

- EPRA NAV per share increased by 2.9% to €9.30 per share at 31 December 2019 (31 December 2018: €9.04)

- IFRS earnings per share increased to 93 cents in 2019, an increase of 52.5% compared to the previous year (2018: 61 cents)

- Further strengthened our in-house asset management footprint, with 76.9% of our standing commercial portfolio by value now internally managed by our team of c.240 professionals

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2019

		2019	2018
		Unaudited	Audited
	€'000		€'000
Revenue	222,246		192,801
Operating expenses	(74,534)		(59,360)
Net operating income	147,712		133,441
Administrative expenses	(19,302)		(15,253)
Acquisition costs	(240)		(1,182)
Fair value gain on investment property	117,718		34,088
Bargain purchase gain on acquisition of subsidiaries	-		251
Share-based payment expense	(496)		(509)
Depreciation on other long-term assets	(406)		(398)
Other expenses	(7,192)		(4,332)
Other income	932		330
Gain resulting from acquisition of joint venture as subsidiary	2,864		-
Foreign exchange loss	(888)		(1,214)
Gain from fair value of financial instruments	1,898		5,463
		94,888	17,244
Profit before net financing cost		242,600	150,685
Net financing cost		(45,050)
Finance cost			(41,727)
Finance income		2,416	3,289
		(42,634)	(38,438)
Share of profit of equity-accounted investments in joint ventures		7,750	3,095
Profit before tax		207,716	115,342
Income tax expense		(31,535)	(15,425)
Profit for the year		176,181	99,917
Other comprehensive income		-	-
Profit attributable to:		176,181	99,917
- Equity holders of the Company		170,177	80,263
- Non-controlling interests		6,004	19,654

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2019

	2019 Unaudited €'000	2018 Audited €'000
ASSETS
Non-current assets
Investment property	3,048,955	2,390,994
Goodwill	12,349	12,349
Advances for investment property	32,440	4,209
Investments in joint ventures	17,857	38,316
Equity investments	9,840	8,837
Other long-term assets	1,493	1,035
Prepayments	619	1,472
Financial assets at fair value through profit or loss	3,098	2,829
Deferred tax asset	2,869	-
	3,129,520	2,460,041
Current assets
Financial assets at fair value through profit or loss	20,487	12,878
Trade and other receivables	28,963	25,281
Contract assets	5,257	3,937
Guarantees retained by tenants	858	11
Income tax receivable	255	395
Prepayments	4,653	4,929
Cash and cash equivalents	291,694	229,527
	352,167	276,958
Total assets	3,481,687	2,736,999
EQUITY AND LIABILITIES
Total equity
Issued share capital	1,704,374	897,314
Treasury shares	(8,379)	(842)
Share-based payment reserve	5,571	2,117
Retained earnings	213,101	186,326
Equity attributable to ordinary equity holders of the Company	1,914,667	1,084,915
Non-controlling interests	-	212,407
	1,914,667	1,297,322
Non-current liabilities	1,299,616
Interest-bearing loans and borrowings		1,235,106
Deferred tax liability	134,302	106,978
Lease liabilities	30,190	-
Guarantees retained from contractors	1,074	693
Deposits from tenants	3,460	13,754
Provision for tenant lease incentives	-	780
Trade and other payables	1,316	694
	1,469,958	1,358,005
Current liabilities	24,304
Interest-bearing loans and borrowings		23,965
Guarantees retained from contractors	4,754	3,353
Trade and other payables	44,633	32,956
Contract liability	1,824	1,401
Other current financial liabilities	1,498	2,084
Current portion of lease liabilities	1,887	-
Deposits from tenants	15,988	2,241
Provision for tenant lease incentives	1,353	1,211
Dividends payable	-	10,731
Income tax payable	821	3,730
	97,062	81,672
Total equity and liabilities	3,481,687	2,736,999

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

Enquiries

Stamatis Sapkas Tel: [phone]

Deputy Chief Investment Officer

Jefferies (Joint Broker)  Tel: [phone]

Stuart Klein

Panmure Gordon (Nominated Adviser and Joint Broker)  Tel: [phone]

Alina Vaskina

Milbourne (Public Relations)                                                  Tel: [phone]

Tim Draper

About Globalworth / Note to Editors:

Globalworth is a listed real estate company active in Central and Eastern Europe, quoted on the AIM-segment of the London Stock Exchange. It has become the pre-eminent office investor in the CEE real estate market through its market-leading positions both in Romania and in Poland. Globalworth acquires, develops and directly manages high-quality office and logistics/light-industrial real estate assets in prime locations, generating rental income from high quality tenants from around the globe. Managed by c.240 professionals across Poland and Romania, the combined value of its portfolio is €3.04 billion, as at 31 December 2019. Approximately 93.4% of the portfolio is in income-producing assets, predominately in the office sector, and leased to a diversified array of over 715 national and multinational corporates. In Poland Globalworth is present in Warsaw, Wroclaw, Lodz, Krakow, Gdansk and Katowice, while in Romania its assets span in Bucharest, Timisoara, Constanta and Pitesti. For more information, please visit www.globalworth.com and follow us on Facebook, Instagram and LinkedIn.

IMPORTANT NOTICE: This announcement has been prepared for the purposes of complying with the applicable laws and regulations of the United Kingdom and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws and regulations of any jurisdiction outside of the United Kingdom. This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "targets", "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward looking statements include all matters that are not historical facts and involve predictions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's business, results of operations, financial position, liquidity, prospects, growth or strategies and the industry in which it operates. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. Save as required by law or regulation, the Company disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.

 

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