Notice of Interim Results & Prelim Results

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: [phone]
Jefferies (Joint Broker) Stuart Klein		Tel: [phone]
Panmure Gordon (Nominated Adviser and Joint Broker) Alina Vaskina		Tel: [phone]

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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