TIDMGWI
RNS Number : 2343P
Globalworth Real Estate Inv Ltd
30 August 2017
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 inside information is now considered to be in
the public domain.
Company Update and EPRA Net Asset Value at 30 June 2017
Globalworth Real Estate Investments Limited ("Globalworth" or
the "Company") is pleased to release an update for its operations
in 2017 and its unaudited EPRA Net Asset Value as of 30 June
2017.
The operational update includes Globalworth's:
-- leasing update for the period extending between 1 June and 25 August 2017;
-- financial highlights from the six month period ending 30 June 2017; and
-- unaudited Consolidated Statement of Comprehensive Income and
unaudited Consolidated Statement of Financial Position as of and
for the six month period ended 30 June 2017.
The Company's Interim Report and Unaudited Interim Condensed
Consolidated Financial Statements as of and for the six month
period ended 30 June 2017, which will also contain these two
statements, will be published in September 2017.
The unaudited EPRA Net Asset Value as of 30 June 2017 is
presented in accordance with the stated intention of the Company to
publish its estimated NAV on a quarterly basis.
Key highlights:
-- Successfully signed an additional 12.6k sqm of commercial GLA
in our properties between 1 June and 25 August 2017, increasing our
total for the year to 30.0k sqm
-- 462.8k sqm of commercial space let or pre-let, including
Globalworth's stake in the new 47.0k sqm headquarter of Groupe
Renault Romania's to be developed in Bucharest, with a WALL of 6.2
years as of 25 August 2017
-- Our total average occupancy of commercial standing GLA was
92.6% up from 89.7% at 30 May and 83.1% at 31 December 2016
-- 8.5k sqm of additional commercial GLA under HoT and tenant
option, which would further increase occupancy of our standing
properties to 94.4%
-- Net operating income ("NOI") of EUR22.0m (H1-16: EUR19.9m),
up 11% as compared to H1-16 mainly as a result of the new lease
agreements signed during 2016 and the addition of two leased
properties to the standing commercial portfolio during H1-17
-- Normalised EBITDA(1) from ongoing operating activities of
EUR18.8m (H1-16: EUR16.2m), up 16% as compared to H1-16 due to the
increase in NOI and reduction in administration expenses
-- As a function of one-off debt restructuring expenses,
earnings after tax of EUR6.6m negative (H1-16: EUR4.7m positive)
decreased by EUR11.3m as compared to H1-16. The negative earnings
after tax resulted from the full amortisation of unamortised debt
issue costs of c.EUR16.1m, following the successful refinancing of
the Company's debt with the issuance of the EUR550m Eurobond in
June 2017 at a coupon of 2.875%. This has significantly lowered the
Company's weighted average cost of debt to 3.0% at 30 June 2017,
from 5.3% at 31 December 2016
-- Portfolio Open Market Value ("OMV")(2) of EUR1,045.4m (31
December 2016: EUR977.5m), up 6.9% as compared to 31 December
2016
-- Net Loan to Value of 27.4 per cent (31 December 2016: 20.7
per cent), up 6.7% as compared to 31 December 2016
-- Gross Loan to Value of 54.6 per cent (31 December 2016: 43.4
per cent), up 11.2% as compared to 31 December 2016
-- The increase in Net and Gross Loan to Value ratios as at 30
June 2017 as compared to 31 December 2016 is due to the temporary
effect of the successful equity and debt raising initiatives of the
Company in December 2016 and June 2017, respectively, leading to
the temporary availability of significant cash and cash equivalent
balances at 30 June 2017 (c.EUR284.3m) to be utilised for the
execution of further investments, which in turn are anticipated to
lead to an increase in NAV and reduction in the Gross and Net Loan
to Value ratios
-- Net Asset Value ("NAV") of EUR688.8m (31 December 2016:
EUR715.4m) and NAV per share of EUR7.61(3) (31 December 2016:
EUR7.91), down 3.7% and 3.8%, respectively, as compared to 31
December 2016 mainly due to the interim dividend distribution
declared in June 2017 and the full amortisation of debt issue
costs, as explained above
-- EPRA(4) NAV of EUR759.8m (31 December 2016: EUR783.8m) and
EPRA NAV per share(5) of EUR8.30 (31 December 2016: EUR8.57), down
3.1% and 3.2%, respectively, as compared to 31 December 2016 due to
the same reasons as the reduction in NAV
IMPORTANT NOTICE / FORWARD LOOKING STATEMENTS
This Announcement contains forward-looking statements. These
relate to the Company's future prospects, developments and
strategies. Forward-looking statements are identified by their use
of terms and phrases such as "believe", "could", "envisage",
"estimate", "expect", "intend", "may", "plan", "will" or the
negative of those, variations or comparable expressions, including
references to assumptions and discussions of strategy, plans,
objectives, goals, future events, intentions or expectations. The
forward-looking statements in this Announcement, including as to
expected or estimated NOI (net operating income), GLA and WALL, are
current expectations based on a number of assumptions that reflect
a substantial degree of judgment and are subject to risks and
uncertainties that could cause actual results or outcomes to differ
materially from those expressed or implied by the relevant
statements. Factors that could cause actual results and outcomes
(including NOI) to differ materially include, but are not limited
to, those discussed under "Risk Factors" in Part I of the Admission
Document of the Company dated 24 July 2013. These forward-looking
statements speak only as of the date of this Announcement.
For further information visit www.globalworth.com or
contact:
Globalworth Real Estate Investments Limited
Dimitris Raptis
Tel: +40 372 800 000
Panmure Gordon (Nominated Adviser and Joint Broker)
Andrew Potts
Tel: +44 20 7886 2500
Jefferies (Joint Broker)
Stuart Klein
Tel: +44 20 7029 8000
Milbourne (Public Relations)
Tim Draper
Tel: +44 7903 802545
About Globalworth
Globalworth is a real estate investment company active in the
SEE and CEE regions with a prime focus on Romania. The Company is
internally managed by c.70 professionals and its portfolio
comprises high quality real estate investments valued at c.EUR1.0
billion at 30 June 2017, all located in Romania.
______________________
(1) Calculated as profit before finance cost, depreciation,
amortisation of other non-current assets, gain on acquisition of
subsidiaries, fair value gain on investment property, and other
non-operational and / or non-recurring income and expense
items.
(2) Portfolio OMV is based on appraised valuations performed by
Coldwell Banker as of 30 June 2017.
(3) The number of ordinary shares used to calculate Net Assets
Value "NAV" per share as of 30 June 2017 were 90,465,754 (31
December 2016: 90,396,948). If the 1,072,962 shares that will be
issued during 2017 is taken into account, the diluted NAV per share
at 30 June 2017 would amount to EUR7.53 per share (31 December
2016: EUR7.82 per share).
(4) "EPRA" The European Public Real Association Estate is a
non-profit association representing Europe's publicly listed
property companies.
(5) The number of ordinary shares used to calculate the EPRA Net
Assets Value "EPRA NAV" per share as of 30 June 2017 were
91,538,716 (31 December 2016: 91,469,910).
Note all numbers in this announcement are unaudited.
Leasing Update (1 June - 25 August 2017)
Globalworth's momentum in leasing spaces in its properties
continued in the period extending between 1 June and 25 August
2017. During this period, the Company successfully negotiated the
take-up of 12.6k sqm of commercial space within its buildings, with
tenants such as Microsoft, Cegedim, Nielsen and others, increasing
its total for the year to 30.0k sqm.
Overall, Globalworth continues to benefit from an increasing
demand for high quality office space in the Bucharest real estate
market and its internal leasing capabilities. The Company has
successfully negotiated the take-up of approximately 268k sqm of
commercial GLA within its buildings since the beginning of 2014,
confirming its position as one of the most successful investors and
developers in the Romanian commercial real estate market.
The average occupancy rate of our standing properties continued
to increase reaching to 92.6% on 25 August 2017 from 89.7% on 30
May, as a result of additional take-up of space in our properties
and the acquisition of Green Court Building "C".
The most notable change in occupancy rate in our portfolio was
in our Globalworth Plaza property where occupancy has now reached
79.5%, representing an increase of +39.6% from 30 May 2017.
Occupancy has further increased in our flagship Globalworth Tower
and City Offices properties which as of 25 August were 98.1% and
41.9% respectively (from 96.3% and 34.5% as of 30 May 2017).
In addition, we are currently at different stages of discussions
/ negotiation with a number of tenants for leasing the available
spaces in our portfolio, and most notably have signed Heads Of
Terms ("HoT") and have options available to tenants for the take-up
of an additional 8.5k sqm of office space in certain properties
which should they materialize would result in occupancy rate in
Globalworth Plaza, Gara Herastrau office and City Offices to exceed
90%, 93% and 52% respectively. Our average occupancy including the
aforementioned leases currently under HoT and tenant options would
reach 94.4%.
New contracts signed between the beginning of June and 25 August
2017 included well-known national and multinational corporates such
as Microsoft (Globalworth Plaza) for 3.6k sqm, RCS-RDS (City
Offices) for 2.7k sqm, Amoma (Globalworth Plaza) for 2.3k sqm,
Cegedim (Globalworth Plaza) for 1.2k sqm and Nielsen (Globalworth
Plaza) for 1.2k sqm.
Tenancies in our portfolio have been signed with over 120
national and multinational corporates from 20 countries, operating
in 27 different sectors / industries.
The WALL remaining on the commercial lease space in the
Company's portfolio was approximately 6.2 years (at 25 August
2017).
Commercial Contracted Rent Expiration Profile
(% of total)
-----------------------------------------------------------
Year 2017 2018 2019 2020 2021 >=2022
-------- ------ ------ ------ ------- ------ --------
% 3.3% 0.8% 1.4% 13.6% 8.0% 72.9%
-------- ------ ------ ------ ------- ------ --------
% of Contracted Selected Tenants of Commercial
Tenant Origin: Rent Portfolio
--------------------- ---------------- -----------------------------------------
Multinational 84.5% ABB, Abbott Laboratories,
Adecco, ADP, Anritsu Solutions,
Bayer, Baker Tilly, Billa,
BRD, Bunge, Capgemini, Carrefour,
Cegeka, Clearanswer, Colgate-Palmolive,
Continental, Credit Agricole
Bank, Dacia / Renault Group,
Delhaize Group, Deutsche
Telekom, EADS, Elster Rometrics,
Ericsson, EY, Ferrero, GfK,
General Motors, Grant Thornton,
Honeywell, Hewlett Packard
Enterprise, Huawei, Intel,
Legrand, Litens Automotive,
Merck, Mood Media, NBG Group,
Nestle, Orange, Piraeus
Bank, Procredit Bank, Saipem,
Sanofi, Schneider Electric,
Skanska, Starbucks, Stefanini,
Subway, Telekom, Tradeshift,
Tripsta, UniCredit, Valeo,
Vodafone, Wipro, Worldclass,
Zara / Inditex
--------------------- ---------------- -----------------------------------------
National 11.1% CITR, Creative Media, Enel
Muntenia, GlobalVision,
NNDKP, NX Data, Patria Bank,
RINF
--------------------- ---------------- -----------------------------------------
State Owned Entities 4.4% Hidroelectrica, Ministry
of European Funds
--------------------- ---------------- -----------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
30 June 2017 30 June 2016
(Unaudited) (Unaudited)
EUR'000 EUR'000
---------------------------------------------- ------------- --- -------------
Revenue 34,938 32,035
Operating expenses (12,957) (12,147)
Net operating income 21,981 19,888
---------------------------------------------- ------------- --- -------------
Administrative expenses (3,224) (3,593)
Acquisition costs (303) (21)
Fair value gain on investment property 682 5,420
Gain on acquisition of subsidiaries 2,639 -
Gain on sale of subsidiary - 272
Share based payment expense (3) (11)
Depreciation on other long-term assets (76) (101)
Foreign exchange loss (229) (82)
Other operating expenses (1,493) (431)
Other operating income 5 3,166
---------------------------------------------- ------------- --- -------------
(2,002) 4,619
---------------------------------------------- ------------- --- -------------
Profit before net financing cost 19,979 24,507
---------------------------------------------- ------------- --- -------------
Finance cost (27,330) (19,329)
Finance income 583 146
Share of loss of joint ventures (23) -
---------------------------------------------- ------------- --- -------------
Profit /(loss) before tax (6,791) 5,324
---------------------------------------------- ------------- --- -------------
Income tax expense 195 (631)
---------------------------------------------- ------------- --- -------------
Profit / (loss) for the period (6,596) 4,693
---------------------------------------------- ------------- --- -------------
Other comprehensive income - -
---------------------------------------------- ------------- --- -------------
Attributable to equity holders of the parent (6,596) 4,693
---------------------------------------------- ------------- --- -------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 June 31 December
2017 2016
(Unaudited) (Audited)
EUR'000 EUR'000
--------------------------------------- ------------- ----------------
ASSETS
Non-current assets
Investment property 1,048,110 980,892
Goodwill 12,349 12,349
Advances for investment property 10,883 2,454
Investments in joint-ventures 1,675 -
Other long-term assets 634 722
Other receivables 1,183 1,183
Prepayments 1,039 1,022
--------------------------------------- ------------- ----------------
Non-current assets 1,075,873 998,622
--------------------------------------- ------------- ----------------
Current assets
Trade and other receivables 10,585 10,807
Guarantees retained by tenants 319 277
Income tax receivable 250 411
Prepayments 297 348
Cash and cash equivalents 284,296 221,337
--------------------------------------- ------------- ----------------
295,747 233,180
--------------------------------------- ------------- ----------------
Total assets 1,371,620 1,231,802
--------------------------------------- ------------- ----------------
EQUITY AND LIABILITIES
Equity
Issued share capital 538,567 538,114
Unpaid share capital 8,584 8,584
Share based payment reserve 1,626 2,139
Retained earnings 140,059 166,557
--------------------------------------- ------------- ----------------
Equity attributable to ordinary
equity holders of the parent 688,836 715,394
--------------------------------------- ------------- ----------------
Non-current liabilities
Interest-bearing loans and borrowings 556,878 375,570
Deferred tax liability 73,630 70,575
Guarantees retained from contractors 33 33
Deposits from tenants 2,643 2,261
Trade and other payables 1,857 2,188
--------------------------------------- ------------- ----------------
635,041 450,627
--------------------------------------- ------------- ----------------
Current liabilities
Interest-bearing loans and borrowings 1,610 38,665
Guarantees retained from contractors 2,563 2,394
Trade and other payables 19,396 20,726
Other current financial liabilities 3,004 3,574
Finance lease liabilities - 4
Deposits from tenants 980 374
Dividend payable 19,902 -
Income tax payable 288 44
--------------------------------------- ------------- ----------------
47,743 65,781
--------------------------------------- ------------- ----------------
Total equity and liabilities 1,371,620 1,231,802
--------------------------------------- ------------- ----------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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