TIDMGWI
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 EUR3.1 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 EUR2.7
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 EUR17.9 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 EUR185.2 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 EUR72.2 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 EUR459.9 million of cash available as of 30 June 2021 and an additional
undrawn EUR215 million Revolving Credit Facility available to the Group.
-- Preliminary EPRA Net Reinstatement Value (NRV) as at 30 June 2021 of EUR1,903 million, or EUR8.61 per share, a
marginal decrease compared to EUR8.68 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 EUR2.7bn.
-- 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.EUR445k 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 PERIODED 30 JUNE 2021
30 June 30 June
2021 2020
Unaudited Unaudited
EUR'000 EUR'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 31 December 2020
Unaudited Audited
EUR'000 EUR'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 Tel: +40 732 800 000
Deputy Chief Investment Officer
Jefferies (Joint Broker) Tel: +44 20 7029 8000
Stuart Klein
Panmure Gordon (Nominated Adviser and Tel: +44 20 7886 2500
Joint Broker)
Alina Vaskina
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 EUR3.1 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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