TIDMGWI
RNS Number : 1405U
Globalworth Real Estate Inv Ltd
24 March 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
24 March 2023
Globalworth Real Estate Investments Limited
("Globalworth" or the "Company")
Audited Results for the year ended 31 December 2022,
Posting of Annual Report and
Notice of AGM
Globalworth, the leading office investor in Central and Eastern
Europe, announces that further to the publication on 3 March 2023
of its Condensed Unaudited Financial Results, it is pleased to
release its Annual Report and Audited Consolidated Financial
Results for the year ended 31 December 2022 ("2022 Annual
Report").
Key Highlights for the year ended 31 December 2022
-- Total combined portfolio value remained effectively unchanged
at EUR3.2 billion (0.2% higher compared to 31 December 2021).
o Combined standing commercial properties at year-end were
appraised at EUR2.9 billion. Like-for-like properties marginally
lower at EUR2.8 billion (1.3% decrease compared to 31 December
2021), with new facilities acquired or completed in 2022 adding
EUR75.5 million in standing commercial portfolio value.
-- Focused development program in select high-quality projects.
o Romania; delivered 6 new logistics facilities offering 104.4k
sqm of GLA, with 3 logistics facilities under development which are
expected to have a total GLA of 30.0k sqm.
o Poland; two mixed-use properties under
refurbishment/repositioning.
-- Acquired the first small business units logistic facility in
Romania (Bucharest), with a total area of 7.1k sqm.
-- Overall standing portfolio footprint net increase of 103.3k
sqm (+7.9% compared to 31 December 2021) to 1.4m sqm of GLA in 71
standing properties.
-- Leasing transactions of 206.9k sqm of commercial space at an
average WALL of 4.4 years, despite continued challenging market
conditions.
-- Average standing occupancy of 85.6% (85.9% including tenant
options), 2.9% lower compared to 31 December 2021.
o Addition of 7 properties with an average occupancy of 54.2%,
some of which are in the lease-up phase, negatively impacted the
overall combined standing occupancy.
o Like-for-like standing occupancy adjusted for Warta Tower in
Warsaw (property held for sale and now effectively vacant), of
90.5% (+0.2% compared to 31 December 2021).
-- Total annualised contracted rent up by 3.0% to EUR189.2m
o Like-for-like annualised commercial contracted rents in our
standing commercial portfolio increased by 1.7% to EUR177.5 million
at the end of 2022, mainly as effect of rent indexation.
-- Rate of collections invoiced and due remained high at 99.0% for 2022.
-- Net Operating Income ("NOI") was lower by 3.2% compared to 2021 at EUR139.7 million.
-- EPRA earnings increased by 21.2% to EUR71.6 million (2021:
EUR59.1 million), as prior year EPRA earnings were impacted by the
exceptional one-off costs associated with the cash offer for
Globalworth's shares initiated in May 2021.
-- Adjusted normalised EBITDA decreased by 3.2% to EUR126.0
million (2021: EUR130.2 million), due to lower NOI, partially
offset by the positive impact of the lower recurring administrative
and other non-operating expenses.
-- Net loss of EUR16.1 million (2021: net profit of EUR47.5
million) due to revaluation losses of EUR89.5 million in 2022
compared to the EUR5.7 million revaluation losses in 2021.
-- Cash dividend paid to shareholders of EUR0.27 per share in 2022.
-- Preliminary EPRA Net Reinstatement Value (NRV) of EUR1.8
billion, or EUR8.29 per share, decreasing from EUR8.66 at 31
December 2021 mainly due to revaluation losses on the property
portfolio.
-- High liquidity of EUR163.8 million (vs EUR418.7 million at
2021 year-end) plus available liquidity from committed undrawn
facilities of EUR300 million; LTV 42.7% at 31 December 2022 (vs
40.1% at 2021 year-end).
-- Sustainability:
o EUR2.6 billion in 53 green certified properties.
o 45 properties were certified or recertified with BREEAM Very
Good or higher certifications during the year.
o Committed to reduce our carbon footprint based on a
science-based approach to align with a 1.5(o) C trajectory.
o Issued the third sustainable development report and our second
Green Bond Report.
o Maintained low-risk rating by Sustainalytics and our MSCI
rating to "A".
o Contributed to over 25 social initiatives in Romania and
Poland.
Availability of 2022 Annual Report and Notice of AGM
The 2022 Annual Report is available on Globalworth's website,
www.globalworth.com under the Financial Reports and Presentation
section.
The Annual General Meeting of the Company ("AGM") will be held
on 19 June 2023 at 10.00am British Summer Time at Anson Court, La
Route des Camps, St Martin, Guernsey GY4 6AD. The notice of this
year's AGM will be included in a separate circular to shareholders,
will be issued to shareholders and notified via RNS at least 10
clear days before the meeting, and will also in due course be
available on the Company's website in accordance with AIM Rule
20.
For further information visit www.globalworth.com or
contact:
Enquiries
Stamatis Sapkas Tel: +40 732 800 000
Chief Financial Officer
Panmure Gordon (Nominated Adviser and Broker) Tel: +44 20 7886 2500
Dominic Morley
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 260 professionals across
Cyprus, Guernsey, Poland and Romania, a combined value of its
portfolio is EUR3.2 billion, as at 31 December 2022. Approximately
96.4% of the portfolio is in income-producing assets, predominately
in the office sector, and leased to a diversified array of over 690
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,
Pitesti, Arad, Oradea and Targu Mures.
For more information, please visit www.globalworth.com and
follow us on Facebook, Instagram and LinkedIn.
CEO Statement
Adapting our strategy to tumultuous macro and property
markets
"At Globalworth we focus on providing our business partners with
high- quality spaces in Poland and Romania that are sustainable,
technologically advanced, and tailored to their unique needs. Our
premium spaces and services are geared towards ensuring the success
of our tenants' and our business.
Dennis Selinas
Chief Executive Officer
Dear Stakeholders,
As we move forward, we remain committed to improving our
services and providing a platform for growth that is sustainable
and at the forefront of building technology. At Globalworth, we
strive to offer our business partners and their employees the best
possible experience, and we are proud to be a trusted partner for
their ongoing success.
Navigating Our Business Through Challenging Market
Conditions
The year 2022 began with a sense of hope that, after two years
of the COVID-19 pandemic, the world was ready to start returning to
normality. However, fresh challenges soon surfaced, largely linked
to macroeconomic/geopolitical risks and the war in Ukraine. These
hurdles have given rise to supply chain disturbances, hikes in
fossil fuel prices, increased costs for transportation and
construction materials, and higher levels of inflation and interest
rates, which have put a strain on consumer incomes and businesses.
As a result, the outlook for everyone has become more
uncertain.
As a result, the economic outlook in our regions has been
revised, with slower growth predictions for 2022 and beyond than
had been previously anticipated. However, a recession in the
Eurozone is not currently expected. Another positive note is that
inflation appears to be gradually returning to more normalised
levels over the next 18-24 months.
Amidst these challenging circumstances, Globalworth's
performance demonstrated remarkable resilience, as we adhered to
our steadfast commitment to the "local landlord" approach to
managing our business. This involved undertaking a series of
carefully calibrated initiatives including:
-- Strategic investments in existing and new high-quality properties
-- Managing our portfolio to preserve and enhance operational performance
-- Maintaining a flexible capital structure that can adapt to evolving market conditions
At the core of all our endeavours was an unwavering commitment
to providing a safe and healthy environment that nurtured both work
and leisure for our tenants and for our communities.
We are confident that the extensive work carried out by our team
throughout 2022, while not fully reflected in this year's financial
results, has served to consolidate our position as the pre-eminent
landlord in our home markets of Poland and Romania and will set us
to a trajectory towards even greater performance as the markets
gradually return to a more normalised state in the future.
At this juncture, and despite my relatively short tenure at
Globalworth, I would like to extend my sincere gratitude to all of
our team members for their resolute and optimistic attitude,
unwavering commitment and efficiency, as well as our shareholders,
partners and communities for their steadfast support, all of which
have enabled us to achieve results of which we can be rightfully
proud.
Evolving Real Estate Portfolio
Our portfolio predominantly comprises Class "A" offices.
Nonetheless, following the delivery of our Class "A" Globalworth
Square office and in response to changing market dynamics, we have
in the past 12 months shifted our development focus towards
high-quality logistics facilities in Romania as well as the
ambitious redevelopment of two mixed-use properties in Poland.
Throughout the course of 2022, we successfully completed the
construction of six logistics facilities, which collectively
encompassed 104.4k sqm of GLA. Five of these facilities represent
subsequent phases of development within existing established
projects which are owned directly by us, or through JV
partnerships.
In addition, we also established a new strategic partnership
with an experienced local developer with the aim of investing in
the lucrative "small business units" segment of the logistics and
warehouse facilities market in Romania. Under this partnership, in
which we hold a controlling majority (75%) stake, we acquired our
first small-business-units project (standing) in the north-western
part of Bucharest, and we are in the process of developing a second
project which is executed in phases and is located in the
north-eastern part of the capital city.
As of 31 December 2022, Globalworth's high-quality combined
standing portfolio reached a total of 1.4m sqm. The Company
anticipates continued growth in 2023, with the finalisation of two
mixed-use properties in Poland and two industrial facilities in
Romania, adding another 104.9k sqm of GLA.
Globalworth's investment programme has also included investment
in existing properties aimed at preserving and enhancing their
value, generating long-term income and offering best-in-class real
estate space to our business partners. As a result, the Company
continues to (re)invest in all of its properties, improving the
quality of our buildings and services across the board.
Overall, the addition of new properties to Globalworth's
standing portfolio has resulted in a combined portfolio value of
EUR3.2 billion as at 31 December 2022, representing a +0.2%
increase compared to the end of 2021.
Our Leasing and Occupancy
The ability to lease spaces within our portfolio is a critical
factor in both our short- and long-term success. In 2022, despite
the persistently challenging market conditions, we were able to
successfully negotiate the take-up or extension of 206.9k sqm of
commercial space, within an average WALL of 4.4 years. It is worth
noting that the majority (52.4% by GLA) of our leasing activity
involved new take-up of available spaces.
As at 31 December 2022, the standing occupancy of our combined
commercial portfolio was 85.6% (85.9% including tenant options),
representing a 2.9% decrease from the previous 12 months. However,
this decline can be primarily attributed to the addition of several
new properties in our portfolio, most of which are in their
lease-up phase, and Warta Tower in Warsaw which is now effectively
vacant and is being sold.
-- Like-for-like standing occupancy of our combined commercial
portfolio adjusted for Warta Tower was 90.5% (+0.2% compared to 31
December 2021).
Despite the uncertainty in the market and the cautious approach
of tenants, headline market rental levels across our portfolio
remained relatively stable. We attribute this to the quality of our
properties, our active asset management initiatives, and our
commitment to sustainable development.
The total annualised contracted rent of our combined portfolio
increased by 3.0% to EUR189.2 million, compared to year-end 2021,
with like-for-like annualised commercial contracted rents in our
combined standing commercial portfolio increasing by 1.7% to
EUR177.5 million.
It is noteworthy that most of our tenants are large
multinational or national corporations and their operations within
our portfolio had no significant exposure to Ukraine or Russia.
Therefore, our business has not been directly impacted by the war.
Nevertheless, it is important to recognise that no business is
entirely immune to the war's effects on the macro economy through
its impact on inflation and interest rate transmission
mechanisms.
In both Poland and Romania, the COVID-19 pandemic has resulted
in increased construction costs and reduced office development
activity thereby limiting new supply. We anticipate that this will
result in fewer new, high-quality offices being available for lease
in central locations over the next few years.
Furthermore, the disparity between A-grade properties with
robust ESG credentials and B-grade properties has been growing from
both an investment and a leasing perspective. This trend is
expected to work in favour of our portfolio of high-quality
properties in the future.
Given these factors, and the quality of our services and
properties, we are confident that we will be able to lease the
available spaces in our portfolio in due course.
However, it is important to note that competition between
landlords for high-quality tenants remains intense, particularly in
regional cities in Poland. This is likely to impact the level of
effective rents achieved or attainable in the market and in our
portfolio.
Our Financial Results
In a year fraught with numerous challenges, our unwavering
operational focus and business expansion have been partly reflected
in our annual results.
Despite market conditions, our rental income for the year
remained virtually unchanged compared to the previous year. The
positive effect of our operating initiatives and the addition of
new standing properties were counterbalanced by relatively higher
amortisation expenses in 2022, active leases and fluctuations in
occupancy.
Moreover, our Net Operating Income and EBITDA decreased by 3.2%
annually. This decline was due to an increase in the cost of
non-recoverable service charges (including the impact of Warta
Tower being effectively empty during the year) and property
operating costs covered by the Group as part of our ESG commitment
for spaces used in response to the Ukrainian refugee crisis.
Over the past 12 months, property values in our markets have
come under pressure, due to the challenging macroeconomic and
geopolitical environment. Furthermore, a combination of operating
performance, expanding yields, higher discount rates and capex
invested in our portfolio, which are fully reflected in valuations
and operations, contributed to negative revaluations of EUR89.5
million in our consolidated portfolio as of 31 December 2022.
As a result, the Group recorded a net loss for the year of
EUR16.1 million (2021: EUR47.5 million gain). It is worth noting,
however, excluding the impact of revaluation and exceptional items,
our net profit would be EUR72.9 million.
Dividend
Throughout the year, we disbursed two interim dividends, one in
relation to the 2021 financial year and the first interim dividend
of 2022, amounting to EUR0.13 per share and EUR0.14 per share
respectively. In summary, dividends paid to our shareholders during
2022 totalled EUR0.27 per share or EUR59.8 million. Both dividends
were at least 90% of the EPRA Earnings for their corresponding
half-year periods, as stipulated by our Articles of
Incorporation.
Balance Sheet
Ensuring ample liquidity has always been a key area of focus for
us, and we are pleased to report that during the year, we were able
to repay the remaining EUR323 million of Globalworth's inaugural
EUR550 million bond, which had been due to mature in June 2022. As
a result, Globalworth has no material debt maturing until March
2025.
Additionally, we secured new financings for a total of EUR266
million during the year, with the most noteworthy being:
-- the six-year term loan agreement for EUR85 million with the
International Finance Corporation , which is a member of the World
Bank; and
-- the EUR160 million for two new facilities (secured and
unsecured) signed with the Erste Group (undrawn at the end of
2022)
In the context of negative revaluations and recently completed
or ongoing projects, which have yet to fully realise their value
uplift, our LTV increased from 40.1% to 42.7% at year-end.
Furthermore, our EPRA Net Reinstatement Value (NRV) at the end of
the period was EUR1.8 billion, or EUR8.29 per share, representing a
4.3% decline from EUR8.66 on 31 December 2021, mainly due to
dividends paid that offset operating performance and negative
revaluations.
Despite these developments, we maintained a flexible liquidity
position at year-end, with EUR164 million in cash and cash
equivalents, and a further EUR300 million in undrawn debt
facilities. Moreover, we maintained an investment grade rating from
all three rating agencies in the 2022 review. However, the outlook
was updated to negative, reflecting a higher interest-rate
environment, deteriorating real estate market conditions, future
refinancing considerations and a more negative outlook of rating
agencies towards the real estate sector. In March 2023 S&P
updated their rating to BB+ (stable outlook).
Sustainable Development
Our strategy for sustainable development revolves around the
fundamental tenets of "People, Places and Technology". We are
committed to delivering environmentally sound, safe buildings that
cater to our occupiers' requirements while ensuring that we
continue to make positive contributions to the communities we
serve.
To that end, in 2022, we have accepted the challenge of
proactively managing the consumption and associated carbon
emissions produced during the construction and operation of our
properties. This effort is aimed at further reducing our carbon
footprint throughout the value chain, from areas within our control
to those under the purview of our tenants.
Our environmental target is to reduce GHG emissions intensity by
+40% by 2030 compared to our 2019 baseline levels (for Scope 1 and
2) and to commit to measuring and reducing Scope 3 emissions.
We also certified or recertified 45 of our properties during the
year, with our green portfolio comprising 53 environmentally
friendly properties valued at EUR2.6 billion. I am delighted that
89.8% of our standing commercial portfolio has been awarded
high-level green certifications. Moreover, all of the offices
within our portfolio have received the WELL Health-Safety Rating,
and several other properties have received additional
certifications.
However, sustainable development is not merely restricted to
green buildings. Our comprehensive approach to ESG was further
acknowledged by Sustainalytics where our "Low Risk" rating improved
to 13.9 (compared to 14.8 last year and 16.0 two years ago) and
MSCI, where we maintained our "A" rating.
Additionally, we continued to support our communities, where we
supported over 15 initiatives in Romania and Poland.
Management Changes
In 2022, there was a change in executive leadership, wherein Mr
D. Raptis and Mr A. Papadopoulos relinquished their roles as CEO
and CFO respectively. Subsequently, Mr S. Sapkas and myself assumed
these positions. I would like to express my utmost appreciation to
the departing individuals for their invaluable contributions to the
trajectory of Globalworth. As previously communicated upon my
appointment, I am eagerly anticipating the prospect of progressive
expansion, pioneering asset management innovation and an unwavering
commitment to improving our tenants' experiences, all while
delivering optimal returns to our esteemed shareholders.
Outlook
In 2023, we anticipate that macroeconomic developments,
specifically the trajectory of inflation and the response of
central banks, will have the most significant impact on the
performance of the real estate market. Despite the prevailing
market uncertainty, our Company remains steadfast in its focus on
liquidity initiatives, which provide us with the resources we need
to seize emerging opportunities.
Our unwavering commitment to providing sustainable office space
that is highly appealing to the employees of our tenants, and
adheres to the strictest environmental standards, continues to be a
top priority. We are confident that this commitment, combined with
the flexibility we offer our clients, will enable us to maintain
robust leasing activities in 2023, irrespective of any challenges
posed by the market's fluctuating conditions.
In conclusion, I have complete faith in the resilience of
Globalworth in the face of market turbulence, and I believe that
our prospects are bright. Our focus on liquidity and
sustainability, coupled with the flexibility we offer our clients,
positions us well to navigate any challenges that may arise and to
continue to thrive. We look forward to the opportunities that the
future holds, and we are eager to achieve greater success in the
coming years.
Dennis Selinas
23 March 2023
"At Globalworth, we strive to offer our business partners and
their employees the best possible experience, and we are proud to
be a trusted partner for their ongoing success."
Standing Portfolio Review
We operate best-in-class real estate spaces in Poland and
Romania
Our high-quality standing portfolio grew by 103.3k sqm to 1.4m
sqm, valued at EUR2.9 billion at year-end 2022.
We provide our business partners with high-quality spaces in
some of the most important real estate markets in Poland and
Romania, that are sustainable, technologically advanced, and custom
fitted to their requirements, offering premium services to allow
the businesses to succeed.
By effectively managing our real estate portfolio, we aim to
offer our investors an efficient gateway to the two largest markets
in Central and Eastern Europe.
Increased Our Footprint to 1.4m sqm
In 2022, our combined portfolio of standing properties grew by
103.3k sqm with the addition of seven logistics facilities in
Romania. Four facilities are in Bucharest, including our first
small business units facility acquired in April, and three in
regional cities of Romania (Pitesti, Constanta and Timisoara).
Overall, our standing portfolio predominantly comprises 30 Class
"A" offices (50 properties in total) and a mixed-use investment
(with five properties in total) in central locations in Bucharest
(Romania), Warsaw (Poland) and five of the largest office
markets/cities in Poland (Krakow, Wroclaw, Katowice, Gdansk
and Lodz), which in total account for 89.4% of our standing
portfolio by value.
-- During the year, the size of our office and mixed-use
portfolio remained unchanged; however, we expect it to grow in 2023
following the completion of the repositioning/redevelopment of two
mixed-used properties in Poland.
In addition, in Romania, we fully own two
logistics/light-industrial parks with six facilities in Timisoara,
one industrial park in Pitesti (two facilities), two modern
warehouses in Arad and Oradea, and, since earlier this year, we
also own the majority stake (75% ownership) in a small business
units facility and another warehouse (delivered in November), both
in the Bucharest area. We have 50% ownership through a joint
venture of two other logistics/business parks (with three standing
facilities) in Bucharest and Constanta. We also own part of a
residential complex in Bucharest.
During the year, our standing commercial portfolio's total GLA
increased 8.7% to reach 1,383.2k sqm at the end of December 2022
whilst our overall standing portfolio (commercial and other)
increased in GLA by 7.9% to 1,405.6k sqm due to the sale of
residential units in our Upground residential project.
Standing Portfolio Value at EUR2.9 billion
The appraised value of our combined standing portfolio as of 31
December 2022 was EUR2.9 billion (+1.4% in commercial properties).
This overall increase is mainly attributable to the addition of new
properties through acquisition and completion, partly offset by
relatively small revaluation losses of properties held throughout
the period (like-for-like) and by the sale of certain units in our
Upground residential complex.
The value of like-for-like standing commercial properties
decreased by 1.3% as of 31 December 2022 compared to the prior
year, as the reduction in value by 1.7% of our like-for-like
standing office and mixed-use properties was offset by the increase
in value of our industrial properties.
Globalworth Combined Standing Portfolio: 2022 Evolution
----------------------------------------------------------
GAV - 31 December 2021 EUR2,866.3m
----------------------------------------- ---------------
Like for Like Change* -EUR34.6m
----------------------------------------- ---------------
Acquisitions of Properties +EUR7.2m
----------------------------------------- ---------------
Delivery of Properties +EUR68.3m
----------------------------------------- ---------------
Sales -EUR13.7m
----------------------------------------- ---------------
GAV - 31 December 2022 EUR2,893.6m
----------------------------------------- ---------------
* Like-for-Like change represents the changes in GAV of standing
properties owned by the Group at 31 December 2021 and 31 December
2022.
Globalworth Combined Standing Portfolio: 2022 Evolution
-------------------------------------------------------------
Total Standing YE 2021 1,302.3k sqm
---------------------------------------- -------------------
of which Standing Commercial YE
2021 1,272.0k sqm
---------------------------------------- -------------------
Pitesti Industrial Park (Phase
II) / logistics facility developed
in Pitesti (RO) +6.7k sqm
---------------------------------------- -------------------
Chitila Logistics Hub (Phase B
& C) / logistics facilities developed
in Bucharest (RO) +54.4k sqm
---------------------------------------- -------------------
Constanta Business Park (Phase
B) / logistics facility developed
in Constanta (RO) +19.8k sqm
---------------------------------------- -------------------
Timisoara Industrial Park II (Phase
B) / logistics facility developed
in Timisoara (RO) +19.0k sqm
---------------------------------------- -------------------
Business Park Stefanesti (Phase
A) / logistics facility developed
in Bucharest (RO) +4.4k sqm
---------------------------------------- -------------------
Business Park Chitila / logistics
and warehouse facilities acquired
in Bucharest (RO) +7.1k sqm
---------------------------------------- -------------------
Net Remeasurement Adjustments
& Other (RO & PL) -0.2k sqm
---------------------------------------- -------------------
Standing Commercial YE 2022 1,383.2k sqm
---------------------------------------- -------------------
Upground / residential complex
in Bucharest (RO)* 22.4k sqm
---------------------------------------- -------------------
Total Standing YE 2022 1,405.6k sqm
---------------------------------------- -------------------
* In 2022, units with 7.9k GLA were sold in our Upground
residential complex.
Like-for-Like Occupancy Marginally Changed in 2022
Our standing commercial portfolio's average occupancy as of 31
December 2022 was 85.6% (86.0% including tenant options),
representing a 2.9% decrease over the previous 12 months (88.5% as
of 31 December 2021 / 88.7% including tenant options).
This decrease is mainly attributable to the addition of seven
industrial properties (six deliveries and one acquisition), the
majority of which are in their lease-up phase and, consequently, at
year-end had occupancy lower than the Group average, thus
negatively impacting the overall average standing commercial
occupancy rate across our portfolio. These facilities have a total
GLA of 111.5k sqm and on 31 December 2022 were 54.2% occupied.
On a like-for-like basis, occupancy marginally decreased by 0.2%
to 88.4% at the end of the year, mainly due to the expiration of
certain ESG leases during the year (from our efforts to help in the
Ukrainian refugee crisis) and Warta Tower in Warsaw now being
effectively empty.
Like-for-like standing occupancy of our portfolio, adjusted for
Warta Tower which was in the process of being sold at year-end, was
90.5% (+0.2% compared to 31 December 2021). We see this relative
stagnation as a changing point under normalising market conditions.
Therefore, we remain confident that we will be able to lease the
available spaces in our portfolio in the future as business
conditions return to a more balanced state.
Across our standing portfolio, at 31 December 2022, we had
1,184.6k sqm of commercial GLA leased to more than 600 tenants at
an average WALL of 4.4 years, the majority of which is let to
national and multinational corporates that are well-known within
their respective markets.
Not included in our standing portfolio metrics are: 44.3k sqm
leased in our two mixed-use properties which are currently under
refurbishment/repositioning, and 4.8k sqm in our industrial
properties which are under development in Romania (Bucharest and
Targu Mures).
Occupancy Evolution 2022 (GLA k sqm) - Commercial Portfolio
Occupancy Occupancy Occupancy
Poland Rate (%) Romania Rate (%) Group Rate (%)
------------------------- ------ --------- ------- --------- ------- ---------
Standing Available
GLA - 31 Dec.
21 542.1 729.9 1,272.0
------------------------- ------ --------- ------- --------- ------- ---------
Acquired GLA - 7.1 7.1
New Built GLA - 104.4 104.4
Remeasurements,
reclassifications 0.0 (0.3) (0.2)
------------------------- ------ --------- ------- --------- ------- ---------
Standing Available
GLA - 31 Dec.
22 542.1 841.0 1,383.2
------------------------- ------ --------- ------- --------- ------- ---------
Occupied Standing
GLA - 31 Dec. 21 464.1 85.6% 662.1 90.7% 1,126.2 88.5%
Acquired/Developed
Occupied GLA - 60.4 60.4
Expiries & Breaks (56.8) (19.7) (76.5)
Renewals* 42.7 47.8 90.5
New Take-up 32.7 40.9 73.5
------------------------- ------ --------- ------- --------- ------- ---------
Other Adj. (relocations,
remeasurements, etc) 0.6 0.0 0.6
------------------------- ------ --------- ------- --------- ------- ---------
Occupied Standing
GLA - 31 Dec. 22 440.6 81.3% 743.7 88.4% 1,184.3 85.6%
------------------------- ------ --------- ------- --------- ------- ---------
Standing Portfolio Snapshot
As of 31 December 2022, our combined standing portfolio
comprised 41 investments (39 on 31 December 2021) with 71 buildings
(66 on 31 December 2021) in Poland and Romania. The appraised value
of the portfolio was EUR2,893.6 million, of which 88.4% was
environmentally certified.
Globalworth Combined Portfolio: Key Metrics
Total Standing Properties 30 Dec. 2020 31 Dec. 2021 31 Dec. 2022
-------------------------- ------------ ------------ ------------
Number of Investments 37 39 41
-------------------------- ------------ ------------ ------------
Number of Assets 64 66 71(1)
-------------------------- ------------ ------------ ------------
GLA (k sqm) 1,271.3 1,302.3 1,405.6
-------------------------- ------------ ------------ ------------
GAV (EUR m) 2,805.5 2,866.3 2,893.6
-------------------------- ------------ ------------ ------------
Contracted Rent (EUR m) 178.7 175.4 182.1
-------------------------- ------------ ------------ ------------
30 Dec. 31 Dec. 31 Dec.
Of which Commercial Properties 2020 2021 2022
--------------------------------- --------------- --------------- ---------------
Number of Investments 36 38 40
--------------------------------- --------------- --------------- ---------------
Number of Assets 63 65 70
--------------------------------- --------------- --------------- ---------------
GLA (k sqm) 1,238.9 1,272.0 1,383.2
--------------------------------- --------------- --------------- ---------------
GAV (EUR m) 2,745.9 2,810.3 2,850.3
--------------------------------- --------------- --------------- ---------------
90.9% (91.7%(2) 88.5% (88.7%(2) 85.6% (86.0%(2)
Occupancy (%) ) ) )
--------------------------------- --------------- --------------- ---------------
Contracted Rent (EUR m) 177.7 174.5 181.3
Potential Rent at 100% occupancy
(EUR m) 199.2 201.2 211.4
--------------------------------- --------------- --------------- ---------------
WALL (years) 4.5 4.7 4.4
--------------------------------- --------------- --------------- ---------------
1 Following the completion of the third phase of the Chitila
Logistics Hub, we have consolidated the three phases in one
facility.
2 Including tenant options.
Our awards:
Poland
Golden Award - Marketing Event of the Year - Hala Koszyki
Investment of the Year - Retail Space Market - Renoma
Golden Award - The Best Food Hall in Poland - Hala Koszyki
Golden Award - PR & Employer Branding
Best Interior Concept for Uniqa Polska in WTT
Romania
Best Technology Driven Office Building award at the "The
Readers' Choice Realty Awards" gala - Globalworth Square
Office Developer of the Year award at the Real Estate Gala
Logistics Project of the Year at SEE Property Forum 2022 -
Chitila Logistics Hub
Best Green Development of The Year at CIJ Awards gala -
Globalworth Square
Forbes Best Office Buildings - The New Way of Working Gala -
Globalworth Square.
Portfolio Development / Evolution
Investment activity principally focused on developing and
repositioning of 178.6k high-quality GLA in Romania and Poland
"In 2022, we continued with our active investment programme
focusing on high-quality logistics/light-industrial facilities in
Romania and the refurbishment/repositioning of two mixed-use
properties in Poland, investing over EUR52.2 million in their
acquisition and development during the year.
Dimitris Pergamalis
Group Head Globalworth Workplaces
Investment in Industrial Properties
Tenant demand for industrial properties, specifically for
warehouses, logistics and light-industrial buildings, has
significantly accelerated in recent years, supported by strong
demand for e-commerce and last-mile logistics.
In this market segment, we have been growing our footprint,
especially since the COVID-19 pandemic outbreak, where we have
added over 180k sqm of high-quality real estate spaces to our
portfolio, most of which we developed ourselves and the remainder
added through select acquisitions.
Review of New Acquisitions
In April 2022, we formed a new strategic partnership with CATTED
focusing on the "small business units" segment in logistics and
warehouse facilities in Romania. As part of this partnership in
which we own a majority (75%) stake, we acquired our first small
business units project in the north-western part of Bucharest,
close to our Chitila Logistics Hub. The project, developed by
CATTED, has been rebranded as "Business Park Chitila" and comprises
13 small units, offering 7.1k sqm of GLA and was 98.2% occupied on
31 December 2022.
We also acquired a 45k sqm land plot in the north-eastern part
of Bucharest (Stefanesti) where, together with CATTED, we are
currently constructing "Business Park Stefanesti", also focused on
small business units.
In addition, and to facilitate further the success and
development of future phases of the Constanta Business Park
project, we acquired a 34.5k sqm plot to secure a future railroad
connection for the entire park.
Review of Developments
In 2022, we continued developing high-quality
logistics/light-industrial facilities in Romania. At the beginning
of the year, we had five logistics facilities under construction
(98.9k sqm). In addition, we commenced the construction of four
other facilities with 34.4k sqm of GLA during the year.
The new facilities we commenced construction on in 2022
included:
-- our first development of small business units facilities
(three phases) in the north-eastern part of Bucharest, and
-- the first phase of the Mures City Logistics in the central northern part of Romania.
Business Park Stefanesti, located in the north-eastern part of
Bucharest, offers easy access to the Bucharest ring road and allows
for a quick connection to the centre of Bucharest via the A2
motorway. The location is considered very advantageous for housing
small business units. The project comprises three buildings to be
delivered in phases with a total of 17.7k sqm GLA, offering up to
24 units for rent, ranging from 500 to 1,500 sqm. As of 31 December
2022, the first building was already delivered and fully let to
Delivery Solutions SRL.
Mures City Logistics, located in the central northern part of
Romania, involves the development of a new facility which, on
completion, will offer 16.7k sqm of high-quality space. Targu Mures
is the seventh Romanian region we have invested in, and we elected
to expand in this sub-market due to its strategic location and
connectivity. The project is being developed with a joint venture
partner, and we own a 50% interest in the venture. As of 31
December 2022, the facility was partially pre-let to Friesland
Campina, a multinational holding the leading position in dairy
products in Romania, on a +10 years contract.
Projects Delivered
We delivered six new logistics facilities offering 104.4k sqm of
GLA. All facilities represented subsequent phases of development in
existing established projects which we directly own or through JV
partnerships.
These new facilities are in Bucharest (58.8k) and three regional
locations, in Timisoara (19.0k sqm), Pitesti (6.7k sqm), and
Constanta (19.8k sqm).
In Bucharest, deliveries were dominated by the completion of the
second and third (final) phase of the Chitila Logistics Hub, which
now offers in total 77.8k sqm of high-quality last-mile logistics
spaces close to the Bucharest ring road, providing easy access to
the capital. The first phase was delivered in Q3-2020 and is 100.0%
occupied, with the second and third phases delivered in Q1 and
Q3-2022, respectively and 90.7% and 23.8% occupied.
At the end of December 2022, the six facilities, some of which
are in their lease-up phase, were 51.2% contracted by multinational
or large national tenants like HAVI Logistics, Caroli, Linde,
Phylosophy Design and Delivery Solutions. They had a total
annualised contracted rent of EUR3.2 million at an average WALL of
7.5 years. Total annualised rent could increase to EUR5.7 million
at full occupancy.
Developments in Progress
We currently have two projects under construction expected to be
completed in the first half of 2023, further expanding our
industrial footprint by 30.0k sqm of high-quality GLA and at full
occupancy are expected to generate EUR2.4 million of annualised
rent.
Developments - Delivered Developments - Under
Construction
Timisoara
Pitesti Chitila Constanta Industrial Business
Industrial Logistics Business Park Park
Park Hub (Phases Park II Stefanesti
(Phase B and (Phase (Phase (Phase Business Mures City
II) C)* B)* B) A) Park Stefanesti(2) Logistics(1)
------------------- ----------- ------------ --------- ----------- ----------- ------------------ -------------
Location Pitesti Bucharest Constanta Timisoara Bucharest Bucharest Tg. Mures
------------------- ----------- ------------ --------- ----------- ----------- ------------------ -------------
GLA (k sqm) 6.7 54.4 19.8 19.0 4.4 13.2 16.7
------------------- ----------- ------------ --------- ----------- ----------- ------------------ -------------
Occupancy
(%) 100.0% 43.9% 86.7% 6.1% 100.0% 4.4% 25.2%
------------------- ----------- ------------ --------- ----------- ----------- ------------------ -------------
Development
Cost (EUR
m) / Estimated
CAPEX to Go 5.9 28.3 9.4 8.3 3.0 9.4 / 1.5 11.6 / 1.9
------------------- ----------- ------------ --------- ----------- ----------- ------------------ -------------
GAV (EUR
m) 7.7 32.4 13.3 10.9 4.0 8.5 8.4
------------------- ----------- ------------ --------- ----------- ----------- ------------------ -------------
Contracted
Rent (EUR
m) 0.6 1.2 1.1 0.1 0.3 0.0 0.4
------------------- ----------- ------------ --------- ----------- ----------- ------------------ -------------
100% Rent
(EUR m) 0.6 2.7 1.2 0.9 0.3 0.9 1.1
------------------- ----------- ------------ --------- ----------- ----------- ------------------ -------------
Estimated
Yield on
Development
Cost 9.6% 9.6% 13.1% 11.0% 9.6% 9.7% 9.3%
------------------- ----------- ------------ --------- ----------- ----------- ------------------ -------------
* Joint venture in which Globalworth owns 50%; figures shown on 100% basis.
1 50:50 joint venture; figures shown on 100% basis.
2 75% owned by Globalworth; figures shown on 100% basis.
Refurbishment/Repositioning of Mixed-Use Properties
Following the review back in 2020 of our portfolio and in
response to market conditions, we commenced
refurbishing/repositioning two of our three mixed-use properties in
Poland. Aiming to increase their Class "A" office space and improve
their retail/commercial offering, work started at our Renoma
landmark property in Wroclaw in H2-2020 and our centrally located
Supersam property in Katowice in H2-2021.
-- At Renoma, the refurbishment will increase the offer of Class
"A" office space on the higher floors. It will also reposition the
property's retail offer towards a more attractive food court and a
selected fashion mix on the ground floor and convenience
facilities, including a supermarket, gym and drugstore located on
the -1 level.
-- At Supersam, we are redeveloping the entire level 1 into an
office function. On level -1, we are repositioning selected retail
modules into high-quality retail and commercial spaces with food
and entertainment.
In 2022 we invested EUR12.6 million in the two properties, and
we expect to deliver the properties within 2023.
Ongoing Investment & Upgrade Programme of Our Standing
Properties
Offering best-in-class real estate space to our business
partners is a key component of our strategy at Globalworth.
We believe that through a "hands-on" approach with continuous
active management and investment in our portfolio, we can preserve
and enhance the value of our properties, generate long-term income
and offer best-in-class real estate space to our business
partners.
To be able to provide spaces for our current and future business
partners' requirements, we keep (re)investing in our properties,
maintaining and, where required, improving the quality of our
buildings and our services.
We manage all our properties in Poland internally, and in
Romania, we manage all but one of our offices in-house. This
translates to 968.2k sqm of high-quality office and mixed-use space
with an appraised value of EUR2.5 billion internally managed by our
team.
Our Upgrade Programme has resumed at a more normalised pace
since last year, following its scaling back for part of 2020 due to
COVID-19. In 2022, we invested EUR35.2 million in select
improvement initiatives in our standing commercial portfolio. As a
result of our ongoing in-house initiatives and property additions,
we hold a modern portfolio with 53 of our standing commercial
properties, accounting for 77.1% by GLA and 76.2% by commercial
portfolio value, having been delivered or significantly refurbished
in or after 2014.
Also, in Q3-2022, we chose Honeywell Forge to help us lower
maintenance costs and reduce energy consumption in our
portfolio.
Properties Under Refurbishment/Repositioning
------------------------------ ----------------------------------------------
Renoma Supersam
------------------------------ ---------------------- ----------------------
Location Wroclaw Katowice
------------------------------ ---------------------- ----------------------
Refurbishment/ Refurbishment/
Status Repositioning Repositioning
------------------------------ ---------------------- ----------------------
Expected Delivery Q2/Q3-2023 H1-2023
------------------------------ ---------------------- ----------------------
GLA - on Completion (k sqm) 48.2 26.6
------------------------------ ---------------------- ----------------------
CAPEX to 31 Dec 22 (EUR m) 14.6 3.4
------------------------------ ---------------------- ----------------------
GAV (EUR m) 108.0 44.4
------------------------------ ---------------------- ----------------------
Estimated Capex to Go (EUR
m)* 12.1 2.7
------------------------------ ---------------------- ----------------------
ERV (EUR m) 9.8 4.2
------------------------------ ---------------------- ----------------------
Estimated Yield on Completion
of Project** 9.9% 11.2%
------------------------------ ---------------------- ----------------------
* Estimated Capex to Go partially excludes tenant contributions
which are subject to tenant negotiation and may impact the final
yield on completion of the project.
** Estimated Rental Value increase versus current Contracted
rent + ERV on vacant spaces divided by total Development Capex.
Internally Managed Commercial Portfolio
as at 31 Dec. 2022
Poland Romania Group
---------------- ------------- ------------- -------------
GLA (k sqm) 542.1 426.1 968.2
---------------- ------------- ------------- -------------
% of Commercial
GLA 100% 51% 70%
---------------- ------------- ------------- -------------
% of Office and
Mixed-Use GLA 100% 92% 96%
---------------- ------------- ------------- -------------
GAV (EUR m) 1,422.6 1,088.6 2,511.2
---------------- ------------- ------------- -------------
% of Commercial
GAV 100% 76% 88%
---------------- ------------- ------------- -------------
% of Office and
Mixed-Use GAV 100% 93% 97%
---------------- ------------- ------------- -------------
Future Developments
We own, directly or through JV partnerships, other land plots in
prime locations in Bucharest, regional cities in Romania and
Poland, covering a total land surface of 1.2 million sqm
(comprising 2.8% of the Group's combined GAV), for future
developments of office, industrial or mixed-use properties. When
fully developed, these land plots have the potential to add a total
of a further 785.7k sqm of high-quality GLA to our standing
portfolio footprint.
These projects, which are classified as "Future Development",
continue to be reviewed by the Group, albeit periodically, with the
pace at which they will be developed subject to tenant demand and
general market conditions.
Future Developments
Timisoara
Constanta Industrial
Podium Business Park I and II
Park III Green Court D Globalworth West Park (Phased)* (Phased) Luterana
----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------
Location Krakow Bucharest Bucharest Constanta Timisoara Bucharest
----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------
Constr. Constr. Constr.
Status Postponed Postponed Postponed Planned Planned Planned
----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------
GLA (k sqm) 17.7 17.2 33.4 525.8 165.2 26.4
----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------
CAPEX to 31 Dec
22 (EUR m) 8.5 2.5 5.2 12.3 7.0 7.4
----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------
GAV (EUR m) 9.6 8.6 7.4 37.2 11.0 13.6
----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------
Estimated CAPEX
to Go (EUR
m)** 29.7 23.9 38.5 243.6 63.5 39.7
----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------
ERV (EUR m) 3.1 3.3 5.1 27.7 6.7 5.8
----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------
Estimated Yield
on Development
Cost 8.1% 12.6% 11.5% 10.8% 9.6% 12.3%
----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------
* 50:50 joint venture; figures shown on 100% basis.
** Initial preliminary development budgets on future projects to
be revised prior to the permitting.
Asset Management Review
Continuing to actively manage our real estate portfolio
Leasing Review
We are present in six of the seven largest office markets in
Poland, and in the largest office market and some of the most
attractive logistics/light-industrial hubs of Romania too.
Our office markets provide corporations with the necessary
infrastructure for them to operate and offer people interesting
opportunities for them to grow professionally and personally, while
our logistics/light-industrial properties benefit from locations
that are easily accessible, on or next to major road arteries,
connecting our facilities to major hubs in Romania and abroad.
The COVID-19 pandemic triggered a change in the way we work, and
how business is conducted, and, as our markets were recovering and
absorbing these changes, there was a further negative impact on the
economic and business environment from the Ukraine war, resulting
in a more uncertain outlook. The changes in market conditions
became more apparent in the second half of 2022, impacting our
overall operating performance.
As such, signing new leases, typically for large multinational
and national corporates, is taking longer in the current market
environment as tenants continue to assess their future occupational
plans and adapt to the new conditions.
In both Poland and Romania, increased construction costs and
reduced development activity, mainly as a result of the COVID-19
pandemic, limited new supply in these markets. This means that the
supply of high-quality offices in central locations in the coming
years will be lower than the average levels recorded in the past,
which may result in higher tenant demand for such properties.
In addition, we observed a widening gap between A-grade
properties with strong ESG credentials and B-grade properties, both
from an investment and a leasing perspective, which should benefit
our portfolio in the future as we actively manage our high-quality
properties with the aim of improving our operational metrics.
Headline rental levels have remained stable, and the combination
of lower supply and higher inflation should be a strong mitigant
against the negative effects of a potential slowdown in tenant
demand as a result of the weakening economic conditions.
New Leases
Our principal focus continued to be the prolongation of leases
with existing tenants in our portfolio and the take-up of available
spaces in standing properties and developments.
In the 12 months of 2022, the Group successfully negotiated the
take-up (including expansions) or extension of 206.9k sqm of
commercial spaces in Poland (42.3% of transacted GLA) and Romania
(57.7% of transacted GLA), with an average WALL of 4.4 years.
Between 1 January and 31 December 2022, the majority of our leasing
activity, involved new take-up of available spaces, with such
leases accounting for 52.4% of our total leasing activity and were
signed at a WALL of 5.4 years, while renewals accounted for 47.6%
signed at a WALL of 3.8 years.
In total, we signed new leases for 108.5k sqm of GLA, with the
majority involving spaces (+65.0%) leased to new tenants, and the
remaining areas being taken up by existing tenants which were
expanding their operations.
-- New leases were signed with 82 new tenants for 75.2k sqm of
GLA at a WALL of 5.5 years. The majority were for office spaces,
accounting for 61.3%, with the remainder involving industrial
(31.4%) and retail/other commercial spaces.
-- In addition, 52 tenants signed new leases, expanding their
operations by 33.2k sqm at an average WALL of 5.2 years.
Also, in response to the Ukrainian refugee crisis in this
period, we offered 14.9k sqm (8.1k sqm already returned to us) of
GLA in our properties in Poland and Romania to local authorities
and organisations, which we include in our performance.
During 2022, 52 of our tenants expanded their operations,
taking-up an additional 33.2k sqm at an average WALL of 5.2
years.
We also renewed leases for a total of 98.4k sqm of GLA with 97
of our tenants at a WALL of 3.8 years. It is important to note that
c.68.1% (by GLA) of these renewals were for leases that were
expiring in 2023 or later.
Summary Leasing Activity for Combined Portfolio in 2022
GLA (k sqm) No. of Tenants* WALL (yrs)
------------------------------ ----------- --------------- ----------
New Leases (incl. expansions) 108.5 125 5.4
------------------------------ ----------- --------------- ----------
Renewals/Extensions 98.4 97 3.8
------------------------------ ----------- --------------- ----------
Total 206.9 198 4.4
------------------------------ ----------- --------------- ----------
* Number of individual tenants.
Selected New Leases Signed in 2022
City Property Use GLA
-------------------- ------------- ------------------------- ----------- -----
Bucharest
Phylosophy Design (RO) Chitila Logistic Hub Industrial 10.8k
-------------------- ------------- ------------------------- ----------- -----
Timisoara Timisoara Industrial
OVT Logisticzentrum (RO) Park II Industrial 5.8k
-------------------- ------------- ------------------------- ----------- -----
Bucharest
Delivery Solutions (RO) Business Park Stefanesti Industrial 4.4k
-------------------- ------------- ------------------------- ----------- -----
Bucharest
Max Bet (RO) City Offices Office 4.3k
-------------------- ------------- ------------------------- ----------- -----
Renoma, Retro Office
Coherent Solutions Wroclaw (PL) House Office 3.8k
-------------------- ------------- ------------------------- ----------- -----
Selected Lease Extensions Signed in 2022
City Property Use GLA
-------------------- ------------- --------------------- ----------- -----
Automatic Data Bucharest
Processing Romania (RO) Gara Herastrau Office 8.3k
-------------------- ------------- --------------------- ----------- -----
Timisoara Timisoara Industrial
Litens Automotive (RO) Park I Industrial 8.1k
-------------------- ------------- --------------------- ----------- -----
Bucharest
Carrefour (RO) Green Court Complex Office 5.3k
-------------------- ------------- --------------------- ----------- -----
Olympus Business
Services Wroclaw (PL) Retro Office House Office 4.6k
-------------------- ------------- --------------------- ----------- -----
Bucharest
Delivery Solutions (RO) Globalworth Square Office 4.3k
-------------------- ------------- --------------------- ----------- -----
Average Portfolio Headline Rents in Standing Portfolio (EUR/sqm/m)
31 Dec. 2022 31 Dec. 2021 Change (%)
------------------------ ---------------- --------------- ------------
Office 14.2 14.0 1.8%
------------------------ ---------------- --------------- ------------
Industrial 4.0 3.8 4.6%
------------------------ ---------------- --------------- ------------
Retail/Commercial 14.2 13.9 2.1%
------------------------ ---------------- --------------- ------------
Average Headline Rents of New Leases Signed (EUR/sqm/m)
31 Dec. 2022 31 Dec. 2021 Change (%)
-------------------- ------------- ------------- ----------
Office 14.8 13.9 6.8%
-------------------- ------------- ------------- ----------
Industrial 3.7 3.9 -4.9%
-------------------- ------------- ------------- ----------
Retail/Commercial 14.1 12.7 11.0%
-------------------- ------------- ------------- ----------
Average: 11.9 12.1 -0.9%
-------------------- ------------- ------------- ----------
Rental Levels
Headline market rental levels have remained relatively stable in
our portfolio, despite the uncertainty in the market and the
cautious approach of tenants. This reflects the quality of our
properties, our active asset management initiatives, and our
approach to sustainable development.
Our leases typically adjust annually in the first quarter of the
year, with eligible leases indexed at an average of 3.8% in 2022.
However, this positive impact is not fully reflected in our
averages, as the rates at which leases were renewed or new leases
signed were at their respective ERV rates.
Rental levels can vary significantly between type of spaces,
buildings and sub-markets. Leases signed in 2022 were at
EUR11.9/sqm/m, 0.9% lower than their prevailing group averages.
Contracted Rents (on annualised basis)
Total annualised contracted rent across our portfolio in Poland
and Romania increased by 3.0% to EUR189.2 million compared to
year-end 2021, driven by active asset management, indexation, a new
acquisition and lease-up in our development projects (completed or
in-progress).
Total annualised contracted rents in our standing commercial
portfolio were EUR181.3 million on 31 December 2022, up by 3.9%
compared to 31 December 2021, increasing to EUR182.0 million when
including rental income generated by renting 147 residential units
and other auxiliary spaces in Upground, the residential complex in
Bucharest which we partially own.
Like-for-like annualised commercial contracted rents in our
standing commercial portfolio also increased by 1.7% to EUR177.5
million at the end of December 2022 compared to the same period in
2021, mainly as a result of rent indexation.
Annualised Contracted Rent Evolution 2022 (EURm)
Poland Romania Group
---------------------------------------------- ------ ------- ------
Rent from Standing Commercial Properties
("SCP") 31 Dec. 2021 87.9 86.6 174.5
---------------------------------------------- ------ ------- ------
Less: Space Returned (9.7) (2.0) (11.7)
---------------------------------------------- ------ ------- ------
Plus: Rent Indexation 2.5 2.6 5.2
---------------------------------------------- ------ ------- ------
Plus/Less: Lease Renewals (net impact)
& Other 0.4 (0.3) 0.1
---------------------------------------------- ------ ------- ------
Plus: New Take-up 5.4 4.0 9.4
---------------------------------------------- ------ ------- ------
Total L-f-L Rent from SCP 31 Dec.
2022 86.6 90.9 177.5
---------------------------------------------- ------ ------- ------
Plus: Standing Commercial Properties
Acquired During the Period - 0.6 0.6
---------------------------------------------- ------ ------- ------
Plus: Developments Completed During
the Period - 3.2 3.2
---------------------------------------------- ------ ------- ------
Total Rent from Standing Commercial
Properties 86.6 94.7 181.3
---------------------------------------------- ------ ------- ------
Plus: Residential Rent - 0.7 0.7
---------------------------------------------- ------ ------- ------
Total Rent from Standing Properties 86.6 95.4 182.0
---------------------------------------------- ------ ------- ------
Plus: Active and Pre-lets of Space
on Projects Under Development/ Refurbishment 6.7 0.5 7.2
---------------------------------------------- ------ ------- ------
Total Contracted Rent as at 31 Dec.
2022 93.3 95.9 189.2
---------------------------------------------- ------ ------- ------
Combined Annualised Commercial Portfolio Contracted Rent Profile
as at 31 Dec. 2022
Poland Romania Group
------------------------------------- ---------- ----------- -------
Contracted Rent (EUR m) 93.3 95.2 188.5
------------------------------------- ---------- ----------- -------
Tenant origin - %
------------------------------------- ---------- ----------- -------
Multinational 68.2% 86.4% 77.4%
------------------------------------- ---------- ----------- -------
National 30.6% 12.4% 21.4%
------------------------------------- ---------- ----------- -------
State Owned 1.1% 1.3% 1.2%
------------------------------------- ---------- ----------- -------
Note: Commercial Contracted Rent excludes c.EUR0.7 million from
residential spaces as at 31 December 2022.
Annualised Contracted Rent by Period of Commencement Date as
at 31 Dec. 2022 (EURm)
Active
Leases H1-2023 H2-2023 H1-2024 H2-2024 >2024 Total
-------------------- ------- ------- ------- ------- ------- ----- -----
Standing Properties 177.4 4.2 0.5 0.0 - - 182.0
-------------------- ------- ------- ------- ------- ------- ----- -----
Developments 6.2 0.6 0.3 - 0.1 - 7.2
-------------------- ------- ------- ------- ------- ------- ----- -----
Total 183.6 4.7 0.8 0.0 0.1 - 189.2
-------------------- ------- ------- ------- ------- ------- ----- -----
Annualised Commercial Portfolio Lease Expiration Profile as
at 30 June 2022 (EURm)
Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 >2031
------------ ----- ----- ----- ----- ----- ----- ---- ----- ---- -----
Total 20.2 28.8 19.0 19.6 25.7 19.0 13.8 27.9 4.1 10.4
------------ ----- ----- ----- ----- ----- ----- ---- ----- ---- -----
% of total 10.7% 15.3% 10.1% 10.4% 13.6% 10.1% 7.3% 14.8% 2.2% 5.5%
------------ ----- ----- ----- ----- ----- ----- ---- ----- ---- -----
The Group's rent roll across its combined portfolio is well
diversified, with the largest tenant accounting for 5.2% of
contracted rents, while the top three tenants account for 10.6% and
the top 10 account for 24.8%.
Cost of Renting Spaces
Renting spaces typically involves certain costs, such as
rent-free periods, fitouts for the space leased, and brokerage
fees, which the landlord incurs. These incentives can vary
significantly between leases and depend on market conditions, type
of lease signed (new take-up or lease extension), space leased
(office, industrial, other), contract duration and other
factors.
Headline (base) rents present the reference point typically
communicated in the real estate market when referring to the level
at which lease contracts are expected to be signed or are signed.
However, the effective rent is a more useful indicator of a rental
agreement's profitability.
In calculating our effective rent, we account for the costs
incurred over the lease's lifetime, which we deduct from the
headline (base) rent, thus allowing us to assess the profitability
of a rental agreement. To analyse the effective rent more
accurately in this period, we excluded ESG leases offered as
assistance to support Ukrainian refugee initiatives in Poland and
Romania.
Overall, in 2022, we successfully negotiated the take-up
(including expansions) or extension of 191.0k sqm of commercial
spaces in our portfolio (excluding ESG leases). The weighted
average effective rent for these new leases was EUR8.8/sqm/month
with a WALL of 4.4 years.
-- Industrial leases completed in the period accounted for 24.7%
of the total leasing activity, resulting in the lower average
headline and effective rent.
The difference between headline (base) and effective rents in
2022 was, on average, 26.1%, which is lower than for FY2021
(average of 29.2%) but reflects the fact that market conditions
continued to be challenging.
In total, new leases signed during the year will generate future
rental income of EUR128.9 million (including auxiliary spaces),
with leases from office properties accounting for 73.1% of future
rental income.
Weighted Average Effective Rent (EUR / sqm / m) - 2022
Poland Romania Group
---------------------------------- ------- -------- ------
Headline Commercial Rent 15.9 9.0 11.9
---------------------------------- ------- -------- ------
Less: Rent Free Concessions (2.3) (0.9) (1.5)
---------------------------------- ------- -------- ------
Less: Tenant Fitouts (2.2) (0.8) (1.3)
---------------------------------- ------- -------- ------
Less: Broker Fees (0.5) (0.1) (0.3)
---------------------------------- ------- -------- ------
Effective Commercial Rent 10.9 7.2 8.8
---------------------------------- ------- -------- ------
WALL (in years) 4.0 5.1 4.4
---------------------------------- ------- -------- ------
Collections Review
The ability to collect - cash in - contracted rents is a key
determinant for the success of a real estate company.
Our rate of collections of rents invoiced and due in 2022
remained high, at 99.3% (over 99% for FY2021). This is due to the
long-term partnerships we have established and maintained with
high-quality national and multinational tenants since the inception
of the Group, which have helped us minimise the impact on rent
collections in this period of higher economic uncertainty and
ensure sustainable cash flow generation.
Portfolio Valuation
In line with our practice of biannual valuations, we valued our
entire portfolio in Poland and Romania as of 30 June and 31
December 2022.
The valuations were performed by CBRE and Knight Frank for our
properties in Poland, with Colliers and Cushman and Wakefield
valuing our properties in Romania (more information is available
under note 4 of the audited annual consolidated financial
statements as of and for the period ended 31 December 2022).
Assigning the appraisal of our portfolio to four independent and
experienced service providers makes the process of determining the
value of our properties transparent and impartial. Through our
oversight, we ensure that a consistent methodology, reporting, and
timeframe are respected.
The main drivers in the growth of our portfolio since the
inception of the Group have been:
-- Acquisition or development of high-quality properties in Poland and Romania,
-- Active asset management of the properties, and
-- The performance of the real estate markets in which we operate.
Overall, our total combined portfolio value was EUR3.0 billion
at the end of 2019, and remained effectively unchanged in 2020 due
to the impact of the COVID-19 pandemic, increasing to EUR3.2
billion at 31 December 2021 due to additions.
In valuing our properties, key market indicators used by the
four independent appraisers, although they vary, consider factors
such as the commercial profile of the property, its location and
the country in which it is situated.
As at 31 December 2022, third-party appraisals were impacted by
higher inflation and interest rates, increased market volatility
and a more uncertain outlook. This has led to the application of
assumed (in several cases) yield expansion and higher discount
rates in determining the valuations. As such, the portfolio's
overall third-party appraised value on 31 December 2022 was
estimated at EUR3.2 billion, +0.2% higher compared to the end of
2021.
The completion of six high-quality industrial facilities in
Romania, the acquisition of a "small business units" facility and
the net positive impact from our developments (in progress or under
refurbishment) added EUR75.5 million in portfolio value, which was
offset by the like-for-like decrease (EUR35.6 million/1.3%) in the
appraised value of our standing commercial properties compared to
31 December 2021.
Combined Portfolio Value Evolution 31 Dec. 2022 (EURm)
Poland Romania Group
----------------------------------------- ------- ------- -------
Total Combined Portfolio Value at
31 Dec. 2021 1,612.8 1,539.5 3,152.3
----------------------------------------- ------- ------- -------
Less: Properties Held in Joint Venture
* - (86.7) (86.7)
----------------------------------------- ------- ------- -------
Total Investment Properties ** at
31 Dec. 2021 1,612.8 1,452.8 3,065.6
----------------------------------------- ------- ------- -------
Plus: Transactions - (6.5) (6.5)
----------------------------------------- ------- ------- -------
o/w New Acquisitions - 7.2 7.2
----------------------------------------- ------- ------- -------
o/w Disposals - (13.7) (13.7)
----------------------------------------- ------- ------- -------
Plus: Capital Expenditure 39.0 29.3 68.3
----------------------------------------- ------- ------- -------
o/w Developments 8.1 13.0 21.1
----------------------------------------- ------- ------- -------
o/w Standing Properties 30.9 16.3 47.2
----------------------------------------- ------- ------- -------
o/w Future Developments - - -
----------------------------------------- ------- ------- -------
Plus: Net Revaluations Adjustments (67.3) (20.5) (87.8)
----------------------------------------- ------- ------- -------
o/w Developments (11.7) 4.8 (6.9)
----------------------------------------- ------- ------- -------
o/w Standing Properties (55.6) (27.3) (82.9)
----------------------------------------- ------- ------- -------
o/w Lands, Future Developments &
Acquisitions - 2.0 2.0
----------------------------------------- ------- ------- -------
Total Investment Properties ** at
31 Dec. 2022 1,584.5 1,455.1 3,039.6
----------------------------------------- ------- ------- -------
Plus: Properties Held in Joint Venture
* - 119.3 119.3
----------------------------------------- ------- ------- -------
o/w Capital Expenditure & Acquisitions - 24.7 24.7
----------------------------------------- ------- ------- -------
o/w Net Revaluation Adjustments - 7.9 7.9
----------------------------------------- ------- ------- -------
Total Portfolio Value at 31 Dec.
2022 1,584.5 1,574.4 3,158.9
----------------------------------------- ------- ------- -------
* Properties held through joint ventures are shown at 100%;
Globalworth owns 50% stake in the respective joint ventures.
** Excludes adjustments made to investment properties, for sale
of real estate assets following the year end.
Note: Certain casting differences in subtotals/totals are due to
figures presented to 1 decimal place.
Financial Review
Resilient performance despite global challenges
"Our strong operational focus and business expansion partly
reflected in our annual results, as we navigate through challenging
market conditions.
Stamatis Sapkas
Chief Financial Officer
1. Introduction and Highlights
Our 2022 performance was resilient despite the global
challenges, as we continued implementing our "local landlord"
approach in managing our business.
To help explain our performance, we use a number of measures
typically observed in our sector. These include quoting several
measures on a consolidated basis (including our joint ventures), as
it best describes how we manage our portfolio and overall business,
like-for-like measures and measures prescribed by EPRA.
The measures defined by EPRA are designed to enhance
transparency and comparability across the European real estate
sector.
2. Revenues and Profitability
Our main source of revenue is rent that we receive from leasing
spaces available in our properties to our partners. We also receive
other income including that from service charges to cover the costs
of communal or shared spaces and services in our properties,
however this income is netted off against our total service charge
cost.
Revenues
EUR239.3m
9.1% on 2021
IFRS Earnings per Share(2)
(8) cents
21 cents in 2021
EPRA NRV(1,3)
EUR1,835.5m
(4.3)% on 31 Dec. 2021
Adjusted Normalised EBITDA(1,4)
EUR126.0m
(3.2)% on 2021
LTV(1,5)
42.7%
40.1% at 31 Dec. 2021
NOI(1)
EUR139.7m
(3.2)% on 2021
Combined Portfolio Value (OMV)(1)
EUR3.2bn
0.2% on 31 Dec. 2021
EPRA NRV per Share(1,3)
EUR8.29
(4.3)% on 31 Dec. 2021
EPRA Earnings per Share(1,2)
32 cents
18.5% on 2021
Dividends Paid in 2022 per Share
27 cents
(10.0)% on 2021
1. See Glossary (pages 152-154) for definitions.
2. See note 12 of the consolidated financial statements for calculation.
3. See note 23 of the consolidated financial statements for calculation.
4. See page 46 for further details.
5. See note 25 of the consolidated financial statements for calculation.
Total Revenue & Net Operating Income
2022 2021
Year ended 31 Dec. EUR'm EUR'm
-------------------------------- ------ ------
Contracted rent 180.9 176.4
Adjustment for lease incentives (31.1) (26.1)
Rental income 149.8 150.3
Service charge income 86.9 63.2
Other income 2.6 5.9
-------------------------------- ------ ------
Total Revenue 239.3 219.4
Operating Expenses (99.6) (75.1)
-------------------------------- ------ ------
Net Operating Income 139.7 144.3
-------------------------------- ------ ------
Globalworth generated total consolidated revenue of EUR239.3
million during 2022, up by 9.1% compared to EUR219.4 million
generated during 2021.
Gross rental income which accounts for the majority of our
revenue was EUR180.9 million, 2.6% higher compared to the year
prior. Decreasing however to EUR149.8 million when accounting for
costs associated of renting spaces in our portfolio, and which are
amortised during the life of the leases. As such our year-on-year
(net) rental income was marginally lower (0.3% lower) compared to
2021.
2022 2021
Year ended 31 Dec. EUR'm EUR'm
------------------------- ------ ------
Office 126.9 128.7
Mixed-Use 10.4 10.6
Industrial 11.1 9.5
Other 1.4 1.4
------------------------- ------ ------
Rental Income by Segment 149.8 150.3
------------------------- ------ ------
Like-for-like rental income on standing properties decreased by
2.8%, or EUR4.0 million, to EUR138.8 million in 2022. However,
rental income from standing properties owned in Romania by the
Group throughout 2021 and 2022 was higher by 2.7% at EUR68.1
million. In Poland, like-for-like rental income was lower by 7.6%
at EUR70.7 million; however, the majority of this decrease (EUR5.2
million or 6.8%) was associated with Warta Tower (one of the
properties held for sale) where TUIR Warta, the principal tenant in
the building, vacated its premises at the end of 2021 and the
building remaining only partially occupied in 2022. Excluding Warta
Tower, rental income on our remaining Polish properties was
marginally lower by EUR0.5 million or 0.8%.
Rental income received during the year from properties acquired
or delivered in 2021 and 2022 was EUR11.0 million. This income was
received from Globalworth Square, Supersam and Renoma (both under
refurbishment) and three industrial facilities which were added to
our portfolio in 2021 and had only partially contributed to the
year prior, and three other industrial facilities that were
acquired or delivered in 2022.
In 2022, we recorded a service charge income of EUR86.8 million,
37.6% higher compared to EUR63.1 million in 2021, due to the
inclusion of new properties in the portfolio and an increase in
service charge rate per square metre of 19.5% across our standing
portfolio. This income is mainly linked to ancillary expenses that
are typically reimbursed by tenants as the vast majority of our
leases are triple-net, and include utility costs (energy, heating,
water, electricity, insurance, etc.) and charges for services
provided to tenants (cleaning, security, etc.).
In addition, we received EUR2.6 million for other services
provided to tenants and partners which included fit-out services,
marketing fees and other.
Revenue Share per Country
Year ended 31 Dec. 2022 (EUR'm)
Poland Romania
----- ------ -------
2021 51.0% 49.0%
----- ------ -------
Revenue Share per Country
Year ended 31 Dec. 2021 (EUR'm)
Poland Romania
----- ------ -------
2021 52.6% 47.4%
----- ------ -------
Net Operating Income ("NOI"), for the 12 months of 2022 was
EUR139.7 million, after taking into account property and fit-out
costs, lower by 3.2% compared to 2021. Overall operating expenses
in our portfolio increased by EUR24.5 million to EUR99.6 million of
which 89.8% were re-invoiced to tenants. The portion of our
operating expenses not re-invoiced by tenants typically involved
spaces available to be leased.
Net Operating Income Build Up
Year ended 31 Dec. (EUR'm)
NOI - 2021 NOI Change - Poland NOI Change - Romania NOI - 2022
---------- ------------------- -------------------- ----------
144.3 (8.6) 4.0 139.7
---------- ------------------- -------------------- ----------
Net Operating Income Share per Country
Year ended 31 Dec. 2022 (EUR'm)
Poland Romania
----- ------ -------
2021 50.3% 49.7%
----- ------ -------
Net Operating Income Share per Country
Year ended 31 Dec. 2021 (EUR'm)
Poland Romania
----- ------ -------
2021 54.7% 45.3%
----- ------ -------
Adjusted Normalised EBITDA
We use Adjusted Normalised EBITDA as a key performance measure
to evaluate our recurring operational results. As such, we exclude
from the calculation non-operational and non-cash items including
revaluation or capital gains, exceptional income or costs and other
adjustments.
Our Adjusted Normalised EBITDA was EUR126.0 million (excluding
share of minority interests EBITDA was EUR125.9 million), lower by
3.2% compared to 2021 (EUR130.2 million), as a result of lower NOI
which was only partially offset by lower administrative and other
expenses.
Adjusted Normalised EBITDA
2022 2021
Year ended 31 Dec. EUR'm EUR'm
------------------------------------------- ------ ------
Profit before net financing cost 35.4 110.9
Plus: Fair value loss/(gain) on investment
property 89.5 5.7
Plus: Depreciation on other long-term
assets 0.7 0.5
Plus: Other expenses 2.0 2.4
Plus: Acquisition costs 0.0 -
Plus: Other income (0.5) (1.1)
Plus: Foreign exchange (gain)/loss (0.9) (0.2)
Plus: Loss/(Gain) from fair valuation
of financial instrument (0.2) 0.4
Plus: Non-recurring expenses - 11.5
------------------------------------------- ------ ------
Adjusted Normalised EBITDA 126.0 130.2
------------------------------------------- ------ ------
Share of minority interest (0.1) -
------------------------------------------- ------ ------
Adjusted Normalised EBITDA (excluding
minority share) 125.9 130.2
------------------------------------------- ------ ------
Property Valuation
Over the past 12 months, property values in our markets have
come under pressure, given the challenging macroeconomic and
geopolitical environment. Also, operating performance, expanding
yields, higher discount rates and capex invested in our portfolio,
which is fully reflected in valuations and operations, further
contributed to recording EUR89.5 million in negative revaluations
in our consolidated property portfolio on 31 December 2022.
Approximately 75.9% of the net fair value loss was in our office
and mixed-use properties in Poland, while in Romania EUR24.1
million (or 26.9%) of net fair value loss in our standing portfolio
was partially offset by 2.8% net fair gains in our industrial
properties.
Year ended 31 2022 2021
Dec. EUR'm EUR'm
------------------ ------ ------
Fair value (loss)
on investment
property (89.5) (5.7)
------------------ ------ ------
Finance Costs and Income
Our finance costs mainly include net interest on bonds, bank
loans and other financing sources such as a Revolving Credit
Facility. In 2022 our total finance cost was EUR52.5 million, lower
by EUR3.0 million compared to the prior year, a result of net lower
indebtedness following the repaying of the remaining GW 17/22 bond
in June, reducing the interest cost by EUR4.5 million, which was
partially offset by the increase in EURIBOR base rates particularly
in the second half of the year on existing and new financing
facilities.
In addition, finance income was EUR2.7 million, higher by EUR1.0
million compared to 2021. Higher interest received from shareholder
loans provided to finance our joint ventures and higher finance
income (by 170% or EUR0.5 million) as a result of higher/positive
interest rates collected on Euro, Romanian Leu (RON) and Polish
Zloty deposits and current accounts balances were partially offset
(EUR0.2 million) by changes in the fair value in financial
instruments during the year.
Overall, net finance costs were EUR49.8 million for the twelve
months of 2022, lower by 7.3% or EUR4.0 million compared to
2021.
Finance Cost &
Income
Year ended 31 2022 2021
Dec. EUR'm EUR'm
----------------- ------ ------
Finance Cost 52.5 55.5
Finance Income 2.7 1.7
----------------- ------ ------
Net Finance Cost 49.8 53.8
----------------- ------ ------
Share in Joint Venture
We hold interests in three joint ventures in Romania which
principally focus on developing and managing industrial parks. In
2022 the share of profit in our joint ventures was EUR3.2 million,
compared to EUR5.0 million in 2021, mainly due to the negative
impact of the properties' revaluation. We have to note, however,
that operating performance improved by EUR1.2 million, with losses
excluding revaluations recorded lower by EUR2.7 million, to EUR2.4
million for the year, as we continue to invest in the three joint
ventures and lease the available spaces in the facilities which are
in their lease-up phase.
IFRS and EPRA Earnings
To measure our profitability, we measure both IFRS and EPRA
Earnings. The latter, we consider as a more appropriate measure for
real estate companies as it excludes non-cash or non-recurring
items such as revaluation, capital gains, fair value adjustments
and related deferred tax impact of adjustments made to profit after
tax.
We recorded negative IFRS Earnings of EUR16.1 million (-8 cents
per share) for 2022, compared to positive earnings of EUR47.5
million (21 cents per share) in 2021. This decrease is mainly
attributed to the EUR89.5 million of revaluation losses recorded
for the period compared to revaluation losses of EUR5.7 million in
2021.
Adjusting for revaluation losses with related deferred tax and
the EUR11.5 million exceptional and non-recurring costs associated
with the offer for Globalworth shares initiated in May 2021, the
adjusted IFRS profit after tax for 2022 was marginally lower by
EUR2.2 million compared to 2021, at EUR72.9 million for the
year.
EPRA Earnings for 2022 were EUR71.6 million (or 32 cents per
share), up by 21.2% from the prior year due to improved operating
results, as lower operating performance was offset from lower cost
base, net finance costs and income tax expenses (excluding deferred
tax expense on investment property) compared to the same period in
2021.
IFRS Earnings Vs EPRA Earnings
Total Per Share
EUR'm cents
-------------------------------------------- ------ ---------
IFRS Earnings (17.0) (8)
FV loss on properties 89.5 40
Losses on disposal of investment properties 1.9
FV gain on financial instrument (0.2) 0
Deferred Tax (1.0) 0
JVs & Others (1.6) 0
-------------------------------------------- ------ ---------
EPRA Earnings 71.6 32
-------------------------------------------- ------ ---------
3. Assets
Note to 31 Dec. 31 Dec.
the financial 2022 2021
Assets statements EUR'm EUR'm
--------------------------------------- -------------- ------- -------
NCA - Investment property 3 2,945.5 2,966.1
CA - Investment property held for sale 126.0 130.5
--------------------------------------- -------------- ------- -------
Total Investment Property 3,071.5 3,096.6
NCA - Investments in joint ventures 27 68.0 48.9
Cash and cash equivalents 19 163.8 418.7
Other Assets 65.7 63.2
--------------------------------------- -------------- ------- -------
Total Assets 3,368.9 3,627.5
--------------------------------------- -------------- ------- -------
The two largest assets in our balance sheet are real
estate/investment property and cash and cash equivalents, which
account for over 96% of our total assets.
The balance sheet value of our investment property (freehold and
properties held for sale) was EUR3,071.5 million as of 31 December
2022, EUR25.1 million or 0.8% lower compared to year-end 2021. This
decrease was mainly due to the negative revaluations of real estate
properties (EUR89.5 million) and disposal of residential units
(EUR14.1 million), which offset the positive impacts mainly from
the acquisition of our first small business units project in the
north-west of Bucharest (EUR5.5 million), the purchase of land for
future development (EUR1.8 million), and investments made in
properties under development and other value accretive investments
on standing properties (EUR70.3 million).
IP Movement Freehold EUR'm
----------------------------- ------- ------- -------
Poland Romania Total
EUR'm EUR'm EUR'm
----------------------------- ------- ------- -------
OMV Dec 21 1,612.8 1,539.0 3,151.8
JV properties - 86.7 86.7
Investment property - Dec 21 1,612.8 1,452.3 3,065.1
CAPEX 38.97 29.29 68.256
Fair value loss (67.3) (21.6) (88.8)
Apartment Disposals - (14.1) (14.1)
Asset acquisition - 7.4 7.4
Investment Property - Dec 22 1,584.5 1,453.3 3,037.8
JV properties - Dec 22 - 119.0 119.0
OMV Dec 22 1,5845 1,572.3 3,156.8
----------------------------- ------- ------- -------
Cash and cash equivalents at the end of the year were EUR163.8
million (EUR418.7 million on 31 December 21), mainly as a result of
the repayment of the remaining EUR323.2 million of our inaugural
EUR550 million bond at the end of June and the distribution of
EUR59.8 million of dividend to shareholders during the year.
Our investment in joint ventures increased by EUR19.1 million,
reaching EUR68.0 million on 31 December 2022, due to an EUR8.4
million investment in a new/third joint venture company mainly to
finance the acquisition of new standing investment facility and
facilitate further development, and a EUR6.7 million further
investment in two other companies mainly to finance subsequent
phases in the Constanta Business Park and Chitila Logistic Hub
projects. In addition, for 2022 our share of profit in our joint
ventures was EUR3.2 million and we received EUR0.8 million of net
interest income.
Other assets mainly comprised trade and other receivables and
equity investments (where we have a right of first offer) and
accounted for 1.9% (EUR65.7 million) of our total assets as of 31
December 2022.
Total assets at the end of the period were EUR3,368.9 million,
lower by 7.1% compared to 31 December 2021 (EUR3,627.5
million).
4. Liabilities
Note to 31 Dec. 31 Dec.
the financial 2022 2021
Liabilities statements EUR'm EUR'm
NCL - Interest-bearing loans and borrowings 14 1,433.6 1,285.6
CL - Interest-bearing loans and borrowings 14 21.6 348.3
------------------------------------------------ -------------- ------- -------
Total Interest-bearing loans and borrowings 1,455.2 1,633.9
Deferred Tax Liabilities (including liabilities
associated with the assets held for sale) 11.1 159.9 156.3
Other Current Liabilities 69.5 72.4
Other Non-Current Liabilities 26.8 26.2
------------------------------------------------ -------------- ------- -------
Total Liabilities 1,711.5 1,888.9
------------------------------------------------ -------------- ------- -------
Total Liabilities for the Group were EUR1,711.5 million at
year-end 2022, EUR177.4 million lower compared to 31 December 2021.
This decrease is mainly due to Interest-bearing Loans and
Borrowings of the Group, which accounted for 85.0% of Total
Liabilities, and were lower by EUR178.7 million on 31 December
2022.
Deferred Tax Liabilities were EUR159.9 million on 31 December
2022, EUR3.6 million higher compared to the prior year, mainly due
to improved fiscal profits and the transition of certain
subsidiaries to a taxable profit position.
Other Current and Non-Current Liabilities accounted for 5.6% of
the Total Liabilities and included items such as tenant deposits,
lease liabilities, and other trade and other payables. During the
year, such amounts overall decreased by EUR2.3 million.
5. Interest-bearing Loans and Borrowings
Overview and Select Initiatives
The total consolidated debt for the Group at 31 December 2022
was EUR1,455.2 million (31 December 2021: EUR1,633.9 million)
comprising mainly of medium to long-term debt, denominated entirely
in Euro.
Our largest debt-related activity in 2022, involved the
repayment from our own cash resources of the remaining EUR323.2
million of our inaugural EUR550 million bond that was due to mature
in June 2022, thus resulting in Globalworth having no material debt
maturing until March 2025.
In addition, during 2022 we:
-- repaid the coupon on the 2022 bond and also the annual coupons of the 2025 and 2026 bonds,
-- entered into a six-year term loan agreement for EUR85 million with IFC,
-- drew down on part of the RCF available to us until April 2024,
-- entered into a 10-year term loan agreement for EUR110 million
with BCR/Erste Bank (both part of Erste Bank Group) for the
refinancing of the logistics portfolio, not drawn at end of year
2022. Out of this amount, the Group is entitled to EUR95 million
and the remainder will refinance one of our joint venture
companies, and
-- entered into a three-year term new RCF for EUR50 million with
Erste Bank, not drawn until end of year.
Interest-bearing Loans and Borrowings Profile
The total consolidated debt for the Group on 31 December 2022
was EUR1,455.2 million (31 December 2021: EUR1,633.9 million).
Most of the debt remained in unsecured facilities, which
accounted for 75.4% (31 December 2021: 77.9%) of the total debt
outstanding. Unsecured facilities included the two bonds maturing
in March 2025 and July 2026 accounting for EUR950.0 million, the
EUR85.0 million facility from the IFC, and EUR60.0 million from a
Revolving Credit Facility. The remainder debt (24.6%) is secured
with real estate mortgages, pledges on shares, receivables and loan
subordination agreements in favour of the financing parties.
The weighted average interest rate cost for the Group remained
low throughout the year, despite the higher inflationary and
interest rate environment, as 80.7% of our debt carries a fixed
interest rate charge and 4.1% of debt facilities are hedged through
interest rates caps, therefore the weighted average cost of debt on
31 December 2022 increased marginally by 16 basis points to 2.89%
compared to 2021 despite EURIBOR increasing by over 200 basis
points during the year.
The high level of fixed interest rate debt ensures natural
hedging to the Euro, the currency in which the most significant
part of our liquid assets (cash and cash equivalents and rental
receivables) is originally denominated and the currency for the
fair market value of our investment property. Based on the Group's
debt balances on 31 December 2022, an increase of 100 basis points
in the EURIBOR would result in a higher interest expense of EUR2.8
million per annum.
The average maturity period of our debt remained above 3.0 years
at 3.3 years (2021: 3.5 years), not including the 10-year term loan
facility from BCR/Erste Bank undrawn on December 2022.
-- All our debt facilities are Euro denominated.
-- Interest is based either on one month, three months or six
months EURIBOR plus a margin (19.3% of the outstanding balance
compared to 8.5% at 31 December 2021).
During 2022, we repaid EUR2.8 million in bank debt principal
amounts, the entire remaining balance of the 2022 Eurobond
(EUR323.1 million) and EUR45.7 million of accrued interest on the
Group's outstanding debt facilities, including EUR37.6 million in
relation to the full annual coupon for the Eurobonds of the
Company.
Debt Covenants
As of 31 December 2022, the Group was in compliance with all of
its debt covenants.
The Group's financial indebtedness is arranged with standard
terms and financial covenants, the most notable as at 31 December
2022 being the following:
Unsecured Eurobonds, Revolving Credit Facility and IFC loan
-- the Consolidated Coverage Ratio, with minimum value of 200%
(150% applicable for the Revolving Credit Facility and IFC
loan);
-- the Consolidated Leverage Ratio, with maximum value of 60%;
-- the Consolidated Secured Leverage Ratio with a maximum value of 30%; and
-- the Total Unencumbered Assets Ratio, with minimum value of
125% (additional covenant applicable for the Revolving Credit
Facility and IFC loan).
Secured Bank Loans
-- the debt service cover ratio ("DSCR")/interest cover ratio
("ICR"), with values ranging from 120% to 350% (be it either
historic or projected); and
-- the LTV ratio, with contractual values ranging from 60% to 83%.
There have been no breaches of the aforementioned covenants
occurring during the period ended 31 December 2022.
Weighted Average Interest Rate Versus Debt Duration to
Maturity
30 Jun 31 Dec 30 Jun 31 Dec 30 Jun 31 Dec
20 20 21 21 22 22
---------------------- ------ ------ ------ ------ ------ ------
Weighted average
interest rate 2.52% 2.73% 2.73% 2.73% 2.55% 2.89%
Weighted average
duration to maturity 4.2 4.5 4.0 3.5 3.8 3.3
---------------------- ------ ------ ------ ------ ------ ------
Maturity Profile (by year) of the Principal Loan Outstanding at
31 Dec. 2022 (EUR million)
2023 2024 2025 2026 2027 2028 2029
EUR'm EUR'm EUR'm EUR'm EUR'm EUR'm EUR'm
------ ---------- ----------- ----------- ---------- ---------- -----------
- 94,314,000 662,184,849 400,000,000 62,260,000 85,000,000 151,825,000
------ ---------- ----------- ----------- ---------- ---------- -----------
6. Liquidity & Loan-to-Value Ratio ("LTVî)
Managing our resources has been a key area of focus for the
Group, especially since the COVID-19 pandemic outbreak, and this
careful management has carried on throughout this period of higher
volatility.
As of 31 December 2022, the Group had cash and cash equivalents
of EUR163.8 million (31 December 2021: EUR418.7 million), of which
EUR7.8 million was restricted due to various conditions imposed by
the financing banks.
In addition, the Group at year-end 2022 had undrawn EUR95.0
million (plus EUR15.0 million undrawn to be allocated to joint
ventures) in secured committed debt facilities and a further EUR205
million in unsecured revolving credit facilities.
The Group's loan-to-value ratio on 31 December 2022 was 42.7%,
compared to 40.1% on 31 December 2021, mainly due to the impact of
negative revaluations in our standing properties, and capex
invested in our portfolio which was not fully reflected in
valuations and operations.
7. EPRA NRV
The EPRA Net Reinstatement Value ("NRV") is a measure used to
highlight the value of a company's net assets on a long-term basis,
on the assumption that the entities do not sell their assets.
EPRA NRV was EUR1,835.5 million as at 31 December 2022, lower by
4.3% compared to 31 December 2021 (EUR1,917.5 million). As a
result, EPRA NRV per share also decreased to EUR8.29 per share (31
December 2021: EUR8.66 per share).
The decrease in EPRA NRV over the 12 months of 2022 was largely
due to the negative revaluations of EUR89.5 million on our real
estate property portfolio and the EUR59.8 million of dividends paid
during the year to shareholders which offset the EUR12.5 million
positive effect in our EPRA Earnings (EUR71.6 million for the
year).
EPRA NRV per Share (EUR)
------------------------------ ------
EUR
------------------------------ ------
EPRA NRV Dec-21 8.66
Income statement
EPRA Earnings 0.32
FV loss on Property portfolio (0.40)
Non-EPRA Earnings 0.1
Changes in equity
Dividends (0.27)
JV and NCI adjustment (0.03)
EPRA NRV Dec-22 8.29
------------------------------ ------
8. Cash Flows
2022 2021
Year ended 31 Dec. EUR'm EUR'm
------------------------------------------- ------- -------
Operating Profit before Changes in Working
Capital 126.4 119.4
Changes in Working Capital (63.3) (54.1)
------------------------------------------- ------- -------
Cash Flows from Operating Activities 63.1 65.3
Cash Flows used in Investing Activities (73.8) (101.4)
Cash Flows used in Financing Activities (243.9) (72.8)
------------------------------------------- ------- -------
Net Increase in Cash and Cash Equivalents (254.6) (108.9)
------------------------------------------- ------- -------
Cash and Cash Equivalents at Year End 163.8 418.7
------------------------------------------- ------- -------
Cash flows from operating activities before working capital
changes during 2022 was EUR126.4 million, higher by EUR7.0 million
or 5.8% compared to 2021. Lower administrative expenses, also
associated with the exceptional and non-recurring expenses incurred
in 2021, and lower finance interest cost due to lower net lower
indebtedness of the Group, which offset the lower net operating
income.
Overall, cash inflow from operations for the 12 months of 2022
was EUR63.1 million, lower by 3.4% (or EUR2.2 million compared to
2021 as a result of higher interest and taxes paid by EUR1.2
million and negative changes in working capital by of EUR1.0m.
During the year, cash used in investments was EUR73.8 million,
EUR27.6 million lower compared to EUR101.4 million in 2021. Despite
a decrease in new acquisitions by EUR12.4 million compared to 2021,
investment in 100% owned properties (standing and developments)
reached EUR71.2 million (EUR2.4 million higher compared to 2021).
Proceeds from sales, mainly from non-core residential units and
ROFO assets, were EUR13.8 million higher compared to 2021, reaching
EUR16.9 million for 2022.
Cash used in financing was EUR243.9 million in 2022 (EUR171.1
million higher compared to 2021), mainly associated with the
repayment of EUR323.2 million for the 17/22 bond, the drawdown of
EUR146.8 million from IFC and RCF facilities in the second half of
the year and reduction of dividend distribution by EUR6.5 million
to EUR59.8 million in 2022.
9. Dividends
2022 2021
Year ended 31 Dec. EUR'm EUR'm
--------------------------------- ------ ------
Dividends Paid - EUR m 59.8 66.3
--------------------------------- ------ ------
Dividends Paid per Share - Cents 27 30
--------------------------------- ------ ------
Globalworth distributes bi-annually at least 90% of its EPRA
Earnings to its shareholders. As a result, in March 2022, it paid
an interim dividend of 13 cents per share (EUR28.8 million) in
respect of the six-month period ended 31 December 2021. In
addition, in September 2022, it paid the first interim dividend in
respect of the six-month period ended 30 June 2022 of 14 cents per
share (EUR31.0 million).
In total in 2022 the Group paid EUR59.8 million or 27 cents per
share in dividends.
The results for the period are set out in the consolidated
statement of comprehensive income on page 84.
EPRA Performance Measures Snapshot
Our performance under the EPRA guidelines
The European Public Real Estate Association ("EPRA"), is a
widely recognised market standard guidance and benchmark provider
for the European real estate industry.
The following performance indicators have been prepared in
accordance with best practices as defined by EPRA in its Best
Practices Recommendations guide, available on EPRA's website
(www.epra.com).
Figures in EUR million,
unless otherwise
indicated 2022 2021 Definition Purpose pgs
------------------------ -------- -------- ---------------------------------- ------------------------------- ---
Metric making adjustments
to the NAV per the IFRS
financial statements to
provide stakeholders with
the most relevant information
on the fair value of the
assets and liabilities
of a real estate investment
company, assuming that
entities never sell assets
and aims to represent
EPRA Net Reinstatement the value required to
EPRA NRV 1,835.50 1,917.46 Value. rebuild the entity. 50
------------------------ -------- -------- ---------------------------------- ------------------------------- ---
EPRA NRV per share EPRA Net Reinstatement
(EUR) 8.29 8.66 Value per share. 50
------------------------ -------- -------- ---------------------------------- ------------------------------- ---
Metric measuring a company's
underlying operating results
and an indication of the
extent to which current
Earnings from operational dividend payments are
EPRA Earnings 71.6 59.10 activities. supported by earnings. 47
------------------------ -------- -------- ---------------------------------- ------------------------------- ---
EPRA Earning per Earnings from operational
share (EUR) 0.32 0.27 activities per share. 47
------------------------ -------- -------- ---------------------------------- ------------------------------- ---
Annualised rental income
based on the cash rents
passing at the balance
sheet date, less non-recoverable
property operating expenses,
divided by the market
value of the property,
EPRA Net Initial increased with (estimated) A comparable measure for
Yield ("NIY") (%) 5.2% 5.0% purchasers' costs. portfolio valuations. 149
------------------------ -------- -------- ---------------------------------- ------------------------------- ---
This measure incorporates
an adjustment to the EPRA
NIY in respect of the
expiration of rent-free
periods (or other unexpired
lease incentives such
EPRA Topped-up NIY as discounted rent periods A comparable measure for
(%) 5.8% 5.7% and step rents). portfolio valuations. 149
------------------------ -------- -------- ---------------------------------- ------------------------------- ---
Estimated Market Rental A 'pure' (%) measure of
Value (ERV) of vacant investment property space
space divided by ERV of that is vacant, based
EPRA Vacancy (%) 14.0% 13.0% the whole portfolio. on ERV. 149
------------------------ -------- -------- ---------------------------------- ------------------------------- ---
Financial statements
Consolidated statement of comprehensive income
For the year ended 31 December 2022
31 December 31 December
2022 2021
Note EUR'000 EUR'000
------------------------------------------- ---- ----------- -----------
Revenue 7 239,251 219,350
Operating expenses 8 (99,571) (75,098)
------------------------------------------- ---- ----------- -----------
Net operating income 139,680 144,252
------------------------------------------- ---- ----------- -----------
Administrative expenses 9 (13,712) (25,622)
Acquisition costs (7) -
Fair value loss on investment
property 3.4 (89,471) (5,738)
Share-based payment expense 24 - (532)
Depreciation and amortisation
expense (673) (536)
Other expenses (2,013) (1,851)
Other income 524 1,051
Foreign exchange gain 851 214
Loss from fair value of financial
instruments at fair value through
profit or loss 16 222 (386)
------------------------------------------- ---- ----------- -----------
Profit before net financing cost 35,401 110,852
------------------------------------------- ---- ----------- -----------
Finance cost 10 (52,532) (55,539)
Finance income 2,694 1,749
------------------------------------------- ---- ----------- -----------
Share of profit of equity-accounted
investments in joint ventures 27 3,219 5,010
------------------------------------------- ---- ----------- -----------
Loss/profit before tax (11,218) 62,072
------------------------------------------- ---- ----------- -----------
Income tax expense 11 (4,886) (14,583)
------------------------------------------- ---- ----------- -----------
Loss/profit for the year (16,104) 47,489
------------------------------------------- ---- ----------- -----------
Items that will not be reclassified
to profit or loss
------------------------------------------- ---- ----------- -----------
Loss on equity instruments designated
at fair value through other comprehensive
income (5,391) -
------------------------------------------- ---- ----------- -----------
Total comprehensive income for
the year (21,495) 47,489
------------------------------------------- ---- ----------- -----------
31 December 31 December
2022 2021
Note EUR'000 EUR'000
(Loss)/profit attributable to: (16,104) 47,489
- ordinary equity holders of the
Company (16,961) 47,489
---------------------------------------- ---- ----------- -----------
- non-controlling interests 857 -
---------------------------------------- ---- ----------- -----------
Total comprehensive income attributable
to: (21,495) 47,489
---------------------------------------- ---- ----------- -----------
- ordinary equity holders of the
Company (22,352) 47,489
---------------------------------------- ---- ----------- -----------
- non-controlling interests 857 -
---------------------------------------- ---- ----------- -----------
Earnings per share (EUR cents)
---------------------------------------- ---- ----------- -----------
- Basic 12 (8) 21
- Diluted 12 (8) 21
---------------------------------------- ---- ----------- -----------
Financial statements
Consolidated statement of financial position
As at 31 December 2022
2022 2021
Note EUR'000 EUR'000
--------------------------------- ---- --------- ---------
ASSETS
Investment property 3 2,945,460 2,966,080
Goodwill 12,349 12,349
Advances for investment property 5 4,393 3,436
Investments in joint ventures 27 67,967 48,908
Equity investments 7,521 12,109
Other long-term assets 1,784 2,083
Prepayments 226 338
Deferred tax asset 11.1 161 151
--------------------------------- ---- --------- ---------
Non-current assets 3,039,861 3,045,454
--------------------------------- ---- --------- ---------
Financial assets at fair value
through profit or loss 16 3,554 7,324
Trade and other receivables 18 22,337 16,208
Contract assets 13 9,967 6,106
Guarantees retained by tenants 98 885
Income tax receivable 840 117
Prepayments 2,430 2,104
Cash and cash equivalents 19 163,767 418,748
--------------------------------- ---- --------- ---------
202,993 451,492
--------------------------------- ---- --------- ---------
Investment property held for
sale 3.3 126,009 130,537
--------------------------------- ---- --------- ---------
Total current assets 329,002 582,029
--------------------------------- ---- --------- ---------
Total assets 3,368,863 3,627,483
--------------------------------- ---- --------- ---------
2022 2021
Note EUR'000 EUR'000
EQUITY AND LIABILITIES
Issued share capital 21 1,704,476 1,704,476
Treasury shares 24.5 (4,859) (4,917)
Fair value reserve of financial assets
at FVOCI (5,469) -
Share-based payment reserve 24 156 156
Retained earnings (37,798) 38,914
--------------------------------------- -------- --------- ---------
Equity attributable to ordinary equity
holders of the Company 1,656,506 1,738,629
--------------------------------------- -------- --------- ---------
Non-controlling interests 862 -
--------------------------------------- -------- --------- ---------
Total equity 1,657,368 1,738,629
--------------------------------------- -------- --------- ---------
Interest-bearing loans and borrowings 14 1,433,631 1,285,641
Deferred tax liability 11.1 154,866 150,713
Lease liabilities 3.2 19,861 18,762
Guarantees retained from contractors 1,995 2,661
Deposits from tenants 3,897 3,844
Trade and other payables 1,034 956
--------------------------------------- -------- --------- ---------
Non-current liabilities 1,615,284 1,462,577
--------------------------------------- -------- --------- ---------
Interest-bearing loans and borrowings 14 21,600 348,279
Guarantees retained from contractors 3,652 3,361
Trade and other payables 35,679 39,788
Contract liability 13 1,743 1,940
Other current financial liabilities 67 261
Current portion of lease liabilities 3.2 1,669 1,303
Deposits from tenants 17,477 16,068
Income tax payable 382 550
--------------------------------------- -------- --------- ---------
82,269 411,550
--------------------------------------- -------- --------- ---------
Liabilities directly associated with
the assets held for sale 3.2, 3.3 13,942 14,727
--------------------------------------- -------- --------- ---------
Total current liabilities 96,211 426,277
--------------------------------------- -------- --------- ---------
Total equity and liabilities 3,368,863 3,627,483
--------------------------------------- -------- --------- ---------
The financial statements were approved by the Board of Directors
on 23 March 2023 and were signed on its behalf by:
Andreas Tautscher
Director
Financial statements
Consolidated statement of cash flows
For the year ended 31 December 2022
2022 2021
Note EUR'000 EUR'000
--------------------------------------- ---- -------- --------
Profit/(loss) before tax (11,218) 62,072
Adjustments to reconcile profit/(loss)
before tax to cash flows from
operating activities
Fair value loss on investment
property 3.4 89,471 5,738
Loss on sale of investment property 1,851 471
Share-based payment expense 24 - 532
Depreciation and amortisation
expense 673 536
Net increase in allowance for
expected credit losses 20.2 44 1,134
Foreign exchange (gain)/loss (851) (214)
Loss from fair valuation of financial
instrument at fair value through
profit or loss 16 (222) 386
Share of (profit) of equity-accounted
joint ventures 27 (3,219) (5,010)
Finance income (2,694) (1,749)
Financing cost 10 52,532 55,539
--------------------------------------- ---- -------- --------
Operating profit before changes
in working capital 126,367 119,435
(Increase) in contract assets,
trade and other receivables (10,547) (4,513)
(Decrease) in contract liabilities,
trade and other payables (6,435) (3,872)
Interest paid (45,662) (44,641)
Interest received 723 267
Income tax paid (2,168) (1,949)
Interest received from joint ventures 797 536
--------------------------------------- ---- -------- --------
Cash flows from operating activities 63,075 65,263
--------------------------------------- ---- -------- --------
2022 2021
Note EUR'000 EUR'000
---------------------------------------------- ---- --------- ---------
Investing activities
Expenditure on investment property completed
and under development or refurbishment (71,235) (68,846)
Payment for land acquisitions (1,732) -
Advances for investment property 4,100 -
Proceeds from sale of land 502 -
Payment for acquisition of investment
property (5,584) (18,011)
Proceeds from sale of investment property 12,411 3,010
Investment in financial assets at fair
value through profit or loss 16 (38) (143)
Proceeds from sale of financial assets
through profit and loss 4,030 85
Payments for investment in equity investments 17 (803) (1,740)
Investment in and loans given to joint
ventures 27 (28,510) (23,354)
Repayment of loan from joint ventures 27 13,429 8,111
Payment for purchase of other long-term
assets (371) (468)
---------------------------------------------- ---- --------- ---------
Cash flows used in investing activities (73,801) (101,356)
---------------------------------------------- ---- --------- ---------
Financing activities
Proceeds from issuance of share capital 24.1 - 100
Proceeds for issuance of new shares
in subsidiary
from non-controlling interest 5 -
Proceeds from interest-bearing loans
and borrowings 14 146,825 -
Repayment of interest-bearing loans
and borrowings 14 (325,963) (2,796)
Payment of interim dividend to equity
holders of the Company 22 (59,771) (66,286)
Payment for lease liability obligations 3.2 (2,289) (1,659)
Payment of bank loan arrangement fees
and other financing costs 15 (2,725) (2,168)
---------------------------------------------- ---- --------- ---------
Cash flows used in financing activities (243,918) (72,809)
---------------------------------------------- ---- --------- ---------
Net (decrease) in cash and cash equivalents (254,644) (108,902)
Effect of exchange rate fluctuations
on cash and bank deposits held (337) (151)
Cash and cash equivalents at the beginning
of the year 19 418,748 527,801
---------------------------------------------- ---- --------- ---------
Cash and cash equivalents at the end
of the year 19 163,767 418,748
---------------------------------------------- ---- --------- ---------
Financial statements
Consolidated statement of changes in equity
For the year ended 31 December 2022
Fair
value
reserve
of
Issued Share-based financial
share Treasury payment assets Retained Non-controlling Total
capital shares reserve at FVOCI earnings Total interests Equity
Note EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
-------------- ---- --------- -------- ----------- --------- --------- ------------ --------------- ---------
As at 1
January 2021 1,704,374 (12,977) 6184 - 57,783 1,755,364 - 1,755,364
-------------- ---- --------- -------- ----------- --------- --------- ------------ --------------- ---------
Shares issued
to the
Executive
Directors
and other
senior
management
employees - 339 (339) - - - - -
Interim
dividends - 72 - - (66,358) (66,286) - (66,286)
Share-based
payment
expense under
the
subsidiaries'
employees
share award
plan - - 532 - - 532 - 532
Shares vested
under the
subsidiaries'
employees
share award
plan - 1,253 (1,253) - - - -
Shares issued
for cash
under
Executive
share option
plan 102 - (2) - - 100 - 100
Cash-based
portion of
deferred
annual
bonus plan
converted to
deferred
shares
settlement - - (79) - - (79) - (79)
Shares issued
for long-term
plan
termination
and employees
incentive
plan - 1,476 33 - - 1,509 - 1,509
Shares vested
under the
deferred
annual
bonus
incentive
plan - 4,920 (4,920) - - - - -
Total
comprehensive
income for
the year - - - - 47,489 47,489 - 47,489
-------------- ---- --------- -------- ----------- --------- --------- ------------ --------------- ---------
As at 31
December 2021 1,704,476 (4,917) 156 - 38,914 1,738,629 - 1,738,629
-------------- ---- --------- -------- ----------- --------- --------- ------------ --------------- ---------
Interim
dividends 22 - 58 - - (59,829) (59,771) - (59,771)
Shares issued
in a newly
acquired
subsidiary - - - - - - 5 5
Settlement of
fair value
reserve of
equity
instruments
designated at
FVOCI in cash 17 - - - (78) 78 - - -
Total
comprehensive
income for
the year - - - (5,391) (16,961) (22,352) 857 (21,495)
-------------- ---- --------- -------- ----------- --------- --------- ------------ --------------- ---------
As at 31
December 2022 1,704,476 (4,859) 156 (5,469) (37,798) 1,656,506 862 1,657,368
-------------- ---- --------- -------- ----------- --------- --------- ------------ --------------- ---------
, the news service of the London Stock Exchange. RNS is approved by
the Financial Conduct Authority to act as a Primary Information
Provider in the United Kingdom. Terms and conditions relating to
the use and distribution of this information may apply. For further
information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR JIMFTMTTTMAJ
(END) Dow Jones Newswires
March 24, 2023 03:00 ET (07:00 GMT)
Globalworth Real Estate ... (LSE:GWI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Globalworth Real Estate ... (LSE:GWI)
Historical Stock Chart
From Jul 2023 to Jul 2024