THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION
FOR IMMEDIATE RELEASE
30 August 2024
Globalworth Real Estate Investments
Limited
("Globalworth" or the
"Company")
Notice of Interim Results
& Preliminary Interim Financial Information
Globalworth plans to publish its Interim Report
and Financial Statements for the six months ending 30 June 2024
during the week commencing 23 September 2024. In advance, we are
releasing unaudited preliminary financials.
Key
Highlights for the period ended 30 June 2024
·
Portfolio
Value: The total combined portfolio value
dropped by 8.3% to €2.7 billion, primarily due to the disposal of
non-core assets (which led to a decrease of 7.6% of Combined
Portfolio Value) and small negative revaluation
adjustments.
·
Commercial
Properties: Like-for-like appraised value of
standing commercial properties slightly decreased to €2.5 billion,
down 0.8% from 31 December 2023.
·
Divestments:
Several sales of non-core assets were completed with the
objective to reduce debt and boost liquidity:
- In Q1, we
sold Bliski Centrum in Warsaw, a 4.9k sqm office property, which we
deemed a non-core asset due to its smaller size.
- In May, we
sold our fully owned Romanian logistics portfolio to CTP for net
proceeds of €72.4 million (after standard adjustments).
- Post-June,
we sold our remaining Romanian logistics interests, held through
joint ventures, to WDP, for net proceeds of €56.0 million (after
standard adjustments).
·
Portfolio
Footprint: Net reduction of 239.5k sqm,
bringing our standing-portfolio footprint down to 1.1 million sqm
across 59 properties.
·
Leasing:
90.1k sqm of commercial space leased or extended, with an
average WALL of 4.8 years, despite tough market
conditions.
·
Occupancy:
The average occupancy of our combined commercial portfolio
dropped to 86.1%, down 2.1pps from year-end 2023, impacted
by:
- The sale of
non-core assets having average occupancy higher than portfolio
average.
- The
addition of newly refurbished property of Supersam (Katowice,
Poland).
- A
like-for-like occupancy decrease by 0.5pps, mainly due to excess
supply in Regional Polish submarkets.
·
Contracted
Rent: Annualised contracted rent fell by 4.4%
to €192.3 million, driven by asset disposals.
- 95.0% of
the rent comes from office and mixed-use properties.
- 95.3% of
contracted rent is active, with the remainder to
commence
·
Rent
Increases: Like-for-like annualised commercial
rents in our standing portfolio rose by 3.1% to €182.6 million by
the end of H1-2024.
·
Credit
Ratings: In July 2024, Fitch reaffirmed
Globalworth's investment grade rating and upgraded the outlook to
stable. S&P maintained our BB+ rating with a negative outlook
throughout H1-2024.
·
Debt
Management: Net debt was reduced by €354.9
million, funded by the Company's cash reserves:
- In April
2024, we successfully refinanced €450 million 2025 Notes and €400
million 2026 Notes with new 6.25% Notes due in 2029 (€307 million)
and 2030 (€333 million) via an Exchange Offer and Consent
Solicitation.
- As part of
the exchange, we repaid €143 million of 2025 Notes and €67 million
of 2026 Notes in cash.
- Following
the sale of our fully owned Romanian industrial portfolio to CTP,
€97.5 million secured loans and €65 million loan notes (€45 million
from 2029 Notes and €20 million from 2030 Notes) were
repaid.
- The Company
drew down €25.5 million of asset-secured financing on our Romanian
portfolio.
·
Operating
Income: Net Operating Income decreased by 1.8%
year-on-year to €72.4 million.
-
Like-for-like net operating income, excluding disposals, fell
by 2.0% to €67.5 million, reflecting lower occupancy in our
Regional Polish submarkets.
·
Finance Costs:
Increased by €20.4 million year-on-year, including €12.8
million in non-recurring costs related to the refinancing of the
2025 and 2026 Notes in April 2024.
·
Earnings:
EPRA earnings dropped by €4.4 million to €29.8 million
(H1-2023: €34.2 million), impacted mainly by asset disposals and
higher finance costs.
·
EBITDA:
Adjusted normalised EBITDA decreased by 3.6% to €63.6 million
(H1-2023: €66.0 million).
·
Equity:
Loss attributable to equity holders rose to €65.3 million
(H1-2023: loss of €25.1 million), driven by:
- A fair
value loss of €50.5 million on investment property.
- A €24.1
million loss from subsidiary sales and a €13.2 million share of
loss from joint venture investments.
- In 2023, we
recorded a one-off finance gain of €15.8 million from bond buybacks
at a discounted price.
·
Dividends:
Scrip Dividend Shares covering 98.65% of total share capital
were issued in April 2024, with an interim cash dividend of €0.4m
(€0.11 per share) paid to the remaining shareholders in
H1-2024.
·
Valuation:
Preliminary EPRA Net Reinstatement Value (NRV) stands at €1.7
billion (€6.24 per share), a 10% decrease per share from €6.94 as
of 31 December 2023. This reduction is due to revaluation losses on
the property portfolio, losses from joint venture investments, and
the dilutive impact of €0.18 from the 13.9 million new scrip
dividend shares issued in H1-2024.
·
Earnings per
Share: IFRS Earnings per share was -25 cents in
H1-2024 (H1-2023: -11 cents).
·
Liquidity:
We maintained a strong cash balance of €210.3 million as of
30 June 2024 after net debt reduction of €354.9 million which was
partly funded from the existing cash resources of €396.3 million at
31 December 2023 and further disposal proceeds during
H1-24.
·
LTV:
Improved to 39.9% as of 30 June 2024 (from 42.2% on 31
December 2023) following divestments aimed at deleveraging and
enhancing liquidity.
·
Sustainability:
- €2.2
billion invested in 47 green certified properties within our
portfolio.
- 14
properties certified or recertified with BREEAM Very Good or higher
in the first six months of the year.
- Issued the
Group's sixth sustainable development report.
- Maintained
our "low-risk" rating by Sustainalytics at 11.1 and "A" rating by
MSCI.
For further information visit
www.globalworth.com
or contact:
Enquiries
|
Rashid Mukhtar
Group CFO
|
Tel: +40 732 800 000
|
|
Panmure Liberum (Nominated Adviser and
Broker)
Atholl Tweedie
|
Tel: +44 20 7886 2500
|
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 250
professionals across Cyprus, Guernsey, Poland and Romania the
combined value of its portfolio is €2.7 billion, as at 30 June
2024. Approximately 97.3% of the portfolio is in income-producing
assets, predominately in the office sector, and leased to a
diversified array of over 650 national and multinational
corporates. In Poland Globalworth is present in Warsaw, Wroclaw,
Lodz, Krakow, Gdansk and Katowice, while in Romania its assets span
Bucharest, Constanta, Targu Mures and Craiova.
IMPORTANT NOTICE: This announcement has been
prepared for the purposes of complying with the applicable laws and
regulations of the United Kingdom and the information disclosed may
not be the same as that which would have been disclosed if this
announcement had been prepared in accordance with the laws and
regulations of any jurisdiction outside of the United Kingdom. This
announcement may include statements that are, or may be deemed to
be, "forward-looking statements". These forward-looking statements
may be identified by the use of forward-looking terminology,
including the terms "targets", "believes", "estimates", "plans",
"projects", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or
comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These
forward-looking statements include all matters that are not
historical facts and involve predictions. Forward-looking
statements may and often do differ materially from actual results.
Any forward-looking statements reflect the Company's current view
with respect to future events and are subject to risks relating to
future events and other risks, uncertainties and assumptions
relating to the Company's business, results of operations,
financial position, liquidity, prospects, growth or strategies and
the industry in which it operates. Forward-looking statements speak
only as of the date they are made and cannot be relied upon as a
guide to future performance. Save as required by law or regulation,
the Company disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
in this announcement that may occur due to any change in its
expectations or to reflect events or circumstances after the date
of this announcement.