Globe Trade Centre S.a. · GPW:GTC
Globe Trade Centre — Q1 2020 Earnings Presentation
31 slides from Globe Trade Centre's earnings presentation, Jul 29, 2020
Slide 1: Q1 2020 Results Investors Presentation
Q1 2020 RESULTS INVESTORS PRESENTATION 29 JULY 2020 1
Slide 2: Contents
CONTENTS KEY HIGHLIGHTS Q1 2020 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 2 | Q1 2020 RESULTS |
Slide 3: GTC presents a strong balance sheet
GTC PRESENTS A STRONG BALANCE SHEET Annual in-place rent went up 11% to €145.4m (€130.6m in Q1 2019) Gross margin from rental activity up by 1% to €30m Occupancy kept high at 95% FFO I increased 3% to €18.3m, FFO per share at €0.04 Operating profit: profit before tax and fair value adjustm
Slide 4: Offices: completions and successful lease up
OFFICES: COMPLETIONS AND SUCCESSFUL LEASE UP 17,900 sq m of lettings and renewals (32,700 sq m in Q1 2019) − Occupancy at 95% (from 95% as of 31 December 2019) 5,400 sq m of high quality space completed in Q1 2020 − Green Heart (N3), Belgrade 57,500 sq m of high quality office space under cons
Slide 5: Retail: post COVID effects
RETAIL: POST COVID EFFECTS FOOTFALL (2020 vs 2019) TURNOVER (2020 vs 2019) June week_28 Mall of Sofia Mall of Sofia May week_27 week_26 April Ada Mall Ada Mall Avenue Mall Avenue Mall Galeria Galeria Pólnocna Pólnocna Galeria Galeria Jurajska Jurajska 0% 20% 40% 60% 80% 100% 0% 50% 100% 150% 200% MU
Slide 6: Contents
CONTENTS KEY HIGHLIGHTS Q1 2020 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 6 | Q1 2020 RESULTS |
Slide 7: Leading commercial real estate platform
LEADING COMMERCIAL REAL ESTATE PLATFORM Income generating assets of €2,002m and projects under construction of €84m 31 Dec 2019 31 March 2020 INCOME GENERATING ASSETS 90% Functional split Functional split Regional split Belgrade Budapest €392m Sofia €248m 20% Zagreb €146m Office Office €130m 12% 7%
Slide 8: Office portfolio overview
OFFICE PORTFOLIO OVERVIEW Sustainable high occupancy of prime office buildings provides solid recurring income As of 31 March 2020 OFFICE ASSETS OVERVIEW BUILDING AGE by GAV 0-10 years 39% 11-20 years €1,175m 61% €1,175m €93m 41 530,000 GAV annualized buildings sq m GLA in-place rent GREEN CERTIFICA
Slide 9: Retail portfolio overview
RETAIL PORTFOLIO OVERVIEW Landmark shopping centers in local markets As of 31 March 2020 RETAIL ASSETS OVERVIEW BUILDING AGE by GAV 0-10 years 50% €827m 11-20 years 50% €827m €52m 5 216,000 GAV annualized buildings sq m GLA in-place rent GREEN CERTIFICATION OCCUPANCY RATE LOCATION 13% by GAV 95% 94%
Slide 10: Contents
CONTENTS KEY HIGHLIGHTS Q1 2020 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 10 | Q1 2020 RESULTS |
Slide 11: Unique development pipeline
UNIQUE DEVELOPMENT PIPELINE Unlocking significant embedded value through development projects As of 31 March 2020 TOTAL EXPECTED REVALUATION EXPECTED INVESTMENT INVESTMENT IN-PLACE GAIN BOOK DEVELOPMENT TOTAL GLA COST (1) COST(1) RENT RECOGNIZED VALUE YIELD EXPECTED CITY (ths. sq m) (€m) (€m) (€m) (
Slide 12: Developing Class A offices
DEVELOPING CLASS A OFFICES 57,500 sq m under construction to be completed in 2020 and 2021 Advance Business Center II Matrix B Pillar Sofia, Bulgaria Zagreb, Croatia Budapest, Hungary PROJECT DETAILS PROJECT DETAILS PROJECT DETAILS 17,800 sq m new office space 10,700 sq m new office space 29,0
Slide 13: Contents
CONTENTS KEY HIGHLIGHTS Q1 2020 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 13 | Q1 2020 RESULTS |
Slide 14: Balance sheet
BALANCE SHEET (€m) 31 March 2020 31 Dec 2019 COMMENTS Investment property (excl. right of use) 1 2,212 2,203 1 An increase comes mainly from an Residential landbank (excl. right of use) 12 12 investment (€15.5m) mostly into assets under construction and Right of use 45 46 planned assets: Green Heart
Slide 15: Income statement
INCOME STATEMENT Profit before tax and fair value adjustments of €13m (€m) Q1 2020 Q1 2019 COMMENTS Revenue from rental activity 1 41 39 An increase in rental and service Cost of rental operations (11) (10) 1 revenue mainly due to Gross margin from operations 30 30 completion of Green Heart, Ada Mal
Slide 16: Strength of debt metrics
STRENGHT OF DEBT METRICS Conservative financing structure As of 31 March 2020 BALANCED DEBT SPLIT INTEREST RATE SPLIT Other Unsecured currencies debt 2% 11% Floating 6% Fixed/hedged Secured 94% debt 89% EUR 98% * Other currencies include PLN & HUF DEBT MATURITY LOANS UNDER BREACH OF COVENANTS €m €18
Slide 17: Strength of debt metrics
STRENGHT OF DEBT METRICS WAIR down to historic low of 2.6% p.a. As of 31 March 2020 (€m) 31 March 2020 31 December 2019 Net loan to value ratio 44% 44% Weighted average interest rate 2.6% 2.6% Interest cover 4.1x 4.2x Weighted average debt maturity (years) 4.2 4.0 LTV AVERAGE INTEREST RATE 54% 4.3%
Slide 18: Cash flow statement
CASH FLOW STATEMENT COMMENTS (€m) Q1 2020 Q1 2019 Operating activities Operating cash before working capital changes 27 26 1 Composed of expenditure on Add / deduct: investment properties Change in working capital (3) - (Green Heart, GTC X, ABC, Matrix and Pillar) Interest paid, net (7) (8) Tax (1)
Slide 19: Contents
CONTENTS KEY HIGHLIGHTS Q1 2020 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 19 | Q1 2020 RESULTS |
Slide 20: Additional materials
ADDITIONAL MATERIALS 20 | 2019 RESULTS |
Slide 21: Key shareholder information
KEY SHAREHOLDER INFORMATION BASIC SHARE INFORMATION (as of 31 March 2020) SHAREHOLDER STRUCTURE Symbol GTC S.A. Free Float 20.74% Share price PLN 6.36 ISIN PLGTC0000037 Aviva OFE GTC Dutch Performance 12M -29% Aviva Holdings B.V. Santander 61.49% Primary exchange Warsaw Stock Exchange 7.77% Market c
Slide 22: Funds from operations (FFO I)
FUNDS FROM OPERATIONS (FFO I) Robust acquisitions and developments drive FFO I As of 31 March 2020 FFO I €m 70 FFO I per share of €0.04 61 Robust operational performance 47 42 38 Significant development pipeline to further boost FFO I 28 17.7 18.3 Solid basis for sustainable and long term di
Slide 23: Debt and LTV
DEBT AND LTV (€m) 31 MARCH 2020 31 DECEMBER 2019 Loans and bonds 1,226 1,206 Loans from minorities (8) (8) Deferred debt expense 7 7 Bank loans and bonds 1,225 1,205 Cash & cash equivalents & deposits 237 224 Net debt 988 981 Investment property and residential landbank 2,269 2,260 Right of use (45)
Slide 24: NAV
NAV EPRA NAV growth As of 31 March 2020 EPRA NAV EPRA NAV per share €m € +1% +97% 1,170 1,200 1,208 2.49 2.47 1,073 897 779 614 31 Dec 2019 31 March 2020 31 Dec'14 31 Dec'15 31 Dec'16 31 Dec'17 31 Dec'18 31 Dec'19 31 March'20 EPRA NAV bridge NAV EPRA growth momentum €m 155 1,208 1,058 (14) 1,044 10
Slide 25: Leading commercial real estate platform
LEADING COMMERCIAL REAL ESTATE PLATFORM As of 31 March 2020 BOOK ANNUALISED GTC PORTFOLIO GLA # VALUE % IN-PLACE (ths. sqm) ASSETS LOCATION BY GAV (€m) RENT (€m) Income generating 46 2,002 90% 145.4 746 (a+b) Assets for own use <1% Non core Poland 1% a) Office 41 1,175 53% 93.0(1) 530 42% b) Retail
Slide 26: Property overview
PROPERTY OVERVIEW High quality assets base in Poland and capital cities of CEE As of 31 March 2020 RENT ASSET BOOK VALUE GLA €/sq OCCUPANCY TOP PROPERTIES CLASS COUNTRY CITY €m ths. sq m m/month % Galeria Północna Poland Warsaw 296 65 21.0 90% Galeria Jurajska Poland Czestochowa 201 49 23.1 95% City
Slide 27: Portfolio: income generating properties
PORTFOLIO: INCOME GENERATING PROPERTIES As of 31 March 2020 POLAND BUDAPEST BELGRADE ZAGREB BUCHAREST SOFIA TOTAL OFFICE PROJECTS Number of building 16 5 11 2* 5 2* 41 Total GLA (ths. sq m) 196 118 122 11 67 16 530 Book value (€m) 399 248 276 25 190 37 1,175 Average rent (€/sq m) 14.4 13.8 16.8 13.3
Slide 28: Useful information
USEFUL INFORMATION INVESTOR CONTACT FINANCIAL CALENDAR GTC consolidated semi-annual report - Małgorzata Czaplicka 20 August 2020 1st half of 2020 Investor Relations Director T: +48 22 16 60 710 GTC consolidated quarterly report - mczaplicka@gtc.com.pl 17 November 2020 3rd quarter of 2020 USEFUL LINK
Slide 29: Definitions
DEFINITIONS FFO profit before tax less tax paid, after adjusting for non-cash transactions (such as fair value or real estate re- measurement, share base payment provision and unpaid financial expenses) and one off items (such as FX differences and residential activity) EPRA NAV total equity les
Slide 30: Disclaimer
DISCLAIMER THIS PRESENTATION IS NOT FOR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN. THIS PRESENTATION IS NOT AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. BY ATTENDING OR VIEWING THIS PRESENTATION, YOU ACKNOWLEDGE AN
Slide 31: Globe Trade Centre SA
GLOBE TRADE CENTRE SA KOR 45 A Nothus building 02-146 Warsaw T (22) 16 60 700 F (22) 16 60 705 www.gtc.com.pl 31