Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — Debt Investor Presentation (July 2020)
52 slides from Globalworth Real Estate Investments's debt investor presentation, Jul 31, 2020
Slide 1: Globalworth: CEE's Leading Office Landlord
Globalworth: CEE’s Leading Office Landlord Green Bond Roadshow July 2020
Slide 2: Disclaimer
Disclaimer This presentation is published solely for information purposes, and it may not be reproduced or redistributed or republished, in whole or in part, for any purpose by any person other than Globalworth Real Estate Investments Limited (the “Company”) . By accessing this presentation, you are
Slide 3: Globalworth at a glance
Globalworth at a glance Skylight & Lumen, Warsaw 2
Slide 4: Globalworth at a glance
Globalworth at a glance Introduction to Globalworth Our portfolio at a glance (30 June 2020) • Since its IPO in July 2013, Globalworth Real Estate Combined Portfolio Value (GAV)(1) Standing Commercial Occupancy Investments Limited (“Globalworth”, or “GWI” or the €3.0bn 93.3% “Company”) has accumulat
Slide 5: Globalworth at a glance (continued)
Globalworth at a glance (continued) PROVEN INVESTMENT MODEL OUR CORE ACTIVITIES Invest in Real Estate Opportunities Locations Prime locations in fast-growing regions • Acquire standing • Allocate capital to deliver properties and land growth and risk-adjusted of Poland and Romania 10 cities • Develo
Slide 6: Six Years of Progress
Six Years of Progress Portfolio Value GLA Standing GLA Commercial Standing GLA Commercial Standing Occupied (€m) (‘000s sqm) (‘000s sqm) (000’s sqm and %) 3,500 1,400 1,400 1,200 93% 95% 95% 93% 100% 85% 83% 77% 90% 3,000 1,200 1,200 1,000 80% 2,500 1,000 1,000 70% 800 800 800 60% 2,000 600 50% 600
Slide 7: Globalworth's Leading CEE Portfolio
Globalworth’s Leading CEE Portfolio Globalworth Poland(1) Globalworth Romania(1) Globalworth Group(1) As of 30 June 2020 Standing Investments(2) 22 15 37 GAV(3) / Standing GAV (4) €1,647m / €1,619m €1,398m / €1,296m €3,045m / €2,916m 94.5% 93.3% Occupancy(5) 92.0% (96.3% including tenant options) (9
Slide 8: H1 2020 Portfolio Performance Review
H1 2020 Portfolio Performance Review 7
Slide 9: H1 2020 Portfolio Performance Review (continued)
H1 2020 Portfolio Performance Review (continued) OCCUPANCY EVOLUTION (000’S SQM) 1400 Occupancy Occupancy 1200 94.7% 18.2 93.3% - 6.3 0.1 24.0 15.5 0.4 21.0 1000 539.6 551.7 800 600 594.8 565.7 400 200 0 Occupancy at Dec'19 Occupied developed GLA Expiries & Breaks New take-up Other adjustments Occup
Slide 10: Key credit highlights
Key credit highlights 9
Slide 11: Key credit highlights
Key credit highlights 1 Focus on attractive and resilient CEE markets: Romania and Poland Unique office platform offering institutional quality and modern asset base 2 in prime locations Solid income play with growing Euro-denominated cash flows secured 3 by high-quality national and multinational t
Slide 12: Best In Class Office & Mix-Use Portfolio in Poland
2 Best In Class Office & Mix-Use Portfolio in Poland … 54.1% of our portfolio by value Warsaw(1) is in 6 cities in Poland Gdansk GAV €733.2m Standing Properties 14 Standing GLA 210.9k sqm Standing Occupancy 88.4% Standing Contracted Rent: €44.0m Standing 100% Potential Rent €49.9m WARSAW Regional Po
Slide 13: Best In Class Office & Industrial Portfolio in Romania
2 … and Best In Class Office & Industrial Portfolio in Romania 627k of high-quality standing space, and a further 936k sqm Bucharest(1) that can be developed in the future, in 4 cities GAV €1,247.1m Standing Properties 18 Standing GLA 472.6k sqm Standing Occupancy 89.7% (92.0% incl. options) Standin
Slide 14: High quality leases with strong defensive features
3 High quality leases with strong defensive features Stable and predictable cash flows Long-term leases 1 Expenses covered by tenants The average duration of new leases continues to be significantly higher Tax than the market average of 5 years Insurance H1 2020 leasing activity of 115.5k sq
Slide 15: Large proportion of blue-chip international tenants
3 Large proportion of blue-chip international tenants Romania(1) Poland(1) Combined(1) Globalworth's multi-tenant / campus leasing model reduces exposure to any particular 7.8% 1.3% 2.0% 0.2% 1.7% 0.1% tenant 21.8% With almost 700 tenants, the largest is 5.3% 32.8% of contracted rent roll, while
Slide 16: Strong Growth Potential from Development Pipeline
4 Strong Growth Potential from Development Pipeline Developments situation • Projects Delivered in 2019: 17.8k sqm Developments Update: Post Covid-19 Globalworth Initiatives(1)(2) ‒ 1st Facility in TIP II delivered increasing our industrial footprint in Timisoara to 121.2k Number Est. Rent Capex GAV
Slide 17: Dedicated internal asset management expertise
5 Dedicated internal asset management expertise Key focus area Maintaining high portfolio occupancy Opportunity to extract income and value from assets 95.4% 96.3% 95.0% 94.2% Reducing vacancy with strong on-the-ground w/options w/options w/options w/options leasing team 93.3% 95.1% 94.7% 93.3%
Slide 18: Globalworth's focus on asset management and innovation
Globalworth’s focus on asset management 5 and innovation • Constantly improving the quality of our Selected Initiatives property services Globalworth Tower: Kinetic Floor Globalworth Tower: Natural Green Wall ‒ Added 47 professionals mainly to our asset and property management teams on the ground ‒
Slide 19: Solid balance sheet and conservative financial policy
6 Solid balance sheet and conservative financial policy • 34.7% LTV and 2.83% weighted average interest rate • Liquidity of c.€565m as of June 2020 • €550m 5 yr Eurobond in Jun-17 with 2.875% coupon Key Balance Sheet • 83.3% debt via unsecured, public debt markets Debt • €550m 7yr EMTN issue in Mar-
Slide 20: Strong anchor shareholders supportive of Globalworth growth
6 Strong anchor shareholders supportive of Globalworth growth Shareholder structure(1) Strong support from key shareholders Growthpoint become a cornerstone shareholder in December 2016; Other CPI Property shares GWI’s strategic vision and has subsequently supported the 14.3% Group Company’s expan
Slide 21: COVID-19 update
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Slide 22: Globalworth Leading Office Platform is Strongly Positioned and Operating Normally
Globalworth Leading Office Platform is Strongly Positioned and Operating Normally % Collection rate (average for % of Portfolio % of Portfolio the first semester)4 by Contracted Comments: Rent1 Affected by Now 2019 2020 GLA Space Type Lockdown Operational2 • Office areas are fully operational with O
Slide 23: Covid-19: Initiatives To Ensure Health, Safety And Business Continuity
Covid-19: Initiatives To Ensure Health, Safety And Business Continuity • The safety and wellbeing of Close Monitoring of the Covid -19 Virus Outbreak Actions For Our People our people, partners, • Dedicated teams at Group and country levels set up to • Our number one priority is to keep our teams sa
Slide 24: Covid-19: 2020-YTD Initiatives to Mitigate Economic Impact
Covid-19: 2020-YTD Initiatives to Mitigate Economic Impact Globalworth as a result of the Covid-19 pandemic has been implementing several significant measures aiming at safeguarding continuity of business, preserving cash flow and protecting its income and assets. Asset & Property Management Buildin
Slide 25: Covid-19: Our Preliminary Take-Aways on Sustainability of Our Business
Covid-19: Our Preliminary Take-Aways on Sustainability of Our Business Consideration Consideration Where we Stand Countries of Focus • Covid-19 has spread across the Globe with • Poland and Romania as of July 19th 2020, had 39.7k and 36.7k confirmed Covid-19 cases, ranking 13 and some countries and
Slide 26: Globalworth's Approach to Sustainability
Globalworth’s Approach to Sustainability Green Court Complex, Bucharest 25
Slide 27: Our Sustainability Vision and Values
Our Sustainability Vision and Values Our Vision Our Values Our Values reflect the way we carry out our business and how our business can shape the future. SELECTIVE EXAMPLES SUCH AS: One team Our strength as a team is much greater than that of any building sustainable environments individual We
Slide 28: Our Commitments and Initiatives
Our Commitments and Initiatives Memberships Globalworth in 2018, established the Globalworth Foundation, an entity 100% owned by the Group, responsible for overseeing its various ESG initiatives. The Foundation, alongside the whole Globalworth Globalworth team, works to ensure that the Group acts co
Slide 29: We are Strongly Engaging with our Stakeholders
We are Strongly Engaging with our Stakeholders We recognize as our stakeholders Groups Type of Communication & Engagement Frequency of Communication Key Topics and Concerns those entities or individuals who are Occasionally significantly affected by and Responsible water management Daily dependent
Slide 30: Large Portfolio of Certified Green Buildings
Large Portfolio of Certified Green Buildings Certified green buildings Buildings under ongoing certification Year Last Year GAV Last GAV Asset name Country Built refurb. Certification certified (€m) Asset name Country Year Built refurb. Certification (€m) Globalworth Tower RO 2016 2019 LEED Platinum
Slide 31: Globalworth's Green Bond Framework
Globalworth’s Green Bond Framework Skylight & Lumen, Warsaw 30
Slide 32: Globalworth Green Bond Framework
Globalworth Green Bond Framework Evaluation Summary • In line with good market practice and ICMA GBP recommendations, Globalworth decided to obtain a Second Party Opinion on its inaugural Green Bond Framework Sustainalytics is of the opinion that the Globalworth Green Bond Framework from Sustainalyt
Slide 33: Green Bond Framework: Use of Proceeds
Green Bond Framework: Use of Proceeds Eligible Environmental UN Sustainable Development Target 1 Category Eligibility criteria benefits Contributed To Use of Proceeds • Acquisition, construction or refurbishment of buildings which Green buildings meet recognised standards for best practices in energ
Slide 34: Green Bond Framework: Project Selection and Evaluation
Green Bond Framework: Project Selection and Evaluation GWI is committed to high standards in environmental, social and ethical matters. As such, all of GWI’s real estate investments are subject to environmental assessment procedures and in line with local environmental and social regulation. Befor
Slide 35: Green Bond Framework: Management of Proceeds
Green Bond Framework: Management of Proceeds 1 Use of Proceeds 2 GWI intends to allocate the proceeds from the Green Bonds to an Eligible Green Project Portfolio, selected in accordance with the Project use of proceeds criteria and evaluation and selection process presented above Management of pro
Slide 36: Green Bond Framework: Reporting
Green Bond Framework: Reporting 1 Approach to Reporting Impact reporting Use of Proceeds In order to enable investors to follow its Green Bond progress, and to provide insight to prioritised Where feasible, to demonstrate substantial areas, Globalworth is committed to providing a contribution to
Slide 37: Eligible Assets Portfolio
Eligible Assets Portfolio Eligible Assets Portfolio split by certification (based on eligible portfolio value) Eligible Assets Portfolio split by country (based on eligible portfolio value) Eligible Assets Portfolio value of: €1,568m In % out of eligible 58% 42% assets portfolio €m 700 619 LEED Plat
Slide 38: Selected Eligible Assets: Podium Park, Krakow
Selected Eligible Assets: Podium Park, Krakow Overview Property Photos • Podium Park comprises of three interconnected office. Podium Park I was completed in Q3 2018, while Podium Park II and III are currently under development. • Globalworth has signed a development management agreement with the ve
Slide 39: Selected Eligible Assets: Skylight & Lumen, Warsaw
Selected Eligible Assets: Skylight & Lumen, Warsaw Overview Property Photos • The largest property transaction to-date by the Group was concluded in Q4-18 with the acquisition of the two office buildings in Warsaw known as “Skylight” and “Lumen” from Unibail-Rodamco-Westfield, for a total considerat
Slide 40: Selected Eligible Assets: Globalworth Tower, Bucharest
Selected Eligible Assets: Globalworth Tower, Bucharest Overview Property Photos Landmark class A multi-tenanted office building located in the Northern part of Bucharest, delivered in 2016 2nd tallest office property in Bucharest with a height of 120m , extending over 26 floors above ground and
Slide 41: Selected Eligible Assets: Globalworth Campus, Bucharest
Selected Eligible Assets: Globalworth Campus, Bucharest Overview Property Photos • Largest office campus in Bucharest, with 92.0k sqm of high-quality space balanced between Class “A” offices, commercial and other supporting facilities, and a 750-seat conference centre. Developed in phases with: – Ph
Slide 42: 2019 Review
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Slide 43: Our Strategy in Motion During 2019
Our Strategy in Motion During 2019 Strengthen our Corporate Activity: position as the • Became the sole shareholder of our subsidiary Globalworth Poland at a cost of €216.1m leading investor and • Formed a partnership in Romania to develop two new high-quality projects in the country landlord in our
Slide 44: Our Strategy in Motion During 2019 (continued)
Our Strategy in Motion During 2019 (continued) De-risk our Portfolio • Reduced exposure to developments by limiting their weighting to no more than 10% of GAV, and improved occupancy through active management during the development phase • Diversified locations to reduce reliance to any single sub-m
Slide 45: FY 2019 – Financial Highlights
FY 2019 – FINANCIAL HIGHLIGHTS • Strong growth in Portfolio Value1 Rental Income NOI financial metrics following ongoing €3.0bn €151.5m €147.7m portfolio expansion +23.7% +10.1% +10.7% in 2019 EPRA Net Asset Value Adj EBITDA2 Adj Normalised EBITDA3 • Successful capital €2.1bn €240.1m €134.8m markets
Slide 46: Financial Highlights: P&L
Financial Highlights: P&L Condensed Income Statement Comments €m 2019 2018 Variance % Chg 1. Increase in Rental Income of 10%: Rental Income 1 151.5 137.6 13.9 10% • New acquisitions in Poland added rental income of €12.1m Net Operating Expenses -3.8 -4.2 0.4 -10% • Successful leasing activity resul
Slide 47: Financial Highlights: Balance Sheet
Financial Highlights: Balance Sheet Condensed Balance Sheet Comments €m 2019 2018 Variance % Chg 1. Growth in investment property by €0.7bn split to: Investment property 1 3,049 2,391 658 28% • New acquisitions of €423.7m in Poland (€335.1m) and Romania (€ 88.6m) Investment in joint ventures 2 18 38
Slide 48: EPRA NAV and Earnings Metrics
EPRA NAV and Earnings Metrics €m 2019 2018 IFRS to EPRA Earnings Bridge (€m) Earnings Attributable to Equity Holders (IFRS) 170.2 80.3 Adjustments per EPRA Guidelines: Fair Value gain on investment property -117.7 -34.1 Chg. in FV of financial instruments & resp. close-out costs 0.5 0.3 Losses on di
Slide 49: Other Portfolio Supporting Materials
Other Portfolio Supporting Materials 48
Slide 50: Combined Standing Commercial Portfolio Snapshot
Combined Standing Commercial Portfolio Snapshot: (data as of 30 June 2020) Number of Value Area Occupancy Rate Rent Contracted Headline Rent / Sqm or Unit Investments Properties GAV GLA by GLA Contracted WALL 100% Rent Office Commercial Industrial (#) (#) (€m)(1) (k sqm) (%) Rent (€m) Years (€m) (€/
Slide 51: Strong Growth Potential from Development Pipeline
Strong Growth Potential from Development Pipeline Future Developments Globalworth has a number of developments to be developed in the future in phases, mainly office and industrial projects, in Bucharest and other principal regional cities in Romania, and on completion will offer c.880.6k sqm of hig
Slide 52: For more information, please see www.globalworth.com or contact ir@globalworth.com
For more information, please 51 see www.globalworth.com or contact ir@globalworth.com
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