Globe Trade Centre S.a. · GPW:GTC
Globe Trade Centre — Q1 2021 Earnings Presentation
39 slides from Globe Trade Centre's earnings presentation, May 13, 2021
Slide 1: Q1 2021 Results Investors Presentation
Q1 2021 RESULTS INVESTORS PRESENTATION 13 MAY 2021 1
Slide 2: Contents
CONTENTS KEY HIGHLIGHTS Q1 2021 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 2 | Q1 2021 RESULTS |
Slide 3: Financial results: strong earnings result despite Covid-19 impact
FINANCIAL RESULTS: STRONG EARNINGS RESULT DESPITE COVID-19 IMPACT Gross margin from rental activity at €27m (€30m in Q1 2020), despite €2.4m impact of Covid-19 in Q1 2021 (€4.5m impact to pre-Covid levels of Q1 2019) Operating profit: profit before tax and fair value adjustments at €15m (€13m in
Slide 4: Office activity stronger than in 2020
OFFICE ACTIVITY STRONGER THAN IN 2020 Leasing activity focused mostly on prolongations reached close to 40,000 sq m: − Prolongation of IT blue chip company in Korona Office Complex, Kraków (c.11,300 sq m) − Prolongation of KMG Rompetrol in City Gate, Bucharest (c. 9,400 sq m) − Prolongation of UNI
Slide 5: Váci Greens, building D, Budapest
VÁCI GREENS, building D BUDAPEST Year of completion 2018 Location Budapest CBD, Váci út 121-127 GLA 15,650 sq m Occupancy 98.5% Total acquisition cost €51m In-place rent €2.9m Acquisition March 2021 Green Certification BREEAM Excellent Main Tenants Unilever, AVON, Ford 5 | Q1 2021 RESULTS |
Slide 6: Ericsson Headquarters Budapest
Ericsson Headquarters BUDAPEST D Year of completion 2017 Location Budapest, South Buda Magyar Tudósok körútja 11 GLA 21,100 sq m Occupancy 100% €160m (for 2 buildings: Total acquisition cost Ericsson and Siemens HQ) In-place rent €4.2m Acquisition April 2021 Green Certification LEED GOLD 6 | Q1 2021
Slide 7: Siemens Evosoft Headquarters Budapest
Siemens Evosoft Headquarters BUDAPEST Year of completion 2020 Location Budapest, South Buda Magyar Tudósok körútja 11 GLA 20,700 sq m Occupancy 100% €160m (for 2 buildings: Total acquisition cost Ericsson and Siemens HQ) In-place rent €4.7m Acquisition April 2021 Green Certification LEED GOLD 7 | Q1
Slide 8: Covid-19 still visible in Q1 2021 results, currently 100% of space operational
COVID-19 STILL VISIBLE IN Q1 2021 RESULTS HOWEVER CURRENTLY 100% OF SPACE OPERATIONAL Lockdowns in Poland, Bulgaria and Serbia lead to an impact on gross margin of €2.4m in Q1 2021 Occupancy improved to 96% as at 31 March 2021 RETAIL PORTFOLIO Currently, 100% of our retail GLA is allowed to tr
Slide 9: Contents
CONTENTS KEY HIGHLIGHTS Q1 2021 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 9 | Q1 2021 RESULTS |
Slide 10: High quality property portfolio with focus on offices
HIGH QUALITY PROPERTY PORTFOLIO WITH FOCUS ON OFFICES As of 31 March 2021 89% of GAV base is recurring income-producing TOTAL PORTFOLIO (BOOK VALUE) 61% of recurring income-producing portfolio is Belgrade Project under construction €366m office 3% Budapest €328m 17% Active development projects
Slide 11: High quality property portfolio with focus on offices (pro forma)
HIGH QUALITY PROPERTY PORTFOLIO WITH FOCUS ON OFFICES As of 31 March 2021 PRO FORMA FOR ACQUISITIONS 90% of GAV base is recurring income-producing TOTAL PORTFOLIO (BOOK VALUE) 65% of recurring income-producing portfolio is Belgrade office Project under construction Budapest €366m 3% €540m 16%
Slide 12: High quality property portfolio: building age and green certification
HIGH QUALITY PROPERTY PORTFOLIO WITH FOCUS ON OFFICES INCOME GENERATING INCOME GENERATING PORTFOLIO PORTFOLIO As of 31 March 2021 As of 31 March 2021 PRO FORMA FOR ACQUISITIONS BUILDING AGE BUILDING AGE by GAV by GAV 0-10 years 47% 0-10 years 52% 11-20 years 11-20 years 48% 53% €1,880m €2,092m GREEN
Slide 13: High quality property portfolio: office building age and certification
HIGH QUALITY PROPERTY PORTFOLIO WITH FOCUS ON OFFICES OFFICE OFFICE As of 31 March 2021 As of 31 March 2021 PRO FORMA FOR ACQUISITIONS BUILDING AGE BUILDING AGE by GAV by GAV 0-10 years 47% 0-10 years 55% 11-20 years 11-20 years 45% 53% €1,146m €1,358m GREEN CERTIFICATION GREEN CERTIFICATION 18% 15%
Slide 14: Contents
CONTENTS KEY HIGHLIGHTS Q1 2021 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 14 | Q1 2021 RESULTS |
Slide 15: Strong pipeline of development projects
STRONG PIPELINE OF DEVELOPMENT PROJECTS 11% of portfolio in development projects and land reserve UNDER CONSTRUCTION PROJECTS PROJECTS UNDER CONSTRUCTION KEY METRICS 31 March 31 Dec. 2021 2020 Office Gross asset value (€M) 72 (1) (1) 63 100% Lettable area (ths. sqm) 37 37 GAV GAV €72m €72m Sofia Off
Slide 16: Office focused development pipeline
OFFICE FOCUSED DEVELOPMENT PIPELINE 37,300 sq m of class A offices under construction to be completed by 2022 and 40,900 sq m under redevelopment PILLAR 29,000 sq m new office space CENTER Q4 2021 POINT 3 Class A office building: Budapest − Office space fully let to Exxon − To be completed in Q4
Slide 17: Contents
CONTENTS KEY HIGHLIGHTS Q1 2021 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 17 | Q1 2021 RESULTS |
Slide 18: Income statement
INCOME STATEMENT Profit before tax and fair value adjustments of €15m BREAK DOWN OF OPERATING (€m) Q1 2021 Q1 2020 MARGIN (BRIDGE) Revenue from rental activity 37 41 29.9 (1.0) 0.8 (2.4) 0.2 27.5 Cost of rental operations (10) (11) Gross margin from operations 1 27 30 G&A expenses w/o share based pr
Slide 19: Balance sheet
BALANCE SHEET (€m) 31 March 2021 31 Dec 2020 COMMENTS Investment property (excl. right of use) 1 2,093 2,082 1 Mainly due to an investment mostly into Residential landbank (excl. right of use) 7 9 assets under construction: Pillar and Sofia Tower 2 (€13m). Right of use 43 44 Assets held for sale 4 2
Slide 20: Strength of debt metrics
STRENGHT OF DEBT METRICS Confirmed by investment grade rating of BBB- by Scope Ratings As of 31 March 2021 LTV DEBT MATURITY €m 352 40% REMAINS OUR LONG TERM TARGET 330 45% 44% 45% 45.5% 133 43% Entire 42% €25m is 207 already 191 prolonged 341 2016 2017 2018 2019 2020 Q1 2021 151 109 134 163 64 AVER
Slide 21: Cash flow statement
CASH FLOW STATEMENT As of 31 March 2021 COMMENTS (€m) Q1 2021 Q1 2020 Operating activities Operating cash before working capital changes 24 27 Add / deduct: Change in working capital (1) (3) Interest paid, net (10) (7) 1 Composed of expenditure on Tax (1) (1) investment properties mainly reated to P
Slide 22: Additional materials
ADDITIONAL MATERIALS 22 | Q1 2021 RESULTS |
Slide 23: Retail: strong rebound post each lockdown
RETAIL: STRONG REBOUND POST EACH LOCKDOWNS GROUP FOOTFAL CHANGE (2021/2020 vs. 2019) First lockdown 16% GLA operational Last lockdown 31% GLA Next lockdowns operational 46% GLA operational 114% 109% 74% 77% 70% 71% 69% 64% 58% 55% 53% 53% 48% 34% 15% January* February* March* April* 2020 May* 2020 J
Slide 24: Consistently high conversion rates
CONSISTENTLY HIGH CONVERSION RATES GROUP FOOTFAL VS. TURNOVER CHANGE (2021/2020 vs. 2019) FOOTFAL TURNOVER 92% 88% 87% 84% 85% 82% 77% 74% 70% 71% 69% 67% 67% 64% 58% 58% 53% 55% 48% 49% 34%35% May* 2020 June 2020 July 2020 August 2020 September October 2020 November December January* 2021 February*
Slide 25: Key shareholder information
KEY SHAREHOLDER INFORMATION BASIC SHARE INFORMATION (as of 31 March 2021) SHAREHOLDER STRUCTURE Symbol GTC S.A. GTC Holding Zártkörűen Free Float Működő Részvénytársasá Share price PLN 6.90 16.23% 4.51% ISIN PLGTC0000037 Aviva OFE Aviva Santander Performance 12M 8% 7.77% Primary exchange Warsaw Stoc
Slide 26: Funds from operations (FFO I)
FUNDS FROM OPERATIONS (FFO I) Robust acquisitions and developments drive FFO I As of 31 March 2021 FFO I €m 70 66 FFO I per share of €0.03 61 Robust operational performance despite impact of 47 COVID-19 42 38 Significant development pipeline to further boost 28 FFO I 18 14 Solid basis for su
Slide 27: Debt and LTV
DEBT AND LTV (€m) 31 MARCH 2021 31 DECEMBER 2020 Loans and bonds 1,254 1,261 Liabilities held for sale 1 Loans from minorities (9) (9) Deferred debt expense 7 7 Bank loans and bonds 1,254 1,259 Cash & cash equivalents & deposits 294 310 Net debt 960 949 Investment property, assets held for sale 2,14
Slide 28: NAV
NAV EPRA NAV growth As of 31 March 2021 EPRA NAV EPRA NAV per share €m € 2.29 2.31 +83% 1,170 1,200 1,112 1,123 1,073 897 779 614 31 Dec 2020 31 March 2021 31 Dec'14 31 Dec'15 31 Dec'16 31 Dec'17 31 Dec'18 31 Dec'19 31 Dec'20 31 March'21 EPRA NAV bridge NAV EPRA growth momentum €m 137 1,123 974 (17)
Slide 29: Leading commercial real estate platform
LEADING COMMERCIAL REAL ESTATE PLATFORM As of 31 March 2021 BOOK ANNUALISED GTC PORTFOLIO GLA # VALUE % IN-PLACE (€m) RENT (€m) (ths. sqm) ASSETS LOCATION BY GAV Income generating Poland 48 1,880 90% 139 751 (a+b) 41% Assets for own use <1% a) Office 43 1,146 55% 90(1) 535 GAV b) Retail 5 734 35% 49
Slide 30: Office portfolio overview
OFFICE PORTFOLIO OVERVIEW Sustainable high occupancy of prime office buildings provides solid recurring income As of 31 March 2021 OFFICE ASSETS OVERVIEW BUILDING AGE by GAV 0-10 years 47% 11-20 years 53% €1,146m €1,146m €90m 43 535,000 GAV annualized buildings sq m GLA in-place rent GREEN CERTIFICA
Slide 31: Retail portfolio overview
RETAIL PORTFOLIO OVERVIEW Landmark shopping centers in local markets As of 31 March 2021 RETAIL ASSETS OVERVIEW BUILDING AGE by GAV 0-10 years 47% €734m 11-20 years 53% €734m €49m 5 216,100 GAV annualized buildings sq m GLA in-place rent GREEN CERTIFICATION OCCUPANCY RATE LOCATION 13.6% by GAV 95% 9
Slide 32: Property overview
PROPERTY OVERVIEW High quality assets base in Poland and capital cities of CEE As of 31 March 2021 BOOK GLA RENT TOP ASSET VALUE ths. €/sqm/ OCCUPANCY PROPERTIES CLASS COUNTRY CITY €m sqm month % Galeria Poland Warsaw 254 65 19.8 93% Północna Galeria Poland Czestochowa 189 49 22.2 94% Jurajska City
Slide 33: Portfolio: income generating properties
PORTFOLIO: INCOME GENERATING PROPERTIES As of 31 March 2021 POLAND BUDAPEST BELGRADE ZAGREB BUCHAREST SOFIA TOTAL OFFICE PROJECTS Number of building 16 5* 11 3* 5 3* 43 Total GLA (ths. sq m) 196 95 122 21 67 34 535 Book value (€m) 381.7 206.1 264.8 45.9 172.1 75.8 1,146.4 Average rent (€/sq m) 14.6
Slide 34: Unique development pipeline
UNIQUE DEVELOPMENT PIPELINE Unlocking significant embedded value through development projects As of 31 March 2021 TOTAL EXPECTED REVALUATION EXPECTED INVESTMENT(1) INVESTMENT(1) IN-PLACE GAIN BOOK DEVELOPMENT TOTAL GLA COST COST RENT RECOGNIZED VALUE YIELD EXPECTED CITY (ths. sq m) (€m) (€m) (€m) (€
Slide 35: Office focused development pipeline
OFFICE FOCUSED DEVELOPMENT PIPELINE 37,300 sq m of class A offices under construction to be completed by 2022 Pillar Budapest, Hungary Sofia Tower 2 Center Point I&II Sofia, Bulgaria Budapest, Hungary PROJECT DETAILS PROJECT DETAILS PROJECT DETAILS 29,000 sq m new office space 8,300 sq m new off
Slide 36: Useful information
USEFUL INFORMATION INVESTOR CONTACT FINANCIAL CALENDAR GTC consolidated semi-annual report - Małgorzata Czaplicka 24 August 2021 1st half of 2021 Investor Relations Director T: +48 22 16 60 710 GTC consolidated quarterly report - mczaplicka@gtc.com.pl 16 November 2021 3rd quarter of 2021 USEFUL LINK
Slide 37: 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 38: 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 39: 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 39