Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — H1 2024 Earnings Presentation
37 slides from Globalworth Real Estate Investments's earnings presentation, Oct 2, 2024
Slide 1: Globalworth: CEE's Leading Office Landlord, 2024 Interim Results
GLOBALWORTH The page numbering is dependent on the placeholder “CLICK TO..” text boxes on the page layout in the master CEE’S LEADING OFFICE LANDLORD view, so please DO NOT remove them 2024 Interim Results Presentation
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 Overview
GLOBALWORTH OVERVIEW The page numbering is dependent on the placeholder “CLICK TO..” text boxes on the page layout in the master view, so please DO NOT remove them Globalworth Tower, Bucharest, Romania 2
Slide 4: Globalworth Snapshot
GLOBALWORTH SNAPSHOT Snapshot Portfolio1 Select metrics Operating figures: Globalworth is a leading real estate Group with a Present in two of the largest and most liquid CEE primary focus on Poland and Romania markets: Poland and Romania €2.7bn 59 We acquire, develop and manage commercial rea
Slide 5: Our Business Model
OUR BUSINESS MODEL Our Resources & Proven Investment Our Core Creating Sustainable Long- Relationships Model Activities term Value Skilled Team Locations 10 Financial Cities Invest in real estate opportunities Prime locations in fast- In-house team of Generate long-term sustainable growing regions o
Slide 6: H1-2024 Key Highlights
H1-2024 KEY HIGHLIGHTS Strategic disposals of Effectively Asset Preserved and/ Strengthened Investment Resilient non-core assets and Property or Protected Capital in Sustainable Operating Managing our Operational Structure Environment Performance Real Estate Efficiency & Communities • In Q1, we sold
Slide 7: Portfolio Evolution Since 2018
PORTFOLIO EVOLUTION SINCE 2018 Portfolio Value GLA Commercial Standing GLA Commercial Standing Occupied (k sqm) (€ millions) (k sqm) 3,500 +285 €m +129k sqm +21k sqm 1,600 1,600 vs. 2018 vs. 2018 vs. 2018 3,000 1,400 1,400 1,200 1,200 2,500 1,000 1,000 2,000 800 800 1,500 600 600 1,000 400 400 500 2
Slide 8: Financial Performance Evolution Since 2018
FINANCIAL PERFORMANCE EVOLUTION SINCE 2018 • Rental income (€m) • Adjusted normalised EBITDA (€m) • Dividend distribution (€m) 180 160 160 100 108.5 140 160.5 160.4 141.6 90 140 151.5 150.3 149.8 120 93.9 129.0 130.2 126.0 131.4 80 120 137.6 119.0 100 70 100 60 66.4 80 64.9 80 50 59.8 78.9 60 40 66.
Slide 9: 2023 Operating Performance Update
2023 OPERATING PERFORMANCE UPDATE 88 Supersam, Katowice
Slide 10: H1-2024: Developments and Divestments
H1-2024: DEVELOPMENTS AND DIVESTMENTS Successfully divested of non-core assets, including our Romanian logistic portfolio, enhancing the liquidity available to the group Disposals of non-core assets: Divestment: Fully owned logistic portfolio Fully owned logistic portfolio, with a total GLA of Tim
Slide 11: H1-2024: Leasing Review
H1-2024: LEASING REVIEW • Leasing transactions of 90.1k sqm were taken up or Leasing Activity (k sqm) extended in the first semester ‒ 47.6% of leasing involving new leases and expansions Leasing Activity by Type (k sqm) Leasing Activity by Country (k sqm) ‒ Average WALL of 4.8 years ‒ New leases si
Slide 12: Asset Management / Sustainable Rental Income
ASSET MANAGEMENT / SUSTAINABLE RENTAL INCOME Total contracted rent decreased by 4.4% compared to Dec 2023, driven by asset disposal • Total contracted rent of Commercial Rent: Expiration Profile (%) Commercial Rent: Commencement Period (€m) €192.3m 95.3% of contracted rent in active leases ‒ 99%+ fr
Slide 13: H1-2024: Standing Portfolio Overview
H1-2024: STANDING PORTFOLIO OVERVIEW • 34 investments with 59 standing properties offering • Key Metrics 1.1m sqm ‒ 71 standing properties with 1.4m sqm at YE- 2023 Standing GAV1 (€ m) Standing GLA1 (k sqm) Contracted Rent1(€ m) 2,736 • Disposal of non-core assets: 2,561 1,386 192 186 ‒ Sale of Roma
Slide 14: Our Portfolio Snapshot
OUR PORTFOLIO SNAPSHOT 1313 Podium Park, Krakow
Slide 15: Combined Portfolio Snapshot
COMBINED PORTFOLIO SNAPSHOT Globalworth Poland Globalworth Romania(1) Globalworth Group(1) As of June 30th, 2024 Standing Investments(2) 18 Warsaw, 7 Regional, 11 16 Office, 12 Others, 4 34 Office & Mixed Use, 30 Others, 4 Standing GLA k (sqm)(3) 530.2 172.3 357.9 616.3 461.5 154.8 1,146.5 991.7 154
Slide 16: Modern Class A Portfolio in Prime CBD Locations and Regional Hubs
GLOBALWORTH MODERN CLASS A PORTFOLIO IN PRIME CBD LOCATIONS AND SELECT REGIONAL HUBS … Standing Portfolio as of June 2024: >€2.5bn with c. 1.1m sqm GLA in Poland and Standing Modern Portfolio as of 30 June 2024: Breakdown Romania and 84.5% Green Certified by Year of Last Refurbishment (€m) 4 Years o
Slide 17: Leased to International Blue-Chip Tenants with Strong Defensive Leases
… LEASED TO INTERNATIONAL BLUE-CHIP TENANTS WITH STRONG DEFENSIVE LEASES Diversified base of tenants with 75.3% of contracted rent from multinationals and high dispersion with largest tenant being 5.3% of contracted rent Romania1 Poland1 Group1 Globalworth's multi-tenant / campus leasing model red
Slide 18: Best in Class & Mix-Use Portfolio in Poland
BEST IN CLASS & MIX-USE PORTFOLIO IN POLAND… Warsaw GAV €615.2m Standing Properties 12 Gdansk Standing GLA 172.3k sqm Standing Occupancy 89.0% Standing Contracted Rent: €41.6m Standing 100% Potential Rent €46.0m WARSAW Regional Poland GAV €822.1m Standing Properties 24 Lodz Standing GLA 357.9k sqm W
Slide 19: Best in Class Portfolio in Romania
…AND BEST IN CLASS PORTFOLIO IN ROMANIA Bucharest GAV €1,223.0m Standing Properties 20 Standing GLA 556.9k sqm Standing Occupancy 94.3% Standing Contracted Rent €89.5m Standing 100% Potential Rent €95.4m Future GLA 90.3k (4.6k sqm let) Tg Mures Future ERV €16.5m (€0.3m contracted) Regional Romania G
Slide 20: 2023 Capital Markets Performance
2023 CAPITAL MARKETS PERFORMANCE 1919 Spektrum Tower, Warsaw
Slide 21: Capital Markets: Equity Performance
CAPITAL MARKETS: EQUITY PERFORMANCE Unique track record of raising substantial equity and continued support from our shareholders The first half of 2024 was characterised by a Shareholding Structure gradual recovery after almost two years of continued high inflation which drove interest 31 Decembe
Slide 22: Capital Markets: Bonds
CAPITAL MARKETS: BONDS • Successfully exchanged €850m Eurobonds due in 2025/26 with new €640m notes due in 2029/30 • Further deleveraged by redeeming €65m from the new bonds and €83m buy-back from the new bonds • At the beginning of the year, our two Basic Data on the Globalworth Bonds Eurobonds out
Slide 23: Financial Results Presentation
FINANCIAL RESULTS PRESENTATION 2222 Globalworth Campus, Bucharest
Slide 24: Financial Highlights H1 2024
FINANCIAL HIGHLIGHTS H1 2024 Total rental income decreased by 1.9% due to vacancies in region properties Portfolio Value1 Rental Income NOI €2.7bn €78.9m €72.4m Service charges increased by 6% leading to an overall 2023YE: €3.0bn vs H1 2023: (2)% vs H1 2023: (2)% decrease in NOI by 1.3% and in a
Slide 25: Financial Highlights: Condensed Income Statement
FINANCIAL HIGHLIGHTS: CONDENSED INCOME STATEMENT NOI lower by 1.4m: PL NOI decreased by €3.7m NOI and was partly offset by €1.6m increase in Romania (excluding impact from industrial sale) • Rental income lower by €1.6m Adjusted normalised EBITDA of €63.6m for H1 2024, lower by €2.4m than H1 202
Slide 26: Financial Highlights: Condensed Balance Sheet
FINANCIAL HIGHLIGHTS: CONDENSED BALANCE SHEET Sale of investment properties valued at €228.8m €640m bond exchanged and €275m repayments and buybacks Investment property freehold, net decrease from: Figures in €m • We sold in H1’24 industrial properties in Romania having a total value of €207.3m,
Slide 27: Financial Highlights: Condensed Cash Flow
FINANCIAL HIGHLIGHTS: CONDENSED CASH FLOW Cash flow from operations decreased due to higher interest payments made during H1 2024, a decline in EBIDTA and €10.2m change in working capital (mainly from property tax payments during H1) €275m Bond repayments €90.3m proceeds from investment proper
Slide 28: EPRA NRV and Earning Metrics
EPRA NRV AND EARNING METRICS €m 2024-H1 2023-H1 Earnings Attributable to Equity Holders (IFRS) 1 (65.3) (25.1) Adjustments per EPRA Guidelines: Fair Value movement on investment property 50.5 102.9 Changes in fair value of financial instruments (1.9) (0.1) Profit/(Losses) on disposal of investment p
Slide 29: Financing Metrics H1 2024
FINANCING METRICS H1 2024 Consolidated Loan to Value Ratio Key Balance Sheet Metrics €m 30-Jun-24 31-Dec-23 Balance Sheet Debt (at Face Value) 1,261 1,619 ■ 39.9% LTV ■ 5.10% weighted average interest rate Less: Cash/Cash Equivalents (210) (396) ■ 53% debt via unsecured, public debt markets Net Debt
Slide 30: Sustainable Development Update
SUSTAINABLE DEVELOPMENT UPDATE 2929 Globalworth Square, Bucharest
Slide 31: ESG Update: Green Buildings
ESG UPDATE: GREEN BUILDINGS We aim for all our buildings to have green certifications Acquisition of ESG-related certifications Green Certifications of Standing Portfolio and Year of Last Refurbishment (30 June 2024) (€ GAV) 14 properties were certified or recertified with BREEAM Very Good or high
Slide 32: Sustainable Development Update: People
SUSTAINABLE DEVELOPMENT UPDATE: PEOPLE 2024 H1– Globalworth Foundation We view our role as increasingly responsible towards the people that work at and visit our properties, as well as towards the wider community of which we consider ourselves to be an integral part We own >1.3m sqm of high-qual
Slide 33: Additional Operational, Investment & Portfolio Information
ADDITIONAL OPERATIONAL, INVESTMENT & PORTFOLIO INFORMATION 3232 Globalworth Tower, Bucharest
Slide 34: Combined Standing Portfolio Snapshot by Location and Type (Jun 2024)
COMBINED STANDING PORTFOLIO SNAPSHOT BY LOCATION AND TYPE (JUN 2024) 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) (k sqm) (%) Rent (€m) Years (€m) (€/sqm/m) (€
Slide 35: Strong Growth Potential from Development Landbank
STRONG GROWTH POTENTIAL FROM DEVELOPMENT LANDBANK Future Potential Developments Constanta The Luterana Secured Projects Podium III Green Court D Globalworth West Business Park Globalworth has several land banks to (Other Phases)1 Development be potentially developed in the future in phases, mainly o
Slide 36: Portfolio Yields and Vacancy as of Jun. 2024
PORTFOLIO YIELDS AND VACANCY AS OF JUN. 2024 100% Rent Yield Globalworth Vacancy Rate - Sqm Romania Poland Portfolio Poland Romania Portfolio €m €m €m Available Standing Commercial GLA (k Combined Property Portfolio 1,437.3 1,310.1 2,747.4 (A) 30.6 126.8 157.3 sqm) Less: Residential -- (25.8) (25.8)
Slide 37: For more information, please see www.globalworth.com
For more information, please see www.globalworth.com 3636
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