Globe Trade Centre S.a. · GPW:GTC

Globe Trade Centre — H1 2021 Earnings Presentation

37 slides from Globe Trade Centre's earnings presentation, Aug 24, 2021

  1. Slide 1: H1 2021 Results Investors Presentation

    H1 2021 RESULTS INVESTORS PRESENTATION 24 AUGUST 2021 1

  2. Slide 2: Contents

    CONTENTS KEY HIGHLIGHTS H1 2021 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 2 | H1 2021 RESULTS |

  3. Slide 3: Financial results: strong earnings, transformation to unsecured debt and €300m investment

    FINANCIAL RESULTS: STRONG EARNINGS, TRANSFORMATION TO UNSECURED DEBT AND €300m INVESTMENT  Gross margin from rental activity at €59m in H1 2021 (€59m in H1 2020)  Adjusted EBITDA at €52m in H1 2021 (€52m in H1 2020)  FFO at €31m (€33m in H1 2020), FFO per share at €0.06  EPRA NAV at €1,126m as o

  4. Slide 4: Financial results: transitioning from secured to predominantly unsecured debt

    FINANCIAL RESULTS: TRANSITIONING FROM SECURED TO PREDOMINANTLY UNSECURED DEBT  Two rating agencies assigned a corporate family rating (“CFR”) to GTC: − Fitch Ratings (“Fitch”) – BBB- with stable outlook − Moody's Investors Service ("Moody's") – Ba1 with positive outlook  Issue of €500m of green Eu

  5. Slide 5: Office sector: acquisitions and disposals combined with stronger leasing activity

    OFFICE SECTOR: A MIX OF ACQUISITIONS AND DISPOSALS COMBINED WITH STRONGER LEASING ACTIVITY  €264m invested in 4 office building and one mix-use project in Hungary will contribute €15.0m p.a. to our in-place rent  Disposal of Serbian office buildings for €268m (above the book value) to be closed in

  6. Slide 6: Office sector: recent acquisitions Hungary

    OFFICE SECTOR: RECENT ACQUSITIONS HUNGARY As of 30 June 2021 4 office and No of buildings 1 mix-use Location Budapest, Hungary GLA 78,800 sq m Occupancy 98% FOREST OFFICES ¹ In-place rent €15m Purchase price €264m 2 projects with LEED GOLD Green certification 1 project with BREEAM HEGYVIDÉK RETAIL A

  7. Slide 7: Retail sector: currently 100% of space operational, COVID-19 impact still visible

    RETAIL SECTOR: CURRENTLY 100% OF SPACE OPERATIONAL, HOWEVER COVID-19 IMPACT STILL VISIBLE IN H1 2021  Currently, 100% of our retail GLA is allowed to trade  Occupancy at 94% as at 30 June 2021 (95% as at 31 December 2020)  Retailers continue to expand: − 4,100 sq m Cinema City in Mall of Sofia (p

  8. Slide 8: Retail: strong rebound post each lockdown with high conversion rate

    RETAIL: STRONG REBOUND POST EACH LOCKDOWNS WITH HIGH CONVERSION RATE GROUP FOOTFALL AND TURNOVER CHANGE (2021/2020 vs. 2019) FOOTFALL TURNOVER Next lockdowns Last lockdown 46% GLA 31% GLA operational operational 103% 101% 97% 92% First lockdown 89% 16% GLA 86% 86% operational 83% 80% 77% 75% 74% 72%

  9. Slide 9: Contents

    CONTENTS KEY HIGHLIGHTS H1 2021 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 9 | H1 2021 RESULTS |

  10. Slide 10: High quality property portfolio with focus on offices

    HIGH QUALITY PROPERTY PORTFOLIO WITH FOCUS ON OFFICES As of 30 June 2021 TOTAL PORTFOLIO (BOOK VALUE)  90% of GAV base is recurring income-producing  66% of recurring income-producing portfolio is Project under construction Belgrade €370m 4% Budapest office €605m 15% Projects in pipeline Sofia 25%

  11. Slide 11: Office portfolio overview

    OFFICE PORTFOLIO OVERVIEW Sustainable high occupancy of prime office buildings provides solid recurring income As of 30 June 2021 OFFICE ASSETS OVERVIEW €1,431m €104m 47 624,000 GAV annualized buildings sq m GLA in-place rent GREEN CERTIFICATION OCCUPANCY RATE LOCATION 5% by GAV 12% Warsaw 92% 93% 9

  12. Slide 12: Retail portfolio overview

    RETAIL PORTFOLIO OVERVIEW Landmark shopping centers in local markets As of 30 June 2021 RETAIL ASSETS OVERVIEW €721m €47m 6 205,100 GAV annualized buildings sq m GLA in-place rent GREEN CERTIFICATION OCCUPANCY RATE LOCATION 12% 3% by GAV 95% 94% 95% 96% 95% 94% Budapest 90% 89% Belgrade 3% Zagreb 13

  13. Slide 13: Contents

    CONTENTS KEY HIGHLIGHTS H1 2021 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 13 | H1 2021 RESULTS |

  14. Slide 14: Office focused development pipeline

    OFFICE FOCUSED DEVELOPMENT PIPELINE 54,000 sq m of class A offices under construction to be completed by end of 2022 with €11m expected rental income GTC X  16,800 sq m Class A office 16,800 sq m PILLAR  29,000 sq m Class A office space Q3 2022 space 29,000 sq m  Total investment cost of €35.8m Q

  15. Slide 15: Office focused development pipeline

    OFFICE FOCUSED DEVELOPMENT PIPELINE 94,900 sq m of class A offices ready to launched in 24 months CENTER POINT 3, Budapest 35,000 sq m THE TWINS, Budapest 40,000 sq m MATRIX C, Zagreb 10,700 sq m ABC 3, Sofia 9,200 sq m Source: GTC 15 | H1 2021 RESULTS |

  16. Slide 16: Contents

    CONTENTS KEY HIGHLIGHTS H1 2021 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 16 | H1 2021 RESULTS |

  17. Slide 17: Income statement

    INCOME STATEMENT New completions offset the decrease in operating margin due to disposal of assets and impact of COVID-19 BREAK DOWN OF OPERATING (€m) H1 2021 H1 2020 MARGIN (BRIDGE) Revenue from rental activity 79 79 58.6 (2.0) 2.5 (0.6) Cost of rental operations (20) (20) 0.3 58.8 Gross margin fro

  18. Slide 18: Balance sheet

    BALANCE SHEET (€m) 30 June 2021 31 Dec 2020 COMMENTS Investment property (excl. right of use) 1 2,111 2,082 1 Mainly due to an investment (€300m) Residential landbank (excl. right of use) 7 9 mostly into acquisitions and development partially offset by reclassification of Right of use 43 44 Serbian

  19. Slide 19: Strength of debt metrics

    STRENGHT OF DEBT METRICS Confirmed by investment grade ratings of BBB- by Fitch and Ba1 by Moody’s As of 30 June 2021 KEY CREDIT METRICS DEBT MATURITY 757 €m Post the disposal of Serbian assets and 251 planned capital increase LTV ratio c. €1.5bn 51.6% will improve Total debt Net LTV significantly 2

  20. Slide 20: Cash flow statement

    CASH FLOW STATEMENT As of 30 June 2021 COMMENTS (€m) H1 2021 H1 2020 Operating activities Operating cash before working capital changes 52 52 1 Composed of expenditure on Add / deduct: investment properties mainly Change in working capital - (7) related to acquisition of new Interest paid, net (21)

  21. Slide 21: Additional materials

    ADDITIONAL MATERIALS 21 | H1 2021 RESULTS |

  22. Slide 22: Key shareholder information

    KEY SHAREHOLDER INFORMATION BASIC SHARE INFORMATION (as of 30 June 2021) SHAREHOLDER STRUCTURE Symbol GTC S.A. GTC Holding Zártkörűen Free Float Működő Részvénytársasá Share price PLN 6.70 17.58% 4.51% ISIN PLGTC0000037 Aviva OFE Aviva Performance 12M 2% Santander 7.77% Primary exchange Warsaw Stock

  23. Slide 23: Leading commercial real estate platform

    LEADING COMMERCIAL REAL ESTATE PLATFORM As of 30 June 2021 BOOK ANNUALISED GTC PORTFOLIO GLA # VALUE % IN-PLACE (€m) RENT (€m) (ths. sqm) ASSETS LOCATION BY GAV Income generating Poland 53 2,152 90% 151.6 829 36% (a+b) Assets for own use <1% a) Office (incl. AHFS) 47 1,431 60% 104.31 624 GAV b) Reta

  24. Slide 24: Portfolio: income generating properties

    PORTFOLIO: INCOME GENERATING PROPERTIES As of 30 June 2021 POLAND BUDAPEST BELGRADE ZAGREB BUCHAREST SOFIA TOTAL OFFICE PROJECTS Number of building 16 9* 11** 3 5 3 47 Total GLA (ths. sq m) 196 167 122 28 67 44 624 Book value (€m) 381 454 267 61 172 96 1,431 Average rent (€/sq m) 14.6 15.1 16.8 14.3

  25. Slide 25: Property overview

    PROPERTY OVERVIEW High quality assets base in Poland and capital cities of CEE As of 30 June 2021 BOOK GLA RENT TOP ASSET VALUE ths. €/sqm/ OCCUPANCY PROPERTIES CLASS COUNTRY CITY €m sqm month % Galeria Poland Warsaw 254 65 19.9 92% Północna Galeria Poland Czestochowa 189 49 22.2 94% Jurajska City G

  26. Slide 26: High quality property portfolio with focus on offices (pro forma)

    HIGH QUALITY PROPERTY PORTFOLIO WITH FOCUS ON OFFICES PRO FORMA FOR DISPOSAL OF SERBIAN PORTFOLIO As of 30 June 2021  89% of GAV base is recurring income-producing TOTAL PORTFOLIO (BOOK VALUE)  62% of recurring income-producing portfolio is Budapest Project under construction €605m office 4% 28% B

  27. Slide 27: Pipeline of development projects

    PIPELINE OF DEVELOPMENT PROJECTS 10% of portfolio in development projects and land reserve UNDER CONSTRUCTION PROJECTS PROJECTS UNDER CONSTRUCTION KEY METRICS 30 June 31 Dec. Belgrade 2021 2020 €12m Office 13% Gross asset value (€M) 93 63 100% Lettable area (ths. sqm) 54 37 GAV GAV €93m Budapest €93

  28. Slide 28: Unique development pipeline

    UNIQUE DEVELOPMENT PIPELINE Unlocking significant embedded value through development projects As of 30 June 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) (€m)

  29. Slide 29: Funds from operations (FFO I)

    FUNDS FROM OPERATIONS (FFO I) Robust acquisitions and developments drive FFO I As of 30 June 2021 FFO I €m 70 66  FFO I per share of €0.06 61  Robust operational performance despite impact of 47 COVID-19 42 38 33 31  Significant development pipeline to further boost 28 FFO I  Solid basis for sus

  30. Slide 30: NAV

    NAV EPRA NAV growth As of 30 June 2021 EPRA NAV EPRA NAV per share €m € 2.29 (PLN 10.57) 2.32 (PLN 10.49) +83% 1,170 1,200 1,112 1,126 1,073 897 779 614 31 Dec 2020 30 June 2021 31 Dec'14 31 Dec'15 31 Dec'16 31 Dec'17 31 Dec'18 31 Dec'19 31 Dec'20 30 June'21 EPRA NAV bridge NAV EPRA growth momentum

  31. Slide 31: Debt and LTV

    DEBT AND LTV (€m) 30 JUNE 2021 31 DECEMBER 2020 Loans and bonds (incl. LHFS) 1,523 1,261 Loans from minorities (9) (9) Deferred debt expense 11 7 Bank loans and bonds 1,526 1,259 Cash & cash equivalents & deposits 287 310 Net debt 1,239 949 Investment property, assets held for sale 2,434 2,137 and r

  32. Slide 32: Useful information

    USEFUL INFORMATION INVESTOR CONTACT FINANCIAL CALENDAR GTC consolidated quarterly report - Małgorzata Czaplicka 16 November 2021 3rd quarter of 2021 Investor Relations Director T: +48 22 16 60 710 mczaplicka@gtc.com.pl USEFUL LINKS Corporate website IR website Corporate governance H1 2021 report 32

  33. Slide 33: Definitions

    DEFINITIONS FFO  profit before tax less tax paid, after adjusting for non-cash transactions (such as fair value or real estate remeasurement, depreciation and amortization share base payment provision and unpaid financial expenses) share of profit/(loss) of associates and joint ventures and one-off

  34. Slide 34: Definitions

    DEFINITIONS NET LOAN TO VALUE RATIO (LTV)  net debt divided by gross asset value. Net loan to value provides a general assessment of financial risk undertaken AVERAGE COST OF DEBT; WEIGHTED AVERAGE INTEREST RATE  a weighted average interest rate of total debt, as adjusted to reflect the impact of

  35. Slide 35: Definitions

    DEFINITIONS CONSOLIDATED SECURED LEVERAGE RATIO  Secured Consolidated Total Indebtedness divided by Consolidated Total Assets; UNENCUMBERED PROPERTIES  such amount of the Consolidated Total Properties not pledged as Security Interest for Indebtedness ANNUALIZED INTEREST COVER RATIO  the aggregate

  36. Slide 36: 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

  37. Slide 37: 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 37

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