Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — H1 2021 Earnings Presentation
42 slides from Globalworth Real Estate Investments's earnings presentation, Sep 28, 2021
Slide 1: Globalworth: CEE's Leading Office Landlord – H1 2021 Results Presentation
Globalworth: CEE’s Leading Office Landlord H1 - 2021 Results Presentation
Slide 2: Globalworth Overview
Globalworth Overview Green Court Complex, Bucharest 1
Slide 3: Globalworth Snapshot
Globalworth Snapshot • Globalworth is a leading real estate Group with a primary focus on Poland and Romania, the two Select Metrics largest markets in the CEE • We acquire, develop and manage commercial real estate assets, primarily in the office sector €3.1bn 66 1,303.0k 88.7% GAV Standing Propert
Slide 4: Portfolio Evolution Since 2017
Portfolio Evolution Since 2017 Portfolio Value GLA Standing GLA Commercial Standing GLA Commercial Standing Occupied (€m) (‘000s sqm) (‘000s sqm) (000’s sqm and %) 93% 95% 95% 91% 3,500 1,400 1,400 1,200 89% 100% 3,000 1,200 1,200 1,000 80% 2,500 1,000 1,000 800 60% 2,000 800 800 600 40% 1,500 600 6
Slide 5: Financial Performance Evolution since 2017
Financial Performance Evolution since 2017 Rental Income Adjusted Normalised EBITDA EPRA earnings/share Dividend per share (€m) (€m) (€ cents) (€ cents) 180.0 160.0 50 70.0 160.0 140.0 45 60.0 140.0 40 120.0 35 50.0 120.0 100.0 30 100.0 40.0 80.0 25 80.0 30.0 60.0 20 60.0 15 20.0 40.0 40.0 10 20.0 1
Slide 6: 2021 H1 Key Highlights
2021 H1 Key Highlights Skylight & Lumen, Warsaw 5
Slide 7: Our Strategy in Motion During 2021 H1
Our Strategy in Motion During 2021 H1 Strengthening Our • Delivered our Globalworth Square office development in Bucharest with 27.0k sqm of class “A” space Position in Our • Acquired two high-quality logistic / light-industrial facilities in the western part of Romania, for €17.9 million offering a
Slide 8: Our Strategy in Motion During 2021 H1 (cont'd)
Our Strategy in Motion During 2021 H1 (cont’d) Maintained an • Maintained investment grade rating by all three major rating agencies Efficient ‒ Moody’s affirmed Globalworth's Baa3 rating and “Negative” outlook mainly due to their house view on the Romanian economy and Flexible ‒ following their yea
Slide 9: Portfolio & Operational Performance
Portfolio & Operational Performance Renault Bucharest Connected 8
Slide 10: New Acquisitions and Developments
New Acquisitions and Developments: Investments: New Additions • Acquired two high-quality logistic / light-industrial facilities in the western part of Romania Standing Properties Acq. Price GLA Initial 100% Occ. City Acquired (€m) (K sqm) Yield (%) Yield (%) – Acquisition Price: €17.9m IPW - Arad A
Slide 11: New Acquisitions - Standing Properties
New Acquisitions - Standing Properties Industrial Park West Oradea • The project is located in the Oradea Business Park 1 and comprises a 6.9k sqm built to suit manufacturing facility developed on c.21.9k sqm of land. • The facility is 100% leased to IWIS on a 15 year lease contract • IPW – Oradea i
Slide 12: New Acquisitions - Standing Properties (cont'd)
New Acquisitions - Standing Properties (cont’d) Industrial Park West Arad • The project is located in the Arad Industrial Park West, in the North-West part of the city of Arad • The 20.1k sqm facility was developed in phases, comprising of production, warehouse, office and technical spaces ‒ Phase 1
Slide 13: Developments Delivered: Globalworth Square
Developments Delivered : Globalworth Square Globalworth Square (Bucharest) Status Standing Type Class “A” Office Delivery June 2021 GLA (k sqm) 29.1 Cost / Capex to Jun 21 (€m) 55.0 GAV (€m) 63.6 Est. Remaining Capex (€m) 2.3 Occupancy (%) 36.8% Contracted Rent / 100% Occupancy Rent (€m) €2.7m / €5.
Slide 14: Development Projects Prioritized
Development Projects Prioritized Timisoara Industrial Chitila Logistics Hub Pitesti Industrial Park Constanta Business Park Secured Projects Total Park II B3 (Phase B and C)(1) (“PIP Caroli”) (Phase 2)(1) Status Under Construction Under Construction Under permitting Dev. prioritized Industrial, Indu
Slide 15: Refurbishment / Repositioning: Renoma
Refurbishment / Repositioning: Renoma • Renoma is a landmark mixed-use property in Refurbishment / Repositioning Overview Wroclaw • First opened in 1930 and was last renovated in 2009 • Property is under refurbishment / repositioning, in a process which started in the second part of 2020, aiming at:
Slide 16: Refurbishment / Repositioning: Supersam
Refurbishment / Repositioning: Supersam • Supersam is a modern multi-functional building Refurbishment / Repositioning Overview combining retail and services with office space • Launched at the end of 2015 and located in the very centre of Katowice, in a traditionally commercial part of town, close
Slide 17: Asset Management / Leasing Review
Asset Management / Leasing Review • Best Leasing Half Since Inception Key Metrics ‒ 194.4k sqm of commercial space taken-up or Leasing Activity by Type (k sqm) Leasing Activity by Country (k sqm) extended despite challenging market 3.8 yrs conditions, representing a +68.2% increase New Leases: 83.1k
Slide 18: Asset Management / Sustainable Rental Income
Asset Management / Sustainable Rental Income • Total contracted rent of Commercial Rent: Lease Expiration Profile (€m) Commercial Rent: Commencement Period (€m) €185.2m ‒ +99% from commercial 6.7 1.5 8.2 spaces 6.1 1.9 - 0.3 177.0 168.7 ‒ 94.7% from active leases • Total commercial contracted GLA: +
Slide 19: Asset Management / Rent Collections & Impact on NOI
Asset Management / Rent Collections & Impact on NOI % Collection rate4 % of Portfolio by Contracted Comments: Rent1 Dec 2020 June 2021 GLA Space Type • Office areas are fully operational with Office 87%2 99% 99% activity level close to normal levels. • Part of retail spaces affected by Covid-19 Indu
Slide 20: Standing Portfolio
Standing Portfolio • Standing Portfolio: €2.8bn Key Metrics ‒ Overall standing portfolio value marginally increased to €2.8 billion (+1.1%), mainly due Standing GAV1 (€ m) Standing GLA1 (k sqm) Contracted Rent1(€ m) to new acquisitions and the net positive 2,805 2,837 1,271 1,303 impact from our dev
Slide 21: Our Portfolio Snapshot
Our Portfolio Snapshot Podium Park 20
Slide 22: Globalworth's Leading CEE Platform: H1-2021
Globalworth’s Leading CEE Platform: H1-2021 Globalworth Poland(1) Globalworth Romania(1) Globalworth Group(1) As of 30 June 2021 Standing Investments(2) 19 20 39 GAV(3) / Standing GAV €1,603m / €1,445m €1,469m / €1,392m €3,073m / €2,837m 89.2% 88.7% Occupancy(4) 88.0% (91.0% including tenant options
Slide 23: Best In Class Office & Mix-Use Portfolio in Poland
Best In Class Office & Mix-Use Portfolio in Poland … 55.6% of our portfolio by value is in 5 regional cities in Poland Warsaw Gdansk GAV €712.3m Standing Properties 14 Standing GLA 210.9k sqm Standing Occupancy 86.5% Standing Contracted Rent: €42.5m Standing 100% Potential Rent €49.2m WARSAW Regiona
Slide 24: Best In Class Office & Industrial Portfolio in Romania
… and Best In Class Office & Industrial Portfolio in Romania 761k of high-quality standing Bucharest space, and a further 867k sqm GAV €1,281.8m that can be developed in the Standing Properties 20 future, in 6 cities Standing GLA 523.7k sqm Standing Occupancy 83.% (85.4% incl. options) Oradea Standi
Slide 25: Sustainable Development Update
Sustainable Development Update 24
Slide 26: Sustainable Development Update: (Green) Places
Sustainable Development Update: (Green) Places Green Buildings Other Initiatives • 22 properties were certified or recertified with BREEAM Very Good • As part of our overall green initiatives in the first half of the year or higher certifications tin H1-2021 we were able to secure: ‒ 5 properties in
Slide 27: Sustainable Development Update: People
Sustainable Development Update: People Our Communities • 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. • Maintained our strong focus of giving back t
Slide 28: Sustainable Development Update: Reporting
Sustainable Development Update: Reporting Annual Reporting Reporting • The 3rd Sustainable Development report, covering the year 2020 is available at: www.globalworth.com/sustainability • Annual reporting prepared in accordance with: ‒ the Global Reporting Initiative (GRI) Standards - core option, ‒
Slide 29: H1 2021 Capital Markets Performance
H1 2021 Capital Markets Performance Renoma 28
Slide 30: Capital Market Performance / Equity
Capital Market Performance / Equity • On 12 May 2021, CPI Property Group and 2020 Share Price Performance Aroundtown formed a consortium 130% (“CPI/AT Consortium”) and launched a cash offer, via Zakiono Enterprises 120% Limited, for the acquisition of the entire issued and to be issued share capital
Slide 31: Capital Market Performance / Eurobonds
Capital Market Performance / Eurobonds Simple capital structure, with 3 Eurobonds of Euro 1.3bn outstanding at H1 2021 accounting for 78.0% of our total debt • €1.5bn EMTN program in place 2020 Eurobond Yield Performance ‒ €550m raised in 2018 (GWI 18/25 bond) 2.0% ‒ €400m raised in 2020 (GWI 20/26
Slide 32: 2020 Financial Results
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Slide 33: H1 2021 – Financial Highlights
H1 2021 – FINANCIAL HIGHLIGHTS Relatively small negative impact on operational Portfolio Value1 Rental Income NOI profitability in H1-2021, €3.1bn €75.4m €72.2m compared to our best YE-2020: €3.0bn vs H1-2020: -7.2% vs H1-2020: -9.4% performing half year in H1-2020 EPRA NRV IFRS Earnings before tax
Slide 34: Financial Highlights: Income Statement
Financial Highlights: Income Statement Condensed Income Statement Comments €m H1-21 H1-20 Variance 1. Decrease in NOI of €7.4m is due to: Rental Income 1 75.4 81.2 (5.9) • a €6.0m reduction in rental income from LfL standing properties; Net Operating Expenses (3.2) (1.6) (1.6) • a €0.8m reduction in
Slide 35: Financial Highlights: Balance Sheet
Financial Highlights: Balance Sheet Condensed Balance Sheet Comments €m Jun-21 Dec-20 Variance 1. Investment property increased by €36m mainly due to the acquisition of two standing Investment property 1 3,049 3,013 36 industrial properties (€18 m), CAPEX investments made on a property under develop
Slide 36: EPRA NAV and Earnings Metrics
EPRA NAV and Earnings Metrics €m H1-21 H1-20 IFRS to EPRA Earnings Bridge (€m) Earnings Attributable to Equity Holders (IFRS) 12.5 (48.6) Adjustments per EPRA Guidelines: Fa i r Va l ue movement on i nves tment property 14.7 92.0 Chg. i n FV of fi na nci a l i ns truments & res p. cl os e-out cos ts
Slide 37: Financing Metrics
Financing Metrics ■ GWI 17/22 bond: €323.1m @ 2.875% coupon ■ 39.2% LTV ■ GWI 18/25 bond: €550m (EMTN) @ 3.000% coupon Key Balance Sheet ■ 2.73% weighted average interest rate Debt ■ GWI 20/26 bond: €400m (EMTN) @ 2.950% coupon Metrics ■ 77.8% debt via unsecured, public debt markets Instruments ■ Se
Slide 38: Other Supporting Material
Other Supporting Material 37
Slide 39: 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.785.1k sqm of hig
Slide 40: Combined Standing Commercial Portfolio Snapshot
Combined Standing Commercial Portfolio Snapshot: (data as of 30 June 2021) 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 Logistics / L.I. (#) (#) (€m) (k sqm) (%) Rent (€m) Years (€m)
Slide 41: 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 42: For more information, please see www.globalworth.com or contact ir@globalworth.com
For more information, please 41 see www.globalworth.com or contact ir@globalworth.com
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