Slide 1: 2020 Results Investors Presentation
2020 RESULTS INVESTORS PRESENTATION 23 MARCH 2021 1
Slide 2: Contents
CONTENTS KEY HIGHLIGHTS 2020 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 2 | 2020 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 €119m (€128m in 2019), despite €15m impact of Covid-19 Operating profit: profit before tax and fair value adjustments at €66m (€73m in 2019) FFO strong at €66m (€70m in 2019), FFO per share a
Slide 4: Office: slower activity due to Covid-19
OFFICE: SLOWER ACTIVITY DUE TO COVID-19 Pandemic slows leasing activity, but it still reached 70,000 sq m in 2020: Extension and prolongation of Barry Callebaut lease in UBP B, Łódź (6,000 sq m) Extension and prolongation of Takeda lease in Sterlinga, Łodź (5,600 sq m) Covid-19 Prolongation of
Slide 5: Retail: strong rebound post each lockdown
RETAIL: STRONG REBOUND POST EACH LOCKDOWNS GROUP FOOTFAL CHANGE Y-o-Y First lockdown 16% GLA operational Next lockdowns 46% GLA operational 114% 109% 74% 77% 70% 71% 69% 64% 58% 53% 53% 48% 34% 15% January February March April 2020 May 2020 June 2020 July 2020 August September October November Decem
Slide 6: Consistently high conversion rates
CONSISTENTLY HIGH CONVERSION RATES GROUP FOOTFAL VS. TURNOVER CHANGE Y-o-Y 88% FOOTFAL TURNOVER 85% 87% 84% 82% 84% 77% 74% 70% 71% 69% 67% 64% 58% 58% 53% 48% 49% 39% 34% May* June 2020 July 2020 August 2020 September October 2020 November 2020 December 2020 January 2021 February 2021 2020 Curren
Slide 7: Prompt and effective measures to minimize negative effects: operating
PROMPT AND EFFECTIVE MEASURES TO MINIMIZE NEGATIVE EFFECTS Renegotiation of contracts with retailers Operating measures Gross margin impacted by €15m in 2020 due to Covid-19 lockdowns and to support related tenant’s support measures the tenants Temporary discounts in return for material extensions a
Slide 8: Prompt and effective measures to minimize negative effects: financial
PROMPT AND EFFECTIVE MEASURES TO MINIMIZE NEGATIVE EFFECTS Savings of €7m in expenses from investment property achieved by deferral/reduction of non time-critical maintenance, marketing Savings of €2m in other operating expenses €41m Financial measures to increase Rescheduling of commencement of inv
Slide 9: Contents
CONTENTS KEY HIGHLIGHTS 2020 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 9 | 2020 RESULTS |
Slide 10: Intensive period of changes in the portfolio
INTENSIVE PERIOD OF CHANGES IN THE PORTFOLIO COMPLETION SALE OF SPIRAL COMPLETION ACQUISITION OF GREEN OF ADVANCE OF HEART N3 BUSINESS VACI GREEN D CENTER II 30,550 sq m 5,400 sq m 15,650 sq m 17,800 sq m COMMENCEMENT OF ACQUISITION ACQUISITION CONSTRUCTION COMPLETION OF VACI 173-177 OF LANDPLOT OF
Slide 11: High quality property portfolio with focus on offices
HIGH QUALITY PROPERTY PORTFOLIO WITH FOCUS ON OFFICES As of 31 December 2020 90% of GAV base is recurring income-producing TOTAL PORTFOLIO (BOOK VALUE) 61% of recurring income-producing portfolio is Belgrade Project under construction Budapest €366m office 3% €320m 17% Active development proje
Slide 12: High quality portfolio and international tenant base helps to mitigate challenges
HIGH QUALITY PORTFOLIO AND INTERNATIONAL TENANT BASE HELPS TO MITIGATE CHALLENGES As of 31 December 2020 TENANTS’ BASE GREEN CERTIFICATION 16% Strong retention rate across the portfolio 2% GTC’s organic growth strategy and the 84% assets with green corresponding high share of own developments in
Slide 13: Contents
CONTENTS KEY HIGHLIGHTS 2020 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 13 | 2020 RESULTS |
Slide 14: Strong pipeline of development projects
STRONG PIPELINE OF DEVELOPMENT PROJECTS 10% of portfolio in development projects and land reserve UNDER CONSTRUCTION PROJECTS PROJECTS UNDER CONSTRUCTION KEY METRICS 31 Dec. 31 Dec. 2020 2019 Office Gross asset value (€M) 63 (1) (1) 84 100% Lettable area (ths. sqm) 37 63 GAV GAV €63m €63m Sofia €3m
Slide 15: Office focused development pipeline
OFFICE FOCUSED DEVELOPMENT PIPELINE 37,300 sq m of class A offices under construction to be completed by 2022 and 40,900sq 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 16: Contents
CONTENTS KEY HIGHLIGHTS 2020 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 16 | 2020 RESULTS |
Slide 17: Income statement
INCOME STATEMENT Profit before tax and fair value adjustments of €66m (€m) 2020 2019 COMMENTS Revenue from rental activity 1 160 170 The decrease mainly resulted 1 from a rent relief and rent Cost of rental operations (42) (42) concessions and discounts Gross margin from operations 119 128 provided
Slide 18: Impact of Covid-19 on gross margin offset by new completions
IMPACT OF COVID-19 ON GROSS MARGIN OFFSET BY NEW COMPLETIONS 15% decrease in gross margin from COVID-19 impact and disposals partially offset by new completions and like-for-like growth Operating margin (gross margin to rental income) stood at 74% (75% in 2019) 2020 GROSS MARGIN BRIDGE (€m) 9.0
Slide 19: Devaluation of income generating assets mostly due to Covid-19 impact on retail
DEVALUATION OF INCOME GENERATING ASSETS MOSTLY DUE TO COVID-19 IMPACT ON RETAIL REVALUATION LOSS ON INCOME 2020 REVALUATION LOSS ON INCOME GENERATING GENERATING ASSETS BY SECTOR ASSETS As of 31 December 2020 Revaluation Office (€m) (%) 30% COMPLETED RETAIL (101) -12% Poland (55) -11% Belgrade (30) -
Slide 20: Balance sheet
BALANCE SHEET (€m) 31 Dec 2020 31 Dec 2019 COMMENTS Investment property (excl. right of use) 1 2,082 2,203 1 Mainly due to the impact of the COVID-19 Residential landbank (excl. right of use) 9 12 outbreak on the value of the properties, disposal of Spiral and non-core land plots Right of use 44 46
Slide 21: Strength of debt metrics
STRENGHT OF DEBT METRICS Confirmed by investment grade rating of BBB- by Scope Ratings As of 31 December 2020 LTV DEBT MATURITY €m 50% REMAINS OUR LONG TERM TARGET 280 264 45% 44% 45% 43% 193 192 133 42% 191 140 248 2016 2017 2018 2019 2020 135 136 134 109 131 21 25 32 AVERAGE INTEREST RATE 37 31 38
Slide 22: Green bonds
GREEN BONDS Strong dedication to sustainability and social awareness ISSUE SIZE EUR 110m EUR 54m Green bonds CREDIT RATING Scope Ratings GmbH – Corporate credit rating of • Sustainanalytics has prepared Second- the Issuer: BBB– (Stable); Credit rating of the Bonds: BBB– Party opinion USE OF PR
Slide 23: Cash flow statement
CASH FLOW STATEMENT As of 31 December 2020 COMMENTS (€m) 2020 2019 Operating activities Operating cash before working capital changes 105 108 1 Stable cash flow from operating activity despite Covid-19 impact Add / deduct: Change in working capital 2 1 Interest paid, net (32) (32) 2 Composed of expe
Slide 24: Additional materials
ADDITIONAL MATERIALS 24 | 2020 RESULTS |
Slide 25: Key shareholder information
KEY SHAREHOLDER INFORMATION BASIC SHARE INFORMATION (as of 31 Dec. 2020) SHAREHOLDER STRUCTURE Symbol GTC S.A. GTC Holding Zártkörűen Free Float Működő Részvénytársasá Share price PLN 7.20 16.23% 4.51% ISIN PLGTC0000037 Aviva OFE Aviva Santander Performance 12M -26% 7.77% Primary exchange Warsaw Sto
Slide 26: Funds from operations (FFO I)
FUNDS FROM OPERATIONS (FFO I) Robust acquisitions and developments drive FFO I As of 31 December 2020 FFO I €m 70 66 FFO I per share of €0.14 61 Robust operational performance despite impact of 47 COVID-19 42 38 Significant development pipeline to further boost 28 FFO I Solid basis for susta
Slide 27: Debt and LTV
DEBT AND LTV (€m) 31 DECEMBER 2020 31 DECEMBER 2019 Loans and bonds 1,261 1,206 Loans from minorities (9) (8) Deferred debt expense 7 7 Bank loans and bonds 1,259 1,205 Cash & cash equivalents & deposits 310 224 Net debt 949 981 Investment property, assets held for sale 2,137 2,260 and residential l
Slide 28: NAV
NAV EPRA NAV growth As of 31 December 2020 EPRA NAV EPRA NAV per share €m € +81% 1,170 1,200 1,112 2.47 2.29 1,073 897 779 614 31 Dec 2019 31 Dec 2020 31 Dec'14 31 Dec'15 31 Dec'16 31 Dec'17 31 Dec'18 31 Dec'19 31 Dec'20 EPRA NAV bridge NAV EPRA growth momentum €m 135 1,112 974 (16) 958 19 EPRA NA
Slide 29: Leading commercial real estate platform
LEADING COMMERCIAL REAL ESTATE PLATFORM As of 31 December2020 BOOK ANNUALISED GTC PORTFOLIO GLA # VALUE % IN-PLACE (€m) RENT (€m) (ths. sqm) ASSETS LOCATION BY GAV Income generating Poland 48 1,879 90% 139.4 753 (a+b) 42% Assets for own use <1% a) Office 43 1,145 55% 90.6(1) 536 GAV b) Retail 5 734
Slide 30: Office portfolio overview
OFFICE PORTFOLIO OVERVIEW Sustainable high occupancy of prime office buildings provides solid recurring income As of 31 December 2020 OFFICE ASSETS OVERVIEW BUILDING AGE by GAV 0-10 years 45% 11-20 years €1,145m 55% €1,145m €91m 43 536,400 GAV annualized buildings sq m GLA in-place rent GREEN CERTIF
Slide 31: Retail portfolio overview
RETAIL PORTFOLIO OVERVIEW Landmark shopping centers in local markets As of 31 December 2020 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
Slide 32: Property overview
PROPERTY OVERVIEW High quality assets base in Poland and capital cities of CEE As of 31 December 2020 BOOK GLA RENT TOP ASSET VALUE ths. €/sqm/ OCCUPANCY PROPERTIES CLASS COUNTRY CITY €m sqm month % Galeria Poland Warsaw 254 65 20.1 92% Północna Galeria Poland Czestochowa 189 49 22.1 94% Jurajska Ci
Slide 33: Leading commercial real estate platform
LEADING COMMERCIAL REAL ESTATE PLATFORM As of 31 December 2020 WALT (by in-place rent) BY COUNTRY AVERAGE YIELDS BY COUNTRY 4.5 4.5 8.6% 8.5% 3.9 8.2% 7.9% 3.7 7.5% 7.7% 7.8% 7.6% 7.8% 6.2% 2.8 2.6 2.5 2.5 2.3 1.9 Poland Belgrade Budapest Bucharest Sofia Zagreb Poland Belgrade Sofia Zagreb Poland Be
Slide 34: Portfolio: income generating properties
PORTFOLIO: INCOME GENERATING PROPERTIES As of 31 December 2020 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 97 122 21 67 34 537 Book value (€m) 382 206 264 45 172 76 1,145 Average rent (€/sq m) 14.6 14.2 16.7 1
Slide 35: Unique development pipeline
UNIQUE DEVELOPMENT PIPELINE Unlocking significant embedded value through development projects As of 31 December 2020 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 36: 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 37: Useful information
USEFUL INFORMATION INVESTOR CONTACT FINANCIAL CALENDAR GTC consolidated quarterly report – Małgorzata Czaplicka 13 May 2021 1st quarter of 2021 Investor Relations Director T: +48 22 16 60 710 GTC consolidated semi-annual report - mczaplicka@gtc.com.pl 24 August 2021 1st half of 2021 GTC consolidated
Slide 38: 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 39: 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 40: 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 40