Globe Trade Centre S.a. · GPW:GTC
Globe Trade Centre — 9M 2021 Earnings Presentation
35 slides from Globe Trade Centre's earnings presentation, 2021
Slide 1: Q3&9M 2021 Results Investors Presentation
Q3&9M 2021 RESULTS INVESTORS PRESENTATION 1
Slide 2: Contents
CONTENTS KEY HIGHLIGHTS Q3&9M 2021 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 2 | Q3&9M 2021 RESULTS |
Slide 3: Financial Results: Acquisitions Driven Growth
FINANCIAL RESULTS: ACQUISITIONS DRIVEN GROWTH Gross margin from rental activity at €93m in 9M 2021 (€91m in 9M 2020) Adjusted EBITDA at €83m in 9M 2021 (€82m in 9M 2020) FFO at €52¹m in 9M 2021 (€54m in 9M 2020), FFO per share at €0.11 EPRA NAV at €1,149m as of 30 September 2021, EPRA NAV pe
Slide 4: Office Sector: A Mix of Acquisitions and Disposals Combined with Stronger Leasing
OFFICE SECTOR: A MIX OF ACQUISITIONS AND DISPOSALS COMBINED WITH STRONGER LEASING ACTIVITY €310m invested in 5 office buildings and one mix-use project in Hungary will contribute €19.2m p.a. to our in-place rent Disposal of Serbian office buildings for €268m (above the book value) to be closed i
Slide 5: Retail Sector: Currently 100% of Space Operational
RETAIL SECTOR: CURRENTLY 100% OF SPACE OPERATIONAL, HOWEVER COVID-19 IMPACT STILL VISIBLE IN 9M 2021 Currently, 100% of our retail GLA is allowed to trade Occupancy at 95% as at 30 September 2021 (95% as at 31 December 2020) Retailers continue to expand: − 2,152 sq m HalfPrice in Galeria Juraj
Slide 6: Retail: Strong Rebound Post Each Lockdowns with High Conversion Rate
RETAIL: STRONG REBOUND POST EACH LOCKDOWNS WITH HIGH CONVERSION RATE GROUP FOOTFAL AND TURNOVER CHANGE (2021/2020 vs. 2019) FOOTFALL TURNOVER Last lockdown 103% 104% Next lockdowns 101% 46% GLA 31% GLA 97% 95% operational operational 92% 80% 75% 77% 72% 72% 66% 64% 66% 53% 55% 48% 50% 40% 34% 35% 34
Slide 7: Contents
CONTENTS KEY HIGHLIGHTS Q3&9M 2021 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 7 | Q3&9M 2021 RESULTS |
Slide 8: High Quality Property Portfolio with Focus on Offices
HIGH QUALITY PROPERTY PORTFOLIO WITH FOCUS ON OFFICES As of 30 September 2021 TOTAL PORTFOLIO (BOOK VALUE) 89% of GAV base is recurring income-producing 67% of recurring income-producing portfolio is Project under construction Belgrade 4% €373m Hungary 15% office Projects in pipeline €689m Sofia
Slide 9: Contents
CONTENTS KEY HIGHLIGHTS Q3&9M 2021 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 9 | Q3&9M 2021 RESULTS |
Slide 10: Office Focused Development Pipeline
OFFICE FOCUSED DEVELOPMENT PIPELINE 54,100 sq m of class A offices under construction to be completed by end of 2022 with €11m expected rental income GTC X PILLAR Q3 2022 16,800 sq m Q4 2021 29,000 sq m 29,000 sq m Class A office space 16,800 sq m Class A office space Secured construction loan
Slide 11: Office Focused Development Pipeline
OFFICE FOCUSED DEVELOPMENT PIPELINE 94,400 sq m of class A offices ready to be launched in 24 months CENTER POINT 3, Budapest 36,000 sq m TWINS, Budapest 38,500 sq m MATRIX C, Zagreb 10,700 sq m ABC 3, Sofia 9,200 sq m Source: GTC 11 | Q3&9M 2021 RESULTS |
Slide 12: Contents
CONTENTS KEY HIGHLIGHTS Q3&9M 2021 PORTFOLIO DEVELOPMENT PROJECTS OPERATIONS AND FINANCIALS ADDITIONAL MATERIALS 12 | Q3&9M 2021 RESULTS |
Slide 13: 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) 9M 2021 9M 2020 MARGIN (BRIDGE) Revenue from rental activity 124 122 91 (3) 7 (1) (1) 93 Cost of rental operations (32) (31) Gross margin from operat
Slide 14: Balance Sheet
BALANCE SHEET (€m) 30 Sep 2021 31 Dec 2020 COMMENTS Investment property (excl. right of use) 1 2,182 2,082 Mainly due to an investment (€375m) 1 Residential landbank (excl. right of use) 25 9 mostly into acquisitions and development partially offset by reclassification of Serbian Right of use 39 44
Slide 15: 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 September 2021 KEY CREDIT METRICS DEBT MATURITY 762 €m Post the disposal of Serbian assets and 260 planned capital increase LTV ratio c. €1.4bn 52.8% will improve Total debt Net LTV significan
Slide 16: Cash Flow Statement
CASH FLOW STATEMENT As of 30 September 2021 COMMENTS (€m) 9M 2021 9M 2020 Operating activities Operating cash before working capital changes 83 82 Mainly due one-off costs related 1 Add / deduct: to early repayments of loans Change in working capital 1 (1) (€5m). Interest paid, net 1 (27) (23) Tax (
Slide 17: Additional Materials
ADDITIONAL MATERIALS 17 | Q3&9M 2021 RESULTS |
Slide 18: Key Shareholder Information
KEY SHAREHOLDER INFORMATION BASIC SHARE INFORMATION (as of 30 September 2021) SHAREHOLDER STRUCTURE Symbol GTC S.A. GTC Holding Zártkörűen Működő Free Float Részvénytársasá 4.51% Share price PLN 7.20 17.58% ISIN PLGTC0000037 Aviva OFE Aviva Performance 12M 18% Santander 7.77% Primary exchange Warsaw
Slide 19: Leading Commercial Real Estate Platform
LEADING COMMERCIAL REAL ESTATE PLATFORM As of 30 September 2021 BOOK ANNUALISED GTC PORTFOLIO GLA # VALUE % IN-PLACE (ths. sqm) ASSETS LOCATION BY GAV (€m) RENT (€m) Income generating 54 2,201 89% 155.6 854 Poland (a+b) 35% Assets for own use <1% a) Office (incl. AHFS) 48 1,479.3 60% 108.21 649 GAV
Slide 20: Portfolio: Income Generating Properties
PORTFOLIO: INCOME GENERATING PROPERTIES As of 30 September 2021 POLAND HUNGARY BELGRADE ZAGREB BUCHAREST SOFIA TOTAL OFFICE PROJECTS Number of building 16 10* 11** 3 5 3 48 Total GLA (ths. sq m) 196 192 122 28 67 44 649 Book value (€m) 381 502 267 61 172 96 1,479 Average rent (€/sq m) 14.6 15.0 16.8
Slide 21: Property Overview
PROPERTY OVERVIEW High quality assets base in Poland and capital cities of CEE As of 30 September 2021 BOOK GLA RENT TOP ASSET VALUE ths. €/sqm/ OCCUPANCY PROPERTIES CLASS COUNTRY CITY €m sqm month % Galeria Północna Poland Warsaw 254 65 20.0 92% Galeria Poland Czestochowa 189 49 21.3 97% Jurajska C
Slide 22: Office Portfolio Overview
OFFICE PORTFOLIO OVERVIEW Sustainable high occupancy of prime office buildings provides solid recurring income As of 30 September 2021 OFFICE ASSETS OVERVIEW €1,479m €108m 48 649,000 GAV annualized buildings sq m GLA in-place rent GREEN CERTIFICATION OCCUPANCY RATE LOCATION 5% by GAV 12% Warsaw 92%
Slide 23: Retail Portfolio Overview
RETAIL PORTFOLIO OVERVIEW Landmark shopping centers in local markets As of 30 September 2021 RETAIL ASSETS OVERVIEW €721m €47m 6 205,000 GAV annualized buildings sq m GLA in-place rent GREEN CERTIFICATION OCCUPANCY RATE LOCATION 15% by GAV 95% 94% 95% 96% 95% 95% Budapest 90% 89% Belgrade 3% Zagreb
Slide 24: 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 September 2021 87% of GAV base is recurring income-producing TOTAL PORTFOLIO (BOOK VALUE) 63% of recurring income-producing portfolio is Hungary Project under construction €689m office 5% 3
Slide 25: 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 Sep 31 Dec Belgrade 2021 2020 €15m Office 14% Gross asset value (€M) 110 63 100% Lettable area (ths. sqm) 54 37 GAV GAV €110m Budapest €11
Slide 26: Unique Development Pipeline
UNIQUE DEVELOPMENT PIPELINE Unlocking significant embedded value through development projects As of 30 September 2021 TOTAL EXPECTED REVALUATIO EXPECTED INVESTMENT INVESTMENT IN-PLACE N GAIN BOOK DEVELOPMENT TOTAL GLA COST COST RENT RECOGNIZED VALUE YIELD EXPECTED CITY (ths. sq m) (€m) (1) (€m) 1 (€
Slide 27: Funds from Operations (FFO I)
FUNDS FROM OPERATIONS (FFO I) Robust acquisitions and developments drive FFO I As of 30 September 2021 FFO I €m 70 66 FFO I per share of €0.11 61 54 52 ¹ Robust operational performance despite impact of 47 COVID-19 42 38 Significant development pipeline to further boost 28 FFO I Solid basis
Slide 28: NAV
NAV EPRA NAV growth As of 30 September 2021 EPRA NAV EPRA NAV per share €m € +87% 1,200 2.29 (PLN 10.57) 2.37 (PLN 10.96) 1,170 1,149 1,112 1,073 897 779 614 31 Dec 2020 30 Sep 2021 31 Dec'14 31 Dec'15 31 Dec'16 31 Dec'17 31 Dec'18 31 Dec'19 31 Dec'20 30 Sep'21 EPRA NAV bridge NAV EPRA growth moment
Slide 29: Debt and LTV
DEBT AND LTV (€m) 30 SEPTEMBER 2021 31 DECEMBER 2020 Loans and bonds (incl. LHFS) 1,441 1,261 Loans from minorities (9) (9) Deferred debt expense 11 7 Bank loans and bonds 1,443 1,259 Cash & cash equivalents & deposits 131 310 Net debt 1,312 949 Investment property, assets held for sale 2,521 2,137
Slide 30: Useful Information
USEFUL INFORMATION INVESTOR CONTACT ESG REPORT Małgorzata Czaplicka Investor Relations Director T: +48 22 16 60 710 mczaplicka@gtc.com.pl USEFUL LINKS Corporate website IR website Corporate governance 9M 2021 report 30 | Q3&9M 2021 RESULTS |
Slide 31: Definitions
DEFINITIONS AVERAGE YIELD calculated as in-place rent divided by fair value of asset 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 ex
Slide 32: 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
Slide 33: 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
Slide 34: 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 35: 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 35