Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — Investor Presentation (June 2019)
42 slides from Globalworth Real Estate Investments's investor presentation, Jun 26, 2019
Slide 1: Globalworth: CEE's Leading Office Landlord
Globalworth: CEE’s Leading Office Landlord Investor Presentation – June 2019
Slide 2: Disclaimer
Disclaimer This presentation is strictly confidential and is being furnished to you solely for your information. It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose. By attending this presentation and receiving this present
Slide 3: Company Overview
Company Overview Green Court Complex, Bucharest 3
Slide 4: Globalworth At A Glance
Globalworth At A Glance Hala Koszyki, Warsaw Overview Globalworth is the leading office landlord in the CEE region with a portfolio in excess of €2.7bn(1) in Romania and Poland – Formed in 2013 initially focused on Romania, where the Founder/CEO’s experience dates back to 2001, it has become the l
Slide 5: The Leading CEE Office Platform
The Leading CEE Office Platform As of 31 December 2018 Romania(1) Poland(1) Consolidated(1) proforma for YTD acquisitions Standing Investments(2) 14 21 35 GAV(3) / Standing GAV €1,245m / €1,164m €1,500m / €1,500m €2,745m / €2,664m 94.9% 95.0% Occupancy(4) 95.1% (97.0% including tenant options) (96.1
Slide 6: Globalworth's Journey So Far: Sustained Growth
Globalworth’s Journey So Far: Sustained Growth • Further acquisition pipeline 180 • 79k sqm GLA 3,000 GAV (€mm) 159 2,745 under Contracted rent (€mm) construction 2,462 2,500 116 • 227k sqm future development 2,000 1,815 pipeline 50 1,500 48 33 978 931 1,000 1 599 500 118 0 2013 2014 2015 2016 2017
Slide 7: Key Investment Highlights
Key Investment Highlights Skylight & Lumen, Warsaw 7
Slide 8: Why Globalworth?
Why Globalworth? 1 Focus on attractive and high growth CEE markets: Romania and Poland Unique office platform offering institutional quality and modern asset base 2 in prime locations Solid income play with growing Euro-denominated cash flows secured 3 by high-quality national and multinational tena
Slide 9: Poland & Romania: Strong Macro Conditions
1 Poland & Romania: Strong Macro Conditions Romania And Poland Are The Two Champions In CEE, Both In Terms Of Population And Growth Rates Romania And Poland Are The Largest Countries In CEE… …With A Consistently High GDP Growth, Above EU Average GDP growth3(%) Western Europe1 7.0 CEE2 5.1 4.8 4.3 Po
Slide 10: Poland & Romania: Attracting Multinationals
1 Poland & Romania: Attracting Multinationals • Business Services Sectors cover employment in shared service centres (SSC), IT centres, business process outsourcing (BPO) centres and R&D centres. • The number of companies in this space, and therefore employees and demand for office space, continues
Slide 11: Poland & Romania: Attractive Office RE Markets
1 Poland & Romania: Attractive Office RE Markets Ideal Timing To Have Exposure In CEE Markets Attractive Yields Prime office yields, 2018 Paris CBD London City Dublin, Stockholm Helsinki, Prague, Rome 7.3% St. Petersburg 6.9% Manchester, Stuttgart Brussels, Budapest, Dusseldorf, Rental growth Rents
Slide 12: Globalworth Has Assembled A Prime Portfolio
2 Globalworth Has Assembled A Prime Portfolio >€2.6bn(1) standing portfolio of over 1m sqm GLA split between Poland and Romania Globalworth Tower, Bucharest GW Campus T1 & 2, Bucharest TCI, Bucharest Tryton Business House, Gdansk Skylight & Lumen, Warsaw Quattro Business Park, Krakow GAV €179.0m GAV
Slide 13: High Quality Leases With Strong Defensive Features
3 High Quality Leases With Strong Defensive Features Stable and Predictable Cash Flows Long‐Term Leases 1 Expenses covered by tenants In line with our stated strategy, the average duration of new leases continues to be significantly higher than the market average of 5 years Tax 2018 leasing ac
Slide 14: High Quality Leases With Strong Defensive Features
3 High Quality Leases With Strong Defensive Features Romania Poland Combined Globalworth's multi‐tenant / campus leasing model reduces exposure to any particular 0.4% 2.8% 89.9% 2.4% 2.6% 0.2% tenant 7.3% 21.2% With over 650 tenants, the largest is 6.1% of 34.1% contracted rent roll, while the 1
Slide 15: Multiple Avenues to Growth
4 Multiple Avenues to Growth Asset Management Developments Acquisitions Opportunity to extract income and value Outstanding reputation for delivering Proven capabilities in acquiring, from assets product on time and on budget repositioning and developing high quality assets Reducing vacancy
Slide 16: Strong Additions to the Portfolio Completed YTD
4 Strong Additions to the Portfolio Completed YTD… Warsaw Trade Tower, Warsaw Rondo Business Park, Krakow On 3 April 2019, GPRE acquired WTT, one of On 22 March 2019, GPRE acquired Rondo Business Park in Krakow, for €37 the tallest office towers in Warsaw, for €132.9 million. Rondo sits adjacent
Slide 17: ….and Two More Acquisitions Under Agreement
4 ….and Two More Acquisitions Under Agreement Globalworth announced on 26 Apr 19, the conditional agreement for the acquisition of two further investments in Poland for a combined value of €113 million. It is expected to close this transaction by the end of July 2019, subject to the fulfilment of
Slide 18: Strong growth potential from development pipeline
4 Strong growth potential from development pipeline Proven Track Record at Development Delivery – c.250k sqm developed since 2015 c. 60% leased in H1‐19 67% leased in H1‐19 GL Chitila added in H1‐19 Global Logistics Global Logistics Global Logistics Global Logistics Secured Projects Globalworth Glob
Slide 19: Dedicated Internal Asset Management Expertise
5 Dedicated Internal Asset Management Expertise Key focus area Leading Property Investment Platform In CEE Opportunity to extract income and value from assets Team of over 200 dedicated and multi‐disciplinary professionals based in Poland and Romania Reducing vacancy with strong on‐the‐ground
Slide 20: People, Places and Technology
5 People, Places and Technology Creating Communities Investment in Technology • We create vibrancy and communities across • Investment in technology is becoming a focal part of our asset our assets. New initiatives include special management strategy events and LED illuminations, that promote our br
Slide 21: Capital Management
6 Capital Management ■ LTV of 43.9% (before Apr‐19 equity issuance) Extended Debt Maturity Profile (%) Key Balance Sheet ■ 2.9% weighted average interest rate Metrics 60% (Dec‐18) ■ 87% debt via unsecured, public debt markets 50% ■ 5.1 years average maturity of debt 40% ■ Long‐term LTV target of bel
Slide 22: Shareholders
6 Shareholders Shareholder Structure(1) Strong Support From Key Shareholders I.Papelekas (CEO) 12.7% Other (sub‐ Founder and CEO of Globalworth, Ioannis Papalekas, has invested substantially in the Company, 5%) 27.3% remains fully hands‐on and is committed to continue supporting it in the future.
Slide 23: FY 2018 Results: Financial & Operating Review
FY 2018 Results: Financial & Operating Review 23
Slide 24: 2018 Results – Significant Step Up Across Financial Metrics
2018 Results – Significant Step Up Across Financial Metrics Significant step‐up in operating metrics following expansion into Poland in late 2017, subsequent acquisitions and ongoing operational achievements Net Operating Income(2) (€m) Earnings per share ‐ IFRS / EPRA (cents) 70 60.7 EPRA EPS up
Slide 25: Financial Statements: P&L
Financial Statements: P&L Summarised IFRS Income Statement Comments 2018 2017 €m Audited Audited Variance % Chg Rental income: Rental Income 137.6 53.9 83.7 156% Rental income from Poland up €76m following FY consolidation of GPRE (less than 1 Net Operating Expenses (4.2) (2.8) (1.4) 50% month in
Slide 26: Financial Statements: Balance Sheet
Financial Statements: Balance Sheet Summarised IFRS Balance Sheet Comments Dec‐18 Dec‐17 €m Variance % Chg Audited Audited Investment Property: Includes c.€573.0 million of new acquisitions and Investment property 2,391 1,792 599 33% development projects as well as valuation gains of €34.1 million.
Slide 27: EPRA NAV and Earnings Metrics
EPRA NAV and Earnings Metrics EPRA Earnings EPRA Net Asset Value €m 2017 2018 €m Dec‐17 Dec‐18 Earnings Attributable to Equity Holders (IFRS) 24.4 80.3 Equity Attributable to Equity Holders (IFRS) 1,068.9 1,084.9 Adjustments per EPRA Guidelines: Fair Value gain on investment property (6.7) (34.1) Ad
Slide 28: 2018 – Investment Review
2018 – Investment Review Key Highlights ■ Very active 2018 with €538m of acquisitions, deploying proceeds from Dec‐17 capital raise and Mar‐18 bond issue Polish Standing Acquisitions Acq. Price GLA (k sqm) Initial Yield (1) 100% Occ Yield (1) Skylight & Lumen 190.0 45.4 6.1% 6.8% Quattro Business Pa
Slide 29: 2018 – Asset Management Review
2018 – Asset Management Review Key Highlights / Metrics High Portfolio Occupancy (31 Dec 18) ■ Ongoing high occupancy with 95.1% (31 Dec 17: 93.3%) at Group level (96.3% inc. tenant expansion options) 97.0% w/options 96.3% w/options ■ Like for like occupancy gain: +2.8% since 31 Dec 17 94.9% 95.4% 9
Slide 30: Further Portfolio Information & Selected Asset Profiles
Further Portfolio Information & Selected Asset Profiles 30
Slide 31: Portfolio Summary: Globalworth Romania
Portfolio Summary: Globalworth Romania GLA(2) Occupancy Contracted Rent WALL Potential rent at GAV 31 December 2018 Location Asset Type (ksqm) (%) (€m) (years) 100% occupancy(3) (€m) Globalworth Tower Bucharest New CBD Office 54.7 99.3% 11.5 7.3 11.7 179.0 BOC Bucharest New CBD Office 57.0 99.5% 10.
Slide 32: Portfolio Summary: Globalworth Poland
Portfolio Summary: Globalworth Poland GLA Occupancy Contracted Rent WALL Potential rent at 100% GAV 31 December 2018 Location Asset Type (ksqm) (%) (€m) (years) occupancy(1) (€m) Skylight & Lumen Warsaw Office 45.4 88.8% 11.5 3.7 13.0 191.2 Hala Koszyki Warsaw Mixed 22.2 96.9% 6.9 5.8 7.0 120.3 Spek
Slide 33: Globalworth Tower, Bucharest
Globalworth Tower, Bucharest Overview Property Photos Landmark class A multi‐tenanted office building located in the Northern part of Bucharest, delivered in 2016 2nd tallest office property in Bucharest with a height of 120m , extending over 26 floors above ground and 3 underground levels Locat
Slide 34: Globalworth Campus, Bucharest
Globalworth Campus, Bucharest Overview Property Photos • Phase “A”, delivered, comprises two (side) towers facing Dimitrie Pompeiu Street (main Excellent street) offering on completion a total GLA of c.57.2k sqm. The first tower was completed in Q3‐2017 and the second in Q2‐2018, extending over 12 f
Slide 35: BOC, Bucharest
BOC, Bucharest Overview Property Photos Excellent Modern class A multi‐tenanted office building located in the Northern part of Bucharest, delivered in 2009 Extends over 8 floors above ground and 3 underground levels and offers 895 parking spaces Location: Bucharest/New CBD Status: Standing Prop
Slide 36: TCI, Bucharest
TCI, Bucharest Overview Property Photos Landmark class A multi‐tenanted office building located in Bucharest’s historical CBD, at Victoriei Square, delivered in 2012. Currently the 3rd tallest office property in Bucharest at 106m Comprises of 2 interconnected buildings, extending over 26 floors
Slide 37: Green Court Complex, Bucharest
Green Court Complex, Bucharest Overview Property photos • Green Court is an award winning complex developed by Skanska in three phases, with the properties completed between 2014 and 2016 • Globalworth acquired the three class “A” offices in subsequent transactions in June 2015, December 2015 and Au
Slide 38: Skylight & Lumen, Warsaw
Skylight & Lumen, Warsaw Overview Property Photos Excellent ■ The largest property transaction to‐date by the Group was concluded in Q4‐18 with the acquisition of the two office buildings in Warsaw known as “Skylight” and “Lumen” from Unibail‐Rodamco‐Westfield, for a total consideration of €190m ■ T
Slide 39: Hala Koszyki, Warsaw
Hala Koszyki, Warsaw Overview Property Photos Very good Hala Koszyki is a landmark multi‐tenanted, mixed‐use revitalisation / development project in Warsaw, combining commercial and entertainment features with Class “A” office space. Its centrepiece is the former ‘Koszyki’ market hall, commonly
Slide 40: Spektrum Tower, Warsaw
Spektrum Tower, Warsaw Overview Property Photos Spektrum Tower is a high‐rise office building in the heart of the Warsaw’s Central Business District, offering 29.5k sqm of GLA and 318 parking spaces over 33 floors above ground and five underground levels. It was completed in 2003 and underwent e
Slide 41: Quattro Business Park, Krakow
Quattro Business Park, Krakow Overview Property Photos Quattro Business Park is a high‐quality office complex of five buildings located in the commercial hub in the northern part of Krakow, c.5.0km from the city centre and close to the city ring road and developing public transport system. Krako
Slide 42: For more information, please see www.globalworth.com or contact ir@globalworth.com
For more information, please 42 see www.globalworth.com or contact ir@globalworth.com
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