Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — FY2021 Earnings Presentation
44 slides from Globalworth Real Estate Investments's earnings presentation, Jun 20, 2022
Slide 1: Globalworth: CEE's Leading Office Landlord
Globalworth: CEE’s Leading Office Landlord 2021 Annual 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 Select Metrics primary focus on Poland and Romania, the two largest markets in the CEE • We acquire, develop and manage commercial real estate assets, primarily in the office sector €3.2bn 66 1,302.3k 88.5% 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) 3,500 1,400 1,400 1,400 3,000 1,200 1,200 1,200 2,500 1,000 1,000 1,000 2,000 800 800 800 1,500 600 600 600 1,000 400 400 400 500 200 200 200
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 Key Highlights
2021 Key Highlights Skylight & Lumen, Warsaw 5
Slide 7: Our Strategy in Motion During 2021
Our Strategy in Motion During 2021 Strengthened Our • Delivered our Globalworth Square office development in Bucharest with 29.2k 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 tot
Slide 8: Our Strategy in Motion During 2021 (cont'd)
Our Strategy in Motion During 2021 (cont’d) Preserved and/or • Office and industrial spaces, accounted for 91.4% of annualised contracted rent, which have remained largely unaffected by Protected measures taken by the authorities against COVID-19 Operational • Rate of collections for rents invoiced
Slide 9: Our Strategy in Motion During 2021 (cont'd)
Our Strategy in Motion During 2021 (cont’d) Defensive and • Net Operating Income of €144.3m for 2021, 8.3% lower compared to 2020 Growing Operating • Positive effect from initiatives including savings in recurring administrative and other expenses, marginally impacted our adjusted normalised EBITDA
Slide 10: Portfolio & Operational Performance
Portfolio & Operational Performance Renault Bucharest Connected 9
Slide 11: New Acquisitions and Developments
New Acquisitions and Developments New Acquisitions: 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 -
Slide 12: New Acquisitions - IPW Oradea
New Acquisitions - IPW Oradea Industrial Park West (“IPW”) 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 is
Slide 13: New Acquisitions - IPW Arad
New Acquisitions - IPW Arad Industrial Park West (“IPW”) 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: delivered
Slide 14: Developments Delivered: Globalworth Square
Developments Delivered : Globalworth Square Globalworth Key Features Square (Bucharest) Square Floor Plate 2.1k sqm floor plate allowing for the optimum shape according to the Status Standing BREEAM certification methodology. Type Class “A” Office Energy Efficient Façade Delivery June 2021 Designed
Slide 15: Development Projects Under Construction
Development Projects Under Construction Timisoara Industrial Chitila Logistics Hub Pitesti Industrial Park Constanta Business Park Total Park II B3 (Phase B and C)(1) (“PIP Caroli”) (Phase 2)(1) Status Under Construction Under Construction Under Construction Under Construction Industrial, Industrial
Slide 16: 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 17: 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 18: Asset Management / Leasing Review
Asset Management / Leasing Review • Highest volume in office leasing Key Metrics ‒ 214.5k sqm taken-up or extended, 30% Leasing Activity by Type (k sqm) higher vs 2020 Leasing Activity by Country (k sqm) ‒ Office leasing accounted of 75.2% of total 60.0% leasing activity vs 54.0% in 2020 New Leases:
Slide 19: 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) €183.7m ‒ +99% from commercial 43% 7.4 8.3 spaces 169.0 175.4 ‒ 96.0% from active leases • Total commercial 17% 11% contracted GLA: +1.2m s
Slide 20: Asset Management / Rent Collections
Asset Management / Rent Collections % Collection rate3 % of Portfolio by Comments: Contracted Rent1 Dec 2020 Dec 2021 GLA Space Type Office2 85%2 99% 99% • Office space showing stable level of collection rate. • Activity in industrial/logistic facilities is mainly Industrial 6% 100% 100% unaffected
Slide 21: Standing Portfolio
Standing Portfolio • New Additions: Key Metrics ‒ A Class “A” offices in Bucharest and two high- quality logistic facilities in Regional Romania Standing GAV1 (€ m) Standing GLA1 (k sqm) Contracted Rent1(€ m) with 56.1k sqm GLA 2,805 2,866 1,271 1,303 • Standing Portfolio: €2.9bn 179 175 ‒ +2.2% ove
Slide 22: Our Portfolio Snapshot
Our Portfolio Snapshot Podium Park, Krakow 21
Slide 23: Globalworth's Leading CEE Platform
Globalworth’s Leading CEE Platform Globalworth Poland(1) Globalworth Romania(1) Globalworth Group(1) As of 31 December 2021 Standing Investments(2) 19 20 39 GAV(3) / Standing GAV €1,613m / €1,447m €1,540m / €1,419m €3,152m / €2,866m 90.7% 88.5% Occupancy(4) 85.6% (91.0% including tenant options) (88
Slide 24: Class A Modern Portfolio in Prime CBD Locations and Select Industrial Regional Hubs
Class A Modern Portfolio in Prime CBD Locations and Select Industrial Regional Hubs Standing Portfolio: Standing Modern Portfolio: >€2.8bn standing portfolio of over 1.3m sqm GLA in Poland and Romania Breakdown by Year of Last Refurbishment (€m) Poland >10 Years <4 Years Regional Poland Warsaw 17.4%
Slide 25: 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 €715.6m Standing Properties 14 Standing GLA 210.9k sqm Standing Occupancy 77.3% Standing Contracted Rent: €37.6m Standing 100% Potential Rent €48.3m WARSAW Regiona
Slide 26: Best In Class Office & Industrial Portfolio in Romania
… and Best In Class Office & Industrial Portfolio in Romania 760k of high-quality standing Bucharest space, and a further 858k sqm GAV €1,318.0m that can be developed in the Standing Properties 20 future, in 6 cities Standing GLA 522.4k sqm Standing Occupancy 87.4% (87.8% incl. options) Oradea Stand
Slide 27: Sustainable Development Update
Sustainable Development Update Globalworth Square, Bucharest 26
Slide 28: Sustainable Development Update: (Green) Places
Sustainable Development Update: (Green) Places Green Buildings Other Initiatives • 38 properties were certified or recertified with BREEAM Very Good • 100% of the energy used in our Polish properties and our or higher certifications in 2021 Romanian office portfolio to be generated from renewable ‒
Slide 29: 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. • We own >1.3m sqm of high-quality real estate
Slide 30: 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 31: 2021 Capital Markets Performance
2021 Capital Markets Performance Renoma, Wroclaw 30
Slide 32: Capital Market Performance / Equity
Capital Market Performance / Equity • On 12 May 2021, CPI Property Group and Shareholding Structure Aroundtown formed a consortium (“CPI/AT Consortium”) and launched a cash offer, via 31 December 2020 31 December 2021 Zakiono Enterprises Limited, for the acquisition of the entire issued and to be is
Slide 33: Capital Market Performance / Eurobonds
Capital Market Performance / Eurobonds Simple capital structure, with 3 Eurobonds of Euro 1.3bn outstanding at Dec 2021 accounting for 78.0% of our total debt • €1.5bn EMTN program in place 2021 Eurobond Yield Performance ‒ €550m raised in 2018 (GWI 18/25 bond) 2.00 ‒ €400m raised in 2020 (GWI 20/26
Slide 34: 2021 Financial Results
2021 Financial Results Globalworth Campus, Bucharest 33
Slide 35: Financial Highlights FY2021
Financial Highlights FY2021 Modest decline in Portfolio Value1 Rental Income NOI rental income in 2021 despite €3.2bn €150.3m €144.3m continued impact 2020: €3.0bn vs 2020: -6.3% vs 2020: -8.2% from COVID-19 and stabilisation of EPRA NRV IFRS Earnings before tax Adj. Normalised EBITDA2 property port
Slide 36: Financial Highlights: Income Statement
Financial Highlights: Income Statement Condensed Income Statement Comments 1. Decrease in NOI of €10.2m is due to: • a €5.7m reduction in rental income from LfL standing properties; • a €2.3m reduction in rental income from the two mixed-use properties which are currently undergoing refurbishment; •
Slide 37: Financial Highlights: Balance Sheet
Financial Highlights: Balance Sheet Condensed Balance Sheet Comments 1. Investment property decreased by €47m mainly due to: transfer of five assets (€131m) to held for sale category, the acquisition of two standing industrial properties (€18m), CAPEX investments made on a property under development
Slide 38: EPRA NAV and Earnings Metrics
EPRA NAV and Earnings Metrics €m 2021 2020 IFRS to EPRA Earnings Bridge (€cents) Earnings Attributable to Equity Holders (IFRS) 47.5 (46.8) Adjustments per EPRA Guidelines: Fair Value movement on investment property 5.7 116.2 Chg. in FV of financial instruments & resp. close-out costs (0.64) (0.6) L
Slide 39: Financing Metrics
Financing Metrics ■ GWI 17/22 bond: €323.1m @ 2.875% coupon ■ 40.1% 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 ■ 77.9% debt via unsecured, public debt markets Instruments ■ Se
Slide 40: Other Supporting Material
Other Supporting Material Quattro Business Park, Krakow 39
Slide 41: Combined Standing Commercial Portfolio Snapshot
Combined Standing Commercial Portfolio Snapshot: (data as of 31 December 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 Industrial (#) (#) (€m) (k sqm) (%) Rent (€m) Years (€m) (€
Slide 42: 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.776.8k sqm of hig
Slide 43: 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 44: For more information, please see www.globalworth.com or contact ir@globalworth.com
For more information, please 43 see www.globalworth.com or contact ir@globalworth.com
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