Globe Trade Centre S.a. · GPW:GTC
Globe Trade Centre — Q1 2023 Earnings Presentation
31 slides from Globe Trade Centre's earnings presentation, May 25, 2023
Slide 1: Q1 2023 Results Investors' Presentation
Q1 2023 RESULTS Investors’ Presentation 25 May 2023
Slide 2: Contents
CONTENTS Key highlights Q1 2023 3 Portfolio 8 Development projects 10 Operations and financials 13 Additional materials 18 Q1 2023 RESULTS 24 May 2023 2
Slide 3: Financial Results
FINANCIAL RESULTS + Revenues from rental activity at €43m in Q1 2023 (€42m in Q1 2022) + Gross margin from rental activity at €30m in Q1 2023 (€30m in Q1 2022) + FFO I at €16m in Q1 2023 (€16m in Q1 2022), FFO per share at €0.03 + EPRA NTA at €1,276m as of 31 March 2023 (€1,273m as of 31 December 20
Slide 4: Distribution of Profits and Share Buy Back
DISTRIBUTION OF PROFITS AND SHARE BUY BACK + Management recommends to keep the profit for 2022 in the Company to finance capital expenditures and investments that may provide measurable benefits to the shareholders. In particular: cash preservation considering upcoming challenges, especially in th
Slide 5: Office: Strong Leasing Activity
OFFICE: STRONG LEASING ACTIVITY Green office portfolio with 85% of assets certified + Leasing activity reached 20,700 sq m in Q1 2023 (25,600 sq m in Q1 2022): • Nexi Croatia signed a lease in Matrix C, Zagreb (c. 5,000 sq m) • Prolongation of UPS lease in University Business Park, Lodz (c. 2,600 sq
Slide 6: Retail: Back to Pre-Covid Levels
RETAIL: BACK TO PRE-COVID LEVELS + Occupancy at 96% as of 31 March 2023 (96% as of 31 December 2022) + Positive trends in retail continue, footfall is growing, and turnover exceeded pre-Covid levels (112% in Q1 2023 vs 2019; 115% in Q1 2023 vs 2022 and 117% in April 2023 vs 2019; 104% in April 2023
Slide 7: Contents
CONTENTS Key highlights Q1 2023 3 Portfolio 8 Development projects 10 Operations and financials 13 Additional materials 18 Q1 2023 RESULTS 24 May 2023 7
Slide 8: High Quality Property Portfolio with Focus on Offices
HIGH QUALITY PROPERTY PORTFOLIO WITH FOCUS ON OFFICES + 89% of GAV base is recurring income-producing + 64% of recurring income-producing portfolio is office + Active development projects of 3% and land reserves account for almost 8% of total property portfolio + 92% in EU countries + 86% of assets
Slide 9: Contents
CONTENTS Key highlights Q1 2023 3 Portfolio 8 Development projects 10 Operations and financials 13 Additional materials 18 Q1 2023 RESULTS 24 May 2023 9
Slide 10: Development Projects
DEVELOPMENT PROJECTS 3% of portfolio in development projects and 8% of land reserve PROJECTS UNDER CONSTRUCTION OVERVIEW €59m €14m 3 61,200 GAV Expected annualized in- buildings¹ sq m GLA place rent UNDER CONSTRUCTION PROJECTS KEY PROJECTS UNDER CONSTRUCTION METRICS 31 March 2023 31 Dec 2022 Zagreb
Slide 11: Office Focused Development Pipeline
OFFICE FOCUSED DEVELOPMENT PIPELINE 61,200 sq m of class A offices under construction to be completed in 2023/25 with €14m expected rental income 10,500 sq m new office space Redevelopment of 14,700 sq m office Under LEED certification space Expected rental income Expected rental upon stab
Slide 12: Contents
CONTENTS Key highlights Q1 2023 3 Portfolio 8 Development projects 10 Operations and financials 13 Additional materials 18 Q1 2023 RESULTS 24 May 2023 12
Slide 13: Income Statement
INCOME STATEMENT (€m) Q1 2023 Q1 2022 Revenue from rental activity 43 42 COMMENTS Cost of rental operations (13) (12) 1 Q1 2023 BREAK DOWN OF OPERATING Gross margin from operations 1 30 30 MARGIN (BRIDGE) G&A expenses w/o share based provision (4) (4) 30.3 (2.7) (1.8) 2.4 29.6 1.4 Profit/(loss) from
Slide 14: Balance Sheet
BALANCE SHEET 31 December (€m) 31 March 2023 COMMENTS 2022 Investment property (excl. right of use) 2,214 2,205 Residential landbank (excl. right of use) 26 26 1 Result of sale of Forest Offices Debrecen (EUR 48m). Right of use 39 40 Assets held for sale 1 4 52 Mainly as a result of the disposal of
Slide 15: Q1 2023 - Strength of Debt Metrics
Q1 2023 - STRENGHT OF DEBT METRICS KEY CREDIT METRICS DEBT MATURITY (€m) 718 Loans to be recycled 215 Bonds Regular amortization 4.3y c. €1.24bn Weighted average debt maturity total debt (years) 500 199 139 43 63 78 52 140 128 31 55 57 21 11 8 3 16 5 16 For 12M 31 March'24 31 March'25 31 March'26 31
Slide 16: Cash Flow
CASH FLOW (€m) Q1 2023 Q1 2022 Operating activities COMMENTS Operating cash before working capital changes 24 26 Add / deduct: Change in working capital (4) (2) 1 Related mainly to investment in properties under Interest paid, net (5) (5) construction (Matrix C (Zagreb), Rose Hill Business Campus Ta
Slide 17: Contents
CONTENTS Key highlights 2022 3 Portfolio 8 Development projects 10 Operations and financials 13 Additional materials 18 Q1 2023 RESULTS 24 May 2023 17
Slide 18: Key Shareholder Information
KEY SHAREHOLDER INFORMATION BASIC SHARE INFORMATION SHAREHOLDER STRUCTURE Free Float Symbol GTC S.A. 17.06% GTC Holding Zártkörűen OFE PZU Złota Működő Részvénytársaság Share price (19/05/2023) PLN 5.9 Jesień ("GTC Holding Zrt") 9.48% 3.81% ISIN PLGTC0000037 Performance 12M 2% Allianz OFE 10.85% Pri
Slide 19: Leading Commercial Real Estate Platform
LEADING COMMERCIAL REAL ESTATE PLATFORM annualized ASSETS LOCATION BY GAV book value GLA GTC assets # % in-place rent (€m) (ths. sqm) (€m) Ireland³ 6% Income generating (a+b) 43 2,004 84% 141.4 737 Hungary 30% a) Office 37 1,284 54% 90.4¹ 533 TOTAL ASSETS GAV Capital cities b) Retail 6 720 30% 51.0²
Slide 20: Office Portfolio Overview
OFFICE PORTFOLIO OVERVIEW Sustainable high occupancy of prime office buildings provides solid recurring income OFFICE ASSETS OVERVIEW €1,284m €90m 37 533,000 7.0% GAV annualized in-place rent buildings sq m GLA Yield GREEN CERTIFICATION OCCUPANCY RATE LOCATION by GAV BREEAM Belgrade Zagreb 40% 92% 9
Slide 21: Retail Portfolio Overview
RETAIL PORTFOLIO OVERVIEW Landmark shopping centers in local markets RETAIL ASSETS OVERVIEW €720m €51m 6 204,000 7.1% GAV annualized in-place rent buildings sq m GLA Yield GREEN CERTIFICATION OCCUPANCY RATE LOCATION by GAV Budapest Zagreb Belgrade 3% 12% BREEAM 13% 29% 95% 94% 95% 96% 95% 95% 96% 96
Slide 22: Green Certification
GREEN CERTIFICATION Sustainability is our goal INCOME PRODUCING ASSETS (BOOK VALUE) BREEAM BREEAM 40% BREEAM 36% LEED 29% 59% 85% 88% 86% assets with green assets with green assets with green certification certification certification or in recertification or in recertification Under or in recertific
Slide 23: Portfolio: Income Generating Properties
PORTFOLIO: INCOME GENERATING PROPERTIES Poland Hungary¹ Belgrade Zagreb Bucharest Sofia Total¹ OFFICE PROJECTS¹ Number of buildings 16 11 1 1 4 4 37 Total GLA (ths. sq m) 196 198 18 7 62 52 533 Book value (€m) 357 585 50 15 164 113 1,284 Average rent (€/sq m) 14.6 18.4 18.3 16.6 19.8 16.0 16.9 Avera
Slide 24: 10 Largest Assets Constitute 59%
PORTFOLIO OVERVIEW High quality assets base in Poland, Hungary and capital cities of CEE Top properties Asset class Country City Book value GLA Rent € Occupancy €M ths. sq m /Sqm/ month % Galeria Północna Poland Warsaw 252 65 19.8 91% Galeria Jurajska Poland Czestochowa 190 49 23.8 98% City Gate Rom
Slide 25: Funds from Operations (FFO I)
FUNDS FROM OPERATIONS (FFO I) Robust acquisitions and developments drive FFO I FFO I (€m) 74 70 68 66 FFO I per share of €0.03 61 Robust operational performance 47 42 Significant development pipeline to further boost FFO I 38 28 Solid basis for sustainable and long term dividend policy 16 16
Slide 26: EPRA NTA
EPRA NTA EPRA NTA EPRA NTA per share (€m) €2.22 (PLN 10.40) €2.22 (PLN 10.39) 1,272 1,273 1,276 1,170 1,200 1,112 1,073 897 779 614 31 Dec 2022 31 March 2023 31 Dec'14 31 Dec'15 31 Dec'16 31 Dec'17 31 Dec'18 31 Dec'19 31 Dec'20 31 Dec'21 31 Dec'22 31 Mar'23 EPRA NTA bridge EPRA NTA growth momentum (
Slide 27: Debt and LTV
DEBT AND LTV 31 DECEMBER (€m) 31 MARCH 2023 2022 Adjusted for disposal of Forest Offices Debrecen Loans and bonds 1,244 1,238 Loans from minorities (2) (2) Deferred debt expenses 8 8 Bank loans and bonds 1,250 1,244 Cash & cash equivalents & deposits 172 189 Net debt 1,078 1,055 GTC X Investment pro
Slide 28: Useful Information
USEFUL INFORMATION INVESTOR CONTACT ESG Małgorzata Czaplicka Investor Relations Director T: +48 22 16 60 710 malgorzata.czaplicka@gtcgroup.com www.gtcgroup.com WWW Corporate section IR section Corporate governance ESG Q1 2023 RESULTS 24 May 2023 28
Slide 29: Definitions (1/2)
DEFINITIONS (1/2) 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
Slide 30: Definitions (2/2)
DEFINITIONS (2/2) ADJUSTED EBITDA consolidated profit/(loss) of the Group before taxes, depreciation, amortisation and impairments, non-controlling interest and share of profit/(loss) of joint ventures, excluding any fair value adjustments, the net result on sale of financial investments, financial
Slide 31: 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