Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — Investor Presentation (April 2019)
44 slides from Globalworth Real Estate Investments's investor presentation, Apr 3, 2019
Slide 1: Globalworth: CEE's Leading Office Landlord
Globalworth: CEE’s Leading Office Landlord Investor Presentation – April 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 It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose.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
Section 1 Company Overview Globalworth Tower, Bucharest – first LEED Platinum Building in SEE; developed by Globalworth in 2016 3
Slide 4: Globalworth At A Glance
Globalworth At A Glance Hala Koszyki, Warsaw Overview Globalworth is the leading office landlord in the CEE(1) region with a portfolio of €2.5bn 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 leading off
Slide 5: The Largest CEE Office Platform
The Largest CEE Office Platform Romania(1) Poland(1) Consolidated(1) As of 31 December 2018 Standing Investments(2) 14 17 31 GAV(3) / Standing GAV €1,245m / €1,164m €1,217m / €1,217m €2,462m / €2,381m 94.9% 95.1% Occupancy(4) 95.4% (97.0% including tenant options) (96.3% including tenant options) WA
Slide 6: Globalworth's Journey So Far
Globalworth’s Journey So Far Key Achievements in Globalworth’s Journey since 2013 GAV (€mm) Contracted rent (€mm) • €280m acquisition pipeline under exclusivity • 79k sqm GLA under construction • 227k sqm future development pipeline 3,500 159 3,000 116 2,500 2,462 2,000 50 1,815 48 1,500 33 978 1,00
Slide 7: Key investment highlights
Section 2 Key investment highlights Warta Tower, Warsaw; acquired by Globalworth in March 2018 7
Slide 8: Key investment highlights
Key investment highlights 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 Strong income play with growing Euro-denominated cash flows 3 secured by high-quality national and multinat
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 €2.4bn 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 €12
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: Diversified High Profile Tenant Base
3 Diversified High Profile Tenant Base Romania Poland Combined Globalworth's multi-tenant / campus leasing model reduces exposure to any particular tenant 0.4% 2.8% 89.9% 2.4% 2.6% 0.2% Companies in the IT&C, BPO and SSC and financial sectors have been the main drivers of demand for space, with
Slide 15: 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 60% leased or under offer since 31 Dec 2018 Secured Projects TAP & TAP II GW Campus T3 GW Square TAP II (expansion) Luterana GCD GW West Status Under construction Under c
Slide 16: Already identified near term pipeline (under exclusivity)
4 Already identified near term pipeline (under exclusivity) Acquisition Pipeline under exclusivity (28 February 2019) Pipeline Location GLA (k sqm) Stabilised Rent (€m) Est. Investment Cost (€m) Class “A” office Warsaw 45 10.1 130 Completed Mar/Apr 19 Class “A” office Regional 18 3.3 37 Class “A” of
Slide 17: Strong Additions to the Portfolio Completed
4 Strong Additions to the Portfolio Completed 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 to G
Slide 18: 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 c.195 dedicated and multi-disciplinary professionals based in Poland and Romania Reducing vacancy with strong on-the-ground lea
Slide 19: Co-Working and Technology
5 Co-Working and Technology Investment in co-working Investment in Technology Initiatives • Co-working concept has become a major global trend in real estate • Investment in technology is becoming a focal part of our asset management strategy • In June 2018, Globalworth announced the following trans
Slide 20: Solid Balance Sheet And Conservative Financial Policy
6 Solid Balance Sheet And Conservative Financial Policy Extended Debt Maturity Profile (%) ■ Long-term LTV target of below 40% Financing Strategy ■ Largely unsecured debt structure 60% ■ Target diversification across debt maturities 50% 40% ■ LTV of 43.9% Key Balance Sheet ■ Weighted cost of debt of
Slide 21: Entry of a strong shareholder: Aroundtown (2019)
7 Entry of a strong shareholder: Aroundtown (2019) Acquired 11.8% stake in Globalworth in March 2019 Company overview Key metrics (Q3 2018) Commercial and residential real estate company established in 2004 Total Assets: Commercial property: Residential property: Focus on properties with value-a
Slide 22: FY 2018 Results: Financial & Operating Review
Section 3 FY 2018 Results: Financial & Operating Review Spektrum Tower, Warsaw – acquired July-2018 22 22
Slide 23: 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) 150 133.4 70 60.7 EP
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: Further Portfolio Information & Selected Asset Profiles
Further Portfolio Information & Selected Asset Profiles 29
Slide 30: 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 31: 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 WARTA Tower Warsaw Office 33.7 92.4% 5.9 2.5 6.5 63.1 Spekt
Slide 32: Skylight & Lumen, Warsaw (2018 Addition)
Skylight & Lumen, Warsaw (2018 Addition) 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 considerat
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 Completed Tower 1 Q3-2017 and the second in Q2-2018, e
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: 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 37: Quattro Business Park, Krakow (2018 Addition)
Quattro Business Park, Krakow (2018 Addition) 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
Slide 38: 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 three modern Class “A” office properties (and a smaller secondary office). Its centr
Slide 39: Spektrum Tower, Warsaw (2018 Addition)
Spektrum Tower, Warsaw (2018 Addition) Overview Property Photos Very good 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 complet
Slide 40: 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 41: Renault Bucharest Connected, Bucharest
Renault Bucharest Connected, Bucharest Overview Property Photos ■ The RBC project extends over 42.3k sqm and comprises of two distinct buildings ■ A Class “A” office building which in addition to the “standard” office areas, hosts an inhouse 350 seat conference center, a car showroom, meeting rooms
Slide 42: Select Globalworth Properties
Select Globalworth Properties Gara Herastrau/Green Court Complex, BOB, Bucharest Bucharest CB Lubicz, Krakow BOC, Bucharest Green Court Complex, Bucharest Green Horizon, Lodz 42
Slide 43: Select Globalworth Properties
Select Globalworth Properties Quattro Business Park, Krakow Renault Bucharest Connected, Bucharest City Office, Bucharest Globalworth Tower, Bucharest Skylight & Lumen, Warsaw Spektrum, Warsaw 43
Slide 44: For more information, please see www.globalworth.com
For more information, please 44 see www.globalworth.com or contact ir@globalworth.com
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