Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — FY2020 Earnings Presentation
42 slides from Globalworth Real Estate Investments's earnings presentation, Apr 5, 2021
Slide 1: Globalworth: CEE's Leading Office Landlord – 2020 Annual Results Presentation
Globalworth: CEE’s Leading Office Landlord 2020 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 €3.0bn 64 1,271.3k 90.9% real estate assets, primarily in the office sector GAV Standing Propert
Slide 4: 5-Year Portfolio Evolution
5-Year Portfolio Evolution Portfolio Value GLA Standing GLA Commercial Standing GLA Commercial Standing Occupied (€m) (‘000s sqm) (‘000s sqm) (000’s sqm and %) 93% 95% 95% 3,500 1,400 1,400 1,200 91% 100% 83% 3,000 1,200 1,200 1,000 80% 2,500 1,000 1,000 800 2,000 800 800 60% 600 1,500 600 600 40% 4
Slide 5: 5-Year Financial Performance
5-Year Financial Performance Rental Income Adjusted Normalised EBITDA (€m) 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 10.0 20.0
Slide 6: 2020 Key Highlights
2020 Key Highlights Skylight & Lumen, Warsaw 5
Slide 7: 2020 Key Highlights
2020 Key Highlights Focus on safeguarding our business, protecting our assets and minimising our exposure to the impact of Covid-19 Covid-19 Pandemic Global Covid-19 pandemic outbreak in March 2020 impacting the way we live and operate & Impact in Poland • High number of confirmed cases, especially
Slide 8: 2020 Key Highlights (cont'd)
2020 Key Highlights (cont’d) Effective Asset & • Highest volume in leasing with 303.5k sqm of GLA signed and/or extended at an average WALL of 3.9yrs Property ‒ 74.3% of our leasing activity involving lease renewals with our existing tenants; Management ‒ New agreements signed with c.20% of our offi
Slide 9: 2020 Key Highlights (cont'd)
2020 Key Highlights (cont’d) Maintained an • Maintained investment grade rating by all three major rating agencies Efficient ‒ Moody’s affirmed Globalworth's Baa3 rating and changed its outlook to “negative” due to their change of outlook on Romania in April and Flexible ‒ Fitch and S&P affirmed Glo
Slide 10: Portfolio & Operational Performance
Portfolio & Operational Performance Renault Bucharest Connected 9
Slide 11: Asset Management / Leasing Review
Asset Management / Leasing Review • Record year in Leasing Key Metrics ‒ +303.5k sqm negotiated take-up (including Leasing Activity by Type (k sqm) Leasing Activity by Country (k sqm) expansions) or extension representing 25% of 3.4 yrs our standing commercial portfolio New Leases: 78.0k sqm 60.7% ‒
Slide 12: Asset Management / Occupancy
Asset Management / Occupancy • Standing Portfolio Occupancy Mainly Occupancy Evolution Impacted by Covid-19 95.0% 94.2% 91.7% ‒ Standing Occupancy of 90.9% (91.7% incl. (incl. tenant options) (incl. tenant options) (incl. tenant options) tenant options) at YE-20 down by c.4.0% 0.3% 0.9% 0.8% compare
Slide 13: 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) €183.4m ‒ +97% from commercial 4.7 4.7 spaces 3.2 0.3 0.3 174.9 178.7 ‒ 97.9% from active leases • Total commercial contracted GLA: +1.1m s
Slide 14: Asset Management / Rent Collections & Impact on NOI
Asset Management / Rent Collections & Impact on NOI % of Portfolio % Collection rate4 % of Portfolio by Contracted Comments: Affected by Now Rent1 2019 2020 Lockdown Operational2 GLA Space Type • Office areas are fully operational with Office 87%3 0% 100% 99% 99% activity level close to normal level
Slide 15: Developments
Developments • Projects Delivered in 2020: 95.8k sqm Developments Overview ‒ Class “A” Offices: Number Est. Rent Capex Globalworth Campus T3 in Bucharest GAV GLA Remaining Est. Yield on of (100%) Invested offering 33.6k sqm (BREEAM Excellent) (€m) (K sqm) Capex (€m) Cost (%) Properties (€m) (€m)
Slide 16: Developments: Completed in 2020
Developments: Completed in 2020 Globalworth Constanta Business Park Chitila Logistic Hub Podium Projects Campus T3 (Phase A) (Phase A) Park II Status Delivered in Jan 2020 Delivered in Jul 2020 Delivered in Sep 2020 Delivered in Sep 2020 Office, Industrial, Industrial, Office, Type Bucharest Constan
Slide 17: Developments: Under Construction
Developments: Under Construction Globalworth Secured Projects Square Status Under Construction Office, Type Bucharest Est. GLA (k sqm) 2021E Cost / Capex to YE-2020 (€m) 39.8 GAV (€m) 42.4 Est. Remaining Capex (€m) 17.5 Est. Rental Income (100%) 5.6 Est. Yield on Cost 9.8% Est. Yield on GAV + Capex
Slide 18: Refurbishment / Repositioning: Renoma
Refurbishment / Repositioning: Renoma • Renoma is a landmark mixed-use property Refurbishment / Repositioning Overview in 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 19: Standing Portfolio
Standing Portfolio • Standing Portfolio: €2.8bn Key Metrics ‒ Overall standing portfolio value remained effectively unchanged in H1-20 Standing GAV1 (€ m) Standing GLA1 (k sqm) Contracted Rent1(€ m) ‒ LfL value decreased by 2.6% mainly as a 2,845 2,805 1,214 1,271 result of widening yields and/or di
Slide 20: Our Portfolio Snapshot
Our Portfolio Snapshot Podium Park 19
Slide 21: Globalworth's Leading CEE Platform: YE2020
Globalworth’s Leading CEE Platform: YE2020 Globalworth Poland(1) Globalworth Romania(1) Globalworth Group(1) As of 31 Dec 2020 Standing Investments(2) 20 17 37 GAV(3) / Standing GAV €1,610m / €1,497m €1,423m / €1,308m €3,033m / €2,805m 92.0% 90.9% Occupancy(4) 89.4% (93.5% including tenant options)
Slide 22: Best In Class Office & Mix-Use Portfolio in Poland
Best In Class Office & Mix-Use Portfolio in Poland … 53.1% of our portfolio by value Warsaw is in 6 cities in Poland Gdansk GAV €711.3m Standing Properties 14 Standing GLA 210.9k sqm Standing Occupancy 85.6% Standing Contracted Rent: €42.4m Standing 100% Potential Rent €49.8m WARSAW Regional Poland
Slide 23: Best In Class Office & Industrial Portfolio in Romania
… and Best In Class Office & Industrial Portfolio in Romania 705k of high-quality standing space, and a further 884k sqm Bucharest that can be developed in the future, in 4 cities GAV €1,259.1m Standing Properties 19 Standing GLA 494.7k sqm Standing Occupancy 87.9% (89.9% incl. options) Standing Con
Slide 24: Sustainable Development Update
Sustainable Development Update 23
Slide 25: Sustainable Development Update: (Green) Places
Sustainable Development Update: (Green) Places Green Buildings Green Bond Framework • 10 environmentally certified properties added to our • Issued the Globalworth Green Bond Framework to portfolio in 2020 further demonstrate our commitment in sustainable ‒ Podium Park II: Our 2nd property to receiv
Slide 26: 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 >1.2m sqm of high-quality real estate
Slide 27: Sustainable Development Update: Technology
Sustainable Development Update: Technology Continued investing directly or indirectly in Selected Initiatives selected opportunities and initiatives Venture Capitals Venture Capitals Globalworth Square: Ice Storage • We participate in 2 venture capital funds ‒ Principally focused on real estate solu
Slide 28: Sustainable Development Update: Reporting
Sustainable Development Update: Reporting Annual Reporting Reporting • The 2nd Sustainable Development report, covering the year 2019 is available at: www.globalworth.com/sustainability ‒ The 3rd update to become available later in 2021 in line with reporting cycle • Annual reporting prepared in acc
Slide 29: 2020 Capital Markets Performance
2020 Capital Markets Performance Renoma 28
Slide 30: Capital Market Performance / Equity
Capital Market Performance / Equity • CPI Property Group became the largest 2020 Share Price Performance shareholder in Globalworth, holding 29.6% of the share capital 120.0% 120.0% • Share price performed well in the first 100.0% 100.0% part of 2020: 80.0% 80.0% ‒ trading at par or above EPRA NAV l
Slide 31: Capital Market Performance / Eurobonds
Capital Market Performance / Eurobonds Simple capital structure, with 3 Eurobonds of Euro 1.3bn outstanding at year-end accounting for 77.7% of our total debt • Our progress in 2020 2020 Eurobond Yield Performance ‒ H1-2020, €1.1bn in two Eurobonds maturing 5.0% in 2022 and 2025 4.5% ‒ In July, we i
Slide 32: 2020 Financial Results
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Slide 33: FY 2020 – Financial Highlights
FY 2020 – FINANCIAL HIGHLIGHTS • Globalworth Portfolio Value1 Rental Income NOI maintained its Operational €3.0bn €160.5m €157.3m profitability growth YE-2019: €3.0bn +5.9% +6.5% trend despite the global impact of EPRA Net Asset Value IFRS Earnings before tax Adj. Normalised EBITDA2 COVID-19 in 2020
Slide 34: Financial Highlights: Income Statement
Financial Highlights: Income Statement Condensed Income Statement Comments 1. The main drivers for the increase in rental income were: • +€8.2m recognised in 2020 Vs 2019 from standing properties acquired in Poland in 2019 • +€8.1m from properties fully consolidated or completed in Romania ‒ of whic
Slide 35: Financial Highlights: Balance Sheet
Financial Highlights: Balance Sheet Condensed Balance Sheet Comments €m 2020 2019 Variance % Chg 1. Net reduction of 1% in investment property mainly from: Investment property 1 3,013 3,049 (36) -1% • Loss on revaluation of portfolio of €116.2m; Investment in joint ventures 2 28 18 11 59% Equity inv
Slide 36: EPRA NAV and Earnings Metrics
EPRA NAV and Earnings Metrics €m 2020 2019 IFRS to EPRA Earnings Bridge (€m) Earnings Attributable to Equity Holders (IFRS) (46.8) 170.2 Adjustments per EPRA Guidelines: Fair Value movement on investment property 116.2 (117.7) Chg. in FV of financial instruments & resp. close-out costs (0.6) 0.5 Los
Slide 37: Financing Metrics
Financing Metrics ■ GWI 17/22 bond: €323.1m @ 2.875% coupon ■ 37.8% LTV ■ GWI 18/25 bond: €550m (EMTN) @ 3.000% coupon Key Balance Sheet ■ 2.73% weighted average interest rate Debt ■ GWI 20/265 bond: €400m (EMTN) @ 2.950% coupon Metrics ■ 77.7% debt via unsecured, public debt markets Instruments ■ S
Slide 38: Other Supporting Material
Other Supporting Material 37
Slide 39: 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.872.4k sqm of hig
Slide 40: Combined Standing Commercial Portfolio Snapshot
Combined Standing Commercial Portfolio Snapshot: (data as of 31 December 2020) 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 Logistics / L.I. (#) (#) (€m) (k sqm) (%) Rent (€m) Years (
Slide 41: 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 42: For more information, please see www.globalworth.com or contact ir@globalworth.com
For more information, please 41 see www.globalworth.com or contact ir@globalworth.com
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