Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — Investor Presentation (November 2018)
41 slides from Globalworth Real Estate Investments's investor presentation, November 2018
Slide 1: Globalworth: Creating CEE's Leading Office Landlord
Globalworth: Creating CEE’s Leading Office Landlord Company Overview November 2018
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 It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose.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 2
Slide 4: Globalworth At A Glance
Globalworth At A Glance Overview Hala Koszyki, Warsaw • Globalworth is the leading office landlord in the CEE region with a portfolio of over €2 billion 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 leadi
Slide 5: Leading CEE Office Platform
Leading CEE Office Platform As at June 2018; proforma for Romania Poland(1) Consolidated(1) completed H2-18 acquisitions Standing Investments(2) 13 16 29 GAV(3) / Standing GAV €1,197m / €1,091m €1,034m / €1,034m €2,231m / €2,125m Occupancy(4) 92.9% (95.8% including tenant options) 96.9% 94.6% (96.3%
Slide 6: Globalworth's Journey So Far
Globalworth’s Journey So Far Key Achievements in Globalworth’s Journey since 2013 • Raised over c.€1bn of equity capital from a wide variety of international investors, including €340m in Dec-17 and €150m through Globalworth Poland in Jun-18. • Completed three milestone debt capital markets transact
Slide 7: Why Globalworth?
Why Globalworth? 1 Poland & Romania: Markets with Attractive Macro-Economic and Real Estate Fundamentals 6 2 Substantial Portfolio of Capital Discipline, Conservative High Quality Assets Financing and Access to Capital Assembled in Key Locations 5 3 Strong Cash Flow Profile: Multiple Avenues To Grow
Slide 8: 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 growth(3) (%) Western Europe1 Poland Romania EU CE
Slide 9: 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 10: Globalworth has Assembled a Prime Portfolio
2 Globalworth has Assembled a Prime Portfolio Globalworth Tower, Bucharest GW Campus T1 & 2, Bucharest TCI, Bucharest Tryton Business House, Gdansk Hala Koszyki, Warsaw Quattro Business Park, Krakow GAV €179.5m GAV €114.0m GAV €74.5m GAV €56.4m GAV €118.2m GAV €142.4m GLA (sqm) 54,686 GLA (sqm) 57,1
Slide 11: High Quality Leases With Strong Defensive Features
3 High Quality Leases With Strong Defensive Features Stable and Predictable Cash Flows Long-Term Leases In line with strategy, the average duration of new leases continues to be 1 Expenses covered by tenants significantly higher than the market average of 5 years Tax H1-18 leasing activity of
Slide 12: 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 7.8% 2.8% 89.3% 2.7% 3.6% 2.8%1.7% 77.2% Companies in the IT&C, BPO and SSC and financial sectors 63.0% 18.4% have been the main drivers of d
Slide 13: Dedicated Internal Management Expertise
4 Dedicated Internal Management Expertise Leading Property Investment Platform In CEE Core strategy • Attracting and retaining high quality tenants • Reacting to and serving tenants’ needs, as well as • Team of more than 170 dedicated and multi-disciplinary professionals Local presence remaining in
Slide 14: Co-Working; A New Globalworth Initiative
4 Co-Working; A New Globalworth Initiative • As part our proactive asset management, we seek to evolve our product with market demands, keeping pace with latest trends and technologies. • We have been increasingly excited by the opportunity around co- working and, more specifically, the community be
Slide 15: Multiple Avenues to Growth
5 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: Committed and Future Developments
5 Committed and Future Developments Proven Track Record at Development Delivery – 236k sqm completed since IPO Globalworth Square & Renault Bucharest GW Campus Luterana GW West TAP TAP Green Court D Secured Projects Connected(1) Tower III Land Plot Land Plot Extension Phase II Land Plots West Buchar
Slide 17: Solid Balance Sheet And Conservative Financial Policy
6 Solid Balance Sheet And Conservative Financial Policy • Long-term LTV target of around 35% Extending Debt Maturity Profile: Successful Bond Market Activities Financing Strategy • Largely unsecured debt structure 80% • Target diversification across debt maturities 60% 40% • Net LTV of 36% Key 20% B
Slide 18: Broadening Shareholder Base
6 Broadening Shareholder Base Shareholder Structure(1) Strong Support From Key Shareholders Growthpoint Founder and CEO of Globalworth (I. Papalekas) has invested substantially in the company, remains fully Other 27.5% Properties hands-on and is committed to continue supporting it in the future 29
Slide 19: H1-2018 Interim Results
Section 2 H1-2018 Interim Results “Globalworth has continued to demonstrate strong momentum in 2018, led by its strategic expansion into Poland. We are delighted with the acquisitions we have made, which include two of the five largest office transactions in the Polish market so far this year, and w
Slide 20: H1-2018 Interim Results – Key Metrics
H1-2018 Interim Results – Key Metrics Significant step-up in operating metrics following 2017 expansion and ongoing operational achievements Net Operating Income (€m) Earnings - IFRS / EPRA (€m) 60 50 49.8 EPRA Earnings up 51.7 135% NOI Increase 300% y-o-y y-o-y, following 28.4 30 40 24.8 Poland
Slide 21: H1-2018 – Investment Activity
H1-2018 – Investment Activity Key Highlights • Active H1-18, deploying proceeds from Dec-17 capital raise • Warta Tower – 33.7k sqm, €55m acquisition; 10.7% initial yield; 92% occupancy & 3.5 year WALL • Quattro Business Park – 60.2k sqm, €139m acquisition; 7.7% initial yield; 99% occupancy & 3 year
Slide 22: H1-2018 – Leasing Activity
H1-2018 – Leasing Activity Key Highlights/Metrics High Portfolio Occupancy (30 June 18) • Ongoing high occupancy with 94.6% (31 Dec 17: 93.3%) at Group level (96.4% inc. 98% tenant expansion options) 96.4% 96% w/options • Like for like occupancy gain: +2.1% since 31 Dec 17 94% 95.8% w/options 97.3%
Slide 23: H1-2018 Interim Results – Corporate
H1-2018 Interim Results – Corporate Key Highlights • Renaming of Polish subsidiary to Globalworth Poland, and positive collaboration across the business • Further strengthening of the teams in both Romania and Poland to support the ongoing expansion of the business, with combined headcount of over 1
Slide 24: Appendix
globalworth PY Appendix
Slide 25: H1-18 Financials
globalworth PY H1-18 Financials
Slide 26: Financial Statements: P&L
Financial Statements: P&L IFRS Income Statement EPRA Earnings H1-17 FY 2017 H1-18 H1-17 FY 2017 H1-18 Unaudited Audited Unaudited €m 6 mths 12 mths 6 mths €m 6 mths 12 mths 6 mths Revenue (inc. Service Charge Income(1)) 34.9 77.9 78.1 Earnings Attributable to Equity Holders (IFRS) (6.6) 24.4 49.8 Op
Slide 27: Financial Statements: Balance Sheet
Financial Statements: Balance Sheet Summarised IFRS Balance Sheet EPRA Net Asset Value Jun-17 Dec-17 Jun-18 €m Jun-17 Dec-17 Jun-18 €m Unaudited Audited Unaudited Investment property 1,048.1 1,792.4 2,088.5 Equity Attributable to Equity Holders (IFRS) 688.8 1,068.9 1,088.4 Goodwill 12.3 12.3 12.3 Ad
Slide 28: Further Portfolio Information & Selected Asset Profiles
Further Portfolio Information & Selected Asset Profiles 27
Slide 29: Portfolio Summary: Globalworth Romania
Portfolio Summary: Globalworth Romania GLA Valuation Contracted Rent Est. Rent at 100% Occupancy WALL 30 June 2018 Location Asset Type (sqm) (€m) (€m) Occupancy (€m) (%) (years) Globalworth Tower Bucharest New CBD Office 54,686 179.5 11.5 11.8 97.7% 7.2 BOC Bucharest New CBD Office 56,962 146.5 9.8
Slide 30: Portfolio Summary: Globalworth Poland
Portfolio Summary: Globalworth Poland GLA Valuation Contracted Rent(1) Est. Rent at 100% Occupancy(1) WALL 30 June 2018 Location Asset Type (sqm) (€m) (€m) Occupancy (€m) (%) (years) Quattro Business Park Krakow Office 60,235 142.4 10.7 10.8 99.0% 3.1 CB Lubicz Krakow Office 23,963 72.8 4.8 5.0 95.3
Slide 31: Geographically Spread in Core Locations
Geographically Spread in Core Locations Romania – Office Concentration in Bucharest, Logistics in Poland - Portfolio Spread Across Key Regional Cities Timisoara and Pitesti Gdansk Warsaw Timisoara Split of GAV by Location(1) Lodz Split of GAV by Location (1) Wroclaw Gdansk Pitesti Lodz Pitesti 5% Ka
Slide 32: Globalworth Romania - Standing Assets: Globalworth Tower
Globalworth Romania - Standing Assets Globalworth Tower 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
Slide 33: Globalworth Romania – Standing & Developments: Globalworth Campus
Globalworth Romania – Standing & Developments Globalworth Campus Overview Property Photos • Phase “A”, delivered, comprises two (side) towers facing Dimitrie Pompeiu Street (main Completed Tower 1 street) offering on completion a total GLA of c.57.2k sqm. The first tower was completed in Q3-2017 and
Slide 34: Globalworth Romania - Standing Assets: Green Court Complex
Globalworth Romania - Standing Assets Green Court Complex 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
Slide 35: Globalworth Poland – H2-18 Acquisition: Spektrum Tower
Globalworth Poland – H2-18 Acquisition Spektrum Tower 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.
Slide 36: Globalworth Poland – Targeted Acquisition: Skylight & Lumen
Globalworth Poland – H2-18 Tgt’d Acquisition Skylight & Lumen (prelim SPA signed in Oct-181) Overview Property Photos On 31 Oct 18, Globalworth announced it had signed a preliminary SPA1 with Unibail- Rodamco-Westfield (URW) for the acquisition of two high quality office towers in the heart of War
Slide 37: Globalworth Poland – Standing Assets: Quattro Business Park
Globalworth Poland – Standing Assets Quattro Business Park (H1-18 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 a
Slide 38: Globalworth Poland – Standing Assets: Warta Tower
Globalworth Poland – Standing Assets Warta Tower (H1-18 Addition) Overview Property Photos Very good Warta Tower is located in the extended West Central Business District of Warsaw with excellent access to multiple forms of public transport. Warta Tower was completed in 2000 and offers 33.7k sqm
Slide 39: Globalworth Poland – Standing Assets: Hala Koszyki
Globalworth Poland – Standing Assets Hala Koszyki Overview Property Photos Very good(3) “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 smalle
Slide 40: Globalworth Poland – Standing Assets: A4 Business Park
Globalworth Poland – Standing Assets A4 Business Park Overview Property Photos Very good(3) • The A4 Business Park is a modern, multi-tenanted class “A” office park in Francuska street in the southern part of Katowice • The park comprises three offices delivered between 2014 and 2016, which are all
Slide 41: For more information, please see www.globalworth.com
For more information, please 40 see www.globalworth.com or contact ir@globalworth.com
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