Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — H1 2023 Earnings Presentation
43 slides from Globalworth Real Estate Investments's earnings presentation, Oct 13, 2023
Slide 1: Globalworth: CEE's Leading Office Landlord - 2023 Interim Results Presentation
GLOBALWORTH CEE’S LEADING OFFICE LANDLORD 2023 Interim Results Presentation 0
Slide 2: Globalworth Overview
GLOBALWORTH OVERVIEW 1 Green Court Complex, Bucharest
Slide 3: Globalworth Snapshot
GLOBALWORTH SNAPSHOT Snapshot Portfolio Select Metrics Operating figures: ▪ Globalworth is a leading real estate Group with a ▪ Present in 13 of the largest and most liquid sub- primary focus on Poland and Romania, the two markets in Poland and Romania €3.1bn 72 largest markets in the CEE GAV Standi
Slide 4: Our Business Model
OUR BUSINESS MODEL Our Resources & Proven Investment Our Core Creating Sustainable Relationships Model Activities Long-term Value Skilled Team Financial Locations Invest in real estate opportunities In-house team of professionals with Generate long-term sustainable and strong functional and local kn
Slide 5: Focused on Operational Excellence & Sustainable Growth
FOCUSED ON OPERATIONAL EXCELLENCE & SUSTAINABLE GROWTH Strengthened Effectively Asset Preserved and/ Investment Our Position in and Property or Protected Flexible in Sustainable Resilient Core Markets Managing our Operational Capital Environment Operating of Operation Real Estate Efficiency Structur
Slide 6: Portfolio Evolution Since 2017
PORTFOLIO EVOLUTION SINCE 2017 Portfolio Value GLA Standing GLA Commercial Standing GLA Commercial Standing (€m) (‘000s sqm) (‘000s sqm) Occupied (000’s sqm) 3,500 1,600 1,600 1,400 3,000 1,400 1,400 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
Slide 7: Financial Performance Evolution Since 2017
FINANCIAL PERFORMANCE EVOLUTION SINCE 2017 Rental income (€m) Adjusted normalised EBITDA (€m) Dividend per share (€ cents) 180.0 160.0 70.0 160.0 140.0 60.0 160.5 141.6 60 140.0 151.5 150.3 149.8 120.0 129.0 130.2 50.0 137.6 119.0 126.0 54 120.0 100.0 100.0 40.0 44 80.0 80.0 30.0 34 80.5 60.0 60.0 6
Slide 8: 2023HY Operating Performance Update
2023HY OPERATING PERFORMANCE UPDATE 7 Globalworth Tower, Bucharest
Slide 9: Developments and Future Developments
DEVELOPMENTS AND FUTURE DEVELOPMENTS Projects delivered: Developments Overview Number of GAV GLA Est. Rent Capex Remaining Est. Yield on • Delivered Targu Mures Logistic Hub: Properties (€m) (K sqm) (100%) (€m) Invested (€m) Capex (€m) Cost (%) ‒ 18.3k sqm of GLA Romania ‒ 100.0% occupancy as of Jun
Slide 10: 2023 Deliveries: Tg. Mures Logistics Hub
2023 DELIVERIES: TG. MURES LOGISTICS HUB Targu Mures Logistics Hub (Targu Mures) ▪ Finalized in the first half of 2023 offering 18.3 sqm of GLA ▪ First facility delivered by Globalworth in Targu Mures, one of the major cities in Central Romania, having excellent infrastructure connectivity ▪ Develop
Slide 11: Developments Under Construction
DEVELOPMENTS UNDER CONSTRUCTION Business Park Stefanesti Business Park Stefanesti Total (phase II)(1) (phases III)(1) Status Under Construction Under Construction Type Industrial, Bucharest Industrial, Bucharest Est. GLA (k sqm) 5.9 7.4 13.3 Development Cost (€m) 4.2 5.2 9.4 Est. Rental Income (100%
Slide 12: Refurbishment / Repositioning: Renoma
REFURBISHMENT / REPOSITIONING: RENOMA ▪ Renoma is a landmark mixed-use property 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: ‒ increasing the offering of Class “A”
Slide 13: Refurbishment / Repositioning: Supersam
REFURBISHMENT / REPOSITIONING: SUPERSAM ▪ Supersam is a centrally located high-quality mixed-use property in Katowice. It opened in the 1930s, quickly becoming one of the most significant points on the commercial map of the city. It has been operating in its current format since the end of 2015, hos
Slide 14: Asset Management / Leasing Review
ASSET MANAGEMENT / LEASING REVIEW Best semester in leasing of office spaces with 140.3k of office spaces taken up or extended in the first half of the year ▪ Leasing transactions of 181.0k sqm taken up Leasing Activity by Type (k sqm) Leasing Activity by Country (k sqm) or extended during first seme
Slide 15: Asset Management / Sustainable Rental Income
ASSET MANAGEMENT / SUSTAINABLE RENTAL INCOME Total contracted rent up by 6.8% compared to Dec 2022 Commercial Rent: Commercial Rent: Total contracted rent of €202.2m Lease Expiration Profile (€m) Commencement Period (€m) ▪ +99% from commercial spaces ▪ 94.1% from active leases 53% Total commercial c
Slide 16: Standing Portfolio
STANDING PORTFOLIO Commercial standing occupancy adjusted for Warta Tower of 87.7% ▪ 42 investments with 72 standing properties offering 1.4m sqm GAV1 (€ m) GLA1 (k sqm) Contracted Rent1(€ m) 2,866 2,819 1,406 1,423 ▪ New addition: 193 182 ‒ Completed the development of Targu 542 542 Mures Logistics
Slide 17: Our Portfolio Snapshot
OUR PORTFOLIO SNAPSHOT 16
Slide 18: Portfolio Snapshot
PORTFOLIO SNAPSHOT Globalworth Poland(1) Globalworth Romania(1) Globalworth Group(1) th As of June 30 , 2023 Office & Others (O): 13 Office & Others (O): 32 Standing Investments(2) 19 23 42 Industrial (I): 10 Industrial (I): 10 O: €1,261m / €1,184m O: €2,794m / €2,545m GAV(3) / Standing GAV €1,533m
Slide 19: Class A Modern Portfolio in Prime CBD Locations and Select Industrial Hubs
GLOBALWORTH CLASS A MODERN PORTFOLIO IN PRIME CBD LOCATIONS AND SELECT INDUSTRIAL REGIONAL HUBS … Standing Portfolio as of June 2023: >€2.8bn with c. 1.4m sqm GLA in Poland and Standing Modern Portfolio as of 30 June 2023: Breakdown Romania and 85.8% Green Certified by Year of Last Refurbishment (€m
Slide 20: Leased to International Blue-Chip Tenants with Strong Defensive Leases
… LEASED TO INTERNATIONAL BLUE-CHIP TENANTS WITH STRONG DEFENSIVE LEASES Diversified base of tenants with 74.7% of contracted rent from multinationals and high dispersion with largest tenant being 5.1% of contracted rent ▪ Globalworth's multi-tenant / Romania Poland Group campus leasing model reduce
Slide 21: Best in Class & Mix-Use Portfolio in Poland
BEST IN CLASS & MIX-USE PORTFOLIO IN POLAND… Warsaw GAV €689.1m Standing Properties 14 Gdansk Standing GLA 210.9k sqm Standing Occupancy 75.5% Standing Contracted Rent: €41.4m Standing 100% Potential Rent €51.9m WARSAW Regional Poland 55.1% of our portfolio by value is in 5 regional cities in Poland
Slide 22: Best in Class & Industrial Portfolio in Romania
…AND BEST IN CLASS & INDUSTRIAL PORTFOLIO IN ROMANIA Bucharest GAV €1,285.3m 880.8k of high-quality standing space, and a further Standing Properties 22 781.2k sqm that can be Standing GLA 578.8k sqm developed in the future, in 7 cities Standing Occupancy 90.8% (91.1% incl. options) Standing Contrac
Slide 23: Capital Markets Performance
2022 CAPITAL MARKETS PERFORMANCE 22 Tryton Business House, Gdansk
Slide 24: Capital Markets: Equity Performance
CAPITAL MARKETS: EQUITY PERFORMANCE • The first half of 2023 was characterised by Shareholding Structure continued high inflation, rising interest rates and the continuation of the war in Ukraine, all of which we expect continue to impact in the near 31 December 2022 30 June 2023 and medium term the
Slide 25: Capital Markets: Bond Performance
CAPITAL MARKETS: BOND PERFORMANCE Purchased in June 2023 €100.0 million of the 2023HY Eurobond Perfomance 2025 Eurobond notes 18.0% 16.0% ▪ In June, considering market context, we have 14.0% launched a cash tender offer for our outstanding 12.0% notes due 2025 and 2026 and have accepted the 10.0% pu
Slide 26: Financial Results Presentation
FINANCIAL RESULTS PRESENTATION 25
Slide 27: Financial Highlights H1-2023
FINANCIAL HIGHLIGHTS H1-2023 Strong Gross Rental Income growth, on like-for-like basis, driven by 8.8% indexation rate applied to leases in 2023. Finance cost remained stable in H1-23 despite rise in average cost of debt thanked to our deleveraging strategy with fixed rate / hedged debt at 85%, same
Slide 28: Financial Highlights: Condensed Income Statement
FINANCIAL HIGHLIGHTS: CONDENSED INCOME STATEMENT Increase in NOI of €3.9m • Rental income increased by €5.3m • Gross rent saw a €5.1 m uptick (with Romania contributing €3.8 m and Poland €1.3m). This growth was primarily attributable to indexation and a reduction of €0.2m in expenses related 1 to am
Slide 29: Financial Highlights: Condensed Balance Sheet
FINANCIAL HIGHLIGHTS: CONDENSED BALANCE SHEET Investment Property: The total value of investment property decreased by €81.2m due to: • A fair value loss on investment property amounting to €97.9m, with €31.8m in 1 Romania and €66.1m in Poland • CAPEX Investment in properties under development and o
Slide 30: Financial Highlights: Condensed Cash Flow
FINANCIAL HIGHLIGHTS: CONDENSED CASH FLOW Interest Paid: The amount we paid in interest decreased by €4.7m in 2023 due to: 1 • There was a reduction of €8.5m in coupon payments, as a bond from FY17/22 was repaid. However, this was balanced by an additional interest payment of €3.9m for secured finan
Slide 31: EPRA NRV and Earning Metrics
EPRA NRV AND EARNING METRICS €m 2023 H1 2022 H1 1 Earnings Attributable to Equity Holders (IFRS) (25.1) 32.6 Adjustments per EPRA Guidelines: Fair Value movement on investment property 102.9 (7.0) Chg. in FV of financial instruments & resp. close-out costs (16.0) (0.3) Losses on disposal of investme
Slide 32: Financing Metrics H1-2023
FINANCING METRICS H1-2023 Key Balance Sheet Metrics Consolidated Loan to Value Ratio (figures in €m) 30 June 2023 31 Dec 2022 ■ 42.7% LTV Balance Sheet Debt (Face Value) 1,406 1,475 ■ 3.29% weighted average interest rate Less: Cash / Cash Equivalents (131) (164) ■ 67.4% of outstanding debt is unsecu
Slide 33: Sustainable Development Update
SUSTAINABLE DEVELOPMENT UPDATE 32 Globalworth Square, Bucharest
Slide 34: Sustainable Development Update: Green Buildings
SUSTAINABLE DEVELOPMENT UPDATE: GREEN BUILDINGS Green Buildings Green Status of Standing Portfolio (30 June 2023) (€ GAV) ▪ We certified or recertified 15 properties with BREEAM Very Good or higher certifications during first six months of the year; − In Romania 3 office properties maintained BREEAM
Slide 35: Sustainable Development Update: People
SUSTAINABLE DEVELOPMENT UPDATE: PEOPLE 2023 – Globalworth Foundation ▪ We view our role as increasingly responsible towards the people who 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 >1.4m sqm of high-quality
Slide 36: Sustainable Development Update: People (Cont'd)
SUSTAINABLE DEVELOPMENT UPDATE: PEOPLE (CONT’D) 2023 – Our Globalworth Community • Super Woman - where we offered to the astonishing women from our buildings a special gift: their own super-hero icon tote bags, based on their unique powers • Coffee Talks - since offices are more than simply physical
Slide 37: Sustainable Development Update: Reporting
SUSTAINABLE DEVELOPMENT UPDATE: REPORTING Annual Reporting Latest Publication ▪ The 5th Sustainable Development report, covering the year 2022 is available at: https://www.globalworth.com/sustainability/reports/ ▪ Annual reporting prepared in accordance with: ‒ This Report has been prepared in accor
Slide 38: Additional Operational, Investment & Portfolio Information
ADDITIONAL OPERATIONAL, INVESTMENT & PORTFOLIO INFORMATION 37
Slide 39: Combined Standing Portfolio Snapshot by Location and Type (Jun 2023)
COMBINED STANDING PORTFOLIO SNAPSHOT BY LOCATION AND TYPE (JUN 2023) 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) (€/sqm/m) (€
Slide 40: Strong Growth Potential from Development Pipeline
STRONG GROWTH POTENTIAL FROM DEVELOPMENT PIPELINE Future Developments Constanta Timisoara Globalworth Business Park Industrial Park The Luterana Globalworth has several developments Secured Projects Podium III Green Court D West (Other (I & II) Development to be developed in the future in phases, Ph
Slide 41: Portfolio Yield and Vacancy as of Jun. 2023
PORTFOLIO YIELD AND VACANCY AS OF JUN. 2023 100% Rent Yield Globalworth Vacancy Rate - Sqm Poland Romania Portfolio Romania Poland Portfolio €m €m €m Combined Property Portfolio 1,533.1 1,546.9 3,080.0 Available Standing Commercial GLA (k (A) 65.2 137.4 202.6 sqm) Less: Residential -- (40.9) (40.9)
Slide 42: 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 (“Globalworth” or the “Company”). The information contain
Slide 43: For more information, please see www.globalworth.com
For more information, please see www.globalworth.com 42
Globalworth Real Estate Investments — H1 2023 Earnings Presentation on 6ix