Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — Investor Presentation (October 2019)
46 slides from Globalworth Real Estate Investments's investor presentation, October 2019
Slide 1: Globalworth: CEE's Leading Office Landlord
Globalworth: CEE’s Leading Office Landlord Investor Presentation – October 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 It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose.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
Company Overview Green Court Complex, Bucharest 3
Slide 4: Globalworth At A Glance
Globalworth At A Glance Hala Koszyki, Warsaw Overview ▪ Globalworth is the leading office landlord in the CEE region with a portfolio of c.€2.9bn 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 offi
Slide 5: The Leading CEE Office Platform
The Leading CEE Office Platform As of 30 June 2019 Globalworth Romania(1) Globalworth Poland(1) Globalworth Group(1) Pro-forma on post H1 transactions Standing Investments(2) 15 21 36 GAV(3) / Standing GAV €1,328m / €1,197m €1,529m / €1,529m €2,858m / €2,726m 93.1% 94.2% Occupancy(4) 95.3% (94.8% in
Slide 6: Globalworth's Journey So Far: Sustained Growth
Globalworth’s Journey So Far: Sustained Growth • 62k sqm GLA under construction 184 • Significant future 3,500 GAV (€m) 159 development Contracted rent (€m) pipeline 3,000 2,858 116 • Further 2,462 acquisition 2,500 pipeline 2,000 50 1,815 48 1,500 33 931 978 1,000 1 599 500 118 0 2013 2014 2015 201
Slide 7: Key Investment Highlights
Key Investment Highlights Skylight & Lumen, Warsaw 7
Slide 8: Why Globalworth?
Why Globalworth? 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 Solid income play with growing Euro-denominated cash flows secured 3 by high-quality national and multinational tena
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 6.9 CEE2 4.9 5.1 4.1 4.
Slide 10: Poland & Romania: Attracting Multinationals
1 Poland & Romania: Attracting Multinationals ▪ Business Service Centres are a significant and expanding employment segment within the Polish and Romanian office markets. ▪ Business Services Sectors (BSS) cover employment in shared service centres/global business services (SSC); information technolo
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, H1 2019 Paris CBD London City Dublin, Stockholm Helsinki, Prague, Rome 7.3% St. Petersburg 6.9% Manchester, Stuttgart Brussels, Budapest, Dusseldorf, Rental growth Ren
Slide 12: Globalworth Has Assembled A Prime Portfolio
2 Globalworth Has Assembled A Prime Portfolio >€2.7bn(1) standing portfolio of over 1.1m 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 €181.6m G
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 ✓ ▪ H1 2019 leasing
Slide 14: High Quality Leases With Strong Defensive Features
3 High Quality Leases With Strong Defensive Features Romania Poland Combined ▪ Globalworth's multi-tenant / campus leasing model reduces exposure to any particular 7.4% 1.3% 2.1% 0.3% 1.8% 0.2% tenant 21.1% ▪ With almost 700 tenants, the largest is 5.7% of 32.8% contracted rent roll, while the 10 la
Slide 15: Multiple Avenues to Growth
4 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: Proven Acquisition Track Record & Future Pipeline
4 Proven Acquisition Track Record & Future Pipeline GLA Initial 100% Occ Strong Acquisition Track Record 2018 & 2019 Polish Acquisitions Acq. Price (sqm) Yield (1) Yield (1) ✓ Globalworth has demonstrated a strong investment track record of Skylight & Lumen H2-18 €190m 49k 6.1% 6.8% standing propert
Slide 17: Strong Growth Potential from Development Pipeline
4 Strong Growth Potential from Development Pipeline Proven Track Record at Development Delivery – c.260k sqm developed since 2015 56% leased in H1-19 Added in 2019 Chitila Logistics Constanta Chitila Logistics Constanta Timisoara Secured Projects Globalworth Globalworth Park Business Park Park Busin
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 over 200 dedicated and multi-disciplinary professionals based in Poland and Romania ✓ Reducing vacancy with strong on-the-ground
Slide 19: People, Places and Technology
5 People, Places and Technology Creating Communities Investment in Technology • We create vibrancy and communities across • As part of our belief that technology will be a major differentiator for our assets. New initiatives include special real estate, investment in technology is becoming a focal p
Slide 20: Capital Management
6 Capital Management ■ LTV of 36.5% Extended Debt Maturity Profile – Jun-19 (€m) Key Balance Sheet ■ 2.85% weighted average interest rate Metrics (Jun-19) ■ 81% debt via unsecured, public debt markets 700 ■ 4.9 years average maturity of debt 600 ■ Long-term LTV target of below 40% 500 ■ Largely unse
Slide 21: Shareholders
6 Shareholders Shareholder Structure(1) Strong Support From Key Shareholders I.Papalekas (CEO) 15.0% Other (sub- • Founder and CEO of Globalworth, Ioannis Papalekas, has invested substantially in the Company, 5%) 24.8% remains fully hands-on and is committed to continue supporting it in the future.
Slide 22: H1-19 Interim Results
H1-19 Interim Results 22
Slide 23: An Active First Half: Operational & Corporate Highlights
An Active First Half: Operational & Corporate Highlights ■ £283.1m in acquisitions of four properties in Poland €169.9m closed in H1; €113.2m in July-19 ■ €2,858m Combined Portfolio Value, up 16.1% since Dec-18 ■ €2,462m at Jun-19, up 11.5% ■ €184.1m of Annualised Contracted Rent Roll, up 15.4% sinc
Slide 24: H1-19 Financial Highlights
H1-19 Financial Highlights Rental Income / NOI Combined Portfolio Value(1) €71.8m / €68.0m €2.7bn +35.2% / +31.5% on H1-18 +11.5% on 31 Dec 18 Adj EBITDA(2) / Adj Normalised EBITDA(3) EPRA Net Asset Value / EPRA NAV per share €104.7m / €61.6m €1,754m / €9.05 per share +27.4% / +46.0% on H1-18 +46.2%
Slide 25: Financial Highlights: P&L
Financial Highlights: P&L Summarised Income Statement Comments Change in Rental income: €m H1-19 H1-18 Variance % Chg ▪ +33.8% rental income derived from properties acquired in Poland since 1 Jan 18. Rental Income 71.8 53.3 18.5 35% ▪ +5.1% increase in underlying rental income derived from standing
Slide 26: Financial Highlights: Balance Sheet
Financial Highlights: Balance Sheet Summarised Balance Sheet Comments €m Jun-19 Dec-18 Variance % Chg Growth in investment property primarily from acquisitions of WTT/Rondo, development Investment property - freehold 2,639 2,391 248 10% expenditure and revaluation gains Investment property - leaseho
Slide 27: EPRA NAV and Earnings Metrics
EPRA NAV and Earnings Metrics €m H1-19 H1-18(1) IFRS to EPRA Earnings Bridge Earnings Attributable to Equity Holders (IFRS) 69.9 49.8 Adjustments per EPRA Guidelines: Fair Value gain on investment property -49.7 -38.6 Chg. in FV of financial instruments & resp. close-out costs 0.9 0.6 Losses on disp
Slide 28: Financing Metrics
Financing Metrics ■ 36.5% LTV Key Balance Sheet ■ €550m 5 yr Eurobond in Jun-17 with 2.875% coupon ■ 2.85% weighted average interest rate Debt Metrics ■ €550m 7y EMTN issue in Mar-18 with 3.0% coupon ■ 81% debt via unsecured, public debt markets Instruments (Jun-19) ■ Selective use of secured financ
Slide 29: H1-19 – Investment Review
H1-19 – Investment Review Key Highlights ■ During H1-19, four attractively priced acquisitions in Poland were announced, with two completing in the period and two in July-19 Acq. Price GLA (k Implied Initial 100% Occ Standing Acquisitions (€m) sqm) €/psm Yield (1) Yield (1) Warsaw Trade Tower, Warsa
Slide 30: Strong Additions to the Portfolio Completed in H1
Strong Additions to the Portfolio Completed in H1 Warsaw Trade Tower, Warsaw Rondo Business Park, Krakow ▪ In April 2019, GPRE acquired WTT, one of the ▪ On 22 March 2019, GPRE acquired Rondo Business Park in Krakow, for €37 tallest office towers in Warsaw, for €132.9 million. Rondo sits adjacent to
Slide 31: Two More Acquisitions in H2
Two More Acquisitions in H2 • Globalworth announced in April 2019, the conditional agreement for the acquisition of two further investments in Poland for a combined value of €113.2 million. The transaction closed on 19 July 2019. • Consistent with its acquisition strategy, these acquisitions will fu
Slide 32: H1 2019 – Asset Management Review
H1 2019 – Asset Management Review Key Highlights / Metrics at 30 Jun 19 Maintaining High Portfolio Occupancy ■ 93.9% occupancy at Group level (94.8% inc. tenant options), with Poland at 95.4% 96.3% 94.8% 94.9% and Romania at 93.1% (94.8% inc. tenant options), comparing to 95.1% w/options w/options w
Slide 33: Further Portfolio Information & Selected Asset Profiles
Further Portfolio Information & Selected Asset Profiles 33
Slide 34: Portfolio Summary: Globalworth Poland
Portfolio Summary: Globalworth Poland GLA Occupancy Contracted Rent WALL Potential rent at 100% GAV 30 June 2019 Location Asset Type (ksqm) (%) (€m) (years) occupancy(1) (€m) Skylight & Lumen Warsaw Office 49.2 90.5% 11.8 3.7 13.1 204.9 WARTA Tower Warsaw Office 33.7 93.7% 6.2 2.2 6.8 62.8 Spektrum
Slide 35: Portfolio Summary: Globalworth Romania
Portfolio Summary: Globalworth Romania GLA(2) Occupancy Contracted Rent WALL Potential rent at GAV 30 June 2019 Location Asset Type (ksqm) (%) (€m) (years) 100% occupancy(3) (€m) Globalworth Tower Bucharest New CBD Office 54.7 100.0% 11.9 6.8 12.0 181.6 BOC Bucharest New CBD Office 57.0 99.7% 10.2 3
Slide 36: 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 37: 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 Q3-2017 and the second in Q2-2018, extending over 12 f
Slide 38: 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, located adjacent to other Globalworth assets; Globalworth Campus, BOB and Upground. ▪ Extends over 8 floors above ground and 3 underground l
Slide 39: 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 40: 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 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: Skylight & Lumen, Warsaw
Skylight & Lumen, Warsaw 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 consideration of €190m ■ T
Slide 43: 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 Class “A” office space. ▪ Its centrepiece is the former ‘Koszyki’ market hall, commonly
Slide 44: Spektrum Tower, Warsaw
Spektrum Tower, Warsaw Overview Property Photos ▪ Spektrum Tower is a high-rise office building in the heart of the Warsaw’s Central Business District, offering 32.1k sqm of GLA and 318 parking spaces over 33 floors above ground and five underground levels. ▪ It was completed in 2003 and underwent e
Slide 45: Quattro Business Park, Krakow
Quattro Business Park, Krakow 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 system. ▪ Krako
Slide 46: For more information, please see www.globalworth.com or contact ir@globalworth.com
For more information, please 46 see www.globalworth.com or contact ir@globalworth.com
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