Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — H1 2022 Earnings Presentation
44 slides from Globalworth Real Estate Investments's earnings presentation, 2022
Slide 1: Globalworth: CEE's Leading Office Landlord
Globalworth: CEE’s Leading Office Landlord Company Update: H1 - 2022
Slide 2: Globalworth Snapshot
Globalworth Snapshot 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 real 71 1,366.5k 88.1% estate assets, primarily in the office sector €3.2bn GAV Standing Propert
Slide 4: Globalworth Snapshot (cont'd)
Globalworth Snapshot (cont’d) • Best in class portfolio located in the strongest economies of the CEE: Presence in 13 of the largest and most liquid submarkets in Poland and Romania, mainly comprising of environmentally friendly and modern office & logistics properties − €2.7bn representing 92.8% of
Slide 5: Globalworth's Leading CEE Platform
Globalworth’s Leading CEE Platform Globalworth Poland(1) Globalworth Romania(1) Globalworth Group(1) As of 30 June 2022 Standing Investments(2) 19 21 40 GAV(3) / Standing GAV €1,628m / €1,459m €1,578m / €1,470m €3,206m / €2,929m 90.9% 88.1% Occupancy 84.0%% (91.3% including tenant options) (88.4% in
Slide 6: 2022 Portfolio & Operational Performance
2022 Portfolio & Operational Performance (1 Jan. – 30 Jun.) Skylight & Lumen, Warsaw 5
Slide 7: Our Strategy in Motion During H1 2022
Our Strategy in Motion During H1 2022 Strengthened Our • Developments focused on high-quality logistic / light-industrial facilities in Romania (56.0k sqm) and the refurbishment / repositioning of two Position in Our mixed-use properties in Poland aiming at increasing their class “A” office space an
Slide 8: Our Strategy in Motion During H1 2022 (cont'd)
Our Strategy in Motion During H1 2022 (cont’d) Efficient • Maintained investment grade rating by all three major rating agencies and Flexible • Benefit from the support of the existing shareholders in order to preserve our Investment Grade rating Capital structure • High liquidity of €184.7 million
Slide 9: Asset Management / Leasing Review
Asset Management / Leasing Review • Leasing transactions of 106.1k sqm taken up or Key Metrics extended during first semester ‒ 61.4% of leasing involving new leases and Leasing Activity by Type (k sqm) Leasing Activity by Country (k sqm) expansions New Leases: 65.2k sqm 65.1% ‒ Average WALL of 5.0
Slide 10: 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) €188.4m ‒ +99% from commercial spaces 0.8 0.9 49% 5.9 6.7 ‒ 95.9% from active leases 6.2 37% • Total commercial contracted 180.8 GLA: +1.2m
Slide 11: New Acquisitions and Developments
New Acquisitions and Developments New Acquisitions: New Additions • Acquired a 75% stake in our first small business Standing Properties Valuation of GLA Initial 100% Occ. Yield units (“SBU”) logistic facility in Bucharest Greater City Acquired (€m) (K sqm) Yield (%) (%) Area (7.1k sqm of GLA) at a
Slide 12: Standing Portfolio
Standing Portfolio • 40 investments with 71 standing properties Key Metrics offering 1.4m sqm Standing GAV1 (€ m) Standing GLA1 (k sqm) Contracted Rent1(€ m) • New Additions: 1,302 1,366 2,866 2,929 175 182 ‒ Completed the development of four high- quality logistic facilities, adding 61.7k sqm of 54
Slide 13: Sustainable Development Update
Sustainable Development Update Globalworth Square, Bucharest 12
Slide 14: Sustainable Development Update: Green Buildings
Sustainable Development Update: Green Buildings Green Buildings Green Status of Standing Portfolio (30 June 22) (€ GAV) • 23 properties were certified or recertified with BREEAM Very Good or higher certifications in H1 2022 BREEAM – 80% LEED – 18% EDGE – 1% ‒ 3 properties in Romania green certified
Slide 15: Sustainable Development Update: People
Sustainable Development Update: People H1 2022 – Globalworth Foundation • 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 >1.3m sqm of high-qua
Slide 16: Sustainable Development Update: People (cont'd)
Sustainable Development Update: People (cont’d) H1 2022 – Our Globalworth Community • Focused on activities that are targeted and can make a real difference • We supported the Ukraine war humanitarian relief efforts, by offering 12,000 square meters of its portfolio in Romania and Poland under the S
Slide 17: Sustainable Development Update: Reporting
Sustainable Development Update: Reporting Annual Reporting Latest Publication • The 4th Sustainable Development report, covering the year 2021 is available at: www.globalworth.com/sustainability • Annual reporting prepared in accordance with: ‒ the Global Reporting Initiative (GRI) Standards - core
Slide 18: 2022 Capital Markets Performance
2022 Capital Markets Performance (1 Jan. – 30 Jun.) Renoma 17
Slide 19: Capital Markets: Equity Performance
Capital Markets: Equity Performance • H1-2022 was characterised by increased Shareholding Structure inflation, central bank tightening, supply chain disruption, the war in the Ukraine and the 30 June 2021 30 June 2022 continuing impact of COVID-19 (albeit smaller Other (sub-5%) Other (sub-5%) compar
Slide 20: Capital Markets: Bond Performance
Capital Markets: Bond Performance • In June our inaugural GWI 17/22 bond was 2022 H1 Eurobond Performance maturing 10% ‒ We repaid the remaining principal of €323.1 8% million, which was the outstanding balance of 6% the 17/22 notes following the partial tender and settlement of €226.9 million 17/22
Slide 21: Financial Results: H1-2022
Financial Results: H1-2022 (1 Jan. – 30 Jun.) 20
Slide 22: Financial Highlights H1-2022
Financial Highlights H1-2022 • Resilient performance despite the global challenges, as we Portfolio Value1 Rental Income NOI continued implementing our “local landlord” approach in €3.2bn €75.2m €69.9m managing our business. 2021: €3.2bn vs 2021: -0.2% vs 2021: -3.2% • Consolidated Revenue up by 7.8
Slide 23: Financial Highlights: Condensed Income Statement
Financial Highlights: Condensed Income Statement €m H1-22A H1-21A Variance % Chg Decrease in NOI of €2.3m Rental Income 1 75.2 75.4 (0.2) -0.2% • Rental income lower by €0.2m Net Operating Expenses (5.4) (3.2) (2.1) 66% − Gross rent increased by €3.1m (Romania: €4.2m increase, and Poland: Net operat
Slide 24: Financial Highlights: Condensed Balance Sheet
Financial Highlights: Condensed Balance Sheet €m Jun-22A Dec-21A Variance % Chg Investment property increased by €40m mainly due to the acquisition of one Investment property 1 3,005.7 2,966.1 40 1% standing industrial property (€5.5m) and the acquisition of land for the Investment in joint ventures
Slide 25: EPRA NAV and Earnings Metrics
EPRA NAV and Earnings Metrics €m H1-22 H1-22 IFRS to EPRA Earnings Bridge (€cents) Earnings Attributable to Equity Holders (IFRS) 32.6 12.5 Adjustments per EPRA Guidelines: Fair Value movement on investment property (7.0) 14.7 Chg. in FV of financial instruments & resp. close-out costs (0.3) (0.3) L
Slide 26: Financing Metrics H1-2022
Financing Metrics H1-2022 ■ 41.0% LTV ■ GWI 18/25 bond: €550m (EMTN) @ 3.000% coupon Key Balance ■ 2.55% weighted average interest rate Debt ■ GWI 20/26 bond: €400m (EMTN) @ 2.950% coupon Sheet Metrics ■ 75.3% debt via unsecured, public debt markets Instruments ■ Selective use of secured financing f
Slide 27: Other Supporting Material
Other Supporting Material 26
Slide 28: I. Group Level
|. Group Level globalworth PPP 27
Slide 29: Globalworth at a Glance: Our Business Model
Globalworth at a Glance: Our Business Model Our Resources & Proven Investment Our Core Creating Sustainable Relationships Model Activities Long-term Value Locations Skilled Team Financial In-house team of professionals with Prime locations in fast-growing Generate long-term sustainable and strong fu
Slide 30: Portfolio Evolution since 2017
Portfolio Evolution since 2017 Portfolio Value GLA Standing GLA Commercial Standing GLA Commercial Standing Occupied (€m) (‘000s sqm) (‘000s sqm) (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 31: Financial Performance Evolution since 2017
Financial Performance Evolution since 2017 Rental Income Adjusted Normalised EBITDA 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 1
Slide 32: II. Portfolio Information
II. Portfolio Information 31
Slide 33: Globalworth Class A Modern Portfolio in Prime CBD Locations
Globalworth Class A Modern Portfolio in Prime CBD Locations and Select Industrial Regional Hubs … Standing Portfolio as of June 2022: Standing Modern Portfolio as of June 2022: >€2.9bn standing portfolio of cca 1.4m sqm GLA in Poland and Romania Breakdown by Year of Last Refurbishment (€m) Poland 10
Slide 34: Best In Class Office & Mix-Use Portfolio in Poland
Best In Class Office & Mix-Use Portfolio in Poland … 55.8% of our portfolio by value is in 5 regional cities in Poland Warsaw Gdansk GAV €720.2m Standing Properties 14 Standing GLA 210.9k sqm Standing Occupancy 76.6% Standing Contracted Rent: €38.2m Standing 100% Potential Rent €49.1m WARSAW Regiona
Slide 35: Best In Class Office & Industrial Portfolio in Romania
… and Best In Class Office & Industrial Portfolio in Romania 824k of high-quality standing Bucharest space, and a further 824k sqm GAV €1,336.6m that can be developed in the Standing Properties 22 future, in 6 cities Standing GLA 541.4k sqm Standing Occupancy 90.6% (90.9% incl. options) Oradea Stand
Slide 36: Leased to International Blue-Chip Tenants With Strong Defensive Leases
… Leased to International Blue-Chip Tenants With Strong Defensive Leases Romania Poland Combined • Globalworth's multi-tenant / campus leasing model reduces exposure to any particular tenant 1.4% 1.1% 1.2% 10.7% 18.8 • With circa 660 tenants, the largest being 5.2% of 26.6% % contracted rent roll, w
Slide 37: 2022 Acquisitions: Business Park Chitila
2022 Acquisitions: Business Park Chitila Business Park Chitila (Bucharest) Status Standing Type Class “A” Industrial / SBU Acquisition date April 2022 GLA (k sqm) 7.1 Occupancy (%) 98% Contracted Rent / 100% €0.5m / €0.6m Occupancy Rent (€m) WALL 2.7 years Acquisition yield 9.5% Data as of 30 June 2
Slide 38: 2022 Developments Delivered
2022 Developments Delivered: Timisoara Industrial Park II B3 Pitesti Industrial Park / Caroli Chitila Logistics HUB II Constanta Business Park II (Western Romania) (Central Romania) (Bucharest) (South East Romania) Status Standing Standing Standing Standing Type Class “A” Industrial Class “A” Indust
Slide 39: Refurbishment / Repositioning Projects
Refurbishment / Repositioning Projects Renoma (Wroclaw / Poland) Supersam (Katowice / Poland) • Renoma is a landmark mixed-use property in Wroclaw • Supersam is a modern multi-functional building combining retail and • First opened in 1930 and was last renovated in 2009 services with office space •
Slide 40: Developments Under Construction
Developments Under Construction: Acquired in March 2022 Chitila Logistics Hub Business Park Stefanesti (2) Total (Phase C)(1) Status Under Construction Under Construction Industrial, Industrial, Type Bucharest Bucharest Est. GLA (k sqm) 38.0 18.0 56.0 Cost / Capex to Jun’22 (€m) 16.4 1.7 18.1 Est. R
Slide 41: 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.786.1k sqm of hig
Slide 42: Combined Standing Commercial Portfolio Snapshot
Combined Standing Commercial Portfolio Snapshot: (data as of 30 June 2022) 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
Slide 43: 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 44: For more information, please see www.globalworth.com
For more information, please 43 see www.globalworth.com or contact ir@globalworth.com
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