Globe Trade Centre S.a. · GPW:GTC
Globe Trade Centre — Q2 2014 Earnings Presentation
29 slides from Globe Trade Centre's earnings presentation, Aug 21, 2014
Slide 1: Q2&H1 2014 Results Investors Presentation
Q2&H1 2014 RESULTS INVESTORS PRESENTATION 21 August 2014
Slide 2: Agenda
AGENDA 1. H1 2014 highlights 3 2. Market overview 5 3. Portfolio overview 10 4. Key financial results 15 2
Slide 3: H1 2014 Highlights & Achievements
H1 2014 HIGHLIGHTS I H1 2014 HIGHLIGHTS & ACHIEVEMENTS Reinforcement of capital structure by: • Capital increase of €53m in January • Bonds issue of €48m in March • Repayment of €104m bonds and related hedge instruments in April Improvement in operating results: • Underlying profit before tax at €11
Slide 4: H1 2014 Highlights & Achievements
H1 2014 HIGHLIGHTS I H1 2014 HIGHLIGHTS & ACHIEVEMENTS Pascal office building completed and fully leased (5,500 sq m in Kraków) Galeria Wilanów and Galeria Północna projects progressing according to schedule: • Leases for Galeria Północna and Galeria Wilanów with various anchor tenants prove the att
Slide 5: Agenda
AGENDA 1. H1 2014 highlights 3 2. Market overview 5 3. Portfolio overview 10 4. Key financial results 15 5
Slide 6: Market Overview: Office Market
MARKET OVERVIEW I OFFICE MARKET Prime rent (€/sq m/mth) and vacancy rate (%)* H1 2014 25 20% 24 20% 18% 20 18 20 20 14% 16 15% 15 15 15 15% 15% 13% 10% 10 8% 5% 5 0 0% Zagreb Prague Warsaw Bucharest Belgrade Bratislava Budapest Prime rent (EUR/sq m/mth) Vacancy rate (%) Completions, gross take-up an
Slide 7: Market Overview: Retail Market
MARKET OVERVIEW I RETAIL MARKET Prime rent (€/sq m/mth)* H1 2014 120 105 100 95 80 70 65 60 60 45 40 20 0 Zagreb Prague Warsaw Bucharest Belgrade Budapest Prime rent (EUR/sq m/mth) *Based on Jones Lang LaSalle market reports 7 7
Slide 8: Market Overview: Investment Market
MARKET OVERVIEW I INVESTMENT MARKET Investment transactions* H1 2014 Total: €2,871m As of 30 June 2014 Czech Rep. €713m Poland €1,433m Slovakia €64m Hungary €230m Romania €431m *Based on Jones Lang LaSalle market reports 8 8
Slide 9: Agenda
AGENDA 1. H1 2014 highlights 3 2. Market overview 5 3. Portfolio overview 10 4. Key financial results 15 9
Slide 10: Portfolio Overview
PORTFOLIO OVERVIEW Total portfolio by sector Income generating assets** - value by country Slovakia Total: €1,420m* Total: €1,102m Bulgaria €14m €64m As of 30 June 2014 As of 30 June 2014 1% 6% Residential 7% Serbia €106m 10% Poland Croatia €454m €122m 41% 11% Hungary Retail € 158m 35% 14% Romania O
Slide 11: Portfolio Valuation and Lease Length by Sector
PORTFOLIO OVERVIEW I PORTFOLIO VALUATION AND LEASE LENGTH BY SECTOR Book value Income generating Change in book value Lease length portfolio to 31 Dec 2013 As at 30 June 2014 €m % % yrs OFFICE Poland 150 28% 4% 3.5 Romania 156 14% -1% 3.7 Hungary 158 14% -2% 4.4 Serbia 106 10% 0% 3.2 Slovakia 14 1%
Slide 12: Occupancy and Yield by Sector
PORTFOLIO OVERVIEW I OCCUPANCY AND YIELD BY SECTOR Occupancy Change in occupancy Yield Change in yield to 31 Dec 2013 to 31 Dec 2013 As at 30 June 2014 % % % % OFFICE Poland 95% 3% 7.9% - Romania 93% 0% 8.0% - Hungary 93% -3% 8.1% - Serbia 96% 1% 8.9% - Slovakia 63% 3% 8.8% - OFFICE SECTOR 93% 2% 8.
Slide 13: Top Properties
PORTFOLIO OVERVIEW I TOP PROPERTIES Book value Sq m Rent Occupancy As at 30 June 2014 `000 `000 €/sq m/mts % City Gate Romania 156 48 19.6 93% Galeria Jurajska Poland 150 49 20.3 89% Avenue Mall Zagreb Croatia 110 36 22.0 97% Center Point I &II Hungary 79 43 12.7 91% Spiral Hungary 52 32 11.5 92% Ka
Slide 14: Agenda
AGENDA 1. H1 2014 highlights 3 2. Market overview 5 3. Portfolio overview 10 4. Key financial results 15 14
Slide 15: Key Financial Results: Financial Highlights
KEY FINANCIAL RESULTS I FINANCIAL HIGHLIGHTS H1 2014 H1 2013 FY 2013 (€ m) (€ m) (€ m) Underlying PBT* 11 8 19 Cash flow from operating activities 20 11 26 Total property 1,426 1,600 1,497 Net debt (774) (892) (881) NAV (IFRS) 606 699 622 NAV per share (IFRS) 1.7 2.2 1.9 Underlying PBT/share 0.03 0.
Slide 16: Key Financial Results: Balance Sheet
KEY FINANCIAL RESULTS I BALANCE SHEET Investment property decreased due to: • Decline in expected rental values in retail (€ m) 30 June 2014 December 2013 properties in Romania and Croatia Investment property and • Write off of pipeline lands to reflect market L.T. assets (inc. IPUC) 1,326 1,376 ill
Slide 17: Key Financial Results: Revaluations Breakdown
KEY FINANCIAL RESULTS I REVALUATIONS BREAKDOWN Breakdown of H1 2014 net revaluation result By sector By country Total: €67m Residential Total: €67m 10% Poland 5% Slovakia Serbia 10% 2% Romania 20% Retail Bulgaria Hungary 9% 51% 17% Of f ice 39% Croatia 37% By asset class By asset Total: €67m Total:
Slide 18: Key Financial Results: Debt and LTV
KEY FINANCIAL RESULTS I DEBT AND LTV As at 30 June 2014 31 December 2013 (€ m) (€ m) Long-term bank debt and financial liabilities 852 784 Short-term bank debt and financial 108 197 liabilities Total bank debt and financial liabilities 960 981 Cash & cash equivalents and deposits 125 88 Loans from G
Slide 19: Key Financial Results: Debt and Maturity Schedule
KEY FINANCIAL RESULTS I DEBT AND MATURITY SCHEDULE Debt split Interest rate split As of 30 June 2014 As of 30 June 2014 Other currencies 15% Unsecured Corporate bonds and debt 25% loans from minorities in subsidiaries Fixed/hedged 44% Project loans Floating Secured debt 56% 75% EUR 85% * Other curre
Slide 20: Key Financial Results: Income Statement
KEY FINANCIAL RESULTS I INCOME STATEMENT Q2 2014 Q2 2013 H1 2014 H1 2013 FY 2013 (€ m) (€ m) (€ m) (€ m) (€ m) Rental and service revenue 27 27 55 56 110 Cost of rental operations (7) (8) (14) (16) (31) Rental margin 75% 72% 74% 71% 71% Residential sale result 1 - 1 (1) 1 Gross margin from operation
Slide 21: Key Financial Results: Cash Flow Highlights
KEY FINANCIAL RESULTS I CASH FLOW HIGHLIGHTS H1 2014 H1 2013 FY 2013 (€ m) (€ m) (€ m) Cash from operating activities at €20m Operating cash before w. capital changes 33 30 61 Add/deduct: Net cash as of 30 June 2014 at €90m Decrease in residential inventory 7 6 12 and deposits of €34m Interest paid,
Slide 22: Additional Materials
ADDITIONAL MATERIALS ADDITIONAL MATERIALS 22
Slide 23: Additional Materials: Net Debt
ADDITIONAL MATERIALS I NET DEBT 30 June 2014 30 June 2013 31 December 2013 As at (€ m) (€ m) (€ m) Gross debt 949 968 949 Market value of derivatives 11 48 33 960 1,015 981 Cash and deposits (125) (111) (88) Loan from Galeria Kazimierz 61 12 12 EPRA adjustments - - - Net debt (EPRA basis) (774) (892
Slide 24: Additional Materials: Reconciliation of Underlying PBT
ADDITIONAL MATERIALS I RECONCILIATION OF UNDERLYING PBT 30 June 2014 30 June 2013 31 December 2013 As at (€ m) (€ m) (€ m) IFRS Profit/ (Loss) before tax (68) (65) (162) Valuation movement (includes 67 70 185 disposals) Foreign exchange differences, net 2 3 1 Amortisation of intangible asset 1 1 2 L
Slide 25: Additional Materials: EPRA Balance Sheet
ADDITIONAL MATERIALS I EPRA BALANCE SHEET 30 June 2013 31 Dec 2013 30 June 2014 (restated) (restated) (€ m) (€ m) (€ m) NAV IFRS 606 699 622 Dilution adjustments - - - Diluted NAV 606 699 622 Exclude Fair value adjustment of financial instruments 11 48 33 Deferred tax 119 109 116 Goodwill as a resul
Slide 26: Portfolio of Income Generating Properties
ADDITIONAL MATERIALS I PORTFOLIO OF INCOME GENERATING PROPERTIES As of 30 June 2014 Poland Hungary Serbia Croatia Romania Bulgaria Slovakia Subtotal Czech* Total Office properties Number of assets 12 3 3 - 1 - 1 20 2 22 GTC consolidated share of NLA, 150 91 53 - 48 - 13 356 11 367 ths. sq m Total, N
Slide 27: Additional Materials: Useful Information
ADDITIONAL MATERIALS I USEFUL INFORMATION Investors` calendar 2014-11-13 Consolidated quarterly reports for Q3 2014 Contact details Małgorzata Czaplicka Director Investor Relations tel:. +48 22 60 60 710 mczaplicka@gtc.com.pl Useful links H1 2014 presentation H1 2014 report 27
Slide 28: Disclaimer
DISCLAIMER THIS PRESENTATION IS NOT FOR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN. THIS PRESENTATION IS NOT AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. BY ATTENDING OR VIEWING THIS PRESENTATION, YOU ACKNOWLEDGE AN
Slide 29: Thank you
Thank you Globe Trade Centre S.A. 5 Woloska street, Taurus Building, 02-675 Warsaw, Poland