Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — FY2022 Earnings Presentation
45 slides from Globalworth Real Estate Investments's earnings presentation, Jul 5, 2023
Slide 1: Globalworth Annual Results Presentation
globalworth PPP GLOBALWORTH. CEE'S LEADING ome i. Annual ee Prese ? LANDLORD \
Slide 2: Green Court Complex, Bucharest
globalworth Green Court Complex, Bucharest
Slide 3: Globalworth Snapshot
GLOBALWORTH SNAPSHOT, Snapshot Globalworth is a leading real estate Group with a primary focus on Poland and Romania, the two largest markets in the CEE We acquire, develop and manage commercial real estate assets, primarily in the office sector — — Prime locations in key cities — Modern assets with
Slide 4: Our Business Model
globalworth PPP OUR BUSINESS MODEL. Our Resources & Proven Investment Our Core Creating Sustainable Relationships Model Activities Long-term Value Skilled Team ne Financial tions Invest in real estate opportunities Prime locations in fast rowing regions of Poland and Romania Financial Strength or Pr
Slide 5: Focused on Operational Sustainable Growth
FOCUSED ON OPERATIONAL SUSTAINABLE GROWTH. Strengthened Our Position in Core Markets of Operation je Le Completed developments - six high-quality logistic Facilities, adding 104.4k sqm of spaces to our portfolio Acauired a 75% stake: in our first small business units ("SBU") logistic facility in Buc
Slide 6: Portfolio Evolution Since 2017
globalworth PEP PORTFOLIO EVOLUTION SINCE 2017, Portfolio Value GLA Standing GLA Commercial Standing GLA Commercial Standing (€m) (‘000s sqm) (‘000s sqm) Occupied (000’s sqm) 3 1,600 1,600 1,400 3, 1,400 ore 1,400 oe 1,200 rn. & sg 2 : ero® — xf ee 1,000 hoot 2, oo 0 800 1 600 600 600 | 400 400 400
Slide 7: Financial Performance Evolution Since 2017
FINANCIAL PERFORMANCE EVOLUTION SINCE 201 7. Rental income (€m) 180.0 160.0 140.0 120.0 100.0 80,0 60,0 40,0 20.0 Loan to value (%) 50.0 45.0 40.0 35.0 30.0 25,0 20.0 15.0 10.0 5.0 2017 2018 «2019 2020-2021 Group, 2022 2017 2018 2019 Group 2020 2021 2022 Adjusted normalised ebitda (Em) 160.0 140.0 1
Slide 8: Slide 8
Slide 9: Acquisitions, deliveries and developments
▪ ▪ (K sqm) Yield (%) ▪ (K sqm) • ‒ Industrial – UC ‒ ‒ ▪ ▪ ‒ ▪
Slide 10: 2022 Acquisitions: Business Park Chitila
2022 ACQUISITIONS: BUSINESS PARK CHITILA. Business Park Chitila (Bucharest) Small bu sir units project in the north-western part to our ¢ TED, and rebran Chitila” follov a ark comprising of 13 s Status Standing Type Class “A” Industrial / SBU Acquisition date April 2022 GLA (k sqm) 7.1 Occupancy (%)
Slide 11: 2022 Deliveries
2022 DELIVERIES. Timisoara Business Park 5 orth] Ps Chitila Logistics Constanta Stefanesti _'Mdustrial Park II Pitesti Industrial Hue phases ll Business Park'l Total deliveries in B3 Park / Caroli (phase |) a eve lacy and Ill) (South East 2022 (Bucharest) en (Genel Rana) (Bucharest) Romania) Status
Slide 12: Developments Under Construction
globalworth PPP DEVELOPMENTS UNDER CONSTRUCTION, . c(t) Business Park Stefanesti Mures City Logistics’ (phases Il and li)? Total Status Type Industrial, Tg. Mures Industrial, Bucharest Est. GLA (k sqm) 16.7 13.2 30.0 Cost / Capex to Dec'22 (Em) 27 79 176 Est. Remaining Capex (€m) 1.9 1.5 3.4 Est. Re
Slide 13: 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: of Class * ie Bll atl oh 16m Ml wl) aw Works
Slide 14: Refurbishment / Repositioning: Supersam
REFURBISHMENT / REPOSITIONING: SUPERSAM Supersam on delivery Total GLA 26.2k sqm 8% increase Office GLA 13.4k sqm +2x increase Retail GLA 11.8k sqm (30% reduction) Storage GLA 1.0k sqm.
Slide 15: ▪ 120.0 ‒ 100.0 ‒ 80.0 ‒ 60.0 40.0 20.0 ▪ - ‒ ▪
▪ 120.0 ‒ 100.0 ‒ 80.0 ‒ 60.0 40.0 20.0 ▪ - ‒ ▪ ▪ ▪ ‒
Slide 16: Active Leases H1-23
▪ ▪ ▪ Active H1-23 H2-23 >2023 Total Leases ▪ ▪ Rent (€m /yr) Cumulative % of total
Slide 17: Romania Poland Romania
▪ ▪ ‒ 542 87.9 1,447 ‒ 760 1,419 87.5 ▪ 2021 2022 ‒ 2021 2022 2021 2022 Romania Poland Romania Poland Romania Poland ‒ ▪ 1,316 ‒ ‒ 1,194 2021 2022 2021 2022 2021 2022 Romania Poland Romania Poland Romania Poland ‒
Slide 18: ijr_z_—F- i= = SS i he a te tee
ijr_z_—F- i= = SS i he a te tee mm he ee ee ee ee
Slide 19: Portfolio Snapshot
PORTFOLIO SNAPSHOT. globalworth PEP GlobalworthPoland” (ual Globalworth Romania” —j Globalworth Group” As of December 31", 2022 22 Standing Investments”? i Office & Others: 13 I Industrial: 9 a €1,574m / €1,471m GAV® / Standing GAV €1,584m / €1,423m, €1,308m/ €1,217m l €271m/ €254m €3,159m / €2,894m
Slide 20: Globalworth Class A Modern Portfolio in Prime CBD Locations
GLOBALWORTH CLASS A MODERN PORTFOLIO IN PRIME CBD globalworth PPP LOCATIONS AND SELECT INDUSTRIAL REGIONAL HUBS ... Standing Portfolio as of December 2022: >€2.9bn with c. 1.4m sqm GLA in Poland and Romania and 89.9% Green Certified Poland Regional Poland Warsaw Regional Romania Romania Industrial B
Slide 21: Leased to International Blue-Chip Tenants with Strong Defensive Leases
.., LEASED TO INTERNATIONAL BLUE-CHIP TENANTS WITH STRONG DEFENSIVE LEASES globalworth PPP Diversified base of tenants with 77.5% of contracted rent from multinationals and high dispersion with largest tenant being 5.2% of contracted rent Poland Romania 1.1% 1.3 12.8 30.6% 85.9% 68.2% I Internationa
Slide 22: Best in Class & Mix-Use Portfolio in Poland
BEST IN CLASS & MIX-USE PORTFOLIO IN POLAND... Wroclaw Gdansk WARSAW 7: 1] Lodz Katowice 7. 1] Krakow globalworth PPP Regional Poland 55.4% of our portfolio by value is in 5 regional cities in Poland Tryton Business House (Gdansk) Nokia Campus (Wroclaw) Quattro Business Park (<rakow) Skylight & Lume
Slide 23: Best in Class & Industrial Portfolio in Romania
globalworth PPP . “AND BEST IN CLASS & INDUSTRIAL PORTFOLIO IN ROMANIA Bucharest ar 863k of high-quality | | standing space, and a further Ing ——— 785k sqmthatcanbe — | Standing Gl ksqrr developed in the future, | | | in 7 cities | Standing Occupar incl. option: —_— 7 Standing Contracted Rent 1.91 f
Slide 24: Globalworth Tower and Globalworth Plaza
Globalworth Tower and Globalworth Plaza
Slide 25: Capital Markets: Equity Performance
CAPITAL MARKETS: globalworth PEP EQUITY PERFORMANCE. * 2022 was characterized by increased inflation, central bank tightening, supply chain disruption, the war in the Ukraine and the continuing impact of COVID-19 (albeit smaller compared to the past), all of which continue to prevail since, thus mai
Slide 26: Bond performance
20.0% 15.0% ▪ 10.0% ‒ 5.0% - Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 (5.0%) (10.0%) ▪ GWI Bond 17/22 GWI Bond 18/25 GWI Bond 20/26 ‒ ‒ ▪ ‒ ‒ ‒
Slide 27: Financial Results Presentation
globalworth PPP FINANCIAL RESULTS PRESENTATION.
Slide 28: Impact on the property portfolio
▪ ▪ ▪ ▪ ▪ on the property portfolio ▪
Slide 29: Financial Highlights: Condensed Income Statement
globalworth PEP FINANCIAL HIGHLIGHTS: CONDENSED INCOME STATEMENT, Figures in €m Income Statement 2022-FY 2021-FY Delta % Change Rental income 149.8 150.3 (0.5) (0.3%) Net Operating Expenses (10.1) (6.0) (4.1) 67.8% Net Operating Income 139.7 144.3 (4.6) (8.2%) Administrative Expenses (13.7) (25.6) (
Slide 30: Financial Highlights: Condensed Balance Sheet
globalworth PEP FINANCIAL HIGHLIGHTS: CONDENSED BALANCE SHEET, Figures in €m Balance Sheet 2022-FY __2021-FY Delta _% Change Investment property: overall decreased by €20.6m due to Investment property 2,945.5 2,966.1 (20.6) (0.7%) * net fair value loss on freehold properties of €84.2m and by disposa
Slide 31: Financial Highlights: Condensed Cash Flow
globalworth PEP FINANCIAL HIGHLIGHTS: CONDENSED CASH FLOW. Figures in €m Cash Flow 2022-FY__2021-FY. Delta % Change Profit/(Loss) For the Period (2) aT B.B) (118.196) Interest Paid: increase of €1.0m In 2022 due to - Fair value loss / (gain) on investment property 89.5 5.7 83.7 1459.3% €37.6m on bon
Slide 32: EPRA NRV and Earning Metrics
globalworth PEP EPRA NRV AND EARNING METRICS, €m 2022 2021 Earnings Attributable to Equity Holders (IFRS) ' (17.0) 47.5 Adjustments per EPRA Guidelines: Fair Value movement on investment property 89.5 5.7 Chg. in FV of financial instruments & resp. close-out costs (0.4) (0.6) Losses on disposal of i
Slide 33: Financing Metrics FY 2022
FINANCING METRICS FY 2022, Key Balance Sheet Metrics 42.7% LIV 2.89% weighted average interest rate 84.6% debt via unsecured, public debt markets 3.3 years average maturity of debt Financing Strategy @ Long-term LTV target of belaw 40% = Largely unsecured debt structure, but seeks to optimise flexib
Slide 34: Sustainable Development Update
SUSTAINABLE [ ~ UPDATE»; Ti <¢ we Globalworth Square, Bucharest
Slide 35: Sustainable Development: Green Buildings
SUSTAINABLE DEVELOP GREEN BUILDINGS. Green Buildings = We certified or recertified 45 properties with BREEAM Very Good or higher certifications; - 3properties in Romania green certified for the first time - 4 buildings in Romania improved their certification to LEED Platinum - 38 other properties ma
Slide 36: Sustainable Development Update: People
SUSTAINABLE DEVELOPMENT UPDATE: PEOPLE 2022 — Globalworth Foundation Children’s adventure day with Globalworth volunteers n rear Warsaw, along with Buchar smpe' RM » w POTECA FLUTURILOR The Butterfly Trail in Vacaresti Natural Park - a new way tc sxplore the Vacaresti Natural Park The Globalworth Fo
Slide 37: Sustainable Development Update: People (Cont'd)
SUSTAINABLE DEVELOPMENT UPDATE: PEOPLE (CONT'D), 2022 — Our Globalworth Community . . war humanitarian relief ef 9 0 square meters of its portfolio in Romania and Poland under the SPACE FOR UKRAINE motto, out of which 6,901 iuare meters are still being used for this purpos . \pany that offers the ne
Slide 38: Sustainable Development Update: Reporting
globalworth PPP SUSTAINABLE DEVELOPMENT UPDATE: REPORTING, Annual Reporting = The 4th Sustainable Development report, covering the year 2021 is available at: ww balworth.com/sustainability ® Annual reporting prepared in accordance with the Global Reporting Initiative (GRI) Standards - core option th
Slide 39: Additional Operational, Investment & Portfolio Information
Slide 40: Combined Standing Portfolio Snapshot by Location and Type
globalworth COMBINED STANDING PORTFOLIO SNAPSHOT poe BY LOCATION AND TYPE (DEC 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 (it) (it) (Em) __(k sam) (%) Rent (€m)_
Slide 41: Strong Growth Potential from Development Pipeline
STRONG GROWTH POTENTIAL FROM DEVELOPMENT PIPELINE. Future Developments Globalworth has several 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.785.7k sqm of high-q
Slide 42: Portfolio Yields as of Dec 2022
globalworth PEP PORTFOLIO YIELDS AS OF DEC, 2022 (INCLUDING EPRA). 100% Rent Yield EPRA NIY and ‘topped-up’ NIY R i Poland — Portfolio Poland Romania Portfolio ome oe or Cm €m €m €m Combined Property Portfolio 1,584.5 1,574.4 8,158.9 Investment property — wholly owned 1,455.1 1,584.5 3,039.6 Less: R
Slide 43: Portfolio Vacancy as of Dec 2022
globalworth PPP PORTFOLIO VACANCY AS OF DEC, 2022 (INCLUDING EPRA). Globalworth Vacancy Rate - Sqm EPRA Vacancy Rate - Income Romania — Poland — Portfolio Romania — Poland Portfolio Available Standing Commercial GLA (k (A) 97.3 101.6 198.9 Estimated Rental Value of vacant (A) 9.7 19.7 29.4 sqm) spac
Slide 44: Disclaimer
globalworth PEP 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 pres
Slide 45: PPY
globalworth PPY
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