Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — H1 2020 Earnings Presentation
31 slides from Globalworth Real Estate Investments's earnings presentation, Sep 22, 2020
Slide 1: Globalworth: CEE's Leading Office Landlord – 2020 Interim Results Presentation
Globalworth: CEE’s Leading Office Landlord 2020 Interim Results Presentation
Slide 2: 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 3: Highlights & Strategy
Highlights & Strategy Green Court Complex, Bucharest 2
Slide 4: H1 2020 – Financial Highlights
H1 2020 – Financial Highlights Our Real Estate Portfolio Value Green portfolio value Increase in GLA Footprint Platform €3.0bn €2.3bn 34.8k sqm -1.1% vs 31 Dec 19 +3.1% vs 31 Dec 19 +2.9% vs 31 Dec 19 Resilient Operating Leasing Activity Occupancy Rate(1) Contracted Rent Performance 115.5k sqm 93.3%
Slide 5: Our Highlights in H1-2020
Our Highlights in H1-2020 Focus on safeguarding our business, protecting our assets and minimising our exposure to the impact of Covid-19 Covid-19 Pandemic & Global Covid-19 pandemic outbreak in March 2020 impacting the way we live and operate Impact in Poland and • High number of confirmed cases, e
Slide 6: Our Highlights in H1-2020 (cont'd)
Our Highlights in H1-2020 (cont’d) Comprehensive • Reviewed our development and investment pipeline considering the Covid-19 pandemic outbreak Review of Investment • Delivered Globalworth Campus Tower 3 in Bucharest (+35.5k sqm) in Q1-2020 and Development • Focused on developments with significant p
Slide 7: Our Highlights in H1-2020 (cont'd)
Our Highlights in H1-2020 (cont’d) Maintained an • Maintained investment grade by all three major rating agencies Efficient ‒ Moody’s affirmed Globalworth's Baa3 rating and changed its outlook to “negative” due to their change of and Flexible outlook on Romania in April ‒ S&P and Fitch affirmed Glob
Slide 8: Our Progress Since 2014
Our Progress Since 2014 Portfolio Value GLA Standing GLA Commercial Standing GLA Commercial Standing Occupied (€m) (‘000s sqm) (‘000s sqm) (000’s sqm and %) 3,500 1,400 1,400 1,200 93% 95% 95% 93% 100% 85% 83% 77% 90% 3,000 1,200 1,200 1,000 80% 2,500 1,000 1,000 70% 800 2,000 800 800 60% 600 50% 1,
Slide 9: Globalworth's Leading CEE Portfolio
Globalworth’s Leading CEE Portfolio Globalworth Poland(1) Globalworth Romania(1) Globalworth Group(1) As of 30 June 2020 Standing Investments(2) 22 15 37 GAV / Standing GAV €1,606m / €1,568m €1,406m / €1,276m €3,013m / €2,844m 94.5% 93.3% Occupancy(3) 92.0% (96.3% including tenant options) (94.2% in
Slide 10: H1-2020 Portfolio & Operational Performance
H1-2020 Portfolio & Operational Performance Skylight & Lumen, Warsaw 9
Slide 11: Standing Portfolio
Standing Portfolio • Standing Portfolio: €2.8bn Key Metrics ‒ Overall standing portfolio value remained effectively unchanged in H1-20 Standing GAV1 (€ m) Standing GLA1 (k sqm) Contracted Rent1(€ m) ‒ LfL value decreased by 2.8% mainly as a 2,845 2,844 1,214 1,249 184 187 result of widening yields a
Slide 12: Developments
Developments • Review of development pipeline Developments Update: H1-2020 following Covid-19 pandemic in H1-20 Number Est. Rent Capex ‒ Focus on projects with significant pre-lets in of GAV GLA (100%) Invested Remaining Est. Yield on place or progress in construction (€m) (K sqm) Capex (€m) Cost (%
Slide 13: Projects Under Construction
Projects Under Construction 43% leased as of today (51% 31% leased as of today (45% including 82.6% including signed HOTs)* tenant option)* leased Constanta Business Park Chitila Logistics Hub Globalworth Secured Projects Podium II (Phase A)(2) (Phase A)(2) Square Under Under Status Delivered in Q3-
Slide 14: Best In Class Office & Mix-Use Portfolio in Poland
Best In Class Office & Mix-Use Portfolio in Poland … 53% of our portfolio by value is Warsaw in 6 cities in Poland Gdansk GAV €715.2m Standing Properties 14 Standing GLA 210.9k sqm Standing Occupancy 88.4% Standing Contracted Rent: €44.0m Standing 100% Potential Rent €49.9m WARSAW Regional Poland GA
Slide 15: Best In Class Office & Industrial Portfolio in Romania
… and Best In Class Office & Industrial Portfolio in Romania 662.2k of high-quality standing space, and a further 936k sqm Bucharest that can be developed in the future, in 4 cities GAV €1,246.6m Standing Properties 18 Standing GLA 472.6k sqm Standing Occupancy 89.7% (92.0% incl. options) Standing C
Slide 16: Asset Management / Leasing Review
Asset Management / Leasing Review • Leasing activity H1 2020 Key Metrics ‒ +115.5k sqm successfully negotiated in take- up (including expansions) or extension Leasing Activity by Type (k sqm) Leasing Activity by Country (k sqm) ‒ Average WALL of 3.2 years • Focus mainly on lease extensions due to Ne
Slide 17: 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) €190.2m ‒ >98% from commercial 34.3 182.1 2.6 - - 0.3 - 0.3 189.3 spaces 2.5 1.5 - - 0.0 - 26.4 ‒ 95.7% in active leases 20.3 23.5 23.5 24.
Slide 18: Collections Overview
Asset Management / Rent Collections Rate & Claims % Collection rate (average % of Portfolio % of Portfolio for the first semester)4 by Contracted Comments: Affected by Now Rent1 2019 2020 GLA Space Type Lockdown Operational2 Office 85%3 0% 100% 96% 97% • Office areas are fully operational. Collectio
Slide 19: Corporate and Social Responsibility Update
Corporate and Social Responsibility Update Green Initiatives Globalworth Foundation Green Buildings • The Globalworth Foundation focused its efforts primarily in the fight • 6 environmentally certified properties added to our portfolio in H1-20 against the Covid-19 pandemic in Romania and Poland • 4
Slide 20: 2020 Capital Markets Performance
2020 Capital Markets Performance 19
Slide 21: Capital Markets Performance / Equity
Capital Markets Performance / Equity • CPI Property Group became the largest 2020 H1 Share Price Performance shareholder in Globalworth, holding 29.6% of the share capital 120% 110% • Share price performed well in the first 100% part of 2020: 90% • trading at par or above EPRA NAV level 80% 70% • we
Slide 22: Capital Markets Performance / Eurobonds
Capital Markets Performance / Eurobonds • Bonds Outstanding Last 12 months Eurobond Performance ‒ H1-2020, €1.1bn in two Eurobonds maturing 4.0% in 2022 and 2025 3.5% ‒ In July, issued a €400m inaugural green bond, 3.0% 2.71% with part of the proceeds used for 2.5% repurchasing c.41% from the 2022 n
Slide 23: H1-20 Interim Financial Results
H1-20 Interim Financial Results 22
Slide 24: H1-20 Financial Highlights
H1-20 FINANCIAL HIGHLIGHTS • Strong operating Portfolio Value1 Rental Income NOI performance despite the global impact of €3.0bn €81.2m €79.6m Covid-19 pandemic -1.1% vs 31 Dec 19 +13.1% vs H1 19 +17.1% vs H1 19 supported by effective asset EPRA Net Asset Value IFRS Earnings before tax Adj Normalise
Slide 25: Financial Highlights: P&L
Financial Highlights: P&L Condensed Income Statement Comments €m H1-20 H1-19 Variance % Chg 1. Increase in Rental Income of 13%: Rental Income 1 81.2 71.8 9.5 13% • Properties acquired in H2-2019 added €10.2m in rental income versus the first Net Operating Expenses (1.6) (3.8) 2.2 -58% half of 2019,
Slide 26: Financial Highlights: Balance Sheet
Financial Highlights: Balance Sheet Condensed Balance Sheet Comments €m Jun-20 Dec-19 Variance % Chg 1. Decline in investment property value by €51m: Investment property 1 2,998 3,049 (51) -2% • Negative revaluation of €92.0m result of widening yields and/or discount rates Investment in joint ventur
Slide 27: EPRA NAV and Earnings Metrics
EPRA NAV and Earnings Metrics €m H1-20 H1-19 IFRS to EPRA Earnings Bridge (€m) Earnings Attributable to Equity Holders (IFRS) (48.6) 69.9 Adjustments per EPRA Guidelines: Fair Value movement on investment property 92.0 (49.7) Chg. in FV of financial instruments & resp. close-out costs (0.3) 0.9 Loss
Slide 28: Financing Metrics
Financing Metrics ■ €550m 5yrs Eurobond in Jun-17 with 2.875% coupon ■ 36.9% LTV ■ €550m 7yrs EMTN issue in Mar-18 with 3.0% coupon Key Balance Sheet ■ 2.52% weighted average interest rate Debt ■ Selective use of secured financing facilities Metrics ■ 78.0% debt unsecured via public debt markets Ins
Slide 29: Other Supporting Material
Other Supporting Material 28
Slide 30: Combined Standing Commercial Portfolio Snapshot
Combined Standing Commercial Portfolio Snapshot: (data as of 30 June 2020) 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 31: For more information, please see www.globalworth.com
For more information, please 30 see www.globalworth.com or contact ir@globalworth.com
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