Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — FY2023 Earnings Presentation
42 slides from Globalworth Real Estate Investments's earnings presentation, Aug 30, 2024
Slide 1: 2023 Annual Results Presentation
GLOBALWORTH The page numbering is dependent on the placeholder “CLICK TO..” text boxes on the page layout in the master CEE’S LEADING OFFICE LANDLORD view, so please DO NOT remove them 2023 Annual 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: Globalworth Overview
GLOBALWORTH OVERVIEW The page numbering is dependent on the placeholder “CLICK TO..” text boxes on the page layout in the master view, so please DO NOT remove them Globalworth Tower, Bucharest, Romania 2
Slide 4: Globalworth Snapshot
GLOBALWORTH SNAPSHOT Snapshot Portfolio1 Select metrics Operating figures: Globalworth is a leading real estate Group with a Present in 14 of the largest and most liquid sub- primary focus on Poland and Romania markets in Poland and Romania €3.0bn 71 We acquire, develop and manage commercial r
Slide 5: Our Business Model
OUR BUSINESS MODEL Our Resources & Proven Investment Our Core Creating Sustainable Relationships Model Activities Long-term Value Skilled Team Financial Locations Invest in real estate opportunities In-house team of professionals with Generate long-term sustainable and strong functional and local kn
Slide 6: Focused on Operational Excellence & Sustainable Growth
FOCUSED ON OPERATIONAL EXCELLENCE & SUSTAINABLE GROWTH Strengthened Effectively Asset Preserved and/ Investment Flexible Our Position in and Property or Protected in Sustainable Resilient Capital Core Markets Managing our Operational Environment Operating Structure of Operation Real Estate Efficienc
Slide 7: Portfolio Evolution Since 2018
PORTFOLIO EVOLUTION SINCE 2018 Portfolio Value GLA Standing GLA Commercial Standing GLA Commercial Standing (€m) (‘000s sqm) (‘000s sqm) Occupied (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 8: Financial Performance Evolution Since 2018
FINANCIAL PERFORMANCE EVOLUTION SINCE 2018 • Rental income (€m) • Adjusted normalised EBITDA (€m) • Cash dividends evolution (€m) 165 145 120 160 140 160.5 160.4 141.6 100 108 155 135 94 80 150 130 151.5 150.3 131.4 149.8 129.0 130.2 145 125 60 66 126.0 65 60 140 120 40 135 115 119.0 137.6 20 130 11
Slide 9: 2023 Operating Performance Update
2023 OPERATING PERFORMANCE UPDATE 88 Supersam, Katowice
Slide 10: New Acquisitions, Developments & Disposals
NEW ACQUISITIONS, DEVELOPMENTS & DISPOSALS Development activity restricted to only selected logistics projects and repositioning of mixed-use assets in Poland New acquisitions: Acquired land in Craiova, Romania, for a new build to Developments Overview suit warehouse development to be delivered in
Slide 11: Deliveries & Developments Under Construction
DELIVERIES & DEVELOPMENTS UNDER CONSTRUCTION Business Park Stefanesti Total under Mures City Logistics1 Craiova Logistics Park (phases II and III)2 construction Acquired in September 2022 Acquired in March 2022 Acquired in November 2023 Status Delivered Under Construction Under Construction Type Ind
Slide 12: Key Value Creation Initiatives
KEY VALUE CREATION INITIATIVES Refurbishment / repositioning: Renoma Refurbishment / repositioning: Supersam Renoma is a landmark mixed-use Supersam is a centrally located property in Wroclaw high-quality mixed-use property in Katowice First opened in 1930 and was last Opened in the 1930s, i
Slide 13: Asset Management / Leasing Review
ASSET MANAGEMENT / LEASING REVIEW Best year in leasing activity with 48.8% of activity involving new leases and expansions Leasing Activity by Type (k sqm) Leasing Activity by Country (k sqm) Leasing transactions of 314.4k sqm taken up or extended during 2023 New Take-up: 153.5k sqm ‒ 48.8% of lea
Slide 14: Asset Management / Sustainable Rental Income
ASSET MANAGEMENT / SUSTAINABLE RENTAL INCOME Total contracted rent up by 6.3% compared to Dec 2022 Total contracted rent of €201.2m Commercial rent: lease expiration profile (€m) Contracted rent: commencement period (€m) +99% from commercial spaces 96.7% from active leases 8.4 0.8 - 9.2 2.0 48%
Slide 15: Standing Portfolio
STANDING PORTFOLIO Resilient performance of our capital cities commercial portfolio at 92.0% occupancy 41 investments with 71 standing properties offering 1.4m sqm Standing GAV1 (€ m) Standing GLA1 (k sqm) Contracted Rent1(€ m) 1,406 1, 386 New additions: 192 182 ‒ During the first half of 2023
Slide 16: Our Portfolio Snapshot
OUR PORTFOLIO SNAPSHOT 1515 Podium Park, Krakow
Slide 17: Portfolio Snapshot
PORTFOLIO SNAPSHOT Globalworth Poland Globalworth Romania(1) Globalworth Group(1) st As December 31 , 2023 Standing Investments(2) 18 Warsaw, 8 Regional, 10 23 Office, 12 Other, 11 41 Poland, 18 Romania, 23 Standing GLA k (sqm)(3) 508.5 177.3 331.2 877.5 462.4 415.2 1,386.0 508.5 877.5 Occupancy (%)
Slide 18: 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 December 2023: >€2.7bn with c. 1.4m sqm GLA in Poland Standing Modern Portfolio as of 31 December 2023: and Romania and 92.5% Green Certified Breakdown by Year of Last Refurbish
Slide 19: Leased to International Blue-Chip Tenants
… LEASED TO INTERNATIONAL BLUE-CHIP TENANTS WITH STRONG DEFENSIVE LEASES Diversified base of tenants with 75.3% of contracted rent from multinationals and high dispersion with largest tenant being 5.3% of contracted rent Romania1 Poland1 Group1 Globalworth's multi-tenant / campus leasing model red
Slide 20: Best in Class & Mix-Use Portfolio in Poland
BEST IN CLASS & MIX-USE PORTFOLIO IN POLAND… Warsaw GAV €633.6m Standing Properties 13 Gdansk Standing GLA 177.3k sqm Standing Occupancy 88.8% Standing Contracted Rent: €41.1m Standing 100% Potential Rent €45.9m WARSAW Regional Poland 57.0% of our portfolio by value is in 5 regional cities in Poland
Slide 21: Best in Class & Industrial Portfolio in Romania
…AND BEST IN CLASS & INDUSTRIAL PORTFOLIO IN ROMANIA Bucharest GAV €1254.6m 877.5k of high-quality standing space, and a further 787k Standing Properties 22 sqm that can be developed in the Standing GLA 575.3k sqm future, in 7 cities Standing Occupancy 92.8% (93.8% incl. options) Standing Contracted
Slide 22: 2023 Capital Markets Performance
2023 CAPITAL MARKETS PERFORMANCE 2121 Spektrum Tower, Warsaw 21
Slide 23: Capital Markets: Equity Performance
CAPITAL MARKETS:EQUITY PERFORMANCE Unique track record of raising substantial equity consistently, with the support of our existing and new institutional shareholders • In 2023 we have seen the return of high interest Shareholding Structure rates and an overall tightening of credit conditions in a r
Slide 24: Capital Markets: Bond Performance
CAPITAL MARKETS:BOND PERFORMANCE Buy back in June 2023 of €100.0 million of the 2025 notes 2023 Eurobond Perfomance Completed in June a cash tender offer for our 18.0% outstanding notes due 2025 and 2026 and, as a result, we have purchased €100.0 million of the 16.0% 2025 notes 14.0% 12.0% €1.5b
Slide 25: Financial Results Presentation
FINANCIAL RESULTS PRESENTATION 2424 Globalworth Campus, Bucharest 24
Slide 26: Financial Highlights 2023
FINANCIAL HIGHLIGHTS 2023 5.8% like for like rental income growth and contracted rent topping €200 million Consolidated Revenue up by 0.5% to €240m for FY-23 Portfolio Value1 Rental Income NOI Rental Income increased by 7.0% mainly from indexation, 10% increase in Romania and 2% increase in Pola
Slide 27: Financial Highlights: Condensed Income Statement
FINANCIAL HIGHLIGHTS: CONDENSED INCOME STATEMENT Increase in NOI of €7.3m Rental income higher by €10.5m − Gross rent increased by €11m offset by €0.5m increase in Figures in €m amortization expense from lease incentives Income Statement 2023 2022 ∆ % Change 1 Net SCH increased by €3.3m Rental i
Slide 28: Financial Highlights: Condensed Balance Sheet
FINANCIAL HIGHLIGHTS: CONDENSED BALANCE SHEET Figures in €m Balance Sheet 2023 2022 ∆ % Change Investment property 1 2,843.1 2,945.5 (102.4) (3.5%) Investments in joint-ventures 70.1 68.0 2.1 3.1% Investment property: our portfolio recorded a decrease due to: Equity investments 7.8 7.5 0.3 4.3% Ne
Slide 29: Financial Highlights: Condensed Cash Flow
FINANCIAL HIGHLIGHTS: CONDENSED CASH FLOW 1 Interest Paid: increase of €2.2m in 2023 due to €8.6 reduction in Bond coupon (€29m on bond coupon paid in 2023 compared to €37.6m in 2022) which was partially off set by Figures in €m €10.7m increase in interest payment for secured bank loans (€18.8mp
Slide 30: EPRA NRV and Earning Metrics
EPRA NRV AND EARNING METRICS €m 2023 2022 Earnings Attributable to Equity Holders (IFRS) 1 (54.2) (17.0) Adjustments per EPRA Guidelines: Fair Value movement on investment property 164.9 89.5 Changes in fair value of financial instruments/ROFO 1.4 (0.7) Profit/(Losses) on disposal of investment prop
Slide 31: Financing Metrics FY 2023
FINANCING METRICS FY 2023 Key Balance Sheet Metrics Consolidated Loan to Value Ratio (figures in €m) 31 Dec 2023 31 Dec 2022 ■ 42.2% LTV Balance Sheet Debt (Face Value) 1,619 1,475 ■ 3.7% weighted average interest rate Less: Cash / Cash Equivalents (396) (164) ■ 58% debt via unsecured, public debt m
Slide 32: Sustainable Development Update
SUSTAINABLE DEVELOPMENT UPDATE 3131 Globalworth Square, Bucharest 31
Slide 33: Commitment to Highest Standards of Sustainable Development
COMMITMENT TO HIGHEST STANDARDS OF SUSTAINABLE DEVELOPMENT We aim for all of our buildings to have green certifications Acquisition of ESG-related certifications Green Certifications of Standing Portfolio and Year of Last Refurbishment (31 December 2023) (€ GAV) Overall, 59 green certified propert
Slide 34: CAPEX Objectives
CAPEX OBJECTIVES CAPEX objectives: promoting green buildings, improving building’s energy efficiency and implementing new innovative technologies Access to affordable, reliable, sustainable and modern energy should be a key area of focus for all, as we strive to meet the targets agreed for clean ene
Slide 35: Tangible Green CAPEX Plan Aligned with Company ESG Targets
TANGIBLE GREEN CAPEX PLAN ALIGNED WITH COMPANY ESG TARGETS We split our CapEx into six categories connected to our ESG targets Total spend 2023 (€m) 14 12.1 12 10 8 6 4.0 4.1 4.1 4 2.2 1.2 1.6 1.7 2 0.5 1.0 0.1 0.3 0 1 HVAC 2 Automations 3 Electrical & Green Energy 4 Operational Efficiency 5 Health
Slide 36: Sustainable Development Update: People
SUSTAINABLE DEVELOPMENT UPDATE: PEOPLE 2023 – 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-qualit
Slide 37: Additional Operational, Investment & Portfolio Information
ADDITIONAL OPERATIONAL, INVESTMENT & PORTFOLIO INFORMATION 3636 Globalworth Tower, Bucharest 36
Slide 38: Combined Standing Portfolio Snapshot by Location and Type
COMBINED STANDING PORTFOLIO SNAPSHOT BY LOCATION AND TYPE (DEC 2023) 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/m) (€
Slide 39: Strong Growth Potential from Development Pipeline
STRONG GROWTH POTENTIAL FROM DEVELOPMENT PIPELINE Future Developments Timisoara Constanta The Luterana Globalworth Industrial Park Globalworth has several developments Secured Projects Podium III Green Court D Business Park West (I & II) Development (Other Phases)2 to be developed in the future in p
Slide 40: Portfolio Yields as of Dec. 2023 (Including EPRA)
PORTFOLIO YIELDS AS OF DEC. 2023 (INCLUDING EPRA) 100% Rent Yield EPRA NIY and ‘topped-up’ NIY Poland Romania Portfolio Poland Romania Portfolio €m €m €m €m €m €m Combined Property Portfolio 1,474.8 1,520.0 2,994.8 Investment property – wholly owned 1,474.8 1,391.0 2,865.8 Less: Residential Investme
Slide 41: Portfolio Vacancy as of Dec. 2023 (Including EPRA)
PORTFOLIO VACANCY AS OF DEC. 2023 (INCLUDING EPRA) Globalworth Vacancy Rate - Sqm EPRA Vacancy Rate - Income Romania Poland Portfolio Romania Poland Portfolio Available Standing Commercial GLA (k (A) 55.5 105.0 160.5 Estimated Rental Value of vacant space (A) 6.5 19.4 25.9 sqm) Estimated rental valu
Slide 42: For more information, please see www.globalworth.com
For more information, please see www.globalworth.com 4141
Globalworth Real Estate Investments — FY2023 Earnings Presentation on 6ix