GLOBALWORTH REAL ESTATE INVESTMENTS LIMITED

Earnings Release • Aug 28, 2018

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RNS Number : 0521Z

Globalworth Real Estate Inv Ltd

28 August 2018

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this information is considered to be in the public domain.

28 August 2018

Globalworth Real Estate Investments Limited

("Globalworth" or the "Company")

Notice of Interim Results & Preliminary Interim Financial Information

Globalworth announces that it intends to publish its Interim Report and Financial Statements for the six-month period ended 30 June 2018 during the week commencing 17 September 2018.  Ahead of this publication, the Company is today providing a preliminary release of its unaudited Consolidated Statement of Comprehensive Income and unaudited Consolidated Statement of Financial Position to 30 June 2018.

In addition, the Company is pleased to report its preliminary EPRA Net Asset Value as at 30 June 2018 to be €1,200.6 million or €9.06 per share.

For further information visit www.globalworth.com or contact: 

Enquiries

Andrew Cox                                                                                                                Tel: +44 20 3026 4027

Head of Investor Relations & Corporate Development  

Jefferies (Joint Broker)                                                                                             Tel: +44 20 7029 8000

Stuart Klein

Panmure Gordon (Nominated Adviser and Joint Broker)                                  Tel: +44 20 7886 2500

Andrew Potts

Milbourne (Public Relations)                                                                                  Tel: +44 7903 802545

Tim Draper

About Globalworth / Note to Editors: 

Globalworth is a listed real estate company active in Central and Eastern Europe, quoted on the AIM-segment of the London Stock Exchange.  It has become the pre-eminent office investor in the CEE real estate market through its market-leading positions both in Romania and in Poland, where the Company has a majority shareholding in Globalworth Poland, a pure-play Polish real estate platform listed on the Warsaw Stock Exchange.  Globalworth acquires, develops and directly manages high-quality office and logistics/light-industrial real estate assets in prime locations, generating rental income from high quality tenants from around the globe. Managed by approximately 110 professionals across Romania and Poland, the combined value of its portfolio is currently approximately €2 billion. Over 90% of this is in income-producing assets, predominately in the office sector, and leased to some 440 national and multinational corporates from 28 countries and 37 different sectors. In Romania, Globalworth is present in Bucharest, Timisoara and Pitesti, while in Poland its assets span Warsaw, Wroclaw, Lodz, Krakow, Gdansk and Katowice. For more information, please visit www.globalworth.com and follow us on Facebook, Instagram and LinkedIn.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2018

		30 June 2018 (unaudited)		30 June 2017 (unaudited)
		€'000		€'000
Revenue		78,097		34,938
Operating expenses		(26,398)		(12,957)
Net operating income		51,699		21,981
Administrative expenses		(6,456)		(3,224)
Acquisition costs		(952)		(303)
Fair value gain on investment property		38,558		682
Gain on acquisition of subsidiaries		251		2,639
Share based payment expense		(97)		(3)
Depreciation on other long-term assets		(179)		(76)
Other operating expenses		(1,494)		(1,493)
Other operating income		215		5
Foreign exchange loss		(883)		(229)
		28,963		(2,002)
Profit before net financing cost		80,662		19,979
Finance cost		(20,505)		(27,330)
Finance income		1,425		583
Share of profit / (loss) of joint ventures		717		(23)
Gain from fair value of financial instrument		1,653		-
Profit / (loss) before tax		63,952		(6,791)
Income tax expense		(7,573)		195
Profit / (loss) for the period		56,379		(6,596)
Other comprehensive income		-		-
Attributable to:		56,379		(6,596)
Equity holders of the Company		49,766		(6,596)
Non - controlling interests		6,613		-

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2018

			30 June 2018 (unaudited)	31 December 2017 (audited)
			€'000	€'000
---	---	---	---	---
ASSETS
Non-current assets
Investment property			2,088,545	1,792,414
Goodwill			12,349	12,349
Advances for investment property			2,443	3,355
Investments in joint-ventures			38,422	21,939
Equity investments at fair value through other comprehensive income			8,639	-
Other long-term assets			834	689
Other receivables			-	416
Prepayments			1,515	1,578
Available for sale financial assets			-	5,897
Financial assets at fair value through profit or loss			5,921	-
Long-term restricted cash			-	2,958
Non-current assets			2,158,668	1,841,595
Current assets
Debentures			-	18,389
Available for sale financial assets			-	4,346
Financial assets at fair value through profit or loss			5,976	-
Trade and other receivables			29,477	22,419
Guarantees retained by tenants			107	304
Income tax receivable			315	295
Prepayments			6,257	325
Cash and cash equivalents			512,822	273,272
			554,954	319,350
Total assets			2,713,622	2,160,945
EQUITY AND LIABILITIES
Equity
Issued share capital			896,354	894,509
Treasury shares			(1,088)	(270)
Share based payment reserve			1,783	2,240
Retained earnings			191,395	172,405
Equity attributable to ordinary equity holders of the parent			1,088,444	1,068,884
Non-controlling interests			219,451	67,572
Total equity			1,307,895	1,136,456
Non-current liabilities
Interest-bearing loans and borrowings			1,232,376	834,044
Deferred tax liability			106,680	99,574
Guarantees retained from contractors			625	2,616
Deposits from tenants			9,894	8,931
Trade and other payables			1,765	1,509
			1,351,340	946,674
Current liabilities
Interest-bearing loans and borrowings			11,152	36,360
Guarantees retained from contractors			3,725	1,057
Trade and other payables			34,388	35,635
Other current financial liabilities			2,369	2,638
Deposits from tenants			1,352	1,256
Income tax payable			1,401	869
			54,387	77,815
Total equity and liabilities			2,713,622	2,160,945

IMPORTANT NOTICE:  This announcement has been prepared for the purposes of complying with the applicable laws and regulations of the United Kingdom and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws and regulations of any jurisdiction outside of the United Kingdom.  This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "targets", "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward looking statements include all matters that are not historical facts and involve predictions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's business, results of operations, financial position, liquidity, prospects, growth or strategies and the industry in which it operates. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. Save as required by law or regulation, the Company disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.

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