GLOBALWORTH REAL ESTATE INVESTMENTS LIMITED

Earnings Release • Mar 5, 2021

National Storage Mechanism | Additional information

RNS Number : 2516R

Globalworth Real Estate Inv Ltd

05 March 2021

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.

5 March 2021

Globalworth Real Estate Investments Limited

("Globalworth" or the "Company")

Condensed Unaudited Financial Results for the year ended 31 December 2020

Globalworth, the leading office investor in Central and Eastern Europe, announces the release of its Unaudited Consolidated Statement of Comprehensive Income and Unaudited Consolidated Statement of Financial Position for the year ended 31 December 2020.

The Company intends to announce its audited Financial Results for the year ended 31 December 2020 and publish its 2020 Annual Report towards the end of March 2021.

Key Highlights for the year ended 31 December 2020

•	Total combined portfolio value remained effectively unchanged at €3.0 billion.
•	Performed an extensive review of our cost base, passing on service charges savings to our tenants and reducing our administrative expenses by c.7.0% vs. 2019.
•	Development capex focused only on projects with significant pre-lets or advance level of construction, delivering two class "A" office and two high-quality industrial facilities in Romania and Poland with 95.8k sqm of GLA.
•	Overall standing portfolio footprint increased by 4.7% to 1,271.3k sqm of GLA.
•	Leasing transactions for a total of 303.5k sqm of commercial space at an average WALL of 3.9 years, of which 74.3% related to lease renegotiations/extensions with our existing tenants.
•	Standing commercial occupancy remained high at 90.9% (91.7% including tenant options) as at 31 December 2020 (vs 94.7% and 95.0% including tenant options as at 31 December 2019), impacted however by the delivery of properties under development still in lease-up stage and a 3.3% decrease in like-for-like occupancy due to the very challenging market conditions.
•	Annualised contracted rent of €183.4 million, of which 91.3% from office and industrial properties (down 4.0% vs 2019).
•	Rate of collections for rents invoiced and due remained high at 98.9% for the year.
•	Net Operating Income increased by 6.5% to €157.3 million, despite the negative effect (-2.3%) of the Covid-19 pandemic.
•	Maintained our investment grade rating with all three major rating agencies.
•	Further improvement in debt maturity profile, through the repurchase of c.41% of the notes maturing in 2022 at a 2.0% premium to their par value and effectively extending their maturity through the issuance of our inaugural green bond, raising €400 million with a 6-year term, which was more than 2x oversubscribed.
•	Loan to Value of 37.8% at 31 December 2020, consistent with the Group's strategy to manage its long-term LTV target at below 40% while still pursuing strong growth.
•	Liquidity position remained high with €527.8 million of cash available as of 31 December 2020 and an additional undrawn €215 million Revolving Credit Facility available to the Group.
•	EPRA Net Asset Value per share decreased by 6.7% to €8.68 per share at 31 December 2020 (31 December 2019: €9.30), mainly due to the impact of negative revaluations due to the increased uncertainty in the market caused by the Covid-19 pandemic.
•	IFRS Earnings per share -21 cents in 2020 (2019: +93 cents) as a result of the negative impact of revaluations.
•	Maintained our strong focus of giving back to our community with Globalworth and the Globalworth Foundation contributing c.€2.0 million in 27 initiatives, with the majority targeted directly or indirectly in the fight against Covid-19 in Romania and Poland.
•	CPI Property Group became the largest shareholder in Globalworth in February 2020.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2020

	31 December	31 December
2020	2019
	€'000	€'000
Revenue	223,309	222,246
Operating expenses	(66,031)	(74,534)
Net operating income	157,278	147,712
Administrative expenses	(17,986)	(19,302)
Acquisition costs	(2,689)	(240)
Fair value (loss)/gain on investment property	(116,153)	117,718
Share-based payment expense	(1,071)	(496)
Depreciation on other long-term assets	(466)	(406)
Other expenses	(2,565)	(7,192)
Other income	494	932
Gain resulting from acquisition of joint venture as subsidiary	-	2,864
Foreign exchange loss	(395)	(888)
(Loss)/gain from fair value of financial instruments at fair
value through profit or loss	(47)	1,898
	(140,878)	94,888
Profit before net financing cost	16,400	242,600
Net financing cost
Finance cost	(51,140)	(45,050)
Finance income	2,383	2,416
	(48,757)	(42,634)
Share of profit of equity-accounted investments in joint ventures	1,897	7,750
(Loss)/profit before tax	(30,460)	207,716
Income tax expense	(16,335)	(31,535)
(Loss)/profit for the year	(46,795)	176,181
Other comprehensive income	-	-
Total comprehensive income	(46,795)	176,181
(Loss)/profit attributable to:	(46,795)	176,181
- Equity holders of the Company	(46,795)	170,177
- Non-controlling interests	-	6,004
Earnings per share	Cents	Cents
- Basic	(21)	93
- Diluted	(21)	93

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2020

	2020	2019
	€'000	€'000
ASSETS
Non-current assets
Investment property	3,013,014	3,048,955
Goodwill	12,349	12,349
Advances for investment property	4,215	32,440
Investments in joint ventures	28,358	17,857
Equity investments	10,369	9,840
Other long-term assets	2,148	1,493
Prepayments	432	619
Financial assets at fair value through profit or loss	-	3,098
Deferred tax asset	786	2,869
	3,071,671	3,129,520
Current assets
Financial assets at fair value through profit or loss	7,695	20,487
Trade and other receivables	16,025	28,963
Contract assets	2,819	5,257
Guarantees retained by tenants	894	858
Income tax receivable	931	255
Prepayments	2,227	4,653
Cash and cash equivalents	527,801	291,694
	558,392	352,167
Total assets	3,630,063	3,481,687
EQUITY AND LIABILITIES
Issued share capital	1,704,374	1,704,374
Treasury shares	(12,977)	(8,379)
Share-based payment reserve	6,184	5,571
Retained earnings	57,783	213,101
Equity attributable to ordinary equity holders of the
Company	1,755,364	1,914,667
Non-current liabilities
Interest-bearing loans and borrowings	1,604,043	1,299,616
Deferred tax liability	144,843	134,302
Lease liabilities	27,324	30,190
Guarantees retained from contractors	2,235	1,074
Deposits from tenants	3,449	3,460
Trade and other payables	692	1,316
	1,782,586	1,469,958
Current liabilities
Interest-bearing loans and borrowings	26,051	24,304
Guarantees retained from contractors	4,032	4,754
Trade and other payables	40,209	44,633
Contract liability	2,088	1,824
Other current financial liabilities	875	1,498
Current portion of lease liabilities	1,765	1,887
Deposits from tenants	16,245	15,988
Provision for tenant lease incentives	46	1,353
Income tax payable	802	821
	92,113	97,062
Total equity and liabilities	3,630,063	3,481,687

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

Enquiries

Stamatis Sapkas                                                                                      Tel: +40 732 800 000

Deputy Chief Investment Officer

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

Stuart Klein

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

Alina Vaskina

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 Poland and Romania. Globalworth acquires, develops and directly manages high-quality office and industrial real estate assets in prime locations, generating rental income from high quality tenants from around the globe. Managed by over 220 professionals across Cyprus, Guernsey, Poland and Romania, a combined value of its portfolio is €3.0 billion, as at 31 December 2020. Approximately 92.5% of the portfolio is in income-producing assets, predominately in the office sector, and leased to a diversified array of over 650 national and multinational corporates. In Poland Globalworth is present in Warsaw, Wroclaw, Lodz, Krakow, Gdansk and Katowice, while in Romania its assets span Bucharest, Timisoara, Constanta and Pitesti.

For more information, please visit www.globalworth.com and follow us on Facebook, Instagram and LinkedIn.

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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