GTC - Globe Trade Centre S.A. — Earnings Release 2020

Dec 21, 2020

Subject: Events with a potential impact on GTC`s consolidated financialstatements for the three-month period ended 31 December 2020

The management board of Globe Trade Centre S.A. ("GTC", the "Company")informs that based on preliminary discussions with the valuation expertscommissioned to value the real estate portfolio of the GTC group, itexpects that the financial results of GTC will be adversely affected andGTC will report a consolidated net loss for the three months ended 31December 2020 due to the expected drop in valuation of the properties.

The valuation of the investment property portfolio

Since the outbreak of the coronavirus disease (COVID-19), localgovernments in each country where GTC operates have implemented avariety of contingency measures. Consumer behaviour and retail saleshave been adversely impacted and may remain challenging in the near termuntil the spread of COVID-19 is effectively contained.

Due to the uncertainty regarding future operating performance as aconsequence of COVID-19 and the dampened economic and operatingenvironment in Central and Eastern Europe (CEE), it is expected that theappraised value of our investment properties as at 31 December 2020 willdecrease when compared to that as at 30 September 2020. Based on thepreliminary assessment by the valuation expert commissioned to value GTCgroup's real property portfolio, the decrease in the value of ourinvestment properties is expected to amount to approx. EUR 74 million inthe three months period ended 31 December 2020, a decline of 3.4% whencompared to the appraised value of EUR 2,161 million as at 30 September2020.

The 54% of the decline is attributed to the retail activity of theCompany (approx. EUR 40 million), and in particular to Galeria Północna(located in Warsaw, Poland), Ada Mall (located in Belgrade, Serbia) andGaleria Jurajska (located in Częstochowa, Poland) and is resulting fromimpact of outbreak of COVID-19 related to lockdowns and multi-prongedmeasures to support tenants. The remaining amount of the decline invalue ( approx. EUR 34 million) is attributed to the office sector wherewe see mild softening in yields and rent conditions.

The Management Board assesses that, assuming that the decline in thevalue of the properties as at 31 December 2020 is recognised at thelevel set out above, the relevant GTC Group companies will continue tocomply with the financial covenants set out in their loan agreements asat 31 December 2020.

The Company maintains a strong cash position which enables it to becompliant with the debt-service payments obligations.

GTC will continue to monitor and protect its financial and liquiditypositions, both of which remain healthy as of the date of this report,and undertake mitigating steps to reduce the impact of the adversemarket situation.

The information contained in this current report is based only upon thepreliminary assessment made by the management board of GTC withreference to the information currently available, which has neither beenreviewed nor audited by GTC's auditors.