Globalworth Real Estate Inv Ltd Condensed Unaudited Results for FY 31 Dec 2020 (2516R)

TIDMGWI

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 
       EUR3.0 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 EUR183.4 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 EUR157.3 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 EUR400 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 EUR527.8 million of cash available 
       as of 31 December 2020 and an additional undrawn EUR215 million Revolving 
       Credit Facility available to the Group. 
 --   EPRA Net Asset Value per share decreased by 6.7% to EUR8.68 per share 
       at 31 December 2020 (31 December 2019: EUR9.30), 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.EUR2.0 
       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 YEARED 31 DECEMBER 2020

 
                                                       31 December  31 December 
                                                              2020         2019 
                                                           EUR'000      EUR'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 
===============================================  =========  ========= 
                                                   EUR'000    EUR'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: [phone]

Deputy Chief Investment Officer

Jefferies (Joint Broker) Tel: [phone]

Stuart Klein

   Panmure Gordon (Nominated Adviser and Joint Broker)                        Tel: [phone] 

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 EUR3.0 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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March 05, 2021 02:00 ET (07:00 GMT)