Globalworth Real Estate Inv Ltd Notice of Interim Results & Prelim Results (1103K)

TIDMGWI

RNS Number : 1103K

Globalworth Real Estate Inv Ltd

31 August 2021

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

31 August 2021

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 2021 during the week commencing 20 September 2021. 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 2021.

Key Highlights for the period ended 30 June 2021

   -- Total combined portfolio value increased by 1.3% to EUR3.1 billion, mainly due to new acquisitions and net 
      positive impact from our developments. 
 
          -- Like-for-like appraised value of standing commercial properties remained effectively unchanged at EUR2.7 
             billion (0.1% lower compared to 31 December 2020). 
 
   -- Completed the development of Globalworth Square in Bucharest adding 29.1k sqm class "A" office space to our 
      portfolio. 
 
   -- Prioritised the development of new high-quality logistic / light-industrial facilities in Romania (99.7k sqm) and 
      the refurbishment / repositioning of two mixed-use properties in Poland aiming at increasing their class "A" 
      office space and improving their retail/commercial offering, in response to current market conditions. 
 
   -- Acquired two high-quality logistics / light-industrial facilities in the western part of Romania with a total 
      area of 27.0k sqm for EUR17.9 million which are 100% let to two multinational tenants on 15-year lease 
      agreements. 
 
   -- Overall standing portfolio footprint net increase of 31.7k sqm to 1.3m sqm of GLA in 66 standing properties. 
 
   -- Leasing transactions of 194.4k sqm (+68.2% increase compared to H1-2020) of commercial space taken-up or extended, 
      representing our best semester to date, at an average WALL of 4.7 years. 
 
   -- Average standing occupancy of our combined commercial portfolio of 88.7% (89.7% including tenant options), lower 
      by 2.4% compared to 31 December 2020, due to average occupancy of three new standing properties lower than the 
      Group average, and the 1.3% decrease in like-for-like occupancy due to very challenging market conditions. 
 
   -- Total annualised contracted rent increased by 1.0% to EUR185.2 million compared to year-end 2020, of which: 
 
          -- 91.4% from office and industrial properties 
 
          -- 94.7% in active leases 
 
   -- Rate of collections for rents invoiced and due remaining high at 98.7%. 
 
   -- Net Operating Income decreased by 9.4% to EUR72.2 million compared to the first half of 2020, including the 1.3% 
      impact due to restrictions addressing COVID-19. 
 
   -- Maintained our investment grade rating by all three major rating agencies post their 2020 year-end review of the 
      Company. 
 
   -- Loan to Value of 39.2% at 30 June 2021, consistent with the Group's strategy to manage its long-term LTV target 
      at below 40%. 
 
   -- Liquidity position remained high with EUR459.9 million of cash available as of 30 June 2021 and an additional 
      undrawn EUR215 million Revolving Credit Facility available to the Group. 
 
   -- Preliminary EPRA Net Reinstatement Value (NRV) as at 30 June 2021 of EUR1,903 million, or EUR8.61 per share, a 
      marginal decrease compared to EUR8.68 at 31 December 2020 mainly due to payment of interim dividend in period and 
      negative impact of the IFRS valuation losses recorded. 
 
   -- IFRS Earnings per share of 6 cents in H1-2021 (H1-2020: 22 cents negative, as a result of the negative impact of 
      revaluations recorded). 
 
   -- 57 green certified properties in our portfolio as at 30 June valued at EUR2.7bn. 
 
   -- Issued the third sustainable development report for the Group for FY 2020, and our inaugural Green Bond Report. 
 
   -- Maintained our low-risk rating by Sustainalitics and BBB by MSCI. 
 
   -- Maintained our strong focus of giving back to our community, with Globalworth and the Globalworth Foundation 
      contributing c.EUR445k in more than 10 initiatives in Romania and Poland. 
 
   -- The consortium of CPI Property Group and Aroundtown currently holds 60.6% of the share capital of the Company, 
      via Zakiono Enterprises Limited, following the successful completion of a cash offer for the acquisition of 
      Globalworth shares at Eur 7.00 / share which was initiated by way of a formal offer first announced on 12 May 
      2021. 
 
               INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
                                    FOR THE SIX MONTH PERIODED 30 JUNE 2021 
                                                            30 June     30 June 
                                                               2021        2020 
                                                          Unaudited   Unaudited 
                                                            EUR'000     EUR'000 
=======================================================  ==========  ========== 
Revenue                                                     108,110     114,039 
Operating expenses                                         (35,957)    (34,392) 
=======================================================  ==========  ========== 
Net operating income                                         72,153      79,647 
=======================================================  ==========  ========== 
Administrative expenses                                     (9,323)     (8,824) 
Acquisition costs                                                 -     (2,302) 
Fair value loss on investment property                     (14,703)    (91,977) 
Share-based payment expense                                   (432)       (194) 
Depreciation on other long-term assets                        (259)       (203) 
Other expenses                                                (795)     (1,444) 
Other income                                                    476         285 
Foreign exchange loss                                          (50)       (167) 
(Loss)/gain from fair value of financial instruments 
 at fair value through profit or loss                         (243)         151 
=======================================================  ==========  ========== 
                                                           (25,329)   (104,675) 
=======================================================  ==========  ========== 
Profit/(loss) before net financing cost                      46,824    (25,028) 
-------------------------------------------------------  ----------  ---------- 
Net financing cost 
-------------------------------------------------------  ----------  ---------- 
Finance cost                                               (27,523)    (23,528) 
Finance income                                                  839       1,203 
=======================================================  ==========  ========== 
                                                           (26,684)    (22,325) 
=======================================================  ==========  ========== 
Share of (loss)/profit of equity-accounted investments 
 in joint ventures                                          (1,273)       1,258 
=======================================================  ==========  ========== 
Profit/(loss) before tax                                     18,867    (46,095) 
=======================================================  ==========  ========== 
Income tax expense                                          (6,333)     (2,487) 
=======================================================  ==========  ========== 
Profit/(loss) for the period                                 12,534    (48,582) 
=======================================================  ==========  ========== 
Other comprehensive income                                        -           - 
=======================================================  ==========  ========== 
Total comprehensive income                                   12,534    (48,582) 
=======================================================  ==========  ========== 
 
 
Profit/(loss) attributable to equity holders of 
 the Company                                      12,534  (48,582) 
================================================  ======  ======== 
 

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2021

 
                                                                    30 June 
                                                                       2021  31 December 2020 
                                                                  Unaudited           Audited 
                                                                    EUR'000           EUR'000 
==============================================================  ===========  ================ 
ASSETS 
Non-current assets 
Investment property                                               3,049,467         3,013,014 
Goodwill                                                             12,349            12,349 
Advances for investment property                                      4,128             4,215 
Investments in joint ventures                                        33,190            28,358 
Equity investments                                                   10,589            10,369 
Other long-term assets                                                1,957             2,148 
Prepayments                                                             387               432 
Deferred tax asset                                                      137               786 
==============================================================  ===========  ================ 

                                                                  3,112,204         3,071,671 
==============================================================  ===========  ================ 
Current assets 
Financial assets at fair value through profit or loss                 7,510             7,695 
Trade and other receivables                                          17,354            16,025 
Contract assets                                                       1,840             2,819 
Guarantees retained by tenants                                          887               894 
Income tax receivable                                                   846               931 
Prepayments                                                           5,614             2,227 
Cash and cash equivalents                                           459,893           527,801 
==============================================================  ===========  ================ 
                                                                    493,944           558,392 
==============================================================  ===========  ================ 
Total assets                                                      3,606,148         3,630,063 
==============================================================  ===========  ================ 
EQUITY AND LIABILITIES 
Issued share capital                                              1,704,374         1,704,374 
Treasury shares                                                     (9,592)          (12,977) 
Share-based payment reserve                                           3,557             6,184 
Retained earnings                                                    37,187            57,783 
==============================================================  ===========  ================ 
Equity attributable to ordinary equity holders of the Company     1,735,526         1,755,364 
Non-current liabilities 
Interest-bearing loans and borrowings                             1,284,655         1,604,043 
Deferred tax liability                                              149,713           144,843 
Lease liabilities                                                    26,965            27,324 
Guarantees retained from contractors                                  2,307             2,235 
Deposits from tenants                                                 3,558             3,449 
Trade and other payables                                              1,012               692 
==============================================================  ===========  ================ 
                                                                  1,468,210         1,782,586 
==============================================================  ===========  ================ 
Current liabilities 
Interest-bearing loans and borrowings                               340,211            26,051 
Guarantees retained from contractors                                  3,417             4,032 
Trade and other payables                                             37,835            40,209 
Contract liability                                                    2,488             2,088 
Other current financial liabilities                                     552               875 
Current portion of lease liabilities                                  2,096             1,765 
Deposits from tenants                                                15,575            16,245 
Provision for tenant lease incentives                                     -                46 
Income tax payable                                                      238               802 
==============================================================  ===========  ================ 
                                                                    402,412            92,113 
==============================================================  ===========  ================ 
Total equity and liabilities                                      3,606,148         3,630,063 
==============================================================  ===========  ================ 
 

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     Tel: [phone] 
  Joint Broker) 
  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 230 professionals across Cyprus, Guernsey, Poland and Romania, a combined value of its portfolio is EUR3.1 billion, as at 30 June 2021. Approximately 95.1% 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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August 31, 2021 02:00 ET (06:00 GMT)