Strong operating performance stemming from continuosly growing income generating portfolio

2018 FINANCIAL HIGHLIGHTS

  • In-place rent increased by 18% to €130m
  • Gross margin from rental activity up by 22% to €111m
  • FFO I increased 29% to €61m, FFO per share at €0.13
  • Operating profit: 47% increase in profit before tax and fair value adjustments, to €65m
  • Profit after tax of €92m, earnings per share of €0.19
  • EPRA NAV up by 9% to €1,170m as at 31 December 2018, EPRA NAV per share at €2.42 (PLN 10.4)
  • Proposed dividend from 2018 profits increased by 12% to PLN 0.37
  • Solid financial performance
    • 13 loans were raised or refinanced, totaling approx. €400m
    • LTV at 45%
    • Weighted Average Interest Rate at historic low –2.7%
    • Investment grade rating (A2.il) for new bonds

2018 PORTFOLIO HIGHLIGHTS

  • Completion of Green Heart office buildings, Belgrade (21,600 sq m) and GTC White House office building, Budapest (21,500 sq m)
  • Acquisition of Mall of Sofia (32,700 sq m)
  • 188,700 sq m of newly leased or released space (43% more than in 2017)
  • Occupancy kept high at 94%
  • Construction of 8 office and retail properties (113,000 sq m) commenced in 2018 and will be completed in 2019-2020. Upon completion and stabilization they shall increase the in-place rent by almost €25m
  • Another 7 properties planned to commence construction during 2019-2020

Solid development activity and more “value add” acquisitions during 2018 secures further growth of GTC’s portfolio and its value appreciation. Our asset management and leasing teams could conclude ca. 190,000 sq m lease agreements during the year, confirming the quality of GTC’s office and retail portfolio. – commented Thomas Kurzmann, CEO. Significantly improved FFO and other key economic parameters allow us to recommend a dividend of PLN 0.37, an increase of 12% over the dividend of 2017. We are looking forward to completing almost 80,000 sq m of office and retail space during 2019 and this will further improve our in place rent by 15%. GTC is well-prepared for 2019 and beyond, to deliver superior value appreciation to its stakeholders. – added Thomas Kurzmann.

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GTC goes green

  • GTC’s Francuska Office Centre was granted In-Use BREEAM certificate with “Excellent” rating
  • The certificate was obtained in two categories: “Asset Performance” and “Building Management”
  • Francuska Office Centre is class A office building in the center of Katowice offering 23,000 sq. m GLA

After several months of intensive preparation works, GTC’s Francuska Office Centre has gained BREEAM certificate in “Asset Performance” and “Building Management” categories. Great efforts of the investment’s management team and the overall building’s environmental performance resulted in rating at “Excellent” level.

GTC’s Francuska Office Centre comprises two buildings with a total of 23,000 sq. m class A office space. The design of the interiors allows tenants flexible arrangement and efficient management of the space, for such uses as back-office operations, research or laboratory activity, as well as representative seat. The complex offers companies the opportunity to grow within a single office park, which is still a rare feature in Katowice.

“We are extremely satisfied that as a result of our long-term modernization policy we have obtained a certificate confirming that the Francuska Office Centre buildings meet the highest ecological standards. Francuska Office Centre obtained the BREEAM certificate in the ‘Asset Performance’ and ‘Building Management’ categories at the ‘Excellent’ level, which is a great distinction that allows the office park to be among the best office facilities of this type. Obtaining this certificate was preceded by a thorough analysis of the building, covering both energy and water consumption, waste management, health aspects and development of external areas. GTC intends to continue its efforts to ensure that both operated and newly constructed facilities meet the highest environmental standards” – commented Piotr Kroenke, GTC’s General Director.

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