Target to double EPRA NAV / share in 4-5 years

2017 HIGHLIGHTS:

  • Profit before tax up by 51% to €189m (€125m in 2016), earnings per share at €0.34, return on equity of 18%
  • EPRA NAV increased 20% to €1,073m (€897m as of 31 December 2016)
  • EPRA NAV / share increased 17% to €2.28 as of 31 December 2017 (€1.95 as of 31 December 2016)
  • Gross margin from rental activity up by 5% to €91m (87m in 2016)
  • In – place NOI up 20% to €110m
  • FFO I increased 13% to €47m (€42m in 2016), FFO I / share at €0.10
  • Recommended dividend of PLN 0.33/share, DPS up 22%
  • Average interest rate down to 8% p.a. from 3.2% p.a. in 2016, interest cover at 3.5x
  • Net LTV down to 42% from 43% in 2016
  • €79m of bonds and corporate loan issued in 4 tranches,3 new construction loans for the total amount of €151m, 7 refinanced loans for a total amount of €333m; PLN 196m bonds repaid in two tranches (May and October)

PORTFOLIO UPDATE:

  • Completions boost GAV and rent income
    • €105m development profit
  • Acquisition of income generating properties boosting rent income
    • Belgrade Business Center of 17,700 sq. m in Belgrade in September 2017
    • Cascade office building of 4,200 sq. m in Bucharest in August 2017
    • Total investment of €46m
  • Strong asset management
    • €43m revaluation gain
    • Occupancy at 94% (94% as at 31 December 2016)
    • 132,000 sq. m of office and retail space newly leased and renewed in 2017
  • Additional in place rent of €18m annually (+20% vs. 2016) net of asset sales
  • Commencement of construction of 5 projects with over 128,000 sq. m GLA; out of which 49,000 sq. m to be completed in 2018
    • GTC White House (Budapest)
    • part of Green Heart (Belgrade)
  • and 79,000 sq. m to be completed in 2019
    • Ada Mall (Belgrade)
    • part of Green Heart (Belgrade)
    • Advance Business Centre I (Sofia)
    • Matrix A (Zagreb )
  • Construction for 5 projects to start in next 12 months, with 128,400 sq. m of office space

“Our great 2017 results were driven by completion of developments and further acquisitions supported by excellent asset management of the existing portfolio. The result is significant NAV growth and strong FFO improvement” – said Thomas Kurzmann, GTC’s CEO. This year we will keep the momentum and expect a high volume of development completions again and more accretive acquisitions boosting financial key parameters again to record heights. We managed to secure attractive land plots for projects in the CBD’s of Budapest, Sofia and Zagreb providing for continuation of GTC’s expansion. We expect continuous economic growth in all of our 6 countries of operation, as we saw it in the last 2 – 3 years. On this basis we intend to considerably grow our portfolio with our existing platform and target to double our EPRA NAV\ /share in next 4-5 years” – he added.

“Through expanding our portfolio, increasing its financing capacity and self-propelling growth, we provide an attractive value creation to our shareholders. Our cash flow from operation is ever growing. With the completion of two assets at the end of 2017 and expected completions in the coming 18 months, we are able to deliver stronger dividend growth than communicated to the market last year. Being confident of our growth path, we recommend a dividend of PLN 0.33 per share to be paid from 2017 profits. This reflects a 22% DPS growth. As in the past, we would recommend to allow the shareholders to reinvest their dividend money in GTC’s new shares, if they elect to do so” – added Erez Boniel, GTC’s CFO

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