Globe Trade Centre more than tripled net profit in H1 2006.
In Q2 2006 GTC recorded USD46,4m profit, up 822% from Q2 2005.
Investment pace has accelerated

 

First half of 2006 was a record 6 months in Globe Trade Centre history. The Company achieved USD134.6m profit for the period, up more than 224% from a year ago.

In Q2 2006 GTC recorded the profit of USD46.4m, more than nine-fold increase comparing to Q2 2005.

The quarterly operating profit also indicated strong earnings momentum, growing to USD55.3m vs. USD15.8m in Q2 2005.

Rental revenues continued to grow in the second quarter of this year. However the financial statements for the first time include results of sale of 50% interest in Galeria Kazimierz, decreasing the revenues from the shopping centre for GTC by 50% respectively.

An increase in rental income resulted mainly from revenues produced by newly completed buildings: America House in Bucharest (27,000sqm NRA) and Topaz in Warsaw (11,000sqm NRA), in addition to increased occupancy in existing buildings.

In Belgrade GTC House achieved an impressive 77.6% margin on rental income in Q2 2006, as new tenants commenced their lease terms and rent free periods passed by for running leases.

In Q2 2006 Centerpoint 2 has been revaluated, contributing USD39m profit before tax to the bottom line. Centerpoint office complex is one of the largest A-class office buildings in the region, with total net rentable area of 41,000sqm in two phases and boasting Exxon Mobile as its largest tenant.

Income from Riverloft Apartments in Budapest showed increased gross margin on sales, growing from 25% in Q1 2006 to 29% in Q2 2006.

In Q2 2006 GTC booked sales revenues from Osiedle Konstancja III at the same level as costs, as the phase is still under construction, hence average gross margin on total residential sales on consolidating level was adversely affected.

Leasing activity in GTC offices maintained robust pace: several key tenants in Mokotów Business Park extended their leases, Globis Poznań reached 100% occupation, while Newton in Kraków is fully let to prime tenants six months before completion.

As part of its strategy, GTC is accelerating the investment speed in major cities outside Warsaw: in Kraków a high-class residential complex is under development, while construction of 10,000sqm Edison building is scheduled to commence this year. In Wrocław construction of 14,000sqm A-class office building is under way. In Łódź GTC acquired two sites for office development with total buildings rights estimated at 50,000sqm NRA, while in Poznań prestigious residential project for 200 apartments was just acquired.

At the same time the Company is continuously growing in Hungary, Czech Republic, Romania, Serbia and Croatia. In 2006 GTC commenced operations in Slovakia, Bulgaria and Moldova.

In Budapest GTC purchased three new sites for office development (total 170,000 sqm of building rights), while in Belgrade a third office project of approx. 24,000sqm was acquired. In Romania following the acquisition (together with partners) of 10hect residential site, a prestigious 44,000sqm office project in the centre of Bucharest, and three shopping centre sites in mid-size cities, GTC’s portfolio reached nearly 500,000sqm of building rights.
On the sea coast of Croatia GTC is going to develop together with partners a luxurious residential complex and a 5-star hotel next to a full-size professional golf course.

In Slovakia GTC started investments with 500-unit high-class apartment complex in Bratislava, while in Bulgaria GTC acquired a site close to American Embassy in Sofia for 15,000sqm office project. In Chisenau – capital city of Moldava GTC purchased 12,000 sqm A-class office building under construction that will be completed in early 2007.

Globe Trade Centre S.A.

KOR 45A, 02-146 Warsaw NIP: 527-00-25-113 T: +48 22 16 60 700 www.gtc.com.pl

GTC countries Bulgaria Croatia Hungary Poland Romania Serbia

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