Q1 2021 FINANCIAL HIGHLIGHTS

  • Gross margin from rental activity at €27m (€30m in Q1 2020), despite €2.4m impact of COVID-19 in Q1 2021 (€4.5m impact to pre-COVID levels of Q1 2019)
  • Operating profit: profit before tax and fair value adjustments at €15m (€13m in Q1 2020)
  • FFO strong at €14m (€18m in Q1 2020), FFO per share at €0.03
  • EPRA NAV at €1,123m as of 31 March 2021, EPRA NAV per share at €2.31 (PLN 10.77)
  • Solid financial metrics:
    • LTV at 45.5% (45% as of 31 December 2020)
    • WAIR at historical low of 2.3% (2.3% as of 31 December 2020)
  • Strong liquidity position with cash and cash equivalents at €254m as of 31 March 2021
  • Green bonds issued in the amount of €54m in March 2021 (25% oversubscription)

Q1 2021 PORTFOLIO HIGHLIGHTS

  • OFFICE: ACTIVITY STRONGER THAN IN 2020
    • Leasing activity focused mostly on prolongations reached close to 40,000 sq m
    • Occupancy remained strong at 90% as of 31 March 2021 (90% in December 2020)
    • €212m invested in Q2 2020 into fully leased offices in Budapest with long WAULT and blue chip tenants will contribute €11.8m p.a. to our in-place rent
  •  RETAIL: COVID-19 STILL VISIBLE IN Q1 2021 RESULTS HOWEVER CURRENTLY 100% OF SPACE OPERATIONAL
    • Lockdowns in Poland, Bulgaria and Serbia lead to an impact on gross margin of €2.4m in Q1 2021
    • Currently, 100% of our retail GLA is allowed to trade
    • Retailers continue to expand
    • Occupancy improved to 96% as at 31 March 2021

First quarter was extremely busy. As all the businesses around the world we were focus on mitigating the COVID-19 impact. But we already saw a more positive sentiment compared to 2020. Our office leasing activity improved significantly from 70,000 sq m in the whole 2020 to almost 40,000 in the first quarter 2021 itself. Also retail saw some significant lease agreements and openings. Additionally, we proceeded with our acquisition plans and invested EUR 212m in the prime offices in Budapest acquiring Vaci Green D, Ericsson Headquarter and Siemens Evosoft Headquarter, which are fully leased to blue chip tenants and will contribute significantly to our annual NOI. Those acquisitions further complement and boost our green office portfolio in CEE and are a part of our strategy of refocusing more on Poland and Budapest. We financed the acquisitions with our own funds combined with bank financing and green bonds issued in late 2020 and early 2021.” – commented Yovav Carmi, GTC’s President of the Management Board.

“On the top of acquisitions we were also preparing GTC to the change of our financing structure and move from individual bank loans for particular projects to unsecured bond funding. We would like to tap the liquid bonds market for more flexible and hassle free instruments, similarly to our regional peers who successfully approached the bond markets recently. We aim to issue the Eurobonds still prior to the summer.” – commented Ariel Ferstman, GTC’s CFO and Member of the Management Board.

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