2020 FINANCIAL HIGHLIGHTS

  • Gross margin from rental activity at €119m (€128m in 2019), despite €15m impact of Covid-19
  • Operating profit: profit before tax and fair value adjustments at €66m (€73m in 2019)
  • FFO strong at €66m (€70m in 2019), FFO per share at €0.14
  • EPRA NAV at €1,112m as of 31 December 2020, EPRA NAV per share at €2.29 (PLN 10.57)
  • Solid financial metrics
    • LTV at 45% (44% as of 31 December 2019)
    • WAIR at historical low of 2.3% (2.6% as of 31 December 2019)
  • Strong liquidity position with cash and cash equivalents at €272m as of 31 December 2020
  • Investment grade rating of BBB- from Scope Rating
  • Green bonds issued in the amount of €110m in December 2020 (33% oversubscription) followed by bonds issue of €54m in March 2021 (25% oversubscription)

2020 PORTFOLIO HIGHLIGHTS

  • OFFICE: SLOWER ACTIVITY DUE TO COVID-19
    • Pandemic slows leasing activity, but it still reached 70,000 sq m in 2020:
      • Extension and prolongation of Barry Callebaut lease in UBP B, Łódź (6,000 sq m)
      • Extension and prolongation of Takeda lease in Sterlinga, Łodź (5,600 sq m)
      • Prolongation of EoN lease in City Gate, Bucharest (4,150 sq m)
      • CommerzBank chose Advance Business Centre, Sofia (3,500 sq m)
      • Generali signed a pre-lease in Matrix B, Zagreb (2,500 sq m)
    • Occupancy remained strong at 90% as of 31 December 2020 (95% in December 2019) despite new completions with lower than average occupancy
    • Completion of 3 office buildings:
      • Green Heart N3 in Belgrade (5,400 sq m);
      • Matrix B in Zagreb (10,700 sq m);
      • ABC 2 in Sofia (17,800 sq m);
    • Acquisition of a landplot in Budapest for future growth
    • Start of construction of Sofia Tower (8,300 sq m)
    • Strat of redevelopment of Center Point 1&2
  • RETAIL: PROMPT AND EFFECTIVE MEASURES TO MINIMIZE NEGATIVE EFFECTS
    • Renegotiation of contracts with retailers
    • Gross margin impacted by €15m in 2020 due  to Covid-19 lockdowns and related tenant’s support measures
    • Temporary discounts in return for material extensions allowed to keep the WALT at 3.6 years as of 31 December (4.0 years at 31 December 2019)
    • Occupancy remained strong at 95%
    • Strong rent collection: 97% of invoiced retail rent paid for 2020
    • Debt covenants relaxed or waived

During the last few years, including 2020, we have grown our property portfolio through development and smart acquisitions, tightened our financial policy and strengthened our liquidity. Our asset management teams delivered excellent service to our tenants and maintained high levels of occupancy. The Group heightened its attention to ESG matters, issued green bonds and strengthened its contribution to the well-being of the communities it creates. We are proud that these accomplishments prepared us for the unforeseen challenges posed by the outbreak of COVID-19 during 2020 – commented Yovav Carmi, GTC’s President of the Management Board.

“At the end of 2020, our property portfolio reached €2.1 billion. Total revenues were at €160 million. The Group’s EPRA net asset value now stands at €1.1 billion, reflecting the high quality of our portfolio and low leverage: net loan-to-value was 45% at year-end. GTC has a record low cost of debt averaging 2.3% and a strong net interest coverage ratio of 3.7x. Occupancy across the whole portfolio was steady at 91%. And all of that despite a very challenging environment” added Yovav Carmi, GTC’s President of the Management Board.

“GTC remained active on the capital markets in 2020, raising about €110 million of senior unsecured bonds, providing additional flexibility that will be used for a combination of debt repayment, new developments and acquisitions. We issued green bonds, further demonstrating our commitment to sustainability and financial innovation. The Group’s strong market position was also confirmed by investment grade rating BBB- by Scope Ratings. Total available liquidity of the Group was €272 million at the end of 2020. As a result, GTC’s finances are prepared for any opportunities or uncertainties which may lie ahead” – commented Ariel Ferstman, GTC’s CFO and Member of the Management Board.

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