Q3&9M 2020 FINANCIAL HIGHLIGHTS

  • Investment grade rating of BBB- from Scope Rating
  • Gross margin from rental activity at €32m in Q3 (€33m in Q3 2019) and at €91m in 9M (€94m in 9M 2019), despite impact of Covid-19 amounting to €2m in Q3 and €10m in 9M
  • Operating profit: profit before tax and fair value adjustments up to €21m in Q3 (€15m in Q3 2019) and at €52m in 9M (€53m in 9M 2019)
  • FFO I increased 5% to €54m (€52m in 9M 2019), FFO per share at €0.11
  • EPRA NAV at €1,174m as at 30 September 2020, EPRA NAV per share at €2.42 (PLN 10.95 at EUR/PLN 4.5268)
  • Solid financial metrics
    • LTV at 45% (44% as of 31 December 2019)
    • WAIR at historical low of 2.5% (2.6% as of 31 December 2019)
  • Cash and cash equivalents amounted to €139m as of 30 September 2020

Q3&9M PORTFOLIO HIGHLIGHTS

  • OFFICE: RESILIENCE CONTINUES
    • Occupancy remained strong at 94% as at 30 September 2020 (95% in December 2019)
    • No collection problem
    • Spiral office building sold in October 2020
    • New lease agreements for a total of 10,000 sq m signed in Q3 2020 including:
      • Extension and prolongation of Barry Callebaut lease in UBP B, Łódź (6,000 sq m)
    • Additionally, Generali signed a pre-lease in Matrix B, Zagreb for 2,500 sq m
    • Commencement of construction of Sofia Tower 2
  • RETAIL: GRADUALLY RETURNING IN Q3 2020, BEFORE SECOND WAVE OF COVID-19 IN NOVEMBER
    • Occupancy remained strong at 93%
    • Footfall at 76% in September 2020, down to 69% in October following increased number of infections
    • September sales on average at 87% vs last year, down to 83% in October 2020 following increased number of infections
    • Still higher conversion and average basket
    • Expected further decline as Polish malls practically closed between 7 and 27 November 2020
    • Loss of rental revenues due to impact of COVID-19 of €10m in 9M 2020
    • Collection rate at 92% in 9M 2020
    • Temporary discounts in return for material extensions allowed to keep the WALT at 3.7 years as of 30 September 2020 (4.0 years at 31 December 2019)
  • Retailers continue to expand: largest Sinsay in Poland signed in Galeria Północna (2,700 sq m)

“The third quarter of 2020 showed some improvement, before we saw a second wave of COVID-19. The office sector remained resilient, while the retail sector was gradually returning to its pre COVID state with tenants’ turnover achieving on average 87% of 2019 numbers. We kept our occupancy rate virtually unchanged as our team responded effectively to the challenges of COVID-19. On the financial side new completions during last 12 months allowed us to offset a decrease in revenues resulting from pandemic situation and lead to 5% increase in FFO underpinned with strong collection rates. We commenced Sofia Tower 2, a class A office building above our Mall of Sofia shopping mall and we closed sale of Spiral in October looking forward to the next opportunities in the region to grow further our office portfolio. All our efforts and healthy Groups situation were confirmed with investment grade rating BBB- by Scope Ratings which we did in preparation for green bonds issue on Hungarian market.” – commented Yovav Carmi, GTC’s President of the Management Board.

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