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GLOBE TRADE CENTRE S.A. - 9M 2019 Results

Release Date: 14/11/2019 08:00
Code(s): GTC     PDF:  
 
Wrap Text
9M 2019 Results

GLOBE TRADE CENTRE S.A.
(Incorporated and registered in Poland with KRS No. 61500)
(Share code on the WSE: GTC.S.A)
(Share code on the JSE: GTC ISIN: PLGTC0000037)
(“GTC” or “the Company”)

9M 2019 RESULTS


                                                                                                                           
GROSS MARGIN FROM                             PROFIT BEFORE TAX AND                               FFO(1) I                     EPRA NAV(2)
 RENTAL ACITIVITY                             FAIR VALUE ADJUSTMENTS                                                      (post dividend of 4.3%)
      EUR 94M                                      EUR 53M                                       EUR 52M                       EUR 1,191M
        +13%                                         +10%                                          +11%                            +2%


9M 2019 FINANCIAL HIGHLIGHTS    
                                                                                                            - EUR 38m distributed in the form of cash dividend
       - In-place rent increased 14% to EUR 144m; like-for-like                                             - Issue of 2,018,126 Series N shares
         in-place rent increased by EUR 4.1m and new assets
         contributed EUR 16.5m                                                                       Q3 2019 PORTFOLIO HIGHLIGHTS
         
       - Gross margin from rental activity up by 13% to EUR 94m                                           - High occupancy was maintained at 94% (94% as of 31
         (EUR 83 in 9M 2018)                                                                                December 2018)
                                                                                                            o 123,600 sq m leased or released space in Q3 2019
       - FFO(1) I increased 11% to EUR 52m (EUR 46m in 9M                                                     and 204,700 sq m in 9M 2019
         2018), FFO per share at EUR 0.11                                                        

       - Operating profit: 10% increase in profit before tax and                                          - Completion of two properties:
         fair value adjustments to EUR 53m (EUR 48m in 9M                                                   o Green Heart N1, a 13,100 sq m Class A office
         2018)                                                                                                building in Belgrade
                                                                                                            o Matrix A, a 10,800 sq m Class A office building in
       - Profit after tax of EUR 63m in 9M 2019 (EUR 69m in 9M                                                Sofia     
         2018)
                                                                                                         - Disposal of GTC White House, a 21,600 sq m Class A
       - Earnings per share of EUR 0.13 m in 9M 2019                                                       office building in Budapest             
                                                                                                          
       - Solid financial metrics                                                                         - Commencement of construction and full lease up of                            
          o LTV at 44% (45% as of 31 December 2018)                                                        Pillar, a 29,000 sq m Class A office building in Budapest           
          o WAIR at historic low of 2.6% (2.7% as of 31                                                                                                                       
            December 2018)                                                                                 4 office buildings under construction to bring EUR 12.2m
                                                                                                           rent upon completion and stabilization.
       - Dividend of PLN 0.37/share paid; dividend yield of 4.3%                                                                                                     
                                                                                                            
                                                                                                                     

NATURE OF BUSINESS

  The GTC Group is a leading real estate investor and developer focusing on Poland and capital cities in Eastern and Southern
  Europe - Belgrade, Budapest, Bucharest, Zagreb and Sofia. The Group was established in 1994.
  Since its establishment and as at 30 September 2019 the Group has: (i) developed over 1.2 million sq m of gross commercial space
  and over 300 thousand sq m of residential space; (ii) sold over 550 thousand sq m of gross commercial space in completed
  commercial properties and approximately 300 thousand sq m of residential space; and (iii) acquired over 151 thousand sq m of
  commercial space in completed commercial properties. Additionally, GTC Group developed and sold over 100 thousand sq m of
  commercial space and approximately 76 thousand sq m of residential space through its associates in Czech Republic.
  
  As of 30 September 2019, the Group`s property portfolio comprised the following properties:
          •   46 completed commercial buildings, including 41 office buildings and five retail properties with a total combined
              commercial space of approximately 746 thousand sq m of GLA,
          •   1 completed office buildings presented as asset held for sale, with a total combined commercial space of
              approximately 16 thousand sq m of GLA,
          •   four office buildings under construction with total GLA of approximately 63 thousand sq m,
          • commercial landbank designated for future development; and
          • residential landbank designated for sale.

  This short form announcement is the responsibility of the directors and is only a summary of the information in the full announcement.
  The full announcement is available at https://senspdf.jse.co.za/documents/2019/jse/isse/GTCE/Q3Results.pdf, and can be found
  on the Company’s website at www.ir.gtc.com.pl. Any investment decision should be based on the full announcement published .

              Board Management                                              Supervisory Board
              Thomas Kurzmann                                               Alexander Hesse (Chairman)                             Ryszard Koper
              (Chief Executive Officer)                                     Olivier Brahin                                         Marcin Murawski
              Erez Boniel                                                   Jan-Christoph Düdden                                   Katharina Schade
              (Chief Financial Officer)                                     Mariusz Grendowicz                                     Ryszard Wawryniewicz
                                                                            Patrick Haerle
Registered office of the Company                                                                     Date: 14 November 2019
KOR 45A, 02-146 Warsaw, Poland                                                                       Sponsor: Investec Bank Limited

Footnotes:                                                                                            
(1) FFO - profit before tax less tax paid, after adjusting for non-cash transactions(such as fair     (2) EPRA NAV - total equity less non-controlling interest, less: deferred tax liability related to real   
    value or real estate re-measurement, share base payment provision and unpaid financial                estate assets and derivatives at fair value.
    expenses) and one off items (such as FX differences and residential activity);

Date: 14/11/2019 08:00:00
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