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GLOBE TRADE CENTRE S.A. - Q3 and 9 months period ended 30 September 2020 unaudited

Release Date: 24/11/2020 08:05
Code(s): GTC     PDF:  
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Q3 and 9 months period ended 30 September 2020 unaudited

(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”)

Q3 & 9M 2020 RESULTS (Q3 and 9 months period ended 30 September 2020 unaudited)

    EUR 91M                      EUR 52M                     EUR 54M            EUR 1,174M
Q3 & 9M 2020 FINANCIAL HIGHLIGHTS                                          Q3&9M PORTFOLIO HIGHLIGHTS

- Investment grade rating of BBB- from Scope Rating                        OFFICE: RESILIENCE CONTINUES
- Gross margin from rental activity at EUR 32m in Q3 (EUR                  - Occupancy remained strong at 94% as at 30 Sep. 2020 (95%
  33m in Q3’19) and at EUR 91m in 9M (EUR 94m in                             in Dec. 2019)
  9M’19), despite impact of Covid-19 amounting to EUR 2m                   - No collection problem
  in Q3 and EUR 10m in 9M                                                  - Spiral office building sold in October 2020
- Operating profit: profit before tax and fair value                       - New lease agreements for a total of 10,000 sq m signed in
  adjustments up to EUR 21m in Q3 (EUR 15m in Q3’19)                         Q3’20
  and at EUR 52m in 9M (EUR 53m in 9M’19)                                  - Commencement of construction of Sofia Tower 2
- FFO I increased 5% to EUR 54m (EUR 52m in 9M’19),                        RETAIL: GRADUALLY RETURNING IN Q3 2020, BEFORE
  FFO per share at EUR 0.11                                                SECOND WAVE OF COVID-19 IN NOVEMBER
- Profit after tax of EUR 17m in Q3 (EUR 20m in Q3’19),                    - Occupancy remained strong at 93%
  profit per share of EUR 0.04 (EUR 0.04 in Q3’19)                         - Footfall at 76% in September 2020, down to 69% in October
- Lost after tax of EUR 17m in 9M (EUR 63m profit in                         following increased number of infections
  9M’19), loss per share of EUR 0.03 (EUR 0.13 profit per                  - September sales on average at 87% vs last year, down to
  share in 9M’19)                                                            83% in October 2020 following increased number of infections
- EPRA NAV at EUR 1,174m as at 30 Sep. 2020, EPRA                          - Still higher conversion and average basket
  NAV per share at EUR 2.42                                                - Expected further decline as Polish malls practically closed
- Solid financial metrics: LTV at 45% (44% as of 31                          between 7 and 29 November 2020
  Dec.2019) and WAIR at 2.5% (2.6% as of 31 Dec. 2019)                     - Loss of rental revenues due to impact of COVID-19 of
- Cash and cash equivalents amounted to EUR139m as of                        EUR10m in 9M 2020
  30 Sep. 2020                                                             - Collection rate at 92% in 9M 2020
- BDO, the group's independent auditor, has expressed an                   - Temporary discounts in return for material extensions allowed
  unqualified review conclusion on the unaudited interim                     to keep the WALT at 3.7 years as of 30 Sep. 2020 (4.0 years
  condensed consolidated financial statements.                               at 31 Dec. 2019)


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. Group’s portfolio comprises: (i)
completed commercial properties; (ii) commercial properties under construction; (iii) a commercial landbank intended for future
development (iv) assets held for sale and (v) residential landbank.

Since its establishment and as a of 30 September 2020 the Group has: (i) developed approximately 1.2 million sq m of gross
commercial space and approximately 300 thousand sq m of residential space; (ii) sold approximately 570 thousand sq m of gross
commercial space in completed commercial properties and approximately 300 thousand sq m of residential space; and (iii)
acquired approximately 150 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 the Czech Republic.
As of 30 September 2020, the Group`s property portfolio comprised the following properties:
    • 45 completed commercial buildings, including 40 office buildings and five retail properties with a total combined commercial
      space of approximately 716 thousand sq m of GLA;
    • assets held for sale, including one completed office building with a total commercial space of approximately 31 thousand
      sq m of GLA;
    • four office buildings under construction with total GLA of approximately 66 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, and
can be found on the Company’s website at Any investment decision should be based on the full announcement
Management Board                  Supervisory Board               Mariusz Grendowicz
Yovav Carmi (CEO)                 Zoltán Fekete (Chairman)        Marcin Murawski
Ariel Alejandro Ferstman          János Péter Bartha              Bálint Szécsényi
Gyula Nagy                        Péter Bozó                      Ryszard Wawryniewicz
Robert Snow                       Balázs Figura
Registered office of the Company                       Date: 24 November 2020
KOR 45A, 02-146 Warsaw, Poland                         Sponsor: Investec Bank Limited
(1) FFO - profit before tax less tax paid, after adjusting for non-cash transactions (such as fair                         
          value or real estate re-measurement, share base payment provision and unpaid financial expenses) and             
          one off items (such as FX differences and residential activity);
(2) EPRA NAV - total equity less non-controlling interest, less: deferred tax liability related to real estate assets and derivatives at fair value.
Date: 24-11-2020 08:05:00
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