Globe Trade Centre S.a. · GPW:GTC
Globe Trade Centre — H1 2022 Earnings Presentation
38 slides from Globe Trade Centre's earnings presentation, Aug 24, 2022
Slide 1: H1 2022 Results Investor Presentation
GTC|® H1 2022 RESULTS Investor Presentation 24 August 2022
Slide 2: Contents
CONTENTS Key highlights H1 2022 Portfolio Development projects Operations and financials Strategy expansion and potential capital increase Additional materials 19 23 GTC|®S H1 2022 RESULTS. > Investor Presentation 24 August 2022
Slide 3: Financial Results: Strong H1 2022
FINANCIAL RESULTS Strong H1 2022 financial results + Rental revenues up to €84m in H1 2022 (€79m in H1 2021) + Gross margin from rental activity up to €62m in H1 2022 (€59m in H1 2021) + Adjusted EBITDA up to €53m in H1 2022 (€52m in H1 2021) + FFO | at €34m in H1 2022 (€31m in H1 2021), FFO per sha
Slide 4: Office: New Projects in the Portfolio Combined with Stronger Leasing Activity
OFFICE: NEW PROJECTS IN THE PORTFOLIO COMBINED WITH STRONGER LEASING ACTIVITY Green office portfolio with 88% of assets certified + Disposal of Cascade office building in July 2022 + SPA signed for sale of Forest Offices Debrecen + Selling price slightly above book value - HUF 19bn (€48.1m) * The cl
Slide 5: Retail: Back to Pre-Covid Levels
RETAIL: BACK TO PRE-COVID LEVELS Retailers continue to expand Occupancy at 95% as of 30 June 2022 (95% as of 31 December 2021) We are seeing a positive trend in all malls, footfall is growing, and turnover exceeded pre-Covid levels (113%' in Q2 2022 vs 2019 and 140% in Q2 2022 vs 2021; 112% in July
Slide 6: Retail: Footfall and Turnovers Picking Up Quickly
RETAIL: FOOTFALL AND TURNOVERS PICKING UP QUICKLY TOWARD 2019 STATS Group footfall and turnover change (2022/2021/2020 vs. 2019) == FOOTFALL ====TURNOVER 86% Jul21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21 Jan* 22 Feb* 22 Mar*22 Apr'22 May* 22 Jun 22 Jul 22 Turnover Galeria Jurajska Galeria Pélnocna Ada Ma
Slide 7: Contents
CONTENTS Key highlights H1 2022 Portfolio Development projects Operations and financials Budget Potential capital increase Additional materials 21 23 GTC|®S H1 2022 RESULTS. > Investor Presentation 24 August 2022
Slide 8: High Quality Property Portfolio with Focus on Offices
HIGH QUALITY PROPERTY PORTFOLIO WITH FOCUS ON OFFICES + 88% of GAV base is recurring income-producing TOTAL PORTFOLIO (BOOK VALUE) + 65% of recurring income-producing portfolio is office Project under construction Landbank Huneary - Belgrade 32% (incl. landbank Va held for sale) + Active development
Slide 9: Contents
CONTENTS Key highlights H1 2022 Portfolio Development projects Operations and financials Strategy expansion and potential capital increase Additional materials 19 23 GTC|®S H1 2022 RESULTS. > Investor Presentation 24 August 2022
Slide 10: Pipeline of Development Projects
PIPELINE OF DEVELOPMENT PROJECTS 12% of portfolio in development projects and land reserve UNDER CONSTRUCTION PROJECTS KEY PROJECTS UNDER CONSTRUCTION METRICS Zagreb oe 30 june 31 Dec 2021 10% : Gross asset value (€M) 76 132 Lettable area (ths. sqm) 50 54 Belgrad 18% Office segment share 100% 100% S
Slide 11: Office Focused Development Pipeline: Under Construction
OFFICE FOCUSED DEVELOPMENT PIPELINE 50,100 sq m of class A offices under construction to be completed in 2022/24 with €10.2m expected rental income space €19.1m > Under vrvy > 8,100 sq m new office > Total investment cost of > Expected rental income upon stabilization of €1.6m > HOT signed for 31% o
Slide 12: Office Focused Development Pipeline: Ready to Launch
OFFICE FOCUSED DEVELOPMENT PIPELINE 118,400 sq m of class A offices and 22,000 sq m of residential space ready to be launched in 24 months > Phased priect. > Expected completion: >» Expected completion @4 2024 ° 72,500 sqm of the whole project: > Total cost: : 04 2026 €18.4m > Total cost: €161.6m >
Slide 13: Contents
CONTENTS Key highlights H1 2022 Portfolio Development projects Operations and financials Strategy expansion and potential capital increase Additional materials 19 23 GTC|®S H1 2022 RESULTS. > Investor Presentation 24 August 2022 13
Slide 14: Income Statement
INCOME STATEMENT Newly acquired assets drove the growth (€m) H1 2022 H1 2021 Revenue from rental activity Ge 79 BREAK DOWN OF OPERATING MARGIN (BRIDGE) Cost of rental operations (22) (20) 58.8 (9.5) 8.3 07 ao ere Gross margin from operations c) 62 59 i | i | — G&A expenses w/o share based provision
Slide 15: Balance Sheet
BALANCE SHEET (em) 30 June 31 December 2022 2021 Investment property (excl. right of use) 2,198 2,202 Residential landbank (excl. right of use) 26 26 Right of use 40 40 Assets held for sale ng 292 Property, plant and equipment 7 8 Loan granted to non-controlling interest partner a a Cash & cash equi
Slide 16: Strength of Debt Metrics
STRENGHT OF DEBT METRICS Confirmed by investment grade ratings of BBB- by Scope, BBB- by Fitch and Bal by Moody’s KEY CREDIT METRICS DEBT MATURITY (€m) 735 @ Loans to be recycled € ee @ Bonds @ Regular amortization 2 B 4.5y c. €1.3bn Weighted average debt maturity total debt (years) 212 126 A ® 44 9
Slide 17: Cash Flow
CASH FLOW (€m) H1 2022 H1 2021 Operating activities Operating cash before working capital changes 53 52 Add / deduct: Change in working capital (3) - Interest paid, net @1) (21) Tax (9) (6) Cash flow from operating activities 20 25 Investing activities Investment in real estate (1) (94) (245) Change
Slide 18: Contents
CONTENTS Key highlights H1 2022 Portfolio Development projects Operations and financials Strategy expansion and potential capital increase Additional materials 21 23 GTC|®S H1 2022 RESULTS. > Investor Presentation 24 August 2022 18
Slide 19: Strategy Expansion
Strategy expansion Fundamental requirements for new sectors + Diversification to new growing real estate based sectors without deconcentrating on the core business + Investment in sectors with higher sustainable growth potential compared to the existing real estate portfolio + Expected returns at le
Slide 20: Strategy Expansion: Kildare Innovation Campus Transaction Rationale
Strategy expansion Kildare Innovation Campus transaction rationale + Ireland is one of Europe’s largest data centre hubs with 70 facilities operating across the state and more earmarked. At present Dublin is home to 25.0% of all technology and innovation centers in Europe. Major tech firms including
Slide 21: Potential Capital Increase
Potential capital increase To support new strategy and deleveraging + GTC will finance its strategy expansion with its own funds, however it may also require new equity + With the current debt level and yield on GTC’s bonds, GTC may seek to deleverage + The potential capital increase will be in the
Slide 22: Contents
CONTENTS Key highlights H1 2022 Portfolio Development projects Operations and financials Strategy expansion and potential capital increase Additional materials 19 23 GTC|®S H1 2022 RESULTS. > Investor Presentation 24 August 2022 22
Slide 23: Key Shareholder Information
KEY SHAREHOLDER INFORMATION BASIC SHARE INFORMATION Symbol GTCSA. Share price (10/08/2022) PLN 686 ISIN PLGTCO000037 Performance 12M +2% Primary exchange Warsaw Stock Exchange Market capitalization’ PLN 3.9bn / €0.85n Shares outstanding 574.3 million SHARE PERFORMANCE 12M Currency: PLN GTC WIG. 75.0
Slide 24: Leading Commercial Real Estate Platform
LEADING COMMERCIAL REAL ESTATE PLATFORM ASSETS LOCATION BY GAV annualized i book value js GLA GTC portfolio # (em) % in: Place tent (ths. sqm) Assets for Income generating (a+b) 45 2,063 88% 137 762 stungary Oa 32% a) Office (incl. AHFS) 39 1,335.4 57% 89% 558 TOTAL GAV 9 2 €2,344m iti b) Retail 6 7
Slide 25: Office Portfolio Overview
OFFICE PORTFOLIO OVERVIEW Sustainable high occupancy of prime office buildings provides solid recurring income OFFICE ASSETS OVERVIEW €1,335m €89m 39 558,000 6.5% GAV annualized in-place rent buildings sqm GLA Yield GREEN CERTIFICATION OCCUPANCY RATE LOCATION by GAV 9 94% 95% 2 92% 93% 93% 93% 90% g
Slide 26: Retail Portfolio Overview
RETAIL PORTFOLIO OVERVIEW Landmark shopping centers in local markets RETAIL ASSETS OVERVIEW 8) (a (antit ay €727m €48m 204,000 6.6% GAV annualized in-place rent buildings sqm GLA Yield GREEN CERTIFICATION BREEAM LEED 29% 59% 88% assets with green certification Under certification 12% OCCUPANCY RATE
Slide 27: High Quality Portfolio and Diversified Tenant Base
HIGH QUALITY PORTFOLIO AND DIVERSIFIED TENANT BASE HELPS TO MITIGATE CHALLENGES TENANTS’ BASE BLUE CHIP TENANTS + Strong retention rate across the portfolio Total rent % annualized Top 10 tenants (€m) in place rent + GTC’s organic growth strategy and the corresponding high share of own ExxonMobil 5.
Slide 28: Green Certification
GREEN CERTIFICATION Sustainability is our goal INCOME PRODUCING ASSETS (BOOK VALUE) BREEAM 37% 29% y 88% assets with green certification 88% assets with green certification ~ Under ~ certification LEED 11% 48% 4 __ No certification \ Under | DGNB 1% \ 3% We have been recognized for our ESG affords:
Slide 29: Portfolio: Income Generating Properties
PORTFOLIO: INCOME GENERATING PROPERTIES Poland Hungary” Belgrade Zagreb Bucharest Sofia Total’ OFFICE PROJECTS’ Number of buildings 16 12 - 3 5 3 39 Total GLA (ths. sq m) 196 223 - 28 67 44 558 Book value (€m) 371 629 - 66 173 96 1,335, Average rent (€/sq m) 141 16.1 - 15.3 19.2 14.9 15.6 Average oc
Slide 30: Property Overview
PROPERTY OVERVIEW High quality assets base in Poland, Hungary and capital cities of CEE Top properties Asset class Country City Book value GLA Rent€ Occupancy €M ths.sqm — /Sam/ month % Galeria Poinocna =] Poland Warsaw 256 65 195 92% Galeria Jurajska =] Poland Czestochowa —191 49 226 96% City Gate
Slide 31: Unique Development Pipeline
UNIQUE DEVELOPMENT PIPELINE Unlocking significant embedded value through development projects City Total GLA Investment Total investment Expected Revaluation —_ Book value Expected — Expected (ths. sqm) cost (€M) cost (€M) in-place rent gain recognized (€m) development yield / completion (em) cm) Ex
Slide 32: Funds From Operations (FFO 1)
FUNDS FROM OPERATIONS (FFO 1) Robust acquisitions and developments drive FFO | FFO! (€m) 70 74 66 61 47 42 38 3 (4 >» FFO | per share of €0.06 » — Robust operational performance >» — Significant development pipeline to further boost FFO | » — Solid basis for sustainable and long term dividend policy
Slide 33: EPRA NTA
EPRA NTA EPRA NTA (€m) 1,32 1,272 1326 1,170 1,073 42 897 779 614 31Dec'l4 31Dec'IS 31Dec'l6 31Dec'l7 31Dec'I8 31Dec'l9 31Dec'20 31Dec'21 30 Jun'22 1,200 EPRA NTA per share €2.21(PLN 10.18) 31 Dec 2021 €2.31 (PLN 10.81) 30 Jun 2022 EPRA NTA bridge EPRA NTA growth momentum (em) 136 1,326 1,168 ie) 38
Slide 34: Debt and LTV
DEBT AND LTV 31 DECEMBER 31 DECEMBER 30 JUNE 2022 2021 Loans and bonds 1,261 1,299 1,441' Loans from minorities (8) (9) (9) Deferred debt expenses 9 N 1 Bank loans and bonds 1,262 1,301 1,443 Cash & cash equivalents & deposits 274? 362 128 Net debt 987 939 1,315 ivestment mopereyasetseidfor an 2272
Slide 35: Useful Information
USEFUL INFORMATION INVESTOR CONTACT ESG Matgorzata Czaplicka Investor Relations Director T: +48 22 16 60 710 EPRA [email protected] sBPR FINANCIAL CALANDAR g 9.09.2022 Dividend record date 18.10.2022 Dividend payment date 16.11.2022 Publication of Q3 2022 report Corporate governance 2021 ESG rep
Slide 36: Definitions
DEFINITIONS AVERAGE YIELD calculated as in-place rent divided by fair value of asset FFO profit before tax less tax paid, after adjusting for non-cash transactions (such as fair value or real estate remeasurement, depreciation and amortization share base payment provision and unpaid financial expens
Slide 37: Definitions
DEFINITIONS ADJUSTED EBITDA consolidated profit/(loss) of the Group before taxes, depreciation, amortisation and impairments, non-controlling interest and share of profit/(loss) of joint ventures, excluding any fair value adjustments, the net result on sale of financial investments, financial income
Slide 38: Disclaimer
DISCLAIMER THIS PRESENTATION IS NOT FOR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN. THIS PRESENTATION IS NOT AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. BY ATTENDING OR VIEWING THIS PRESENTATION, YOU ACKNOWLEDGE AN