Globe Trade Centre S.a. · GPW:GTC
Globe Trade Centre — FY2013 Earnings Presentation
34 slides from Globe Trade Centre's earnings presentation, Mar 20, 2014
Slide 1: 2013 Results Investors Presentation
2013 RESULTS INVESTORS PRESENTATION 20 March 2014
Slide 2: Agenda
AGENDA 1. 2013 highlights 3 2. Strategy 7 3. Market overview 9 4. Portfolio overview 12 5. Key financial results 17 6. Additional materials 29 2
Slide 3: 2013 Financial Highlights
2013 HIGHLIGHTS I 2013 FINANCIAL HIGHLIGHTS Improvement in cash flow from operations Cash flow from operations improved from €16m in 2012 to €28m in 2013 mainly due to: • a decrease in financial expenses by €19m • a decrease in G&A expenses by €2m • an improvement in like-for-like NOI by €2m Reducti
Slide 4: 2013 Key Achievements
2013 HIGHLIGHTS I 2013 KEY ACHIEVEMENTS Commencement of construction of Pascal • 5,500 sq m office building in Korona Office Complex to be completed in Q2 2014 First leases for Galeria Północna and Galeria Wilanów signed • LPP will lease over 4,600 sq m in Galeria Wilanów and over 4,700 sq m in Gale
Slide 5: 2013 Highlights: Corporate Update
2013 HIGHLIGHTS I CORPORATE UPDATE Liquidity issues resolved • capital increase of €52m in January 2014 • bonds issue of €48m in March 2014 • pro forma LTV (bonds issue, bonds repayment and capital increase) at 51% Change of the shareholding structure • Lone Star became the main shareholder in Novem
Slide 6: Agenda
AGENDA 1. 2013 highlights 3 2. Strategy 7 3. Market overview 9 4. Portfolio overview 12 5. Key financial results 17 6. Additional materials 29 6
Slide 7: Short–Medium Term Strategy
STRATEGY I SHORT – MEDIUM TERM STRATEGY Our mission is to create value from: • Active management of a growing commercial real estate portfolio in CEE and SEE supplemented by selected development activities, and • Enhance deal flow, mitigate risks and optimize performance through our regional platfor
Slide 8: Agenda
AGENDA 1. 2013 highlights 3 2. Strategy 7 3. Market overview 9 4. Portfolio overview 12 5. Key financial results 17 6. Additional materials 29 8
Slide 9: Market Overview: Office Market
MARKET OVERVIEW I OFFICE MARKET Prime rent (€/sq m/mth) and vacancy rate (%)* 25 24 20% 18% 21 20 17% 19 15% 19 16 15% 15 15 15 14% 13% 10% 12% 11% 10 5% 5 0 0% Zagreb Prague Warsaw Bucharest Belgrade Bratislava Budapest Prime rent (EUR/sq m/mth) Vacancy rate (%) Completions , gross take-up and futu
Slide 10: Market Overview: Retail Market
MARKET OVERVIEW I RETAIL MARKET Prime rent (€ /sq m/mth) and vacancy rate (%)* 120 100 14% 100 95 12% 80 10% 80 10% 10% 10% 65 60 8% 60 60 8% 45 6% 40 4% 3% 2% 4% 20 2% 0 0% Zagreb Prague Warsaw Bucharest Belgrade Bratislava Budapest Prime rent (EUR/sq m/mth) Vacancy rate (%) Completions ('000 sq m)
Slide 11: Agenda
AGENDA 1. 2013 highlights 3 2. Strategy 7 3. Market overview 9 4. Portfolio overview 12 5. Key financial results 17 6. Additional materials 29 11
Slide 12: Portfolio Overview
PORTFOLIO OVERVIEW Total portfolio by sector Income generating assets* - value by country Total: €1,518m Total: 1,127m Slovakia Bulgaria €16m As of 31 December 2013 As of 31 December 2013 €65m 1% 6% Residential 8% Serbia €106m 9% Poland €443m Hungary 39% € 162m 14% Croatia Retail €143m Romania 35% 1
Slide 13: Portfolio Valuation and Lease Length by Sector
PORTFOLIO OVERVIEW I PORTFOLIO VALUATION AND LEASE LENGTH BY SECTOR Like – for – like change Book value Portfolio in book value Lease length As at 31 December 2013 €m % 12 mths % yrs OFFICE Poland 293 26% -2% 3.6 Romania 158 14% -7% 3.8 Hungary 162 14% -6% 3.5 Serbia 106 9% -9% 3.6 Slovakia 16 1% 7%
Slide 14: Occupancy and Yield by Sector
PORTFOLIO OVERVIEW I OCCUPANCY AND YIELD BY SECTOR Change in Occupancy occupancy Yield Change in yield As at 31 December 2013 % 12 mths % % 12 mths % OFFICE Poland 92% 6% 7.9% 4% Romania 93% -2% 8.0% 10% Hungary 96% 1% 8.1% 0% Serbia 95% 7% 8.9% 3% Slovakia 61% 30% 8.8% 0% OFFICE SECTOR 91% 2% 8.2%
Slide 15: Top Properties
PORTFOLIO OVERVIEW I TOP PROPERTIES Book value Sq m Rent Occupancy As at 31 December 2013 `000 `000 € /sq m /mts % City Gate Romania 157,500 48 20 93% Galeria Jurajska Poland 150,000 49 20 89% Avenue Mall Zagreb Croatia 126,000 36 23 97% Center Point Hungary 80,000 43 13 97% Spiral Hungary 54,200 32
Slide 16: Agenda
AGENDA 1. 2013 highlights 3 2. Strategy 7 3. Market overview 9 4. Portfolio overview 12 5. Key financial results 17 6. Additional materials 29 16
Slide 17: Financial Highlights
KEY FINANCIAL RESULTS I FINANCIAL HIGHLIGHTS 2013 2012 FY to 31 December (€ m) (€ m) Underlying PBT* 22 6 Cash flow from operating activities 28 16 Total properties 1,518 1,811 Net debt 830 951 NAV 576 741 NAV per share 1.8 2.3 Underlying PBT/share 0.07 0.02 EPRA NAV/share 2.2 2.7 EPRA NNNAV/share 1
Slide 18: Reconciliation of Underlying PBT
KEY FINANCIAL RESULTS I RECONCILIATION OF UNDERLYING PBT 2013 2012 12 months to 31 December (€ m) (€ m) IFRS Profit/ (Loss) before tax (173) (125) Net valuation movement (includes disposals) 190 115 Loss from associates 4 10 Deferred and current taxation of joint ventures 1 (3) Amortisation of intan
Slide 19: Balance Sheet
KEY FINANCIAL RESULTS I BALANCE SHEET Investment property have decreased due to the sale of €m Dec'13 Dec'12 Galeria Kazimierz (€90m) and devaluations net of capex Investment property and L.T. assets (inc. (€127m) IPUC) 1,397 1,614 Assets held for sale - 42 • average occupancy: 91% (91% on 31 Dec 20
Slide 20: Revaluations Breakdown
KEY FINANCIAL RESULTS I REVALUATIONS BREAKDOWN Breakdown of 2013 net revaluation result By country By assets Total: €190m Total: €190m Slovakia Russia 3% 6% Avenue Mall Zagreb €17m Romania Galleria 24% Bucharest Poland €17m 12% Serbia Bulgaria 22% Galleria 6% Hungary Burgas 10% Others €16 Croatia 16
Slide 21: Debt and LTV
KEY FINANCIAL RESULTS I DEBT AND LTV Pro forma for bonds repayment, capital increase and 2013 2012 bonds issue As at 31 December (€ m) (€ m) (€ m) Long-term bank debt and financial liabilities 794 952 841 Short-term bank debt and financial liabilities 197 253 96 Total bank debt and financial liabili
Slide 22: Net Debt
KEY FINANCIAL RESULTS I NET DEBT 2013 2012 As at 31 December (€ m) (€ m) Gross debt 959 1,138 Market value of derivatives 33 67 992 1,205 Cash and deposits (162) (254) EPRA adjustments 0 0 Net debt (EPRA basis) 830 951 Average interest rate 4.3% 5.0% Average debt maturity 4.9 years 3.9 years Interes
Slide 23: Debt and Maturity Schedule
KEY FINANCIAL RESULTS I DEBT AND MATURITY SCHEDULE Debt split Interest rate split As of 31 December 2013 As of 31 December 2013 Unsecured debt Corporate bonds 16% Project loans Floating 49% Fixed/hedged 51% Secured debt 84% 23 Debt maturity As of 31 December 2013 400 €m 367 197 183 200 155 24 102 47
Slide 24: Income Statement
KEY FINANCIAL RESULTS I INCOME STATEMENT 2013 2012 Change 12 months to 31 December €m € % Rental and service revenue 118 129 -8% On like-for-like basis rental and service Cost of rental operations (33) (38) -12% revenues up by €2m Rental margin 72% 70% G&A expenses down by 52% from €24m Residential
Slide 25: Rental Income Movements
KEY FINANCIAL RESULTS I RENTAL INCOME MOVEMENTS 12 months to December 2013 €m 100 2 -8 50 90 84 0 2012 Disposals Like-for-like 2013 25 25
Slide 26: Overall NOI Improvement in Underperforming Assets
KEY FINANCIAL RESULTS I OVERALL NOI IMPROVEMENT IN UNDERPERFORMING ASSETS 2 500 2 000 1 500 1 000 500 2012 0 2013 -500 -1 000 -1 500 -2 000 Avenue Mall Galleria Arad Galleria Piatra Galleria Burgas Galleria Stara Galleria Buzau Osijek Neamt Zagora 26
Slide 27: Cash Flow Highlights
KEY FINANCIAL RESULTS I CASH FLOW HIGHLIGHTS 2013 2012 12 months to 31 December (€m) (€m) Cash from operating activities at €28m Operating cash before w. capital changes 66 69 Add / deduct: Net cash at 31 December 2013 at €130m Residential Inventory 12 16 (€32m deposits) Interest paid, net (48) (66)
Slide 28: Agenda
AGENDA 1. 2013 highlights 3 2. Strategy 7 3. Market overview 9 4. Portfolio overview 12 5. Key financial results 17 6. Additional materials 29 28
Slide 29: EPRA Balance Sheet
ADDITIONAL MATERIALS I EPRA BALANCE SHEET 2013 2012 As at 31 December (€ m) (€ m) Total properties 1,518 1,811 Net debt (830) (951) Other net liabilities (112) (119) EPRA NNNAV 576 741 EPRA NNNAV per share 1.8 2.3 Deferred tax arising on revaluation movements 116 112 Mark-to-market of debt and deriv
Slide 30: Portfolio of Income Generating Properties
ADDITIONAL MATERIALS I PORTFOLIO OF INCOME GENERATING PROPERTIES As of 31 December 2013 Poland Hungary Serbia Croatia Romania Bulgaria Slovakia Subtotal Czech* Total Office properties Number of assets 11 3 3 - 1 - 1 19 2 21 GTC consolidated share of NLA, 144 91 53 - 48 - 13 349 11 360 ths. sq m Tota
Slide 31: New Developments
ADDITIONAL MATERIALS I NEW DEVELOPMENTS Galeria Wilanów (Warsaw) Galeria Północna (Warsaw) Type Retail Type Retail Leasable area 61,000 sq m Leasable area 64,000 sq m Total costs (1st phase) €170m Total costs €178m LTC ratio (1st phase) 65% LTC ratio 65% Loan value (1st phase) €110m Loan value €115m
Slide 32: Useful Information
ADDITIONAL MATERIALS I USEFUL INFORMATION Investors` calendar 2014-05-14 Consolidated quarterly reports for Q1 2014 2014-08-21 Consolidated semi-annual report for the 1st half 2014 2014-11-13 Consolidated quarterly reports for Q3 2014 Contact details Małgorzata Czaplicka Director Investor Relations
Slide 33: 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
Slide 34: Thank you
Thank you Globe Trade Centre S.A. 5 Woloska street, Taurus Building, 02-675 Warsaw, Poland