66M PROFIT IN Q AND 20% INCREASE IN ANNUALIZED RENT

Transcription

1 Q3 & 9M 2017 RESULTS 66M PROFIT IN Q AND 20% INCREASE IN ANNUALIZED RENT PROFIT TO FUEL ACCELERATED GROWTH EPRA NAV/SHARE FFO I/SHARE EARNINGS/ SHARE NET LTV % +11% +4% +4% -100bps Q3 & 9M 2017 HIGHLIGHTS Revaluatin gain n Galeria Półncna f 57m in Q and 155m t date Prfit befre tax at 66m in Q3 and 134m in 9M 2017 ( 71m in 9M 2016 ) Earnings per share up t 0.13 in Q3 and 0.24 in 9M 2017 ( 0.23 in 9M 2016) EPRA NAV increased 7% in the Q3 and 14% in 9M t 1,019m ( 897m as f 31 December 2016) EPRA NAV / share increased 7% in the Q3 and 11% in 9M t 2.17 as f 2017 ( 1.95 as f 31 December 2016) Grss margin frm rental activity at 22m in Q3 and 65m in 9M 2017 ( 64m in 9M 2016) FFO I up t 12m in Q and 34m in 9M ( 32m in 9M 2016) befre the impact f Galeria Półncna FFO I / share at 0.03 in Q and 0.07 in 9M 2017 ( 0.07 in 9M 2016) 105m f cnstructin lans under negtiatins & 240m f refinancing lans, including 200m lan related t Galeria Półncna, under negtiatins t imprve cnditins OPERATING PERFORMANCE 9M 2017 Reprted V% GMRA 65m +1% EBITDA 54m +0% Prfit fr the perid 112m +5% FFO I 34m +5% Ttal prperty 1,872m +15% Net debt 795m +13% Net LTV 42% -100bps EPRA NAV/share % PORTFOLIO UPDATE Cmpletin f Galeria Półncna n budget and n time Acquisitin f Belgrade Business Center f 17,700 sq. m in Belgrade Acquisitin f Cascade ffice building f 4,200 sq. m in Bucharest Strng leasing perfrmance:84,000 sq. m f ffice and retail space newly leased and renewed in 9M 2017 Occupancy at 93% (94% as at 30 June 2017) We btained building permits fr Advance Business Centre I in Sfia (14,100 sq. m) and Matrix in Zagreb (21,000 sq. m) 6 prjects under cnstructin with ver 145,000 sq. m 6 prjects in the planning stage with 143,000 sq. m f ffice 1

2 space and 61,000 sq. m and 2 extensins f existing prjects fr 5,100 sq m The cmpletin f Galeria Półncna is a masterpiece f develpment resulting in a strng uplift in prfit and equity. Refinancing f the cmpleted mall will prvide substantial cash t accelerate further grwth with n need t raise new equity. The acquisitin f tw ffice buildings in Belgrade and Bucharest and cmpletin f Galeria Półncna increased ur annualized rent by 20% t EUR 105 millin. said Thmas Kurzmann, GTC s CEO. With the start f Matrix ffice in Zagreb and ABC I ffice in Sfia we have mre than 350k sq. m under cnstructin and in planning phase. he added. KEY OPERATING ACHIEVEMENTS IN Q3 & 9M 2017 Value creatin will fuel accelerated grwth Further bst t NAV will cme frm 6 prjects under cnstructin with ttal f 145,000 sq. m GLA and 6 prjects in the planning stage with a ttal GLA f 204,000 sq. m. Strng leasing perfrmance Cmpletin f Galeria Półncna Galeria Półncna was cmpleted n budget and pened n time n 14 September We attracted nearly 2 millin visitrs in the first tw mnths Revaluatin gain f 57m in Q3 2017and 155m t date Refinancing f up 200m in advanced negtiatins (i.e. 84m tp-up) Acquisitin f incme generating prperties Belgrade Business Center f 17,700 sq. m in Belgrade in September 2017 Cascade ffice building f 4,200 sq. m in Bucharest in July 2017 Ttal investment f 46m Additinal NOI f 4.1m annually Cmpletin f Galeria Półncna an acquisitin f BBC and Cascade increased annualized rent by 20% t 105m 6 prjects under cnstructin with ver 145,000 sq. m GLA 7,800 sq. m t be cmpleted in Q (Artic ffice building, Warsaw) 73,400 sq. m t be cmpleted in 2018 (GTC White Huse, Budapest, Ada Mall and Green Heart, Belgrade) 63,600 sq. m t be cmpleted in 20019/2020 (Advance Business Centre I, Sfia, further phases f Green Heart, Belgrade and Matrix, Zagreb ) 6 prjects in the planning stage with ver 143, 000 sq. m f ffice space and 61,000 sq. m f retail space (Warsaw, Budapest, Bucharest and Sfia) 2 extensins f existing prjects fr 5,100 sq. m: Galeria Jurajska and Cascade in the preparatin phase 84,000 sq. m f ffice and retail space newly leased and renewed in 9M 2017 extending current WALT t 3.3 years Largest leases: 13,000 sq. m f Rmtelecm lease prlngatin in City Gate, 5,500 sq. m f IBM lease prlngatin in Duna Twer, 3,500 sq. m f Black Rck new lease in White Huse, 3,400 sq. m f GFT lease prlngatin in Sterlinga Business Center, 3,000 sq. m f Enterprise Service lease prlngatin in University Business Park Occupancy at 93% (94% as at 30 June 2017) 2

3 KEY FINANCIAL HIGHLIGHTS IN Q3 & 9M 2017 Rental and service revenues Increased t 30m in Q3 and 88m in 9M frm 85m in 9M 2016 Reflects mainly cmpletin f University Business Park B and FrtyOne II in 2016, FrtyOne III and Galeria Półncna in 2017 ( 3m) as well as acquisitin f Premium Pint and Premium Plaza in Bucharest, Sterlinga Business Center in Łódź and Neptun Office Center in Gdańsk. BBC in Belgrade and Cascada in Bucharest, partially ffset by dispsal f Galeria Burgas and Galeria Stara Zagra Net prfit frm develpment revaluatin and impairment Financial expenses 54m in Q3 and 105m in 9M as cmpared t 39m in 9M 2016 Reflects mainly cmpletin f Galeria Półncna and FrtyOne III as well as revaluatin gain n Galleria Stara Zagra cmbined with value appreciatin f incme generating assets fllwing an imprvement in their perating results (mstly Galeria Jurajska, FrtyOne III and University Business Park B) Increased t 8m in Q3 and 21m in 9M due t an increase in average level f debt Cst f finance dwn 3.1% (frm 3.2%) due t decrease in average interest rate and change in hedging strategy Taxatin Tax amunted t 14m in Q3 and 22m in 9M as cmpared t 36m tax benefit in 9M 2016 Net prfit Funds Frm Operatins (FFO I) Ttal prperty value Reflects mainly increased prvisin related t revaluatin gain 52m in Q3 and 112m in 9M cmpared t 107m in 9M 2016 mstly n revaluatin gain At 34m cmpared t 32m in 9M 2016 despite dispsal f Galleria Stara Zagra and Galleria Burgas At 1,872m as f 2017 ( 1,624m as f 31 December 2016) due t an investment in assets under cnstructin, acquisitin f land plts and revaluatin gain EPRA NAV / share Up by 7% in Q3 11% in 9m t 2.17 frm 1.95 n 31 December 2016 Crrespnding t EPRA NAV f 1,019m cmpared t 897m as f 31 December 2016 Financial liabilities Cash and cash equivalents At 925m as f 2017 cmpared t 881m as f 31 December 2016 Weighted average debt maturity f 4 years and average cst f debt f 3.1% p.a. LTV at 42% n 2017 (43% n 31 December 2016) Interest cverage at 3.6x n 2017 (3.5x n 31 December 2016) 105m f cnstructin lans under negtiatins 240m f refinancing lans under negtiatins t imprve cnditins, including 200m refinancing f Galeria Półncna Decreased t 102m as f 2017 frm 150m as f 31 December 2016 due t finance activity 3

4 Annex 1 Cnslidated Statement f Financial Psitin as at 2017 (in thusands f eur) ASSETS December 2016 (audited) Nn-current assets Investment prperty 1,726,022 1,501,770 Investment prperty landbank 124, ,905 Residential landbank 13,230 13,761 Investment in assciates and jint ventures 1,698 3,803 Prperty, plant and equipment 6,871 6,002 Deferred tax asset 59 1,075 Other nn-current assets ,872,669 1,629,669 Current assets Residential inventry 7,714 5,355 Accunts receivables 4,730 5,363 Accrued incme VAT receivable 15,525 17,389 Incme tax receivable Prepayments and deferred expenses 2,031 2,558 Escrw accunt 11 1,504 - Shrt-term depsits 14 27,825 27,925 Cash and cash equivalents 102, , , ,821 TOTAL ASSETS 2,035,501 1,839,490 4

5 Annex 1 Cnslidated Statement f Financial Psitin as at 2017 (cnt.) (in thusands f eur) EQUITY AND LIABILITIES December 2016 (audited) Equity attributable t equity hlders f the Cmpany Share capital 10,651 10,410 Share premium 520, ,288 Capital reserve (36,054) (35,702) Hedge reserve (2,796) (3,631) Freign currency translatin 2,048 1,872 Accumulated prfit 397, , , ,432 Nn-cntrlling interest 4,113 2,891 Ttal Equity 895, ,323 Nn-current liabilities Lng-term prtin f lng-term brrwing 813, ,031 Depsits frm tenants 8,969 8,043 Lng term payable 2,625 2,730 Prvisin fr share based payment 4,039 2,046 Derivatives 2,122 2,778 Prvisin fr deferred tax liability 119,215 98,237 Current liabilities 950, ,865 Investment, trade payables and prvisins 61,623 36,739 Current prtin f lng-term brrwing 116, ,902 VAT and ther taxes payable 1,463 1,122 Incme tax payable Derivatives 1,583 2,553 Advances received 8,070 1, , ,302 TOTAL EQUITY AND LIABILITIES 2,035,501 1,839,490 5

6 Annex 2 Cnslidated Incme Statement fr 9-mnth perid ended 2017 (in thusands f eur) Nine-mnth perid ended 2017 Three-mnth perid ended 2017 Nine-mnth perid ended 2016 Three-mnth perid ended 2016 Revenues frm rental activity 87,629 29,648 85,159 30,109 Residential revenue 442-5,306 1,530 Cst f rental activity (22,592) (7,540) (20,533) (7,260) Residential csts (379) - (4,383) (1,430) Grss margin frm peratins 65,100 22,108 65,549 22,949 Selling expenses (1,558) (594) (2,304) (907) Administratin expenses (10,320) (2,666) (8,682) (3,685) Prfit frm revaluatin 105,314 54,220 39,385 15,318 Other incme 1, , Other expenses (2,501) (1,150) (2,456) (868) Prfit (lss) frm cntinuing peratins befre tax and finance incme / (expense) 157,188 72,207 92,618 33,164 Freign exchange differences gain/ (lss), net (2,819) 1,339 2,589 (547) Finance incme , Finance cst (20,707) (7,694) (21,690) (7,803) Share f prfit (lss) f assciates and jint ventures (4,178) (375) Prfit befre tax 133,967 65,881 70,581 24,520 Taxatin (22,272) (13,785) 36,031 46,885 Prfit (lss) fr the perid 111,695 52, ,612 71,405 Attributable t: Equity hlders f the Cmpany 111,510 51, ,670 71,406 Nn-cntrlling interest (58) (1) Basic earnings per share (in Eur)

7 Annex 3 Cnslidated Statement f Cash Flw fr the 9-mnth perid ended 2017 (in thusands f eur) Nine-mnth perid ended 2017 Nine-mnth perid ended 2016 CASH FLOWS FROM OPERATING ACTIVITIES: Prfit befre tax 133,967 70,581 Adjustments fr: Lss/(prfit) frm revaluatin/impairment f assets (105,314) (39,385) Share f lss (prfit) f assciates and jint ventures (184) 4,178 Prfit n dispsal f assets - (5) Freign exchange differences lss/(gain), net 2,819 (2,589) Finance incme (121) (1,242) Finance cst 20,707 21,690 Share based payment (incme) / expenses 1, Depreciatin and amrtizatin Operating cash befre wrking capital changes 54,175 54,392 Decrease in accunts receivables, prepayments and ther current 388 assets 723 (Increase)/Decrease in inventry and residential land bank (2,359) 2,768 Increase/(decrease) in advances received 5, Increase in depsits frm tenants 1,495 1,951 Increase/(decrease) in trade and ther payables (506) (1,492) Cash generated frm peratins 58,467 59,284 Tax paid in the perid (2,751) (3,183) Net cash flws frm perating activities 55,716 56,101 CASH FLOWS FROM INVESTING ACTIVITIES: Expenditure n investment prperty (106,354) (63,823) Purchase f land and cmpleted assets and land (51,064) (133,551) Purchase f subsidiary (15,896) (5,601) Increase in Escrw accunts fr purchase f assets (1,504) - Sale (including advances) f investment prperty 3,067 9,614 Sale f subsidiaries 37,545 4,800 Purchase f minrity (352) (18,108) Sale f shares in assciate 1,250 3,334 VAT n purchase/sale f investment prperty 2,046 (10,145) Interest received Lans granted t assciates - (123) Lans repayments frm assciates 1,218 11,347 Net cash flws frm/(used in) investing activities (129,957) (201,937) CASH FLOWS FROM FINANCING ACTIVITIES Prceeds frm lng-term brrwings 123, ,116 Repayment f lng-term brrwings (68,965) (67,572) Dividends paid (8,061) - Interest paid (18,173) (18,377) Lans riginatin cst (1,537) (959) Decrease/(increase) in blcked depsits 100 (4,408) Net cash frm/(used in) financing activities 26,710 82,800 Effect f freign currency translatin Net increase / (decrease) in cash and cash equivalents (47,359) (62,169) Cash and cash equivalents at the beginning f the perid 149, ,472 Cash and cash equivalents at the end f the perid 102, ,303 7

8 ABOUT GTC The GTC Grup is a leading real estate investr and develper fcusing n Pland and three capital cities in Central and Eastern Eurpe. Since 1994 GTC has develped 66 high standard, mdern ffice and retail prperties with a ttal area f nearly 1.2 millin sq. m thrugh Central and Eastern Eurpe. GTC nw actively manages a cmmercial real estate prtfli f 36 cmmercial buildings prviding nearly 614,000 sq. m f lettable ffice and retail space in Pland, Budapest, Bucharest, Belgrade and Zagreb. In additin, GTC has a develpment pipeline f 349,000 sq. m retail and ffice prperties in capital cities f Central and Eastern Eurpe, theref 145,000 sq. m under cnstructin. GTC S.A. is listed n the Warsaw Stck Exchange and included in the WIG30 index and inward listed n the Jhannesburg Stck Exchange. The cmpany s shares are als included in the Dw Jnes STOXX Eastern Eurpe 300 Index. Fr further infrmatin: Małgrzata Czaplicka Glbe Trade Centre S.A. T.: mczaplicka@gtc.cm.pl Wernika Ukleja Hill + Knwltn Strategies M.: wernika.ukleja@hkstrategies.cm 8