Globalworth Real Estate Investments (GWI) H1 2024 earnings summary

Executive summary

• Portfolio focused on Poland and Romania, valued at €2.7bn after an 8.3% decline in H1 2024 due to disposals and negative revaluations, with 86.1% occupancy and €192.3m annual contracted rent as of June 2024.

• H1 2024 net loss of €65.3m, driven by negative property revaluations, asset sales, and JV impairments.

• Strategic disposals of non-core assets, notably Romanian and Polish logistics portfolios, raised €129.4m and strengthened liquidity and capital structure.

• Successful €850m bond refinancing extended average debt maturity to 5.2 years and reduced LTV to 39.9%.

• Strong ESG credentials: 85.3% of portfolio green-certified, 95.7% WELL Health-Safety rated, and robust community engagement.

Financial highlights

• Revenue rose 5% YoY to €125m; rental income was €78.9m (down 2% YoY); NOI at €72.4m (down 2% YoY); adjusted normalized EBITDA at €63.6m (down 3.7%).

• IFRS loss before tax of €65.1m (vs. €44.3m loss in H1 2023), mainly due to €50.5m negative revaluations and €24.1m loss on asset disposals.

• EPRA earnings at €29.8m, down 12.7% YoY; EPRA EPS €0.11, down 26.7% YoY.

• Dividend of €27.7m (€0.11/share) distributed, mostly as scrip; 98.6% of shareholders opted for scrip, minimizing cash outflow.

• EPRA NRV per share: €6.24 (down 10.1% from 2023YE).

Outlook and guidance

• Management targets LTV at or below 40% and continues to prioritize liquidity and capital structure optimization.

• No material debt maturities until 2027; focus remains on operational efficiency, liquidity, and selective investments.

• Future development pipeline of 620.5k sqm, with execution dependent on market conditions and tenant demand.

• Market fundamentals in Poland and Romania remain stronger than Western Europe, with healthy supply-demand balance and rising rents.

• Focus remains on core office assets, ESG upgrades, and maintaining high-quality tenant base.