Globe Trade Centre (GTC) Q1 2025 earnings summary

Executive summary

• Q1 2025 rental revenues rose 9% year-over-year to €49.8 million, driven by acquisitions, especially in the German residential portfolio, partially offset by asset disposals.

• Portfolio remains diversified across office, retail, and residential sectors, with strong letting momentum and improved occupancy.

• Major asset disposals included GTC X in Serbia and Wilanów land in Poland, generating significant cash inflows and supporting liquidity.

• Management is focused on deleveraging, refinancing upcoming maturities, and executing the German residential strategy.

• Net profit for Q1 2025 was €1.6 million, down from €9.8 million in Q1 2024, mainly due to higher finance costs and revaluation losses.

Financial highlights

• EBITDA for Q1 2025 was €27 million, with stable gross margin despite increased finance costs.

• FFO I declined to €12.4 million from €18.6 million year-over-year, mainly due to higher interest expenses.

• Net LTV improved to 52.1%, reflecting a stronger cash position from disposals.

• Cash and deposits totaled €128 million at quarter-end, reflecting strong liquidity post-disposals.

• Weighted average interest rate increased to 3.63% due to new financings.

Outlook and guidance

• CapEx run rate expected to decrease as focus shifts to non-speculative developments and reduced maintenance spending.

• Management aims to address the 2026 bond maturity ahead of schedule, leveraging improved capital market conditions and strong bank relationships.

• Sufficient liquidity expected for at least the next 12 months, supported by cash, asset disposals, and loan facilities.