Globalworth Real Estate Investments (GWI) H2 2023 earnings summary

Executive summary

• FY23 revenue rose 0.5% to €240m; rental income grew 7.0%, while negative property revaluations drove IFRS loss before tax of €61.5m.

• Contracted rent increased 6.3% to €201.2m, occupancy was 88.3%, and adjusted normalised EBITDA rose 4.3% to €131.4m.

• Operations remained focused on Poland and Romania, with selective logistics development and mixed-use repositioning; standing commercial portfolio value was €2.7bn.

Financial highlights

• Consolidated revenue was €240m, up 0.5%; rental income rose 7.0% to €160.4m, mainly from indexation, with growth of 10% in Romania and 2% in Poland.

• NOI increased 5.2% to €147.0m; service charges fell 6%, while adjusted normalised EBITDA rose 4.3% to €131.4m.

• IFRS loss for the period was €53.8m versus €16.1m in FY22; IFRS EPS was -€0.23 versus -€0.08.

• EPRA earnings fell 14.4% to €61.3m and EPRA EPS declined 18.8% to €0.26; EPRA NRV per share decreased 16.0% to €6.94.

• FY23 dividend was €66.3m, or €0.29 per share, versus €59.8m and €0.27 per share in FY22.

Outlook and guidance

• Future development pipeline totals 785.7k sqm, with expected blended yield on investment cost of 11%; execution depends on market conditions and tenant demand.

• Renoma and Supersam refurbishment works were expected to complete in Q1 2024; full-occupancy rent potential was €9.0m and €4.7m, respectively.

• Long-term LTV target is below 40%, versus FY23 LTV of 42.2%.

• Dividend policy targets distribution of 90% of EPRA earnings.