Globe Trade Centre (GTC) Q2 2024 earnings summary

Executive summary

• Rental revenues rose 3% year-over-year to €93 million in H1 2024, driven by new completions and indexation, with gross margin up 4% to €65 million.

• Net profit for H1 2024 reached €32 million, reversing a loss in H1 2023, mainly due to higher rental income and positive asset revaluations.

• Portfolio reshuffling included the sale of non-core assets and acquisition of a senior living project in Berlin, marking entry into Western European residential sector.

• Dividend of €29.3 million approved, payable in September 2024.

• Property portfolio book value was €2,393.3 million as of 30 June 2024, with 86% occupancy.

Financial highlights

• Funds from Operations increased to €36 million, with FFO per share at €0.06.

• Adjusted EBITDA was €55 million, up from €52 million year-over-year.

• Net profit before tax reached €73 million; after tax, €32 million.

• Cash flow from operating activities improved to €47.9 million in H1 2024.

• Cash and equivalents stood at €89 million, with an additional €31 million on escrow accounts.

Outlook and guidance

• Management expects cash balances, rental income, and available loan facilities to be sufficient for funding needs over the next 12 months.

• Active development projects represent 5% of portfolio value, with major office and senior living projects scheduled for delivery through 2026.

• Focus remains on portfolio modernization, green certification, and maintaining high occupancy in core markets.

• Ongoing negotiations for refinancing and potential bond issuance.