Globe Trade Centre (GTC) Q4 2023 earnings summary

Executive summary

• Rental revenue rose 10% YoY to €183m; FFO I increased to €71m, while occupancy held at 87%.

• EPRA NTA was €1,232m, down from €1,273m at year-end 2022; reported net LTV rose to 49.3%.

Financial highlights

• Rental gross margin increased 8% YoY to €128m from €119m; like-for-like rental revenue grew 10%.

• Adjusted EBITDA was €102m versus €101m in 2022; FFO I of €71m included an adjustment for €5.9m of one-off tax and other expenses.

• EPRA NTA per share was €2.15 (PLN 9.33), compared with €2.22 (PLN 10.40) at year-end 2022.

Outlook and guidance

• Three Budapest projects represent €68m GAV and €13.2m expected annualized in-place rent; projects comprise 51,000 sq m of GLA.

• Center Point 1 & 2 refurbishment is scheduled for Q3 2024; Center Point 3 is scheduled for Q3 2025 and Rose Hill Business Campus redevelopment for Q4 2024.

• Expected stabilized rental income is €8.8m at Center Point 3, €2.4m at Rose Hill Business Campus and €2.0m at Andrassy.