Fitch Ratings has affirmed Globalworth's Long-Term Issuer Default Rating (IDR) and senior unsecured debt rating at BBB- with a stable outlook, noting the company's efforts in deleveraging and its robust commercial portfolio across Poland and Romania.
Globalworth manages a €2.5 billion income-producing commercial portfolio primarily comprising office spaces, complemented by mixed-use assets.
In 2024, Globalworth executed key disposals, including its Romanian industrial portfolio and the Bliski Centrum office in Warsaw, among other assets, generating net proceeds of approximately €160 million.
These proceeds, combined with €162 million in additional secured debt, were instrumental in partially buying back unsecured bonds maturing in 2025 and 2026, reducing outstanding bonds from €850 million to €492 million.
Furthermore, in April 2024, the remaining bonds were successfully extended to 2029 and 2030.
Despite an increase in the average cost of debt due to higher coupon rates on the new bonds (6.25% compared to 3% on previous bonds), Fitch anticipates EBITDA net interest cover to stabilize at 2.0x-2.6x between 2025 and 2028, supported by an 87% interest rate hedging ratio at end-2024.
However, the portfolio continues to face challenges, primarily high vacancies in Polish regional cities, particularly within the office segment, which has exerted pressure on effective rents.
The occupancy rate saw a slight decline to 86.7% at end-2024 from 88.3% at end-2023, partly due to the disposal of higher-occupancy assets.
The company's diverse tenant mix, with over 600 tenants including multinational corporations like Renault, Google, Amazon, UniCredit, and Heineken, and a weighted average lease term of four years, provides a stable income base.
