by Property Forum | Office

Globalworth published a trading update summarising the key highlights of its operating performance during the first six months of the year, including some further updates as to the impact of the pandemic crisis on its operations.


  • Healthy leasing activity in H1 2020, with 115,500 sqm of commercial space taken-up or extended at an average WALL of 3.2 years.
  • Leases renewed accounted for 74% of the company’s leasing activity, resulting in its WALL remaining substantially the same over the period (4.5 years as at 30 June 2020 vs 4.6 years as at 31 December 2019).
  • Standing portfolio footprint increased by 34,800 sqm mainly attributed to the addition of Globalworth Campus T3 in Bucharest, to 1,248,500 sqm of GLA.
  • Average standing occupancy of the company’s commercial portfolio of 93.3% (94.2% including tenant options), decreasing from 94.7% (95.9% including tenant options) at year-end 2019. Like-for-like occupancy decreased by 0.8%.
  • Most of Globalworth’s contracted rent is from office and industrial properties (89.9% of annualised contracted rent) which have remained largely unaffected by measures taken by the authorities against Covid-19.
  • Claims were received principally by occupiers of space who have been impacted by the COVID-19 pandemic, with claims accounting for 2.4% of annualised contracted rent received and settled with tenants and further claims accounting for 2.3% of annualised contracted rent rejected or under negotiations.
  • The modest economic impact of claims is expected to be substantially mitigated by the cost-cutting initiatives already implemented by the Group and through the extensions of leases in place negotiated as part of the COVID-related agreements reached with tenants. 
  • Rate of collections for rents invoiced and due remained high at 92.7% during the first half of 2020.
  • Group liquidity position remains very strong with c. €565 million of cash available as of 30 June 2020.