Globalworth has released its Annual Report and Audited Consolidated Financial Results for the year ended 31 December 2020. The company’s approach to the COVID-19 business recovery process has resulted in balanced growth, with a net operating income increased by 6.5% to €157.3 million and a total combined portfolio value that remained effectively unchanged at €3.0 billion.
In 2020 Globalworth took up, extended or renegotiated c. 303,500 sqm of commercial space in its portfolio, representing c. 25% of its total standing commercial GLA. This is the highest volume of leasing activity that the company has ever achieved, mostly attributed to the successful negotiations with existing tenants. The strong tenant relationships were also confirmed in Globalworth’s standing commercial occupancy, which remained high at 90.9% (91.7% including tenant options) as at year-end, impacted however by the delivery of properties under development still in lease-up stage and a 3.3% decrease in like-for-like occupancy due to the very challenging market conditions.
“Despite the significant disruption in the economic and social activity during most of 2020, I am pleased to report that our core strengths and competitive advantages have resulted in a very resilient operating performance and financial results. At the same time, we kept close to and supported our clients and the broader community within which we live and operate, reinforcing our position as THE landlord of choice in our home markets. Whilst 2021 will continue to present a number of challenges, I firmly believe that the worst is behind us and I am confident and excited about the opportunities that lie ahead of us”, said Dimitris Raptis, CEO of Globalworth Group.
Operational highlights
- Total combined portfolio value remained effectively unchanged at €3.0 billion, of which €2.3 billion in environmentally certified properties.
- Focused developments only on projects with significant pre-lets or advanced level of construction, delivering two Class A offices and two high-quality industrial facilities in Romania and Poland with 95,800 sqm of GLA.
- Overall standing portfolio footprint increased by 4.7% to 1,271,300 sqm of GLA.
- Leasing transactions for a total of 303,500 sqm of commercial space at an average WALL of 3.9 years. 74.3% related to lease renegotiations / extensions with existing tenants.
- Standing commercial occupancy remained high at 90.9% (91.7% including tenant options) as at year-end, impacted however by the delivery of properties under development still in lease-up stage and a 3.3% decrease in like-for-like occupancy due to the very challenging market conditions.
- Annualised contracted rent of €183.4 million, of which 91.3% from office and industrial properties.
- The rate of collections for rents invoiced and due remained high at 99.0% for the year.
- The majority of the portfolio now internally managed, by a team of over 220 professionals in Poland and Romania.
- CPI Property Group became the largest shareholder in Globalworth in February 2020.
Financial highlights
- Net Operating Income increased by 6.5% to €157.3 million, despite the negative effect (-2.3%) of the COVID-19 pandemic.
- EPRA earnings of €82.3 million for FY2020, representing an annual increase of 1.7%, while EPRA earnings per share decreased by 16% to 37 cents
- Issued our inaugural green bond, raising €400 million with a 6-year term, which was more than 2x oversubscribed and at the same time further improved the debt maturity profile, through the repurchase of c.41% of the notes maturing in 2022 at a 2.0% premium to their par value.
- Liquidity position remained high with €527.8 million of cash available as of 31 December 2020 and an additional undrawn €215 million Revolving Credit Facility available to the Group.
