Globalworth’s net profit in 2021 significantly improved to €47.5 million (2020: net loss of €46.8 million) while it recorded its best year in office leasing with 214,500 sqm of spaces taken up or extended. The company has released its annual report and audited consolidated financial results for 2021.
Operational highlights
- Total combined portfolio value up by 3.9% to €3.2 billion.
- Focused development program in select high-quality projects.
- In Romania, the company delivered a Class A office comprising 29,200 sqm of GLA, with 5 logistics facilities under development which are expected to have a total GLA of 98,900 sqm
- In Poland, there are two mixed-use properties under refurbishment/repositioning.
- Acquisition two high-quality logistics facilities in Romania with a total area of 27,000 sqm for €17.9 million.
- Overall standing portfolio net increase of 2.4% to 1.3 million sqm of GLA in 66 standing buildings.
- Leasing transactions of 285,500 sqm of commercial space at an average WALL of 4.6 years, registering the second-highest yearly volume to date.
- Best year in office leasing with 214,500 sqm of spaces taken up or extended
- Average standing occupancy of 88.5% (88.7% including tenant options), lower by 2.3% compared to 2020.
- Total annualised contracted rent up by 0.2% to €183.7 million, of which 91.4% from office and industrial properties. The rate of collections invoiced and due remained high at 99.2% for 2021.
- Sustainability:€2.7 billion in 55 green-certified properties, several green initiatives completed or in progress to improve footprint. Issued the third sustainable development report and an inaugural Green Bond Report.
- The consortium of CPI Property Group S.A. and Aroundtown SA (through Zakiono Enterprises Limited) became the controlling shareholders of Globalworth with 60.6% of the share capital.
Financial highlights
- Net Operating Income was lower by 8.3% compared to 2020 at €144.3 million.
- EPRA earnings decreased by 28.2% to €59.1 million (2020: €82.3 million), partially impacted by the exceptional one-off costs associated with the cash offer for Globalworth's shares initiated in May 2021.
- Adjusted normalised EBITDA decreased by 8.1% to €130.2 million (2020: €141.6 million), due to lower NOI, as offset by the positive impact of the €1.6 million (10.2% lower compared to 2020) savings in recurring administrative expenses.
- Net profit significantly improved to €47.5 million (2020: net loss of €46.8 million) due to marginal revaluation losses of €5.7 million in 2021 compared to the €116.2 million revaluation losses in 2020.
- High liquidity of €418.7 million (vs €527.8 million at 2020 year-end) plus €215 million in undrawn RCF facility, and an LTV at 40.1% at 31 December 2021 (vs 37.8% at 2020 year-end).
“2021 left us with mixed emotions, as our operational successes and business growth in another year of very challenging market conditions due to the COVID-19 pandemic have only partially been reflected in our annual results. We firmly believe, however, that we are implementing the right strategy to address the present and future challenges and reinforce our position as the landlord of choice in our home markets of Poland and Romania,” says Dimitris Raptis, Chief Executive Officer.
