Property group Globalworth said its total combined portfolio value remained effectively unchanged at €3.2 billion during 2022 compared to 2021, while investments in logistics/light-industrial facilities in Romania and the refurbishment/repositioning of two mixed-use properties in Poland totaled €52.2 million.
The overall portfolio expanded by 7.9% or 103,300 sqm to 1.4 million sqm in 71 standing properties. The group closed leasing transactions for 206,900 sqm, while the average standing occupancy rate stood at 85.6%, down 2.9% compared to 2021.
At the same time, like-for-like annualized commercial contracted rents in our standing commercial portfolio increased by 1.7% to €177.5 million at the end of 2022, mainly as an effect of rent indexation.
Globalworth recorded a net loss of €16.1 million in 2022 compared to a profit of €47.5 million in 2021 due to revaluation losses of €89.5 million in 2022 compared to the €5.7 million revaluation losses in 2021.
At the end of 2022, the group’s liquidity totaled €163.8 million along with available liquidity from committed undrawn facilities of €300 million.
“In 2023, we anticipate that macroeconomic developments, specifically the trajectory of inflation and the response of central banks, will have the most significant impact on the performance of the real estate market. Despite the prevailing market uncertainty, our company remains steadfast in its focus on liquidity initiatives, which provide us with the resources we need to seize emerging opportunities,” said Globalworth in its annual report.
The office assets have a commanding share of Globalworth’s portfolio in Romania and Poland. On the Romanian market, the company is also growing its presence in the industrial segment.
“Overall, our standing portfolio predominantly comprises 30 Class "A" offices (50 properties in total) and a mixed-use investment (with five properties in total) in central locations in Bucharest (Romania), Warsaw (Poland) and five of the largest office markets/cities in Poland (Krakow, Wroclaw, Katowice, Gdansk and Lodz), which in total account for 89.4% of our standing portfolio by value,” said the company.
“During the year, the size of our office and mixed-use portfolio remained unchanged; however, we expect it to grow in 2023 following the completion of the repositioning/redevelopment of two mixed-used properties in Poland,” added Globalworth in its report.
Looking at future development potential, Globalworth has a land bank of 1.2 million sqm in Romania and Poland for office, industrial or mixed-use investments. When fully developed, these land plots have the potential to add a total of a further 785,700 sqm to the group's portfolio.
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