GTC has presented strong financial results for the first half of 2023 with €90 of rental revenues, 8% higher than the €85 million recorded in the same period of the previous year.
H1 2023 financial highlights
- Revenues from rental activity at €90 million in H1 2023 (€85 million in H1 2022); Like-for-like rental revenue growth of 8%
- Gross margin from rental activity at €63 million in H1 2023 (€62 million in H1 2022)
- FFO I improved by 4% to €35 million in H1 2023 (€34 million in H1 2022), FFO per share at €0.06
- EPRA NTA at €1,205 million as of 30 June 2023 (€1,273 million as of 31 December 2022), reflecting changes in the valuation of real properties and derivative instruments
- EPRA NTA per share at €2.10 (PLN 9.34)
- Net LTV at 46.8% (44.5% as of 31 December 2022)
- Strong balance sheet with €120 million of cash and €94 million undrawn credit facility
H1 2023 portfolio highlights
- Occupancy at 87% as of 30 June 2023 (87% as of 31 December 2022)
- Office leasing activity reached 55,500 sqm in H1 2023 (49,400 sqm in H1 2022) and 34,800 sqm in Q2 2023 (23,800 sqm in Q2 2022)
- Retail leasing activity reached 13,000 sqm in H1 2023 (20,700 sqm in H1 2022) and 9,500 sqm in Q2 2023 (11,900 sqm in Q2 2022)
- Average weighted lease term at 3.6 yrs.
- 86% of assets green certified, 13% under the certification process
- Proceeds from the successful disposal of Forest Offices Debrecen reinvested into real estate
“8% like-for-like rental income growth and 4% FFO I growth fueled by rent indexation was tempered by inflated service costs restraining gross margin. With reduced demand for offices across our core markets and yield expansion putting pressure on value, we will continue to pursue uncorrelated opportunities across Europe to further diversify our business. In this way we can leverage our strong foundations to deliver sustainable and stable returns," commented Zoltán Fekete, GTC’s President of the Management Board.
