News Article CEE financial results GTC investment
by Property Forum | Investment

GTC posted €9.3 million consolidated net profit attributable to shareholders of the parent company in Q1 2024 against €11.2 million profit a year earlier, the company announced.

EBITDA was €32.2 million vs. €29.6 million profit a year earlier. Adjusted EBITDA was €27 million (€24 million in Q1 2023). Net profit was €10 million in Q1 2024 (€12 million in Q1 2023). The decrease is mainly due to a loss on property revaluation, reads the results announcement.

Consolidated rental income reached €34.3 million in Q1 2024 vs. €31.1 million a year earlier, while property services income reached, respectively: €11.4 million vs €11.6 million.

Rental revenue increased by 7% to €46 million in Q1 2024 (€43 million in Q1 2023) with like-for-like revenue growth of 7%. The group recognised an increase in rental income of €1.5 million due to the completion of GTC X in Belgrade, Rose Hill Campus in Budapest and Matrix C in Zagreb. The Group also reported an increase in the average rental rate after indexation for inflation (CPI for Europe), the company reported.

Gross margin from operations was €32 million in Q1 2024, compared to €30 million in Q1 2023.

This was primarily driven by an increase in rental and service revenues partially offset by an increase in service costs (due to inflation). The loss from the revaluation of investment properties amounted to €6 million compared to a loss of €3 million in Q1 2023. It was mainly due to capital expenditure on completed properties. 

Funds from operations (FFO I) is €19 million compared to €16 million in Q1 2023, with FFO I per share of €0.03.

Total investments, including long-term financial assets, amounted to €2,434 million on 31 March 2024 (€2,416 million on 31 December 2023) with a GAV of €2,298 million on 31 March 2024 (€2,281 million on 31 December 2023), mainly as a result of investments specifically in assets under construction of €22 million, combined with an increase in the value of the right-of-use (and a corresponding increase in lease liabilities), due to new annual lease payments of €24 million. The above increase was offset by a loss on the revaluation of investment properties of €6 million, the company announced.

EPRA NTA per share was €2.17 compared to €2.15 at 31 December 2023. EPRA NTA was €1,247 million compared to €1,232 million at 31 December 2023, it also stated.

Debt amounted to €1 319 million compared to €1 274 million at 31 December 2023.

The increase is mainly related to long-term loans of €56 million combined with exchange rate differences on HUF-denominated bonds of €5 million; this was offset by repayments during the period of €5 million. The current portion of long-term debt increased due to the reclassification of the loan relating to Galeria Jurajska due to its upcoming maturity in Q1 2025, the company reported.

The weighted average maturity of the debt was 3.6 years and the average interest rate was 2.58% per annum.

The net LTV ratio was 48.1% (49.3% on 31 December 2023). The net LTV ratio adjusted for cash transferred to escrow accounts was 47%.

The cash balance was €122 million on 31 March 2024 (€60 million on 31 December 2023).

"The first quarter was very good. Indexation once again had a positive impact on our revenues, which grew by 7%. We also recorded a significant increase in FFO, which, combined with the inflow of funds from the new loan agreement, contributed to a comfortable cash balance of €122 million and a decrease in LTV to 48.1%," commented Gyula Nagy, CEO of GTC.