Rent indexation shall provide for further FFO increase, while low interest cost and improved maturity profile offer downside protection, says GTC.
Q1-Q3 2022 financial highlights
- Rental revenues up to €126 million in 9M 2022 (€124 million in 9M 2021)
- Gross margin from rental activity at €92 million in 9M 2022 (€93 million in 9M 2021)
- FFO I at €54 million in 9M 2022 (€52 million in 9M 2021), FFO per share at €0.09
- EPRA NTA at €1,315 million as of 30 September 2022, EPRA NTA per share at €2.29 (PLN 11.15)
- Net LTV at 44.3% (42.0% as of 31 December 2021)
- Cash position of €128 million and available credit facilities in the amount of €94 million
Q1-Q3 2022 portfolio highlights
- Occupancy at 89% as of 30 September 2022 (90% as of 31 December 2021)
- Leasing activity reached 106,300 sqm in 9M 2022 (101.900 in 9M 2021), however, leasing peaked in Q3 2022 with 34,700 sqm leased across the portfolio
- Average weighted lease term at 3.6 years
- 88% of assets are green certified, 11% under the certification process
Disposals
- Cascade office building closed in July 2022
- Forest Offices Debrecen: closing expected by the end of Q4 2022
- Matrix A and B: the transaction will mark a return on cost exceeding 22% and is about 7% above the book value; closing is expected by the end of Q4 2022
“We have a very solid, well-performing property portfolio, with retail assets outperforming the market. Rent indexation embedded in our EUR-denominated rental rates shall allow for further FFO increase in 2023 and in case of any shift in the yields shall offset the potential impact on values. We believe that green credentials and rent indexation offer a silver lining while we are traded at P/Bs of 0.6-0.7x and an FFO yield of around 8%, our share is not expensive”, commented Zoltán Fekete, GTC’s President of the Management Board.
“Following last year’s refinancing, we have been able to significantly decrease our cost of financing and improve the maturity profile of our debt - we do not have any significant near-term maturities. 95% of our debt based on the fixed interest rate or hedged and average debt maturity is 4.5 years, which combined with strong cash position shows the strength of our balance sheet”, says Ariel Ferstman, GTC’s CFO and Member of the Management Board.
