GTC proceeds with transformation to unsecured debt

H1 2021 financial highlights

• Gross margin from rental activity at €59 million in H1 2021 (€59 million in H1 2020)
• Adjusted EBITDA at €52 million in H1 2021 (€52 million in H1 2020)
• FFO at €31 million (€33 million in H1 2020), FFO per share at €0.06
• Strong liquidity position with cash and cash equivalents at €246 million as of 30 June 2021
• Investment of €268 million into the acquisition of income-generating assets and landbank for future development
• Occupancy at 91% (91% as of 31 December 2020)           

“During the first half of the year, we concentrated on the reshuffling of our portfolio. We signed the preliminary agreement to dispose of our Serbian office portfolio, securing however our future growth in Belgrade with the acquisition of a land plot designated for a large scale phased office project and even starting a new office project GTC X. Additionally, we invested heavily into Budapest-based Class A office properties to shift towards higher-rated markets. We also focused on operations on our malls, which after the last lockdown, are delivering tremendous results, with malls’ turnover being well above 2019 statistics, especially in Poland. Also during this period, as the first real estate developer in the CEE region, we released the ESG report, a culmination of 25-years of GTC development based on quality offering, long-term relationships, and the transparency of our operations. It was a natural next step for our company as we consistently apply the corporate strategy based on providing real estate solutions that improve the way we live and creating a business platform that stands on trust and cooperation with stakeholders. The second half of the year will be similarly busy, as we are preparing ourselves for a capital increase and further investments,” commented Yovav Carmi, GTC’s President of the Management Board.

Yovav Carmi

President of the Management Board
GTC Group

President of the Management Board of  Globe Trade Centre S.A..  Yovav Carmi started his professional career in 1994 as an auditor at Ernst & Young, where he worked until 1996. In 1997, he worked for the Israel Securities Authority as an investigator. Between 1998 and 2001 he was a financial controller at the Kardan Group. Yovav Carmi has been a chief financial officer and member of the management boards of many of the Company’s foreign subsidiaries since 2001. Mr. Carmi was a member of the management board of the Company between 2011 and 2015. Starting 2015, he became Chief Operating Officer at GTC. Yovav Carmi graduated from Tel-Aviv University, where he obtained a B.A. degree in law and a B.A. degree in accounting. He also holds an MBA degree from Tel-Aviv University (1998). Moreover, Mr Carmi is a chartered public accountant in Israel. More »

“The first half of the year was marked with the change in our financing structure and move from individual secured bank loans for particular projects to predominantly unsecured bond funding. First of all, we went through the rating process and achieved a Ba1 rating with Moody’s Investors Services and investment-grade rating BBB- with Fitch. Later, we tapped the Eurobonds market for more flexible instruments and succeeded in issuing €500 million green Eurobond with a coupon of 2.25%. The book was 2.8x oversubscribed with peak orders in excess of €1.4 billion. This gives us great confidence and validates our change in strategy, business model and sustainable and responsible approach to our properties. I believe that we will be able to come back to the market later this year to complete our goal and refinance the majority of the remaining secured debt,” commented Ariel Ferstman, GTC’s CFO and Member of the Management Board.

Ariel Ferstman

Chief Financial Officer
GTC

Ariel Ferstman is a member of GTC’s Management Board and Chief Financial Officer since July 2020. He joined GTC in 2011 and has been leading the finance departments as a chief financial officer for GTC in Hungary, Croatia and Slovakia. Prior to joining GTC, Mr Ferstman spent over three years as the Financial Controller for BSR Europe, formerly listed on the Tel Aviv Stock Exchange, and five years as a senior auditor in Ernst &Young in Israel and Argentina. Ariel Alejandro Ferstman graduated cum laude from The University of Buenos Aires where he obtained a B.A. degree in accounting and finance. He also holds an MBA in Finance and Business Strategy from The Hebrew University of Jerusalem. Moreover, Mr Ferstman is a chartered public accountant in Israel and Argentina. More »

Operating achievements - offices

• €264 million invested in 4 office buildings and one mix-use project in Hungary: Váci Greens D (€51 million), Ericsson Headquarters and Siemens Evosoft Headquarters (€160 million), Váci 188 (€31 million), Hegyvidék Retail and Office Centre (€21 million)
• Acquisition of a land plot in Sofia designated for ABC 3 Office building
• Disposal of Serbian office buildings for €268 million (above the book value) to be closed in Q3 2021
• Commencement of construction of GTC X
• Leasing activity reached over 53,000 sqm in H1 2021 (70,000 sqm in 2020)

Operating achievements - retail

• Currently, 100% of retail GLA is allowed to trade
• Avenue Mall and Ada Mall showed an increase in gross margin from operations of €0.5 million while Polish and Bulgarian assets were negatively impacted by €1,100
• Polish assets showed tremendous improvement in malls’ turnover in May, June and July