News Article CEE coronavirus financial report GTC report
by Property Forum | Report

At the end of 2020, GTC’s property portfolio reached €2.1 billion while total revenues were at €160 million. Profit before tax and fair value adjustments reached €66 million in 2020, down from €73 million in 2019. Occupancy across the whole portfolio was steady at 91% despite a very challenging environment. GTC presented its 2020 financial results.

2020 financial highlights

  • Gross margin from rental activity at €119 million in (€128 million in 2019), despite €15 million impact of COVID-19
  • Operating profit: profit before tax and fair value adjustments at €66 million in 2020 (€73 million in 2019)
  • LTV at 45% (44% as of 31 December 2019)
  • Strong liquidity position with cash and cash equivalents at €272 million as of 31 December 2020
  • Green bonds issued in the amount of €110 million in December 2020 (33% oversubscription) followed by bonds issue of €54 million in March 2021 (25% oversubscription)

2020 portfolio highlights – office

  • Pandemic slows leasing activity, but it still reached 70,000 sqm in 2020:
  • Occupancy remained strong at 90% as of 31 December 2020 (95% in December 2019) despite new completions with lower than average occupancy
  • Completion of 3 office buildings: Green Heart N3 in Belgrade (5,400 sqm), Matrix B in Zagreb (10,700 sqm), ABC 2 in Sofia (17,800 sqm)
  • Acquisition of a land plot in Budapest for future growth
  • Start of construction of Sofia Tower (8,300 sqm)
  • Strat of the redevelopment of Center Point 1&2 in Budapest

2020 portfolio highlights – retail

  • Renegotiation of contracts with retailers
  • Gross margin impacted by €15 million in 2020 due  to COVID-19 lockdowns and related tenant’s support measures
  • Temporary discounts in return for material extensions allowed to keep the WALT at 3.6 years as of 31 December (4.0 years at 31 December 2019)
  • Occupancy remained strong at 95%
  • Strong rent collection: 97% of invoiced retail rent paid for 2020

“During the last few years, including 2020, we have grown our property portfolio through development and smart acquisitions, tightened our financial policy and strengthened our liquidity. Our asset management teams delivered excellent service to our tenants and maintained high levels of occupancy. The Group heightened its attention to ESG matters, issued green bonds and strengthened its contribution to the well-being of the communities it creates. We are proud that these accomplishments prepared us for the unforeseen challenges posed by the outbreak of COVID-19 during 2020,” commented Yovav Carmi, GTC’s President of the Management Board.

“At the end of 2020, our property portfolio reached €2.1 billion. Total revenues were at €160  million. The Group's EPRA net asset value now stands at €1.1 billion, reflecting the high quality of our portfolio and low leverage: net loan-to-value was 45% at year-end. GTC has a record low cost of debt averaging 2.3% and a strong net interest coverage ratio of 3.7. Occupancy across the whole portfolio was steady at 91%. And all of that despite a very challenging environment,” added Yovav Carmi, GTC’s President of the Management Board.

Yovav Carmi

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 »

“GTC remained active on the capital markets in 2020, raising about €110  million of senior unsecured bonds, providing additional flexibility that will be used for a combination of debt repayment, new developments and acquisitions. We issued green bonds, further demonstrating our commitment to sustainability and financial innovation. The Group’s strong market position was also confirmed by investment grade rating BBB- by Scope Ratings. Total available liquidity of the Group was €272  million at the end of 2020. As a result, GTC's finances are prepared for any opportunities or uncertainties which may lie ahead,” commented Ariel Ferstman, GTC’s CFO and Member of the Management Board.