GTC’s adjusted EBITDA was at €101 million in 2022 (€113 million in 2021), while the net profit amounted to €25 million (€43 million in 2021). This mainly resulted from lower gross margin from operations, higher loss from revaluation and foreign exchange loss, partially offset by lower finance costs.
“Following changes in the office market expedited by the Covid-19 outbreak and introduction of hybrid work, 2022 was marked with an expansion of our strategy into new market segments and new geographies. GTC invested in a technology hub, which provides diversification of our business and gives a great opportunity for value creation. We will be looking for opportunities in the broad real estate sector to further diversify our revenue streams and strengthen the company. We completed 2022 with a portfolio reshuffled towards higher-rated countries, a confirmed Investment Grade rating and a strong cash position. We are well equipped for the years to come, both to maintain our current real estate portfolio and further grow the business," commented Zoltán Fekete, GTC’s President of the Management Board.
Operating achievements - office
- Office occupancy at 84% as of 31 December 2022 (88% in December 2021)
- Leasing activity reached 110,600 sq m in 2022 (117,000 sq m in 2021):
- Disposals: Serbian office building portfolio in January 2022 (net proceeds: €125 million), Cascade Office Building in Bucharest in July 2022 (net proceeds: €10 million), Matrix A and B office buildings in Zagreb in November 2022 (net proceeds: €51 million), Forest Offices Debrecen office building in Hungary in January 2023 (net proceeds: €48m)
- Commencement of construction of Matrix C in Zagreb (10,500 sq m GLA) and Center Point 3 in Budapest (36,000 sq m GLA)
- Completion of 54,600 sq m with €10.8m p.a. of stabilised in-place rent
Operating achievements - retail
- Retail occupancy at 96% as of 31 December 2022 (95% as of 31 December 2021)
- Leasing activity reached 35,300 sq m in 2022 (46,600 sq m in 2021):
- Positive trends in retail continue, footfall is growing, and turnover exceeded pre-Covid levels (109% in Q4 2022 vs 2019 and 115% in Q4 2022 vs 2021)
Financial results
- Rental and service revenues were at €167 million in 2022 as compared to €172 million in 2021. The Group recognized a decrease in rental revenues of €25 million following the sale of the Serbian office portfolio in the first quarter of 2022 and the Cascade office building in the third quarter of 2022. Additionally, the Group observed a decline in the average occupancy rate of the office portfolio in Poland and Romania which had a negative impact on revenues. The decrease was partially compensated by an increase in rental revenues following the acquisition of income-generating properties and the completion of Pillar in Budapest and GTC X in Belgrade (€15 million) and an increase in rental revenues from the retail portfolio (€11 million) as a result of the end of the Covid-19 related discounts and measures taken to help the retail tenants. The Group observed also an increase in the average rental rate following the indexation of its rental rates to the European CPI.
- Gross margin from operations at €119 million in 2022 as compared to €128m in 2021. Mainly due to an increase in the service charge cost due to inflation, a decline in the average occupancy rate in Poland and Romania combined with a loss in rental and service revenues due to the sale of the Serbian office portfolio. Loss from revaluation of investment property amounted to €29 million as compared to €13 million loss in 2021
- Adjusted EBITDA was at €101 million (€113 million in 2021), and the net profit amounted to €25 million in 2022 (€43 million in 2021). This mainly resulted from lower gross margin from operations, higher loss from revaluation and foreign exchange loss, partially offset by lower finance costs.
