Globe Trade Center (GTC) recorded EUR 70.19mn of consolidated net loss attributable to shareholders of the parent company in 2020 vs. EUR 74.83mn profit a year earlier, the company said in the report.
“Profit before tax and fair value adjustments was EUR 66 million, but the net loss in 2020 was EUR 71 million. This is mainly due to the recognition of a revaluation / impairment loss (EUR 143 million), combined with a decrease gross operating profit related to the outbreak of the COVID-19 pandemic (15 million euros), partially offset by the recognition of tax profit (5 million euros), “reads the results release.
Consolidated rental income reached EUR 120.65 million in 2020 compared with EUR 127.81 million a year earlier. Consolidated revenue from services is EUR 39.74 million in 2020 compared with EUR 41.95 million a year earlier.
The decrease in [total rental and services revenues] by 10 million euros to 160 million euros from 170 million euros in 2019. This is mainly due to the decline in rental revenues due to governmental rent reductions for the closing period of shopping centers and discounts and reductions granted by the group to tenants of retail space in connection with the outbreak of the COVID-19 pandemic (EUR 15 million). The result was also affected by the decline in rental income after the sale of GTC White House in Q3 2019, Neptune Office Center in Q4 2019 and Spiral in Q4 2020 (EUR 4 million). The decrease was partially offset by an increase in rental income due to the completion of Ada Mall, Green Heart, ABC I and Matrix A (EUR 9 million).
The gross rental margin was 119 million euros (128 million euros in 2019), despite the negative impact of COVID-19 of 15 million euros. Profit before tax and fair value adjustments is € 66 million (€ 73 million in 2019).
“For several years, including in 2020, we have been constantly expanding our real estate portfolio through development and thoughtful acquisitions. We tightened our financial policy and strengthened liquidity. Our asset management teams provided tenants with excellent service, maintaining a high level of rent. We increased our commitment in the ESG area. We are proud of the steps that have prepared us for the unpredictable challenges of the COVID-19 pandemic in 2020, “said CEO Yovav Carmi,.
“At the end of 2020, our real estate portfolio has reached a value of EUR 2.1 billion and total revenues of EUR 160 million. EPRA NAV, i.e. the group’s net asset value, is currently EUR 1.1 billion, reflecting the high quality of our portfolio and low financial leverage. , with a LTV of 45% at year-end GTC has a record low cost of debt of 2.3% and a high net interest coverage ratio of 3.7x. The overall rent ratio has remained stable at 91% for the entire portfolio. all this despite very unfavorable business conditions, “added Carmi.
He also pointed out that GTC remained active in the capital markets in 2020, issuing unsecured senior bonds for an amount of around EUR 110 million, which will provide additional flexibility as well as be used to repay debt and finance new investments and purchases.
“We also issued green bonds, confirming once again our commitment to sustainable development and innovation in the area of finance. The strong market position of the group was also confirmed by the BBB- investment rating awarded by Scope Ratings. The total available liquidity of the group at the end of 2020 was EUR 272 million. Thanks to this, GTC is financially prepared for any opportunities and uncertainties that may arise “- said CFO Ariel Ferstman.
In 2020, the company leased 70 thousand. sqm, despite the decline in lease due to the pandemic. The occupancy rate was 90% as of September 31, 2020 (95% in December 2019), despite the completion of investments with below-average rent levels. GTC completed office buildings: Green Heart N3 in Belgrade (5,400 sqm), Matrix B in Zagreb (10,700 sqm), ABC 2 in Sofia (17,800 sqm). In addition, it purchased plots of land in Budapest for a future investment, commenced the construction of Sofia Tower (8,300 sqm) and the modernization of Center Point 1 and 2, and also exchanged.
The GTC Group is one of the leading companies in the commercial real estate sector in Central, Eastern and Southern Europe, offering office and retail space. The company has been listed on the WSE since 2004.
