GTC reported EUR 23.41 million in consolidated net profit attributable to shareholders of the parent company in 2022, compared to EUR 41.65 million in profit a year earlier, the company said.
Gross profit from operations amounted to EUR 119.2 million, compared to EUR 127.6 million profit a year earlier. Adjusted EBITDA was €101 million vs. €113 million profit on this basis a year earlier.
Gross margin from operations: 119 million euros in 2022 compared to 128 million euros in 2021. This was driven primarily by an increase in service costs (due to inflation), a decline in the average occupancy rate in Poland and Romania, and the loss of rental and service income following the sale of the Serbian office portfolio, the company announced.
Adjusted EBITDA was €101 million (€113 million in 2021), and net [total] profit was €25 million 2022 (€43 million in 2021). This was mainly attributable to the recognition of lower operating profit, a higher loss on asset revaluation and higher foreign exchange losses, which was partially offset by lower financial expenses, GTC reported.
Consolidated rental income reached €123.56 million in 2022, compared to €130.29 million a year earlier. Revenues from real estate services amounted to €43.01 million vs. €41.66 million a year earlier.
Rental and service revenues: 167 million euros in 2022 compared to 172 million euros in 2021. The Group reported a decline in rental income (in the amount of €25 million) as a result of the sale of the Serbian office portfolio in Q1 2022 and the Cascade office building in Q3 2022. There was also a decline in the average occupancy rate of the office property portfolio in Poland and Romania, which had a negative impact on revenues. The decline was partially offset by an increase in rental income due to the acquisition of income-generating properties and the completion of Pillar in Budapest and GTC X in Belgrade (€15 million), as well as an increase in rental income in the retail property portfolio (€11 million) as a result of the completion of COVID-19-related reductions and other measures taken to assist retail tenants. The Group also recorded an increase in the average rental rate after indexation for inflation (CPI for Europe), GTC expressed.
FFO is €68 million in 2022 (€74 million in 2021), with FFO per share of €0.12.
EPRA NTA was €1,273 million as of December 31, 2022 (€1,272 million as of December 31, 2021). EPRA NTA per share was €2.22 (PLN 10.40).
The net LTV ratio was 44.5% (42.0% as of December 31, 2021).
The occupancy rate was at 88% as of December 31, 2022 (90% as of December 31, 2021).
GAV reached €2,288 million as of December 31, 2022 (compared to €2,507 million as of December 31, 2021) mainly due to the sale of the office property portfolio in Serbia (€267 million), the sale of the Cascade Office Building, Matrix A and B office buildings (€61 million), the sale of land in Poland (€9 million) and an impairment to assets (loss of €27 million). The decline was partially offset by investments mainly in properties under construction (92 million euros) and in the acquisition of new land in Serbia and properties in Hungary (59 million euros), GTC reported.
“With changes in the office real estate market accelerated by the Covid-19 outbreak and the introduction of a hybrid working model, 2022 was marked by the expansion of our strategy into new market segments and new geographic areas. GTC has invested in a technology center, which provides diversification of our business and excellent opportunities for value creation. We will look for opportunities in the broader real estate market to further diversify our revenue streams and strengthen the position of our company. We ended 2022 by remodeling our portfolio to include exposure to higher-rated countries, confirmed by our investment grade rating and strong cash position. We are well positioned for the coming years, both in terms of maintaining our current real estate portfolio and further developing our business,” commented CEO Zoltán Fekete, quoted in the material.
On a standalone basis, net profit in 2022 was €23.34 million, compared to €41.65 million profit a year earlier.
GTC Group is a real estate investor and developer with a focus on Poland and the capitals of Central and Eastern European countries. The company has been listed on the WSE since 2004.
Source: GTC Group and ISBnews
