H1 2017 HIGHLIGHTS:
- Development profit of €51m driven by projects under construction and revaluation of income generating portfolio
- Profit before tax at €68m in H1 2017 (€46m in H1 2016)
- Earnings per share up to €0.13 in H1 2017 (€0.08 in H1 2016)
- EPRA NAV increased 6.6% to €956m (€897m as of 31 December 2016)
- EPRA NAV / share increased 4.2% to €2.03 as of 30 June 2017 from €1.95 as of 31 December 2016
- Gross margin from rental activity increased to €43m in H1 2017 (€42m in H1 2016)
- FFO I stable at €21.5m (€21.9m in H1 2016) despite disposal of the malls in Bulgaria
- FFO I / share at €0.05 (€0.05 in H1 2016)
- €68.5m newly issued Euro denominated bonds to refinance existing expensive PLN bonds
- Financing and refinancing activity on project level of approx. €326m in H1
PORTFOLIO UPDATE:
- 5 projects under construction with over 174,000 sq. m GLA with 72,300 sq. m to be completed in Q3 2017 (Galeria Północna and Artico office building, Warsaw)
- 239,000 sq. m of retail and office space is in the planning stage in 8 projects (Warsaw, Budapest, Bucharest, Sofia and Zagreb)
- Strong leasing performance with 61,500 sq. m of office and retail space newly leased and renewed extending current WALT
- Occupancy at 94% (93% as at 31 March 2017) thanks to improvement in Galeria Jurajska and tenants expansion mainly in FortyOne complex
“The first half of 2017 was dedicated to advance planning and permitting on our development pipeline projects as well as acquisition of excellent new office locations in the fastest growing office markets of Budapest, Bucharest and Sofia. The opening of Galeria Północna in Q3 2017 will more than double the value of GTC’s income producing retail portfolio. More completions in Budapest and Belgrade planned for 2018 will further strengthen our yielding retail and office portfolios and contribute significant to rent income and NAV growth. As a result we have today 5 projects under construction and 8 projects in the planning stage, they will boost our income generating portfolio by 0,4 m sq. m GLA from 2017 to 2020”said Thomas Kurzmann, GTC’s CEO.
“Thanks to the expansion of the company’s operations and development we secured long term financing through new bonds and refinancing activity. We continue to take advantage of the current low interest levels to significantly improve the costs of our debt, while optimizing the leverage ratio” commented Erez Boniel, GTC’s CFO. “Additionally, growing activity and improving results allowed us to pay dividend in Q2, which is another milestone in our growth momentum” he added.
