GTC has released the company’s financial results for the first nine months of 2021; highlights include:
Gross margin from rental activity at €93 million in 9M 2021 (€91 million in 9M 2020)
Adjusted EBITDA at €83 million in 9M 2021 (€82 million in 9M 2020)
FFO at €52 million in 9M 2021 (€54 million in 9M 2020), FFO per share at €0.11
EPRA NAV at €1,149 million as of 30 September 2021, EPRA NAV per share at €2.37 (PLN 10.96)
Investment of €339 million into the acquisition of income-generating assets and landbank for future development
Occupancy at 91 percent as of 30 September 2021 (91 percent as of 31 December 2020)
“The acquisitions that we conducted over 2021 allowed us to recognize approx. €7 million of additional gross margin, which more than compensated the negative impact from COVID-19 and the sale of Spiral. The results after the three quarters of 2021 are showing an upward trend with all the main parameters above the comparable for 2020. Leasing activity is not as strong as in pre-COVID times however we have been able to keep our occupancy at the 91 percent level. We see retail tenants expanding in all our markets and shopping malls. Our malls, especially in Poland and Serbia, are reviving after each lockdown and showing the turnover results better than even in 2019. In terms of office tenants, they tend to stay in their current locations and not look for new office space, which works in our favour. Towards the end of the year, we still have a capital increase in front of us. We have identified income-generating assets that we want to invest in. We would like to deploy the new funds coming into the Company to grow the business further,” commented Yovav Carmi, GTC’s President of the Management Board.
“We completed the repayment of loans from the green Eurobonds we issued in June 2021. We refinanced 9 loans for a total of €452 million. As we said earlier this year our goal is to be predominantly funded with unsecured debt and to be able to meet this goal we will tap the bonds market again at the latest at the beginning of 2022,” commented Ariel Ferstman, GTC’s CFO and Member of the Management Board.
Operating achievements
Offices: A mix of acquisitions and disposals combined with stronger leasing activity
€310 million invested in 5 office buildings and one mix-use project in Hungary will contribute €19.2 million p.a. to GTC’s in-place rent
Vaci Green D (Budapest)
Ericsson Headquarters and evosoft Hungary Headquarters (Budapest)
V188 (Budapest)
Hegyvidék Retail and Office Centre (Budapest)
Forest Offices (Debrecen)
Acquisition of a land plot in Sofia and Budapest
Disposal of Serbian office buildings for €268 million (above the book value) to be closed in Q4 2021
122,200 sqm A-class office space
11 office buildings
Commencement of construction of GTC X
16,800 sqm A-class office space to be completed in Q3 2022
€3.5 million expected in-place rent after stabilization
Leasing activity reached over 71,000 sqm in 9M 2021 (66,700 sqm in 9M 2020)
Occupancy at 90 percent as of 30 September 2021 (90 percent in December 2020)
83 percent of office assets green certified
Retail: Currently, 100 percent of the space is operational, however, COVID-19 related restrictions in the region are in place
Occupancy at 95 percent as of 30 September 2021 (95 percent as of 31 December 2020)
Avenue Mall and Ada Mall showed an increase in gross margin from operations of €1.1 million while Polish and Bulgarian assets were negatively impacted by €2.1 million
Polish and Serbian assets continued to show improvement in the malls’ turnover in Q3 2021
85 percent of retail assets green certified
