Globalworth Real Estate Investments : 2023 Interim Results Presentation

GLOBALWORTH

CEE'S LEADING OFFICE LANDLORD

2023 Interim Results Presentation

GLOBALWORTH OVERVIEW

Green Court Complex, Bucharest

GLOBALWORTH SNAPSHOT

Snapshot

• Globalworth is a leading real estate Group with a primary focus on Poland and Romania, the two largest markets in the CEE
• We acquire, develop and manage commercial real estate assets, primarily in the office sector
• • Prime locations in key cities
  • Modern assets with excellent environmental credentials
  • Established, blue chip and mostly international tenants
  • Primarily long term, Euro-denominated,triple-net and inflation-linked leases
• Internal and multi-disciplinary management platform
• • extensive experience in target markets
  • +260 professionals mainly located in Warsaw and Bucharest
• Dividend policy of
• • 90% of EPRA Earnings
• Strong and supportive shareholder base including the controlling consortium of CPI Property Group and Aroundtown (via Zakiono Enterprises Ltd) holding 60.7%, and Growthpoint Properties (29.4%)

Portfolio

• Present in 13 of the largest and most liquid sub- markets in Poland and Romania
• Principally focus on class "A" office and select other high-quality investments
• Strong Tenant Base mainly of large or established national and multinational corporations

		22.0%
49.8%	50.2%
		78.0%
Poland	Romania	Office Other

Select Metrics

Operating figures:

€3.1bn	72
GAV	Standing Properties
1,422.9k	€2.4bn
Standing GLA	Green GAV
85.5%	€202.2m
Occupancy	An. Contracted Rent
13.3k	4.9yrs
Dev't GLA	WALL

Financial Key Figures:

42.7%	BBB - / BB+
LTV	Credit Rating
3.3%	€0.85bn
Avg. debt cost	in 2 Eurobonds

OUR BUSINESS MODEL

Our Resources &	Proven Investment	Our Core	Creating Sustainable
Relationships	Model	Activities	Long-term Value

Skilled Team

In-house team of professionals with strong functional and local knowledge of their markets.

Financial Strength

Conservative financing policy, with simple debt structure and Euro- denominated assets, liabilities and

Locations

Prime locations in fast-

growing regions of Poland

and Romania

Sector

Primarily Class A office, with mixed-use and industrial a secondary focus

13 cities

Invest in real estate opportunities

• Acquire standing properties and land
• Develop (or refurbish) new properties
• Allocate capital to deliver growth and risk-adjusted returns

Financial

Generate long-term sustainable and

attractive, risk-adjusted returns through yield and capital appreciation, allowing us to create the capacity to distribute

dividends for our shareholders.

• Rental growth
• Portfolio value appreciation
• EPRA NRV growth
• Sustainable and recurring dividend

revenues, and a supportive shareholder base.

Scale and Reputation

Trusted brand and scale creating new opportunities and business efficiencies.

Valued relationships

Longstanding partnerships with leading real estate industry specialists and credible financial institutions.

Office 78.0%

of GAV

74.7% of

Properties

Modern high-quality standing

properties with

environmental certification, or with potential to gain it

Tenants

Diversified base of large or established national and multinational corporations

100% of

standing GAV with or under certification

Manage Our

Portfolio

▪ Offer best-in-class asset

and property

management services

▪ Enhance the

attractiveness and

performance of our

Create

Communities

▪ Create an environment

in which people want

to work in and be

associated with

▪ Connect with the local

communities

▪

Non-Financial

Create a Group and an environment in which people want to work, do business,

and be associated with.

• Invest in sustainable and environmentally friendly buildings which help businesses grow.
• Create safe and healthy spaces where people want to work and be associated with.
• Assist and improve the communities we are part of by creating opportunities and making a positive contribution

contracted rent from multinational tenants

Lease terms	93.4%
	contracted
Revenue streams backed	GLA secured
by long-term, Euro-	with triple net
contracts
denominated, triple net,
inflation-linked leases

properties and satisfy

our partners'

requirements

▪ Create sustainable and

efficient properties

reflecting what matters

to both our occupiers

and the people who

work in and use our

premises

Improve quality of life,

interaction and

communication, and

promote, simplify and

advance business

FOCUSED ON OPERATIONAL EXCELLENCE &

SUSTAINABLE GROWTH

Strengthened	Effectively Asset	Preserved and/		Investment
Our Position in	and Property	or Protected	Flexible	in Sustainable	Resilient
Core Markets	Managing our	Operational	Capital	Environment	Operating
of Operation	Real Estate	Efficiency	Structure	& Communities	Performance

• Completed the development of Targu Mures Logistic Hub adding 18.3k sqm of space to our portfolio
• Undergoing Developments - two logistic / light-industrial facilities in Romania (13.3k sqm)

• Continuing with the refurbishment / repositioning of two mixed-use properties in Poland

• We signed contracts with 107 tenants for 181.0k sqm of commercial space at an average WALL of 6.9 years
• Standing commercial occupancy adjusted for Warta Tower in Warsaw (property sold in July), of 87.7%

• Total annualized contracted rent up by
  6.8% to €202.2m

• Most of our contracted rent from office and industrial spaces (90.5% of annualised contracted rent) and 94.1% in active leases
• Rate of collections for rents invoiced and due remained high at 99% in the first half of 2023 as a result of our high tenant quality and low single tenant dependency

• Continued to internalise property management, with 97.0% of office and mixed-use standing properties by value managed in-house

• High liquidity of €130.5 million plus €265 million in undrawn revolving credit facilities (€215m expiring in 2024 and €50m expiring in 2025), with no material debt maturity until March 2025
• Drew the €110 million ten-year term secured debt facility for refinancing of the
  Company's logistics / light industrial portfolio in
  Romania (€96.5 million was made available to the Group and the difference to one of the Group's joint venture companies)
• Buyback of €100 million nominal value of FY18/25 bonds by paying a cash consideration of €83.2 million
• Fitch Ratings re-affirmed, in July 2023,
  Globalworth's investment grade rating and changed the outlook to negative.
  S&P revised Globalworth's credit rating to BB+ with a stable outlook

• €2.4 billion certified properties: 52 green standing certified properties, accounting for 87.1% of our standing commercial portfolio by value
• 95.8% of our office and mixed-use properties by value have a WELL Health-Safety rating, further demonstrating the quality of our portfolio

• Maintained our low-risk rating by Sustainalytics and our MSCI rating to
  "A"

• Adjusted normalised
  EBITDA of €66m, 4.1% higher than in H1 2022.
• €102.9 million negative revaluations in our consolidated properties due to challenging macroeconomic and geopolitical environment and capex invested in our portfolio not fully reflected in valuations

• Dividend paid to shareholders of €0.15 per share in the first 6 months of 2023 (for H2- 2022). Shareholders representing 98.1% of total issued capital have elected Scrip Dividend Alternative