OUR PURPOSE

Globalworth's mission is to create value for its shareholders, tenants, and the local communities by acting consistently in an ethical and socially responsible manner.

Creating an environment in which people want to work and be associated with is a key objective for the Group, achieved through building a vibrant, modern and greener portfolio.

OUR VALUES

integral to our culture is adhering to the highest standards of ethical business practices and living by our values, which are:

More on our values and behaviours on page 00

OUR CULTURE

-

we believe that having the right culture within Globalworth has been integral to the success of the Group over the past few years.

  • - elements of the culture are visible in the work of the Globalworth Foundation and other corporate social responsibility projects that we are engaged in.

  • - we have a management team that is focused on ensuring that we have a strong work ethic whilst also trying to create a positive working environment.

  • - our Board of Directors places significant importance on the roles of business ethics, sustainable development and corporate social responsibility within the overall approach of the Group.

Visit us online: WWW.GLOBALWORTH.COM

Overview

strategic report

HiGHLiGHTS

portfolio reviewgovernancefinancial statementsadditional information

OUR PERFORMANCE 2020 has been a year of significant challenges, with a first quarter full of optimism coming to an abrupt halt in March due to the COVID-19 pandemic. Our proactive approach, combined with the quality of our portfolio, and the strength of our team have resulted in a very resilient 2020 operating performance. We are in the best possible position to emerge stronger in due course and as a relative winner from the current turbulent times.

FiNANCiAL HiGHLiGHTS1

Portfolio Open Market

Shareholders'

value

equity

€3.0bn

€1.8bn

€3.0bn (2019)

€1.9bn (2019)

iFrS earnings

Adjusted Normalised

Before Tax

eBiTDA

-€30.5m

€141.6m

+€207.7m (2019)

€129.0m (2019)2

iFrS earnings per Share

ePrA earnings per Share

-21 cents

37 cents

+93 cents (2019)

44 cents (2019)

ePrA NAv per Share

Net Operating income

€8.68

€157.3m

€9.30 (2019)

€147.7m (2019)

Dividend per Share

34 cents

60 cents (2019)

1. please refer to the glossary (pages 178-180) for the definitions used and the financial review section (pages 46-50) for further details.

2.

the 2019 comparative has been adjusted downwards by €5.8 million, related to the apportionment of part of the noig/rga settlement.

CONTeNTS

Overview

Highlights 1

at a glance 2

investment case 3

covid-19 response 4

Strategic report

chief executive's review 10

our markets 14

Business model 16

strategy 18

Key performance indicators 20

standing portfolio review 24

developments review 28

asset management review 36

capital markets review 42

financial review 46

financing and liquidity review 52

OPerATiONAL HiGHLiGHTS

  • - total combined portfolio value remained effectively unchanged at €3.0 billion.

    - €2.3 billion in environmentally certified properties.

  • - performed an extensive review of our cost base, passing on service charges savings to our tenants and reducing our administrative expenses by c.7.0% vs 2019.

  • - focused developments only on projects with significant pre-lets or advanced level of construction, delivering two class "a" offices and two high-quality industrial facilities in romania and poland with 95.8k sqm of gla.

  • - overall standing portfolio footprint increased by 4.7% to 1,271.3k sqm of gla.

  • - leasing transactions for a total of 303.5k sqm of commercial space at an average wall of 3.9 years.

    - 74.3% related to lease renegotiations / extensions with our existing tenants.

  • - standing commercial occupancy remained high at 90.9% (91.7% including tenant options) as at year-end, impacted however by the delivery of properties under development still in lease-up stage and a 3.3% decrease in like-for-like occupancy due to the very challenging market conditions.

  • - annualised contracted rent of €183.4 million, of which 91.3% from office and industrial properties.

  • - rate of collections for rents invoiced and due remained high at 99.0% for the year.

  • - majority of portfolio now internally managed, by our team of over 220 professionals in poland and romania.

  • - maintained our investment grade by all three major rating agencies.

  • - issued our inaugural green bond, raising €400 million with a 6-year term, which was more than 2x oversubscribed.

  • - further improved our debt maturity profile, through the repurchase of c.41% of the notes maturing in 2022 at a 2.0% premium to their par value.

  • - c.€2.0 million contributed to our communities towards 27 initiatives in romania and poland, with the majority targeted towards the fight against covid-19.

stakeholder engagement 54

viability statement 58

sustainable development update 60

the globalworth foundation 64

Portfolio review

portfolio snapshot 68

present in 10 cities 70

Governance

introduction to governance 76

Board of directors 82

directors' report 84

report of the audit committee 88

report of the risk committee 94

report of the nomination committee 103

report of the remuneration committee 104

Financial Statements

consolidated financial statements 110

notes to the financial statements 114 independent auditor's report to the members of globalworth real estate

investments limited 163

Additional information

schedule of properties 166

new epra nav metrics 176

investing policy 177

glossary 178

company directory 181

Globalworth annual report and financial statements 2020

1

AT A GLANCe

CREATING ENVIRONMENTS WHERE BUSINESS CAN FLOURISH

iNveSTMeNT CASe our established platform, clear strategy and financial strength provide firm foundations for future value creation.

Globalworth is a leading real estate company with a primary focus on Poland and Romania, the two largest markets in Central and Eastern Europe ("CEE").

- poland and romania, globalworth's two focus markets, offer compelling macroeconomic and real estate fundamentals with broad opportunities for value creation.

- we are a multi-skilled platform, with substantial on-the-ground operations in our focus markets, with a team of over 220 experienced professionals combining local insight with an international approach.

- we own a sizeable and modern portfolio in prime locations, principally of class "a" offices, but also including a number of landmark and strategic investments mainly in mixed-use (office/commercial) and industrial properties.

the company acquires, develops and manages commercial real estate assets, primarily in the office sector, with the objective of being the landlord of choice for the broad and growing variety of multinational corporations in the region.

See more information on page 14

See more information on page 62

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STRONG CASH FLOWS

TRACK RECORD OF CAPITAL DISCIPLINE AND ACCESS TO BOTH PUBLIC AND PRIVATE CAPITAL MARKETS

MULTIPLE GROWTH DRIVERS TO OUR BUSINESS

globalworth has a real estate portfolio valued at €3.0 billion, managed by an internal team of over 220 professionals mainly located in poland and romania.

-

our portfolio benefits from high occupancy rates and is predominantly leased to a diverse and international tenant base on triple-net, long-dated, euro-denominated leases.

- we take a conservative and sustainable approach to financing, with diversified sources of capital.

-

we continuously explore our markets for value-added investment opportunities in poland and romania.

- our assets, liabilities and revenues are principally euro-denominated, minimising local currency exposure.

- we proactively seek asset management initiatives for our portfolio and operations, targeting enhanced revenue streams and improved efficiency.

See more information on page 46

See more information on page 42 and 52

See more information on page 18

2

Globalworth annual report and financial statements 2020

Globalworth annual report and financial statements 2020

3

Overview

strategic reportportfolio reviewgovernancefinancial statementsadditional information

FOCUS ON THE LARGEST REAL

STRONG MANAGEMENT PLATFORM

HIGH-QUALITY REAL

ESTATE MARKETS IN THE CEE

WITH LOCAL PRESENCE

ESTATE PORTFOLIO

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Globalworth Real Estate Investments Limited published this content on 26 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2021 07:06:01 UTC.