Trading Update and Unaudited Q4 2015 EPRA NAV

RNS Number : 3789V

Globalworth Real Estate Inv Ltd

15 April 2016

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

15 April 2016

Globalworth Real Estate Investments Limited

Trading Update and Unaudited Q4 2015 period-end EPRA Net Asset Value

Globalworth Real Estate Investments Limited ("Globalworth" or the "Company") is pleased to release the following:

·     Trading Update

·     Unaudited Q4 2015 period-end EPRA Net Asset Value

The EPRA Net Asset Value is presented in accordance with the stated intention of the Company to publish its estimated NAV on a quarterly basis.

2015 Highlights

·     Completed the acquisition of four Class "A" office buildings in Bucharest for a total of c.€173 million

·     Expanded the TAP light industrial complex in Timisoara by pre-letting and developing two new facilities of c.53,900 sqm to Continental and Elster

·     Increased the appraised portfolio value to €931.1¹ million, up c.55% from year-end 2014

·     Progressed with the construction of development projects which, on completion, are expected to increase the appraised value of the Company's real estate portfolio to c.€1,083.8² million

·     Standing GLA increased to 355,513sqm in 2015, of which 303,155 sqm of commercial space

o  Standing GLA / Commercial GLA rose to 410,199 sqm and 357,842 sqm respectively in Q1-16 following the delivery of the Globalworth Tower³ development project.

·     Average occupancy of commercial standing GLA increased to c.85.1% (77.2% at year-end 2014)

·     c.310,732 sqm of commercial space let or pre-let with a WALL of c.6.9 years

·     Unaudited EPRA NAV at 31 December 2015 of €9.08 per share, representing a c.12.2% increase over 12 months

1 Based on appraised valuation for standing and operational properties, properties under development and land, performed by Coldwell     Banker as of Dec 31^st 2015.

2 Appraised value on "Completion" performed by Coldwell Banker, assuming that properties under development projects were completed as    at Dec 31st 2015.

3 Globalworth Tower previously known as Bucharest One.

IMPORTANT NOTICE / FORWARD LOOKING STATEMENTS

This Announcement contains forward-looking statements. These relate to the Company's future prospects, developments and strategies.  Forward-looking statements are identified by their use of terms and phrases such as "believe", "could", "envisage", "estimate", "expect", "intend", "may", "plan", "will" or the negative of those, variations or comparable expressions, including references to assumptions and discussions of strategy, plans, objectives, goals, future events, intentions or expectations. The forward-looking statements in this Announcement, including as to expected or estimated NOI (net operating income), GLA and WALL, are current expectations based on a number of assumptions that reflect a substantial degree of judgment and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed or implied by the relevant statements.  Factors that could cause actual results and outcomes (including NOI) to differ materially include, but are not limited to, those discussed under "Risk Factors" in Part I of the Admission Document of the Company dated 24 July 2013.  These forward-looking statements speak only as of the date of this Announcement.

For further information visit www.globalworth.com  or contact: 

Panmure Gordon (Nominated Adviser and Joint Broker)            Tel: [phone]

Andrew Potts

Cantor Fitzgerald Europe (Joint Broker)                                          Tel: [phone]

Rick Thompson

David Foreman

Milbourne (Public Relations)                                                           Tel: [phone]

Tim Draper

About Globalworth:

Globalworth Real Estate Investments Limited is a real estate investment company founded by real estate investor and developer Ioannis Papalekas currently focused on taking advantage of investment opportunities in Romania. The Company's shares were admitted to trading on AIM in July 2013.

The Romanian market offers an attractive real estate investment proposition in the medium-to-long term. Globalworth believes that global investor capital flows will gradually move from markets considered as "safe havens" to more peripheral markets such as Romania in search of higher yielding investments. As a result, Romania should, in due course, become a more attractive destination for a wide investor audience. Globalworth anticipates holding an early mover advantage in and benefitting from this gradual shift in investor sentiment.

Update on Investments in Real Estate

Globalworth's real estate portfolio comprises 15 investments with a total of 19 assets⁴. With the exception of the TAP logistics/light industrial investment in Timisoara (one of the largest logistics hubs in Romania), our investments are located in Romania's capital, Bucharest.

The Company's focus is on managing and developing high quality assets, primarily in the office sector (c. 80.4% of appraised value as of 31 Dec. '15). In addition, we own a light industrial park (our only investment outside of Bucharest), a residential complex and two land plots. The majority of Globalworth's real estate portfolio is situated in the capital's new Central Business District ("CBD"), with our remaining assets being positioned in other prime locations.

In 2015, we increased the number of standing properties in our portfolio by six, four in Bucharest and two in Timisoara, and further progressed with our three development projects located in Bucharest's new CBD. The Company invested a total of c.€243.1 million over the course of the year resulting in an increase in the value of its portfolio to c.€931.1 million (as of 31 Dec. '15), c.€331.8 million higher than in 2014.

We acquired four standing Class "A" office properties in Bucharest, including the three transactions announced in Q4-14, for a total of c.€173.3 million.

Our new office additions included:

·     the internationally-acclaimed UniCredit HQ in Bucharest, ranked 17^th on the list of the 30 most architecturally impressive bank headquarters in the world in 2013

·     buildings "A" and "B" of the award-winning Green Court complex developed by Skanska in 2014/2015

·     Nusco Tower, a high-rise class "A" office property located at the entrance of the new CBD (opposite Globalworth Tower)

In May 2015 we delivered Phase I of the TAP/Continental investment, which involved the development of a c.44,800 sqm warehouse within our TAP complex in Timisoara. Subsequently, in August 2015, we expanded the complex by a further c.9,100 sqm following the completion of a new light production facility, let principally to Elster (part of Honeywell group). The complex will be further expanded with a fourth facility pre-let to Valeo, which is expected to be delivered within the next 18 months.

With the acquisition of UniCredit HQ and the delivery of the TAP (Continental) investment, we have now concluded all of the major investments set out in our April 2014 Equity Capital Raise.

		31 Dec. '14	31 Dec. '15
Number of Investments:		11	15
Number of Assets:		14	19
GLA (standing)(1):		224,479 sqm	355,513 sqm
Portfolio Value "As Is"(2):		€599.3m	€931.1m(3)
Portfolio Value "Completion"(2):		€889.8m	€1,083.8m
(1) Includes residential space of c.53,217 sqm on 31 Dec. '14 and c.52,358 in 31 Dec. '15. (2)"As Is" and "Completion" valuations as of 31 Dec. '14 and 31 Dec. '15.

Portfolio Breakdown by Classification "As Is" Valuation	31 Dec. '14	31 Dec. '15
Total "As Is" Valuation	€599.3m	€931.1m
of which: Standing Properties	76.8%	74.7%
of which: Developments	20.2%	23.4%
of which: Land for future development	3.0%	2.0%

Portfolio Breakdown by Classification "Completion" Valuation	31 Dec. 14	31 Dec. 15
Total "Completion" Valuation	€889.8m	€1,083.8m
of which: Standing Properties	98.0%	98.3%
of which: Land for future development(1)	2.0%	1.7%
Note: Development projects assumed to be completed. (1)      "Land for future development" is valued on an "As Is" basis.

Standing Properties

Our standing portfolio comprises 12 assets, valued at €695.1 million (as of 31 Dec. '15). In Bucharest we own 8 office properties and a residential complex, while in Timisoara we own a light industrial park comprising three facilities.

Our standing portfolio increased by c.131,400 sqm in 2015 following the acquisitions of UniCredit HQ, Nusco Tower, Green Court Building "A", Green Court Building "B" and the delivery of two new light industrial facilities in the TAP complex, (pre-)let to Continental and Elster. The total GLA of our standing portfolio reached c.355,500sqm as of 31 Dec. '15.

Like-for-like third-party valuation of our standing portfolio did not materially change during 2015, although the overall value of our standing portfolio increased by a total of c.€235.1 million, mainly as a result of the new additions.

All our properties are modern and have been completed or refurbished since 2008. Approximately 77.7% of our GLA and c.71.9% of our standing portfolio value has been delivered within the past c.6 years. It is worth noting that four of the six new additions in our standing portfolio include properties delivered to market in the past c.1 ½ years and, following the delivery of our development projects (Globalworth Tower - completed in Q1-16, Gara Herastrau and Globalworth Campus Phase "A"), the proportion of modern office stock in our portfolio will further increase by the end of 2016.

The number of 'green' properties owned by the Company has also risen with the addition of the UniCredit HQ (BREEAM Very Good), Green Court Building "A" and City Offices (both rewarded LEED Gold in 2015) and Green Court Building "B" (rewarded LEED Gold in 2016). We are targeting similar certifications for other properties in the portfolio and hope to receive these in the next 12 months.

Green Certified Properties
BOB:	·      BREEAM In-use / Excellent and LEED Gold certifications (for part of the property)
BOC:	·      BREEAM In-use / Excellent certification
UniCredit HQ	·      BREEAM VERY GOOD certification
City Offices	·      LEED Gold certification
Green Court "A"	·      LEED Gold certification
Green Court "B"	·      LEED Gold certification

In addition to our commercial portfolio, we own 435 apartments at Upground Towers (31 Dec. '15), a modern two-tower residential complex offering a total of 571 apartments benefiting from fine views of the nearby Tei lake. The property is ideally situated in the new CBD and in close proximity to our commercial portfolio, thus allowing us to leverage its use and provide a complete package to many of our international tenants looking for turnkey solutions when relocating operations.

In Q2-15, underpinned by the gradual improvement in the residential investment market, we actively marketed residential units in Upground Towers and, as a result, sold 14 apartments between May and December 2015 at an average price per unit of €129,400. In addition, we currently have 201 apartments leased, generating c.€1.5 million of annual rental income.

Total Standing Properties	31 Dec. '14	31 Dec. '15
Number of Investments	6	10
Number of Assets	6	12
GLA (sqm)(1)	224,479	355,513
"As Is" Valuation(2)	€460.0m	€695.1m

(1) Includes c.53,217 sqm and c.52,358 sqm of residential space in 31 Dec '14 and 31 Dec '15 respectively.                

(2) Appraised valuations as of 31 Dec. '14 and 31 Dec. '15.

Standing Properties - 31 Dec. '15	Commercial	Total
Number of Investments	9	10
Number of Assets	11	12
GLA (sqm)(1)	303,155	355,513
"As Is" Valuation(2)	€595.6m	€695.1m
Occupancy(3)	85.1%	85.1%
Contracted Rent	€36.3m	€37.8m
WALL(3)	6.0yrs	6.0yrs

(1) Includes c.52,358 sqm of residential space as of 31 Dec '15.

(2) Appraised valuations as of 31 Dec. '15.

(3) Occupancy and WALL exclude residential units.

Developments

Continental's Phase-I light industrial space and Elster's light production facility, part of our TAP complex in Timisoara, were both delivered in 2015. Further progress was also made with the development of our three office projects, all located in the new CBD of Bucharest. One of these, our flagship Globalworth Tower high-rise development, was delivered at the beginning of 2016.

Timisoara

In May 2015, we delivered a c.44,800 sqm light industrial space, let to the leading German automotive manufacturing company Continental Automotive, at our TAP complex in Timisoara. The complex was further expanded in August 2015 following completion of the construction of a c.9,100 sqm production facility let principally to Elster, a subsidiary of Honeywell and a leading global provider of gas, electricity and water meters and related communications, networking and software solutions.

At the end of 2015, the TAP complex comprised a total of c.81,349 sqm of GLA. In February 2016, Valeo exercised its option to expand further in the park by adding a new c.13,500sqm facility . This will be the third time within a c.1½ year period that a tenant has decided to lease space in the park, demonstrating the appeal of TAP to high quality multinational tenants.

TAP has the potential for further development, reaching to a total GLA of c.123,400sqm as a result of the extensions  available to the existing tenants of the park.

Bucharest

Globalworth Tower, our flagship project located in the heart of Bucharest's the new CBD, was effectively completed in December 2015 in line with the estimated timeline and became fully operational in Q1 '16. The majority of the current tenants are scheduled to move into Globalworth Tower in Q2 and Q3 '16.

As of 31 Dec. '15, the property was c.51.0% pre-let to high quality national and international tenants including Vodafone (telecoms), Nestor Nestor Diculescu Kingston Petersen (law), Huawei (telecoms), Delhaize / Mega Image (supermarket) and had a weighted average lease length of 10.9 years. In  Q1 '16, the occupancy rate increased to c.59.6%, mainly as a result of the take-up of an additional floor by Vodafone and of one floor taken-up by Globalworth (real estate). We are in active negotiations with a number of other tenants for the full occupancy of the property. Globalworth Tower has been pre-certified with the Green Certification of LEED Platinum.  Once obtained, Globaworth Tower will be the first building in Romania having received the highest available Green accreditation.

The development of the Gara Herastrau project is progressing well, with the structural frame now in place and the façade 100% complete (Q1-16). The property, which upon delivery is estimated to offer c.12,000sqm of GLA, lies adjacent to Green Court Building "A" and some 200 metres from Nusco Tower and Globalworth Tower. As of Q1-16, the Gara Herastrau development is c.50.6% pre-leased to ADP, the leading global provider of human capital management solutions. The development is expected to be completed in Q2-16.

Our Globalworth Campus project, which upon final completion will offer three Class "A" office towers and total GLA of 88,700sqm, is being developed in two phases. Phase "A" will comprise two side towers facing Dimitrie Pompeiu Street (main street) with a  total GLA of c.57,000sqm on completion, while Phase "B" will comprise one middle tower, which on completion will contribute additional GLA of c.31,800sqm.

Phase I is currently under development, with construction of Building "A" having reached the 12th floor (Q1-16) and the façade is currently being fitted out, while the necessary preparations, including excavations, site preparation etc. have been completed in Building "B". Delivery of the two towers is scheduled for Q3-16 and Q1-17 respectively.

We have adopted a number of environmentally friendly principles for the development of Gara Herastrau and Globalworth Campus and as such we will seek to achieve Green certifications similar to those of other assets in the existing portfolio for both investments.

The appraised value of the Development Projects stands at €217.8 million ("As Is" valuation 31 Dec. 15). On completion, the projects are expected to deliver c.197,400 sqm of new office and light industrial space, with an appraised value of €370.5 million ("Completion" valuation - 31 Dec. '15).

Development Projects	31 Dec. '14	31 Dec. '15
Number of Investments	4	4
Number of Assets to be Developed (1)	9	7
GLA (sqm) (2)	244,634	197,402
"As Is" Valuation(3)	€121.2m	€217.8 m
Estimated remaining development Capex(4)	€188.2m	€131.3m
"Completion" Valuation(2)	€411.2m	€370.5 m

(1) Number of Assets, represent the total number of buildings to be developed upon delivery of all phases of the developments.

(2) GLA assuming all phases of development projects are being constructed.

(3) Appraised valuations as of 31 Dec. '15.

(4) Remaining Capex as of 31 Dec. '15.

Development Projects - 31 Dec. '15	Under Construction(1)	Future Development(2)	Total        Development
Number of Investments	3	2	5
Number of Assets to be Developed	4	3	7
GLA (sqm)(1)	123,645	73,757	197,402
"As Is" Valuation	€198.5 m	€19.3 m	€217.8 m
Estimated remaining development Capex	€81.1 m	€50.2 m	€131.3 m
"Completion" Valuation	€292.0 m	€78.5 m	€370.5 m
Occupancy	42.8%	-	26.8%
Contracted Rent	€10.1 m	-	€10.1 m
WALL	10.5 yrs	-	10.5 yrs

(1)      "Under Construction"; data as of 31 Dec. '15 comprises Globalworth Tower (completed in Q1-16), Globalworth Campus Phase I, Gara Herastrau.

(2)      "Future Development"; data as of 31 Dec. '15 comprises Globalworth Campus Phase II and TAP extensions for Valeo and Continental in TAP.

Land for Future Development

Globalworth owns land plots in two prime locations in Bucharest (Herastrau lake and the historical CBD) for future development. These plots represent further opportunities for office or mixed-use developments, which we intend to take advantage of in the future in order to further grow our real estate portfolio.

The total land size for future development in these two locations is c.9,767 sqm and had an appraised value of €18.2m at 31 December 2015.

Globalworth's value upon "Completion" - 31 Dec 2015

The appraised value upon Completion of Globalworth's real estate portfolio is expected to increase to €1,083.8 million, following the investment of the remaining estimated c.€131.3 million of Capex for the completion of our four development projects.

Property	Status	"As Is" Value   (€ m)	Capex                (€ m)	Mark to Market Uplift (€ m)	Value upon "Completion" (€ m)
BOB	Completed	51.6	-	-	51.6
BOC	Completed	144.0	-	-	144.0
TCI	Completed	76.5	-	-	76.5
City Offices	Completed	62.1	-	-	62.1
Upground Towers	Completed	107.3	-	-	107.3
UniCredit HQ	Completed	52.6	-	-	52.6
Nusco Tower	Completed	57.7	-	-	57.7
Green Court "A"	Completed	50.1	-	-	50.1
Green Court "B"	Completed	50.2	-	-	50.2
TAP	Comp./Dev.	44.7	10.2	4.3	59.2
Globalworth Tower	Development	139.5	15.0	0.6	155.1
Globalworth Campus	Development	57.6	98.8	16.5	172.9
Gara Herastrau	Development	19.0	7.3	-	26.3
Luterana	Land	12.4	-	-	12.4
Herastrau 1	Land	5.8	-	-	5.8
Total		931.1	131.3	21.4	1,083.8

Leasing Update

Since the beginning of 2014, Globalworth has successfully negotiated the take-up or extension of a total of c.168,800 sqm of commercial gross leasable area within our buildings, making it as one of the most successful investors and developers in the Romanian real estate market.

In 2015, we signed 18 leases for a total of c.28,250sqm of commercial space within our properties, which in addition to the acquisition / delivery of new properties either with high occupancy rates or fully let, resulted in a total average occupancy rate for our standing commercial portfolio of 85.1% (as of 31 Dec. '15). 2016 has started strongly, with lease contracts for c.31,500 sqm of office and logistics space signed since the beginning of the year.

The average duration for the majority of the commercial leases signed between 2015 and March 2016 was 8.1 years. In line with our strategy, these new leases were signed typically with multinational corporate groups and financial institutions on long-term, euro denominated, inflation linked, triple net leases.  

In our overall commercial portfolio we have achieved a diversified tenant mix comprising some 85 different national and multinational corporates from 17 different countries, including some of the most recognisable corporates in their respective industries.

The WALL remaining on the commercial lease space in our portfolio was 6.9 years at 31 December 2015.

Commercial Contracted Rent Expiration Profile (% of total) - 31 Dec. '15
Year	2016	2017	2018	2019	2020	≥2021
	10%	1%	1%	3%	20%	65%

Total Commercial Properties (31 Dec. '15)	Standing	Under Construction
Occupancy	85.1%	42.8%
GLA (sqm)	303,155	123,645
Contracted Rent	€36.3 m	€ 10.1 m
WALL	6.0 yrs	10.5 yrs

Note: Table excludes c.52,358 sqm of residential space in Upground Towers which have c.€1.5m of contracted rent.

Q1-2016 Pro-forma Portfolio Update

The flagship Globalworth Tower development was completed in February 2016. In addition we have signed new leases for a total of 31,500 sqm of office and logistics space, with the main ones being Valeo (TAP) for c.13,500sqm, ADP (Gara Herastrau) for c.6,100sqm, Deutsche Bank (BOB) for c.2,400sqm, Vodafone (Globalworth Tower) for c.2,000sqm and Ericsson (Green Court "B") for c.1,900sqm..

Standing Properties - April. '16	Commercial Properties	Total Standing Properties
Number of Assets	12	13
GLA (sqm)	357,842	410,199
"As Is" Valuation(1)	€735.1m	€834.6m
"Completion" Valuation(1)	€750.7m	€850.2m
Occupancy(2)	82.2%	82.2%
Contracted Rent(2)	43.7 m	45.2 m
WALL(2)	6.5yrs	6.5yrs
(1) Appraised valuations as of 31 Dec. '15. Globalworth Tower is included on "As Is" and "Completion" valuations based on its carrying respective appraisals as of 31 Dec. '15. (2) Metrics as of April 2016. Occupancy and WALL only for Commercial Properties.

Portfolio Breakdown by Classification	"As Is"	"Completion"
Total "As Is" Valuation	931.1 m	1,083.8 m
of which: Standing Properties	89.6%	98.3%
of which: Developments	8.4%	-
of which: Land for future development	2.0%	1.7%
Note: Development projects assumed to be completed.

Tenant Origin:	% of Contracted Rent	Selected Tenants of Commercial Portfolio
Multinational	88.7%	Abbott Laboratories, Adecco, ADP, Bayer, BCR, Billa, BRD, Carrefour, Cegeka, Clearanswer, Colgate-Palmolive, Continental, Credit Agricole Bank, Delhaize Group, Deutsche Bank, Deutsche Telekom, EADS, Elster Rometrics, Ericsson, EY, G4S, GfK, Honeywell, HP, Huawei, Intel, Mood Media, NBG Group, Nestle, Oracle, Orange, Piraeus Bank, Sanofi, Schneider Electric, Securitas, Skanska, Snamprogetti, Starbucks, Stefanini, Subway, UniCredit, Valeo, Vodafone, Volksbank, Way Media, Worldclass
National	6.1%	CITR, GlobalVision, Generalcom, Centrofarm, NNDKP, NX Data, RINF, Creative Media
State Owned Entities	5.2%	Hidroelectrica, Ministry of European Funds

Portfolio Review - Consolidated

Investment:	Property Status	Acquisition & Development Cost			Contracted NOI - €m
		Investment Cost to Dec-15 (€ m)1	Remaining     Cost (€ m)	Total Acq./Dev.  Cost (€ m)	Dec-15	Apr-16	Q1'17(E)2	Q1'18(E)2	NOI Yield3
BOB	Completed	42.0	-	42.0	3.5	3.5	3.7	3.8	9.1%
BOC	Completed	110.0	-	110.0	9.8	9.6	10.2	10.4	9.4%
TCI	Completed	58.0	-	58.0	5.0	5.0	5.2	5.3	9.1%
City Offices	Completed	51.0	-	51.0	1.4	1.4	4.0	6.3	12.3%
Upground Towers	Completed	58.0	-	58.0	2.2	2.3	2.7	3.0	5.2%
UniCredit HQ	Completed	42.6	-	42.6	3.8	3.8	3.9	4.0	9.4%
Nusco Tower	Completed	44.9	-	44.9	2.1	2.1	4.5	4.7	10.2%
Green Court "A"	Completed	41.3	-	41.3	3.5	3.5	3.6	3.7	9.0%
Green Court "B"	Completed	44.5	-	44.5	2.9	3.5	3.6	3.7	8.3%
TAP4	Comp./Dev	37.0	10.2	47.2	3.5	4.1	4.1	4.9	10.4%
Globalworth Tower	Development	79.8	15.0	94.8	5.9	7.0	10.2	11.5	12.1%
Globalworth Campus	Development	26.2	98.8	125.0	4.2	4.2	5.2	15.0	12.0%
Gara Herastrau	Development	8.3	7.3	15.7	-	1.0	2.2	2.2	14.0%
Total Real Estate		643.6	131.3	775.5	47.8	51.0	62.7	78.5	10.1%
Land 5	Land	13.3	-	13.3	-	-	-	-	0.0%
Asset Manager	Operations	15.0	-	15.0	1.5	1.5	1.5	1.5	10.0%
Total Owned		671.9	131.3	803.8	49.3	52.5	64.2	80.0	10.0%

¹ Investment Cost to Dec-15, represents the total acquisition cost and subsequent development capex spent by GWI on each asset

² Expected contracted NOI for 2017 / 2018, is based on the Company's business plan

³ NOI yield based on Total Acquisition and Development Cost and Q1-18 estimated contracted NOI per property

⁴ Remaining development for TAP includes all construction costs for Valeo and Continental.

⁵ Land bank includes Herastrau 1 (EUR 6.0 million cost) and Luterana (EUR 7.3 million cost).

Portfolio Review

BOB:
Location:	Bucharest / New CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2008
Appraised Value "As Is":	€51.6m
GLA:	22,391
Occupancy:	93.4%
Contracted Rent:	€3.5m
WALL:	4.9 yrs
Selected Tenants:	Deutsche Bank, Stefanini, Snamprogetti, NX Data, NBG Group, Clearanswer Europe

Note: All data as of 31 Dec. '15

BOC:
Location:	Bucharest / New CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2009
Appraised Value "As Is":	€144.0m
GLA:	56,962
Occupancy:	99.5%
Contracted Rent:	€9.8m
WALL:	6.2 yrs
Selected Tenants:	Honeywell, NBG Group, HP, GfK, Intel, Nestle, EADs, Deutsche Telekom, Vodafone,  Stefanini, ADP

Note: All data as of 31 Dec. '15

Green Court Building "A":
Location:	Bucharest / New CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2014
Appraised Value "As Is":	€50.1m
GLA:	19,589
Occupancy:	100.0%
Contracted Rent:	€3.5m
WALL:	6.3 yrs
Selected Tenants:	Orange, Schneider Electric, CITR, Skanska

Note: All data as of 31 Dec. '15

Green Court Building "B":
Location:	Bucharest / New CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2015
Appraised Value "As Is":	€50.2m
GLA:	18,369
Occupancy:	82.1% (100% as of 11 Apr.  '16)
Contracted Rent:	€2.9m (€3.5m as of 11 Apr. '16)
WALL:	4.8 yrs
Selected Tenants:	Carrefour, Sanofi, Ericsson, Colgate, Rinf, Adecco, Abbott

Note: All data as of 31 Dec. '15

Nusco Tower:
Location:	Bucharest / New CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2010
Appraised Value "As Is":	€57.7m
GLA:	24,020
Occupancy:	59.0%
Contracted Rent:	€2.1m
WALL:	1.6 yrs
Selected Tenants:	Oracle, Bayer, Anima, Vodafone

Note: All data as of 31 Dec. '15

UniCredit HQ:
Location:	Bucharest / North
Status:	Standing Property
Description:	Class "A" single-tenanted office building
Ownership:	100.0%
Year of Completion:	2012
Appraised Value "As Is":	€52.6m
GLA:	15,500
Occupancy:	100.0%
Contracted Rent:	€3.8m
WALL:	6.4 yrs
Selected Tenants:	UniCredit Tiriac Bank

Note: All data as of 31 Dec. '15

TCI:
Location:	Bucharest / Historical CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2012
Appraised Value "As Is":	€76.5m
GLA:	22,453
Occupancy:	99.7%
Contracted Rent:	€5.0m
WALL:	3.7 yrs
Selected Tenants:	Ministry of European Funds, Ernst & Young, Hidroelectrica Huawei, Cegeka, Deutsche Bank

Note: All data as of 31 Dec. '15

City Offices:
Location:	Bucharest / South
Status:	Standing Property
Description:	Mix Use Property comprising of an Commercial building and multi-level parking
Ownership:	100.0%
Year of Completion:	2014
Appraised Value "As Is":	€62.1m
GLA:	35,968
Occupancy:	21.6%
Contracted Rent:	€1.4m
WALL:	5.1 yrs
Selected Tenants:	Delhaize Group, Max Bet, Billa, BCR, Piraeus Bank, Vodafone, Credit Agricole Bank, Germanos

Note: All data as of 31 Dec. '15

Upground Towers:
Location:	Bucharest / New CBS
Status:	Standing Property
Description:	Residential complex comprising of two towers
Ownership:	100%
Year of Completion:	2010
Appraised Value "As Is":	€107.3m
GLA:	58,913
Occupancy:	Commercial: 100.0% / Residential: 44.3%
Contracted Rent:	€2.3m
WALL:	8.2 / 1.5 yrs
Selected Tenants:	WorldClass, Delhaize Group, Marfin Bank, Subway, Starbucks, Sensiblue

Note: All data as of 31 Dec. '15

TAP:
Location:	Timisoara
Status:	Standing / Under Development Property
Description:	Light-industrial complex
Ownership:	100%
Year of Completion:	2011 - 2017
Appraised Value "As Is":	€44.7m
Appraised Value "Completion":	€59.2m
GLA:	123,380sqm (81,349sqm in Dec 2015)
Occupancy:	97.3%
Contracted Rent:	€5.0 (€3.5 in Dec 2015)
WALL:	12.1 yrs
Selected Tenants:	Continental, Valeo, Elster

Note: All data as of 31 Dec. '15.

Globalworth Tower:
Location:	Bucharest / New CBD
Status:	Development / Under Construction (Delivered in Q1-2016)
Description:	Class "A" multi-tenanted office building
Ownership:	100%
Year of Completion:	2016
Appraised Value "As Is":	€139.5m
Appraised Value "Completion":	€155.1m
GLA1:	54,686
Occupancy:	51.0%  (59.6% as of 11 Apr. 16)
Contracted Rent:	€5.9m (€6.8m as of 11 Apr. 16)
WALL:	10.9 yrs (€10.7yrs as of 11 Apr. 16)
Selected Tenants:	Vodafone, Huawei, Delhaize Group, NNDKP, Globalworth

Note: All data as of 31 Dec. '15

Gara Herastrau:
Location:	Bucharest / New CBD
Status:	Development / Under Construction
Description:	Class "A" office building
Ownership:	100.0%
Year of Completion:	2016E
Appraised Value "As Is":	€19.0m
Appraised Value "Completion":	€26.3m
GLA:	12,037sqm
Occupancy:	- (50.6% as of 11 Apr. 16)
Contracted Rent:	- (€1.0m as of 11 Apr. 16)
WALL:	- (€7.0yrs as of 11 Apr. 16)
Selected Tenants:	-           (ADP)

Note: All data as of 31 Dec. '15

Globalworth Campus:
Location:	Bucharest / New CBD
Status:	Development / Under Construction
Description:	Class "A" multi-tenanted office complex
Ownership:	100.0%
Year of Completion:	2016E / 2017E
Appraised Value "As Is":	€57.6m
Appraised Value "Completion":	€172.9m
GLA:	88,648 (Phase "A": 56,922sqm)
Occupancy:	28.2% (Phase "A" c.50%)
Contracted Rent:	€4.2m
WALL:	10.0 yrs
Selected Tenants:	Deutsche Telekom

Note: All data as of 31 Dec. '15

Investment Pipeline

Globalworth has an active pipeline of exciting investment opportunities in Romania currently under review and we expect these, if acquired, to further enhance the growth prospects of the Company.

Equity & Debt Financing Update

In order to fund its acquisitions and ongoing development program, Globalworth successfully accessed the debt and equity capital markets in 2015, raising a total of €268.3 million of additional funds. This marks a strong vote of confidence in the quality of the Company's portfolio and its future prospects from both local and international equity and debt investors. 

In March '15, we put in place a c.€55.0 million corporate  facility, which in June '15 was subsequently increased by c.€45.0 million. During the course of 2015 we also negotiated the roll-over or raised new debt of c.€114.5 million in total, mainly from BCR (Erste Group) and UniCredit. In September '15, Globalworth announced its intention to raise a minimum of €35.0 million of equity capital from the public markets. The offering was oversubscribed by existing and new shareholders by €18.8 million, resulting in the Company successfully raising a total of c.€53.8 million of new equity capital (October 2015).

In March '16, we successfully refinanced our TAP light industrial park in Timisoara, with a new €25.0 million facility from BCR.

Despite the additional indebtedness incurred during the year, the Company has managed to maintain the overall LTV at the moderate level of 44.3% (based on 31 Dec '15 valuation adjusted for the refinancing of the existing debt of the TAP property in March 2016) (30 June 2015 LTV: 44.9%).

Net Asset Value
The unaudited Net Asset Value (NAV) and EPRA Net Asset Value (EPRA NAV) as at December 31st 2015 is presented below in accordance with the stated intention of the Company to publish its estimated NAV on a quarterly basis.
DESCRIPTION			31-Dec-15		30-Jun-15		31-Dec-14
(Figures in € million unless otherwise stated)			(unaudited)		(unaudited)		(audited)
NAV attributable to ordinary equity holders of the parent, used to calculate NAV per share			499.7		427.3		392.7
Exclude:
Deferred tax liability			70.4		62.0		47.1
Goodwill as a result of deferred tax			(5.7)		(5.7)		(5.7)
Fair value of interest rate swap instrument			3.9		3.9		-
EPRA NAV attributable to ordinary equity holders of the parent			568.3		487.5		434.1
Number of ordinary shares used to calculate NAV per share and EPRA NAV per share			62.6		53.6		53.6
NAV per share (€)			7.98		7.97		7.32
EPRA NAV per share (€)			9.08		9.09		8.09

GLOSSARY

Assets: "Standing Properties"	Comprises 12 owned properties, BOB, BOC, TCI, City Offices, UniCredit HQ, Nusco Tower, Green Court Building "A", Green Court Building "B", Upground Towers and TAP (c.81,349 sqm).
Assets: "Developments"	Comprises Globalworth Tower, Globalworth Campus, Gara Herastrau and TAP (excluding the completed sqm already included in Standing Properties).
Assets: "Land"	Comprises land plots for future development located in Luterana and Herastrau 1.
"Capex"	Represents the estimated Capital Expenditure to be incurred for the completion of the Development Projects.
"Commercial Properties"	Comprises the office, light industrial and retail property areas of the portfolio.
"Contracted Rent"	Represents the gross contracted headline property rent (including pre-lettings), on an annualized basis, as of the specified date. Additionally, it includes variable, tenant turnover based rent based on historical performance.
"EPRA"	The European Public Real Estate Association is a non-profit association representing Europe's publicly listed property companies.
"NOI"	Net operating income (being the gross operating income less operating expenses that are not paid by or rechargeable to tenants, excluding funding costs, depreciation and capital expenditure).
Valuation "As Is"	Represents the appraised value for standing and operational properties, properties under development and land, performed by Coldwell Banker as at 31 Dec. '15.
Valuation "Completion"	Represents the appraised value for standing and operational properties, properties under development (including the expansions for TAP, Globalworth Tower and Globalworth Campus) and land, performed by Coldwell Banker as at 31 Dec. '15, assuming that the properties under development were completed as of the date of valuation. The estimated appraised values on completion are subject to risks and uncertainties that could cause actual outcomes to differ materially from those expressed or implied by the relevant statements; they are not guarantees of future performance and there can be no assurance that these estimated values on completion can or will be achieved.
"WALL"	Represents the remaining weighted average lease length of the contracted leases as of 31 Dec. '15, until the lease contracts full expiration.

---

[1] Based on appraised valuation for standing and operational properties, properties under development and land, performed by Coldwell Banker as of Dec 31^st 2015.

[2] Appraised value on "Completion" performed by Coldwell Banker, assuming that properties under development projects were completed as at Dec 31^st 2015.

[3] Globalworth Tower previously known as Bucharest One.

[4] Assets comprise of 13 Standing Properties, 4 Developments and 2 Lands for future development

 

END

 

 

TSTFELFFQZFEBBF