WOOD Flash – GTC: 2Q20 – write-offs in the spotlight, but FFO remains strong and retail turnovers encouraging
GTC published its 2Q20 results this morning (19 August). The company booked a EUR 62m revaluation loss during the quarter, writing off around 3% of the value of the portfolio, in line with the level we have been pencilling in, driven mainly by the retail assets (where GTC wrote off EUR 59m, or 7% of their value). At EUR 30m, the net rental income has exceeded our expectations by around EUR 3m. The FFO reached EUR 20m during the quarter, well above our estimate of EUR 14m, driven mainly by the better rental income, but also helped by better cost control and slightly lower interest costs than we have been pencilling in. On the current exchange rate, on an annualised basis, this would translate into PLN 0.72/share, or a 12% yield.Globe Trade Centre is the parent company of the capital group, Globe Trade Centre (the Group). The Group is engaged in the development and rental of office and retail space and the development and sale of residential units. The Group is a real estate company in Central and Eastern Europe and South-eastern Europe, operating in Poland, Romania, Hungary, Croatia, Serbia, Bulgaria, and Slovakia. Additionally, it co-owns land in Ukraine and Russia and operates in the Czech Republic. The Group's portfolio comprises: completed office buildings and office parks as well as retail and entertainment centres; residential projects; and undeveloped plots of land and suspended projects.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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