WOOD Flash – GTC: 3Q20 – slightly ahead of our estimates, NAV stable, successful office sale in Budapest
GTC reported its 3Q20 results yesterday (24 November). The numbers came in slightly ahead of both our and the consensus estimates, on what was driven mainly by a slightly better recovery in the rental income than we expected. The company reached FFO of EUR 54m for 9M20, some 78% of our full-year forecast. With the lockdowns reinstated across much of CEE, we believe that we may, again, see a pullback in the rental income from retail during 4Q20E; therefore, at this stage, we do not see the results as a reason to revise our forecast upwards substantially. That said, we note that, thanks to the income from developments, GTC’s FFO was up by 5% yoy for 9M20 – an excellent result, in our view, considering the challenging external conditions and GTC’s exposure to retail. We note that the company sold an office building in Budapest in October, for EUR 63m, a price reportedly exceeding the former book value by around EUR 10m.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.
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