WOOD Flash – GTC: 3Q21 – strong results boosted by acquisitions, seems on track to reach our EUR 69m 2021E FFO
GTC has posted a strong set of results, with the FFO well above the run-rate of the two previous quarters. With the closing of the sale of the EUR 268m Belgrade portfolio still pending, the buildings continued to contribute to the recurring income throughout the quarter. Combined with the EUR 310m invested into five office buildings and one mixed use project in Hungary, the LTV increased to 53% as of the end of September. GTC has been indicating that it plans to raise equity, to increase the free float and liquidity, secure funds for further acquisitions, boost the balance sheet and maintain the investment grade rating. If successful, we believe the improved liquidity of the shares could drive a re-rating of the stock. At nearly a 40% discount to the NAV and over a 9% FFO yield, GTC screens as one of the cheapest real estate names in Europe, especially considering that offices account for around two-thirds of its portfolio.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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