As the office market leader in Poland and Romania, the two largest markets in CEE, we adopted a very cooperative approach with our tenants, understanding their needs and offering flexible and smart solutions, particularly in this period of higher uncertainty due to the Covid-19 pandemic. In 2020 we successfully taken-up or extended / renegotiated c.303.5k sqm of commercial spaces in our portfolio of high-quality properties, representing c.25% of our total standing commercial GLA. This is the highest volume of leasing activity which we have ever achieved, mostly attributed to the successful negotiations with our existing tenants who appreciated our collaborative and flexible approach. The very strong tenant relationships were also confirmed in our standing commercial occupancy, which 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.
“Despite the significant disruption in the economic and social activity during most of 2020, I am pleased to report that our core strengths and competitive advantages have resulted in a very resilient operating performance and financial results. At the same time, we kept close to and supported our clients and the broader community within which we live and operate, reinforcing our position as THE landlord of choice in our home markets. Whilst 2021 will continue to present a number of challenges, I firmly believe that the worst is behind us and I am confident and excited about the opportunities that lie ahead of us”, said Dimitris Raptis, CEO of Globalworth Group.
Operational Highlights
Total combined portfolio value remained effectively unchanged at €3.0 billion. €2.3 billion in environmentally certified properties. 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. 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. CPI Property Group became the largest shareholder in Globalworth in February 2020.
Financial Highlights
Net Operating Income increased by 6.5% to €157.3 million, despite the negative effect (-2.3%) of the Covid-19 pandemic. EPRA earnings of €82.3 million for FY2020, representing an annual increase of 1.7%, while EPRA earnings per share decreased by 16% to 37 cents Dividends declared and paid for FY2020 of 34 cents per share, representing an amount of at least 90% of the EPRA Earnings for the first and second six months of the year, as stipulated by our articles of incorporation. 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 and at the same time 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. Liquidity position remained high with €527.8 million of cash available as of 31 December 2020 and an additional undrawn €215 million Revolving Credit Facility available to the Group. Loan to Value of 37.8% at 31 December 2020, consistent with the Group's strategy to manage its long-term LTV target at below 40% while still pursuing strong growth. EPRA Net Asset Value per share decreased by 6.7% to €8.68 per share at 31 December 2020 (31 December 2019: €9.30), mainly due to the impact of negative revaluations due to the increased uncertainty in the market caused by the Covid-19 pandemic.
