Globe Trade Centre S.A. (“GTC”) released its Q1 2015 financial results today. The results have been prepared in accordance with the International Financial Reporting Standards (IFRS) and are presented in euro.

Q1 2015 Financial Highlights

  • Net profit up to €8m (net loss of €2m in Q1 2014)
  • Underlying profit before tax up to €9m (€6m in Q1 2014) due to improvement in operations combined with cost savings
  • Rental and service revenues maintained at €27m (€27m in Q1 2014)
  • Rental margin improved to 74% (72% in Q1 2014)
  • Interest cover at 2.7x (3.1x in Q1 2014)
  • Loan to value (LTV) at 53% at 31 March 2015 (54% as of 31 December 2014)
  • Cash flow from operations increased to €13m (€11m in Q1 2014)

Thomas Kurzmann, GTC Chief Executive Officer, comments: “GTC steadily continues to improve all key operational metrics, fuelled by stable rental and service revenues, in parallel the sale of non-core assets is on track. After disapproval of the shares issue plan GTC will consider alternative sources of funding to continue the growth and renewal of its portfolio in its core markets.”

Financial overview

Rental and service revenues was kept unchanged at €27m in Q1 2015. Margin on rental activities was improved to 74% in Q1 2015 from 72% in Q1 2014.

Gross profit from operations was kept unchanged at €20m in Q1 2015.

Administrative expenses, excluding provision for stock based program, decreased to €2.3m in Q1 2015 compared to €3m in Q1 2014.

Underlying profit before tax up to €9m in Q1 2015 compared to €6m in Q1 2014 due to cost savings.

Financial expenses net were at the level of €8m in Q1 2015 compared to €11m in Q1 2014 due to deleveraging activity.

Net profit of €8m in Q1 2015 is mainly due to a decline in cost items and lower financial expenses.

Value of the properties remained unchanged as of 31 March 2015 compared to 31 December 2014.

Total bank debt and financial liability down to €783m as of 31 March 2015 from €811m as of 31 December 2014. The weighted average debt maturity was 3.9 years and the average cost of debt was 4.2% p.a.

Loan to value ratio was at the level of 53% as at 31 March 2015 compared to 54% as at 31 December 2014.

Interest coverage was at 2.7x as at 31 March 2015 compared to 3.1x as at 31 March 2014.

NAV (before minority) per share stood at €1.4 as at 31 March 2015 compared to €1.4 as at 31 December 2014.

Cash flow from operations went up to €13m in Q1 2015 (€11m in Q1 2014) mostly due cost cuts.

Key achievements

Disposal of non-core assets and restructuring of related loans

During the first and second quarter of 2015, GTC sold two of its non-core assets: Galleria Buzau (Romania) and Felicity residential project (Romania), which was sold in the process of restructuring a loan related to the this project.

Sale of Kazimierz Office Centre

In April 2015, GTC signed a preliminary agreement to dispose Kazimierz Office Centre. Closing of the transaction is expected in May.

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