GTC presents a strong balance sheet at the end of 2019

2019 FINANCIAL HIGHLIGHTS

• In-place rent went up 12% to €145m
• Gross margin from rental activity up by 15% to €128m
• FFO I increased 14% to €70m, FFO per share at €0.14
• Operating profit: 13% increase in profit before tax and fair value adjustments to €73m
• Profit after tax of €75m, earnings per share of €0.15
• EPRA NAV up by 3% to €1,200m (after dividend in June 2019) as at 31 December 2019, EPRA NAV per share at €2.47 (PLN 10.52 at EUR/PLN 4.26)
• Solid financial metrics
  • LTV at 44% (45% as of 31 December 2018)
  • WAIR at historic low of 2.6% (2.7% as of 31 December 2018)
• Dividend subject to market dynamics and developing worldwide situation

2019 PORTFOLIO HIGHLIGHTS

• High occupancy kept high at 95%
  • 236,000 sq m of newly leased or released space (188,700 in 2018)
• Completion of high quality office and retail space:
  • Green Heart (N1 and N2), Belgrade
  • Matrix A, Zagreb
  • Advance Business Centre I, Sofia
  • Ada Mall, Belgrade
• Disposal of GTC White House and Neptun Office Center
• Commencement of construction and full lease up of Pillar, a 29,000 sq m Class A office building in Budapest
• 4 office buildings under construction to bring €12.2m rent upon completion and stabilization.

“Our strategy of focusing on development of state of the art, well designed and energy efficient buildings in CEE capitals has been proven successful and will be the solid ground of GTC’s future stability and profitability. The sale of two of our office buildings with significant value uplift, allowed for continuous growth while keeping Group LTV low. GTC’s business is greatly supported by the well managed capital structure of our balance sheet that through low cost of finance enhances the FFO increase of 14% to EUR 70m.” – commented Thomas Kurzmann, GTC’s CEO.

“We believe more value creation in office buildings and selected retail assets in CEE and SEE capitals is still ahead of us. However, the situation became recently very volatile and challenging. We observe the markets closely. Our strong balance sheet and well experienced management teams in all our countries of operation are prepared to take any steps necessary to cope successfully with the changing market conditions. – added GTC’s CEO.

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