H1 2018 Financial Results
H1 2018: 135% increase in NOI and portfolio value rises to €2.1 billion
Our H1 2018 financial results are ready and we are glad to say that it’s been a good six months for Globalworth. We have achieved an increase of our combined portfolio to 920k sqm of GLA and to a value of €2.1 billion, out of which €1.2 billion is represented by the assets in Romania and almost €1 billion in Poland. Our net operating income reached €51.7 million, representing a growth of 135% compared to the results from H1 2017, due to the entry into the Polish market and ongoing expansion in Romania.
“Globalworth has continued to demonstrate strong momentum in 2018, led by its strategic expansion into Poland. In the first part of the year we became the largest office investor in the Polish market, closing two of the five biggest office transactions in the country so far in 2018. We continue to assess further pipeline opportunities under attractive market conditions in line with our ambition to consolidate Globalworth’s position as the leading institutional office landlord in the CEE through its portfolios in Romania and Poland. We seek to be the partner of choice for the wide variety of high-quality tenants which are either present or seeking to expand in the region”, said Dimitris Raptis, Deputy Chief Executive Officer and Chief Investment Officer at Globalworth.
During this first semester we have invested €276.2 million in new acquisitions and in our development strategy. We acquired three land plots for future office developments in Bucharest, Romania, and three more office buildings in the key Polish cities of Krakow (Quattro Business Park), Warsaw (Warta Tower) and Wroclaw (West Link). Also, in July, we purchased one more building in Warsaw, namely Spektrum Tower.
We completed Tower 2 from Globalworth Campus in Bucharest and we commenced the construction of Tower 3, with a total space pf 34.8k sqm. At the same time, Renault Bucharest Connected joint venture, of 42.3k sqm, is also progressing well.
With the negotiated take-up or extension of 60.5k sqm of commercial space in Romania and Poland, we now have 879.3k sqm being let or pre-let (as of 30th of June 2018) to some 510 tenants, of which over 77% is to multinational companies. The occupancy rate of our commercial standing portfolio reached 95%.
In H1 2018 we also had our second admission to trading of corporate bonds on the Bucharest and Irish Stock Exchanges, with a total value of EUR 550 million.
With all these results, it’s safe to say that the first semester of 2018 has been a great one and we are looking forward to the following months!