Financial results 2018
Financial results 2018: 161% increase in NOI and portfolio value reaches €2.5 billion
After a dynamic year, in which we managed to bolster our leading position in the CEE real estate market, it’s time to look back at all the amazing things that we've managed to do and congratulate the team, because the financial results for 2018 are here and we have so many reasons to celebrate!
In 2018, we have achieved an increase of 161% in net operating income (NOI) on the previous year. Following our expansion, in both Romania and Poland through acquisition and development completions, and another strong year in leasing activity, net operating income increased to €133.4 million. Our combined portfolio expanded to 1.0 million sqm of GLA and increased by 36% in value to €2.5 billion, split 51% in Romania and 49% in Poland.
“2018 was a tremendous year for Globalworth as we continued our strong growth trajectory both through compelling investments in income producing assets with asset management potential and through development projects, delivered a significant step-up in our financial results, and demonstrated strong operating results across our portfolio in Romania and Poland. We are proud to have established Globalworth as the leading institutional office landlord in the CEE region with a portfolio of prime office assets, supported by a strong team of experienced professionals. With further investments targeted and, in our view, a compelling market outlook, we are set to take further strides forward in 2019”, said Dimitris Raptis, Deputy Chief Executive Officer and Chief Investment Officer at Globalworth.
We are also proud of the acquisitions we completed, with a total value of €538 million spanning five standing investments in Poland and three land plots in Bucharest, Romania. Add to this the fact that we also negotiated the take-up or extension of 121.800 sqm of commercial space in Romania and Poland.
In terms of development, we have completed both Phase A of Globalworth Campus and Renault’s new HQ, both in Bucharest, adding 70.500 sqm of new high-quality space. Construction of the 34.800 sqm third and final Campus tower is well underway and is due for completion in Q4-19, being since year end 60% let or under offer.
We have also started two further projects - the 26.400 sqm Globalworth Square project and a 17.700 sqm unit at the Group’s TAP II logistics in Timisoara - and plans are in progress for a further 76.000 sqm of new office projects in Bucharest and up to c.150.000 sqm of light-industrial and logistics projects in Timisoara.
At the end of 2018, green-certified properties accounted for 71% of our portfolio, with the potential to rise to over 100% through properties currently under certification.
We raised a €550 million unsecured Eurobond issue in March 2018, which was more than twice oversubscribed, and our colleagues at Globalworth Poland completed a €450 million equity capital raise in June 2018.
After such an amazing year, we will continue to evaluate further high-quality investment opportunities. With these in mind, and with a view to managing a long-term LTV target of below 40%, we will be looking to raise additional equity capital of up to €500 million in the near term.