In This Article:
-
Revenue from Rental Activity: EUR139 million, a 3% increase.
-
Gross Margin: EUR97 million, a 2% increase.
-
FFO (Funds From Operations): EUR55 million, up from EUR52 million.
-
FFO per Share: EUR0.10 per share.
-
EPRA Net Asset Value: EUR1.248 billion.
-
Net Loan-to-Value: 48.8%, down from 49.3%.
-
Occupancy Rate: Maintained at 87%.
-
Cash Position: EUR49 million, plus EUR21 million in escrow.
-
Profit from Operations: EUR76 million.
-
EBITDA: EUR84 million, an 8% increase year-on-year.
-
Cash Flow from Operating Activities: EUR76 million, a 7% increase year-on-year.
-
Total Debt: EUR1.3 billion, with 92% hedged or at fixed rate.
-
Weighted Average Interest Rate: 2.89%.
-
Total Assets: EUR2.723 billion at the end of Q3.
Release Date: November 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Revenues from rental activity increased by 3% to EUR139 million, and gross margin rose by 2% to EUR97 million, driven by the completion of new assets.
-
FFO rose to EUR55 million for the first nine months of 2024, up from EUR52 million in the same period last year.
-
The EPRA net asset value increased slightly to EUR1.248 billion, reflecting positive portfolio valuations.
-
The company maintained a stable occupancy rate of 87%, with improvements noted in the Polish office market.
-
GTC successfully executed its disposal strategy, with significant asset sales in Zagreb and Belgrade expected to close by year-end, generating substantial net proceeds.
Negative Points
-
Cash reserves decreased to EUR49 million, with additional cash tied up in escrow accounts.
-
Revaluation loss of EUR6 million was reported, primarily due to decreased value in the Polish office portfolio.
-
Financial costs increased by EUR2 million due to additional debt and higher interest rates, reaching 2.89% in 2024.
-
Investment activity cash flow was negative EUR56 million in Q3, reflecting significant investments in ongoing projects.
-
The company's total debt stands at EUR1.3 billion, with a slight increase in net debt due to decreased cash levels.
Q & A Highlights
Q: Do you have any additional asset sales in the pipeline planned? What is the minimum amount of cash required for operations? A: We have a disposal pipeline, including the Irish project and discussions in Poland. We expect EUR50 million to EUR100 million in net proceeds from disposals in Q1 next year. The minimum cash required for operations is EUR10 million to EUR20 million below current levels. - Balazs Gosztonyi, CFO
Q: Is it fair to say that Polish asset sales will come first, and the sale of the Irish project is a medium-term target? A: Polish transactions are simpler and likely to come first. The Irish project, Kildare, is on a separate sales strategy, with ongoing negotiations and potential exit in the next 6 to 12 months. - Balazs Gosztonyi, CFO and Gyula Nagy, CEO