Globalworth is a real estate investment company, incorporated in Guernsey and listed on AIM. The leading office investor in the CEE region, with a portfolio of more than €2.5bn in Romania and Poland, it targets a sustainable and growing dividend with capital growth.
GWI’s dynamic growth is contining in 2019. The proceeds from its recently completed c €500m issue of 55m new shares at €9.10 per share, a slight premium to the end-FY18 EPRA NAV per share of €9.04, provides funding for continued portfolio investment and the acquisition of the outstanding minority in its Polish subsidiary. A de-listing of the Polish subsidiary is underway, simplifying the group structure and creating the opportunity for cost efficiencies. Further property acquisitions with a value of c €283m and a blended yield of 7.8% have been reported. Growthpoint has reinforced its position as GWI’s largest shareholder (29.8%) and Aroundtown, one of Europe’s largest listed real estate companies, is a new core shareholder with 18.1%. Our multi-year financial forecasts to FY22e look for strong further growth, driven by acquisitions, developments and rental growth, with a compound annual average NAV total return of 10.9% per year to FY22. Not in our forecasts, there is scope for Romanian yields to tighten, which would further benefit NAV.
The Romanian and Polish economies continue to perform well, which should support occupier and investment demand for commercial property assets.