Globalworth Real Estate

LN: GWI

€1797.8m market cap

€9.27 last close

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.

Investment summary

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.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 51.1 N/A 26.2 17.9 51.8 84.9
2018A 133.4 N/A 115.3 46.0 20.2 15.3
2019E 154.3 N/A 205.4 50.1 18.5 16.1
2020E 185.8 N/A 263.0 59.6 15.6 13.3
Last updated on 25/07/2019
Industry outlook

The Romanian and Polish economies continue to perform well, which should support occupier and investment demand for commercial property assets.

Last updated on 25/07/2019
Share price graph
Balance sheet
Forecast net debt (€m) 1183.4
Forecast gearing ratio (%) 91
Price performance
%
1m
3m
12m
Actual 3.1 1.6 0.3
Relative* 1.9 1.1 3.1
52-week high/low €9.3/€7.9
*% relative to local index
Key management
Geoff Miller Chairman
loannis Papalekas CEO
Dimitris Raptis Deputy CEO and CIO