Globe Trade Centre S A : Strong performance proves value creation for shareholders

Q1 2017 HIGHLIGHTS

• Development profit of €24m driven by projects under construction and assets for sale
• Profit after tax at €32m (€16m in Q1 2016)
• Earnings per share up by 96% to €0.07 (€0.04 in Q1 2016)
• EPRA NAV increased to €933m (€897m as of 31 December 2016)
• EPRA NAV / share increased 4% to €2.03 as of 31 March 2017 from €1.95 as of 31 December 2016
• Gross margin from rental activity increased by 6% to €22m in Q1 2017 (€21m in Q1 2016)
• 18% FFO I improvement to €12m (€10m in Q1 2016)
• FFO I / share at €0.026 (€0.022 in Q1 2016)

PORTFOLIO UPDATE

• Completion of FortyOne phase III (Belgrade) with 10,700 sq. m and GAV of €23m
• GAV of income generating portfolio at €1,290m (2% increase)
• 154,000 sq. m GLA under construction in 5 projects with over 72,000 sq. m to be completed in 2017
• 156,000 sq. m GLA in planning stage
• 34,000 sq. m of office and retail space newly leased and renewed
• Occupancy at 93% (94% as at 31 December 2016) impacted by completion of FortyOne III and preparation of space for extension by some tenants
• Strong pipeline of accretive acquisition opportunities of approx. €200m of income generating assets and development land in various stages of negotiations

'GTC delivered strong per share performance which already proves solid value creation for our shareholders. Our high quality assets with sustainable high occupancy rates generate recurring income, which combined with our development pipeline and accretive acquisition opportunities provide a solid total return. Our development pipeline includes over 154,000 sq. m GLA under construction in such great projects as Galeria Północna, White House or Ada Mall as well as over 156,000 sq. m GLA at the planning stage, which will further unlock significant embedded value'- said Thomas Kurzmann, GTC's CEO.

'The results of the first quarter reflect the momentum of the current development and investment activity. It reconfirms our Total Return proposition as well as our target to generate a double-digit dividend and NAV growth in years to come'- commented Erez Boniel, GTC's CFO.

'With the disposal of Galleria Burgas and Galleria Stara Zagora, we fully focus our portfolio on Poland and the capital cities in CEE and SEE region. We plan to reinvest the proceeds from this disposal into the growing Sofia's office market' - commented Thomas Kurzmann.

2017_Q1_Financial Results_Press release