Company Announcements

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

31 August 2022

Globalworth Real Estate Investments Limited

("Globalworth" or the "Company")

Notice of Interim Results & Preliminary Interim Financial Information

Globalworth announces that it intends to publish its Interim Report and Financial Statements for the six-month period ended 30 June 2022 during the week commencing 19 September 2022. Ahead of this publication, the Company is today providing a preliminary release of its unaudited Consolidated Statement of Comprehensive Income and unaudited Consolidated Statement of Financial Position to 30 June 2022.

Key Highlights for the period ended 30 June 2022

·    Total combined portfolio value increased by 1.7% to €3.2 billion, mainly due to new acquisitions and net positive impact from our developments (delivered, in progress or under refurbishment).

o  Like-for-like appraised value of standing commercial properties marginally increased to €2.8 billion (0.8% higher compared to 31 December 2021).

·    Developments focused on high-quality logistic / light-industrial facilities in Romania (56.0k sqm) and the refurbishment / repositioning of two mixed-use properties in Poland aiming at increasing their class "A" office space and improving their retail/commercial offering, in response to current market conditions.

·    Completed the development of four high-quality logistic facilities, adding 61.7k sqm of spaces to our portfolio.

·    Acquired our first small business units logistic facility in Bucharest Greater Area with an area of 7.1k sqm.

·    Overall standing portfolio footprint net increase of 64.2k sqm to 1.4m sqm of GLA in 71 standing properties.

·    Leasing transactions for 106.1k sqm of commercial space taken-up or extended at an average WALL of 5.0 years despite continued challenging market conditions.

·    Average standing occupancy of our combined commercial portfolio of 88.1% (88.4% including tenant options), marginally lower to year-end 2021 (88.5% or 88.7% including tenant options).

o  Average occupancy impacted by the addition of four newly completed industrial properties assets (2 in lease up phase) with average occupancy of 61.8%, offsetting the higher occupancy observed in the smaller business units logistics facility acquired with occupancy of 98.0%.

o  Like-for-like occupancy marginally increased by 0.9% despite the challenging market conditions and the WARTA Tower now effectively vacant.

·    Total annualised contracted rent increased by 2.5% to €188.4 million compared to year end 2021, of which:

o  92.3% is contracted in office and industrial properties

o  95.9% is in active leases, with the remainder 4.1% of contracted annualised rent to commence in the future.

·    Like-for-like annualised commercial contracted rents in our standing commercial portfolio increased by 2.1% to €178.1 million at the end of the first half of 2022, mainly as effect of rent indexation.

·    Challenging market conditions and war in the Ukraine impacting the economic and business environment negatively.

·    S&P and Fitch re-affirmed the investment grade rating following their 2021 year end review of Globalworth, with Moody's maintaining and stabilising their rating outlook of the Company in Q4 2021.

·    Repaid on its maturity date the outstanding principal amount of €323 million of the inaugural GWI 17/22 bond, resulting in the Company having no material debt maturing until March 2025.

·    Entered into a 6-year term loan agreement for €85 million with the International Finance Corporation ("IFC"), which is a member of the World Bank.

·    Net Operating Income was lower by 3.2% compared to H1-2021 at €69.9 million.

·    EPRA earnings increased by 18.2% to €34.3 million (H1-2021: €29.0 million), partially impacted by the better operating results due to lower administrative costs and lower income tax expenses (excluding deferred tax expense on investment property) compared to the same period in 2021.

·    Adjusted normalised EBITDA (including share of minority interests) decreased by 2.1% to €63.4 million (H1-2021: €64.8 million), due to a decline in NOI partially offset by lower administrative and other expenses.

·    Profit attributable to equity holders of the Company significantly improved to €32.6 million (H1-2021: €12.5 million) due to fair value gain on investment property, lower administrative expenses, increase in the share of profit of equity-accounted investments in joint ventures which were partially net off by higher operating expenses.

·    Interim cash dividend paid to shareholders of €0.13 per share in H1-2022.

·    Preliminary EPRA Net Reinstatement Value (NRV) of €1.9 billion, or €8.72 per share, a marginal increase (+0.6% per share) from €8.66 at 31 December 2021 mainly due to dividends paid and lower operating performance offsetting the positive impact from significantly lower non-recurring costs in H1-22, positive revaluation gains.

·    IFRS Earnings per share of 15 cents in H1-2022 (H1-2021: 6 cents).

·    Maintaining high levels of liquidity even after the GWI 17/22 bond repayment at €185 million plus €155 million in undrawn RCF facility, and an LTV at 41.0% at 30 June 2022 (vs 40.1% at 2021 year-end).

·    Sustainability:

o  €2.8bn in 57 green certified properties in our portfolio;

o  23 properties were certified or recertified with BREEAM Very Good or higher certifications in the period;

o  Issued the fourth sustainable development report for the Group, and our second Green Bond Report; and

o  Maintained our "low-risk" rating by Sustainalytics and "A" rating by MSCI.