Biggest office owner in Romania reports higher operating profit in 2020
Regional real estate investor Globalworth, with a focus on office properties in Poland and Romania, reported that its revenues edged up slightly, and its profit from operations rose consistently in 2020 when most of the employees in its office buildings worked from home. However, the revaluation of its portfolio generated accounting expenditures (with no implications on its cash flow) that brought the bottom line in the negative region.
Thus, the company's revenues increased by 0.5% compared to 2019 and reached EUR 223.3 million, 56% of which was derived in Poland and 44% in Romania. The operating income increased by 6.5%, to EUR 157.3 mln, News.ro reported.
The company's EBITDA was EUR 141.6 mln, compared to EUR 129 mln in 2019, and the net operating profit reached EUR 69.4 mln, 18.6% more than in 2019, the report shows.
"Despite the significant disruption of economic and social activity for most of 2020, I am pleased to report that our strengths and competitive advantages have resulted in very optimistic operational performance and financial results. At the same time, we have maintained a close relationship and supported our customers and the wider community in which we live and operate," said Globalworth Group leader Dimitris Raptis.
However, the company ended with reporting a net loss of EUR 46.8 mln, compared to the record profit of EUR 176.2 mln in 2019, due to the decrease in its property value generated by the COVID-19 pandemic.
According to the report, in 2021, the group focused only on projects rented in advance or an advanced stage of construction, delivering two "A" class office buildings and two high-quality industrial units in Romania and Poland with a gross leasable area of 95,800 sqm.
The consolidated surface of the operational portfolio increased by 4.7%, reaching 1,271,300 sqm of gross leasable area.
The total value of Globalworth's portfolio at the end of 2020 was about EUR 3 bln.
(Photo source: the company)