Globalworth Real Estate Investments (LSE:GWI), a leading office investor in Central and Eastern Europe, released its financial results for the first half of 2020 this week. Despite the COVID crisis, the company announced gains in revenues and net operating income, which rose by 9.9% to €114.0 million and by 17.1% to €79.6 million as compared to H1-19, respectively.
The numbers were helped by the acquisition of standing properties in Poland and the completion in of newly developed properties in Romania in 2019, with income coming on stream in 2020 to boost the results.
At a time where rent defaults and delays have been widespread across the industry, Globalworth managed a 95.5% rent collection rate during the first half of 2020. 89.9% of the portfolio’s contracted rent is from office and industrial properties, which seem to have escaped largely unscathed from measures taken by the authorities in Poland and Romania to fight Covid-19.
While the valuation of Globalworth’s portfolio was hit by a general decline in values caused by the Covid-driven economic slowdown, the addition of new developments to the asset mix have resulted in the total combined portfolio value remaining effectively unchanged in 2020 at €3.0 billion.
Dimitris Raptis, Co-Chief Executive Officer and Chief Investment Officer of Globalworth, commenting on the results said, “2020 has been a year of significant challenges, with a first quarter full of optimism and strong performance coming to an abrupt halt in March due to the Covid-19 pandemic. However, since the very early days of the pandemic we have taken measures in Poland and Romania, aimed at ensuring not only the maximum possible protection for all parties concerned, but also business continuity and long-term viability. I am proud to say that our proactive approach and, in certain cases, assertive measures, have been in the right direction and have placed us in the best possible position to emerge stronger in due course and a relative winner from the current turbulent times.”