Globe Trade Centre S.A.

Our opinion on the current state of GTCSA(GTC)

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GTC is a property group operating in Central and Eastern Europe. The company has properties in Poland, Bucharest, Budapest, Belgrade, Sofia, and Zagreb. It manages forty-seven office buildings and six retail properties with a gross lettable area (GLA) of 829,000 square meters, valued at approximately 2.35 billion euros. The company is listed on both the Warsaw Stock Exchange (WSE) and the JSE.

In its results for the six months to 30th June 2024, the company reported rental revenue up by 3% and an occupancy rate of 86%. The company's loan-to-value (LTV) ratio stood at 48.2%. GTC noted that, while the direct impact of the war in Ukraine on the Group’s operations is not material, it remains difficult to predict the future scale of the impact due to high volatility. The company is closely monitoring the situation and analyzing its potential impact on individual projects, as well as the entire Group and its long-term investment plans.

On 19th September 2024, GTC reported that its headline earnings per share (HEPS) for the six months to 30th June 2024 was 5 euro cents, compared to 11 cents for the period ending 31st December 2023. Unfortunately, the share on the JSE is extremely thinly traded, making it impractical for private investors.

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