A Real Estate AIM Stock - Globalworth Real Estate Investments Ltd (GWI)

  • May 21, 2019 BST
  • Team Kalkine
A Real Estate AIM Stock - Globalworth Real Estate Investments Ltd (GWI)

Overview

Globalworth Real Estate Investments Ltd (GWI) is a real estate company with a main focus on the two largest markets in Central and Eastern Europe (CEE) being Poland and Romania. The company acquires, manages and develops commercial real estate assets, mainly in the office sector. Globalworth has an employee base of more than 170 professionals located in Poland and Romania.

Financial Highlights – Financial Year 2018 (€, thousand)

(Source: Annual Report, Company website)

 

In the financial year ending 31st December 2018, the company’s reported revenue was €192,801 thousand against €77,866 thousand in FY2017. The was a significant increase of 147.6 per cent driven by further acquisitions made in Poland and strong revenue growth from leasing activities in Romania region. The net operating income for FY2018 stood at €133,441 thousand versus €51,094 thousand in FY2017. The Normalised EBITDA for FY2018 increased by 135 per cent to €96.9 million from €41.2 million in FY2017. The adjusted normalised EBITDA was €119.0 million in FY2018 versus €42.8 million in FY2017. Profit before net financing cost was up by €89,703 thousand from €60,982 thousand in FY2017 to €150,685 thousand in FY2018. Profit before tax stood at €115,342 thousand in FY2018 against €26,152 thousand in FY2017. Profit for the year FY2018 was €99,917 thousand versus €23,747 thousand in FY2017. The basic earnings per share was 60.67 cents in FY2018 against 26.40 cents in FY2017. The diluted earnings per share was 60.57 cents in FY2018 against 26.04 cents in FY2017. The dividends per share for FY2018 was 54 cents against 44 cents in FY2017. The open market value of the portfolio was up by €646.8 million to €2.5 billion in FY2018, giving an upside of 35.6 per cent primarily driven by the acquisitions and revaluation gains.

Share Price Performance

Daily Chart as at May-21-19, before the market closed (Source: Thomson Reuters) 

On 21st May 2019, at the time of writing (before the market closed, at GMT 12:40 PM), Globalworth Real Estate Investments Ltd shares were trading at EUR 9.00, down by 0.27 per cent against the previous day closing price. Stock's 52 weeks High and Low is EUR 9.85/EUR 7.50. At the time of writing, the share was trading 8.63 per cent lower than the 52w High and 20.00 per cent higher than the 52w low level. The company’s stock beta was 0.57, reflecting lower volatility as compared to the benchmark index. The outstanding market capitalisation was around €1.72 billion with a dividend yield of 5.98 per cent.

 

Conclusion

The company had shown an increase in top-line and bottom-line performance in the current financial year. The company’s revenue had increased from a strong growth performance in the geographies of Poland and Romania. The company’s ongoing growth is managed by a mix of debt and equity financing to maximize shareholders return. The company’s operations are affected by the uncertainty created in the domestic market. The movement of Euro against Romanian Leu and the Polish Zloty might inflate the foreign exchange risk for the company.  While keeping the risks in mind, the stock looks interesting from an investment standpoint.

   
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