LONDON (Alliance News) - Globalworth Real Estate Investments Ltd on Thursday said its portfolio value rose 86% over the year due to the investments in Poland.
The real estate investment fund said its pretax profit more than doubled to EUR26.2 million in 2017 from EUR12.2 million the prior year, as a result of EUR25.7 million gain recorded on the acquisition of about a 72% shareholding in the GPRE Group in Poland.
Globalworth said its appraised portfolio value increased by EUR680.1 million after the purchase of GPRE, a Polish real estate platform, to EUR1.8 billion in total. In 2016, the real estate portfolio was valued at EUR977.5 million.
Globalworth said it invested about EUR694.4 million through the expansion into Poland and further acquisitions in Romania. The estate's occupancy rate at the end of December was around 93%, up from 83% in 2016.
Net asset value also nearly doubled to EUR1.2 billion from EUR783.8 million in 2016. On a share price basis, NAV rose to 884.00 euro cents per share from 857.00 cents per share the year before.
Globalworth shares were down 3.3% at EUR8.70 per share on Thursday.
Revenue grew 14% to EUR77.9 million from EUR68.2 million the prior year.
Globalworth Chief Executive Officer Dimitris Raptis said: "These results highlight the significant progress achieved by Globalworth in 2017 across the business, with the strengthened capital structure placing us in a strong position going into 2018. Our two markets, Romania and Poland, continue to offer above-average economic growth prospects and we see a strong backdrop of tenant demand. By targeting the right sectors in the right markets, we believe we are well positioned to capitalise on the dynamic structural trends we are witnessing today. We are focused on our objective of establishing Globalworth as the region's leading office landlord and to build on our ambition of being the partner of choice for the wide variety of high-quality tenants in the region."
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