Improvement of GTC's financial situation

Platinium Business Park
Platinium Business Park
GTC's financial performance for III quarter and nine months of 2012 means an improvement of financial situation.

Globe Trade Centre S.A. company, one of the leading developers in Europe, published its financial performance from the III quarter and from nine months of 2012. Account meets International Financial Reporting Standards and is presented in Euro.

III quarter stood out with lease proceeds amounted to 34 Euro million, which means an increase by 3% compared with the previous quarter, and gross profit from operating cash flow being on the level of 24 Euro million. Due to the limit of selling and administrative costs as well as costs of financial profits - pre-tax and write-down the value of the property and flats' projects - was 6 Euro million. In analogous period in the last year 10 million of loss was noticed. Write-down the value of the property and flats' projects amounted to 29 Euro million, which result from selling three shopping malls in Romania and negative revaluation of value of some assets, in connection with changes of market's conditions.

GTC kept progress score in a execution of three-year strategic plan on years 2012-2014. Four buildings Platinum Business Park were sold, which made 44 million of ready money. The sell of the fifth building is planned on the first quarter of 2012, which will bring 16 Euro million. GTC prolonged on years 2017-2018 maturity of bonds 50 Euro million worth and purchased bonds 17 Euro million worth, aiming to redeem them. Co-partnership entered into a binding contract concerning selling of three small shopping malls in Romania ("NCC"), which has to influence operating results. The company became also the only one owner of Galeria Wilanów, buying back from Polnord the rest of 50% of shares.

The most important events within nine months of 2012 is keeping a gross profit from operating cash flow on the level of 71 Euro million compared with analogous period in 2011, despite of selling Galeria Mokotów and keeping gross margin from a lease on a level of 73% and reaching 3% gross margin from trade. An increase of commercial space lease rate from 87% to 90% in the same period as last year is also crucial issue. Profit before tax and write-down the value of properties and flats' project in period of nine months in 2012 was 7 Euro million (in an analogous period of 2011 - 15 Euro million loss was noticed), which was caused by limit of selling and administrative costs as well as financial costs. Poor economic conditions in Romania caused negative revaluation of value of properties on the level of 39 Euro million. GTC noted a profit from revaluation on the level of 17 Euro million due to the selling of buildings Platinium Business Park I-IV and accomplishment of Platinium Business Park V and Corius construction.

We got an important period over. After successful emission of shares, GTC decided to take next actions aiming at improvement of balance sheet structure and operating results. Co-partnership finalized the sell of Platinum Business Park at the end of October, and they successfully prolonged maturity on years 2017-2018 of bonds 50 Euro million worth - said  Alain Ickovics, the Chairman of GTC's Supervisory Board.

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