Devaluation of a portfolio influences the financial results of GTC

Platinium Business Park
Platinium Business Park
Globe Trade Center S.A. presents its financial results for the third quarter and the first nine months of 2013.

According to the data presented by GTC, the incomes from renting and services in the third quater of 2013 ranged 30 million Euro, i.e. 4 million less than in analogous period in 2012. This situation is caused by the sale of Platinium Business Park and the decrease in rent rates in office sector in Poland and Hungary. In the scale of the first nine months of 2013, the incomes were estimated at 89 million Euro. This result is 9 million less in relation to the first nine months of the previous year.


The income before the taxation from managerial options program costs and deductions actualizing the real estate's value remained on its level. It was estimated at 7 million Euro in the third quarter which is precisely as much as in the third quarter of 2012. In terms of the first nine months of the years compared, the income has risen from 10 to 14 million Euro.


GTC also informs of the increase of gross margin on the operational activities from 71 percent in the third quarter of the previous year to 74 percent in an analogous period of this year. Moreover, the financial costs have fallen to 10 million from the 13 million noted in the third quarter of 2012, which is caused by the decrease in the level of debt caused by the purchase of obligations and repaying of loans.


The transfer of financial funds from the operational activities (after the repaying of interests) after nine months of 2013 reached the level of 23 million Euro, which is 5 million less than in previous year. It was caused by the sale of Platinium Business Park, which generated 5 million Euro in the first half of 2012. State of financial resources, their equivalents and deposits reached the level of 103 million Euro.


The third quarter went according to our expectations - said Alain Ickovics, Head of Board on GTC. We've carried on an improvement of operational results and the strategy of selling assets. Operational results of GTC in all areas show an improvement in comparison to the same period of the previous year. The sale of Galeria Kazimierz is a part of our strategy of refreshing our portfolio by the sale of older assets and replacing them with new projects providing an interesting return from invested resources. The company is fluently paying back its debts, what allowed us to decrease the LTV index to 55 % by the end of September. We're satisfied with what we've accomplished but still have a lot of work ahead of us. Our priority at this moment are three large-area commercial locations, which we're building in Warsaw and Belgrade. We're also preparing to pay the obligations on the next year - he said.


The report has been commissioned in accordance with International Financial Reliability Standards (IFRS).

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