GTC posted EUR 9.3m net profit, EUR 27m adjusted EBITDA in Q1 2024

GTC posted EUR 9.3m consolidated net profit attributable to shareholders of the parent company in Q1 2024 against EUR 11.2m profit a year earlier, the company said.

EBITDA was €32.2m vs. €29.6m profit a year earlier.

Adjusted EBITDA was €27m (€24m in Q1 2023). Net profit was €10 million in Q1 2024 (€12 million in Q1 2023). The decrease is mainly due to a loss on property revaluation, reads the results announcement.

Consolidated rental income reached €34.3 million in Q1 2024 vs. €31.1 million a year earlier, while property services income reached, respectively: €11.4m vs €11.6m.

Rental revenue increased by 7% to €46m in Q1 2024 (€43m in Q1 2023) with like-for-like revenue growth of 7%. [...] The Group recognised an increase in rental income of €1.5 million due to the completion of GTC X in Belgrade, Rose Hill Campus in Budapest and Matrix C in Zagreb. The Group also reported an increase in the average rental rate after indexation for inflation (CPI for Europe), the company reported.

Gross margin from operations was €32 million in Q1 2024, compared to €30 million in Q1 2023.

This was primarily driven by an increase in rental and service revenues partially offset by an increase in service costs (due to inflation), the company indicated.

The loss from the revaluation of investment properties amounted to €6 million compared to a loss of €3 million in Q1 2023. It was mainly due to capital expenditure on completed properties, it also stated.

Funds from operations (FFO I) is €19m compared to €16m in Q1 2023, with FFO I per share of €0.03.

Total investments, including long-term financial assets, amounted to €2,434 million at 31 March 2024 (€2,416 million at 31 December 2023) with a GAV of €2,298 million at 31 March 2024 (€2,281 million at 31 December 2023). Mainly as a result of investments specifically in assets under construction of 22 million euro, combined with an increase in the value of the right-of-use (and a corresponding increase in lease liabilities), due to new annual lease payments of 24 million euro. The above increase was offset by a loss on revaluation of investment properties of €6 million, the company announced.

EPRA NTA per share was €2.17 compared to €2.15 at 31 December 2023. EPRA NTA was €1,247 million compared to €1,232 million at 31 December 2023, it also stated.

Debt amounted to €1 319 million compared to €1 274 million at 31 December 2023.

The increase is mainly related to long-term loans of €56 million combined with exchange rate differences on HUF-denominated bonds of €5 million; this was offset by repayments during the period of €5 million. The current portion of long-term debt increased due to the reclassification of the loan relating to Galeria Jurajska due to its upcoming maturity in Q1 2025, the company reported.

The weighted average maturity of the debt was 3.6 years and the average interest rate was 2.58% per annum.

The net LTV ratio was 48.1% (49.3% at 31 December 2023). The net LTV ratio adjusted for cash transferred to escrow accounts was 47%.

The cash balance was €122 million at 31 March 2024 (€60 million at 31 December 2023).

"The first quarter was very good. Indexation once again had a positive impact on our revenues, which grew by 7%. We also recorded a significant increase in FFO, which, combined with the inflow of funds from the new loan agreement, contributed to a comfortable cash balance of €122 million and a decrease in LTV to 48.1%," commented CEO Gyula Nagy.

Source: GTC and ISBnews