GTC reports €9.4 million net profit and €21.3 million EBIT in Q3 2024

GTC posted a consolidated net profit of €9.4 million attributable to shareholders in the third quarter of 2024, doubling its profit from €4.6 million in the same period last year. The company’s operating profit (EBIT) for the quarter also increased to €21.3 million, up from €19.8 million in Q3 2023, the company announced.

President Gyula Nagy highlighted the company’s strong performance, attributing it to continued positive trends from the first half of the year. “The third quarter reinforced GTC’s momentum, with improvements in revenue and FFO growth, alongside a significant expansion of our asset portfolio,” Nagy stated. He emphasized the strategic importance of acquiring a residential real estate portfolio in Germany, which adds 5,165 units to GTC’s portfolio. “This transaction diversifies our holdings and strengthens our position in the high-demand German housing market,” Nagy added.

Q3 2024 Performance Highlights

GTC’s rental revenue grew to €34.9 million in Q3 2024, up from €34.1 million a year earlier. Real estate service revenues also increased slightly to €11.9 million, compared to €11.7 million in Q3 2023.

For the first nine months of 2024, GTC reported consolidated net profit of €104.5 million, a significant rebound from a €7.4 million loss in the same period last year. Rental revenues for the period totaled €104.5 million, up from €99.5 million, while real estate service revenues reached €34.9 million. Adjusted EBITDA for the nine months rose to €84 million, compared to €78 million a year ago.

The company cited a 3% rise in rental revenues as a key driver of growth, supported by successful projects such as GTC X in Belgrade, Rose Hill Business Campus in Budapest, and Matrix C in Zagreb. Inflation-indexed rent adjustments also contributed to the increase.

Asset Value and Investment Activities

As of 30 September 2024, GTC’s total investment value, including fixed assets, amounted to €2.49 billion, up from €2.42 billion at the end of 2023. The rise was driven by €63 million in construction investments and the acquisition of new investment properties valued at €14 million.

The company’s net loan-to-value (LTV) ratio improved slightly to 48.8%, compared to 49.3% at the end of 2023. Total debt increased marginally to €1.297 billion, primarily due to long-term loan drawdowns of €88 million, offset by repayments of €52 million.

Challenges and Market Outlook

Despite the positive performance, GTC reported a €6 million loss from the revaluation of completed office properties in Poland, reflecting a decline in rental indices compared to 2023. However, improvements in the Polish office market were noted during Q3 2024, signaling a potential recovery.

Looking ahead, GTC remains focused on its core markets in Poland and Central and Eastern European capitals, with a diversified portfolio that now includes a growing residential segment.

Source: GTC and ISBnews