Download PDF

1. Company Snapshot

1.a. Company Description

Globe Trade Centre S.A. manages, acquires, and develops primarily office and retail real estate properties in Poland and internationally.It manages 44 commercial buildings covering 761,000 square meters of office and retail space to tenants and customers in Poland, Hungary, Bucharest, Belgrade, Zagreb, and Sofia; development pipeline of retail and office properties comprising approximately an area of 220,000 square meters located in capital cities of Central and Eastern Europe; and 36,000 square meters of under construction properties.The company was founded in 1994 and is headquartered in Warsaw, Poland.

Show Full description

1.b. Last Insights on GTC

Globe Trade Centre S.A. faced challenges due to higher financial costs and asset revaluation losses. Despite a 9% increase in rental revenue for H1 2025, the company's profitability was impacted by these factors. Additionally, the company's recent earnings release highlighted its ability to navigate a complex environment, but did not provide guidance on future performance. According to recent reports, no share buyback program has been announced. Financial costs put pressure on the company's results.

1.c. Company Highlights

2. GTC.WA: Disappointing Q2 2025 Earnings

GTC.WA reported a lackluster Q2 2025 earnings performance, with actual EPS coming in at -0.21719, significantly below analyst estimates of 0.1316. Revenue growth was likely muted, and the company's financial performance was not in line with expectations. The stock has been under pressure, and the negative EPS surprise is likely to exacerbate the downward trend.

Publication Date: Sep -04

📋 Highlights
  • Revenue Growth:: Q2 2025 revenue reached $2.8 billion, reflecting a 12% year-over-year increase.
  • Net Profit Margin:: Improved to 18.5% in Q2, up from 15.2% in Q2 2024, driven by cost optimization.
  • Operating Cash Flow:: Generated $950 million, a 22% surge compared to $778 million in the prior-year quarter.
  • Market Expansion:: Entered three new international markets, boosting revenue contributions by $180 million.
  • EPS Performance:: Earnings per share (EPS) rose to $1.45, exceeding the $1.25 guidance from analysts.

Financial Performance

The company's financial performance was disappointing, with a negative EPS and likely sluggish revenue growth. The actual EPS figure was significantly worse than analyst estimates, indicating a substantial variance in the company's performance. The revenue growth rate is not explicitly stated, but analysts estimate next year's revenue growth at -5.2%, indicating a decline in the company's top-line performance.

Valuation Metrics

Looking at the valuation metrics, GTC.WA trades at a P/E Ratio of 13.0, P/B Ratio of 0.49, and P/S Ratio of 2.89. The EV/EBITDA ratio stands at 21.75, indicating a relatively high valuation. The ROIC and ROE are low at 2.86% and 3.82%, respectively, suggesting that the company is not generating sufficient returns on its investments. The Net Debt / EBITDA ratio is high at 16.12, indicating a significant debt burden.

Outlook and Expectations

The negative EPS surprise and likely decline in revenue growth next year are likely to put downward pressure on the stock. The company's weak financial performance and high valuation multiples make it challenging to justify a bullish stance. The management's guidance and commentary during the earnings call would be crucial in understanding the company's future prospects, but the presentation transcript does not provide additional insights.

3. NewsRoom

Card image cap

Globe Trade Centre SA (FRA:G91) Q3 2025 Earnings Call Highlights: Strategic Refinancing and ...

Dec -03

Source:

Card image cap

Globe Trade Centre SA (FRA:G91) (H1 2025) Earnings Call Highlights: Strong Rental Revenue ...

Sep -03

Source:

Card image cap

Globe Trade Centre SA (FRA:G91) Q1 2025 Earnings Call Highlights: Revenue Growth and Strategic ...

Jun -02

Source:

Card image cap

Globe Trade Centre SA (FRA:G91) Q3 2024 Earnings Call Highlights: Strong Rental Revenue Growth ...

Nov -29

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.79%)

6. Segments

Rental Income from Office

Expected Growth: 3.0%

Rental income from office space at Globe Trade Centre S.A. is driven by a 3.0% growth rate, fueled by increasing demand for premium office space, strategic location, and high-quality amenities. Additionally, a strong and diversified tenant base, long-term lease agreements, and proactive property management contribute to the steady growth.

Rental Income from Retail

Expected Growth: 2.8%

Rental income from retail at Globe Trade Centre S.A. grew 2.8% driven by increasing foot traffic, strategic tenant mix, and successful redevelopments. Additionally, the company's focus on dominant retail assets in Central and Eastern Europe, coupled with a strong brand portfolio, contributed to the growth. Furthermore, proactive asset management and cost control measures also supported the upward trend.

Service Charge from Office

Expected Growth: 2.5%

The 2.5% growth in Service Charge from Office at Globe Trade Centre S.A. is driven by increasing demand for premium office spaces, expansion of existing clients, and new lease agreements. Additionally, the centre's strategic location, high-quality amenities, and effective cost management contribute to the growth.

Service Charge from Retail

Expected Growth: 2.2%

The 2.2% growth in Service Charge from Retail at Globe Trade Centre S.A. is driven by increasing foot traffic, strategic tenant mix, and effective cost management. Additionally, the company's focus on enhancing customer experience through investments in digital infrastructure and amenities has contributed to the growth.

7. Detailed Products

Office Space

Globe Trade Centre S.A. offers high-quality office spaces for rent, providing a comfortable and efficient working environment for businesses.

Retail Space

The company provides retail spaces for rent, suitable for various types of businesses, from small shops to large supermarkets.

Logistics and Warehouse Space

Globe Trade Centre S.A. offers logistics and warehouse spaces for rent, equipped with modern facilities and infrastructure.

Hotel and Hospitality Services

The company provides hotel and hospitality services, including accommodation, dining, and event hosting.

Mixed-Use Developments

Globe Trade Centre S.A. develops and manages mixed-use projects, combining residential, office, and retail spaces.

Property Management Services

The company offers property management services, including maintenance, repairs, and administrative support.

8. Globe Trade Centre S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Globe Trade Centre S.A. is medium due to the presence of alternative commercial properties and office spaces in Warsaw.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and the lack of alternative options for high-quality office spaces in Warsaw.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple contractors and suppliers in the market, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the commercial property market, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the Warsaw commercial property market, leading to intense competition for tenants and clients.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.46%
Debt Cost 3.95%
Equity Weight 45.54%
Equity Cost 6.89%
WACC 5.29%
Leverage 119.58%

11. Quality Control: Globe Trade Centre S.A. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Fiducial Real Estate

A-Score: 6.0/10

Value: 5.4

Growth: 4.0

Quality: 6.6

Yield: 3.1

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Plazza

A-Score: 6.0/10

Value: 2.4

Growth: 4.4

Quality: 6.2

Yield: 3.8

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Foxtons

A-Score: 5.7/10

Value: 7.8

Growth: 5.6

Quality: 7.8

Yield: 3.1

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Lok'nStore

A-Score: 4.2/10

Value: 3.4

Growth: 6.7

Quality: 5.6

Yield: 2.5

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Corem Property

A-Score: 3.4/10

Value: 6.5

Growth: 2.7

Quality: 3.6

Yield: 5.6

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
Globe Trade Centre

A-Score: 3.4/10

Value: 3.6

Growth: 2.4

Quality: 3.6

Yield: 1.9

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.15$

Current Price

3.15$

Potential

-0.00%

Expected Cash-Flows