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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.

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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. Mixed Q3 2025 Results: Revenue Growth Offset by Financing Costs

GTC's Q3 2025 results showed a 9% overall revenue growth, but a 4% decrease excluding the German acquisition, highlighting the impact of the recent acquisition on the company's financials. The company's EBITDA dropped to EUR 77 million, mainly due to asset disposals and increased property expenses, resulting in a loss of EUR 28 million, compared to a profit of EUR 41 million last year. The actual EPS came out at '-0.21719', relative to estimates at '0.1316', a significant miss. Analysts estimate next year's revenue growth at -5.2%, indicating a challenging environment for the company.

Publication Date: 08:58

📋 Highlights
  • Revenue Growth Mixed:: 9% overall revenue growth, but -4% excluding the German acquisition.
  • High Financing Costs:: EUR 28M loss vs. EUR 41M profit last year due to increased finance costs from German acquisition debt.
  • Refinancing Activity:: Issued EUR 455M new bonds (EUR 430M cash received) and repaid EUR 195M in outstanding bonds.
  • German Portfolio Performance:: 86% occupancy with EUR 24M annualizing rent, but high property expenses and need for occupancy improvement.
  • Dividend Pause:: No dividends in 2026; prioritizing deleveraging and asset sales to reduce LTV and interest expenses.

Financing Costs and Debt Repayment

GTC's profitability was impacted by significant financing costs related to the German acquisition. The company successfully refinanced its bonds, issuing EUR 455 million in new bonds, with EUR 430 million in cash received, and used EUR 195 million to buy back outstanding bonds. This move is part of the company's strategy to reduce its LTV and interest expenses through refinancing and debt repayment. The average weighted interest rate for 9 months is about 3.8%, highlighting the need for debt restructuring.

Portfolio Performance

The company's portfolio is 88% income-generating, with a majority in office, retail, and residential assets purchased in Germany. Office portfolio occupancy dropped in Hungary but increased in Poland, with a weighted average lease of 3.6 years. The retail portfolio is fully occupied, with potential for increased occupancy in Poland. The German portfolio showed a slight increase in occupancy to 86%, with an annualizing rent of EUR 24 million, indicating a stable performance.

Valuation and Outlook

With a P/E Ratio of 21.95 and an EV/EBITDA of 23.75, the stock seems to be pricing in a significant recovery. However, the Net Debt / EBITDA ratio of 18.61 raises concerns about the company's leverage. The company's focus on deleveraging, asset sales, and cost efficiency improvements is crucial to improving its financials. The dividend yield is currently 0.0%, and the company prioritizes finishing the refinancing journey and deleveraging assets over dividend payments. The ROE is 1.74%, and the ROIC is 2.15%, indicating a challenging environment for the company to generate returns.

Future Plans

GTC aims to finalize the extension of loans by the end of Q1 2026 and is working on increasing occupancy in Germany, with a current 86% occupancy rate. The company expects a decrease in property expenses in 2026, which will increase the Net Operating Income (NOI). GTC is also analyzing scenarios and strategies for selling part of its German portfolio to reduce the Loan-to-Value (LTV) ratio and financing costs, with a tactical approach to maximize returns for investors and lenders.

3. NewsRoom

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

Dec -03

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

Sep -03

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

Jun -02

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

Nov -29

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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

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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

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Plazza

A-Score: 6.0/10

Value: 2.4

Growth: 4.4

Quality: 6.2

Yield: 3.8

Momentum: 9.0

Volatility: 10.0

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Foxtons

A-Score: 5.7/10

Value: 7.8

Growth: 5.6

Quality: 7.8

Yield: 3.1

Momentum: 2.5

Volatility: 7.3

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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

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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

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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 ->

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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