Globalworth Reports Mixed H1 2025 Results with S&P Downgrade and Portfolio Growth

Globalworth H1 2025: steady portfolio, softer earnings, and a split verdict from the ratings agencies

Globalworth has dropped a set of unaudited headline numbers ahead of full interim results in late September. The portfolio nudged higher in value and the balance sheet remains liquid, but earnings softened and S&P trimmed its credit rating. Here’s what stood out – and what it means for holders of the stock.

Headline performance and portfolio value

The combined portfolio value edged up 0.6% to just above €2.6 billion as at 30 June 2025, helped by small revaluation gains. On a like-for-like basis the standing office and mixed-use properties also rose 0.6% (or €15.4 million) to around €2.4 billion. The standing footprint is steady at just over 1.0 million sqm across 56 buildings after minor residential and retail sales in Bucharest.

Commercial occupancy slipped 0.9 percentage points to 85.9%, driven mainly by space coming back in two Bucharest offices. Contracted rent was stable at €187.7 million, up 0.1% versus year-end, with 98.5% of that already active. Eligible leases were indexed at an average of 2.5% in the half.

Earnings: a weaker P&L despite valuation stability

Revenue fell to €115.7 million (H1 2024: €125.0 million) and net operating income declined 7.4% to €67.0 million. The company highlights a like-for-like NOI of €68.6 million, up 2.9% when excluding industrial disposals and a €1.6 million one-off non-recoverable operating expense. That tells you the core office and mixed-use engine is holding up better than the headline suggests.

Finance costs fell by €13.7 million year-on-year, largely because H1 2024 included €12.8 million of one-offs from note refinancings. On a like-for-like basis finance cost was down €1.0 million (3.0%). Even so, EPRA earnings dropped to €17.7 million (H1 2024: €29.8 million), hit by €5.6 million of asset disposal impacts and a one-off income tax charge of €5.9 million for fiscal years 2020-2022. Adjusted normalised EBITDA was €57.3 million, down 9.9%. The company also cites like-for-like EBITDA of €58.9 million (H1 2024: €58.0 million), and notes a €1.0 million decline due to higher admin costs.

On IFRS numbers, Globalworth swung to a small profit of €8.0 million from a €65.2 million loss a year ago, helped by minimal fair value losses this time (€1.7 million versus €50.5 million).

Leasing and occupancy: Poland drags, Romania resilient

Leasing momentum was reasonable: 52.3k sqm of space leased or extended, with an average weighted average lease length (WALL) of 5.1 years. Romania contributed 53.1% of deals; Poland 46.9%.

• Group commercial occupancy: 85.9% (down 0.9pp versus December).
• Poland occupancy: 77.5% with a portfolio WALL of 3.7 years.
• Romania occupancy: 95.2% with a portfolio WALL of 5.2 years.

The split is striking. Romania remains the ballast; Poland is the work-in-progress. Any recovery in Warsaw and the regional Polish cities would be a key driver for rent roll and valuation upside.

Balance sheet, liquidity and LTV

Debt management looks sensible. Total debt reduced marginally by €6.2 million through scheduled repayments, and the weighted average debt maturity sits at 4.7 years. In April, the company refinanced a €100 million secured facility due May 2025, extending it by five years – a useful de-risking move.

Cash was a chunky €325.5 million at period-end (31 December 2024: €333.6 million), and loan-to-value improved to 38.0% from 38.1%. These are solid cushions should leasing in Poland take longer to mend.

Dividends and per-share value

Globalworth continued with the scrip dividend. Uptake was high, with Scrip Dividend Shares covering 98.2% of the share capital issued in April. The residual cash dividend was €0.5 million (€0.09 per share) paid to the remaining holders.

EPRA NRV is €1.6 billion or €5.67 per share, down 3.7% per share from €5.89 at year-end. The reduction is primarily the €0.15 per share dilutive impact from issuing 11.8 million new scrip shares at a discount to NRV.

Credit ratings: Fitch steady, S&P a notch lower

Fitch reaffirmed Globalworth’s investment grade rating with a stable outlook in July. S&P, however, moved the rating to BB from BB+ with a stable outlook during H1 2025. The split reflects a company with adequate liquidity and moderate leverage, but with earnings pressure and occupancy risk, especially in Poland. Practically, a lower S&P rating can nudge funding costs higher at the margin, so continued progress on leasing and cash generation matters.

Sustainability milestones

It’s easy to overlook, but green credentials increasingly influence tenant decisions and financing. Globalworth now counts €2.5 billion invested in 52 green-certified properties, representing 96.8% of portfolio value. Six Romanian assets gained or renewed LEED Platinum in H1, and third-party ratings remain unchanged – “low-risk” from Sustainalytics and “A” from MSCI.

Why this update matters for investors

• Defensive backbone: Stable contracted rent (€187.7 million) and long average lease length help through a soft patch.
• Poland is the swing factor: 77.5% occupancy leaves clear upside if demand improves; conversely, delays will weigh on EPRA earnings.
• Funding risk contained: €325.5 million cash, 4.7-year debt maturity and successful €100 million refinancing de-risk near-term obligations.
• Earnings softer: EPRA earnings and EBITDA declined, partly due to one-offs, but also reflecting higher admin costs and asset sales.
• Per-share dilution: Scrip helps preserve cash but trims EPRA NRV per share. Watch the trade-off if scrip continues.

What to watch into the full interim report

• Leasing pipeline and backfill of the Bucharest vacancies that knocked occupancy.
• Any traction on Polish occupancy, especially Warsaw and Krakow, where the group has large exposure.
• Further asset rotation plans after industrial disposals and the impact on recurring NOI.
• Cost discipline, given admin expenses nudged like-for-like EBITDA lower.
• Credit market tone following S&P’s downgrade and any read-across to future refinancing spreads.

Geographic and asset mix snapshot

The portfolio is split 54% Poland and 46% Romania by value. Offices dominate at 87.2% of GAV, with mixed-use at 10.8% and small residuals in industrial and other categories. Contracted rent by country is balanced: €98.3 million Poland and €89.4 million Romania.

Key numbers at a glance

Metric	H1 2025	Comparative
Portfolio value	c. €2.6 billion	+0.6% vs 31 Dec 2024
Commercial occupancy	85.9%	-0.9pp vs 31 Dec 2024
Contracted rent	€187.7 million	€187.5 million at 31 Dec 2024
Net operating income	€67.0 million	€72.4 million in H1 2024
EPRA earnings	€17.7 million	€29.8 million in H1 2024
Adjusted normalised EBITDA	€57.3 million	€63.6 million in H1 2024
IFRS profit/(loss)	€8.0 million	€(65.2) million in H1 2024
Cash and cash equivalents	€325.5 million	€333.6 million at 31 Dec 2024
LTV	38.0%	38.1% at 31 Dec 2024
EPRA NRV per share	€5.67	€5.89 at 31 Dec 2024
Average debt maturity	4.7 years	Refinanced €100m facility in April

Bottom line

These are mixed but not alarming numbers. The portfolio value is steady, liquidity is strong and Fitch’s stance supports the credit story. Offsetting that, occupancy drifted, earnings softened and S&P’s downgrade is a reminder that execution in Poland needs to improve. If leasing momentum can lift group occupancy back toward the high 80s and above, the ingredients are there for earnings stabilisation and a better NRV trajectory.

Full details are due with the interim report in the week commencing 22 September 2025. Company materials can be found at www.globalworth.com.