We think GRE is investment-worthy because it has decent fundamentals, but is trading cheaply. Its year-to-date and one-year total investment returns are –17.3% and –39.1% respectively, denoting that it is trading significantly cheaper. The business fundamentals indicators have at worst only marginally declined over this period, taking into account the total portfolio value, gross leasable area, contracted rent, and number of properties.
London-listed Globalworth Real Estate Investments (GRE) is a leading real estate company that acquires, develops and manages commercial real estate assets, primarily in the office sector across the Central and Eastern European (CEE) region. GRE’s geographical focus is in Romania and Poland, where it owns over 70 standing buildings in prime locations within their respective sub-markets in 13 of the largest and most liquid sub-markets in Romania and Poland.
The company’s portfolio primarily consists of Class-A office buildings, along with investments in mixed-use (office and commercial), logistics, and light-industrial properties. As of its latest 2022 annual report, GRE has a combined portfolio value of EUR3.2 billion ($4.7 billion), 85.6% standing commercial occupancy and around 1.406 million sq m of gross leasable area (GLA), with 106,000 sq m under development and refurbishment.
