Our opinion on the current state of GTCSA(GTC)

GTC is a property group operating in Central and Eastern Europe, with properties in Poland, Bucharest, Budapest, Belgrade, Sophia, and Zagreb. The company manages forty-seven office buildings and six retail properties with a gross lettable area (GLA) of 829,000 square meters, worth about 2.35 billion euros. It is listed on the Warsaw Stock Exchange (WSE) and the JSE.

In its results for the year to 31st December 2023, the company reported rental revenue up 10% and a loan-to-value (LTV) of 49.3%. Occupancy was 87%, and the company ended the year with 60 million euros in cash. The company stated, "As of 31 December 2023, the book value of the Group's total property portfolio, including non-current financial assets (related to investment property), was EUR 2,449.2m."

In an update on the three months to 31st March 2024, the company reported rental revenue up 7% and a loan-to-value (LTV) of 48.1%. The company noted, "46 completed commercial buildings, including 40 office buildings and six retail properties, with a total combined commercial space of approximately 755 thousand sq m of GLA, an occupancy rate at 86%, and a book value of EUR 2,008.5m, which accounts for 85% of the Group's total property portfolio."

Unfortunately, the share on the JSE is extremely thinly traded, which makes it impractical for private investors. Despite the company's strong financials and attractive property portfolio, the lack of liquidity on the JSE presents a significant risk for private investors looking to enter or exit positions efficiently.