6
All the financial data in this Report is presented in EUR or PLN and expressed in million unless indicated otherwise
TABLE OF CONTENT
1. Introduction .......................................................................................................................................... 8
2. Presentation of the Group ................................................................................................................... 9
2.1 General information about the Group ............................................................................................ 9
2.2 Main events of 2023 .................................................................................................................... 10
2.3 Structure of the Group ................................................................................................................. 12
2.4 Changes to the principal rules of the management of the Company and the Group .................. 13
2.5 The Group’s Strategy .................................................................................................................. 14
2.6 Information on the Company’s policy on sponsorship, charity, and other similar activities. ....... 16
2.7 Business overview ....................................................................................................................... 18
2.7.1 Overview of the investment portfolio .................................................................................... 18
2.7.1.1 Overview of income generating portfolio including real estate assets held for sale ......... 18
2.7.1.1.1 Overview of the office portfolio ....................................................................................... 20
2.7.1.1.1.1 Office portfolio in Budapest ......................................................................................... 20
2.7.1.1.1.2 Office portfolio in Poland ............................................................................................. 21
2.7.1.1.1.3 Office portfolio in Sofia ................................................................................................ 22
2.7.1.1.1.4 Office portfolio in Bucharest ........................................................................................ 23
2.7.1.1.1.5 Office portfolio in Belgrade .......................................................................................... 23
2.7.1.1.1.6 Office portfolio in Zagreb ............................................................................................. 24
2.7.1.1.2 Overview of the retail portfolio ........................................................................................ 24
2.7.1.1.2.1 Retail portfolio in Poland ............................................................................................. 25
2.7.1.1.2.2 Retail portfolio in Belgrade .......................................................................................... 25
2.7.1.1.2.3 Retail portfolio in Zagreb ............................................................................................. 26
2.7.1.1.2.4 Retail portfolio in Sofia ................................................................................................ 26
2.7.1.1.2.5 Retail portfolio in Budapest ......................................................................................... 27
2.7.1.2 Overview of properties under construction ........................................................................ 27
2.7.1.3 Overview of investment property landbank ....................................................................... 28
2.7.1.4 Rights of use – investment property .................................................................................. 28
2.7.2 Residential landbank ............................................................................................................ 28
2.7.3 Non-current financial assets (related to investment property) .............................................. 28
2.8 Overview of the markets on which the Group operates .......................................................... 30
2.8.1 Office market ........................................................................................................................ 30
2.8.2 Retail market ........................................................................................................................ 35
2.8.3 Investment market ................................................................................................................ 38
3. Selected financial data ...................................................................................................................... 41
4. Operating and financial review .......................................................................................................... 43
4.1 General factors affecting operating and financial results ............................................................ 43
4.2 Specific factors affecting financial and operating results ............................................................ 43
4.3 Presentation of differences between achieved financial results and published forecasts .......... 44
4.4 Statement of financial position .................................................................................................... 44
4.5 Consolidated income statement .................................................................................................. 46
4.6 Consolidated cash flow statement ............................................................................................... 48
4.7 Future liquidity and capital resources .......................................................................................... 49
5. Information on loans granted with a particular emphasis on related entities .................................... 50
6. Information on granted and received guarantees with a particular emphasis on guarantees granted
to related entities ............................................................................................................................... 50
7. Off balance sheet assets and liabilities ............................................................................................. 50
8. Major investments, local and foreign (securities, financial instruments, intangible assets, real estate),
including capital investments outside the Group and its financing method ....................................... 50
9. Remuneration policy and human resources management ................................................................ 51
9.1 Remuneration policy .................................................................................................................... 51
9.2 Incentive system .......................................................................................................................... 52
9.2.1 Phantom Shares program control system ................................................................................ 53
9.3 Agreements concluded between GTC and management board members ................................. 53
9.4 Evaluation of the remuneration policy for the realization of its objectives ................................... 53
9.5 Remuneration of the members of the management board and supervisory board ..................... 54
9.6 Number of employees ................................................................................................................. 55
9.7 Training policy ............................................................................................................................. 55