Highlights

• Globalworth declared euro interim dividends of 5 cents and 7 cents per share, with ex-dates in March and September 2026.

• EPRA Earnings of 11 euro cents per share trailed the 14 cents of dividends declared for 2025.

• Reported loan-to-value stood at 37.0%, inside the company's 40% target range, with covenants in compliance.

• Occupancy slipped to 85.4% as the refurbished Renoma building reached only 63.6% occupancy in the period.

Warsaw and Bucharest are not obvious hunting grounds for UK income seekers, yet Globalworth Real Estate Investments (LSE:GWI) puts Central and Eastern European offices on London's AIM. It pays in euros, offers shares in place of cash, and now has to square a smaller dividend with softer earnings.

What was paid

Two euro dividends went ex between 11 November 2025 and 10 November 2026. The first, 5 cents per share, went ex on 12 March 2026 and was paid on 21 April, with a scrip alternative priced at a 20% discount to the five-day average mid-market price. The second, 7 cents, is listed with an ex-date of 3 September 2026 and payment on 9 October. Together they reach 12 cents. Share prices of 1.75 euros and 1.45 to 1.50 euros have both been quoted, so the trailing Yield sits between about 6.9% and 8.1%, depending on the price used.

Earnings against dividends

The articles require distribution of at least 90% of EPRA earnings twice a year. For 2025, EPRA earnings were €32.5 million, or 11 cents per share, against 21 cents in 2024, while dividends per share were 14 cents against 21 cents. Declared dividends were €39.6 million, of which €24.6 million was settled in scrip shares and €15.0 million in cash. EPRA Earnings Per Share therefore covered about 0.8 times of the 14 cents declared for the year.

The portfolio

The company owns 57 standing Assets in 33 investments, mostly Class A offices in Poland and Romania, plus three mixed-use properties, with 1,058.1 thousand square metres of lettable area. The portfolio is valued at about €2.6 billion, annualised contracted rent was €189.5 million and there are more than 650 tenants. EPRA net reinstatement value was €5.62 per share, down from €5.89, reflecting scrip dilution and a property valuation loss of €15.0 million.

Debt and occupancy

Reported loan-to-value was 37.0%, compared with 38.1% a year earlier, and the EPRA measure was 38.2%. All covenants were met, and no Debt matures within twelve months other than scheduled amortisation. Standing commercial occupancy fell to 85.4% from 86.7%, mainly because the refurbished Renoma building was 63.6% occupied. Romanian like-for-like occupancy dropped from 96.8% to 94.4%.

Risks

Scrip take-up dilutes existing holders, since 98.2% of one earlier interim was taken in shares. Development of the Green Court D office in Bucharest still requires about €37.7 million of Capital Expenditure and was 61.8% pre-leased in February 2026. Property yields, Polish vacancy that lowered the cost Recovery Rate to 78.1%, and refinancing all influence future payouts.

How scrip dividends work

A scrip dividend lets shareholders take new shares instead of cash. Globalworth Real Estate Investments (LSE:GWI) offers this at a 20% discount to the average mid-market price, which can be attractive to holders who want to build their stake. The company benefits by keeping cash in the business. The downside is dilution: when many holders choose shares, the total share count rises, and each existing share represents a smaller part of the company.

EPRA earnings and cover

EPRA earnings measure the recurring profit of a property company by removing items such as valuation changes. The company's articles require distribution of at least 90% of these earnings, which explains why dividends track them closely. In 2025, EPRA earnings per share of 11 cents were below the 14 cents declared, so cover was about 0.8 times. A shortfall like this means the payment relied partly on other resources, which is why the scrip option is useful to the company.

Office Demand in Poland and Romania

The portfolio of mostly Class A offices in Poland and Romania serves more than 650 tenants. Demand depends on how companies use office space, the Supply of new buildings and the quality of the property. A refurbished building such as Renoma, at 63.6% occupancy, shows how long it can take to Lease new space. For LSE:GWI, leasing progress at Renoma and Green Court D will be among the key factors for future income.

What to watch next

The next steps are the interim results, the 7 cent payment on 9 October and the company's comments on occupancy and refinancing. Investors should follow EPRA earnings per share, loan-to-value against the 40% target and scrip take-up. A rise in earnings towards the level of the dividend would support the payout, while a further fall in occupancy would increase pressure.