P3 Group released its condensed consolidated interim financial results for the year 2023, reporting another period of robust operational and financial performance.
The company recorded a 19 percent increase in NOI to €423 million (2022: €357 million), attributed to portfolio expansion and increasing rent levels. On a like-for-like basis, NOI rose by 6 percent, driven by lease indexation and strong re-leasing spreads, with new effective rents averaging 23 percent higher when compared to prior leases on the same space. An enhanced EBITDA margin of 83 percent was achieved, reflecting the company’s strategic focus on growth, efficient re-leasing, and operational efficiency.
P3’s asset portfolio grew to 8.4 million sqm of Gross Lettable Area (GLA) (2022: 7.6 million sqm GLA), while maintaining an overall high occupancy rate of 97 percent (2022: 98 percent). In total, 950,000 sqm were added through acquisitions and completed developments, offset by some minor disposals. In August, P3 made its debut in the UK market and currently has assets totalling 160,000 sqm GLA under management. The company’s portfolio remains weighted towards Western Europe, with approximately 60 percent of assets based in Western Europe and the remaining 40 percent in Central and Eastern Europe.
In the reporting period, P3 completed several key transactions, including seven yielding acquisitions in Poland, Germany, France, and Spain, adding approximately 700,000 sqm to its portfolio. Additionally, the company acquired two forward funding development projects in the Netherlands totalling 90,000 sqm and completed 11 developments across Europe with a total of 250,000 sqm GLA. P3 shows continued momentum in the development pipeline with 20 projects under construction, which are 69 percent pre-let, totalling 740,000 sqm GLA. Additionally, three forward funding opportunities, totalling another 80,000 sqm GLA, are also in progress.
Bartłomiej Hofman, Managing Director, P3 Logistic Parks in Poland, said: “For the entire P3 team, also the one in Poland, the last year was not only extremely busy but also very satisfying due to the rewarding achievement of the ambitious goals we had set. The market data present P3 as the most active investor in Poland in 2023 which is the result, among others, of the largest single property acquisition transaction on the market – the Wrocław Campus 39 park with an area of 185,000 sqm. The acquisition of two other projects – 7R Park Łódź West and 7R Park Szczecin – also contributed to this outcome. Furthermore, the lease agreements signed by P3 had the largest share of the total space leased on the Polish market last year, reaching the level of 12 percent. We have also observed record-breaking results related to the initiated development investments, exceeding 400,000 sqm of leasable area, which makes us the second most active developer in Poland”.
Frank Pörschke, P3 CEO, commented: “Structural tailwinds for the logistics real estate market remain intact, despite economic uncertainties which persisted through 2023. Interest hikes led to a higher cost of debt and increased returns requirements overall, which were partly balanced by strong rental growth. Despite these challenges, P3 recorded robust operating and financial performance. The impact of our acquisition and development activities contributed to a growing portfolio value to €9.0 billion, offsetting the impact of disposals and revaluation.”
Thilo Kusch, P3 CFO, added: “P3 recorded robust financial performance in 2023, with an improved EBITDA margin of 83 percent, reflecting the company’s strategic focus on growth, efficient re-leasing, and operational efficiency. Despite the challenging economic environment, P3 was able to sign over €2 billion in debt in 2023, which coupled with the continued support of our shareholders, ensures a solid financial foundation with a stable LTV ratio of 46.3 percent and strong liquidity. After the year’s end, we successfully issued an unsecured €600 million Green Bond. Demand was very strong and the order book, consisting of more than 150 investors, was more than five times oversubscribed.”
