Key figures for Q1-Q3 2023:
- Operating income: PLN 268.4 million, +36% yoy EUR 58.7 million (+40% vs Q1-Q3 2022);
- EBITDA without revaluation: PLN 136.1 million (+34% vs Q1-Q3 2022), EUR 29.7 million (+38% vs Q1-Q3 2022);
- Value of investment properties: PLN 4.6 billion (+4% vs 31 December 2022), EUR 992.7 million (+5% vs 31 December 2022);
- Net Assets Value (NAV): PLN 2,509 million (+0.5% vs 31 December 2022), EUR 541.3 million (+2% vs 31 December 2022);
- NAV per share: PLN 104.6 (+0.5% vs 31 December 2022), EUR 22.6 (+2% vs 31 December 2022);
- FFO: PLN 73.2 million (+15% vs Q1-Q3 2022), EUR 16.0 million (+18% vs Q1-Q3 2022);
- Net profit: PLN 26.3 million (EUR 5.7 million);
- Leases signed in 2023: about 175,000 sqm;
- BREEAM/DGNB: 85% of the entire property portfolio is certified as ‘Very Good’.
“Despite overcoming a fairly demanding macroeconomic landscape fraught with geopolitical challenges, we have been consistently meeting our strategic goals, maintaining a very stable portfolio of tenants. Our strategic focus on scaling up has yielded positive outcomes across both operating and financial levels. The completion of new projects has contributed to a steady improvement in our operating income and funds from operations (FFO). Demand for modern space has primarily come from tenants from the sector of light manufacturing, who tend to engage in longer-term contracts. This trend is evident in new contracts we have signed this year, with the average lease term far exceeding 10 years. Simultaneously, the rapid growth of last-mile logistics combined with our conservative tenant selection approach has significantly bolstered our operational stability. This strategic alignment is mirrored by our focus on preparing modern spaces in the key warehouse markets of Poland and Germany, which are preferred by tenants and where we have an established and strong position with further potential for growth,” said Radosław T. Krochta, President of the Management Board of MLP Group S.A.
MLP Group is operating in the markets of Poland, Germany, Austria and Romania, where it is currently developing 23 logistics parks. Its strategic goal remains to expand the warehouse portfolio by developing big-box facilities and urban logistic projects. Since the beginning of this year, MLP Group has signed leases for approximately 175,000 sqm. At the end of September 2023, it had 1.07 million sqm of completed space. The vacancy rate was very low, at 4 percent. There was another 91,000 sqm or so under construction and in the pipeline, with a land bank development potential of over 1.8 million sqm. The average lease vault is seven years, with a retention rate close to 100 percent.
Continued strong demand for modern space, coupled with a limited supply of new facilities, has generated an increase in rents. In the third quarter of 2023, MLP Group recorded a 10.7 percent year-on-year rate of rental growth.
MLP Group continues to invest in new projects, both in its home market and abroad, mainly in Germany. “Our strategic focus is on the German market as a key direction for our expansion plans. Conditions prevailing across our western border are very good, marked by consistent demand for new warehouse space. Notably, the German economy remains resilient to geopolitical risks. In line with our expansion plans, we are poised to commence a second project near Berlin – MLP Spreenhagen. Additionally, we will soon launch the construction of our first urban logistics and business project in the Austrian market, MLP Business Park Vienna. Our robust pipeline includes several projects due for launch in the coming periods, including new developments in Idstein and Gelsenkirchen in Germany, acquisition of additional land plots in Hesse and North Rhine-Westphalia, and in the domestic market – in Zgorzelec, Poznań and Łódź,” said Radosław T. Krochta.
MLP Group maintains a sound liquidity position. Its financial stability was further enhanced this year by Aareal Bank, extending credit of EUR 63.5 million. In addition, MLP Group successfully placed EUR 29 million worth of bonds. MLP Group is very well-positioned to confront the current challenges. 100 percent of lease contracts are indexed with CPI for EUR without any cap (indexed once a year in February). All rentals are denominated in EUR or are directly expressed in EUR, which significantly reduces our exposure to the currency risk.
In keeping with its build & hold strategy, MLP Group retains completed logistics parks in its portfolio and manages them. All projects undertaken by MLP Group are distinguished by very attractive locations of the logistics parks, application of built-to-suit solutions, and support given to tenants during the lease term.
