MLP Group has published its 2022 performance figures. The Group’s Net Assets Value (NAV) went up 37%, to just under PLN 2.5 billion (€532.6 million). The value of its investment properties rose 31%, to more than PLN 4.4 billion (€945 million). Consolidated revenue improved 39% yoy, to PLN 279.1 million (€59.5 million), driven by an increase in leased area combined with higher rental rates. Rental income from investment properties increased by 31%, to PLN 152.9 million. At the same time, the Group’s EBITDA (without revaluation of investment properties) improved by 47%, to PLN 135.1 million (€28.8 million). Last year, MLP Group earned PLN 422.4 million (€90.1 million) in net profit.
MLP Group is developing its operations in Poland, Germany, Austria and Romania. The Group’s existing portfolio comprises 21 logistics parks. Its strategic goal remains to expand the warehouse portfolio by developing big-box facilities and urban logistics projects.
In 2022, MLP Group signed leases for 235 thousand sqm of space. New completions with a total area of 226 thousand sqm were located mainly in Poland and Germany. At the end of last year, the Group had a total of 1 million sqm of built space, with a further 119 thousand sqm under development or in the pipeline. The development potential of the Group’s existing landbank is close to 1.8 million sqm. In addition, the Group has reservation agreements to purchase new plots with an area of some 200 hectares, allowing it to develop another 1 million or so sqm of new space.
High occupier demand for warehouse space across all markets where MLP Group operates is driven mainly by the trend of near-shoring, continuing e-commerce demand and restructuring of supply chains. Other key drivers of demand for logistic space include low availability of vacant space and no signs that supply and demand will come into equilibrium in the short term. Rents are likely to continue the growth course.
The Group intends to continue its strong development in Germany. It plans to strengthen and expand its presence in new key locations, but also in the regions it already presents, i.e. the Ruhr area, Brandenburg and Hessen land. It also expects to strengthen its foothold on the Austrian market and is looking to enter the Benelux countries soon. The Polish market remains crucial and MLP Group will continuously increase offers in key logistics regions. According to the strategy, capital expenditure (CAPEX) in 2023 will amount to about €215 million, of which about 30% will be allocated to the purchase of new plots. This year the level of commercialisation is planned to go up by about 20%.
„We continue to see robust occupier demand combined with market vacancies close to historic lows in supply-constrained markets, We expect this contrast between positive demand and limited supply to drive further growth in rental levels. In 2022, we have leased 235 thousand sqm. Our total portfolio reached 1 064 million sqm with 98% occupancy across all our assets and new space under development amounts to 119 thousand sqm. In 2022, we successfully continued our efforts to diversify our assets (Big-box logistics and Urban Logistic), tenants and geographies. Further development on the German market is a key point of our strategy.
In 2023, we launch new projects in Germany, Austria and Romania, we are not slowing down our development in Poland. Tenants from the light industry and logistics sector were the largest tenants of our space in 2022. We expect this trend to continue – tenants from the light manufacturing and nearshoring sector will be the main source of lease agreements in 2023” – said Radosław T. Krochta, President & CEO of MLP Group
Considering the current geopolitical situation and high volatility in the economy, MLP Group is very well prepared for the current challenges. Proceeds of the latest share issue amounted to PLN 183.5 million.
„100% lease agreements indexed with CPI for €without any cap (indexed once a year in February). All rentals are denominated in €or are directly expressed in EUR, which significantly reduces our exposure to the currency risk. MLP Group has a very good financial standing and a safe capital structure enabling the implementation of long-term strategic goals. With the modest leverage (LTV at 33.1%), long-average debt maturity of 5.1 years, no near-term refinancing requirements and virtually entire debt at fixed or capped rates, we have the significant financial flexibility to continue to invest capital in the development and acquisition opportunities that offer the most attractive risk-adjusted returns” – added - Radosław T. Krochta, President & CEO of MLP Group
MLP Group also maintains a strong cash-flow position. LTV (loan-to-value) last year was at 33.1%, the highest interest coverage ratio at 3.3x ICR. The Group had a long debt maturity ratio of 5.1 years. FFO (funds from operations) amounted to PLN 86.8 million (€18.5 million), an increase of 59% yoy.
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