by Property Forum | Investment

MLP Group has released its strategic goals to be met within the next three years to 2024. In line with the strategic plan, the period will see the company’s equity, or net asset value (NAV), double from €387 million in 2021 to €823 million at year end 2024. Significant growth in NAV is expected in 2022, driven mainly by the development of new projects in Germany and Austria, already fully secured.

At the same time, the target annual rate of organic growth to be pursued by MLP Group’s management is about 35%. The plan is to improve rental income from €33 million to €85 million between 2021 and 2024. The scale of the Group-wide business will be propelled strongly by growth on the German and Austrian markets, expected to generate €25 million in combined revenue by 2024. Revenue in Poland will grow over that time to €55 million (up from the current €32 million).

2024 is expected to witness first revenue streams coming in from the Benelux markets, regarded by MLP Group as further growth destinations in Western Europe. In Romania, the objective is to keep revenue on track to climb steadily from €1 million in 2021 to €3 million within the next three years. Rental income growth will be fuelled by new leases, an increase of rent rates on existing lease renewals, and a retention rate maintained at 99%.

The MLP Group management will seek to have EBITDA excluding revaluation triple to ca EUR 67 million in 2024. EBIT is expected to advance from €22 million in 2021, to €31 million in 2022 and €48 million in 2023.

To meet these strategic goals, MLP Group will incur a yearly CAPEX of €150 million–250 million, comprising land acquisition and property development expenditures. The CAPEX will be financed with banking loans, corporate debt, and the issue of ca. 2.6 million new shares (scheduled for 2022). MLP Group will continue its current ‘build and hold’ strategy, keeping the loan to value (LTV)ratio below 50%.

Concern for the environment features prominently in MLP Group’s further growth plans. The strategic vision is to hold class-A assets with a strong commitment to sustainability, 80% of the project portfolio to be BREEAM certified as Excellent or Very Good, or as DGNB Gold or Platinum (in Germany and Austria). Another objective is a net-zero carbon footprint to be achieved within two to three years.

MLP Group plans to develop roof-mounted solar PV systems. The aggregate capacity of PV systems installed at 11 logistic centres across Poland (covering a roof area of about 100 thousand sqm) is to reach 6.3MW by year-end 2022. PV panels will also be mounted at the newly built sites in Germany and Austria: MLP Business Park Berlin, MLP Unna and MLP Business Park Vienna. In 2023, the total power output will rise to 8MW. 2024 will see further PV deployment with a total capacity of 5MW, including 3MW in Poland and 2MW in Germany. Income from green energy generation is estimated by then at over €2.6 million annually.