News Article financial report investment MLP warehouse
by Property Forum | Investment

MLP Group reported performance figures for the nine months to 30 September 2022. The Group’s net asset value (NAV) went up 33%, to over PLN 2.4 billion (€498.5 million). The value of its investment properties also rose 33%, to more than PLN 4.5 billion (€958.2 million). Consolidated revenue improved 35% yoy, to €41.9 million, driven by an increase in the leased area and rental rates. Net rental income, on the other hand, rose 30% yoy, to PLN 145.6 million (€31.0 million). Operating profit rose 164%, to PLN 750.1 million (€160.0 million). In the first nine months of 2022, MLP Group generated PLN 526,1 million (€112.2 million) in net profit, a more than 2.6-fold improvement on the year before.

"We have reported another very successful period for our business. Despite a challenging environment, we have delivered excellent financial performance and lease results. Conditions in the warehouse sector remain stable, with continued healthy demand for storage space. Tenants seek to overcome supply chain issues through nearshoring / friend shoring, and by keeping higher stocks close to the markets they serve. This trend supports demand for new space. We have maintained significant portfolio stability at the Group level. Practically 100% of our space has been leased and we have a very good tenant mix, diversified both geographically and across industries. Our completed projects have a very low vacancy rate, close to 0%. In general, any space that becomes available is quickly taken up by new tenants. This gives us room for further rapid growth, also through partly speculative investments. To this end, we have secured an attractive land bank and signed numerous reservation agreements to purchase new land for further developments, both in Poland and abroad", said Radosław T. Krochta, President of the MLP Group S.A. Management Board.

Currently, the MLP Group is developing its operations on the Polish, German, Austrian and Romanian markets. The total space leased at the end of September 2022 was over 1 million sqm, having increased by over 125 thousand sqm year to date. The target capacity of the existing project portfolio exceeds 1.6 million sqm. The Group currently operates 22 logistics parks in Poland and abroad. Its strategic objective remains to expand the warehouse space portfolio by developing Big Box buildings and urban logistics projects.

‘We are fully hedged against various risks, including the prevailing high prices. Under contracts we have signed with tenants, our rental rates for commercial properties are indexed automatically by HICP. As our rents are additionally denominated in the euro, we are also resilient to currency risk. In addition, almost 100% of our borrowings are IRS hedged for the next five years, resulting in limited interest rates exposure. As a result, we feel very safe in these uncertain times,’ added Radosław T. Krochta, President of the MLP Group S.A. Management Board.

The Group is making consistent progress on its strategic project to mount rooftop solar PV systems at its existing and new logistics parks. By the end of this year, the solar capacity of its domestic projects should reach about 6.3 MWp. Rooftop solar panels are also mounted at the Group’s foreign parks. Green energy generated by these systems will be used primarily for internal consumption, while also providing an additional stream of future revenue. The aim is to have 80% of the Group’s projects BREEAM certified at the Excellent or Very Good level, and to secure DGNB Gold or Platinum certificates on the German and Austrian markets. The net-zero carbon footprint is to be achieved within the next two to three years.