Business figures Q1/2024: Steady progress towards strategic goals

• Sales revenue totals € 22.3 million in Q1/2024 (+11% compared to the previous year), including rental income of € 12.7 million (+22% compared to the previous year)
• Value of investment properties increases to EUR 1.1 billion (+2% compared to 31 December 2023)
• Net asset value (NAV) amounts to EUR 561 million (+2% compared to 31 December 2023)
• Net asset value (NAV) per share is EUR 23.4 (+2% compared to 31 December 2023)
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) excluding revaluation amount to EUR 11.6 million (+ 14% compared to the previous year)
• Operating result (funds from operations - FFO) amounts to EUR 5.1 million (- 18% compared to the previous year)
• Net profit of EUR 3.8 million
• Developed space: 1.1 million m²
• Space under development: 0.2 million m², over 32% already pre-let
• Development potential: 1.9 million m²

Caption: Radosław T. Krochta, Chairman of the Executive Board of the MLP Group S.A. Copyright: MLP Group.

The MLP Group, a developer, owner and manager of high-quality commercial, industrial and logistics parks specialising in brownfield sites, has a stable financial position and a secure capital structure, which enables the project developer to implement its long-term strategic goals. This is confirmed by the business figures published for the first quarter of 2024. Consolidated revenue in the defined period totalled EUR 22.3 million, with rental income increasing by 22% year-on-year to EUR 12.7 million.

The increase in rental income is primarily attributable to income from the space completed between the first quarter of 2023 and the first quarter of 2024. Comparable rental income rose by 5.4% due to rent indexation and by 3.3% due to the renegotiation of expiring rental agreements, resulting in organic growth of 8.7%.

In the first quarter of this year, the MLP Group generated a net profit of EUR 3.8 million. The net asset value (NAV) has risen to EUR 561 million since the beginning of the year. The value of investment property also rose to EUR 1.1 billion.

The decline in funds from operations (FFO) in the first quarter of 2024 is primarily due to an increase in interest expenses for new bank loans of EUR 1.1 million and bond interest of EUR 800,000. This was partially offset by the fact that income tax payments were EUR 400,000 lower.

Meanwhile, the MLP Group is expanding its activities in Poland, Germany, Austria and Romania. The company's existing portfolio currently comprises 23 parks, with one strategic goal being the continuous expansion through the development of logistics and urban commercial parks.

At the end of the first quarter of 2024, the MLP Group has a total of 1.1 million m² of completed space. A further 200,000 m² are under construction and in preparation. The development potential on the company's own properties amounts to around 1.9 million m².

"In the ten years since our first listing on the Warsaw Stock Exchange (WSE), we have achieved strong growth and established ourselves among European developers. We have a modern and high-quality portfolio of parks across Europe - 70% of our projects have been completed in the last five years. During this period, our turnover and lettable area have tripled. In addition, our net asset value at the end of the first quarter of this year is more than four times higher than at the time of our IPO," emphasises Radosław T. Krochta, CEO of the MLP Group S.A

"We are currently focussing on the consistent implementation of our recently presented strategic goals for the years 2024 to 2028. During this period, we aim to double our revenue to EUR 183-215 million, triple our EBITDA (excluding revaluation) to EUR 112-132 million and double our net asset value per share to EUR 48-56. Demand for modern space is stable in all our markets. The marketing of our projects in Vienna, Schalke, Idstein, Spreenhagen and other projects in Poland is therefore progressing as planned. These projects bring us a good deal closer to our goals," adds Radosław T. Krochta.

The MLP Group's focus in 2024 is on the development of several flagship projects. The developer is realising urban projects (MLP Business Park) in Vienna, Gelsenkichen-Schalke, Łódź and Poznań. Logistics properties are currently being developed in Poznań, Idstein and Spreenhagen. They will make a significant contribution to increasing rental income and the net asset value. The MLP Group is planning to let 200,000 to 300,000 m² of new space in the current year.

The developer also has a strong cash flow position. The LTV (loan-to-value) ratio was 38.3% in the first quarter of this year, while the interest coverage ratio (ICR) was 2.1x. The liabilities have a long term to maturity of 4.3 years, which guarantees a high degree of security when repaying the debt.

As part of its build & hold strategy, the MLP Group holds and manages completed parks in its portfolio. The projects are characterised by attractive locations, speculative development and tenant support over the entire rental period.

About MLP Group S.A.:

The MLP Group is a developer, owner and manager of high-quality commercial, industrial and logistics parks in Poland, Germany, Austria and Romania, specialising in brownfield sites. The company currently owns and manages a property portfolio of 23 parks in four countries with a total size of approx. 1.9 million m² of existing and approved rental space ready for construction. The net asset value amounts to around EUR 561 million (Q1/2024). The MLP Group has been listed on the Warsaw Stock Exchange WSE since 2013 (ISIN: PLMLPGR00017).

With offices in Warsaw, Munich, Cologne, Vienna and Bucharest, the company offers customised and sustainable real estate solutions for users from various sectors such as retail, e-commerce, manufacturing, automotive and logistics.

The MLP Group was founded in Warsaw, Poland, in 1998. The company has been represented on the German market since 2017 and currently operates five projects in Berlin, Unna, Gelsenkirchen and Idstein. Further projects in the pipeline in Germany and Austria are planned in the regions of Berlin, the Ruhr area, Düsseldorf, Cologne, Frankfurt, Munich and Vienna.

Further details about the MLP Group can be found at www.mlpgroup.com
 
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