MLP Group achieves net profit of EUR 65.3 million

• Revenue amounts to EUR 43.5 million (+8% compared to the first half of 2023)
• Value of investment property increases to EUR 1.1 billion (+12% compared to 31 December 2023)
• Net asset value (NAV) amounts to EUR 620.8 million (+ 13% compared to 31 December 2023)
• Net asset value (NAV) per share is EUR 25.9 (+ 13% compared to 31 December 2023)
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) excluding revaluation amount to EUR 23 million (+9% compared to the first half of 2023)
• Operating result (funds from operations - FFO) amounts to EUR 9.5 million (-25% compared to the first half of 2023)
• Net profit of EUR 65.3 million
• 161,000 m² of space let or to be let under leases signed in the first half of 2024 or expected to be signed by September 2024
• Almost 80% of the portfolio certified with BREEAM "Very good" or "Excellent" or a DGNB equivalent

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, continues to successfully adapt to the ever-changing market landscape and achieve sustainable growth in its key locations. In response to the increasing demand for logistics and commercial space and emerging market trends, the developer is consolidating its market position through strategic investments and a flexible approach to portfolio management.

The logistics property asset class is currently performing well. After a phase of rising yields, a decline is now expected due to falling interest rates. Nevertheless, demand for logistics and commercial space is recovering across Europe, particularly in the second quarter of 2024. This is mainly due to tenants from the light industrial sector, who are predominantly from Asia. They generally prefer long-term leases with a minimum term of ten years and are prepared to pay higher rents. The accelerating trend towards nearshoring is also boosting demand, as many local companies intend to relocate some of their state-of-the-art production facilities to their home country or neighbouring countries. At the same time, the increased demand is being met by a limited supply of new space, which is having a positive impact on rental prices. Construction costs have practically fallen back to pre-corona levels, which increases the profitability of ongoing projects.

"The first half of 2024 was very successful for us and we want to accelerate our growth in the second half of the year. The focus remains on expansion in urban locations in our key regions of Poland, Germany, Austria and Romania. By acquiring first-class locations in metropolitan areas and expanding our portfolio, we are well positioned to drive our growth and strengthen our position on the market. We see the expansion of our city logistics portfolio as a key growth driver. We expect it to be an important cornerstone on the road to success. By 2028, city logistics projects should account for 30% of our total gross asset value," says Radosław T. Krochta, CEO of the MLP Group S.A.

In the first half of 2024, the consolidated revenue of the MLP Group increased by 8% year-on-year to EUR 43.5 million. Rental income increased by 16% to EUR 25.2 million. The value of investment property rose by 12 % to more than EUR 1.1 billion. At the same time, EBITDA (excluding revaluation) improved by 9 % to EUR 23 million.

The MLP Group's portfolio generates stable cash flows and has an average contract term of over 7.8 years. The international client base is made up of around 195 tenants, including global blue chip companies with good credit ratings. A stable financial position and a secure capital structure enable the project developer to realise its long-term strategic goals. The MLP Group is currently finalising the credit rating process, which should facilitate access to the European and global debt capital markets and thus improve project financing options.
The space let or to be let under leases signed in the first half of 2024 or in the process of being signed by September 2024 comprises a total area of around 161,000 m². The majority of the leases planned for this year are expected to be signed in the second half of 2024 (primarily in the third quarter).

"Until the end of the year, we will focus on letting space primarily in Vienna, Gelsenkirchen-Schalke, Idstein near Frankfurt am Main, Berlin-Spreenhagen, Łódź and Poznań (both in Poland). Our aim is to significantly increase EBITDA and rental income. We are also expanding our portfolio, particularly in central urban locations. We are also planning to acquire additional properties in North Rhine-Westphalia, Saxony-Anhalt, Rzeszów and Warsaw (both in Poland) this year, thereby further strengthening our presence in the markets," emphasises Radosław T. Krochta.

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 620 million (Q2/2024). 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 on the MLP Group can be found at www.mlpgroup.com

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