MLP Group achieves sales growth of 34

• Sales revenue amounts to EUR 79.7 million, + 34 % compared to the previous year
• Value of investment property increases to EUR 1 billion, + 11% compared to 31 December 2022
• Net asset value (NAV) increases to EUR 551 million, + 3% compared to 31 December 2022
• Net asset value (NAV) per share is EUR 23, + 3% compared to 31 December 2022
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) excluding revaluation amounts to EUR 39.5 million, + 37% compared to 31 December 2022
• Operating result (funds from operations - FFO) amounts to EUR 20.6 million, + 11% compared to 31 December 2022
• Net loss amounts to EUR 11.5 million
• In 2023, rental agreements were signed for space of approx. 276,000 m² (incl. binding LOI for 13,300 m²)
• BREEAM/DGNB: almost 80% of the entire property portfolio has been certified as "Very good", "Excellent" or "Gold"

Caption: Radosław T. Krochta, President and Chief Executive Officer of the MLP Group. Copyright: MLP Group.

The MLP Group, a developer, owner and manager of high-quality commercial, industrial and logistics parks specialising in brownfield sites, achieved an excellent result in 2023, both from an operational and financial perspective. This is due to a strong performance in the letting of commercial and logistics space in all markets. This makes the MLP Group one of the fastest growing developers in Europe, combining conservative tenant acceptance criteria with rapid business growth.

Last year, the developer increased its consolidated income by 34% to EUR 79.7 million. This was due to an increase in let space combined with higher rents. Rental income from investment properties rose by 36% to EUR 44.4 million. The value of investment property increased by 11% to more than 1 billion euros. At the same time, earnings before interest, taxes, depreciation and amortisation (EBITDA) excluding revaluation of investment properties rose by 37 % to EUR 39.5 million. The MLP Group thus continues to enjoy a good financial position and a secure capital structure that enables the realisation of its long-term strategic goals.

"Despite the volatile economic situation and the sharp rise in inflation, the figures from 2023 have exceeded our expectations. Our operating result (funds from operations - FFO) rose to EUR 20.6 million. This corresponds to an increase of 11% compared to the previous year. We also recorded strong like-for-like rental growth of 7.7% for our entire portfolio over the course of the year. After concluding rental agreements for around 276,000 m² of space in 2023, consolidated sales rose by 34% year-on-year to EUR 79.7 million. Overall, we have one of the most modern pan-European portfolios with around 70% logistics and commercial properties developed in the last five years," comments Radosław T. Krochta, CEO of the MLP Group S.A.

Strong letting performance

The MLP Group is currently represented with 23 parks in Poland, Germany, Austria and Romania. Its strategic goal remains to expand its portfolio through the continuous development of logistics and urban commercial parks.

In 2023, the developer signed lease agreements for a total of around 276,000 m² (including binding LOIs for 13,300 m²). The new buildings with a total area of around 106,000 m² were mainly completed in Poland. At the end of last year, the MLP Group had a total of 1.1 million m² of developed space, 95 % of which was let. With around 200 tenants, the MLP Group has a broad international tenant spectrum comprising renowned companies. The top 10 tenants account for 36 % of annual rental income. At the end of 2023, the space to be redeveloped totalled around 182,000 m² and the development potential of the portfolio was almost 1.9 million m². In addition, the developer has concluded reservation agreements for the acquisition of new land with an area of around 200 ha, which will enable it to develop a further 800,000 m² of new space. Strong like-for-like rental growth of 7.7% was recorded in 2023.

Expansion of city centre projects

"Demand for logistics and commercial space remains high in all markets in which we operate. In addition, the combination of nearshoring, the influx of Asian investors and the increasing resilience of supply chains is expected to further boost demand. We therefore expect the combination of high demand and limited supply to lead to a further increase in rental prices. In 2024, we will realise a number of major projects - including properties in urban locations in Vienna, Gelsenkirchen, Łódź and Poznań as well as logistics and commercial parks in Poznań, Idstein and Berlin-Spreenhagen. These projects will not only make a significant contribution to our rental income, but also to our net asset value (NAV) in 2024. While we have focussed on preparing the projects in recent years, it is now time to reap the rewards of our work," said the CEO.

The MLP Group's capital expenditure (CAPEX) will amount to around EUR 190 million in 2024, of which around 25 % is earmarked for the acquisition of new properties. Around 200,000 to 300,000 m² of the new space is to be let in the same period. The continued strong development on the German market is a central point in the MLP Group's strategy. The plan is to strengthen and expand its presence in the regions where it has already gained a foothold - for example in the Ruhr region, Brandenburg and Hesse.

One of the biggest tasks for 2024 is the launch of new logistics developments (with an area of around 200,000 m²), which are to be realised on sites in Wrocław, Łódź, Zgorzelec, Poznań, Pruszków and Idstein.

Another focus in the current year and beyond will be city centre projects with strong growth potential, high profitability and high resilience to economic downturns. The aim is to equalise the value of city logistics properties with that of regular logistics properties by 2028. Urban projects currently in the pipeline or under construction in Poznań, Łódź, Vienna and Gelsenkirchen will have a total area of around 165,000 m².

Good financial position enables further strong growth

The MLP Group has a solid financial position with fixed borrowing costs and a conservative repayment profile. This enables the developer to finance its growth ambitions. In view of the current geopolitical situation and the high volatility in the economy, it is well prepared for the current challenges.

All rental agreements are subject to indexation according to the consumer price index. All rents are also denominated in euros or expressed directly in euros, which reduces currency risk. Almost 80 % of the loans are hedged with IRS for the next 4 years, which results in a limited interest rate risk. The MLP Group also has a strong cash flow position. Last year, the LTV (loan-to-value) ratio was 38.6 % and the interest cover ratio was 2.3x ICR. The operating result (funds from operations - FFO) totalled EUR 20.6 million, an increase of 11% on the previous year.

As part of its Build & Hold strategy, the MLP Group holds completed parks in its portfolio and manages them. All 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 551 million (Q4/2023). 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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