MLP Group: Completed floor space exceeds 1 million m²

• Value of investment property increases to EUR 960.1 million: +1% compared to the previous quarter
• Net asset value (NAV) amounts to EUR 538.2 million: +1% compared to the previous quarter
• Sales revenue totalled EUR 20.1 million: 51% increase compared to the previous year
• EBITDA without revaluation reaches EUR 10.2 million: an increase of 59% compared to the previous year
• Funds from operations (FFO) totalled EUR 6.3 million: an increase of 48% compared to the previous year
• Net profit: EUR 5.6 million
• Developed space: 1.02 million m²
• Development potential: 1.74 million m²
• Installed output of PV solar modules: 3.9 MWP

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 that enables the project developer to implement its long-term strategic goals. This is confirmed by the results published for the first quarter of 2023. In the defined period, consolidated revenue rose by 51 per cent to EUR 20.1 million, which is attributable to an increase in both let space and rental prices. At the same time, the MLP Group's EBITDA (excluding revaluation of investment property) improved by 59 per cent to EUR 10.2 million. In the first quarter of 2023, the company generated an overall net profit of EUR 5.6 million, while the Group's net asset value (NAV) has risen by 1 per cent to over EUR 538.2 million since the start of the year. The value of investment property also rose by 1 per cent to just under EUR 960.1 million.

Expansion of activities

Meanwhile, the MLP Group is expanding its activities in Poland, Germany, Austria and Romania. The company's existing portfolio currently comprises 21 parks, with the aim of continuous expansion through the development of logistics and urban commercial parks. In the first three months of 2023, the MLP Group handed over projects with a total area of almost 30,000 m²; at the end of the quarter, the Group had a total of 1.02 million m² of completed space, with a further 61,000 m² under construction or in the pipeline.

The development potential of the existing properties is almost 1.8 million m². According to the developer's estimates, the conditions for further positive development in the logistics sector remain favourable. While growth in the sector is mainly driven by customers from the light industrial and logistics services segments, the market is benefiting from the efforts of many companies and manufacturers to relocate production from Asia to Europe as part of near-shoring strategies.

"We are always keeping our business in a stable condition, continuously developing new projects and increasing the amount of space available, with a vacancy rate close to zero. We are seeing continued high demand for warehouse space, even if the duration of new contract negotiations is now longer. On the other hand, we are seeing a significantly lower supply of new projects on all European markets, which is also having a stabilising effect on construction costs. These are all positive factors that support our growth. We have launched speculative projects in selected markets and expect most of them to be let before the development is completed. We are currently focussing on the launch of several city logistics construction projects that reflect our strategic growth orientation," says Radosław T. Krochta, CEO of the MLP Group S.A.

Stable capital structure for further growth

"We have a solid financial position and have secured the financing of our activities. In the first three months of 2023, we recorded very strong growth in revenue, FFO and EBITDA. We also have a secure capital structure, including a low loan-to-value ratio, which enables us to achieve our long-term strategic goals. High inflation is not a problem for us, as all our rental agreements include automatic indexation of rents by the consumer price index

As part of its Build & Hold strategy, the MLP Group retains completed parks in its portfolio and manages them. All projects are characterised by attractive locations, the use of built-to-suit solutions and tenant support during the 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 21 parks in four countries with a total size of approx. 1.74 million m² of existing and approved rental space ready for construction. The net asset value amounts to approx. EUR 538.2 million (Q1/2023). 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 projects at six locations in Berlin, Unna, Schwalmtal/Mönchengladbach, Gelsenkirchen, Idstein and Trebur. 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