MLP Group records continuous growth

Business figures for the first three quarters of 2023:

• Operating result: EUR 58.7 million, +40% compared to the previous year
• EBITDA without revaluation: EUR 29.7 million, + 38 % compared to the previous year
• Value of investment property: €992.7 million, +5% compared to 31 December 2022
• Net asset value (NAV): €541.3 million, +2% compared to 31 December 2022
• Net asset value per share: EUR 22.6, + 2% compared to 31 December 2022
• Operating result (funds from operations - FFO): EUR 16.0 million, +18% compared to the previous year
• Net profit: 5.7 million euros
• Rental agreements signed for over 175,000 m² of space in 2023
• BREEAM/DGNB: 85% of the entire property portfolio was certified as "Very good" or "Gold"

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

"Despite a difficult economic environment characterised by geopolitical challenges, we have achieved our strategic goals and maintained a stable tenant portfolio. Our strategic focus on growth has had a positive impact at both operational and financial level. Our operating result and funds from operations (FFO) have improved continuously thanks to the completion of new projects.

New space is in demand primarily from companies in the light industrial sector, which tend to sign longer-term contracts. This trend is reflected in the new contracts we have signed this year. The average lease term is well over 10 years. At the same time, the rapid growth in last-mile logistics combined with our conservative approach to tenant selection has strengthened our operational stability. This strategic orientation is also reflected in our focus on providing new space in the important logistics property markets of Poland and Germany, which are in demand among companies and where we have an established and strong position with further growth potential," says Radosław T. Krochta, CEO of the MLP Group S.A.

The MLP Group, a developer, owner and manager of high-quality commercial, industrial and logistics parks specialising in brownfield sites, is currently represented with 23 parks in Poland, Germany, Austria and Romania. Its strategic goal remains the expansion of its portfolio through the continuous development of logistics and urban commercial parks. The leases concluded since the beginning of 2023 cover a total area of around 175,000 m². At the end of September 2023, the developer had completed space of over 1.07 million m², with a low vacancy rate of 4 per cent. A further 91,000 m² was under construction or in the pipeline, bringing the development potential to more than 1.8 million m². The average lease term is seven years and the commitment rate is almost 100 per cent.

The persistently high demand for logistics and commercial space, combined with limited supply, has led to an increase in rents. In the third quarter of 2023, the MLP Group recorded rental growth of 10.7 per cent compared to the previous year.

The developer continues to plan the realisation of new projects in its home market of Poland as well as in other markets, particularly in Germany. "Our strategic focus is primarily on the German market, which plays a central role in our expansion plans. We find favourable conditions on the border between Poland and Germany, which is also reflected in the consistently high demand for logistics and commercial space. The German economy is also still resilient to geopolitical risks. In line with our expansion plans, we are therefore about to launch a second project near Berlin with MLP Spreenhagen. In addition, we will soon be starting construction of our first urban business park in Austria, the MLP Business Park Vienna. We also have a well-filled pipeline with several projects due to start in the coming months. These include the developments in Idstein and Gelsenkirchen and the purchase of further properties in Hesse and North Rhine-Westphalia as well as on the domestic market in Zgorzelec, Poznań and Łódź," says Radosław T. Krochta.

The MLP Group has a solid financial position. Financial stability was further strengthened this year by a loan from Aareal Bank totalling
EUR 63.5 million. In addition, bonds totalling EUR 29 million were placed on the market. The developer is thus well positioned for the current challenges. All rental agreements are subject to indexation according to the consumer price index for euros without an upper limit (indexation once a year in February). All rents are also denominated in euros or expressed directly in euros, which reduces our currency risk.

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, the use of built-to-suit solutions 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. 1.8 million m² of existing and approved rental space ready for construction. The net asset value amounts to approx. EUR 541.3 million (Q3/2023). 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, production, 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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