MLP Group delivers net profit of PLN 28.2m in Q3 2020 vs PLN 40.6m year earlier
Despite the ongoing coronavirus pandemic, MLP Group has been consistently expanding its warehouse property portfolio. The Group’s strategic goal remains business expansion in Poland and Germany and further growth in Austria and Romania.
“The results we achieved in the period are very strong. So far, we have not observed any major impacts of the pandemic on our financial position or operations. We can also see that tenants’ interest in warehouse space remains considerable. As expected, our German business is growing in importance. In the period under analysis, it accounted for one-third of our aggregate net profit, and its contribution is expected to increase. Among the projects we have recently started is a modern MLP Business Park Berlin,” said Radosław T. Krochta, President of the MLP Group Management Board.
In the first three quarters of 2020, MLP Group generated revenue of PLN 136.4m, up 34% year on year, and a net profit of PLN 149.3m, up 53% year on year. In the third quarter alone, MLP Group posted a net profit of PLN 28.2m on revenue of PLN 52.3m. The respective figures for the corresponding period of 2019 were PLN 40.6m and PLN 34.7m. As at the end of September 2020, MLP Group’s equity (net assets) stood at PLN 1.08bn, representing an increase of 15% over the end of 2019. The value of its investment property rose 23%, to PLN 2.23bn.
In the first nine months of 2020, MLP Group signed new lease contracts for more than 93,000 m2 in aggregate. As a result, leased area (including projects under construction and in the pipeline) increased to approximately 800,000 m2 as at the end of September 2020. As at the end of the third quarter, nearly 90,000 m2 of space was under construction and in the pipeline. Currently, the total development potential of the land held is close to 1.3m m2. MLP Group owns land plots and has signed a number of reservation agreements to purchase new land for planned logistics parks in Poland, Germany and Austria.
The warehouse market in Poland proves very resilient to the impact of the COVID-19 pandemic. According to market data, in the third quarter of 2020 the total supply of modern warehouse space in Poland exceeded 20m m2, of which almost 700,000 m2 was the space delivered to the market in the third quarter alone. At the end of the period under review, the volume of space under construction was over 1.5m m2, only slightly less than a year earlier.
“The outlook for the industry is good. Compared with the entire market, our growth rate is only slightly lower than in 2019, when we did not have to deal with the consequences of the coronavirus pandemic. Any further development of the industry will depend on the economic situation in Europe and globally, the growth rate of e-commerce and, most importantly, the investment appetite of businesses. Growth of our operations in Poland and Germany remains the priority,” Radosław T. Krochta added.
In keeping with its build & hold strategy, MLP Group retains completed logistics parks in its portfolio and manages them independently. All projects undertaken by MLP Group are distinguished by very attractive locations of the logistics parks, application of built-to-suit solutions, and support given to tenants during the lease term.
