MLP Group is still in a very dynamic growth phase, accelerating its foreign expansion, mainly on the German market which is viewed as strategic, as well as in Romania and Austria. It is also reinforcing its position on the domestic market.
The Group’s financial condition is excellent. We have a robust capital structure, supporting delivery of our long-term strategic goals, a land bank of attractively located plots, and highly qualified management. Coupled with the continuing high demand for modern warehouse space, those factors should contribute to the achievement of MLP Group’s long-term strategic objectives – said Radosław T. Krochta, President of the MLP Group S.A. Management Board.
Active in the modern warehouse space construction segment, the Group earned PLN 140.0m in revenue in 2019, which is on a par with the figure posted last year. However, factoring in rental income, i.e. MLP Group’s main revenue stream from its core business, the Group reported growth of 14% year on year, supported by the placement in service of finished areas in the MLP Czeladź, MLP Pruszków II, MLP Lublin, MLP Poznań West and MLP Bucharest parks. At the same time, MLP Group earned PLN 180m in operating profit, up 19% year on year. This strong improvement was due to revaluation gains on investment property, which amounted to more than PLN 120m. Net profit improved by 40% year on year, to PLN 129.4m. At the end of 2019, MLP Group’s equity (net assets) stood at PLN 938.6m, an increase of 15.1% over the end of 2018, while the value of its investment property rose 25%, to PLN 1.81bn.
The area of the Group’s projects in the implementation phase and in the pipeline totalled 237,800 m2 in 2019, of which 74,900 m2 was completed. As a result, as at the end of 2019 the Group offered approximately 587,000 m2 of finished modern warehouse space. The vacancy rate was very low, at approximately 2.6%. Concurrently, the development potential of the land held by the Company is in excess of 1.3m m2, which means the leased area may double in the future. 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 Group’s strategic objective for 2020 is to continue growing its warehouse space assets.
We see great potential for further growth. The economic uncertainty due to the spread of the coronavirus is going to considerably increase sales of online platforms in the medium- and long-term perspective, at the expense of brick-and-mortar stores, driving a strong growth in demand for warehouse space. Because of the coronavirus threat, consumers spend much more time at home, which will translate into a dynamic expansion of the e-commerce sector. Despite that, the growing purchasing trend in this area is a huge logistics challenge – added Radosław T. Krochta.
In keeping with its build & hold strategy MLP Group’s logistics parks are retained in its portfolio upon completion. Tenants appreciate this approach because they get to cooperate on a constant basis with the very same people who are responsible for the high quality of the services rendered.
