MLP Group’s completed area exceeds 1 million sqm
• Net asset value (NAV) rose to PLN 2,516 million, up 1% qoq
• Revenue amounted to PLN 94.7 million, up 51% yoy
• EBITDA without revaluation reached PLN 47.8 million, up 59% yoy
• FFO amounted to PLN 29.4 million, up 48% yoy
• Net profit came in at PLN 26.1 million
• Area built: 1.02 million sqm
• Development potential: 1.74 million sqm
• Installed capacity of solar PV panels: 3.9 MWP
MLP Group enjoys a very good financial standing and a safe capital structure enabling the implementation of long-term strategic goals. This is confirmed by the results announced for the first quarter of 2023. During the period, consolidated revenue rose 51% yoy, to PLN 94.7 million, driven by increases in both leased area and rental rates. At the same time, the Group’s EBITDA (without revaluation of investment properties) improved by 59%, to PLN 47.8 million. In the first quarter of 2023, MLP Group earned a net profit of PLN 26.1 million. Since the beginning of the year, the Group’s net asset value (NAV) has gone up 1%, to more than PLN 2.5bn. The value of investment property also rose 1%, to close to PLN 4.5bn.
MLP Group is developing its operations in Poland, Germany, Austria and Romania. The Group’s existing portfolio comprises 21 logistics parks. Its strategic goal remains to expand the warehouse portfolio by developing big-box facilities and urban logistic projects. In the first three months of 2023, MLP Group handed over projects with a total area of nearly 30 thousand sqm. At the end of the quarter, the Group had a total of 1.02 million sqm of completed area, with a further 61 thousand sqm under construction or in the pipeline. The development potential of the existing landbank is close to 1.8 million sqm.
The conditions in the warehouse sector remain favourable. The sector’s growth is mainly driven by customers in the light manufacturing and logistics industries. The market also benefits from the trend to relocate production from Asia to Europe (nearshoring).
“We maintain our business in a sound and stable condition at all times. We are consistently developing new projects, steadily increasing the area offered, with the vacancy rate near zero. We see continued high demand for warehouse space, although the duration of new contract negotiations is now longer. On the other hand, we are seeing a much smaller supply of new projects in all European markets. However, the lower number of projects has a stabilising effect on construction costs. All these are positive factors bolstering our growth. We have launched speculative projects in selected markets and assume that most of them will be leased before development is completed. At present our focus is on launching a few city logistics construction projects. They reflect our strategic growth direction,” said Radosław T. Krochta, President of the MLP Group S.A. Management Board
“We have a sound financial standing and have secured financing for our operations. 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 LTV ratio, enabling us to deliver our long-term strategic goals. High inflation is not a problem for us, because all of our lease contracts provide for automatic rent indexation by the CPI. All rents are concurrently denominated in the euro or are directly expressed in the euro, which reduces our exposure to currency risk, „added Radosław T. Krochta.
MLP Group also maintains a strong cash-flow position. The loan to value ratio(LTV) in the first quarter of 2023 was 34.5%, and the interest coverage ratio (ICR) was 3.0x. The debt maturity ratio was long (5.2 years). FFO (funds from operations) amounted to PLN 29.4 million, up 48% yoy.
In keeping with its build & hold strategy, MLP Group retains completed logistics parks in its portfolio and manages them. 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.