including rental income of PLN 54.8 million (+12% vs. 1Q 2023)
• Increase in the value of investment properties to PLN 4,589.9 million (+1% vs. 31 December 2023)
• Net Asset Value (NAV) at PLN 2,412.6 million (+1% vs. 31 December 2023)
• NAV per share: PLN 100.6 (+1% vs. 31 December 2023)
• EBITDA for 1Q 2024 excluding revaluation at PLN 50.2 million (+5% vs. 1Q 2023)
• Funds from Operations (FFO) for 1Q 2024 at PLN 22.0 million (-25% vs. 1Q 2023)
• Net profit for 1Q 2024: PLN 16.2 million
• Completed area: 1.1 million sqm
• Space under development: 0.2 million sqm, of which over 32% already pre-leased
• Development potential: 1.9 million sqm.
MLP Group maintains a strong financial position and a secure capital structure, driving the achievement of long-term strategic goals. This is highlighted by the first quarter 2024 results. Consolidated revenue reached PLN 96.2 million, with rental income rising 12% (1Q 2024/1Q 2023) to PLN 54.8 million.
The increase in rental income was primarily driven by revenue generated from spaces completed between 1Q 2023 and 1Q 2024 (+11%). Comparable rental income (like-for-like) rose by 5.4% due to rent indexation and by 3.3% from the renegotiation of expiring lease agreements. This was adjusted for the 8.1% appreciation of PLN against EUR (PLN is the reporting currency of MLP Group S.A.), resulting in a like-for-like growth rate of 0.6%.
In the first quarter of this year, MLP Group achieved a net profit of PLN 16.2 million. Since the beginning of the year, the Group has increased its Net Asset Value (NAV) to PLN 2.4 billion. The value of investment properties rose to PLN 4.6 billion.
The decline in Funds from Operations (FFO) in the first quarter of 2024 was primarily due to an increase in interest expense on new bank loans by PLN 4.3 million and bond interest by PLN 3.4 million. This was partially offset by the income tax paid being lower by PLN 1.6 million.
MLP Group is dynamically expanding its operations in the Polish, German, Austrian, and Romanian markets. The Group currently operates 23 logistics parks. The strategic goal remains to expand the warehouse offering through the development of urban logistics projects and Big Box buildings. At the end of the last quarter, the Group had a total of 1.1 million sqm of completed space. An additional 200,000 sqm was under construction and in preparation. The development potential on the owned land is approaching 1.9 million sqm.
‘Over the past decade, since our first listing on the Warsaw Stock Exchange (WSE), we have delivered a strong growth as a group and have emerged as a leading logistics platform in Europe. We boast one of the finest and most modern portfolios of logistics parks across Europe—70% of our projects have been completed in the last five years. During this period, our revenue and leased space have tripled. Furthermore, our Net Asset Value (NAV) at the end of the first quarter of this year was more than four times higher than at the time of the stock market debut,’ highlighted Radosław T. Krochta, CEO of MLP Group S.A.
‘We are currently focused on the steady execution of our recently outlined strategic goals for 2024-2028. We aim to double our revenue to EUR 183-215 million by 2028, triple our EBITDA (excluding revaluation) to EUR 112-132 million over the next five years, and double our Net Asset Value (NAV) per share to EUR 48-56 by 2028. Demand for modern warehouse space remains stable across all our markets. As a result, the commercialization of our MLP Business Park Vienna, Schalke, Idstein, Spreenhagen, and other projects in Poland is progressing as planned. These projects significantly advance us towards achieving our stated goals,’ said Radosław T. Krochta, CEO of MLP Group S.A.
In 2024, MLP Group will concentrate on executing several flagship projects. In urban logistics (MLP Business Park), the Group is developing centres in Vienna, Schalke (Gelsenkirchen), Łódź, and Poznań. For Big Box investments, projects are underway in Poznań, Idstein (Frankfurt am Main), and Berlin-Spreenhagen. They will significantly contribute to increasing rental income and the growth of Net Asset Value. This year, the Group plans to lease 200-300 thousand sqm of new warehouse space.
MLP Group maintains a robust cash flow position. In the first quarter of this year, the loan-to-value (LTV) ratio stood at 38.3%, and the interest coverage ratio (ICR) was 2.1x. The debt had a long maturity period of 4.3 years, ensuring a high level of security in debt servicing.
Aligned with its ‘build & hold’ strategy, MLP Group retains ownership of its logistics parks post-construction and manages them directly. The Group’s projects are distinguished by prime locations, built-to-suit solutions, and comprehensive tenant support throughout the lease term.
