This year the MLP Group intends to expand its industrial space by nearly 40%
In Q1 2017, the MLP Group, a modern industrial property developer, generated PLN 23.2 million in revenues. That signifies 1% growth in comparison with the corresponding period of the previous year, despite the significant appreciation in the Polish zloty (all lease fees are denominated in euro). The Group recorded a PLN 15.9 million net loss in comparison with a PLN 3.9 million net profit in the same period of the previous year. This loss ensues chiefly from the appreciation of the Polish zloty against the euro. At the end of March 2017 the MLP Group held assets worth PLN 1.16 billion and its net asset value (equity) was equal to PLN 661.2 million. These figures are similar to the ones reported at the end of the past year.
“Our operations are developing very well. The nearly 5% depreciation in the PLN-EUR exchange rate from 4.42 to 4.22 exerted a decisive impact on the net result. As the value of our portfolio is PLN 960 million, this translates into an adverse impact due to the revaluation of investment properties totaling PLN 38.6 million, with PLN 44.5 million of that being negative FX differences resulting from FX movement. This is related to the fact that real estate valuations are drawn up in euro, and then they are translated into Polish zloty for the purposes of financial reporting. However, this does not have any impact on the condition of our business. The value of our investment properties denominated in euro rose by 3% in Q1 of this year to EUR 225.1 million. To avoid the impact exerted by FX volatility, the Group will consider whether it should switch to reporting in EUR as all its operations are conducted in this currency”, emphasizes Radosław T. Krochta, President of the Management Board of MLP GROUP S.A.
The Group will complete the construction of facilities with an area of approximately 115,000 square meters by the end of 2017. “Completing these facilities will translate into nearly 40% growth in the industrial space we have built. That represents extensive potential to enhance our results in subsequent periods. We also have other investment projects in progress that will drive the Group’s continued steady value growth”, states Radosław T. Krochta.
Currently, the Group operates eight logistics parks in Poland: MLP Pruszków I, MLP Pruszków II, MLP Poznań, MLP Lublin, MLP Teresin, MLP Wrocław, MLP Czeladź and MLP Gliwice. Based on a development agreement, the Group is also responsible for the commercialization of the MLP Bieruń logistics park, sold in 2015. In addition, the Group has reservation agreements to purchase new plots of land for its planned logistics parks. This means that the current and potential real estate portfolio managed by the MLP Group consists of a total of eleven operating logistics parks located in Poland.
MLP is also planning to build its first logistics park on the German market in the town of Unna near Dortmund. The construction of a logistics park in Romania in the vicinity of Bucharest is also under preparation.
