Echos of Q1

The company’s distributable profit came to EUR 16 mln, 3.2 pct higher than forecast. At the end of the period the value of the company’s asset portfolio was estimated at EUR 1.5 bln. It consisted of 10 retail properties, 9 office blocks and two projects under construction in Warsaw. “We are pleased with the results generated in Q1 – they are in line with our expectations and even better in some cases,” says Hadley Dean, the president of EPP. “Poland’s Solid macroeconomic foundation and the introduction of the 500+ programme has increased purchasing power in cities and stimulated the growth in retail,” he adds. EPP has assets of EUR 679 mln, equivalent to EUR 1.16 per share. Over the period the footfall across the company’s retail portfolio rose by 4.6 pct y-o-y and sales increased by 7.5 pct. The vacancy rate decreased to 1.26 pct for retail and to 3 pct for office properties. “We are on the right path to becoming a company that exclusively invests in retail properties. Our purchasing strategy is to focus on assets in excellent locations, that dominate their regions, which makes it possible for us to make effective use of our portfolio and adjust it to our tenants’ needs,” argues Hadley Dean. EPP has finalised the purchase of two Warsaw development projects including the Galeria Młociny mall, which is already 55 pct leased and scheduled for completion in Q2 2019. The centre will have an area of 82,000 sqm. The company has also purchased the Zakopianka shopping centre in Kraków at a cost of EUR 53.3 mln, as well as the third stage of A4 Business Park office centre in Katowice and three retail centres: Galeria Twierdza in Kłodzko, Galeria Twierdza in Zamość and Galeria Wzorcownia in Włocławek at a cost of EUR 141.60 mln.

EPP is also extending centres it already holds including the Galaxy shopping centre in Szczecin by 15,150 sqm is in progress which will result in an estimated rise in its net operating profit of EUR 3.1 mln. The new section of Galaxy will be opened in November this year and is 80 pct leased. Outlet Park Szczecin will be extended by 3,800 sqm in September 2017. A total of 118 stores should increase the company’s net operating profit by EUR 708,000. The company raised EUR 150 mln in a share issue after the closure of Q1, with the offer being oversubscribed.