CENTRAL EUROPE MLP sees 17 pct revenue boost in Q1
Warehouse & industrialIn Q1 its equity (net assets) also rose by 2 pct to PLN 1.23 bln, while its gross investment property grew by 6 pct to PLN 2.48 bln. MLP’s net profit, however, came in at PLN 16.1 mln – down from PLN 112.6 mln in the same period the year before. Its operating profit amounted to PLN 36.7m, down from PLN 191.9 mln.
For us, the beginning of this year was another good period. The successive waves of the coronavirus pandemic did not seem to have any discernible impact on the group’s financial condition. On the contrary, we posted a significant increase in revenue having delivered more modern warehouse space to tenants. We have maintained a very high occupancy level across our portfolio, with the vacancy rate kept well under 10 pct. All the development projects on our markets are running as planned.
Radosław T. Krochta, the president of the management board of MLP Group
MLP’s strategic goal remains to expand its business in Poland, as well as on the German, Austrian and Romanian markets. Particular focus is being placed on the development of urban logistics (small modules combining modern warehouse space with office space fitted out to a high standard). In a few years’ time, the company expects such assets to represent app. 30–40 pct of its property portfolio, in addition to its big-box and BTS facilities.
In the near future, we want to strongly accelerate our investment projects on the German and Austrian markets. We are currently completing the construction of a warehouse park in Berlin, with projects under way in Unna, Niederrhein and Vienna. Our land bank is being expanded at a vigorous pace. We intend to purchase more plots in Gelsenkirchen, Berlin, Leipzig, Stuttgart and a second plot near Vienna. We expect that in two to three years the value of our assets in Poland and those in Western Europe will be similar. We thus want to offset our activity on the Polish market with the business in Germany – a market that is both mature and safe, while remaining Europe’s largest market for warehouse space. We will, of course, continue on a fast-growth path in Poland: this year, we will purchase more plots in Wrocław, Poznań, Łódź and in the Warsaw area. This year we are also planning to purchase plots near Poland’s western border as there is strong interest in those locations from e-commerce companies serving customers in Western Europe.
Radosław T. Krochta
The group’s total leased area at the end of March 2021 was just under 1 mln sqm, while the vacancy rate for both its existing facilities and those under construction or in the pipeline was 7 pct. In addition, it held a land bank with a target development area of more than 1.38 mln sqm. MLP Group has also signed a number of reservation agreements to purchase new land for planned logistics parks in Poland, Germany and Austria.
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