/ / / MLP Group: over PLN 170 million net profit in 2020

MLP Group: over PLN 170 million net profit in 2020

MLP Group R.T.Krochta

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MLP Group has published its consolidated financial results for 2020. During this period, the Group achieved a net profit of PLN 170.4 million (+32% year-on-year). The value of equity (net assets) increased in the past year by 29% to PLN 1.21 billion, and the value of gross investment properties also increased by 29% to PLN 2.33 billion.

Last year MLP Group conducted dynamic growth in all markets served. The Group’s strategic goal remained expansion in Poland and the German market, as well as development in Austria and Romania.  City Logistics type facilities (small modules offering modern warehouse space together with representative offices of high finishing standard) and big-box facilities enjoyed increasing popularity.

– Last year was successful for us despite the ongoing coronavirus pandemic. The driving force was the realisation of projects launched before the pandemic. The overall market developed at a similar pace to the previous year. As a result, our financial performance was also very good. We are increasingly influenced by our activities in the European market, particularly in Germany. Last year we also actively purchased land for new projects. In this way, we extended our offer to the Austrian market, where we started a new logistics park in Vienna. We also launched further projects in Germany. We have also invested actively in Poland, starting new projects in Wrocław, Łódź and Greater Poland, as well as completing further expansion stages of our current logistics parks,” said Radosław T. Krochta, President of the Management Board of MLP Group S.A.

The MLP Group maintains its good financial condition. Last year it increased its net asset value (NAV) by 29% to PLN 1.21 billion. The value of investment properties also increased by 29% to PLN 2.33 billion. In the past year, the Group generated PLN 170.4 million in net profit, 32% more than in the previous year. In turn, consolidated revenues amounted to PLN 190.7 million and were 36% higher than a year earlier. Taking into account only the revenue obtained from rents from leases, which is the main source of revenue from core activities, in 2020 the Group achieved a 23.9% increase compared to the same period of the previous year.

In 2020, MLP Group developed and had in preparation projects with a total area of over 241,000 sqm. As a result, the Group had more than 715,000 sqm of finished warehouse space at the end of last year. Taking into account also projects under construction and in preparation, it offered a total of nearly 860,000 m2 of modern space. At the same time, the Group maintained a land bank, within which the target development area reaches nearly 1.29 mln m2. In addition, the Group holds a number of reservation agreements for the purchase of new land for planned logistics parks in Poland (e.g. Stryków, Pruszków, Poznań), Germany (e.g. Gelsenkirchen, Cologne, Frankfurt am Main, Leipzig) and Austria.

Despite the pandemic, the warehouse market in Poland recorded a record result in 2020, which once again confirmed its strength. According to market data, last year the total supply of modern warehouse space in Poland reached 20.7 million sqm. A total of 2 million sqm of new warehouse space was delivered to the market during this period. At the end of this period there was approximately 1.9 million m2 under construction.

– We look at the current year with moderate optimism. The warehouse market will rather grow at a single-digit rate. It will be a solid growth, but far from a hurricane. Everything will depend on the global economic situation and how quickly the global economy returns to growth. We expect that the main factors influencing the development of the warehouse space market will be the e-commerce sector and the demand generated by clients transferring production from Asian countries to Europe. An additional important factor influencing demand is that tenants are increasing their inventories due to fears of disrupted supply chains, which consequently results in higher demand for warehouse space. We are also focusing on implementing green solutions in our logistics parks and investing in renewable energy sources. One of our priority goals is to install photovoltaic panels on all owned and under construction facilities. We want MLP Group to become an energy-sustainable company in terms of CO2 emissions by 2023,” added Radosław T. Krochta.

In accordance with the “build & hold” strategy, MLP Group maintains logistics parks in its portfolio after their completion and manages them on its own. All projects implemented by the Group are also distinguished by the very attractive location of logistics parks, the use of built-to-suit solutions and tenant support during the lease agreement.

Source: MLP Group

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