11/18/2021 | Press release | Distributed by Public on 11/18/2021 03:17
MLP Group has released its consolidated financial results for the first three quarters of 2021, showing revenue of PLN 145.7m, up 7% year on year. Net profit was PLN 202.2m, having increased 35% year on year. Equity (net assets) rose more than 27% in the first nine months of the year, to PLN 1.54bn, with gross investment property having advanced by 25%, to over PLN 2.9bn.
MLP Group is continuing growth at a vigorous pace across all its markets. Its strategic goal remains to expand the business in Poland, as well as on the German, Austrian and Romanian markets. MLP Group offers storage space at big box and Urban Logistics facilities (MLP Business Park).
'Warehouse space is the fastest growing sector of Poland's commercial real estate market. Every year brings new records in terms of developed and leased space. Strong growth of the e-commerce sector, an increase in warehouse space prompted by supply chain risks and the trend to move operations from Asia increasingly closer to Europe are the main drivers of demand for warehouse facilities.In this market environment, we delivered a significantly improved financial performance for the first three quarters of the year, while increasing the value of our assets. We are consistently investing to expand our parks and add to the land bank, which provides a springboard for further dynamic growth of our operations. Given the very strong demand for warehouse space, we can see potential for raising our lease rates,' said Radosław T. Krochta, President of the Management Board of MLP Group S.A.
Overall, at the end of September 2021, the total area of modern space leased out by MLP Group was 863 thousand sqm, up 107.5 thousand sqm on the year's beginning, with lease contracts signed during the period for over 151 thousand sqm. The vacancy rate remained very low, at approximately 3%. Space under construction and in the pipeline at the end of the third quarter of 2021 was 162 thousand sqm. The target surface area of the Group's logistics parks is 1.44 million sqm. MLP Group has also signed a number of reservation agreements to purchase new land for planned logistics parks in Poland and Western Europe.
'It was a record-breaking period in terms of demand for our warehouse and office space. Commercialisation improved by about 20% year on year. Our tenants almost always decide to renew their contracts. As a result, the vacancy rate remains very low. To respond to the strong demand for modern space, we are also consistently expanding our operations across all our markets. For example, we have recently bought a land plot in Gelsenkirchen in the Ruhr region. Our plans for the nearest future are to bring our offering also to clients in Frankfurt and Stuttgart and we intend to buy one more plot in Berlin. We also want to strengthen our foothold on the Austrian market by buying another plot of land near Vienna, and next year we want to launch our operations in Benelux, near Venlo. We are also consistently investing in Poland,' added Radosław T. Krochta.
In keeping with its build & hold strategy, MLP Group retains completed logistics parks in its portfolio and manages them. All projects undertaken by MLP Group are distinguished by very attractive locations of the logistics parks, application of built-to-suit solutions, and support given to tenants during the lease term.