Demand for warehouses remains high. MLP has proof of it.

MLP Group has achieved over 0.5 billion PLN (112 million EUR) in net profit. The value of investment properties reached 4.5 billion PLN (958.2 million EUR) - 33 percent more than at the end of 2021.

- MLP net profit amounted to 526.1 million PLN (112.2 million EUR), + 160% y/y, supported by strong growth in rental income and a positive result from the revaluation of investment properties.
- Revenues reached 196.8 million PLN (41.9 million EUR), + 35%, rental rates are automatically indexed by the HICP inflation rate.
- Equity (NAV) exceeded 2.4 billion PLN (498.5 million EUR), + 33% vs. 31.12.2021.
- The value of funds from operations (FFO) amounted to 63.7 million PLN (13.6 million EUR), + 53% y/y. The vacancy level is close to 0 percent.

MLP Group maintains a very good financial condition, which is confirmed by the published results for the first three quarters of 2022.

The Group increased its net asset value (NAV) by 33% to over 2.4 billion PLN (498.5 million EUR). The value of investment properties also increased by 33% to over 4.5 billion PLN (958.2 million EUR). Consolidated revenues improved year-on-year by 35% and amounted to 196.8 million PLN (41.9 million EUR). This is the result of both an increase in leased space and higher rental rates. In turn, net rental income increased year-on-year by 30% to 145.6 million PLN (31 million EUR). The Group improved its operating result by 164% to 750.1 million PLN (160.0 million EUR). In the first three quarters of this year, MLP Group generated 526.1 million PLN (112.2 million EUR) in net profit, which is a result more than 2.6 times better than that reported a year earlier. 

"We have recorded another very successful period of operations. Despite a demanding environment, we have achieved excellent financial and leasing results. The situation in the warehouse industry remains stable," said Radosław T. Krochta, President of the Management Board of MLP Group. "We are constantly observing high demand for warehouse space. Tenants are trying to secure their supply chains through nearshoring / friend shoring operations, as well as by maintaining higher inventory levels near the markets they serve. This strengthens the demand for new space," added Radosław T. Krochta.

MLP warehouses with a full set of tenants

"Within the Group, we maintain high portfolio stability. We have practically 100 percent of the space leased, with very good tenant diversification, both geographically and by industry. The vacancy level within completed investments remains at a very low level close to 0%. Occasionally appearing vacant spaces are usually taken over very quickly by new tenants. This gives us space for further, dynamic development, also through the implementation of investments partially on a speculative basis. For this purpose, we have a secured attractive land bank and have concluded many reservation agreements for new investment land, both in Poland and on foreign markets," said the President of the Management Board of MLP Group.

Poland, Germany, Austria, Romania

MLP Group is currently developing its operations on the Polish, German, Austrian, and Romanian markets. The total leased area at the end of September this year amounted to over 1 million sqm and has increased by over 125 thousand sqm since the beginning of the year. The development potential within the existing investment portfolio exceeds 1.6 million sqm. The Group currently operates 22 logistics parks in Poland and abroad. The strategic goal remains to expand the warehouse offer as part of the development of Big Box buildings and urban logistics projects.

"We are fully protected against various types of risks, including those related to the currently noted high price growth. The rental rates we obtain for commercial space are, in accordance with the agreements concluded with tenants, automatically indexed by the HICP inflation rate. Since rents are also denominated in EUR, we are also resistant to currency risk," said Radosław T. Krochta. "Additionally, practically all of our credit liabilities are secured by IRS for the next 5 years, thanks to which we are also not afraid of interest rate volatility. This makes us feel very safe in these volatile times," he added.

MLP is eco

The priority of MLP Group is actions aimed at environmental protection. The Group is consistently implementing a strategic project to build photovoltaic farms on the roofs of its existing and new logistics parks. By the end of this year, the capacity of the photovoltaic installation in Polish parks should reach approximately 6.3 MWp. Additionally, panels are also being installed on foreign projects. The green energy produced will be used primarily for our own needs. It will also constitute an additional stream of revenue in the future. According to the assumption, 80% of projects will have a BREEAM certificate at the Excellent or Very Good level and a DGNB Gold or Platinum certificate on the German and Austrian markets. Net zero carbon footprint is to be achieved within two to three years.

In accordance with the "build & hold" strategy, MLP Group, after completing the construction of logistics parks, keeps them in its portfolio and manages them independently. All projects implemented by the Group are also distinguished by a very attractive location of logistics parks, the use of built-to-suit solutions, and support for the tenant during the lease agreement."