MLP records nearly ninefold profit growth

In the first quarter of this year, MLP Group achieved PLN 42.8 million in revenue, while net profit amounted to PLN 112.6 million, which means an almost ninefold increase compared to the same period of the previous year. The value of equity increased to PLN 1.05 billion, which corresponds to the gross valuation of investment properties, which increased by 12 percent in the first three months of 2020 to PLN 2.14 billion.

In the first quarter of 2020, the developer generated PLN 42.8 million in revenue, which is 23% more than in the same period of the previous year. At the same time, MLP Group recorded PLN 191.9 million in operating profit, which is a result more than eight times better year-on-year. The significant improvement was positively influenced by the profit from the revaluation of investment properties, which amounted to over PLN 171.6 million. The increase in the fair value of properties was most influenced by construction expenditures incurred in the parks under development, the conclusion of new lease agreements, and obtaining building permits for subsequent facilities. The 6.9% depreciation of the Polish currency against the euro was also significant.

MLP Group simultaneously recorded a nearly ninefold increase in net profit to PLN 112.6 million compared to PLN 12.9 million obtained in the first quarter of 2019. Of this, the contribution of operations on the German market amounted to over 40%. At the end of March 2020, the warehouse space developer held equity (net assets) worth PLN 1.05 billion, which is 12 percent higher than the values reported at the end of 2019. In turn, the value of investment properties increased by 12% in the first three months of the year to PLN 2.14 billion.

In the first quarter of 2020, the developer completed the construction of nearly 60,000 sqm. As a result, at the end of March this year, the Group offered nearly 645,000 sqm of ready-made modern warehouse space. The vacancy rate within the built area was at a very low level of about 3%. In the first three months of 2020, new lease agreements for 44,300 sqm were concluded. This caused the total leased area (also including projects under construction and in the pipeline) to increase to 737,800 sqm. The total development potential on the land held currently amounts to nearly 1.3 million sqm. MLP Group owns plots of land and a number of reservation agreements for the purchase of new land for planned logistics parks in Poland, Germany, Romania, and Austria.