MLP Group (MLG) Q1 2025 earnings summary

Executive summary

• Revenue grew 13% year-over-year to PLN 109.2 million, driven by stable rental income and higher property management services; EBITDA before revaluation up 7% YoY to PLN 53.9 million.

• Net profit swung to a loss of PLN -42.7 million from a profit of PLN 16.2 million in Q1 2024, mainly due to negative revaluation of investment property and FX effects.

• Occupancy rate at 92.1% (down from 95% in Q4 2024) due to new project completions; tenant retention rate near 99%; WAULT at 7.7 years.

• 224,222 sqm under construction; strong leasing activity with 45,000 sqm of new leases signed since January 2025.

• Net debt/EBITDA improved to 11.0x from 13.6x sequentially; liquidity and debt costs remain well managed.

Financial highlights

• Fair value of investment property (GAV) at PLN 5.49 billion, down 1% quarter-on-quarter due to PLN appreciation.

• NAV at PLN 2.69 billion (EUR 644 million), down 2% sequentially; NAV per share at PLN 112.3.

• LTV at 42.6%; equity ratio at 43.7%, both stable and above covenant minimums.

• Cash and cash equivalents at EUR 103 million (PLN 431 million), down 34% from Q4 2024.

• Adjusted EPRA earnings at PLN 14.4 million, down 26% YoY.

Outlook and guidance

• Vacancy rates expected to fall below 5% as new projects are leased up.

• Anticipated interest rate cuts in 2025 may support yield compression and property value growth.

• Market activity in core geographies expected to remain stable, with moderate rent growth and stable yields.

• EBITDA growth and further reduction in net debt/EBITDA ratio anticipated.

• Focus remains on urban agglomerations, top-tier tenants, and prudent financial management.