MLP Group (MLG) Q3 2024 earnings summary

Executive summary

• Achieved strong growth in investment property value (+17% YoY in EUR), NAV (+12% YoY in EUR), and EBITDA without revaluation (+11% YoY in EUR).

• Net profit reached €61.6m (PLN 265.1m), up from €5.7m (PLN 26.3m) YoY, driven by higher operating profit and property revaluations.

• Rental income rose 15% YoY in EUR (8% in PLN), with occupancy stable at 92% and WAULT at 7.5 years.

• Issued €300m green Eurobond, repaid €67.4m in loans, and maintained a BB+/Ba2 credit rating.

• 80% of portfolio BREEAM/DGNB certified; ESG strategy advanced with renewable energy and decarbonization plans.

Financial highlights

• Investment property value: €1.22bn (+17% YoY); NAV: €617m (+12% YoY); revenues: €64.7m (+10% YoY).

• FFO declined 21% YoY to €12.6m (26% in PLN to PLN 54m) due to higher debt service costs.

• Gross margin stable at 67.3%; operating margin before revaluations at 50.6%.

• LTV at 38.8%; cash and cash equivalents at €39m, down 51% YoY.

• Earnings per share for nine months were PLN 11.05; book value per share at PLN 110.03.

Outlook and guidance

• Focus on leasing new business park projects in Vienna, Schalke, Łódź, Poznań, and Berlin.

• Targeting City Logistics to reach 30% of portfolio by 2028 (from 15% currently).

• Aims to increase Germany & Austria share of GAV to 33% by 2028.

• Management expects macroeconomic factors, interest rates, FX fluctuations, and property revaluation to be key drivers.

• Plans for new land acquisitions in Castrop, Rzeszów, Warsaw, and Łódź, with total space potential of 187,310 sqm.