Echo Investment recorded PLN 122.09 million of consolidated net profit attributable to shareholders of the parent company in 2020 compared to PLN 299.53 million of profit a year earlier. The operating profit amounted to PLN 338.17 million versus PLN 450.15 million profit a year earlier.
Taking into account the new reality in which the company operates, social trends and changing customer preferences, Echo Investment focuses more and more on the residential sector. Flats for sale and flats for rent today account for about a quarter of the company’s assets. Due to the high development potential of this sector in Poland and lower demand for external financing, Echo Investment’s ambition is to significantly increase the share of housing projects in the balance sheet. After finalizing the purchase of a majority stake in Archicom, the group will start construction of 7,000 sqm only in 2021, apartments for sale and rent, the company said.
“Last year, we decided to increase our focus on the residential sector and to implement most of the investments as part of multi-functional, large-scale projects called ‘destinations’. These directions are in line with our current strategy, which also assumes that we strive for a leadership position in every segment, Every year we intend to increase our presence in the residential market, and thanks to joining forces with Archicom, our group will become the largest residential developer in Poland “- said CEO Nicklas Lindberg.
In 2020, the developer completed the construction of eleven residential projects in Warsaw, Łódź, Poznań and Wrocław, and started the construction and sale of apartments in seven new investments, which increased the offer by nearly 1.3 thousand apartments. Last year, the company managed to sign 1,570 sales contracts with customers, which is 16% better than last year’s result. At the same time, customers received the keys to 1,505 apartments, which was an increase of 19% compared to 2019. In the fourth quarter of 2020 alone, sales amounted to 464 units, and deliveries to 792.
Resi4Rent, the largest private rental company in Poland, currently has nearly 1.8 thousand apartments in Wrocław, Łódź and Warsaw, and in 2021 it will put into use another 460 apartments and will start the construction of over 3,000. additional premises. Ultimately, by 2025, it will introduce 10 thousand apartments in the six largest cities in Poland – in Warsaw, Kraków, Łódź, Wrocław, Gdańsk and Poznań, the material also shows.
“The financial situation of Echo Investment is stable. In 2020, we generated over PLN 122 million of consolidated net profit, and at the end of the period, we had PLN 327 million in our accounts. Additionally, in 2020 we bought attractive real estate for development with a potential of approx. 275 thousand m2 of residential and commercial space. With such a strong financial situation and an impressive land bank, we are ready to implement our strategy “- added Maciej Drozd, vice-president for finance.
Last year, the office department of Echo Investment focused on completing the construction of office buildings in line with the assumed deadlines and on finding tenants for them. The developer has completed five projects with a total area of over 125,000 sq m. m2. At the end of the year, their average rent level was above 60%, and the current level of commercialization and advanced talks are bringing this ratio closer to 85%, making the buildings ready for sale, it was reported.
The commercial sector suffered the most during the pandemic, mainly due to a triple lockdown and continuing restrictions. The priority for Echo’s rental and management departments was to work out an agreement with tenants on the principles of returning shopping centers to operation. The most important event for the company’s commercial projects in 2020 was the opening of the first Primark store in Poland in Galeria Młociny in Warsaw. It was one of the most anticipated debuts on the Polish market, which definitely strengthens the attractiveness of this project, it was noted.
Consolidated sales revenues reached PLN 1,212.85 million in 2020 compared to PLN 880.13 million a year earlier. On a standalone basis, the net profit in 2020 amounted to PLN 57.83 million compared to PLN 21.41 million profit a year earlier.
Echo Investment is a Polish developer that carries out investments in three sectors of the real estate market: residential, commercial and office. The company has been listed on the WSE since 1996. In 2020, it had PLN 1.21 billion of consolidated revenues.
Source: ISBnews
