MLP Group published consolidated financial results for 2020. During this period, the Group achieved a net profit of PLN 170.4 million (+ 32% yoy). The value of equity (net assets) increased last year by 29% to the level of PLN 1.21 billion, and the value of gross investment properties also increased by 29% to PLN 2.33 billion.
Last year, MLP Group led dynamic development on all supported markets. The Group’s strategic goal was expansion in Poland and the German market, as well as development in Austria and Romania. City Logistics facilities (small modules offering modern warehouse space together with a representative office with a high standard of finish) and big-box facilities were becoming more and more popular.
“The past year was successful for us despite the ongoing coronavirus pandemic. The driving force was the implementation of projects launched before the pandemic. The entire market developed at a similar pace as in the previous year. As a result, our financial results also turned out to be very good. Our activities conducted on the European market, and in particular on the German market, have an increasing influence. Last year, we also actively purchased land for further projects. In this way, we extended our offer to the Austrian market, where we started the construction of a new logistics park in Vienna. We have also launched further projects in Germany. We also actively invested in Poland, starting new projects in Wrocław, Łódź and Greater Poland, and implementing the next stages of expansion of the currently owned logistics parks “- said Radosław T. Krochta, President of the Management Board of MLP Group S.A.
The MLP Group Capital Group maintains a good financial condition. Last year, it increased the value of net assets (NAV) by 29% to the level of PLN 1.21 billion. The value of investment properties also increased by 29% to PLN 2.33 billion. Last year, the Group generated a net profit of PLN 170.4 million, ie 32% more than in the previous year. Consolidated revenues, on the other hand, amounted to PLN 190.7 million and were 36% higher than the year before. Taking into account only the revenues obtained from rents, which are the main source of revenues from core activities, in 2020 the Group achieved a 23.9% increase compared to the corresponding period of the previous year.
In 2020, MLP Group implemented and had projects under preparation with a total area of over 241,000 sqm. As a result, at the end of last year, the Group had over 715,000 sqm of finished warehouse space. Taking into account also projects under construction and in preparation, it offered a total of nearly 860,000 sqm of modern space. At the same time, the Group maintained a land bank within which the target area for development is nearly 1.29 million sqm. Additionally, the Group has a number of reservation agreements for the purchase of new land for planned logistics parks in Poland (including Stryków, Pruszków, Poznań), Germany (including Gelsenkirchen, Cologne, Frankfurt am Main, Leipzig) and Austria.
Despite the pandemic, the warehouse market in Poland recorded a record result in 2020, which once again confirmed its strength. According to market data, last year the total supply of modern warehouse space in Poland reached the level of 20.7 million sqm. During this time, a total of 2 million sqm of new warehouse space was delivered to the market. At the end of this period, approximately 1.9 million sqm was under construction.
“We are moderately optimistic about the current year. The warehouse market will rather grow at a single-digit pace. It will be a solid growth, but far from being over-optimistic. Everything will depend on the economic situation in the world and how quickly the global economy returns to the growth path. We expect that the main factors influencing the development of the warehouse space market will be the e-commerce sector and the demand generated by customers relocating production from Asian countries to Europe. An additional important factor influencing the demand is the increase of inventories by tenants for fear of disrupting supply chains, which in turn causes a greater demand for warehouse space. We also focus on the implementation of ecological solutions in our logistics parks and investments in renewable energy sources. One of our priority goals is the installation of photovoltaic panels on all owned and constructed facilities. We want MLP Group to become an energy sustainable company in terms of CO2 emissions by 2023 – added Radosław T. Krochta.
