As a European platform for industrial and logistics real estate, MLP Group continues to navigate the evolving market landscape with strategic investments and adaptive portfolio management, driving sustained growth across its core markets. In response to increasing demand for warehouse space and shifting market trends, the Group is solidifying its market leadership, particularly in Poland, Germany, Austria, and Romania.
The industrial and logistics property sector is currently experiencing robust performance. Following a period of rising yields, a decline is anticipated as interest rates are expected to decrease. Demand for warehouse space has rebounded across Europe, particularly from the second quarter of 2024, with light industry tenants—mainly from Asia—driving the recovery. These clients typically prefer long-term leases, often extending for at least ten years, and are willing to pay higher rental rates than those in the logistics sector. This surge in demand is further amplified by the nearshoring trend, as companies relocate advanced manufacturing operations closer to home or to neighboring countries. Meanwhile, the limited supply of new projects has led to rising rental rates, with construction costs now returning to pre-pandemic levels, boosting the profitability of ongoing developments.
“The first half of 2024 was highly successful for us, and we are committed to accelerating our growth in the latter half of the year,” stated Radosław T. Krochta, President of the MLP Group S.A. Management Board. “Our focus remains on expanding within core urban areas across our key geographies. By securing prime locations in major urban centers and expanding our landbank, we are well-positioned to expedite our growth and strengthen our market leadership. The expansion of our City Logistics portfolio is a critical growth driver, and we aim for these projects to account for 30% of our total gross asset value by 2028.”
MLP Group’s financial performance in the first half of 2024 reflects its strong market position. Consolidated revenue rose 1% year-on-year to PLN 187.7 million, while rental income from investment properties increased by 8% to PLN 108.5 million. The value of the Group’s investment properties grew by 11%, surpassing PLN 5 billion (EUR 1.17 billion). Additionally, EBITDA (excluding revaluation of investment properties) improved by 2%, reaching PLN 99.1 million (EUR 23.0 million).
With a portfolio that generates stable and substantial cash flows and a weighted average lease term of over 7.8 years, MLP Group serves an international client base of approximately 195 tenants, including global blue-chip companies with strong credit ratings. The Group’s robust financial position and secure capital structure position it well to achieve its long-term strategic objectives. MLP Group is also in the final stages of obtaining a credit rating, which will enhance its access to European and global debt markets, bolstering its project financing capabilities.
In the first half of 2024, MLP Group signed or is expected to sign lease contracts totaling 161,000 square meters, with the majority of budgeted leases for the year anticipated in the second half, particularly in the third quarter. “By the end of 2024, we will focus on leasing space primarily in Vienna, Gelsenkirchen (Schalke), Łódź, Poznań, Idstein (near Frankfurt am Main), and Berlin-Spreenhagen,” Krochta emphasized. “Our goal is to significantly boost EBITDA and rental income, and we are also expanding our landbank, particularly in key urban locations such as North Rhine-Westphalia, Saxony-Anhalt, Rzeszów, and Warsaw.”
As MLP Group continues to expand its footprint across Europe, the company is well-positioned to capitalize on the growing demand for industrial and logistics spaces, ensuring its leadership in the sector for years to come.
