Mlp Group Sa · GPW:MLG
Mlp Group Sa — Q1 2023 Earnings Presentation
49 slides from Mlp Group Sa's earnings presentation, May 2023
Slide 1: MLP Group 1Q 2023 Results
MLP GROUP 1Q 2023 Results May 2023
Slide 2: Agenda and Team
AGENDA AND TEAM 1 KEY DEVELOPMENT POINTS IN 1Q 2023 3 2 MLP AT A GLANCE 5 3 EXECUTIVE SUMMARY 12 4 1Q 2023 LEASING RESULTS 24 5 STRONG EXPANSION 33 6 FINANCIAL ACTIVITY IN 1Q 2023 37 7 SUSTAINABLE DEVELOPMENT 44 8 ESG STRATEGY 47 Radosław T. Krochta Monika Dobosz Chief Executive Officer Chief Financ
Slide 3: 1Q 2023 Key Development Points
1. 1Q 2023 KEY DEVELOPMENT POINTS
Slide 4: Key Development Points in 1Q 2023
1. KEY DEVELOPMENT POINTS IN 1Q 2023 1 Leasing take-up on average 20% lower vs supply 50% lower => pricing and leasing opportunity for MLPG 2 100% of lease contracts indexed as of February with inflation (8.6 HICP EZ or 9.2 HICP EU) 3 General contractors pricing y/y +10-12% vs rental growth +20-25%
Slide 5: MLP Group at a Glance
2. MLP GROUP AT A GLANCE
Slide 6: Leading Integrated European Logistics Property Platform
2. MLP GROUP AT A GLANCE Leading Integrated European Logistics Property Platform PREMIUM CLASS-A ASSET BASE MLP Group is powerful vertically-integrated business model with full range of in-house capabilities, 1 from property development to management. Very experienced team – each senior team member
Slide 7: Strategy of Own Developments: Vertical Integration
2. MLP GROUP STRATEGY OF OWN DEVELOPMENTS Vertical integration Own property Location Search Design & Permit Construction Fit-out MLPG Energy management MLPG provides an MLPG applies and obtains Each time before the After construction of the After move-in, MLPG park MLPG is energy overview of potenti
Slide 8: Our Portfolio: Two Property Types
2. OUR PORTFOLIO Two property types BIG BOX (i.e. large-scale) warehouses, primarily addressing City Logistics (MLP Business Parks) are operating as MLP e-commerce growth and increased demand from light Business Parks and offering small warehouse units (ranging industry customers, driven by such fac
Slide 9: Premium Class-A Asset Base
2. OUR PORTFOLIO Premium CLASS-A Asset Base Clear height of warehouse space: 10 m or 11.5 m Gas heaters above ESFR sprinkler docks installation LED Lighting 300 lux Skylights 3% of roof area Clear height Fire load above –10/11,5 m 4 000 MJ/sqm Hörmann / Novoferm gates 6 T/sqm Column grid of 12 m x 2
Slide 10: Premium Class-A Asset Base
2. OUR PORTFOLIO Premium CLASS-A Asset Base Buildings with daylight access High standard offices on three sides Glass façade Air conditioning Ample parking places for trucks and personal cars. 10 MLP GROUP 1Q 2023 RESULTS
Slide 11: Strong Operating Position at an Attractive Valuation
2. MLP GROUP AT A GLANCE Strong operating position at an attractive valuation WAULT (years) LTV 55% 12.8 44% 45% 39% 41% 8.3 33% 35% 7.1 7.5 6.5 6.1 26% 5.6 24% 5.2 MLP WDP VGP Montea Tritax Catena CTP Intervest MLP WDP VGP Montea Segro Tritax Catena CTP Intervest Source: Bloomberg, Dealogic, Compan
Slide 12: 1Q 2023 Executive Summary
3. 1Q 2023 EXECUTIVE SUMMARY
Slide 13: MLP Group - Outperformance
3. 1Q 2023 EXECUTIVE SUMMARY MLP GROUP - outperformance MLP GROUP - OUTPERFORMANCE IN 1Q 2023 Like-for-Like rental Rental revenue growth Company Country of origin LTV growth y/y MLP +18.0% +49% 34.5% CTP +7.8% +21.9% 46% SEGRO* +6.7% +19% 32% WDP* +4.0% +14.6% 35% Logicor* +4.3% +2.4% 48% *Data as o
Slide 14: Q1 2023: Delivering on Promises
2. YE 2022 EXECUTIVE SUMMARY Q1 2023: delivering on promises FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS 48.9 mn PLN 230.5 mn PLN 97% 7.1yrs +49% vs. 1Q 2022 Rental income Total annualized in 1Q 2023 future rental income Occupancy WAULT 34.5 29.4 mn PLN 8.5% +18% +48% vs. 1Q 2022 1Q 2023 vs. 1Q 2022
Slide 15: MLP Group Is Active in European Countries
2. YE 2022 EXECUTIVE SUMMARY MLP Group is active in 4 European countries 1.08mn sqm GLA 1.93 mn Gorzów Wielkopolski Poland Berlin Poznań Pruszków Unna Germany Zgorzelec Łódź Teresin sqm landbank Gelsenkirchen Lublin Wrocław Niederrhein Idstein Czeladź Gliwice 3.9 MWp Installed PV Vienna Austria Roma
Slide 16: Portfolio Vault and Leases Due to Expire
3. 1Q 2023 EXECUTIVE SUMMARY Portfolio Vault and leases due to expire 7.1 years 100% 43 % Average term of lease Retention rate agreements 18% 15% 14% 5% 2024 2025 2026 2027 >2028 % of leases due to expire 16 MLP GROUP 1Q 2023 RESULTS
Slide 17: Yielding Projects: Poland & Germany
3. YIELDING PROJECTS Poland & Germany MLP POZNAŃ MLP POZNAŃ WEST II MLP WROCŁAW MLP GLIWICE MLP PRUSZKÓW I MLP PRUSZKÓW II MLP LOGISTIC PARK UNNA MLP BUSINESS PARK BERLIN I 17 MLP GROUP 1Q 2023 RESULTS
Slide 18: Poland, Germany, Austria & Romania
3. 1Q 2023 EXECUTIVE SUMMARY Poland, Germany, Austria & Romania PERCANTAGE OF PROJECTS DEVELOPMENT AS AT MARCH 2023 MLP Gorzów MLP Zgorzelec MLP Czeladź MLP Pruszków II MLP Wrocław West MLP Poznań West MLP Poznań MLP Łódź MLP Business Park Schalke MLP Business Park Niederrhein MLP Idstein MLP Busine
Slide 19: Projects Under Construction
3. PROJECTS UNDER CONSTRUCTION Poland & Germany & Austria & Romania MLP BUSINESS PARK MLP ZGORZELEC MLP BUSINESS PARK POZNAŃ MLP BUCHAREST WEST NIEDERRHEIN MLP GORZÓW MLP CZELADŹ MLP BUSINESS PARK VIENNA MLP ŁÓDŹ 19 MLP GROUP 1Q 2023 RESULTS
Slide 20: Phasing of Projects in Poland, Germany, Romania & Austria
3. 1Q 2023 EXECUTIVE SUMMARY Phasing of projects in Poland, Germany, Romania & Austria PHASING OF THE PROJECTS MLP Łódź MLP Business Park Łódź MLP Business Park Poznań MLP Poznań West (Dąbrówka) MLP Gorzów MLP Wrocław West MLP Pruszków II MLP Poznań (Koninko) MLP Czeladź MLP Zgorzelec MLP Gliwice ML
Slide 21: Key Points in 1Q 2023 - Financial Position
2. YE 2022 EXECUTIVE SUMMARY Key points in 1Q 2022 - Financial position As at 31 March 2023: LTV1) 34.5% ICR 3.0x NAV in PLN mn 2 516 Financial indebtness in EUR mn (all-in) among which: 404 – Bank loans (secured on MLP's assets) in EUR mn 323 – Bonds (unsecured on MLP's assets) in EUR mn 81 Bank lo
Slide 22: Key Points in 1Q 2023 - FFO
2. YE 2022 EXECUTIVE SUMMARY Key points in 1Q 2023 - Financial position FFO IN EUR MN FFO IN PLN MN 6.2 29.4 47% 48% 4.3 19.8 1Q 2022 1Q 2023 1Q 2022 1Q 2023 FFO = Revenues – Operating expenses+ Depreciation+ Net finance income/costs (excluding sum of net exchange differences & interest on loans) –
Slide 23: Revenues and Costs
2. YE 2022 EXECUTIVE SUMMARY Key points in 1Q 2023 - Financial position REVENUES IN PLN MN COSTS IN PLN MN +51% 28.7 Recharge of utility costs Developed space Developed space as at 31.03.2022 as at 31.03.2023 +56% 791 624 sqm 1 015 545 sqm Recharge of service charges 17.1 +46% 18.5 +52% Rental incom
Slide 24: 1Q 2023 Leasing Results
4. 1Q 2023 LEASING RESULTS
Slide 25: Leasing Results: New Agreements in 2023
LEASING RESULTS New agreements in 2023 CURRENT STATUS AND PLANNED YEAR-END LEASING BUDGET 350 000 As at 15th May 2023 300 000 288 252 250 000 200 000 150 000 100 000 85 000 50 000 25 839 0 0 0 Poland Germany Romania Total in the pipeline to be Total leasing budget in 2023 signed in 1H 2023 space (sq
Slide 26: Our Clients: Partnership that Delivers Growing Income Streams
3. LEASING RESULTS - OUR CLIENTS Partnership that deliver robust & growing income streams STRONG OPERATING METRICS 1.08 mn 97% 100% 100% 98% Leased area Occupancy Retention rate Lease contact Rent collection indexed with EURO HICP without CAP TENANTS BY SECTOR LEASED AREA 2023 Production E-commerce
Slide 27: Our Tenants - Diversified Tenants' Portfolio
3. LEASING RESULTS Our tenants – diversified tenants’ portfolio TOP 10 TENANTS IN SQM 57 382 57 195 56 261 46 984 45 707 41 762 Top 10 Tenants provide 30 430 26 690 34% of annual rental 26 517 income 26 407 27 MLP GROUP 1Q 2023 RESULTS
Slide 28: Main Leasing Deals
4. LEASING RESULTS Main leasing deals REPEAT CLIENTS NEW TENANTS 28 MLP GROUP 1Q 2023 RESULTS
Slide 29: European Vacancy Rates in 2022
4. LEASING RESULTS European vacancy rates in 2022 4.1% 1.5% 0.9% 5.6% 1.6% Poland Germany Austria Romania Netherlands 3.5% Euro average Source: Savills, European Logistics outlook Q3 2022 29 MLP GROUP 1Q 2023 RESULTS
Slide 30: Future of the Supply Chain
4. LEASING RESULTS Future of the supply chain OCCUPIERS STRATEGY TO MANAGE SUPPLY CHAIN OVER NEXT 3 YEARS 42% 40% 39% 30% 25% 20% Re/near shoring Reduce the reliance on Inreasing the quantity of Invest in automation Reduce C02 Expand/consolidate imports stock held footprint Source: Savills, European
Slide 31: Geographical Locations Considered for Near Shoring
4. LEASING RESULTS Geographical locations considered for near shoring BENEFITIAL MARKETS 27% 17% 28% 28% 29% 22% 35% 43% 25% 22% 28% 30% 10% 20% 18% 18% 10% 15% 12% 11% 3% Germany Other Western Benelux Poland Hungary Other CEE countries Romania, Serbia or European countries Macedonia very likely lik
Slide 32: Industrial Forecast for 2023 – Main Parameters
4. LEASING RESULTS Industrial forecast for 2023 – main parametres Demand for logistics space, across all markets where we operate, is unbroken and the combination of bounce back in global economy, continuing e-commerce demand and restructuring of supply chains will keep demand for logistics space hi
Slide 33: Strong Expansion
5. STRONG EXPANSION
Slide 34: Strong Expansion and New Markets
5. STRONG EXPANSION and new markets Space potential 1.0mn sqm Reserved plots 58 ha Gorzów Wielkopolski Poland Berlin Poznań Pruszków Unna Germany Benelux Zgorzelec Łódź Teresin Gelsenkirchen Niederrhein Wrocław Lublin New plots acqusition in 2022 Czeladź 37.7ha Idstein Gliwice Vienna Austria Romania
Slide 35: Accelerated Landbank Acquisitions
5. ACCELERATED LANDBANK ACQUISITIONS Replenishing & growing development capacity 52% x2 52% situated adjacent Potential development to our existing of the landbank is 1 mn sqm or new parks which doubles the portfolio’s size POTENTIAL FOR DEVELOPMENT TOTAL LANDBANK BY COUNTRY IN SQM IN HA Poland Opti
Slide 36: Financial Activity in 1Q 2023
5. FINANCIAL ACTIVITY IN 1Q 2023
Slide 37: Financial Data: Key Points in 2023 - Financial Position
5. FINANCIAL DATA Key points in 2023 - Financial position 1Q 2023 1Q 2022 1Q 2021 1Q 2023 YE 2022 1Q 2021 CHANGE 1Q 2023 1Q 2022 CHANGE 1Q 2021 CHANGE (IN PLN (IN PLN (IN PLN (IN PLN (IN PLN (IN PLN (IN %) (IN %) (p.p.) (IN %) MN) MN) MN) MN) MN) MN) INVESTMENT 4 489.0 4 433.0 1% 2 479.2 REVENUES 94
Slide 38: Net Asset Value Growth
5. FINANCIAL DATA Net Asset Value Growth NET ASSET VALUE (in mn PLN) NET ASSET VALUE (in mn EUR) 533 538 2 498 2 516 397 1 825 263 1 212 220 939 190 815 2018 2019 2020 2021 2022 1Q 2023 2018 2019 2020 2021 2022 1Q 2023 38 MLP GROUP 1Q 2023 RESULTS
Slide 39: Financial Data: Rental Income and Like-for-Like Growth
5. FINANCIAL DATA RENTAL INCOME LIKE-FOR-LIKE RENTAL GROWTH IN PLN MN MAIN DRIVERS 7.5 +18% 8.5 +12% 9.4% renegotiations/ new contracts 48.9 indexation 32.9 7.9% exchange rate change 8.4% 2.6% 1.5% 0.3%0,3% Rental income Passing rent Rent generated Rental income 1Q 2022 1Q 2023 1Q 2022 on existing b
Slide 40: Annualized Future Rental Income
5. FINANCIAL DATA ANNUALIZED FUTURE RENTAL INCOME BASED ON ALL SIGNED CONTRACTS (IN MN PLN) ANNUALIZED RENTS ANNUALIZED RENTS TOTAL ANNUALIZED FROM CONTRACTS SIGNED FROM NEW CONTRACTS RENTAL INCOME BEFORE 2023 AND RENEWALS SIGNED IN 1Q 2023 97% 3% 100% 1 048 880 sqm 30 347 sqm 1 079 227 sqm 4.1 2.0
Slide 41: Change in Property Valuation in 2023
5. FINANCIAL DATA MLP GROUP 2022 RESULTS CHANGE IN PROPERTY VALUATION IN 2023 (IN THS PLN) Property value presented in FS for each quarter FX +69 677 Valuation change* 4 446 903 4 390 695 -13 469 • . YE 2022 1Q 2023 The chart above does not include value of Perpetual Usufruct. * Due to the fact the
Slide 42: Loans and Bonds
5. FINANCIAL DATA Loans and bonds EXISTING BANK LOANS BY MATURITY • MLPG is a reliable financing partner, with a solid IN EUR MN financial position. 178 • Having signed bank loan agreements with Polish and German banks MLP has secured financing of EUR 60 mn for further development. 36 41 25 40 14 7
Slide 43: Sustainable Development
7. SUSTAINABLE DEVELOPMENT
Slide 44: Green Industrial Developer: Energy
7. GREEN INDUSTRIAL DEVELOPER Energy 100% GREEN ENERGY DELIVERED TO OUR CLIENTS MLP has contracted renewable energy to all parks by 2024 Importance to tenants: • Zero carbon emission • Tenant’s ESG ambitions • Renewable Energy as a crucial factor in the tendering processes both for tenant’s supplier
Slide 45: Green Industrial Developer: Solar Panels
7. GREEN INDUSTRIAL DEVELOPER Solar panels ENERGY PRODUCTION ULTIMATE INCOME SOLAR PANELS INSTALLED CAPACITY Poland: (MWp) • 2022: 242 MWh – PLN 0.17 mln 10.55 • 2023: 3 025 MWh – PLN 2.27 mln • 2024: 6 140 MWh – PLN 4.61 mln Germany (Berlin and Unna) 6.46 6.46 • 2023: 1.2 MWp – EUR 150 ths will be
Slide 46: ESG Strategy
MLP GROUP STRATEGY
Slide 47: ESG Strategy for MLP Group S.A.
8. ESG STRATEGY For MLP GROUP S.A. E – ENIVIRONMENTAL GOAL • Reducing the company's negative impact on the environment Tasks to achieve this goal: • renewable energy from PV + Energy efficiency • reducing water consumption • waste management • bio-diversity S - SOCIAL GOAL • Drive a comprehensive ef
Slide 48: ESG Strategy for MLP Group S.A. - Governance
8. ESG STRATEGY For MLP GROUP S.A. G - GOVERNANCE GOAL Incorporate ESG into business operations and reconcile corporate and social interests Tasks to achieve this goal: • consider issues relating to the environmental impact of projects, • human rights and climate change • in decision-making processe
Slide 49: Thank you!
Thank you! MLPGROUP MLP GROUPS.A. S.A.• 3 • ul. Maja3 Maja 8, 05-800 8, 05-800 Pruszków, Pruszków, tel. 738 +48 22 22 738 30 10 30 10 www.mlpgroup.com