Mlp Group Sa · GPW:MLG
Mlp Group Sa — H1 2024 Earnings Presentation
59 slides from Mlp Group Sa's earnings presentation, August 2024
Slide 1: Investor Presentation MLP Group 1H 2024 Results
INVESTOR PRESENTATION MLP GROUP 1H 2024 RESULTS August 2024
Slide 2: Agenda and Team
AGENDA AND TEAM 1 MLP AT A GLANCE 3 2 1H 2024 EXECUTIVE SUMMARY 14 3 1H 2024 LEASING RESULTS 22 4 FINANCIAL ACTIVITY IN 1H 2024 34 5 KEY CHALLENGES 2024 50 Radosław T. Krochta Monika Dobosz Chief Executive Officer Chief Financial Officer 6 ESG STRATEGY 55 Investor presentation 1H 2024 results, Augus
Slide 3: 1. MLP Group at a Glance
1. MLP GROUP AT A GLANCE Investor presentation 1Q 2024 results, May 2024
Slide 4: Generic NAV development of logistic assets without acquisitions
1. MLP GROUP AT A GLANCE Generic NAV development of logistic assets without acquisitions DEVELOPED SPACE, UNDER CONSTRUCTION & IN PREPARATION STAGE (SQM) 1 387 776 1 404 725 1 105 595 999 847 857 068 750 834 611 578 512 310 356 874 392 241 400 974 335 466 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 5: MLP Group is active in 4 European countries
MLP GROUP IS ACTIVE IN 4 EUROPEAN COUNTRIES 4 1.16 2.69 7.42 core markets mn sqm mn sqm MWp GLA landbank installted PV Geographically, development in the German and Polish markets will Gorzów Wielkopolski Poland remain a priority Berlin By 2026, MLP wants to equal the Poznań Pruszków value of the pr
Slide 6: Key points in 1H 2024
1. MLP GROUP AT A GLANCE Key points in 1H 2024 1.16 MN SQM UNDER MANAGEMENT GVA BREAK-DOWN OF YIELDING INSTALLED ASSETS/NON-YIELDING => 79%/21% PV 7.42 MWP (12% PLOTS AND 9% CONSTRUCTION) (IN PREPARATION 2.65 MWP) Investor presentation 1H 2024 results, August 2024 6
Slide 7: Key points in 1H 2024 in PLN
1. MLP GROUP AT A GLANCE Key points in 1H 2024 in PLN FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS 108.5 mn PLN 249.7 mn PLN 92% 1) 7.8 yrs +8% vs. 1H 2023 Rental income Total annualized in 1H2024 future rental income Occupancy WAULT 37.5 % 40.9 mn PLN 12.0% -1.1% -30% vs. 1H 2023 1H 2024 vs. 1H 2023
Slide 8: Key points in 1H 2024 in EUR
1. MLP GROUP AT A GLANCE Key points in 1H 2024 in EUR FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS 25.2 mn EUR 57.9 mn EUR 92% 1) 7.8 yrs +16% vs. 1H 2023 Rental income Total annualized Occupancy in 1H 2024 future rental income WAULT 37.5 % 9.5 mn EUR 12.0% +5.9% 2) -25% vs. 1H 2024 1H 2024 vs. 1H 20
Slide 9: Portfolio lease terms and expiries
1. MLP GROUP AT A GLANCE Portfolio Vault and leases due to expire 7.8 years 100% 8% 65% Average term of Retention rate Vacancy lease agreements 12% 11% 8% 4% 2024 2025 2026 2027 >2028 % of leases due to expire Investor presentation 1H 2024 results, August 2024 9 MLP GROUP SUPERVISORY BOARD MEETING J
Slide 10: Accelerated growth since IPO in 2013
1. MLP GROUP AT A GLANCE Accelerated growth since IPO in 2013 +426% +271%* Growth in NAV Growth in developed space from PLN 0.509 from 0.313 million sqm to PLN 2.678 billion to 1.161 million sqm +308% +243% Growth in revenues Growth in share price from PLN 48.2 from PLN 24.00 to PLN 187.7 million to
Slide 11: Accelerated landbank acquisitions
1. MLP GROUP AT A GLANCE ACCELERATED LANDBANK ACQUISITIONS Replenishing & growing development capacity 72% x2 ca. 72% situated adjacent Potential development to our existing of the landbank is 1.4 mn sqm or new parks which doubles the portfolio’s size POTENTIAL FOR DEVELOPMENT BY COUNTRY (IN HA) TOT
Slide 12: Yielding projects Poland & Germany (examples)
1. MLP GROUP AT A GLANCE YIELDING PROJECTS Poland & Germany (examples) 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 Investor presentation 1H 2024 results, August 2024 12
Slide 13: Projects under construction and preparation (examples)
1. MLP GROUP AT A GLANCE PROJECTS UNDER CONSTRUCTION AND PREPARATION (examples) Poland, Germany, Austria & Romania MLP ZGORZELEC MLP BUSINESS PARK POZNAŃ MLP BUSINESS PARK SCHALKE MLP BUCHAREST WEST MLP POZNAŃ MLP PRUSZKÓW VI MLP BUSINESS PARK VIENNA MLP BUSINESS PARK ŁÓDŹ Investor presentation 1H 2
Slide 14: 2. 1H 2024 Executive Summary
2. 1H 2024 EXECUTIVE SUMMARY Investor presentation 1Q 2024 results, May 2024
Slide 15: Key trends in the European industrial market
2. 1H 2024 EXECUTIVE SUMMARY Key trends in the European industrial market 1 Stabilizing yields and valuations: Yields have peaked, and valuations bottomed out, with a trend reversal expected as yields align with interest rates. The CEE and Western Europe yield gap has returned to the long-term avera
Slide 16: Strategic adaptation and market outlook for 2024
2. 1H 2024 EXECUTIVE SUMMARY Strategic adaptation and market outlook for 2024 1 Improved market outlook: The most challenging period seems to be behind us, with reduced uncertainty regarding yields, inflation, and investment decisions. However, geopolitical risks and economic concerns remain potenti
Slide 17: Main highlights in PLN
2. 1H 2024 EXECUTIVE SUMMARY Main highlights in PLN 5.1 bn PLN 2 667.5 mn PLN 111.6 PLN 281.6 mln PLN +11% vs. YE 2023 +12% vs. YE 2023 +12% vs. YE 2023 Value of investment NAV NAV per share Net profit properties 99.1 mn PLN 40.9 mn PLN 161 K sqm 80% +2% vs. 1H 2023 -30% vs. 1H 2023 of our portfolio
Slide 18: Main highlights in EUR
2. 1H 2024 EXECUTIVE SUMMARY Main highlights in EUR 1.2 bn EUR 620.8 mn EUR 25.9 EUR 65.3 mln EUR +12% vs. YE 2023 +13% vs. YE 2023 +13% vs. YE 2023 Value of investment NAV NAV per share Net profit properties 23.0 mn EUR 9.5 mn EUR 161 K sqm 80% +9% vs. 1H 2023 -25 % vs. 1H 2023 of our portfolio EBI
Slide 19: Gross Asset Value key points in 1H 2024
2. 1H 2024 EXECUTIVE SUMMARY Key points in 1H 2024 GROSS ASSET VALUE (in EUR MN)* 1 159 1 031 EUR: 4,3130 936 EUR: 4,3480 EUR: 4,6899 729 EUR: 4,5994 497 419 334 EUR: 4,6148 EUR: 4,2585 EUR: 4,3000 2018 2019 2020 2021 2022 2023 1H2024 *Gross Asset Value of Investment Properties without Perpetual Usu
Slide 20: Gross Asset Value by asset type
2. 2024 EXECUTIVE SUMMARY Gross Asset Value by asset type GROSS ASSET VALUE* BY ASSET TYPE (AS AT 30.06.2024) • Low participation of non-yielding assets, i.e. 21% (12% plots and 9% construction) • The majority of assets under construction are covered with the prelease contracts. 12% 9% 79% EXISTING
Slide 21: Net Asset Value key points
2. 1H 2024 EXECUTIVE SUMMARY Key points in 1Q 2024 NET ASSET VALUE (IN MN PLN) 2 678 2 498 2 396 1 825 1 212 939 815 647 676 727 509 558 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1H 2024 NET ASSET VALUE (IN MN EUR) 621 533 551 397 263 220 174 190 131 152 153 123 2013 2014 2015 2016 2017
Slide 22: 3. 1H 2024 Leasing Results
3. 1H 2024 LEASING RESULTS Investor presentation 1Q 2024 results, May 2024
Slide 23: Market Outlook: Poland & Germany
3. 1H 2024 LEASING RESULTS Market Outlook: Poland & Germany POLAND GERMANY Poland remains one of the fastest-growing industrial and logistics Germany’s industrial and logistics real estate market has stabilized property markets in Europe. at a moderate level with take-up of a good one million sqm pe
Slide 24: Market Outlook: Austria & Romania
3. 1H 2024 LEASING RESULTS Market Outlook: Austria & Romania AUSTRIA ROMANIA Around 111,000 sqm of new logistics space was completed in Austria Romania's modern logistics property market had expanded during the first half of the year, with roughly three-quarters of that to 7.47 million sqm. located
Slide 25: Leasing Budget for 2024
3. 1H 2024 LEASING RESULTS Budget for 2024 – Poland, Germany, Austria & Romania LEASING BUDGET IN SQM 303 085 184 783 48 157 38 640 31 505 Poland Germany Austria Romania TOTAL Investor presentation 1H 2024 results, August 2024
Slide 26: Lease agreements – Poland, Romania, Germany & Vienna
3. 1H 2024 LEASING RESULTS Lease agreements – Poland, Romania, Germany & Vienna LEASING RESULTS IN SQM 160 783* 86 954 39 374 25 971 8 483 Poland Romania Germany Vienna TOTAL *Inclunding contracts concluded till end of September Investor presentation 1H 2024 results, August 2024 26
Slide 27: Budget for 2024 – New rental income
3. 1H 2024 LEASING RESULTS Budget for 2024 – Poland, Germany, Austria & Romania NEW RENTAL INCOME (ANNUALIZED) IN EUR 21 092 112 10 878 000 10 721 332 4 367 722 4 623 072 3 709 440 2 694 653 2 866 500 1 881 600 792 457 Poland Germany Austria Romania Total Budget Signed + to be signed by the end of S
Slide 28: Buildings under construction
3. 1H 2024 LEASING RESULTS Buildings under construction BUILDINGS UNDER CONSTRUCTION AS AT 30 June 2024 171.2 K 43.0 % 12.5mn EUR 10.4 yrs SQM Additional annualized rental income potential Already leased when full occupancy is WAULT Ongoing development reached 171 193 * 72 772 54 520 50 644 33 702 2
Slide 29: Construction with pre-let contracts
3. 1H 2024 LEASING RESULTS Buildings under construction CONSTRUCTION WITH PRE-LET CONTRACTS 93% 88% 85% 82% 76% 47% 2019 2020 2021 2022 2023 1H 2024 Pre let contracts =lease agreement has been signed before or during construction (before completion) Investor presentation 1H 2024 results, August 2024
Slide 30: Our clients: partnership delivering growing income streams
3. 1H 2024 LEASING RESULTS - OUR CLIENTS Partnership that deliver robust & growing income streams STRONG OPERATING METRICS 1.13 mn sqm 92% 1) 100% 100% 99% 2) Leased area Occupancy Retention rate Lease contracts Rent collection indexed with EURO (in 60 days) HICP without CAP 1) Occupancy excluding t
Slide 31: Diversified tenants' mix
3. 1H 2024 LEASING RESULTS Diversified tenants’ mix LONG-TERM CONTRACTS AND DIVERSIFICATION OF TENANTS FROM A VARIETY OF INDUSTRIES CREATES A BALANCED AND STABLE YIELDING PORTFOLIO E-commerce Retail E- commerce 13% Retail 28% Average duration of lease contracts 26% 7.8 years Logistics Manufacturing
Slide 32: WAULT vs. European competition
3. 1H 2024 LEASING RESULTS WAULT vs. European competition WAULT (YEARS) 8.3 7.9 7.8 7.1 6.5 5.3 5.3 4.6 VGP Tritax MLP Montea CTP WDP Catena Intervest Notes: based on last reported financials as at 31.12.2023 except CTP data as of 30.06.2024 MLP GROUP 1Q 2023 RESULTS Investor presentation 1H 2024 re
Slide 33: Top current tenants
3. 1H 2024 LEASING RESULTS TOP 10 CURRENT TENANTS PROVIDE 34% OF ANNUAL RENTAL INCOME (IN SQM) 61 433 57 195 47 272 44 088 43 817 Top 10 Tenants 41 762 provide 26 690 32 977 34% of annual rental 26 407 income 25 187 MLP GROUP 1Q 2023 RESULTS Investor presentation 1H 2024 results, August 2024 33
Slide 34: 4. Financial Activity in 1H 2024
4. FINANCIAL ACTIVITY IN 1H 2024 Investor presentation 1Q 2024 results, May 2024 34
Slide 35: Balance sheet in EUR ths
4. FINANCIAL ACTIVITY Key points in 1H 2024 – Balance sheet in EUR ths As at As at 30.06.2024 31.12.2023 in ths EUR 30.06.2024 31.12.2023 in ths EUR Non-current assets Equity Property, plant and equipment 6 249 5 677 Share capital 1 307 1 307 Intangible assets 10 22 Share premium 105 071 105 071 Int
Slide 36: Profit & loss statement in EUR ths
4. FINANCIAL ACTIVITY Key points in 1H 2024 – Profit & loss statement in EUR ths For the six months ended 30 June 2024 2023 in ths EUR Rental income 25 179 21 719 Revenue from property management services 18 355 18 537 Costs of self-provided property management services (16 312) (15 020) Gross opera
Slide 37: Financial position in EUR mn
4. FINANCIAL ACTIVITY Key points in 1H 2024 - Financial position in EUR mn 1H 2024 1H 2023 1H 2022 1H 2024 YE 2023 YE 2022 CHANGE 1H 2024 1H 2023 CHANGE 1H 2022 CHANGE (IN EUR (IN EUR (IN EUR (IN EUR (IN EUR (IN EUR (%) (IN %) (IN %) (p.p.) (IN %) (%) MN) MN) MN) MN) MN) MN) INVESTMENT 1 172.5 1 044
Slide 38: Financial position in PLN mn
4. FINANCIAL ACTIVITY Key points in 1H 2024 - Financial position in PLN mn 1H 2024 1H 2023 1H 2022 1H 2024 YE 2023 YE 2022 CHANGE 1H 2024 1H 2023 CHANGE 1H 2022 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 5 057.0 4 541
Slide 39: EPRA ratios
4. FINANCIAL ACTIVITY Key points in 1H 2024 – EPRA ratios 1H 2024 YE 2023 CHANGE (IN PLN MN) (IN PLN MN) (%) EPRA NRV 3 057 2 726 12% EPRA NTA 3 056 2 726 12% EPRA NDV 2 678 2 396 12% 1H 2024 1H 2023 CHANGE (IN PLN MN) (IN PLN MN) EPRA Earnings 58.3 99.2 -41% Company adjusted EPRA earnings* 48.6 53.
Slide 40: Financial position: LTV, ICR and FFO
4. FINANCIAL ACTIVITY Key points in 1H 2024 - Financial position AS AT 30.06.2024 FFO (IN EUR MN) LTV1) 37.5% 12,6 ICR 2.0x -25% 9,5 NAV in EUR mn 621 Financial debts in EUR mn (all-in) 491 among which: – Bank loans (secured on MLP's assets) in EUR mn2) 376 – Bonds (unsecured on MLP's assets) in EUR
Slide 41: Revenues and costs
4. FINANCIAL ACTIVITY Key points in 1H 2024 - Financial position REVENUES COSTS (IN PLN MN) (IN PLN MN) Developed space Developed space as atspace Developed 30.06.2023 as at 30.06.2024 +1% as at 31.03.2023 1 066 146 1 160 830 1 015 545 sqm 1 117 612 sqm Recharge of utility costs sqm sqm -19% 39.2 48
Slide 42: Net Asset Value Growth
4. FINANCIAL ACTIVITY Net Asset Value Growth NET ASSET VALUE (IN MN PLN) NET ASSET VALUE (IN MN EUR) 621 2 678 2 498 533 551 2 396 1 825 397 1 212 263 939 220 815 190 2018 2019 2020 2021 2022 2023 1H 2024 2018 2019 2020 2021 2022 2023 1H 2024 Investor presentation 1H 2024 results, August 2024 42 MLP
Slide 43: NAV contribution
4. FINANCIAL ACTIVITY Net Asset Value Growth NAV CONTRIBUTION (IN MN PLN) 98.7 -34.5 -57.6 275.0 2 677.5 2 395.6 Equity as at 31.12.2023 Gain (loss) on revaluation of EBIT (without revaluationon Net finance income Income tax Equity as at 30.06.2024 investment property investment property) Investor p
Slide 44: Loans and bonds
4. FINANCIAL ACTIVITY Loans and bonds EXISTING BANK LOANS BY MATURITY IN EUR MN • MLPG is a reliable financing partner, with a solid financial position. • Undrawn credit line for EUR 86.1 mn and new bank facilities being 183 finalized for the amount of EUR 44.2 mn (the binding TSs have been counters
Slide 45: Rental income and like-for-like growth
45 4. FINANCIAL ACTIVITY RENTAL INCOME LIKE-FOR-LIKE RENTAL GROWTH IN PLN MN MAIN DRIVERS 8.2 -0.3 +15.1% 108.5 100.6 7.3% -1.0% renegotiations/ new contracts 0.1% 8.4% indexation 5.4% -0.6% exchange rate change -6.5% Rental income in the six Passing rent Rent generated Rental income in the six 1HY2
Slide 46: Annualized future rental income in PLN
4. FINANCIAL ACTIVITY 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 2024 and renewals signed in 1H 2024 93% 7% 100% 1 043 065 sqm 82 678 sqm 1 125 743 sqm 5,1
Slide 47: Annualized future rental income in EUR
4. FINANCIAL ACTIVITY ANNUALIZED FUTURE RENTAL INCOME BASED ON ALL SIGNED CONTRACTS (IN MN EUR) 55.4 52.4 44.6 37.5 30.3 25.9 2019 2020 2021 2022 2023 1H 2024 Investor presentation 1H 2024 results, August 2024 47 MLP GROUP 1Q 2023 RESULTS
Slide 48: Change in property valuation in 1H 2024
4. FINANCIAL ACTIVITY CHANGE IN PROPERTY VALUATION IN 1H 2024 (IN MN PLN) 552 4 999 4 483 -36 YE 2023 FX The change in valuation 1H 2024 The chart above does not include value of Perpetual Usufruct. * Due to the fact the MLP Group values its property portfolio twice a year. The valuation change in 2
Slide 49: The composition of the revaluation
4. FINANCIAL ACTIVITY THE COMPOSITION OF THE REVALUATION IN PLN MN 2Q 2024 (224) 10 512 GAIN ON REVALUATION: +299 1Q 2024 (24) (40) 40 LOSS ON REVALUATION: -24 FX valuation change CAPEX and other adjustments Investor presentation 1H 2024 results, August 2024 49 MLP GROUP 2022 RESULTS
Slide 50: 5. Key Challenges 2024
7. SUSTAINABLE 5. KEY CHALLENGES 2024 DEVELOPMENT Investor presentation 1Q 2024 results, May 2024
Slide 51: MLP Group plans for 2024
5. KEY CHALLENGES MLP Group plans for 2024 In 2024 we lease our Business Park Projects in Vienna, Schalke (Gelsenkirchen), Łódź and Big-Box projects in Poznań, Idstein (Frankfurt am Main), Berlin- Spreenhagen. Those projects shall significantly contribute not only to our rental but also to NAV in 20
Slide 52: MLP Group plans for 2024: projects and timelines
5. KEY CHALLENGES MLP Group plans for 2024 DEPLOYING ACQUIRED PLOTS START CITY LOGISTIC PROJECTS MLP Wrocław West (2nd stage) MLP Business Park Poznań Building permit for the buildings expected 1-2Q 2025 and subsequent start of construction approx. 32 000 sqm of warehouse and office area 2Q 2025, -
Slide 53: City Logistics by portfolio's Gross Asset Value
5. KEY CHALLENGES 2024 City Logistics (MLP Business Parks) by portfolio’s Gross Asset Value as at 30.06.2024 as at YE 2028 13% TARGET 30% 70% 87% Big Box City Logistic MLP BUSINESS PARK SCHALKE MLP BUSINESS PARK ŁÓDŹ MLP BUSINESS PARK BERLIN MLP BUSINESS PARK POZNAŃ Investor presentation 1H 2024 res
Slide 54: Gross Asset Value 1H 2024 & YE 2028 by asset type
5. KEY CHALLENGES 2024 Gross Asset Value 1H 2024 & YE 2028 by asset type as at 30.06.2024 as at YE 2028 4% 4% 18% TARGET 33% 63% 78% POLAND GERMANY & AUSTRIA ROMANIA Investor presentation 1H 2024 results, August 2024 54 MLP GROUP 2022 RESULTS
Slide 55: 6. ESG Strategy
6. ESG STRATEGY Investor presentation 1Q 2024 results, May 2024
Slide 56: ESG Strategy for MLP Group S.A.
6. ESG STRATEGY For MLP GROUP S.A. All Business Partners of MLP Group are bound by the Code of Good Cooperation, which outlines our ethical standards and principles of cooperation with Tenants and all other Business Partners. The preparation of this document stems from our ESG strategy and our commi
Slide 57: ESG driven by economics
6. ESG STRATEGY MLP GROUP S.A. => ESG driven by economics 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 • biodiversity S - Social goal Drive
Slide 58: ESG Strategy for MLP Group S.A.
6. ESG STRATEGY For MLP GROUP S.A. G - Governance goal Integrating ESG into business operations and aligning corporate and societal interests Tasks to achieve this goal: • assessing the impact of investments on human rights • climate change as an important aspect considered in decision-making • esta
Slide 59: Thank you!
Thank you! MLP GROUP S.A. ul. 3 Maja 8, 05-800 Pruszków, tel. +48 22 738 30 10 ir@mlpgroup.com www.mlpgroup.com