Mlp Group Sa · GPW:MLG
Mlp Group Sa — Q3 2022 Earnings Presentation
49 slides from Mlp Group Sa's earnings presentation, November 2022
Slide 1: MLP Group 3Q 2022 Results
MLP GROUP 3Q 2022 Results November 2022
Slide 2: Agenda and Team
AGENDA AND TEAM 1 MLP AT A GLANCE 3 2 EXECUTIVE SUMMARY 10 3 3Q 2022 LEASING RESULTS 23 4 STRONG EXPANSION 27 5 FINANCIAL ACTIVITY IN 1H 2022 34 6 SUSTAINABLE DEVELOPMENT 40 7 ESG STRATEGY 46 Radosław T. Krochta Monika Dobosz Agnieszka Góźdź Chief Executive Officer Chief Financial Officer Chief Deve
Slide 3: 1. MLP Group at a Glance
1. MLP GROUP AT A GLANCE
Slide 4: Leading Integrated European Logistics Property Platform
1. 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. Offers class-A warehouses, with strong commitmen
Slide 5: Strategy of Own Developments: Vertical Integration
1. 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 6: Our Portfolio: Two Property Types
1. 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 facto
Slide 7: Premium Class-A Asset Base
1. OUR PORTFOLIO Premium CLASS-A Asset Base Clear height of warehouse space: 10 m or 11.5 m ESFR sprinkler Gas heaters above installation docks LED Lighting 300 lux Skylights 2% of roof area Clear height Fire load above –10/11,5 m 4 000 MJ/sqm 6 T/sqm Hörmann gates Column grid of 12 m x 22.5 m 7 MLP
Slide 8: Premium Class-A Asset Base
1. 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. 8 MLP GROUP 3Q 2022 RESULTS
Slide 9: Construction Costs vs. Capital Value
1. OUR PORTFOLIO Construction costs vs. Capital Value Poland, Germany, Austria CONSTRUCTION COSTS VS. CAPITAL VALUE PER BUILDINGS’ IN SQM POLAND GERMANY & AUSTRIA 1 600 EUR 1 600 EUR 1 400 EUR 1 400 EUR 1 200 EUR 1 200 EUR 1 000 EUR 1 000 EUR 800 EUR 800 EUR 1 500 EUR 600 EUR 600 EUR 600 EUR 400 EUR
Slide 10: 2. 3Q 2022 Executive Summary
2. 3Q 2022 EXECUTIVE SUMMARY
Slide 11: Europe Industrial Market
2. EXECUTIVE SUMMARY Europe Industrial Market 2022 has been characterised by an increasingly uncertain macroeconomic backdrop. However, this has not had an impact on logistics demand, as take-up across Europe reached approximately 20 EUROPEAN TAKE-UP IN SQM MN million sq m, up 12% compared to the sa
Slide 12: Europe Industrial Market
2. EXECUTIVE SUMMARY Europe Industrial Market Occupiers continue to operate in a very challenging environment where they are moving from one crisis to the next. With the supply WEIGHTED EUROPEAN AVERAGE chain challenges of the Covid-19 pandemic period still ongoing and now being compounded by the en
Slide 13: Leasing Market - Poland (Demand)
2. EXECUTIVE SUMMARY General information on leasing market - POLAND DEMAND Gross demand so far this year stands at 2.39 mln sqm. Over 78% of the total demand is attributable to new deals and expansions, which enabled Poland to remain one of the most active industrial markets in Europe. Some 73% of n
Slide 14: Leasing Market - Poland (Supply)
2. EXECUTIVE SUMMARY General information on leasing market - POLAND SUPPLY During the first half of 2022, total stock of modern industrial space in Poland exceeded of 26.5 mln sqm, meaning that more than 2.4 mln sqm of new supply has been provided so far in 2022, and making the Polish market the fif
Slide 15: Leasing Market - Germany (Demand)
2. EXECUTIVE SUMMARY General information on leasing market - GERMANY DEMAND • The German logistics markets continue to perform at record level. With take-up of around 6.61 million m² (including owner-occupiers) by the end of September, the already outstanding result of the same period last year was
Slide 16: Leasing Market - Germany (Supply)
2. EXECUTIVE SUMMARY General information on leasing market - GERMANY SUPPLY • The German logistics market has been in excellent shape so far this year. Considering that a shortage of supply has been the main limiting factor in many markets to date, it is obvious that the letting markets are continui
Slide 17: Leasing Market - Austria
2. EXECUTIVE SUMMARY General information on leasing market - AUSTRIA • The logistics market in Vienna and the surrounding area set another record in the first half of the year. A total of around 100,000 sq m was let. The consistently development is related to the fact that the demand for modern logi
Slide 18: Leasing Market - Romania
2. EXECUTIVE SUMMARY General information on leasing market - ROMANIA • Romania's industrial market continued to perform impressively in Q3 2022, with gross demand reaching a record high of around 408,700 sqm, from 188,400 sqm in Q2 and 129,000 sqm in the same period of last year, according to real e
Slide 19: General - 3Q 2022
2. EXECUTIVE SUMMARY General – 3Q 2022 RENTS • Increase in new rentals (newly signed contracts) at the MLPG markets at approx. 24% • RENTS - existing lease contracts + ca. 8% (HICP for 1H 2022) LIMITED EXPOSURE TO FX DUE TO NATURAL HEDGE • All rents are either in EUR or denominated to EUR • All cont
Slide 20: Average Market Investment Yields
2. EXECUTIVE SUMMARY Average Market Investment yields: Poland, Germany, Austria & Romania POLAND Q3 2022 1H 2022 2021 2020 2019 2018 Warsaw 4.60 4.50 5.25 6.00 6.25 6.75 Silesia 5.30 5.00 5.25 6.25 6.25 6.75 Central Poland 5.30 5.00 5.25 6.15 6.25 6.75 Poznań 5.30 5.00 5.25 6.25 6.50 6.75 Wrocław 5.
Slide 21: MLP Group 3Q 2022 vs. 3Q 2021
2. EXECUTIVE SUMMARY MLP Group 3Q 2022 vs. 3Q 2021 LEASED AREA NET PROFIT NAV +24% +160% +33% RENTAL UNDER VACANCY RATE REVENUES* CONSTRUCTION +37% -2 p.p. +3% * excluding revenues related to Development Agreement 21 MLP GROUP 3Q 2022 RESULTS
Slide 22: Key Points in 2022 Onwards
2. EXECUTIVE SUMMARY Key points in 2022 onwards MLPG development strategy – significant focus on SBU (city logistic) as the product resilient to volatile economy and less exposed to rental cutthroat competition, a high growth potential product – addressing the retail evolution (e-commerce) 1 Diverse
Slide 23: 3. 3Q 2022 Leasing Results
GROUP ne me LEASING RESULTS
Slide 24: Leasing Results - Our Clients
3. LEASING RESULTS - OUR CLIENTS Partnership that deliver robust & growing income streams STRONG OPERATING METRICS TOP TEN CLIENTS BY GLA TENANT GLA THS SQM Occupancy Retention L-ShopTeam 57 195 rate rate GTV 56 261 99% 100% SPAR 45 361 Uniq Logistic 43 360 Electrolux 41 762 Rent WAULT collection Pa
Slide 25: Lease Agreements in 1-3Q 2022 - Record Ever
3. LEASING RESULTS Lease agreements in 1-3Q 2022 - RECORD EVER Current status LEASE AGREEMENTS IN SQM 300 000 269 703 250 000 250 000 +83% 200 000 YoY 147 458 150 000 100 000 50 000 0 1-3Q 2021 1-3Q 2022 Target for 2022 25 MLP GROUP 3Q 2022 RESULTS
Slide 26: Portfolio Vault and Leases Due to Expire
3. LEASING RESULTS Portfolio Vault and leases due to expire 80% 70% 8.6 years 100% 75.5% 60% Average term of lease Retention rate agreements 50% 40% 30% 14% 20% 10% 10% 0.5% 0% 2022 2023 2024 2025 >2026 % of leases due to expire 26 MLP GROUP 3Q 2022 RESULTS
Slide 27: 4. Strong Expansion
GROUP EXPANSION Ly l |
Slide 28: Strong Expansion and New Markets
4. STRONG EXPANSION and new markets Space Space Under Reserved New plots potential completed construction plots acqusition 1.6 mn 0.8 mn 0.2 mn 208 ha 34.2 ha sqm sqm sqm Gorzów Poland Benelux Berlin Wielkopolski Warsaw Unna Poznań Niederrhein Łódź Zgorzelec Gelsenkirchen Wrocław Lublin Cologne Bier
Slide 29: Strong Expansion and New Plots Reservation
4. STRONG EXPANSION and new plots reservation Poland Benelux Berlin Poznań Łódź Essen Linden Gliwice Kraków New plots reservation in Q3 2022: Germany • Łódź – 25 ha • Poznan– 20 ha • Gliwice – 12 ha • Kraków – 5 ha Austria Romania • Linden – 20 ha • Berlin – 5 ha • Essen – 9.5 ha 29 MLP GROUP 3Q 202
Slide 30: Accelerated Landbank Acquisitions
4. ACCELERATED LANDBANK ACQUISITIONS Replenishing & growing development capacity EUR 11.5 mn 52% x2 EUR 74 mn In Q3 2022 EUR 11.5 mn 52% situated adjacent to Total landbank of 1.6 mn Total land bank valued invested increasing our existing or new parks sqm landbank offers at EUR 74 mn landbank by 18%
Slide 31: Projects Under Construction: Poland & Germany
4. PROJECTS UNDER CONSTRUCTION Poland & Germany MLP POZNAŃ WEST II MLP POZNAŃ WEST II MLP BUSINESS PARK POZNAŃ MLP CZELADŹ MLP ŁÓDŹ MLP PRUSZKÓW II MLP LOGISTIC PARK UNNA MLP BUSINESS PARK BERLIN I 31 MLP GROUP 3Q 2022 RESULTS
Slide 32: Projects Planned in 2022
4. PROJECTS PLANNED IN 2022 Poland & Germany & Austria & Romania MLP BUSINESS PARK MLP POZNAŃ MLP WROCŁAW MLP BUCHAREST WEST NIEDERRHEIN MLP GORZÓW MLP PRUSZKÓW II MLP BUSINESS PARK VIENNA 32 MLP GROUP 3Q 2022 RESULTS
Slide 33: Key Points for 2022: Phasing of Projects
4. KEY POINTS FOR 2022 Phasing of projects in Poland, Germany, Romania & Austria START OF THE PROJECTS MLP Łódź MLP Business Park Łódź MLP Business Park Poznań MLP Poznań West (Dąbrówka) MLP Gorzów MLP Wrocław MLP Wrocław West MLP Pruszków II MLP Poznań (Koninko) MLP Czeladź MLP Zgorzelec MLP Busine
Slide 34: 5. Financial Activity in 3Q 2022
5. FINANCIAL ACTIVITY IN 3Q 2022
Slide 35: Key Points in 3Q 2022 - Financial Position
5. FINANCIAL DATA Key points in 3Q 2022 - Financial position 3Q 2022 3Q 2021 CHANGE YE 2021 3Q 2022 YE 2021 CHANGE 3Q 2021 3Q 2022 3Q 2021 CHANGE YE 2021 (IN PLN (IN PLN (IN PLN (IN PLN (IN PLN (IN PLN (IN %) (IN %) (IN %) MN) MN) MN) MN) MN) MN) INVESTMENT 4 528.3 3 394.5 33% 2 915.5 REVENUES 196.8
Slide 36: Key Points in 3Q 2022 - Financial Position
5. FINANCIAL DATA Key points in 3Q 2022 - Financial position REVENUES IN PLN MN +37% Recharge of utility costs Developed space Developed space 49.3 as at 30.09.2021 as at 30.09.2022 +73% 728 071 sqm 917 801 sqm Recharge of service charges 28.5 +28% 39.2 +29% 30.4 Rental income Utilities 36.1 +28% +3
Slide 37: Key Points in 3Q 2022 - Financial Position
5. FINANCIAL DATA Key points in 3Q 2022 - Financial position As at 30 September 2022: LTV1) 35.5% FFO IN EUR MN ICR 3.8x 15 13.7 2 428 14 NAV in PLN mn 13 12 354 11 Financial debts in EUR mn (all-in) 10 9.2 among which: 9 273 8 – Bank loans (secured on MLP's assets) in EUR mn 7 – Bonds (unsecured on
Slide 38: Loans and Bonds
5. FINANCIAL DATA Loans and bonds • MLPG is a reliable financing partner, with a solid EXISTING BANK LOANS BY MATURITY financial position. IN EUR MN • Having signed bank loan agreements with Polish 200 167 and German banks MLP has secured financing 150 of EUR 96 mn for further development. 100 • On
Slide 39: MLP Quotes vs. Competition
5. FUND RAISING IN 2H 2022 MLP quotes vs. competition MARKET CAP MARKET CAP P/NAV P/E P/NAV P/E (in mn EUR) (in mn EUR) MLP Group 0.66 323 2.00 VGP 2.57 1,840 2.68 Segro 1.28 11,753 2.52 GTC 0.65 740 12.44 CTP 1.82 4,800 4.04 Echo Investment 0.74 260 6.01 Prologis 3.84 105,593 30.26 Marvipol 0.37 49
Slide 40: 6. Sustainable Development
6. SUSTAINABLE DEVELOPMENT
Slide 41: Green Industrial Developer: Sustainability and Innovation
6. GREEN INDUSTRIAL DEVELOPER Sustainability and innovation • Implementing a strategic project to build solar PV farms on the roofs of its existing and new logistics parks. • Generate ~ 9 to GWh of green energy in 2024. 100% RENEWABLES • The green energy will be used primarily for internal consumpti
Slide 42: PV Power Plants Programme
6. GREEN INDUSTRIAL DEVELOPER PV Power Plants Programme POLAND: GERMANY & AUSTRIA: • MLP Business Park Berlin 750 kWp • Until end of 2022 installation of approximately 6,3 MWp • Expected income 60k EUR 2022 of total power in 11 MLP Parks, 100k sqm of roofs. • MLP Unna 530 kWp • Expected income of ap
Slide 43: PV Power Plants Programme in Germany
6. GREEN INDUSTRIAL DEVELOPER PV Power Plants Programme in Germany WE ALREADY BUILT PV INSTALLATIONS: • MLP Business Park Berlin PV power ~ 500 kWp In this year we will develop next: • MLP Business Park Berlin PV power ~ 250 kWp • MLP Unna PV power ~ 530 kWp Total power of PV in MLP logistic parks i
Slide 44: PV Power Plants Programme
6. PV POWER PLANTS PROGRAMME PV INSTALLATIONS IN POLAND DIVIDED INTO 2 PHASES: 1 1. 2022, Implementation of parks < 50 kWp and Development of the 50 kWp installation and implementation of new installations > 50 kWp (self-consumption ~95%) • Investment in 2022 - PLN 1.4 mn • Income - PLN 4.16 mn • Ma
Slide 45: PV Issues in Poland
6. PV POWER PLANTS PROGRAMME PV issues in Poland • Problems with the overloaded electrical grids - modernization required • Distribution system operators evaluate applications approximately 180 to 225 days • Connection conditions issues by grid operators assume long connection times, even up to 3 -
Slide 46: 7. ESG Strategy
7. ESG STRATEGY
Slide 47: ESG Strategy for MLP Group S.A.
7. 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.
7. 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 processes •
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