Echo Investment S.a. · GPW:ECH
Echo Investment — Q1 2025 Earnings Presentation
57 slides from Echo Investment's earnings presentation, May 2025
Slide 1: Echo Investment Q1 2025 results presentation
Echo Investment Q1 2025 results presentation
Slide 2: Disclaimer
Disclaimer Neither this presentation (the “Presentation”), nor any copy of it, nor the “expect”, “anticipate”, “estimate”, “believe”, “intend”, “project”, “goal” or appropriate for making determinations relating to market information or information contained herein is being issued or may be distribu
Slide 3: Agenda
Agenda 01 Highlights 02 Segments Outlook 03 Key Financial Data 04 Living - Residential for Sale 05 Living - Resi4Rent 06 Living - Student Housing 07 Commercial - Office and Retail 08 ESG 09 Financials 10 Q&A
Slide 4: Highlights
Highlights 01
Slide 5: Summary of strategic focus
Highlights 42 Summary of strategic focus Commercial sector o Disinvestment of operating office and retail assets on the investment market which has become more active and liquid from Q4 2024 to reduce balance sheet and increase liquidity o Focus on CBD Warsaw as an interesting market for the Group a
Slide 6: Assets targeted to be sold in 2025
Assets targeted to be sold in 2025 Highlights 43 Modern buildings in core locations with all ESG criteria in place to be disposed on the investment office and retail market that shows signs of recovery Libero Brain Park I Brain Park II City II Towarowa22 B 100% leased ≈90% leased, Warsaw ≈100% lease
Slide 7: Warsaw Towarowa 22
Highlights 44 WARSAW TOWAROWA 22 landmark destination project in Warsaw city centre T22 Office House with area of 32,500 sqm financed by Santander Bank and PeKaO has been already put into operation with approx. 90% of area already leased to international prime tenants including anchor from media sec
Slide 8: Office market perspectives for 2025/2027
Office market perspectives for 2025/2027 Highlights 45 Office supply shortage and strong leasing market – JLL data At the begining of 2025, regional cities in Poland offered 6.78 million sqm of office space In 2024 approx. 121,000 sqm of new office space was delivered, which is about 160,000 sqm les
Slide 9: Q1 2025 Highlights
Q1 2025 Highlights Highlights 46 Residential Retail/Finance Residential sales of 530 apartments Refinancing of GALERIA LIBERO in by Echo Group in Q1 2025 (410 in Q1 Katowice by PeKaO and PKO banks 2024), 29% increase y/y consortium in March amounted to EUR 61.4m 24 apartments handed over in the same
Slide 10: Post Q1 Highlights
Post Q1 Highlights Highlights 47 Residential Finance Sale agreement of the plot at Chlodna Recommendation of the Archicom str. in Warsaw for the price of PLN Management Board regarding the 96m and direct, strategic reinvestment proposed dividend payment from net into new project in Krakow with profi
Slide 11: Segments outlook
Segments 02 outlook
Slide 12: Living - Residential for Sale
Segments Outlook 49 Living - Residential for Sale Current situation Archicom / Echo actions Strong residential sales in Echo Group in Q1 2025 of 530 units - 9,000 units were sold in Q1 2025 on the 6 key Polish markets, 29% increase y/y 6% less comparing to Q4 2024 We are effectively building our mar
Slide 13: Living - Residential for Rent
Segments Outlook 50 Living - Residential for Rent Current situation Echo actions Almost 5,100 units already under operation at the end of Q1, more 22,340 apartments is the existing rental housing stock in the than 3,000 units under construction PRS sector in Poland at the end od 12’2024, according t
Slide 14: Living - Student Housing
Segments Outlook 51 Living - Student Housing Current situation Echo actions Poland is the fifth largest student market in Continental Europe with a Construction of 1,200 beds started in H1’24 to be delivered to the student population of c. 1.2m (expected to reach 1.4 million by the end market by Sep
Slide 15: Commercial - Office
Segments Outlook 52 Commercial - Office Current situation Echo actions Warsaw’s Office market continues to evolve, adapting to reduced Echo signed in Q1 2025 lease agreements and LOI for 16,500 sqm, supply and emerging office and workplace strategies; in Q1 2025, many negotiations to be closed in ne
Slide 16: Commercial - Retail
Segments Outlook 53 Commercial - Retail Current situation Echo actions Turnovers of shopping centres and retail parks in 2024 increased by Constant improvement is observed in Galeria Mlociny in Warsaw 4.3% vs 2023; footfall in 2024 changed +0,2% vs previous year with an increase in turnover in Q1 20
Slide 17: Construction
Segments Outlook 54 Construction Current situation Echo actions Construction and assembly production in March was lower by 1.1%, Construction cost budgets remained stable for several quarters after growth in February, comparing to the same period of 2023; this On the market with stable cost levels E
Slide 18: Key Financial Data
Key Financial Data 03
Slide 19: Q1 2025 results vs. PAP consensus
Q1 2025 results vs. PAP consensus Key financial data 56 OUR RESULTS Actual results [PLN m] PAP Consensus IN Q1 2025 Q1 2025 Q1 2024 Q1 2025 Q1 2025 (average) (range) PLN 94.6m Revenue 94.6 358.9 72.8 69.0 – 80.1 Revenue in Q1 2025 Operating profit -65.6 43.4 -84.7 (-91.9) – (-80.0) PLN -99.2m Profit
Slide 20: Q1 2025 results
Key financial data 57 Q1 2025 results Q1 2025 vs. Q1 2024 net profit comparison Q1 2025 vs. Q1 2024 o Less residential handovers (24 in 20,0 2025 vs. 415 in 2024) - see next page for entire 2025 outlook 13,3 0,0 o More margin from R4R and margin from StudentSpace (PLN+5m) -20,0 o Higher finance cost
Slide 21: Q1 2025 results: handovers potential
Key financial data 58 Q1 2025 results handovers potential 2025+ 3000 2500 2000 ~2,400 units The majority of 2025 handovers to be concentrated on Q4 1500 1331 * Number of handovers resulting from planned end of construction 1000 of projects ~1 375* 500 415 293 319 338 260 179 ~600 65 ~400 24 0 2023 2
Slide 22: Book value vs. assets market value
Echo Investment Group book value vs. assets market value Resi for Sale Resi4Rent Student Space Towarowa 22 Commercial Total incl. 74% of Archicom 30% JV 30% JV commercial part excl.T22 30% JV in 30% JV Book value [k PLN] 409,719 313,018 32,755 62,112 769,512 1,587,116 BV per share [PLN] 0.99 0.76 0.
Slide 23: Living - Residential for Sale
Living - Residential for Sale 04
Slide 24: Highlights
Residential for Sale 61 Highlights Strong landbank of more than Sales of 530 apartments by Echo 11,600 units and 3,500 in offer is Group in Q1 2025 (y/y 29%) ideal for the present market situation Archicom is creating product Sale target of Echo Group for 2025 targeted to 1st time buyers on (more th
Slide 25: Stable sales on main markets in central locations
Residential for Sale 62 Stable sales on main markets in central locations Demand SUPPLY Supply • 9,000 apartments were sold in Q1 2025 on the primary market in 6 major cities • Number of apartments sold in Q1 2025 is 17% less than in Q1 2024 and 5% less • 13,400 apartments were launched in Q1 2025 (
Slide 26: Continued growth of the residential business
Residential for Sale 63 Continued growth of the residential business Sales of apartments (yearly) 530 units sold in Q1 2025 ca. (29% y/y) ca. 4,000 3,000+ 6,3k units under ca. 2,200 construction ca. 2,000 11,600 units secured in the landbank ca. 800 3,500 units in offer at the end of Q1 2025 2023 20
Slide 27: Apartment sales of Echo Group
Residential for Sale 64 Apartment sales of Echo Group Sale of Main projects Q1 2024 Q1 2025 apartments in Q1 2025 Sales Modern Mokotów I, III and VI, Stacja Wola III, Warsaw 98 105 Apartamenty M7, Flare 1000 Apartamenty Grzybowska 900 Przystań Reymonta, Gwarna, Południk 17, Sady 800 Katowice Wroclaw
Slide 28: Apartment handovers of Echo Group
Residential for Sale 65 Apartment handovers of Echo Group Handovers Handovers Q1 2024 Q1 2025 Main projects in Q1 2025 1400 Warsaw 60 0 - 1200 Katowice Sady nad Zieloną 2a, 1000 Cracow Wroclaw 259 5 River Point 6 Lodz 800 Poznan Poznan 22 0 - Wroclaw 600 Warsaw Boho, Fuzja Lofty G01, Lodz 59 19 Fuzj
Slide 29: Current offer of Echo Group
Residential for Sale 66 Current offer of Echo Group End of Q1 Current offer Main projects 2025 Offer Flare Apartamenty Grzybowska, Modern 4000 Warsaw 869 Mokotów I, III and VI, Stacja Wola III, Apartamenty M7 3500 Sady nad Zieloną, Południk 3000 Katowice Wroclaw 740 17, Przystań Reymonta, Cracow Gwa
Slide 30: Residential developer active on six markets
Residential for Sale 67 Residential developer active on six markets Projects under construction Total apartments in 86 projects: # of projects # of apartments City under construction 6,335 and 11,597 secured in landbank Archicom Echo Archicom Echo Wroclaw 11 1,833 Warsaw 4 1 745 554 Krakow 2 1 420 1
Slide 31: Living – Resi4Rent
Living – Resi4Rent 05
Slide 32: Highlights
Resi4Rent 69 Highlights 450 units in Warsaw Brewery and 269 Almost 5,800 Resi4Rent units on Wroclaw River Point are being sold put into operation until the unit-by-unit as Echo is benefiting from end of Q1 2025 strong residential market to achieve best returns Construction of 3,000 units to be compl
Slide 33: Institutional rental market in Poland
Resi4Rent 70 Institutional rental market in Poland PRS investment in Poland R4R’s share in institutional rental market in Poland Institutional rental market in Resi4Rent % market share Poland 22,340 5,079* 22 % units under operation in operation 11,800 3,042* units under 25 % units under constructio
Slide 34: Resi4Rent secured plots for over 10,500 units
Resi4Rent 71 Resi4Rent secured plots for over 10,500 units Resi4Rent to develop and operate 5,798 units are already completed in 20 projects almost 10,500 units until 2026: including 400 units delivered in Q1 2025 (2 projects) To be started 5,079 units works in portfolio at the end of Q1 2025 2025,
Slide 35: Living – Student Housing
Living – Student 06 Housing
Slide 36: Highlights
Student Housing 73 Highlights Student Space set-up as an Planned number of beds to be built independent platform, i.e. asset will be at least 5,000 within next 3 owner and operator with in-house to 5 years management and development team Equity for financing acquisition and development of the projec
Slide 37: Student Space starting projects: 1,700 beds under construction
Student Housing 74 Student Space starting projects: 1,700 beds under construction Six locations secured and confirmed by partners in premium locations in Warsaw and Krakow Construction of two projects in Krakow Wita Stwosza and 29 Listopada is continuing with 1,200 beds to be delivered in Q3 2025, W
Slide 38: Student Housing construction status
Student Housing 75 Student House Krakow 29 Listopada Student Housing construction status of 3 buildings in Krakow and 1 in Warsaw 2 buildings on WITA str. status: A building elevation works are in progress WITA Student House Krakow ph.1 window joinery is being installed on the 3rd floor fit-out work
Slide 39: Polish PBSA Market Overview I
Student Housing 76 Domestic student vs International students in 2024 Polish PBSA Market Overview I On average the number of international students in the EU grew between 2018 and 2023 by 5,5%. The domestic student number grew at the same time by only 0,7%. Total number of students in Poland (millio
Slide 40: Polish PBSA Market Overview II
Student Housing 77 Polish PBSA Market Overview II 785 598 Poland is currently witnessing a significant increase in the number of international students. In the academic 1 221 938 Students FT Students (64%) year 2023/2024, there were around 107,000 international students in Poland. They constituted a
Slide 41: Commercial - office and retail
Commercial - office and 07 retail
Slide 42: Highlights
Commercial 79 Highlights Towarowa 22 Office House has been Advanced negotiations with AFI put into operation and is Europe to acquire Echo’s 30% share ca. 90% leased to prime tenants of the T22 Office House Credit facility refinancing LIBERO Strong leasing interest in all Echo Shopping Centre in Kat
Slide 43: Fewer new offices, mixed-use functions and more renovations
Commercial 80 Fewer new offices, mixed-use functions and more renovations Warsaw Regional markets 6,000 sqm of new office space was delivered in Q1 2025; most of the new 2,400 sqm of new office space delivered to regional markets in Q1 2025, approx. supply planned for this year will enter the market
Slide 44: Towarowa 22 destination project
Commercial 81 Towarowa 22 destination project implementation plan of 2025 phases Office House T22B - construction finished in Q1, usage permit obtained and preparation of sale transaction to AFI Europe in Q2/Q3 2025 Apartments M7 by Archicom (I phase) - construction is continuing from Q2 2024 to Q3
Slide 45: Construction and leasing ongoing: Swobodna SPOT and WITA
Commercial 82 Construction and leasing ongoing: Swobodna SPOT and WITA SWOBODNA SPOT | WROCLAW 16,000 sqm GLA of the project under development Almost 40% leased or secured with well known tenants Exceptional office project in premium quality, in the centre of Wroclaw Latest technologies, green certi
Slide 46: CitySpace in modern office buildings in 5 regional cities
Commercial 83 CitySpace in modern office buildings in prestigious locations in 5 regional cities 5 Warsaw 12 1 (end of Q1 2025) Lodz locations in Poland 4 Wroclaw 1 4,209 Katowice 1 Krakow workplaces
Slide 47: Galeria Libero - retail centre in Katowice
Commercial 84 Galeria Libero - retail centre with a stabilized market position in Katowice The gallery has been awarded the BREEAM In-Use certificate and has joined the elite group of only 20 properties in Poland that can boast the prestigious BREEAM In-Use certificate at the OUTSTANDING level in ca
Slide 48: Galeria Mlociny with a stable position on the Warsaw market
Commercial 85 Galeria Mlociny with a stable position on the Warsaw market Shopping Mall is becoming the leading shopping destination and a popular meeting point in northern Warsaw, thanks to its strong retail and entertainment offer Great performance of the project confirmed by 97% occupation rate L
Slide 49: ESG
ESG 08
Slide 50: ESG in Echo Group in 2025
ESG 87 ESG in Echo Group in 2025 We are focusing on ESG to improve the efficiency of our business today and of our projects over the lifespan of the building We are focused on effective implementation of the ESG Strategy of Echo Investment Group, through individual tasks for 2025 for all our employe
Slide 51: Financials
Financials 09
Slide 52: Q1 2025 result
Financials 89 Q1 2025 result Revenues and margin in Q1 2025 (PLN m) Main source Actual results [PLN m] Q1 result drivers Sales Margin Margin % of revenue Residential 16.3 3.0 18%** Apartments sale Rents, fit-out, sale to Less resi handovers but higher sales y/y Commercial & other 78.3 29.7 38% R4R T
Slide 53: Stable balance sheet
Financials 90 Stable balance sheet with fully leased assets ready for disposal Assets Assets targeted for disposal PLN 7,061m [m PLN]] 7 061 total assets value as at 31.03.2025 6 773 (4.2% increase compared to 31.12.2024) Libero Investment properties & assets held for sale 1 493 1 474 Brain I+II PLN
Slide 54: Debt with extended maturity
Financials 91 Debt with extended maturity Equity and liabilities PLN 3,124m [m PLN] 7 061 Total long and short-term debt as at 31.03.2025 6 773 Short-term debt decreased by PLN 234m compared to 31.12.2024 480 Extending Short term financial debt 714 maturity of short term debt and Long-term debt incr
Slide 55: Bonds repayment and rollover done for 2025
Financials 92 Bonds repayment and rollover done for 2025 Bonds and RCF's in 2025 Maturity of bond debt Echo Investment: as of 20.05.2025 [m PLN] Echo repaid PLN 50m bonds maturing in Jan 2025 from existing funds and no further bonds to be issued in 2025 RCF debt facilities maturing in 2025 will be E
Slide 56: Q&A
10 Q&A
Slide 57: Echo Investment
© Echo Investment S.A. ECHO INVESTMENT Al. Solidarności 36 Kielce, Poland www.echo.com.pl