JSE-listed Echo Polska Properties (EPP) has posted growth in distributable earnings to €59.2-million and a distribution per share of €0.8 for the nine months ended September 30.
CEO Hadley Dean said during a presentation on Thursday that the company was pleased with another robust performance, with all key indicators in line with expectations.
Net profit for the period amounted to €56.41-million, while total net asset value (NAV) totalled €844-million equating to an NAV per share of €1.20. Footfall in the retail portfolio increased 5.1% during the period with sales up 9.6%. The loan-to-value ratio remained static at 52.7%, with an average cost of debt of 2.09%.
“Notably, we progressed with our strategy of becoming the leading retail landlord in Poland with the acquisition of Solna, in Northern Poland, and the opening of phase three of Outlet Park Szczecin, adding 3 330 m² to the centre and €0.7-million of yearly net operating income (NOI).”
Post period-end, EPP announced its €692-million acquisition of the M1 portfolio, comprising 12 retail properties as well as the disposal of three offices. “We are now closer to our aim of leveraging both our scale and tenant relationships to be a leading cash-generating property company with consistent high returns to shareholders.”
The group’s portfolio with retail gross lettable area (GLA) increased from 402 638 m² to 426 845 m² during the period. The number of retail properties increased from ten to 15 during the nine months under review.
Vacancies in the retail portfolio stood at 1.66%, while rent-to-sales improved to 10.1%, with an occupancy cost ratio of 13.3%. The weighted average lease term by GLA stood at 5.30 years and 4.74 years by NOI.
The office portfolio totals 188 795 m² in GLA and recorded vacancies currently stand at 2.7%. The weighted average lease term by NOI is 3.8 years and 3.7 years by GLA.