Poland’s largest retail landlord, EPP, has released its unaudited, condensed, and consolidated financial statements for the six months ended 30 June 2021, reporting an increase in its net property income of 12% to €59.2 million (June 2020: €52.6 million).
While financial costs marginally increased to €22.3 million (June 2020: €21.4 million), interest costs remained stable at 2.6% with an average hedging level of 81%.
The REIT’s distributable earnings increased to €33.2 million (June 2020: €21.7 million) with distributable earnings per share increasing by 54%, to 3.66-euro cents (June 2020: 2.38-euro cents).
However, net loan-to-value (LTV) marginally increased to 55.8% (December 2020: 54.8%) with net asset value per share increasing by 3% to €1.12 (December 2020: €1.09).
At period end, EPP owned and managed approximately 1 000 000m2 of retail GLA and 160 000m2 of office GLA, including joint venture projects. As at 30 June 2021, the REIT owns a portfolio of 29 retail properties and six high-quality office complexes located in regional cities within Poland.
100% of EPP’s retail GLA is operational, increasing by 110 000m2 with the addition of four retail parks. Footfall across its portfolio continues to trend positively with August 2021 recording 84% of 2019 footfall levels.
High conversion rates have continued during the period and tenant sales in July were at 102% compared to the same reporting period in 2019. Retail occupancy remained stable at 95.4% with its retail WALE by GLA as per September 2021 at approximately 5 years.
The company’s investment properties value increased by 6% to €2.25 billion (December 2020: €2.13 billion).
EPP was able to meet all its financial obligations, within its debt covenant levels of 67% set by credit providers.
While the board has resolved not to declare a dividend at this stage to preserve liquidity, the decision on the 2021 dividend will be made when the company’s full year results are approved with forecasted full year distributable earnings per share of between 7 and 7.25-euro cents per share for the year ended 31st December 2021.
