EPP Announces Net Property Income of EUR 102.2 million in 3rd Quarter
Polish property owner EPP released 3rd quarter results for the nine months ended September 2018 indicating net property income is up 37% year on year to EUR 102.2 million. The JSE-listed company said earnings available for distribution per share were at EUR 8.75 cents, and the company is on track to meet its stated guidance of EUR 11.6-11.8 cents per share. Hadley Dean, CEO of EPP, said: “Operationally the business continues to perform well with like-for-like net rental income (NRI) growth for the nine months of 4.2%”. EPP CFO Jacek Baginski added: “We are pleased with the results and expect to deliver strong returns to our shareholders for the full year.” EPP’s net asset value for the period was EUR 990.8 million, equalling NAV per share of EUR 1.33, and up from a NAV of EUR 1.20 in the comparable quarter in 2017. The company completed the acquisition of the Marcelin shopping centre in Poznan during the quarter, and together with the completion of the first tranche of M1, this added 240 000 m2 of high-quality retail space during the first nine months of the year. Total investment properties in EPP’s portfolio now exceed EUR 2 billion in value. During the quarter, Poland became the 25th country in the world to be awarded developed economy status by FTSE Russell. This puts the country on equal footing with the United States, the UK, Japan and Germany. Dean reported: “The results show that the company’s retail-focused strategy is paying off as Polish consumers become more affluent. All the statistics indicate that the Polish population is becoming wealthier throughout the country. With low unemployment and the country’s fundamentals strong, we don’t expect this to change in the near future. As the leading owner of shopping centres in Poland we are well positioned to capitalise on the increased spending by Polish consumers.” FTSE Russell also added EPP to its FTSE EPRA Nareit Global Emerging Market Index. EPP, although it is a purely Polish company, has been included on the FTSE EPRA Nareit Emerging Index because it is traded on the JSE in South Africa which FTSE Russell still considers an emerging market. “The addition of EPP to the trading index is recognition that the company has become a key player in the European property landscape,” Baginski said. EPP is the largest owner of retail real estate in Poland. It operates like a REIT, with a current portfolio of 19 retail properties, six office buildings and two development sites in Warsaw, with one currently under construction, offering a total of over 835,000 m2 in Poland’s 20 biggest cities. EPP is committed to providing the best possible rates of return as well as great shopping experiences. EPP is listed on the stock exchanges in Johannesburg (JSE) and Luxembourg (Euro MTF). For more information please visit www.EPP-poland.com.