Polski Nieruchomosci S A : PHN Group Generated Rental Income of 43.6M for Q1 2024

PHN Group, thanks to rental income from new space, reported an increase in revenue from its key business segment, i.e. rental income, by PLN 13.8M in Q1 2024, up 24.2% year-on-year. Rental income increased from PLN 31.2M in Q1 2023 to PLN 43.6M in Q1 2024 (up 39.7%).

In Q1 2024, EBITDA amounted to PLN 7.7M and was PLN 2.4M (-23.8%) lower than in Q1 2023. Adjusted EBITDA (EBITDA adjusted for the change in the fair value of properties and the result on their disposal, damages and penalties in the rental segment) amounted to PLN 30.7M and was PLN 10.8M higher than in Q1 2023 (54.3%).

At the same time, due to, among others, impairment of the fair value of investment properties and higher financing costs, PHN Group reported a net loss of PLN 27.1M. The lower result on development and construction activities in Q1 2024 was mainly due to the investment cycle of ongoing residential projects and the postponed schedules of some ongoing construction contracts.

"The financial results achieved in the first quarter of this year are below our expectations. We recognize the need for a number of strategic actions and improvements. We trust that with the changes being implemented, we will improve profitability and financial standing of PHN Group in the coming quarters. Our priorities are to further improve our rental income and grow our real estate development business, which will be the foundation of our operations," said Wiesław Malicki, President of the Management Board, Polski Holding Nieruchomości.

In Q1 2024, PHN Group continued its investment program in the office, residential and logistics real estate sectors. In January 2024, PHN Group launched the VENA office development, which will provide the market with more than 15,000 sqm of modern rental space. In the pipeline is the MARINA by PHN project in Gdynia. There are also five residential projects currently under construction, namely KOLEJ NA 19, Osiedle ŁAN, Młoda Białołęka II, Osiedle Olimpijczyk II, and Willa Pana Tadeusza. Residential projects currently under construction will provide the market with more than 750 apartments in Warsaw, Wrocław, Łódź and Kraków. In the coming months, PHN Group plans to launch more investments, including in new regional markets - the pipeline includes a several-stage project in Bydgoszcz on Nakielska Street, a cosy development in downtown Warsaw and the first stage of an investment in Łężyca. In addition, the prestigious residential project in Gdynia will be continued. In the logistics sector, PHN Group plans to develop more projects - under the JV formula in Zgorzelec and in Pruszków, which will provide the market with more than 300,000 sqm of modern warehouse space.

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About Polski Holding Nieruchomości Group

Polski Holding Nieruchomości S.A is one of the largest groups in the Polish commercial property sector in terms of the market value of its portfolio. PHN Group has a diversified business profile - it is primarily active in the office, residential and logistics markets. PHN Group's portfolio comprises more than 150 standalone properties with a market value of approx. PLN 3.5B. PHN Group provides comprehensive rental and management services - it currently manages more than 500,000 sqm of leasable space. PHN Group owns about 270 hectares of land earmarked for projects in various market segments. PHN Group is also active in the construction sector - by providing general contracting, subcontracting and design services, as well as in the development sector as an investor - by carrying out projects related to the construction and sale of residential units and the construction of commercial buildings.

PHN Group's main market is Poland. PHN's activities in the rental segment are concentrated primarily in Warsaw and the largest regional cities, including the Tri-City, Poznań, Kraków, Katowice, Łódź and Wrocław. PHN Group also plans to develop new residential projects in new local markets, including Bydgoszcz and Łężyca. PHN has been listed on the Warsaw Stock Exchange since 13 February 2013.