The Warimpex Group achieved a solid operational performance in the first three quarters of 2021. The hotel segment in particular recovered in comparison to the previous year. The Group’s result for the period improved from a loss of EUR 31.2 million to a gain of EUR 2.5 million. The result for the third quarter alone has also climbed into positive territory, rising from minus EUR 9.4 million to EUR 0.8 million.
Positive result for the first three quarters of 2021
Revenues from the rental of office properties declined by 5 per cent to EUR 14.9 million compared with the first three quarters of 2020. This can be attributed to annualised average depreciation of the rouble by 12 per cent versus the prior-year period. Following a difficult year in 2020, which was dominated by hotel closures and revenue declines due to the pandemic, the hotel segment enjoyed positive developments again: Revenues increased by 10 per cent to EUR 3.3 million. Total revenues dropped by 2 per cent to EUR 19.2 million, while the expenses directly attributable to revenues were reduced by 23 per cent to EUR 6.9 million, in part due to coronavirus aid measures. This results in a gross income from revenues of EUR 12.2 million, which represents an increase of 16 per cent versus the prior year.
EBITDA increased from EUR 1.8 million to EUR 7.9 million due to the higher gross income and lower administrative expenses. EBIT improved considerably, climbing from minus EUR 8.9 million to EUR 8.3 million. Along with the higher operating result, this can be attributed to a positive result from property valuations, compared with a measurement loss in the prior-year period.
Finance income (including earnings from joint ventures) went from minus EUR 20.2 million to minus EUR 5.4 million. This includes gains from currency translation in the amount of EUR 0.9 million (2020: loss of EUR 8.9 million) and losses from joint ventures of EUR 0.5 million (2020: loss of EUR 5.1 million) in connection with negative hotel results.
Overall, this led to an improvement in the result for the period for the Warimpex Group from minus EUR 31.2 million to EUR 2.5 million in the first three quarters of 2021.
Office developments in Poland, Russia, and Germany
Warimpex is currently focusing on making progress on current development projects. In Krakow, construction has begun on Mogilska 35 Office, which will offer roughly 12,000 square metres of lettable space. A building permit has been issued for the office project in Białystok. In line with the company’s strategy, construction will start as soon as an appropriate level of tenant interest has been secured. Also in Krakow, an office building with a total lettable floor area of roughly 21,000 square metres is in planning, next to the Chopin Hotel.
At AIRPORTCITY St. Petersburg, the building shell for Avior Tower 1 – which will offer roughly 16,000 square metres of lettable office space – has been completed. The building is scheduled to open in the second quarter of 2022.
Warimpex is planning an office building with roughly 13,800 square metres of lettable space next to the greet Hotel Darmstadt, which was recently renovated and rebranded. It will be very much in line with the current trends with regard to sustainability criteria. The preparation of a new development plan and the permit planning are already at an advanced stage.
The focus will continue to be on making preparations to begin construction, obtaining building permits, and continuing ongoing development. Warimpex places particular emphasis on the topic of sustainability in the construction and operation of all of its properties, with a focus on energy efficiency, the use of renewable energy sources, and the reduction of carbon dioxide emissions. With this in mind, the company will continue to strive to obtain sustainability certifications in the future. In Poland, the two office buildings Mogilska 43 Office in Krakow and Ogrodowa 8 Office in Łódź have been awarded the BREEAM In-Use – Excellent certification, which confirms the properties’ high environmental standards.