Vienna/Warsaw, 29 November 2023 – The Warimpex Group succeeded in generating a clearly positive result amidst the still challenging market conditions in the first three quarters of the year. Operating business remained strong, with a 16 per cent increase in revenue and a 5 per cent improvement in EBITDA. After depreciation, amortisation, and property valuations, this resulted in a profit for the period of EUR 3.2 million, down from EUR 13.6 million in the prior-year period. The focus of recent business activities has been on the successful adoption of a new zoning plan for office and commercial property developments in Darmstadt as well as the completion of Mogilska 35 Office in Krakow after the reporting date.
“Our long-standing strategy allows us to retain the necessary flexibility and the long-term stability – even amidst challenging market conditions – to excel at getting real estate projects off the ground and successfully implementing them,” commented Warimpex CEO Franz Jurkowitsch. “As a result, we are able to present another clearly positive result for the first three quarters of 2023.”
Positive development of operational activities
The trend seen in the first two quarters continued, and Warimpex’s total revenues improved by 16 per cent to EUR 37.5 million. This can be attributed to higher revenues due to higher occupancy for the Polish office properties as well as to Avior Tower in St. Petersburg, which has been fully occupied since January 2023. In contrast to the prior year, which saw the completion of a transaction in Budapest, no property sales have been executed this year. EBITDA thus increased by 5 per cent from EUR 15.9 million to EUR 16.7 million, primarily due to the increase in revenues.
EBIT fell from EUR 21.5 million to EUR 14.7 million as a result of a decline in the result from depreciation, amortisation, and remeasurement from EUR 5.5 million to minus EUR 2 million. The financial result went from minus EUR 5.6 million to minus EUR 8.9 million, primarily due to lower exchange rate gains and slightly higher interest expenses. Only 20 per cent of Warimpex’s financial liabilities are subject to variable interest rates, so interest rate risk is considered to be manageable. All in all, this resulted in a profit for the period of EUR 3.2 million, down from EUR 13.6 million in the prior-year period.
Office developments with a focus on sustainability
Mogilska 35 Office in Krakow with 11,900 square metres of net floor space and BREEAM – Excellent certification was completed according to plan after the reporting date. The building is just under half occupied at present. The tenant adaptation work is currently under way.
Office developments in the German city of Darmstadt represent a major future project for Warimpex, and the company has property reserves for this purpose at Telekom City in the immediate vicinity of the greet hotel. An important milestone was reached with the successful adoption of the zoning plan in September. As a result, office and commercial properties with up to 77,500 square metres of floor space can now be built. The planning for the first project, West Yard 29 with gross floor space of roughly 13,800 square metres, is already at an advanced stage. The application for a building permit was submitted after the reporting date. The start of construction will depend on finding a favourable timeframe on the market and securing tenant interest, and will be in the second half of 2024 at the earliest.
Further developments are in the pipeline, such as the MC 55 multi-use building in Białystok with roughly 38,500 square metres of space and the Chopin co-living/office project in Krakow with roughly 21,200 square metres of space. Building permits have already been issued for both of these real estate projects. No new developments are planned in Russia.
Outlook for 2024
Management continues to keep a close eye on the geopolitical developments and their effects, such as inflation and interest rate hikes. “From an operational standpoint, the focus is on pushing ahead with our projects on existing property reserves,” explained Franz Jurkowitsch. “In addition, the entire Group is pursuing the goal of confirming the implementation of sustainability concepts through appropriate property certifications and creating high-quality, modern work environments.”
Key financial figures for the first three quarters of 2023 at a glance:
in EUR ’000
Investment Properties revenues
Development and Services revenues
Expenses directly attributable to revenues
Gross income from revenues
Gains or losses from the disposal of properties
Depreciation, amortisation, and remeasurement
Profit or loss for the period
Net cash flow from operating activities
Gross asset value (GAV) in EUR millions
NNNAV per share in EUR
End-of-period share price in EUR