• Total revenues excluding Russia increase by 13 per cent versus prior-year period to EUR 15.7 million 
• Operating result (EBITDA) excluding Russia positive at EUR 0.9 million; positive operating result still expected for 2024
• Loss of EUR 42.8 million for period due to measurement losses, primarily in Russia 
• Focus on new projects in Poland and Germany with high sustainability standards and flexible mix of offerings

Vienna/Warsaw, 29 November 2024 – In the first three quarters of 2024, the Warimpex Group increased its total revenues excluding Russia by 13 per cent to EUR 15.7 million and achieved a positive operating result (EBITDA). However, measurement losses in connection with the sale of the Russian subsidiaries and property valuations outside of Russia as well as the negative financial result had a negative impact on the profit or loss for the period: All in all, this resulted in a loss of EUR 42.8 million. Due to the transaction in Russia at the end of October 2024 – and thus after the reporting date for the third quarter – Warimpex reported the Russian business activities as discontinued operations in the quarterly financial statements in order to present a transparent picture of the current earnings situation.

“The sale of our projects at AIRPORTCITY St. Petersburg and thus the complete withdrawal from Russia were challenging, but necessary,” explained Warimpex CEO Franz Jurkowitsch. “By concluding this transaction, we are leaving significant uncertainties and risks in relation to the tense geopolitical situation behind us. Not least, it has also allowed us to reduce our financial liabilities, ensuring a lower interest burden in the future.”

The first three quarters in detail

The revenues from office properties increased to EUR 9.4 million (up 10 per cent), not least due to the completion of Mogilska 35 Office in Krakow at the end of 2023. Warimpex also saw moderate growth in the Hotels segment (up 5 per cent), resulting in a 13 per cent improvement in total revenues to EUR 15.7 million. Higher direct costs, particularly in connection with Mogilska 35 Office, meant that gross income from revenues remained nearly unchanged at EUR 6.8 million. The operating result (EBITDA) remained positive at roughly EUR 0.9 million.

In contrast, the financial result had a negative impact on the result for the period from continuing operations – i.e. excluding Russia – due to higher interest expenses (minus EUR 5.9 million) and depreciation, amortisation, and remeasurement, leading to a loss of EUR 12.4 million for the third quarter (Q1–Q3 2023: loss of EUR 7.3 million). The losses from property remeasurement do not impact cash flow. They represent snapshots of the current situation, which could change rapidly if economic conditions improve in Warimpex’s markets, particularly in Poland.

The result for the period including discontinued operations – i.e. including Russia – went from a gain of EUR 3.2 million to a loss of EUR 42.8 million. This includes the negative measurement of Russian assets, which will also impact the consolidated result for 2024 accordingly.

Outlook: Sustainable growth in the core markets of Poland and Germany 

“We still expect a positive operating result this year. The prospects for 2025 also suggest that this trend will continue,” said Jurkowitsch. In this context, Warimpex expects a further increase in occupancy at Mogilska 35 Office in Krakow next year and thus a higher revenue contribution.

In the Development segment, the Chopin co-living/office project in Krakow (20,600 square metres, building permit issued) and the West Yard 29 office building in Darmstadt (12,500 square metres, zoning plan approved) are in the pipeline. In addition, Warimpex is assessing potential new projects in Poland: “With a stable operational basis, we are clearly focusing on Polish cities such as Krakow and Łódź, where we are looking ahead to new things on the basis of the existing property reserves. At the same time, we are striving to maintain high sustainability standards with flexible, modern buildings and a mix of offerings that attracts solid demand in the given locations,” concluded Franz Jurkowitsch.

Key financial figures for the first three quarters of 2024 at a glance:

[1] In accordance with the applicable accounting regulations, the activities in Russia were presented as discontinued operations. This also resulted in an adjustment of the prior-year period in 2023.

[2] As no external valuation of the property portfolio was completed as at 30 September 2024 or 30 September 2023, the latest available values are shown.