Due to the massive spread of the SARS-CoV-2 virus (coronavirus) and the associated COVID-19 pandemic, measures such as lockdowns, travel bans, the closure of airports and businesses were implemented by the governments in Austria as well as in other European countries and in Russia starting in February/March 2020.
Projects in Krakow (PL), Białystok (PL), Darmstadt (DE), St. Petersburg (RUS)
Current development projects are progressing according to plan. We have a number of exciting activities on the agenda, including projects in the Polish cities of Krakow and Białystok, the continuing development of AIRPORTCITY St. Petersburg, the refurbishment of the hotel in Darmstadt, and the creation of new offerings such as coworking spaces. The latter combines the best of two worlds with which Warimpex is very familiar: the short-term requirements of the hotel market and the longer-term orientation of the office market.
Making preparations for construction and obtaining building permits will be the focus of our activities again in 2020. At the same time, we expect to see an increase in revenues in the Investment Properties segment thanks to rental revenue from our new assets – first and foremost Mogilska Office 43 in Krakow, which was completed in the spring.
Past crisis events, such as the financial crisis of 2008, have shown that the hotel segment responds to macroeconomic developments early on in the cycle, but also recovers quickly once conditions normalise. In the office segment, which is characterised by long-term leases, Warimpex is not seeing any direct effects from the health crisis at the present time.
Appropriation of profits
The Management Board and Supervisory Board have decided to propose to the Annual General Meeting that the net profit be carried forward to new account for the time being, to postpone the Annual General Meeting, and to evaluate the situation on an ongoing basis until the Annual General Meeting and revise the proposal for the appropriation of profits as necessary.
Positive result for 2020 expected from today’s point of view
To sum up: At the moment, the concrete long-term effects of the COVID-19 pandemic are very difficult to predict in general. However, it is safe to assume that the record year seen in 2019 will not be repeated this year. Nevertheless, we expect the positive development of our business activities to continue. Our updated planning calculations still show positive results of operating activities before finance income, taxes, depreciation, and amortisation (EBITDA) and sufficient liquidity for 2020. With a solid financial base and an experienced, crisis-tested team, Warimpex is well equipped for the current and coming challenges.