WARIMPEX
Report on the First Half of 2023
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WARIMPEX REPORT ON THE FIRST HALF OF 2023 | |||||||
WARIMPEX GROUP | |||||||
Key Figures | |||||||
in EUR '000 | 1-6/2023 | Change | 1-6/2022 | ||||
Investment Properties revenues | 19,415 | 32% | 14,691 | ||||
Hotels revenues | 5,914 | 55% | 3,826 | ||||
Development and Services revenues | 929 | -41% | 1,585 | ||||
Total revenues | 26,258 | 31% | 20,101 | ||||
Expenses directly attributable to revenues | -9,004 | 25% | -7,207 | ||||
Gross income from revenues | 17,254 | 34% | 12,895 | ||||
Gains or losses from the disposal of properties | - | - | 2,821 | ||||
EBITDA | 11,264 | 5% | 10,741 | ||||
Depreciation, amortisation, and remeasurement | -4,825 | - | 5,993 | ||||
EBIT | 6,440 | -62% | 16,733 | ||||
Financial result | -5,208 | - | 947 | ||||
Profit or loss for the | period | 214 | -98% | 13,421 | |||
Net cash flow from | operating activities | 16,565 | 162% | 6,324 | |||
Equity and liabilities | 416,074 | -16% | 495,055 | ||||
Equity | 149,085 | -16% | 176,713 | ||||
Equity ratio | 36% | - | 36% | ||||
Number of shares | 54,000,000 | - | 54,000,000 | ||||
Earnings per share in EUR | 0.00 | - | 0.26 | ||||
Number of treasury shares | 1,939,280 | - | 1,939,280 | ||||
Number of office and commercial properties | 9 | 1 | 8 | ||||
Lettable office space | 126,300 m2 | 21,600 m2 | 104,700 m2 | ||||
m2 with sustainability certificates | 75,400 m2 | 18,600 m2 | 56,800 m2 | ||||
In % of the total floor area | 60% | 6 pp | 54% | ||||
Number of hotels | 4 | - | 4 | ||||
Number of rooms | 831 | - | 831 | ||||
30/6/2023 | Change | 31/12/2022 | |||||
Gross asset value (GAV) in EUR millions | 393.9 | -8% | 429.3 | ||||
NNNAV per share in EUR | 3.33 | -12% | 3.78 | ||||
EPRA NTA per share in EUR | 3.16 | -12% | 3.59 | ||||
End-of-period share price in EUR | 0.78 | 20% | 0.65 | ||||
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REPORT ON THE FIRST HALF OF 2023 WARIMPEX |
Contents
- Key Figures
- Foreword
- Semi-AnnualConsolidated Management Report
- Economic Environment
- Markets
- Assets, Financial Position, and Earnings Situation
- Real Estate Assets
- Material Risks and Uncertainties and Other Disclosures
- Events after the Reporting Date
- Outlook
- Condensed Consolidated Interim Financial Statements as at 30 June 2023
- Condensed Consolidated Income Statement
- Condensed Consolidated Statement of Comprehensive Income
- Condensed Consolidated Statement of Financial Position
- Condensed Consolidated Statement of Cash Flows
- Condensed Consolidated Statement of Changes in Equity
- Notes to the Condensed Consolidated Interim Financial Statements
- Declaration by the Management Board
- Financial Calendar
- Publication Details
MC55 Office
Białystok, PL
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WARIMPEX REPORT ON THE FIRST HALF OF 2023 |
FOREWORD BY THE CHAIRMAN OF THE MANAGEMENT BOARD
Dear Shareholders,
For Warimpex, the first half of 2023 was characterised by a further improvement in revenues and EBITDA and the progression of the construction activities in Krakow as planned. At the same time, we are still experiencing elevated interest rates, increased volatility for property valuations, and currency fluctuations for the Russian rouble, which depreciated compared with the prior-year period. We anticipated this and aligned our financing strategy accordingly. Therefore, we are able to report a positive result at the half-year mark despite declines in property values, losses in the financial result, and a lack of sales proceeds.
Strong operational performance
Total revenues improved by 31 per cent to EUR 26.3 million in the first half of 2023. This can be attributed to increased revenues from the rental of office properties in Poland, from Avior Tower in St. Petersburg, which has been fully occupied since January 2023, and a further recovery in the Hotels segment, where the results for 2022 were still stunted by the COVID-19 pandemic. Although no real estate transactions were completed in the first half of 2023 - the B52 property in Budapest was sold at a profit in the first half of 2022 - EBITDA rose by 5 per cent to EUR 11.3 million thanks to the revenue increases.
The changes in economic conditions are reflected in EBIT, which declined by EUR 10.3 million from EUR 16.7 million to EUR 6.4 million due to a negative result from property valuations. This includes measurement losses of EUR 5.5 million as well as write-ups of EUR 1.9 million, whereas a measurement gain of EUR 7.3 million was generated in the prior-year period. The financial result went from EUR 0.9 million to minus EUR 5.2 million, primarily due to changes in foreign exchange rates. In total, this resulted in a slight profit for the period of EUR 0.2 million, down from EUR 13.4 million in the prior-year period.
Office developments with a focus on sustainability
We are sticking to our strategy when it comes to our development projects: The focus is on office developments targeted at obtaining the optimal sustainability certification for the given property that also meets the requirements of the new EU Taxonomy.
Accordingly, Mogilska 35 Office in Krakow with 11,900 square metres of net floor space and BREEAM - Excellent certification is nearing completion. The office space at Red Tower in Łódź spanning 12,400 square metres is being modernised on a step- by-step basis while the letting process continues to progress. Innovative concepts are also being implemented at the property: In May, for example, a second coworking space was opened that offers new possibilities for flexible working models and is being received well.
Building permits have been secured for further Polish office developments in Krakow (Chopin Office with roughly 21,200 square metres) and Białystok (MC 55 with roughly 38,500 square metres). In the German city of Darmstadt, planning for the West Yard 29 office building with roughly 13,800 square metres of space is at an advanced stage. There are still no new developments planned in Russia.
Outlook for 2023
We continue to monitor the geopolitical developments related to the conflict in Ukraine, the resulting inflation trend, and the elevated key interest rates very closely. In our industry, we are seeing a rise in the cost of project financing. As a listed, family- run company, we are oriented towards the long term and - not least thanks to strong cash flows from our existing properties - have the flexibility to take advantage of economically favourable time windows to push ahead with development projects on our property reserves and execute transactions.
With strong operating business and solid occupancy rates in our portfolio of modern existing properties, we expect the positive development of our business to continue for the current financial year despite the uncertain economic conditions.
Vienna, August 2023
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REPORT ON THE FIRST HALF OF 2023 WARIMPEX |
Franz
Jurkowitsch
CHAIRMAN OF THE MANAGEMENT BOARD
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Disclaimer
Warimpex Finanz- und Beteiligungs AG published this content on 29 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 August 2023 06:23:43 UTC.