Echo Polska Properties Continued Distribution Growth
JSE listed Echo Polska Properties (EPP) recently announced the results of 2017 period ending 30 September 2017, demonstrating its continued growth in distributable earnings. Echo Polska Properties’ portfolio comprises of two retail, nine office and 14 retail offices valued at just over 1.9 billion euro. Throughout this period, the group continued to realise its strategy of evolving into a national champion, with the acquisition of more shopping centres and enhancements within their portfolio.
CEO Hadley Dean says: “We are pleased with another robust performance with all key indicators in line with expectations.” Net profit for the period amounted to €56.406 million, while total net asset value totalled €844 million equating to a NAV per share of €1.20. Footfall in the retail portfolio increased 5.1% during the period with sales up 9.6%. The loan-to-value ratio remained static at 52.7% with an average cost of debt of 2.09%.”
Retail properties account for the bulk of EPP’s portfolio, with retail GLA increasing from 402 638 m² to 426 845 m² during the period. The number of retail properties increased from 10 to 15 during the reported period, and vacancies in the retail portfolio stood at 1.66% while rent to sales improved to 10.1%, with an occupancy cost ratio of 13.3%.
The weighted average lease term by GLA stood at 5.30 years and 4.74 years by NOI. The office portfolio totals 188 795m² in GLA and recorded vacancies of 2.7%. The weighted average lease term by NOI is 3.8 years and 3.7 years by GLA.
The Success Behind Echo Polska Properties
According to Dean, the success behind their company is because of their people. “We believe that our people are the driving force behind our success and during the period we focused on bolstering our asset management team,” says Dean.
This highly experienced and specialised team provides tenants with technical and administrative support in improving their turnover and is continuously working on improving tenant mix at the various malls. The strengthened team is also well positioned to meet the challenges of an enlarged portfolio following the M1 acquisition.
Their high-quality portfolio of secure and attractive yields continues to benefit their investors. With a solid reputation and management team behind the portfolio, EPP’s future looks bright.
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