In the span of three quarters of 2024, the PHN Group achieved record-breaking rental revenues, which amounted to PLN 220.0 million, marking a 20% increase compared to the same period of the previous year. There was also an increase in operating profitability in the rental segment from 59% to 64%. Thanks to this, the PHN Group significantly improved its adjusted EBITDA, which after three quarters totaled PLN 106.4 million, marking an increase of almost 40% compared to the three quarters of 2023.
The PHN Group ended the three quarters of 2024 with revenues of PLN 482.3 million, which after accounting for administrative and sales costs generated a net profit from sales of PLN 100.6 million. This marks an increase of over PLN 25.3 million or 34% compared to the same period of the previous year. The increase in net sales profit mainly resulted from a rise in rental income from new spaces, including SKYSAWA and INTRACO Prime, as well as an increase in the lease rate of other properties from the PHN Group portfolio.
In the third quarter of 2024, permits were obtained for two residential investments – KOLEJ NA 19 in Warsaw and ŁAN Housing Estate in Wrocław, which will together bring over 320 apartments to the market. The process of handing over the premises to their buyers is currently underway, which will allow for the recognition of results from developer activities in the fourth quarter.
Efforts are being made to improve the PHN Group’s financial situation – extended credit agreements expiring have been renewed and new ones for property refinancing have been signed, which shows the PHN Group’s ability to acquire external financing under attractive conditions.
At the same time, due to the loss in property value amounting to PLN 101.6 million and the interest costs incurred as a result of debt servicing, the PHN Group recorded a net loss of PLN 112.2 million for the three quarters of 2024.
“We are consistently implementing our business assumptions, which in the coming quarters will bring further improvement in profitability and financial situation of the PHN Group. We maintain cost discipline and care for the efficiency of the organization at every level. We have achieved record rental revenues and an increase in operating margin and have also initiated changes in our real estate portfolio aimed at selling those units which, after careful evaluation, do not fit the target structure of our portfolio. We are in the process of handing over more than 250 apartments for which we have signed developer contracts from two completed investments – KOLEJ NA 19 and ŁAN housing estate. We are developing our developer activity – in the third quarter we started the construction of the Nowa Nakielska by PHN investment in Bydgoszcz, and further projects for almost 700 apartments are in preparation. The stable condition of the PHN Group gives us a calm view of the future.” – said Wiesław Malicki, Chairman of the Board of the Polish Real Estate Holding.
During the first nine months of 2024, the PHN Group continued to implement its investment program in the office, residential, and warehouse real estate sector. At the beginning of the year, the PHN Group started the implementation of the VENA office investment, which will bring over 15,000 sqm of modern rental space to the market. The construction of two residential investments, KOLEJ NA 19 and ŁAN Housing Estate, have been completed, and four more residential investments are under construction, namely Młoda Białołęka II, Olimpijczyk II Estate, Willa Pana Tadeusza, and Nowa Nakielska by PHN. These projects will provide over 600 apartments in Warsaw, Łódź, Krakow, and Bydgoszcz.
The PHN Group plans to intensify the investment program in the residential and warehouse developer segment. A small-scale investment in the city center of Warsaw (Jana Pawła II 34) and the first phase of the investment in Zielona Góra (Łężyca) are in preparation. Further stages of investments in Wrocław and Bydgoszcz are planned for the coming years. The PHN Group is also preparing single-family residential investments in Czerwonak and Bolechówko near Poznań. In the warehouse sector, the PHN Group plans to implement further projects – in the JV formula in Zgorzelec and Pruszków, which will deliver over 300,000 sqm of modern storage space.
Work is underway on a new PHN Group development strategy, which will assume greater focus on prospective market segments, increasing the scale of operations, as well as developing new business lines, while simultaneously phasing out non-prospective segments. Diversification will be key – the main activities will continue to be rental (both in office and warehouse areas), development activity, and general contracting services. Given the ESG conditions, the new strategy will also consider adjusting the portfolio of existing properties to environmental requirements, mainly in terms of energy efficiency.
Source: https://managerplus.pl/grupa-phn-odnotowala-istotny-wzrost-skorygowanej-ebitda-ktora-wyniosla-ponad-106-mln-pln-50569
