The PHN Group, thanks to rental income from new spaces, recorded an increase in revenue from its key business segment, i.e., rental income, by PLN 13.8 million in the first quarter of 2024, representing a 24.2% increase compared to the same period of the previous year. Rental income rose from PLN 31.2 million in the first quarter of 2023 to PLN 43.6 million in the first quarter of 2024 (an increase of 39.7%).
In the first quarter of 2024, EBITDA amounted to PLN 7.7 million, which was PLN 2.4 million lower (-23.8%) compared to the first quarter of 2023. Adjusted EBITDA (EBITDA adjusted for changes in the fair value of properties and results on their disposal, compensations, and penalties in the rental segment) amounted to PLN 30.7 million, which was PLN 10.8 million higher compared to the first quarter of 2023 (54.3%).
At the same time, due to, among other factors, the negative change in the fair value of investment properties and higher financing costs, the PHN Group recorded a net loss of PLN 27.1 million. The lower results from the development and construction activities in the first quarter of 2024 were mainly due to the investment cycle of the ongoing residential projects and the postponed schedules of some ongoing construction contracts.
The financial results achieved in the first quarter of this year are below our expectations. We recognize the need to undertake a series of strategic actions and improvements. We trust that with the implemented changes, we will improve the profitability and financial situation of the PHN Group in the coming quarters. Our priorities are the continued improvement of rental income and the development of our development activities, which will form the foundation of our operations, said Wiesław Malicki, President of the Management Board of Polski Holding Nieruchomości.
In the first quarter of 2024, the PHN Group continued the implementation of its investment program in the office, residential, and logistics real estate sectors. In January 2024, the PHN Group commenced the VENA office investment, which will provide the market with over 15,000 sqm of modern rental space. The MARINA by PHN project in Gdynia is currently in preparation. Five residential investments are also under construction: KOLEJ NA 19, Osiedle ŁAN, Młoda Białołęka II, Osiedle Olimpijczyk II, and Willa Pana Tadeusza. The ongoing residential projects will provide the market with over 750 apartments in Warsaw, Wrocław, Łódź, and Kraków. In the coming months, the PHN Group plans to launch further investments, also in new regional markets – a multi-stage project in Bydgoszcz on Nakielska Street, an intimate investment in Warsaw’s Śródmieście, the first stage of an investment in Łężyca, and the continuation of a prestigious residential project in Gdynia are in preparation. In the logistics sector, the PHN Group plans to implement additional projects – in JV format in Zgorzelec and Pruszków, which will provide the market with over 300,000 sqm of modern warehouse space.
