Echo Polska on track with retail plan


Echo Polska on track with retail plan

Published Date: 2017-12-15 | Source: Stephen Gunnion | Author: Stephen Gunnion

Echo Polska on track with retail plan

The Polish-focused real estate company plans to become one of Poland's leading retail landlords

Echo Polska Properties says it's making strides in its strategy to become one of the leading retail landlords in Poland, spending €55.4 million in the three months to September to acquire the Solna shopping centre in the north of the country and opening the third phase of Outlet Park Szczecin. That's added €700 000 in annual net operating income. It has also invested €28.5 million in capital improvements throughout its portfolio with the extension to Galaxy opening last month. Following the end of its reporting period, it also bought the M1 portfolio of 12 retail properties across Poland and sold three offices.

Rental income and recoveries for the nine months to end September rose 64% to €107 million as vacancies declined to 1.99% from 2.26%. A significantly higher tax bill following a deferred tax credit of €41 million last year left net profit 10% lower at €54.9 million. Headline earnings per share declined by 61% to 6.5c. It's declared an 8.41c per share distribution.

"Our third-quarter results reflect our commitment to delivering sustainable growth in ROE and NAV while building the company into one of the leading retail landlords in Poland," CEO Hadley Dean said in a statement. "Our strategic acquisitions as well as existing portfolio enhancements and extensions during the period as well as post the quarter end are a further step in achieving this aim."

The company says it's well positioned to operate and benefit from favourable market conditions and expects to meet its full-year dividend guidance of 10.8c per share. It expects to grow next year's dividend by between 7.5% and 8.5% assuming that it has no major tenant failures and the stable global and Polish macroeconomic environment continues.

It's shares added 0.2% to R18.79.

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