EPP on track with full-year payout


EPP on track with full-year payout

Published Date: 2018-12-07 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

EPP on track with full-year payout

The Polish property investor says it expects to deliver on its distribution guidance as it builds its retail portfolio.

EPP, the Polish property investor previously know as Echo Polska Properties says the successful acquisition of the first tranche of the M1 portfolio and the purchase of the King Cross Marcelin centre in Poznan have added 240,000 m2 of high-quality retail space to its portfolio. They have also helped cement its position as one of the leading owners of retail space in Poland.

The M1 retail portfolio will ultimately add eight regional shopping centres and four retail parks across Poland to EPP's portfolio for €692 million. The first tranche of four M1 properties and the Marcelin acquisition take its portfolio to 19 retail centres. It expects to own 28 shopping centres by the end of 2020 after it's concluded tranches two and three of the M1 transaction.

Rental income jumped 44% to €108 million in the nine months to end-September and net property income rose 37% to €102 million. Profit for the period improved by 74% to €95.5 million as it also earned profits from joint ventures. Headline earnings per share increased by 28% to 8.34c and earnings available for distribution per share gained 4% to 8.75c. It issued 36.4-million new shares to Redefine Properties at R19.26 each during the period to fund the acquisition of Marcelin, taking Redefine's stake to 39%.

The group said footfall and sales were largely flat during the period despite the introduction of a ban on Sunday trading in March. It expects to deliver on its full-year distribution guidance of between 11.6c and 11.8c per share.

Its shares closed 0.5% up at R18.50 yesterday.

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