Warimpex Finanz- und Beteiligungs AG

Warimpex generates best annual results since initial public offering - Seite 2

Significant increases in EBITDA (up 57 per cent) and EBIT (up 113 per cent) due to higher sales proceeds and a positive remeasurement result for office properties (23 per cent increase in NNNAV) led to a profit for the year of EUR 40.5 million (2016: EUR 22.9 million).

Development projects in Łódź, Krakow, and St. Petersburg
In terms of development projects, construction is progressing nicely for the Ogrodowa office building in the Polish city of Łódź and the Mogilska office building in Krakow. Leases have already been signed for a portion of the space at both office buildings. Also in Krakow, the company is planning the construction of an office building with around 21,000 square metres of space on a development property next to the Chopin Hotel. In Białystok, Warimpex owns a building plot that was expanded through the purchase of adjacent lots during the reporting period. Four office properties will be built on this site in multiple phases.

At AIRPORTCITY St. Petersburg, the fully occupied Bykovskaya multi-use building was completed and handed over to the tenant in the spring of 2017. Warimpex also holds property reserves for around 150,000 square metres of office space at the site.

The Eastern European economy is currently enjoying the most robust growth in all of Europe. Higher minimum wages and lower social security costs are bolstering private consumption, which is the foundation for the recovery in the region. This renewed upswing makes Warimpex very optimistic regarding its development projects and strengthens the company's confidence in its strategy to continue operating in its core markets even after more than 30 years.

Transactions in Poland, Russia, and Hungary
In addition to the sale of eight hotel holdings, Warimpex concluded several smaller but no less important deals. Along with the properties in Białystok, the company acquired a fully occupied office building with roughly 5,800 square metres of space in Krakow. The goal is to use the rental revenue to generate cash flows immediately, and the company is considering a redevelopment at a later date.

In addition, Warimpex purchased the remaining shares in the Bykovskaya multi-use building in St. Petersburg, so the building is now fully owned by the Group.

In early March 2018 - after the reporting date - Warimpex signed a contract for the sale of the development property in Budapest, where the company was planning a hotel with adjacent apartments. The closing is scheduled for May 2018. Warimpex recently acquired the fully occupied B52 office building in Budapest, which has roughly 5,200 square metres of space.