Despite the continued volatility of the market, P3 managed to achieve good results, also thanks to the dynamic growth of the industry, in which there is still high demand related to the transition of retail to e-commerce and the reorganization of supply chains. The growth of the gross value of the company's assets was supported by the strategic distribution of capital, aimed at the profitable growth of the portfolio through acquisition and development activities.
Frank Pörschke, CEO of P3 Group, commented: “P3's 2022 results reinforce our ambition to be a leading owner, investor and developer of prime logistics and industrial real estate across Europe. The value of our portfolio increased to 8.3 billion as a result of acquisition and development activities. euro Due to our prudent and long-term approach, there was relatively little negative repricing through a market-wide yield expansion of just 2.3%. On these strong foundations, we will continue to carefully manage our existing portfolio and actively seek attractive growth opportunities, be it development, individual income assets, forward financing, entire portfolios or even platforms.”
“Our operational and financial results improved further in 2022, signaling that our long-term and value-based approach is sound. Following the issuance of our €1 billion green bond in January last year, we continued to implement our new financial strategy, which is designed to maximize operational flexibility while maintaining sound credit indicators and a stable S&P BBB credit rating. Likewise, we have implemented strict policies to control costs and increase efficiency across the entire platform. In 2022, we continued to focus on ESG and we are pleased to publish our first ESG report together with the financial results, which describes the significant progress we have made in relation to our ESG goals and ambitions," added Thilo Kusch, financial director of the P3 group.
P3 in Slovakia successfully extended the leases of eight tenants last year. Lease extensions and expansions accounted for approximately 70% of all new contracts. P3 currently leases premises in six Slovak logistics parks with a total area of almost 500,000 m², while in 2022 it expanded the area by 21,000 m².
Peter Jánoši, managing director of P3 Logistic Parks in the Czech Republic and Slovakia, added: "Last year we completed the construction and successfully approved the newest DC7B hall in the P3 park Bratislava D2 near Lozorn, which we built for long-term clients IHLE and MX Logistika, as a response to their expansion plans. Flexibility and the associated ability to quickly respond to the current needs of tenants is one of the competitive advantages that leads to long-term relationships of P3 with clients."
Durable growth dynamics
The Company's growth was supported by resilient industry growth dynamics, including favorable long-term supply and demand trends due to the continued transition of retail to e-commerce and reorganization of customer supply chains.
Current European events have accelerated/reinforced this dynamic and shown the resilience of rent collection rates compared to other real estate sectors.
A highly diversified and high-quality portfolio
The company owns and operates one of the largest logistics portfolios in continental Europe with a GAV of 8.3 billion euros in 11 countries and a GLA of 7.6 million m².
The geographically diversified portfolio with a presence in 11 countries is divided as follows: Western markets (~61%) and Central and Eastern European markets (~39%).
A high-quality, modern portfolio with an average building age of only ~11 years and 65% of properties in an urban location.
Power of tenants
Large institutional grade tenants, many of which are investment grade ("IG") rated or subsidiaries of IG parent companies.
~470 customers in industries such as 3PL, food and non-food retail, automotive, building materials with a high retention rate (~65%) across the portfolio and stable rent collection even during current European events.
A powerful operating platform
Internal teams for development, acquisitions, asset management, construction and financing operate in 9 countries.
An attractive plan of development projects and excellent results in the successful implementation of projects.
Proven ability to execute off-market acquisitions with attractive NIY (Net Initial Yield).
ESG is a priority
Exceeding 75% of the BREEAM Very Good target or higher (80% in a comparable portfolio).
First ESG report, transition risk report, impact report and allocations supporting the company's green finance strategy.
The solar deployment target has been increased to 100 MWp by 2027 to meet investor expectations, tenant needs and regulatory requirements.
Conservative financial policy and robust credit indicators
Conservative financial policy and robust credit indicators
Transition to a separate debt structure consisting of unsecured bonds and bank debt to maximize operational flexibility.
Target LTV of maximum 47.5% (December 2022 LTV of 44.7%) and maintain a credit rating of BBB (or equivalent) with future loans not subject to the shareholder.
A strong and well-capitalized shareholder
As Singapore's sovereign wealth fund, GIC is a long-term oriented investor with significant capital resources.
A significant amount of equity capital currently involved in the business.