LEADERS IN POLISH PROPERTY

2016 highlights

Financial highlights

Distributable earnings

34 million

Dividend per share of

3.14 euro cents

being 2.2% ahead of forecast

NAV €1.16

per share

Successfully executed or announced acquisitions of

418 million

GLA increased to

498 575 m2

as of 2016 year-end

Portfolio value

1.4 billion

as of 2016 year-end – up 17% since listing

Portfolio increased from

16 to 19 properties

 
Market cap

797 million

 
 

Operational highlights

Listed on

LuxSE and JSE

Portfolio occupancy at

97.4%

(at 31 December 2016)

€447 million

invested in projects

Commenced extensions to Galaxy and Outlet Park Szczecin in Szczecin

Acquired

70%

Towarowa 22 in Warsaw – largest and last available retail development site in city centre

Acquired

€264 million

office ROFO projects including O3 Business Campus, A4 Business Park, Tryton Business House and Symetris Business Park

Concluded

€54 million

acquisition of majority stake in Zakopianka Retail Park in Kraków

Post year-end acquired

70%

interest in 81 800 m2 retail asset Galeria Młociny in Warsaw

How we performed

I am delighted to be presenting our first set of results as EPP. Since our successful debut in late 2016 on the LuxSE and JSE, we have grown our portfolio from 16 to 19 properties, with five further acquisitions under PSPA and three ROFO projects scheduled for purchase in 2017, and progressed well in our strategic objectives.

Hadley Dean
Chief executive officer

Chairman's letter to shareholders Chief executive officer's report and operational review Chief financial officer's report
Watch video

Chief executive officer’s report

Who we are

Geographical map

Why Poland

BY GLA (m2)

61%

Retail properties
322 633
Total retail m2

39%

Office properties
214 459
Total office m2

EPP IN A NUTSHELL

Dual listed Luxembourg and  Johannesburg

€0.8 billion market cap

€1.6 billion portfolio

626 783 m2 GLA

EPP IN A NUTSHELL

15 retail and 9 office assets

c. 160 office tenant

Average annualised portfolio yield of 7.5%

Over 100 employees

 

Talking strategy

OUR MARKET IN CONTEXT

Our properties

Pasaž Grunwaldzki
GLA (m2)
50 994 (total)
Fair value
241.8
Revenue annualised
13.1

Galaxy
GLA (m2)
42 282 (total)
Fair value
224.3
Revenue annualised
12.1

Galeria Echo
GLA (m2)
71 457
Fair value
211.3
Revenue annualised
12.0

Galeria Amber
GLA (m2)
33 599
Fair value
78.5
Revenue annualised
5.2

Galeria Sudecka
GLA (m2)
31 243
Fair value
52.8
Revenue annualised
3.9

Park Rozwoju
GLA (m2)
33 126
Fair value
72.1
Revenue annualised
4.0

West Gate
GLA (m2)
16 532
Fair value
39.4
Revenue annualised
2.8

Malta Office Park
GLA (m2)
13 900
Fair value
28.5
Revenue annualised
2.4

Meet the team

1. HADLEY JAMES TYZACK DEAN

(44) BRITISH
Chief executive officer
BSc (University of Newcastle-upon-Tyne), Property Valuation and Management (Sheffield Hallam University)

Hadley has over 20 years of real estate experience, most recently as CEO, EMEA for Compass Offices. Prior to this he was the EMEA Management Board Member at Colliers International while running Eastern Europe as Managing Partner, where he was responsible for 12 countries, 16 offices and 750 employees. Hadley has extensive experience in Poland, having spent nine years in leading global real estate services company, Colliers’ Poland office.

2. MACIEJ ADAM DROZD

(51) POLISH
Outgoing chief financial officer
Master’s degree in Philosophy and Management (University of Warsaw), MBA (University of Illinois)

Maciej started his professional career in 1995 at Eastbridge Group, a Luxembourg private investment fund managing over €2.5 billion in assets related to retail, consumer goods and real estate, overseeing financial operations of selected subsidiaries within the group. He was promoted to CFO and Managing Partner in 2009. Maciej has been deputy CEO of Echo Investment, one of the largest investment and development companies in Poland listed on the Warsaw Stock Exchange, in charge of the company’s finance. He will be succeeded by Jacek Bagiński

3. JACEK BAGIŃSKI

(47) POLISH
Incoming chief financial officer
Corporate Financial Management (Warsaw School of Economics), Masters University of North Texas, International Oil and Gas Accounting and Financial Management School

Jacek has over 20 years’ senior financial executive experience in diverse businesses operating across Poland and CEE countries. Recently, he was a member of the management board and CFO of Empik Media & Fashion S.A., one of the largest holding companies controlling a group of retail, e-commerce and service operations. Prior to this he has been a member of a number of management boards and CFO of companies listed on the Warsaw Stock Exchange, and also served in senior executive positions in multinational corporations including PepsiCo and BP/Amoco. Jacek was responsible for business development including M&As, financing and taxation as well as financial planning and controlling. He formally joins as chief financial officer effective once his appointment is approved by shareholders at the annual general meeting.

1. ROBERT WEISZ

(66) DUTCH
Chairman
MBA, CA, Fellow of the RICS (Royal Institute of Chartered Surveyors)

Robert serves as Partner and Managing Director of Timevest, a European commercial property investment company with a portfolio of high street shopping and commercial retail in Germany, the Czech Republic and the Netherlands. Previously, he was Partner and Managing Director of DBN Group, a commercial property company operating in the Netherlands and the US. Robert has been Visiting Professor at the Technical University of Eindhoven’s Urban Planning Design Group since 2004 and was guest lecturer in property finance and valuation at the Amsterdam School of Real Estate and University of Groningen. He is the co-author of three textbooks on property investment.

2. MAREK MARIAN BELKA

(64) POLISH
PhD (Economics); MA, Habilitacja, Professor (scientific title conferred by the President of the Republic of Poland)

Marek is a former Prime Minister of Poland (2004 – 2005) and President of Narodowy Bank Polski (Polish Central Bank) (2010 – 2016). He qualified as an economist and has held various political positions since 1996, including Advisor to the President of Poland, Minister of Finance and Deputy Prime Minister. Marek has also held positions in international organisations, serving as Executive Secretary of the Economic Commission for Europe (in the rank of Undersecretary General of the U.N.) and Director of European Department in the International Monetary Fund (2008 – 2010). He was a board member of two commercial banks in Poland at different times and served as Chairman of LOT Polish Airlines (2002 – 2003).

3. PETER JOOST RUDOLF DRIESSEN

(69) DUTCH
MSc (Law)

Until 1 July 2016, Peter served as European Director: Capital Markets with CB Richard Ellis in Amsterdam, where he was focused primarily on providing strategic and property specific investment advice to both Dutch and international investors across all property sectors. Previously Peter served as co-founder and Managing Director of Colliers BDR/Insignia BDR, as a board member of BCD Holdings and as Director Real Estate Investments at Centraal Beheer Pensioenverzekeringen N.V. (Achmea Group). He currently serves as a member of the supervisory board of three international real estate investment funds of Syntrus Achmea Real Estate & Finance.

4. DIONNE TRACI HIRSCHOWITZ

(49) SOUTH AFRICAN
BCom, LLB

Dionne is an admitted Attorney of the Supreme Court of South Africa. She lived in London for 11 years where she worked at Stenham Property, managing commercial property investments for offshore clients. On her return to South Africa she was appointed as a director of Ellerine Bros. Proprietary Limited, which is involved in equities and property investments.

5. ANDREA PHILIPPA STEER

(46) SOUTH AFRICAN/IRISH
BCom, LLB

Andrea is International Legal Counsel at Randstad Holding N.V., an HR services company with operations in 39 countries, headquartered in Amsterdam and listed on the Amsterdam stock exchange. She has previously held roles as legal consultant at the SBS Broadcasting Group (Amsterdam) and as an associate at Clifford Chance LLP (Amsterdam). Andrea was admitted as an Attorney of the High Court of South Africa, is registered as a Solicitor of England and Wales, and is registered with the Dutch Law Society (Nederlandse Orde van Advocaten) as a foreign lawyer practicing within the EU.


1. MACIEJ DYJAS

(52) GERMAN
MA (Philosophy, Management), MBA

Maciej is a Co-Managing Partner and Co-CEO of Griffin Real Estate, a leading and dynamically growing investment group operating in the commercial real estate market in CEE. He also holds a position of Managing Partner of Cornerstone Partners – a private equity investment firm, active in the CEE region, with an impressive track record of transactions. Before joining Griffin Real Estate and Cornerstone, he was a Managing Partner and CEO of Eastbridge Group a Luxembourg private investment fund managing over €2.5 billion in assets related to retail, consumer goods and real estate.

2. ANDREW JOSEPH KÖNIG

(48) SOUTH AFRICAN
BCom, BAcc, CA(SA)

A qualified Chartered Accountant with 22 years of commercial and financial experience, Andrew was previously Group Financial Director of Independent News and Media. He is the chief executive officer of Redefine Properties Limited responsible for the management of Redefine Properties Limited and for ensuring the board’s strategy is implemented, as well as all aspects of regulatory compliance, corporate activity and communications.

4. NEBIL SENMAN

(44) GERMAN/TURKISH
BEng (Civil), MBA (TU Berlin), Paris (ESCP-EAP), (LSE), Post-graduate Diploma in Real Estate Management (EBS), Member of the Royal Institution of Chartered Surveyors, MRICS

Nebil is Co-Managing Partner of Griffin Real Estate, a leading and dynamically growing investment group operating in the commercial real estate market in CEE. Prior to this he held the position of Senior Vice President and Supervisory Board Member for Oaktree’s real estate funds for nine years. Before joining Oaktree he spent eight years within the real estate advisory and corporate finance division at Ernst & Young Real Estate (previously Arthur Andersen), holding different managerial positions.

3. MARC WAINER (67) SOUTH AFRICAN

(49) SOUTH AFRICAN

Until August 2014, Marc was CEO of Redefine Properties Limited, thereafter taking on the role of Executive Chairman of Redefine Properties Limited. He has 40 years’ experience in all aspects of real estate. Marc’s primary focus is on acquisitions and disposals, international investments and investor relations, as well as playing a role in the ongoing conceptual development at Redefine.