According to the listed company during the first half of the year, its revenues increased by 7% while it achieved an increase in operating profitability (Adjusted EBITDA) by 10%, on a consolidated basis, compared to the corresponding period of 2023.
Funds from Operations (FFO) were formed at lower levels, reduced by € 0.9 million compared to the first half of 2023, mainly affected by higher financial expenses. Pre-tax profits were at significantly higher levels, increased by €13.1 million compared to the corresponding period of 2023, mainly affected by the higher adjustments of investments to fair value.
First half of 2024
- 55 properties and approx. 390 thousand sq.m. of buildings under management by the Group with the total value of investments at €344.7 mn, increased by 12% versus 31.12.2023.
- Delivery of key projects that shall gradually strengthen the Group’s financial performance. Namely, the conversion of the Athens Heart shopping center into a green office complex which hosts the central services of the Independent Authority for Public Revenue (IAPR) and the redevelopment of the property in Xanthi into a modern student accommodation currently in operation.
- Active portfolio management. Addition of new properties and selective disposals with significant profit. More specifically, PREMIA disposed a property in Katerini for € 2.5 mn, signed a preliminary agreement for the sale of two land plots in Paros for € 0.6mn and in September sold a property in Santorini for € 6.5 mn.
- Strategic partnerships with reputable partners and participation in important transactions. PREMIA announced in January 2024 a strategic partnership with TEMES S.A. in the winery sector and in July it underttok to cover a share capital increase of €4.1 mn of Navarino Vineyards S.A. in which it will acquire a 50% stake, with TEMES S.A holding the remaining 50%. In July 2024, PREMIA signed its first deal in the tourism sector through a sale-and-lease-back agreement with Nordic Leisure Travel Group (“NLTG”) group regarding two 4-star, 800-keys in total, hotels in Rhodes and Crete which NLTG group will continue to operate under a long-term lease agreement, with anticipated completion of the transaction by the year end*. The strategic cooperation with NLTG group will be further enhanced by the agreement for the participation of the latter in a future share capital increase of PREMIA. Finally, PREMIA participates in one of the largest real estate transactions in recent years in the Greek market (Project Skyline) the completion of which is expected bythe ned of this year.
- Increase in revenues by 7% and of operating profitability (Adjusted EBITDA) by 10%, on a consolidated basis, versus the first half of 2023. Funds from Operations (FFO) landed at lower levels, reduced by € 0.9mn compared to the first half of 2023, affected mainly by increased financing costs. Profit before tax was significantly increased versus the first half of 2023, namely by € 13.1 mn, mainly due to higher gaisn from fair value adjustment of investment property
Outlook
According to PREMIA, Greek economy outlook remains positive however, the international macroeconomic environment continues to be volatile as there is still considerable uncertainty regarding the energy crisis, inflationary pressures, interest rates evolution and the development of the wars in Ukraine and the Middle East. A positive development is the reduction of the ECB interest rates on 12.6.2024 and 12.9.2024, by 25 basis points each time, while further reductions are anticipated. This has a positive effect on Euribor and in turn the financing cost of the Group, as well as on its tax obligations.
In the emerging environment, the Management's main priority remains the consistent and effective implementation of the Company's business plan, aiming to optimize the composition and diversification of its investment portfolio as well as to strengthen its qualitative characteristics. The Company remains focused on sectors with positive outlook in the medium-term, such as logistics and serviced apartments (student housing), while selectively entering in new sectors with strong demand and prosects such as green office buildings and hotels.
Emphasis is also placed on effective liability management and on securing the necessary financing on competitive terms utilizing all appropriate financial tools such as financing within the Recovery and Resilience Fund.
The Company is looking forward to another semester of growth based on the completion of significant investments within 2024 which will gradually strengthen its financial performance, as well as certain key features (as of 30.6.2024) :
- Gross yield of income producing properties (gross yield) 7.2
- Weighted average property lease duration (WALT) 8.4 years
- Net LTV 52.1%
- Average weighted loan duration of 7.3 years and resilience over future interest rate increases
(approximately 55% of existing loans with a fixed interest rate).
