TRADE ESTATES: Income increase by 28.3%, Net Profit by 57.1% and dividend proposal of EUR 0.08 per share

Increased financial results announced by Trade Estates (Anonymous Real Property Investment Company) yesterday (12.3.2024) for the use of 2023 in relation to 2022. As of the year 2023 amounted to 26,7m euros, compared with 20.8m euros in the year 2022, increasing by 28.3%. This increase stems from the incorporation of rents from new investments made during the past 12 months (such as the Ioannina and Larissa Commercial Park, Logistics Elefsina and SMART PARK), the conclusion of new leases with improved revenue in relation to earlier as well as the positive performance of the employees of commercial properties during the year 2023. The Adjusted Profits for Taxes, Interests and Depreciation (Adjusted EBITDA) of 2023 amounted to 18.2m euros, compared with 14.8m euros for 2022, with an increase of 23.6%. Accordingly, Net Profits 2023 amounted to EUR 37,7 million, compared to EUR 24,1 million in the year 2022, affected by the surplus value of the recent acquisition of Smart Park commercial park. The internal accounting value (Net Asset Value) on 31 December 2023 amounted to EUR 298,4 million compared to EUR 210,9 million, with an increase of 41,3% compared to 31 December 2022. On 31.12.2023, the Net Loan Index to Real Estate Portfolio Value (NLTV) amounted to 40.7%, the average weighted loan duration was 9.6 years while the average weighted interest rate was 5.40%. For 76.7% of existing loans, the Company has proceeded to enter into interest rate swaps (Interest Rate Swaps), achieving a reduction in the final interest rate to 3.99%. It is noted that for the development project of the Commercial Park in Patras, the gradual exploitation of the resources of the Recovery and Durability Fund (RRF) began, which will gradually lead to a reduction in the average weighted interest rate. Within the next period, a corresponding use of RRF resources will also be used for the development project of Heraklion Crete Commercial Park, as the relevant RRF approval of the inclusion of development funding has been obtained. The image of the Group’s real estate portfolio in Greece, Bulgaria and Cyprus on 31.12.2023 includes thirteen properties of a mixed leased surface of 344.006 sq.m., two developed properties and two properties of companies that participate in the Company, with a total value of the fair value of those of 484 million euros. The weighted average duration of the lease contracts on the basis of the minimum contractual maturity of the leases (WAULT) amounts to 31.12.2023 to 11.0 years, while the completeness rate is 98.8%. Following the financial results of the year 2023, the Board of Trade Estates SNEAP at its meeting on 11 March 2024 decided to recommend to the Annual General Meeting of Shareholders the distribution of a dividend of EUR 0.08 per share for the use of 2023. Dimitris Papoulis, CEO of Trade Estates S.A.P.A.P., said: “Trade Estates S.A.P. is on a continuous development course. We are particularly pleased with the results of 2023, a year that is a milestone for the company’s progress due to its entry into the Athens Stock Exchange. We moved on to investments that strengthened our portfolio of commercial properties, with more importantly the acquisition of Smart Park, while moving on to a significant reinforcement of Logistics Centers by investing in Inter IKEA International Distribution Center in Aspropyrgos. We are particularly pleased by the acceptance received by our Commercial Parks, as more than 20 million visitors trusted us and the trust of our employees with whom we have long-term cooperation. The highly positive performance in revenue and management of the company’s operating costs helped us achieve strong dividend returns for our shareholders, despite a significant increase in interest rates and tax rates. Projects under development in Patras and Heraklion will provide an additional boost to our sizes, while according to our investment plan, we will have a strong portfolio of properties of more than 700m euros by 2027.”