SHAPING THE FACE OF RETAIL IN POLAND

INTEGRATED REPORT 2018

WHO WE ARE

EPP is a retail-focused real estate investment company and the largest owner of retail real estate in Poland with properties located in 20 regional cities across the country, characterised by their strong economy, purchasing power and ability to attract international investment interests.

The portfolio spans 19 retail properties, six offices and two retail development sites in Warsaw. By the end of 2020 EPP expects to own 28 shopping centres post the conclusion of tranches 2 and 3 of the M1 transaction.

EPP is the only JSE-listed property company with a retail and regional focus on Poland.

  • 19
    RETAIL PROPERTIES
  • 6
    OFFICES
  • 2
    RETAIL DEVELOPMENTS

€2.2 billion

income generating portfolio

832 000 m2

total GLA

198

employees

By 2020 set to own 28 retail centres within 30 minute drive of 40% of Poland’s wealthiest population

FY18 HIGHLIGHTS

  • Distributable
    earnings of
    €96 million

  • Distributable
    income per share
    11.60 € cents
    for full FY

  • NAV €1.35
    per share up 2.4%

  • NOI up to
    €143 million
    (2017: €103 million)


  • Successfully executed acquisitions of more than €400 million

  • LTV – 51.9%(2017: 47.4%)

  • Cost of debt 2.33% — weighted maturity 3.9 years (2017: 2.14%; 3.9 years)

  • >100 million
    shoppers visited EPP centres in 2018

  • >45%
    in international retailers in the portfolio


  • 240 000 m2
    retail GLA acquisitions added to EPP portfolio in 2018

  • Five
    quality retail properties added to portfolio

  • 684 000 m2GLA
    (2017:444 350 m2)

  • Footfall growth° 1%
    (2017: 4.6%)

  • Tenant take over growth LFL* 1%
    (2017: 7.0%)

  • Vacancy 0.4%
    (2017: 1.41%)

  • Rent-to-sales° 10.3%
    (2017: 10.3%)


  • Operational costs ratio°13.7%
    (2017: 13.5%)

  • LFL* NRI growth 4.2%

  • WALT# by take over
    4.81 years
    (2017: 5.30 years)

  • Number of units 1 942
    (2017: 1 428)

* LFL: Like-for-like, # Weighted average lease term, ° Excludes M1.

Performance review
2 065KB

THE CHANGING RETAIL LANDSCAPE

The revolving trends in the retail space continue to inform EPP’s strategy. Our projects have a strong presence in Poland’s major cities and they continue to attract and capture footfall. Active asset management, driven by a market leading team and well curated tenant mix, makes EPP relevant and attractive to both retailers and shoppers. EPP continues to monitor these trends in order to stay ahead of the market and use our scale in Poland, expertise and innovative approach to remain a market leader.

E-COMMERCE

Research has proven that in-store sales remain very popular in Poland as consumers prefer to ‘try and feel’ goods before buying

FOOD AS THE NEW FASHION

Food and entertainment offering in retail centres increasing from 5% take over 20 years ago to up to 25% today

SUNDAY TRADING BAN

As anticipated, customers adjusted their shopping habits moving their shopping days to Mondays, Fridays and Saturdays

SHOPPING CENTRES AS A LEISURE AND ENTERTAINMENT DESTINATION

Shopping centres are no longer just retail establishments but also a place where people go to spend their free time


The changing retail landscape
1 198KB

PERFORMANCE REVIEW

I am excited to present a strong set of results for 2018. It has been a busy year marked by the conclusion of the first tranche of the M1 transaction, adding a significant bulk to our portfolio, progress in our Warsaw development (Młociny) and strong asset management ensuring growth in rentals.

Read more

Chief executive officer’s report and operational review

HADLEY DEAN
Chief executive officer

 

Chief financial officer’s report

JACEK BAGIŃSKI
Chief financial officer

We are pleased to present the annual financial statements of EPP for the year ended 31 December 2018. The distribution per share amounted to 11.60 euro cents which is in line with the guidance of 11.6 to 11.8 euro cents.

Read more

PROPERTY PORTFOLIO

Galaxy

Outlet Park

Oxygen

King Cross Marcelin

Malta Office Park

Galeria Solna

Wzorcownia

M1 Łódź

Symetris Phase

Galeria Veneda

Galeria Młociny

Towarowa 22

Park Rozwoju

Galeria Amber

Pasaż Grunwaldzki

Galeria Olimpia

Galeria Echo

Astra Park

Twierdza Zamość

Galeria Sudecka

Twierdza Kłodzko

M1 Zabrze

M1 Creladż

Centrum Echo

M1 Kraków

Zakopianka

O3 Business Campus

DIRECTORATE

 

1. Hadley Dean (47) British Chief executive officer

2. Jacek Bagiński (49) Polish Chief financial officer

3. Robert Weisz (69) Dutch Chairman

4. Marek Belka (67) Polish

5. Peter Driessen (71) Dutch

6. Dionne Ellerine (52) South African

7. Andrea Steer (48) South African/Irish

8. Maciej Dyjas (55) German

9. Andrew König (51) South African

10. Nebil Senman (47) German/Turkish

11. Marc Wainer (70) South African

1. Hadley Dean Chief executive officer

2. Jacek Bagiński Chief financial officer

14. Wojciech Knawa Property Management

13. Michał Świerczyński Asset Management

12. Rafał Kwiatkowski Chief operations officer and company secretary

Key to committees

  • Audit and risk committee
  • Nomination and remuneration committee
  • Investment committee
  • Committee chairperson

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