JSE Limited Investors favour Polish real-estate firm EPP

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Polish real estate group, EPP, has cemented itself as one of the standout property investments on the JSE so far in 2018.

The company, which South African based Redefine Properties owns a 39 percent stake, released strong financial results for the nine months to September. The results show the polish real estate firm is an attractive investment for South Africans in 2018, achieving a total return of 19 percent while the FTSE/JSE South African Listed Property Index has struggled, delivering a total return of -24 percent.

Analysts have revealed that South African investors are starting to warm to EPP as the company has successfully settled down after teething issues in 2016 and 2017. The firm also managed to broaden its investor base during this period.

Head of listed property funds at Stanlib, Keillen Ndlovu said “we like EPP. They are a strong operator in a very strong market and they have improved their asset management this year. Polish growth is supported by factors in Poland itself as well as its neighbour, Germany”.

The results released by the firm shows the real estate group which has a market capitalisation of about 15.2 billion rand, grew its net property income 37 percent year-on-year to €102.2 million.

EPP has embraced its strategy of disinvesting from offices so it can focus on being the largest owner of retail centres in Poland.It currently has a portfolio of 19 retail properties, six office buildings and two development sites in capital city Warsaw, with one under construction.

Hadley Dean, CEO of EPP said he was happy with the company’s performance so far in 2018 and that earnings available for distribution per share were 8.75 euro cents. He said “operationally the business continues to perform well, with like-for-like net rental income growth for the nine months of 4.2 percent”.

Dean noted that EPP’s retail centres had performed strongly in the reporting period as Poland’s economy continued to thrive. Poland’s economy was expected to grow 4.4 percent in 2018.

EPP’s property portfolio exceeded €2 billion (31.97 billion rand) in value at the end of September.

 

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