Net profit of PLN 51 million, an increase in the value of office projects under construction and handing over to customers 399 apartments – this is a brief summary of Q1 2022 results of Echo Investment Group. The developer also published its second sustainability report where it summarised last year's achievements and results in the areas of environmental, social and corporate governance.
In the first quarter of 2022, Echo-Archicom Group sold 704 apartments. The largest number of transactions concerned Archicom’s Olimpia Port and Słoneczne Stabłowice in Wrocław, as well as Echo’s Bonarka Living II projects in Kraków and Rytm in Warsaw. By March 2022, the Group has started the construction of 981apartments, and by the end of the year it plans to start another 2.4 thous.
Resi4Rent, the largest company with apartments for rent in Poland, currently has over 2.3 thous. finished and fully rented premises, while over 1.8 thous. new ones are under construction. By the end of 2022, Resi4Rent will offer 3 thous. finished apartments. On top of that, striving to achieve the Group’s goal, which is to deliver 10 thous. apartments for rent until 2024, Resi4Rent is going to start another 3,8 thous. still this year.
“Jointly in the residential sector, we are working on the Echo, Archicom and Resi4Rent projects’ pipeline, in which there will be a total of approx. 21 thous. apartments for sale and rent. Standardization and packaging of construction works enables us to start new projects at the best prices. The beginning of the years was also successful for us in the office sector. We have recently completed the construction of React I and Fuzja C & D office buildings in Łódź, as well as MidPoint 71 in Wrocław. We are pleased with the high level of lease of our projects and with the fact that first tenants have already moved into the buildings”, comments Nicklas Lindberg, Echo Investment’s CEO.
In January, Echo Investment sold the first stage of the West 4 Business Hub office complex in Wrocław to Solida Capital. The transaction was worth EUR 40 million. The company is currently in advanced negotiations on the divestment of other buildings, and planning ahead – it is preparing new projects.
Libero shopping center in Katowice and Galeria Młociny in Warsaw are operating at full capacity, strengthening their position on local markets. Due to high footfall and, more importantly, tenants' turnover, which in Libero was 55% higher than in 2019, both projects remain fully leased and attract new clients and retail brands.
“Our net profit in the first quarter of 2022 amounted to PLN 51 million and was over two times higher than in the corresponding period of 2021. The Group maintains a high level of cash: at the end of the first quarter it was PLN 730 million. The value of our assets still increases and at the end of the first quarter it amounted to over PLN 6.7 billion,” says Maciej Drozd, Echo Investment’s CFO.
Simultaneously with the financial report, Echo Investment published its second sustainable development report, which describes the way the company manages its impact on the natural environment and climate. The publication also presents relations with employees and the local community directly related to the construction sites of Echo Investment. Due to the incomplete year of consolidation and the need to develop common standards, the report does not yet include data from Archicom, which was acquired last year.