In the first quarter of 2024, the Echo Investment Group successfully continued to execute its strategic plans in key sectors of the real estate market, including increasing involvement in the living segment by entering the PBSA market. Total value of the Group's assets at the end of March this year amounted to over PLN 6.2 billion, and cash reserves exceeded PLN 772 million.

In the first quarter of 2024, the Group generated PLN 13.3 million of net profit attributable to the shareholders of the parent company. This result was mainly driven by handing over the keys to 415 apartments to customers. In that period the Group sold another 410 residential units. Currently, the Group owns a land bank that allows to develop approximately 10,000 apartments for sale under the Archicom brand in the largest cities in Poland.

– When developing our business based on a profitable growth strategy, we focus on new high quality projects in the residential and commercial sectors, as well as on alternative ventures in the living segment. This approach provided us with stable first quarter of 2024, including a business growth into the PBSA sector that has a great potential, and the basis for strengthening an attractive offer for our clients, investors and other stakeholders – says Nicklas Lindberg, CEO of Echo Investment.

Increased involvement in the living sector

Resi4Rent platform already has over 4,100 ready-made apartments for rent – this is over a quarter of the total PRS resources in Poland. Resi4Rent portfolio includes over 8,800 units under development or in planning stage, of which the construction of 371 of units started in the first quarter of this year.

Thanks to obtaining the consent of the Office of Competition and Consumer Protection, Echo Investment has come closer to its first private student housing projects as part of a joint-venture with Signal Capital Partners. The construction of modern dormitories in Warsaw and Krakow will start soon, and ultimately the new platform will provide comfortable places for rest and study for approx. 5,000 students in the largest academic centres in Poland.

Impressive pipeline of ongoing projects

Currently, over 4,000 apartments for sale are being developed within the Echo-Archicom Group, and construction of another 2,900 units will start by the end of this year. The construction of over 1,300 apartments began in the first quarter of 2024.

In Warsaw, the Office House has reached the shell & core stage (31,000 sq m), and the construction of the M7 apartment building (140 premium apartments under the Archicom Collection brand) has started next door – these are the first office and residential components of the multifunctional Towarowa 22 quarter. In Wrocław, the construction of the first stage of Swobodna SPOT office project is progressing. In Krakow, the Group is ready to start the construction of the WITA mixed-use project, including over 26,000 sq m commercial space as well as 176 comfortable apartments.

High interest in the Echo Investment's commercial projects

All completed Echo Investment’s office buildings are fully leased, and in the case of projects under construction, advanced talks with potential tenants are underway. Due to the more active attitude of investors, the Group is prepared to sell selected, completed office assets in regional cities. These processes are expected to be finalized in the second half of 2024 and the first half of 2025.

In the first quarter of this year, retail properties in the Echo Investment’s portfolio - Galeria Młociny and Libero, have maintained a stable position on the Warsaw and Katowice markets thanks to the continuous expansion of the offer and strong marketing support. Both centres are nearly 100% leased. The turnover of Galeria Młociny increased by 9% and footfall increased by 1% compared to the same period last year. In the case of Libero, turnover was 10% higher and footfall increased by 14% compared to the first quarter of 2023.

– Our results confirm the strong position of the leading business lines within the Group, as well as the high evaluation of our projects by the market and by the costumers, including leading financial institutions. Our activities are invariably guided by the Group’s profitable growth strategy and the ESG strategy. To strengthen the latter, in 2024 we have started the revision of our ESG targets, including the result of Double Materiality assessment. This approach will provide us with greater transparency, contribute to better decision-making and ensure that we dedicate our time and resources to the most important issues for both the Echo Investment Group and our stakeholders, including the society – comments Maciej Drozd, CFO at Echo Investment.

PLN 408 million from new bond issues

In the first quarter of 2024, further series of Echo Investment bonds for individual investors with a total value of PLN 140 million as well as Echo and Archicom bonds for institutional investors worth PLN 268 million were introduced to stock exchange trading.

The funds obtained through the issues support the Group’s development plans along with a high cash balance - at the end of the first quarter of this year it was over PLN 772 million.