In the first half of 2024, the Group achieved a net profit of over €3.5 million (PLN 15 million) attributable to shareholders of the parent company. During this period, the company sold 882 apartments, marking an increase of nearly 10% compared to the same period last year. The number of apartments handed over to customers reached 480. By the end of the year, the group plans to sell a total of 2,600 apartments, bringing it closer to its long-term goal of selling 4,000 apartments annually.

"In the first half of 2024, despite a variable macroeconomic environment affecting property valuations and consumer behaviour, we strengthened the Group's position in key sectors of the market. In addition to stable growth in apartment sales, we also expanded into the private student housing segment, where we see significant potential and an alternative source of solid profits", says Nicklas Lindberg, CEO of Echo Investment.

Growth in the living segment, including the first StudentSpace projects in progress

The portfolio of the Resi4Rent platform grew in the first half of the year to 4,400 ready-to-rent apartments in 15 locations, making it the largest entity in the PRS market in Poland. By the end of the year, Resi4Rent will have over 6,200 operating units of this type and another 4,000 under construction.

In September, construction officially began on the first two projects under the new private student housing platform StudentSpace – a joint venture of Echo Investment, Signal Capital Partners, and Griffin Capital Partners. The first two dormitories are being built in Kraków and will offer a total of 1,200 beds. Ultimately, the StudentSpace brand plans to provide accommodation and study spaces for around 5,000 students in the country's largest academic centres.

Key projects on schedule

The group is currently developing over 4,400 apartments for sale, with construction on more than 1,700 starting in the first half of the year. The start of construction on an additional 2,300 units is planned by the end of the year.

In Warsaw, the Office House building (31,000 sqm) and the M7 apartment building (140 premium apartments) are progressing according to plan within the Towarowa 22 multifunctional quarter. Office House has attracted strong interest from prospective tenants, and by the end of September, the building's occupancy rate will reach 65%.

In Wrocław, Echo Investment continues the construction of the first phase of Swobodna SPOT, and in Kraków, the WITA mixed-use project, which includes over 26,000 sqm of commercial space and 176 comfortable apartments.

Real estate portfolio worth PLN 6.5 billion

"Implementing top-quality projects in the spirit of ESG, diversifying our portfolio, and maintaining partnership relations with leading investors and financial institutions remain the foundations of our business, enabling the Group to successfully reach new stages of development. The funds raised through bond issues support our development plans, along with the high cash balance in the Group, which amounted to PLN 523 million at the end of the second quarter", comments Maciej Drozd, CFO at Echo Investment.

In the first half of 2024, Echo Investment, together with EPP, also finalized the green refinancing of Galeria Młociny, amounting to over EUR 145 million.

In the first half of the year, retail properties - Galeria Młociny and Libero - maintained a stable market position in Warsaw and Katowice, thanks to the continuous expansion of their offerings and strong marketing support. Both properties boast nearly 100% occupancy. In the second quarter of 2024, Galeria Młociny's turnover increased by 9%, and footfall by 5% compared to the same period last year. Libero saw a 5% increase in turnover and an 8% increase in footfall.