Appeninn Vagyonkezelő Holding Plc., registered by the Budapest Stock Exchange and also the BUX-index, published its 2018 financial data. The revenues from rent realised by the company operating in the field of property investments and asset management, which is a significant corporation in the Hungarian commercial property market grew significantly last year: reaching EUR 7 billion, growing by HUF 2.2 billion, which is a growth of more than 42% in comparison with the amount of EUR 4.9 million at the end of 2017.
In 2018, the amount of EBITDA of Appeninn – earnings before interests, taxes and amortisation – reached EUR 19 million, which was primarily due to the increase of the value of the properties managed by the company, including new property purchases, more beneficial utilisation and rental constructions as well as a supporting market environment. Asset value per share increased from EUR 0.79 to EUR 1.31, giving stable grounds to the further growth of the company.
The company’s property portfolio was significantly expanded last year: the number of properties owned by Appeninn increased from 18 to 41, and the gross leasable area grew from 63 thousand to 93 thousand square metres. The growth is primarily due to the purchase of category “A” offices in Budapest, that is well-equipped offices located in frequented areas, offering high quality service packs, as well as properties nationwide, which may be used for retail units and further development projects.
In 2018, Appeninn purchased amongst others Ü48 Corner Center, the central office building of Takarék Kereskedelmi Bank (previously FHB Bank) on Üllői Road as well as Andrássy 59 Palace. The total value of the transactions were HUF 4.6 and 2.2 billion. Furthermore, in the scope of a sale and purchase transaction of 4.6 billion completed in August, 18 retail units were transferred to the company, which are located in the outskirts of Budapest, big towns in the countryside as well as resort areas, which are rented on the long run by SPAR Magyarország Kereskedelmi Ltd. The acquisition of Club Aliga in Balatonvilágos of an amount of HUF 4.5 billion also started this year, which was finalised in January 2019.
Appeninn presented its new strategy for the next five years in June 2018. Based on the plans, the company will establish a property portfolio in the coming years by way of dynamic expansion, offering great returns for investors on the long run and stable cash flow by way of the acquisition and development of category “A”, premium office buildings and retail properties.
According to the Chief Executive Officer of Appeninn Plc., in 2018, the company could perform and even outperform the pro-rata targets set in its five-year strategy. By way of the quantitative and qualitative growth of our property portfolio, Appeninn became a company with a stable, yet significant growth potential. According to the expert, in 2019, the company will be able to carry on further growth leaning on favourable market conditions and the company’s strengths and expertise.