A forecast for 2022? No way, says Premia Properties

Greece's Premia Properties reported a strong set of results for first quarter of 2022 but refrained from making any forecasts for the remainder of the year due to current market uncertainty.

“The macroeconomic environment remains particularly fluid, since data on the intensity and duration of the pandemic, the energy crisis and the war in Ukraine are constantly changing, making any quantitative assessment on the impact on the local economy, the real estate market, and the group’s financial results, particularly difficult,” the company said in a statement.

Premia Properties, which recently transformed into a real estate investment company (REIC), said that group income reached 3.2 million euros for the first quarter of the year, doubling from the same period a year earlier, as it pushed ahead with expansion plans.

“Rental income has not been affected from market turbulence. Our tenants are healthy, resulting to uninterrupted cash flows. Investment property gross yield is 7,7%. Income is based on long-term contracts with a weighted average lease term (WALT) of 6.5 years. Almost all our contracts provide for rent adjustments at least on the basis of inflation,” said CEO Kostas Markazos.

Its portfolio has 29 properties: 19 investment properties with a total value of 153 million euros, versus 17 investment properties in the first quarter of last year; 10 schools under management via a service concession (PPP) contract, with the total value of relevant concession right reaching 38.7 million euros.