Increased risk appetite boosts profits, debt levels for Briq Properties

Real estate investment company Briq Properties took on more debt in the first half of the year to increase investments in logistics, reflecting an increased risk appetite in the Greek property market.

While presenting first half earnings, the company said that investment in logistics helped drive rental income 46 percent higher to 2.6 million euros. Adjusted net profit after tax shot up by 64 percent to 1.2 million euros.

“This increase was achieved despite the decrease in revenues by 951,000 euros in the first semester of 2021 due to the measures imposed due to COVID-19,” the company said in a statement.

Logistics now make up 47 percent of its property portfolio, as opposed to 14 percent in the same period a year earlier. It’s total portfolio consists of 28 assets valued at 114 million euros, the company said.

Logistics have been leading investments in commercial real estate assets in Greece as sharp changes in consumer spending patterns brought on by the pandemic have lead to increased need for storage units.

Data shows growth in ecommerce in Greece was the highest in Europe, as investments in online sales planned by business in coming years took place in a matter of months.

Briq said that it completed three investments in the first six months of the year:

-a 2.1 million euro purchase of an office building of 2.428 sqm at Gounari 3, Piraeus

-a 1.1 million euro total land purchase in Aspropyrgos, adjacent to a Logistics Park

-a 2.9 million euros capex mainly in development of Logistics Park in Aspropyrgos

With the Greek economy forecast to show strong growth this year and next and banks boosting lending to the sector, confidence among investors is rising.

Briq Properties said that its borrowings hit 26.2 million euros at the end of June, versus 18.3 million euros at the end of last year. This has pushed higher its loan-to-value ratio to 23 percent from 17.2 percent at the of 2020.