Poland's PHN plans big expansion of property portfolio

Polski Holding Nieruchomosci SA

11/09/2014 11:28

WARSAW, Sept 11 (Reuters) - Poland's state-controlled real 
estate group PHN  PHN.WA  is planning a major expansion of its 
property portfolio, which it aims to almost triple in value to 
5.7 billion zlotys ($1.8 billion) over the next nine years, it 
said on Thursday. 
    However, its net assets level will increase by only about 75 
percent as the firm takes on debt to fund the expansion.  
    PHN's real estate portfolio is worth 2 billion zlotys, with 
net assets worth 1.9 billion zlotys. As part of its acquisition 
spree, it said it could spend more than 1 billion zlotys to buy 
modern commercial office spaces. 
    One of the aims of the expansion strategy is to raise the 
yield on its portfolio to above 6 percent, from 4.1 percent.  
    PHN said dividends paid out by 2023 could be equivalent to 
more than half of the increase in net assets over the same 
period. It paid out a dividend of 2.16 zlotys per share in 2014, 
or a total of 100 million zlotys. 
    Poland's state treasury owns a 70 percent stake in PHN, 
which was created by the combination of state property holdings, 
including Warsaw's oldest skyscraper. The group owns 144 real 
estate assets, mainly in Warsaw, Lodz, Gdynia and Wroclaw.    
    (1 US dollar = 3.2414 Polish zloty) 
 
 (Reporting by Marcin Goettig; Editing by Pravin Char) 
 ((marcin.goettig@thomsonreuters.com; +48226539720; Reuters 
Messaging: marcin.goettig.reuters.com@thomsonreuters.net)) 
 
Keywords: REALESTATE PHN/STRATEGY