The JSE-listed company is on target to deliver full year dividends between 11.6 - 11.8 Euro cents.

EPP’s results show distributable earnings increased 32% to EUR48.3 million. Net property income growth increased 45% to EUR66.2 million. EPP’s successful acquisition of the first tranche of its three-phase M1 portfolio deal added 194,000m2 to its retail property portfolio, increasing total income-producing assets to more than EUR2 billion. Net asset value (NAV) per share increased 4% to EUR1.37.

Hadley Dean, CEO of EPP, comments: “We are pleased with the performance in the first half. Even with the new Sunday sales ban, our asset and property management teams were able to achieve strong returns. The retail sector in Poland continues to be fuelled by a growing middle class, and our vacancy rates remain below 1%.”

EPP grew closer to its stated goal of becoming a pure retail-focused company by expanding the share of retail property in its portfolio from 74% from the previous year to 85%, with retail gross lettable area (GLA) rising to 638,815m2.

Dean says: “The strong macroeconomic conditions in Poland, with increasing employment, wage growth and consumer spending have exciting potential for consumption and retail sales growth. Poland is experiencing GDP growth well above the EU average, and Poland will continue to be the key spot in Europe for growth in retail during the next few years.”

With its M1 acquisition pipeline, EPP is set to own 28 shopping centres spanning more than a million square metres, all within a 30-minute drive of 40% of Poland’s wealthiest regions by 2020.

After the close of its half-year, EPP also acquired the King Cross Marcelin shopping centre of 45,300m2 in affluent western Poznan.

Construction of Galeria Młociny, EPP’s flagship Warsaw development, is on track and on schedule to open in spring 2019 with pre-letting currently at 87%.