PHN Group With Record Adjusted EBITDA of PLN 173.0 Million for 2024

Last year, PHN Group achieved its highest-ever sales revenue of PLN 815.8M, up by 43.5% from 2023, which is a cumulative effect of significant revenue increases generated in key business segments. This allowed the company to generate gross profit on sales of PLN 199.0M, an increase of 14.3% year-on-year.

PHN Group continued to pursue its strategic goal of increasing its value and focused on activities related to developing a new growth strategy and improving its financial position.

“We are consistently rebuilding our business operations to not only maintain a stable and secure market and financial position, but also to make the Group more dynamic. An analysis of the Group’s financial situation, after taking up the reins of the company in April 2024, indicated an urgent need to outline changes, and the results of the most recently completed audits may provide grounds for notifying the prosecutor’s office. In March of this year, we unveiled the 2025-2030 “New Start” strategy as a response to the aforementioned need for setting a fresh direction. The next six years are a time for Polski Holding Nieruchomości S.A. to strategically strengthen its market position and take advantage of opportunities presented by the business environment. The strategy we have developed combines an in-depth and realistic assessment of the baseline situation combined with the ambition inherent in an industry leader. I am confident that it will be an effective compass guiding us to achieve our business goals,” said Wiesław Malicki, President of the Management Board of Polski Holding Nieruchomości S.A.

In 2024, rental income rose to PLN 295.0M from PLN 248.8M in the previous year, an increase of 18.5% year-on-year. This allowed the company to generate a rental profit of PLN 186.6M, which was 22.4% higher than in the same period last year. Even higher growth was recorded by the PHN Group in the development business segment, which is mainly due to the apartments commissioned in 2024 from the KOLEJ NA 19 project in Warsaw and Osiedle ŁAN in Wrocław. Profit from development activities in 2024 amounted to PLN 51.9M, compared to PLN 7.4M in the previous year.

At the same time, due to, among others, impairment of the fair value of investment properties of PLN 137.2M, PHN Group reported a net loss of PLN 184.4M. The value of this balance sheet item was also significantly affected by the contract from 2022 for construction works signed with Chemobudowa Kraków S.A. This contract generated a loss of PLN 51.6 million in the period 2022-2024. Due to doubts about the supervision and settlement of the contract, particularly for 2023, an audit was commissioned, which was completed in 2025. The conclusions of the audit will form the basis for submitting a report to the prosecutor’s office of a suspected crime, as a result of which PHN Group may have actually suffered a loss of PLN 51.6M.

“Adjusted EBITDA, which best reflects the result of our operating activities, reached PLN 173.0 million. I am all the more pleased that this is the highest result in this area in the entire fourteen-year history of Polski Holding Nieruchomości S.A. and has significantly improved the operating profitability of our business and the return on equity. In the past year, we also improved our liquidity to become a reliable partner for our contractors, business partners and stakeholders. In March this year, we successfully ended a dispute with the tax authorities, resulting in a refund of PLN 215.9 million, which will positively affect PHN Group’s result and capital in the next reporting year and strengthen our financial stability. The results achieved, despite the loss generated, allow us to look into the future with significant and justified optimism,” Wiesław Malicki added.

In the past year, PHN Group continued to implement its investment program, including both commercial and residential projects. Construction has begun of the VENA office building in Warsaw’s Wola district – a modern, 12-storey A-class building with a leasable area of about 15,000 sqm. At the same time, preparations are underway for another major office project in the capital, which involves the construction of more than 26,000 sqm of modern space. In the residential segment, the PHN Group completed construction of two projects in 2024 – KOLEJ NA 19 in Warsaw and Osiedle ŁAN in Wrocław. In February this year, the second stage of the Osiedle Olimpijczyk project in Łódź was also completed. Four projects are currently under construction – Młoda Białołęka II, Nowa Nakielska by PHN, Apartamenty Jana Pawła II 34 and the Nowe Zabłocie development. The developments currently under construction will in total deliver more than 500 apartments to the market in Warsaw, Bydgoszcz and Krakow. More projects are in the pipeline – including the first stage of a residential project in Łężyca (Zielona Góra), a continuation of the prestigious Yacht Park development in Gdynia, and new stages of Młoda Białołęka and Osiedle ŁAN.

Renewable energy projects are one of PHN Group’s new directions. Recently, financing was successfully obtained for the development of an 18 MW large-scale photovoltaic farm. The project to build a photovoltaic farm in Owińska (Czerwonak municipality, Greater Poland) is the company’s first such undertaking. Under the terms of the financing, more than 70% of the energy produced (about 12 GWh per year) will be allocated to PHN Group’s real estate needs, reducing the buildings’ carbon footprint and increasing the attractiveness of rental to current and future tenants.

“The past year was also a period for PHN Group to integrate ESG issues into its processes at the individual companies. We engaged key stakeholders in a survey as part of a demanding double materiality analysis process to learn about their expectations and observations toward PHN Group’s sustainability efforts. For the first time, we also made a full calculation of the carbon footprint. Our priority will be to reduce greenhouse gas emissions, develop environmentally friendly projects, and build awareness of sustainable development among employees and business partners,” Wiesław Malicki added.

The year 2024, despite significant challenges such as rising material and energy costs, changing regulations, corrections in the housing market and pressure to implement innovative green solutions, confirmed the rebuilding of PHN Group’s financial potential. Maintaining the high quality of the real estate portfolio, effective implementation of the investment program, and the implementation of an integrated development strategy create a solid foundation for further strengthening PHN Group’s position on the Polish real estate market.

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ABOUT THE PHN GROUP

Polski Holding Nieruchomości S.A. is one of the largest groups in the Polish commercial property sector in terms of the market value of its portfolio. PHN Group has a diversified business profile – it is primarily active in the office, residential and logistics markets. PHN Group’s portfolio comprises more than 150 standalone properties with a market value of approx. PLN 3.5B. PHN Group provides comprehensive rental and management services – it currently manages more than 500,000 sqm of leasable space. PHN Group owns about 270 hectares of land earmarked for projects in various market segments. PHN Group is also active in the construction sector – by providing general contracting, subcontracting and design services, as well as in the development sector as an investor – by carrying out projects related to the construction and sale of residential units and the construction of commercial buildings. PHN Group’s main market is Poland. PHN’s activities in the rental segment are concentrated primarily in Warsaw and the largest regional cities, including the Tri-City, Poznań, Kraków, Katowice, Łódź and Wrocław. PHN has been listed on the Warsaw Stock Exchange since 13 February 2013.