EPP share price jumps 8% on half-year results

Poland's largest retail landlord, EPP, is seeing a ray of hope as its share price jumped 8 per cent following the release of its interim results. Despite the challenges posed by the COVID-19 pandemic and subsequent lockdowns, EPP seems to be on a path to recovery under the leadership of CEO Tomazs Trzósło. In a recent interview with CNBC Africa, Trzósło expressed optimism about the future prospects of the company, citing the reopening of the economy and the positive impact on footfall numbers in their shopping centers. Trzósło highlighted the efforts made to support tenants during the lockdown period, which resulted in extended leases and increased rent payment security. The CEO also discussed potential strategic decisions regarding asset disposal and the company's focus on maintaining a strong liquidity position. Let's delve deeper into the key points of the interview and the bright future ahead for EPP. During the interview, Trzósło emphasized the positive impact of the Polish government's decisions in handling the COVID-19 crisis. He acknowledged the challenges faced by the company due to the lockdown restrictions but stated that the efforts taken to support tenants have started bearing fruit. The gradual increase in footfall numbers from below 50% in May to 85% in September indicates a promising recovery trend for EPP. Trzósło also underscored the importance of maintaining a safe environment in their shopping centers to ensure customer satisfaction and build investor confidence. While the CEO remains cautiously optimistic about the ongoing pandemic situation, he expressed confidence in Poland's lower infection rates compared to other European countries. The second key point of the interview focused on EPP's approach to managing its debt and asset portfolio. Trzósło clarified that the company is not actively seeking to add more debt but is open to strategic asset disposal if it aligns with their long-term strategy. He mentioned the evaluation of various office and retail assets to determine their strategic fit and potential pricing for disposal. Trzósło emphasized the importance of selecting assets carefully and optimizing the company's Loan-to-Value (LTV) ratio to strengthen its financial position. By analyzing the asset base and making strategic decisions, EPP aims to enhance its liquidity and pursue growth opportunities in line with market trends. In conclusion, EPP's future prospects appear promising as the company navigates through the challenges posed by the pandemic and focuses on strategic initiatives for growth and stability. With a strong emphasis on tenant support, asset optimization, and financial resilience, EPP under the leadership of CEO Tomazs Trzósło is poised to capitalize on Poland's attractiveness as an investment destination and drive value for its shareholders.