Warimpex Faces Challenges Amid Strong Hotel Occupancy Rates

Warimpex Finanz- und Beteiligungs AG has reported weak Q1 2024 results despite robust performance in its hotel business. Key issues include a 9.3% decline in the investment properties segment, influenced by a weak Russian rouble and increasing difficulties with Russian tenants. Analysts at East Value Research GmbH highlight that Russia remains a significant risk, accounting for over 60% of Warimpex's turnover and 35% of its Gross Asset Value, which contributes to a high discount to NAV.

Q1 results reveal total turnover at EUR 12.1 million, marking a decrease of 6.3% year-on-year. EBITDA, EBIT, and net income also saw declines, ranging between 32.2% and 161.3% compared to the previous year. Despite obtaining permits for two new projects in Cracow and Bialystok, their completion is projected for 2027, contingent on market conditions. Additionally, Warimpex received a BREEAM certificate for its Red Tower in Lodz, underlining its commitment to sustainability.