EPP RETAIL PROPERTY REIT HAS BEEN TRADING WELL THROUGH THE PANDEMIC IN POLAND

EPP NV, the Luxembourg-listed Polish retail property real estate investment trust with a secondary listing on the JSE, said yesterday that 100 percent of its lettable area had been continuously operational since June 2021, with the required sanitary requirements.

The group said in an update that current pandemic regulations in force until January 31, 2022, allowed for one person per 15 square metres in shops and gyms, and for 30 percent of full occupancy in cinemas and restaurants. The stable healthcare position of the healthcare system in Poland resulted in no lockdowns being imposed on the retail industry during the last months of 2021 and early January 2022. Up to the end of December, Poland had been recovering from the Delta variant. Since the beginning of January 2022, the number of new daily infections had been increasing, although this was anticipated to be temporary. In line with other EU countries, the Omicron variant was soon expected to result in a materially higher number of infections.

From July to December 2021, when no lockdowns were in place, footfall stabilised at 83 percent of 2019 levels, while turnover ranged between 92 percent and 109 percent of pre-pandemic levels, depending on the month. The occupancy rate in EPP’s retail portfolio was at a stable 95.8 percent. Retail rental collection rates had steadily improved in 2021, reaching 95 percent in November 2021. In recent months, EPP welcomed new tenants including Netto supermarkets, Action discounts, IKEA, Tescoma and Homla with household products, RTV/AGD store by Media Expert, an Orange showroom, kaes. sport store, Empik bookstore, Pandora luxury jewellery store, Foot Locker footwear, fashion stores by HalfPrice, Giacomo

Conti, Greenpoint, Monnari and OCHNIK. The Polish government had implemented legislation that, in the case of lockdowns, provided rental relief to shopping centre tenants at the expense of landlords. EPP said hoped there would be no further lockdowns in Poland during 2022, but the Omicron wave in Europe did pose a risk in this regard. The positive sentiment of Polish shoppers was expected to continue.

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