Sunday, 25 May 2025
The Develia Group posted a net profit of PLN 65.2 million in the first quarter of 2025, down from PLN 84.4 million in the same period of 2024. Sales revenue for the quarter reached PLN 253.5 million, reflecting a 37% year-on-year decline, primarily due to a lower volume of apartment handovers.
From January to March, the developer sold 951 residential units, slightly below the 1,038 units sold in the corresponding period last year. A total of 524 apartments were handed over during the quarter, representing a 12% decrease year-on-year. According to the company, the majority of deliveries are scheduled for the final quarter of 2025, with full-year handover targets set between 2,900 and 3,100 units.
Gross profit from development activities for the first quarter stood at PLN 79.2 million. EBITDA reached PLN 47.5 million, while adjusted EBITDA was PLN 49.6 million. The group’s return on equity (ROE) declined to 3.65% from 5.16% in Q1 2024.
As of the end of March, Develia held PLN 682.5 million in cash and short-term financial assets, down from PLN 840.6 million at the end of 2024. Financial liabilities amounted to PLN 893.2 million, compared to PLN 915.0 million at year-end 2024.
Joint venture projects, particularly those conducted with Grupo Lar Polska, had a significant impact on results. In Q1 2025, 30% of all units handed over were part of these joint ventures. The profit contribution from joint ventures amounted to PLN 13.3 million, a reversal from a PLN 0.7 million loss in the same period last year. These results are not included in sales revenue or EBITDA due to equity accounting.
In terms of development activity, the group’s most active projects during the quarter included Aleje Praskie and Bemowo Vita in Warsaw, Traugutta Vita and Orawska Vita in Wrocław, and Południe Vita and Przemyska Vita in Gdańsk. Other ongoing developments included Centralna Vita and City Vibe in Kraków and Królowej Jadwigi in Poznań.
In April 2025, Develia signed a preliminary agreement to acquire 100% of Bouygues Immobilier Polska for EUR 66.5 million (approx. PLN 283.6 million). The acquisition would expand Develia’s pipeline by adding approximately 1,300 apartments currently under construction or preparation and a further 2,800 units on land under preliminary agreements. The transaction is expected to close by 30 June 2025, subject to approval from the Office of Competition and Consumer Protection (UOKiK). Develia plans to finance the purchase with its own funds, with a potential option for refinancing through bank credit.
In commercial real estate, Develia is preparing for the sale of Arkady Wrocławskie, with demolition of the existing facility already underway. The transaction is planned to conclude by the end of August.
The group is also expanding its presence in alternative residential segments. In January, Develia acquired land at Orląt Lwowskich Square in Wrocław for PLN 40.6 million, where it plans to develop a purpose-built student accommodation (PBSA) facility with approximately 600 rooms and two commercial units. Construction is scheduled to begin in 2026, with completion targeted for 2028.
To support its financial strategy, Develia issued PLN 160 million in 4-year bonds in February 2025, with an interest rate based on WIBOR 3M plus a margin of 2.4%.
Vice-President Paweł Ruszczak noted that the financial performance in Q1 reflected the timing of deliveries and highlighted the group’s strong liquidity position, which enables it to fund strategic acquisitions. He also confirmed the management board’s recommendation to distribute PLN 265.5 million in dividends, equivalent to PLN 0.58 per share, marking the highest dividend in the company’s history.
