Akropolis Group’s 2022 results: the acquisition of Akropole Alfa and the cancellation of pandemic restrictions has led to increased tenants’ turnover, income and EBITDA

  • 2023-04-11

The year 2022 is the first full year when the financial results of Akropolis Group are calculated together with the financial results of the shopping centre Akropole Alfa in Riga. That, and the cancellation of pandemic restrictions at the beginning of 2022 had the biggest impact on consolidated financial results of Akropolis Group in 2022. The tenants’ turnover in five shopping and entertainment centres managed by the group amounted to EUR 1.11 billion last year, 67 % more compared to 2021. Group’s 2022 rental income amounted to EUR 75.1 million, its earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to EUR 71.9 million, respectively by 31 % and 26 % more compared to 2021.

“At the beginning of 2022, the coronavirus restrictions were lifted, which had a positive effect on the visitor footfall and the tenants’ turnover in the shopping centres, which grew last year compared to 2021. In Akropolis shopping centres, including the results of the shopping centre Akropole Alfa, acquired in late 2021 and fully integrated into the group structure during the past year, we had more than 41 million visitors last year, though the pre-pandemic visitor footfall levels were not reached yet, however, the annual Akropolis tenants’ turnover, having eliminated the inflation effect, was back to the pre-pandemic levels. The attractiveness of Akropolis shopping centres for both partners and visitors is reflected by their occupancy rate, which remained very high last year and was 98%. The financial performance of Akropolis Group also improved last year, the company maintains a strong position in the Baltic market, though last year’s energy pricing challenges have decreased group’s profitability level, which haven’t reached the prepandemic level,” Manfredas Dargužis, the CEO of Akropolis Group comments.

According to M. Dargužis, the shopping centres managed by Akropolis Group seek to offer the widest selection of relevant brands, services and leisure places. The company actively works with existing and potential partners, new brands are presented to visitors, popular brands’ shops are revamped and expanded. During last year, after the successful integration of the shopping centre Akropole Alfa into the Akropolis Group structure and renaming it, popular brands Deichmann, Ballzy, Pepco, Scalini, Este, Candy Pop and other brands opened their shops in this shopping centre. 

The international credit rating agencies S&P Global Ratings and Fitch Ratings in, respectively, June and August 2022, reconfirmed the long-term credit ratings of Akropolis Group as BB+ with a stable outlook. Akropolis Group was first rated in 2021, before the placement of its debut EUR 300 million 5-year bond issue (with 2.875% annual interest). The bonds of Akropolis Group are listed on Nasdaq Vilnius and Euronext Dublin stock exchanges.

Planned investments

Akropolis Group continues investing in revamping and development of its shopping centres. Currently, the interior renovation project of the common spaces of Klaipėda Akropolis is going on, during which spaces with the area of more than 10,000 m2 will be renovated. A one-storey building of 480 m2 is going to be constructed nearby the shopping and entertainment centre Akropolis  Vilnius, which will emerge replacing temporary structures that are currently there and will allow expanding the retail areas. 

“We are actively working with the largest development project of our group – development of the multifunctional complex Akropolis Vingis in Vilnius. Last year, after the presentation of the design to the public, the Vilnius City Municipality approved of the design proposals for the multifunctional quarter planned in Vilkpėdė district. We are currently preparing a technical design for Akropolis Vingis, and at the end of this year we expect to obtain a document permitting construction,” the CEO of Akropolis Group says.

Akropolis Group pays great attention to sustainable activities. In 2022, it was decided to adopt a systematic approach to sustainability, and the Group launched the preparation of its sustainability strategy, which will include ambitious short and long-term sustainability goals. In order to increase the efficient use of energy resources in the shopping centres of the group, processes related to this were reviewed and optimised last year. 4 out of 5 shopping centres of the group are certified according to the BREEAM standard of BRE Global organisation, and the shopping centre Akropole Alfa in Riga, acquired in late 2021, is expected to be certified according to this standard this year. 

The results of Riga’s shopping and entertainment centre Akropole Alfa, acquired by Akropolis Group in autumn 2021, was consolidated into the financial statements of the group from December 2021.

About Akropolis Group:

Akropolis Group, the leading shopping and entertainment centres development and management company in the Baltics, holds companies providing shopping centres development and management services in Lithuania and Latvia. In Lithuania, Akropolis Group manages shopping and entertainment centres Akropolis in Vilnius, Klaipėda and Šiauliai, whereas in Latvia – Akropole Riga and Akropole Alfa in Riga.