Trei Real Estate mid-year 2024: assets stable at €1.3 billion, development pipeline adjusted

Trei Real Estate has released its mid-year figures for 2024, showing stable assets under management (AuM) at €1.3 billion despite challenging market conditions. The company also reported a reduction in its development pipeline, which now totals €1.7 billion, down by €300 million. This decline is attributed to the completion of several residential projects, including the Lotsenhof and Fischerhof developments in Mainz, Germany, as well as multi-family projects in Jacksonville, Florida, and Nashville, Tennessee. Additionally, Trei sold three apartment complexes in Berlin, built on the sites of former single-storey supermarkets, and disposed of a convenience center in Murnau, Bavaria. These disposals, however, were offset by the transfer of completed projects into the company’s proprietary holdings.

To continue its development activities, Trei secured approximately €150 million in corporate financing during the first half of 2024, bringing its debt-to-equity ratio to 36 percent.

Pepijn Morshuis, CEO of Trei Real Estate, commented, “Our mid-year results demonstrate that we are on track despite the challenging environment. The stable performance of our assets and the successful completion of projects in Mainz and the US highlight our ability to deliver results. We are especially proud of our progress in the southeastern US, where demand for high-end rental apartments remains strong, presenting significant potential for further projects.”

Trei has focused its strategy on its core markets of Germany, Poland, and the United States, following the sale of its portfolios in Portugal, the Czech Republic, and Slovakia in 2023. The company’s residential developments have increasingly shifted to Poland and the US. In Poland, Trei is working on around 2,500 rental and ownership apartments, while in the southeastern US, it is developing about 2,000 rental apartments. In Germany, the company is planning to develop 1,150 rental apartments. Trei is also expanding its retail park operations under the Vendo Park brand in Poland, with 15 projects currently in various stages of planning and construction.

Morshuis highlighted the challenges of the German market, noting, “Property developers in Germany need a lot of staying power, and planning certainty is crucial. The approval process in Berlin, for instance, averages ten years, which is an issue we have not encountered in Poland or the US. While we currently have six projects in the planning stage in Germany, it’s increasingly difficult to find attractive opportunities to expand our portfolio here. Our prospects in Poland and the US are much more promising, and we will continue to focus our efforts on these markets.”

In the US, Trei is exploring new investment opportunities and plans to seek joint venture partners for upcoming projects.