Trei Real Estate presented its financials for 2022: In spite of the interest rate reversal and the various crises, Trei successfully continued to pursue its business activities and to expand them significantly. The property development pipeline grew from 1.7 billion euros at year-end 2021 to 2.0 billion euros by 31 December 2022 – implying a 18 percent growth. The total breaks down into 1.8 billion euros (2021: 1.5 billion euros) in residential property and 200 million euros in retail property developments.
In addition to its development activities, Trei also acts as asset manager for an income producing property portfolio. The assets under management grew from 1.3 billion euros to 1.6 billion euros in 2022 (an increase by 23 percent). Out of this total, c. 100 million euros are managed on behalf of third parties, whereas 1.5 billion euros represent Trei’s proprietary portfolio. The growth of the portfolio is attributable exclusively to completions – in Berlin, for instance, two residential projects, one on Fürstenberger Strasse and one on Winsstrasse, were finished and added to the portfolio.
Pepijn Morshuis, the CEO of Trei Real Estate, commented the year-end result: “2022 was defined by growing construction costs and rising levels of interest in all of the markets in which we are active. Development activities in general experienced a significant decline – especially as far as the launching of new projects goes. Despite or perhaps because of the drastic drop in market activities, we managed to keep expanding our development pipeline. This is not least attributable to the fact that we have a very robust equity capitalization and are less dependent on debt financing than other developers. In 2022, we decided to streamline our portfolio and to focus more strongly on our core competencies. As a result, we disposed of seven German retail properties in September and, in early 2023, of our entire Portugal portfolio, which consisted of 49 retail properties. The sale of our Czech and Slovakian portfolio is also foreseen for 2023. Going forward, we will concentrate on the development activities in Germany, Poland and the United States.”