State Real Estate (Državne nekretnine) reported record-breaking business revenues of €16.8 million from property management in 2023, marking a 7.6% increase compared to the previous year. The state-owned company announced this achievement on Wednesday.
Highlighting successful management of residential and commercial properties, the company also reported total revenues of €20.8 million for the past year, representing a 19% annual increase, with a net profit of around €4 million.
The company attributed the revenue growth to improved efficiency in receivables management and collection, an expanded portfolio, and the recognition of some income from EU-funded property investments.
In 2023, State Real Estate executed record current and investment expenditures totaling €8.6 million, significantly enhancing property values. These investments, which included the renovation and equipping of 125 apartments for temporarily housing citizens affected by earthquakes, also contributed to a 40% increase in total expenses compared to 2022. This rise in costs was compounded by inflation effects on service and utility expenses and a significant increase in managed properties.
Over 12,000 Properties Under State Management
Last year, the company signed 337 leases for commercial spaces and residential rentals. The number of tenders and commercial spaces offered to the market increased, with nine tenders for leasing 201 commercial spaces across Croatia being announced. The total value of all active lease contracts at the end of 2023 exceeded €75 million.
The company’s property portfolio significantly expanded following the enactment of the Law on the Management of State-Owned Real Estate and Movables. By June, the company was managing over 12,000 properties.
The new law, which resulted in a 45% increase in the property portfolio, also expanded the scope of tasks related to sales and dissolutions. Consequently, the company took on more than 3,000 new cases. These changes were preceded by the company’s reorganization and systematization, workforce strengthening, and the definition of new business processes to tackle the new tasks starting in 2024.
“We successfully managed properties in 2023, and driven by these results and our previous efforts, we have entered 2024 optimistically and rapidly, considering the new legal requirements that now include sales and dissolutions in addition to our existing tasks. We expect to offer around 200 commercial spaces for lease this year and prepare the first 50 properties for sale and dissolution,” said Mirela Habijanec, Board Member and Director of State Real Estate, in a statement shared in the press release.
