CTP reports strong half year results and is well on track to further accelerate its development, raising its GLA growth target to beyond 7.7 million m² by year-end 2021, up from 7.5 million m² as guidance at its IPO end of March 2021.
Highlights H1-2021
• On top of enjoying strong tailwinds for the logistics real estate sector, CTP further increased its leading market share by capturing nearly a third of all new leases to hold 25% market share (in terms of GLA) by the end of the first half 2021 in Czech Republic, Romania, Hungary and Slovakia.
• Solid increase in income-producing portfolio to 6.6 million m². Net rental income in the first half year increased by 17% to €160.3 million from €136.5 million in the first half of 2020.
• Net valuation result from development activities increased to €146.0 million. No revaluation took place on CTP’s income-producing portfolio during H1. Company specific adjusted EPRA Earnings increased to €0.25 per share.
• Interim dividend 2021 of €0.17 per share; pay-out ratio of 75%.
• Independent ESG rating by Sustainalytics Inc., ranking CTP in top 1.5% of companies worldwide; carbon neutrality of operations being verified by external agency.
Highlights Q2-2021
• Total land bank increased to 14.7 million m² at the end of Q2 from 13.0 million m² at the end of Q1 2021, thereby extending potential for profitable development pipeline.
• Yield-on-Cost increased to 11.8% compared to 11.5% in the first quarter 2021, on a development pipeline of 1.2 million m², despite increased construction costs and shortages in building materials.
• Value of Owned Assets stands at €6.4 billion at the end of the second quarter 2021, an increase of 5.3% compared to €6.1 billion as of 31 March 2021.
• Finalised €1 billion Green Bond issue (two tranches) to refinance banking facility. Cost of Debt decreased to 1.22% as of 30 June 2021 from 1.6% as of 31 March 2021.
Outlook FY 2021
• IPO proceeds to be further used to accelerate land bank acquisition, fund profitable pipeline development, and acquire income-producing properties at attractive conditions.
• GLA target revised upwards to over 7.7 million m² for year-end 2021 (including 390,000 m2 assets under management for Deka).
• Outlook Company specific adjusted EPRA EPS for full year 2021 expected to be around €0.50 (2020: €0.44).
Remon Vos, CEO:
“Our performance over the first half of 2021 shows the quality of our business parks, attracting high-quality tenants that drive our profitable growth. Demand in our markets continues to grow, and our CTParks are well positioned to benefit from the trends of e-commerce, supply chain optimization, last mile delivery and demand for parks designed to minimize environmental impact. Vacancy is at historic lows, and our strong customer relations has led to high retention rates with our annualised rent roll increasing 4% quarter-on-quarter to €380 million. Our execution power is strong: we successfully started as a listed company, significantly accelerated the expansion of our landbank, launched operations in the Netherlands and built up capacity in Austria, Bulgaria and Poland. We strive to expand our market leading position in the CEE countries, while we bring our park makers vision to new markets where we see great potential for further growth.”
Richard Wilkinson, CFO:
“We continue to see strong growth in profitability driven by rental growth, while the profitability of new developments continues to exceed the planned target of >10% Y-o-C. We made an excellent profit of € 188.3 million while not having any revaluation of our investment portfolio, which underlines the strength of our business model. Our financial position is very strong, having realised the IPO, finalised the move to the unsecured funding platform and increased our liquidity position. IPO proceeds are sensibly used to accelerate our expansion, with the acquisition of income-producing assets in Romania and Hungary to solidify our market leading positions in these markets. We have grown of our land bank to 14.7 million m² and are on track to exceed the previous target of 7.5 million m² GLA target per year-end, driving rental income growth in the years to come.”
CTP
