CPI Property Group’s property portfolio increased by 8% to €9.9 billion compared to the end of 2019, primarily due to the acquisition of six office properties in Warsaw, Poland and a 29.4% stake in Globalworth Real Estate Investments Limited. CPIPG published unaudited financial results for the third quarter of 2020.
Key highlights for the third quarter of 2020 include:
- The portfolio growth was partly offset by €293 million of revaluation effects since the end of 2019, of which only €41 million was recognised in the third quarter.
- Net rental income increased by 15% to €251 million compared to the first nine months of 2019, reflecting the effect of acquisitions, resilient occupancy at 94% and 1.9% like-for-like growth in gross rental income.
- Consolidated adjusted EBITDA increased by 15% to €257 million compared to the first nine months of 2019 due to the increase in net rental income, the contribution from acquisitions and the impact of cost reduction measures.
- Total available liquidity at the end of Q3 was more than €1.1 billion. In November, the Group further strengthened its liquidity position by signing a new €700 million revolving credit facility which expires in 2026, with 10 international banks as lenders, replacing the €510 million facility expiring in 2022. The Group’s current liquidity position exceeds €1.3 billion.
Recent COVID-19 developments
- Following significant declines in new cases and deaths in recent weeks, on 29 November the Czech government provisionally permitted all retail including shopping centres to reopen from Thursday 3 December – at which point nearly all of the Group’s portfolio will be open. Some restrictions remain in force in other countries. For example, all non-essential retail closed in Poland on 6 November, though this only accounts for less than 2% of the Group’s portfolio. Hotels still remain largely closed and will be reopened gradually in line with demand.
Rent collection rates
- Collection rates have remained consistently strong throughout the year. In the first 9 months of 2020, the Group collected 95% of rent before the impact of one-time COVID-19 discounts and 99% after discounts.
- On 26 October, the Group reported that it had collected 95% of third quarter rents before the impact of one-time COVID-19 discounts and 97% after discounts. As the group has continued to invoice and collect rents after the period, third quarter collections have improved to 96% and 98% respectively.
- 94% of rent before discounts was collected in October. This is expected to increase as invoicing and collections continue beyond the end of the period.