CPIPG has published unaudited financial results for the three months ending 31 March 2024. Total assets have reached €21.5 billion, and CPIPG’s property portfolio is equal to €19.2 billion (versus €19.5 billion at year-end 2023).
The Group has closed more than €600 million of disposals year-to-date (€340 million in Q1 2024). In addition, more than €600 million of signed disposals are expected to close in the coming months. Net rental income increased by almost 6% to €208 million, supported by a strong rental income growth of 5.5% on a like-for-like basis. Net business income rose to €221 million.
Consolidated adjusted EBITDA was €199 million; FFO1 increased to €111 million. Occupancy remained at 91.4% with a stable WAULT of 3.5 years. Net debt was reduced by more than €250 million versus year-end. Total available liquidity was €1.3 billion at the end of Q1 2024.
S&P Global Ratings downgraded CPIPG from BBB- to BB+ with a negative outlook. The Group expects to remain within S&P’s rating thresholds for both a BBB- and BB+ rating with S&P adjusted debt to debt plus equity below 60%, an EBITDA interest coverage of above 1.8x, and a debt to annualised EBITDA below 14x-15x in 2024 and 13x-14x in 2025. The Group will target stabilising its outlook and eventually regaining the investment grade rating with S&P.
CPIPG has €184 million of debt maturities for the remainder of 2024, and €401 million in 2025. Nearly all the debt relates to secured bank loans. CPIPG has a €700 million revolving credit facility (RCF) with a large syndicate of banks maturing in January 2026.
Since the end of Q1, the Group received about €150 million in net cash proceeds from disposals. €449 million in additional net proceeds are expected in Q2 / Q3 from disposals signed but not yet closed. The Group’s disposal pipeline under discussion still exceeds €2 billion. In total, the Group is currently in discussions with secured lenders for €267 million of fresh financing. CPIPG is currently engaged in discussions with several international investors for up to €800 million of minority equity investments in Poland, Germany, and Italy.
As part of its ongoing deleveraging efforts, CPIPG will reduce distributions relative to its target of 65% of FFO, just as it did in 2022 and 2023. As stated, the Group intends to distribute to its shareholders only via share buybacks going forward, with final decisions on distributions made in Q4 each year.
Gross rental income increased by €8.0 million (3.5%) to €237.2 million in Q1 2024 compared to Q1 2023. The increase was primarily driven by rent indexation. Property operating costs decreased by €6.0 million in Q1 2024 compared to Q1 2023, primarily due to lower repairs, maintenance, and personnel costs. Administrative expenses increased by €6.0 million in Q1 2024 compared to Q1 2023, primarily due to an increase in admin payroll costs and overall advisory costs.
Net valuation loss of €22.6 million in Q1 2024, represented primarily by revaluation loss generated by S Immo. Interest expense increased by €14.5 million in Q1 2024 compared to Q1 2023, mainly due to an overall increase in the cost of financing.
Total assets decreased by €465.0 million (2.1%) to €21,465.3 million as of 31 March 2024 compared to 31 December 2023. Total liabilities decreased by €438.8 million (3.2%) to €13,234.2 million as of 31 March 2024 compared to 31 December 2023, primarily due to a decrease in financial debts (€201.5 million) and bonds issued (€151.9 million).
Total equity decreased by €26.1 million from €8,257.2 million as at 31 December 2023 to €8,231.1 million as at 31 March 2024.
