News Article CPI Property Group Czech Republic financial report Immofinanz report S Immo
by Property Forum | Report

In the year 2022, CPI Property Group became one of Europe's largest landlords. The CPIPG portfolio reached €20.9 billion, about €7.8 billion more than the year before due to several consolidations. Consolidated adjusted EBITDA was €608 million, while FFO1 was €355 million.

“2022 was an exceptional year of change for CPIPG,” said Martin Němeček, CEO. “Through our acquisitions of Immofinanz and S Immo, the Group became one of Europe’s largest landlords. In 2023 we will focus on integration, optimisation, and reducing leverage.”

Highlights of the 2022 financial year include:

  • CPIPG’s property portfolio reached €20.9 billion (versus €13.1 billion at year-end 2021) as the Group consolidated Immofinanz (€5.3 billion) and S Immo (€3.4 billion) and made nearly €900 million of disposals during 2022. Disposals continued in 2023, with about €400m signed in Q1.
  • Total assets reached €23.5 billion, and EPRA NRV (NAV) grew to €8.0 billion.
  • Contracted gross rent was €906 million. Net rental income increased to €632 million and net business income rose to €676 million.
  • Hotels reported a net income of €46 million, reflecting the recovery of travel across Europe in 2022.
  • Consolidated adjusted EBITDA was €608 million, while FFO1 was €355 million.
  • Rental income grew 7.6% on a like-for-like basis. Rental growth was primarily organic. A high proportion of the Group’s rents are indexed; based on early data, inflation may have an 8%+ positive effect on rents in 2023.
  • Net Loan-to-Value (LTV) increased to 50.9% at year-end 2022, outside of the Group’s financial policy targets. CPIPG’s top priority is to reduce leverage through disposals and other measures and we expect a Net LTV of 45-49% by year-end 2023.
  • Total available liquidity was €2 billion, including €910 million of undrawn revolving credit facilities, the majority of which mature in early 2026. 
  • Unencumbered assets decreased to 54%, reflecting the high proportion of secured debt at Immofinanz and S Immo. CPIPG prefers senior unsecured borrowings, but in the current environment, secured loan pricing is substantially more attractive. Like CPIPG, Immofinanz and S Immo have well-established relationships with a broad range of international and regional secured lenders, which we see as an advantage.

Notable events occurring after the end of 2022

On 6 March 2023, the Group signed a €100 million unsecured term loan with MUFG with a five-year maturity. In keeping with CPIPG’s commitment to reduce the greenhouse gas emissions intensity of our property portfolio by 32.4% through 2030 versus the 2019 baseline, the loan’s margin will step up or step down on an annual basis from 2023 onwards. On 31 March 2023, the Group signed a £35 million five-year secured loan with Rothschild & Co. against a portion of our UK assets. CPIPG remains in active discussion with banks about secured loans in Germany, the Czech Republic, Poland, the UK and other geographies.

In January 2023, S Immo sold a commercial park near Munich. In March 2023, S Immo sold a large residential portfolio in Berlin. In March 2023, Immofinanz sold an office property in Vienna. In total, the Group signed disposals in Q1 2023 of about €400 million. Therefore, the Group has achieved over €750 million of gross disposal proceeds since August 2022, when CPIPG announced a disposal pipeline exceeding €2 billion to be executed over the following 12 to 24 months. CPIPG still has more than 30 disposal projects in execution, with about €1 billion of letters of intent signed.

On 24 February 2023, CPIPG announced that the Group had received a rating of BBB (on a scale of AAA – CCC) in the MSCI ESG Ratings assessment, an improvement from the previous rating of BB. Key drivers for the higher rating were the larger share of certified green buildings, green leases, and enhanced corporate governance.