CPIPG has published unaudited financial results for the six months ended 30 June 2024. Further reducing leverage and complexity remains the Group's key priority, as David Greenbaum, CEO at CPIPG explained.
Gross rental income increased by €14.5 million (3.17%) to €472 million in Q2 2024 compared to Q2 2023. The change was driven by the reclassification of hotels from PPE to Investment property (and related revenue from hotels revenue to gross rental income) of €5.1 million and inflation indexation of rental income by the Group. Net rental income increased by 5.0% to €418 million despite disposals driven by like-for-like rental growth of 4.4%. Net business income rose to €443 million.
Net valuation loss of €153.7 million in Q2 2024 was represented primarily by revaluation loss generated by S IMMO (€84.2 million), Immofinanz (€28.4 million) and selected office portfolio in Prague. Net interest expense increased by €4.0. million in Q2 2024 compared to Q2 2023, mainly due to an overall increase in the cost of financing. Immofinanz and S IMMO net interest expenses increased by €4.6 million and €6.5 million, respectively. Net hotel income decreased by €11.5 million due to the disposal of part of the Group´s hotel portfolio in March 2024.
Total assets were €21.2 billion, and EPRA NRV was €6.8 billion. CPIPG’s property portfolio was €18.6 billion (versus €19.5 billion at year-end 2023) reflecting disposals, a modest decline in valuations (-0.8%) and FX movements, partially offset by CapEx investments. Total available liquidity was €1.7 billion at the end of H1 2024, covering bond maturities over the next two years.
The Group closed €980 million of disposals year-to-date. Nearly €400 million of signed disposals are expected to close in the next 2-3 months. Consolidated adjusted EBITDA was €395 million; FFO1 was €200 million.
Occupancy remained solid at 91.3% with a stable WAULT of 3.4 years. In May 2024, CPIPG issued a €500 million 5-year green bond to repay the remaining bridge facility.
Net LTV decreased to 50%, down 2.3 p.p. from year-end 2023. Net debt was reduced by more than €900 million compared to year-end.
In June 2024, the Group completed a minority equity investment in part of its portfolio in Poland from Sona Asset Management (UK) LPP for €250 million.
