News Article CEE coronavirus CPI financial report report
by Property Forum | Report

CPI Property Group’s property portfolio increased to €9.8 billion (up 8% from year-end 2019) as the Group made €928m of acquisitions, primarily offices in Warsaw and a 29.4% stake in Globalworth. The company published its unaudited financial results for the first half of the 2020 financial year.

“CPIPG had a successful first half of 2020,” said Martin Němeček, CEO. “Our property portfolio, rental income and occupancy grew as our team responded effectively to the challenges of COVID-19.”

Key highlights for the first half of 2020 include:

  • Total assets increased to €11 billion. The Group’s results also include a fair value adjustment of -€252 million (-2.8%) because of prudent revaluations of hotels and certain retail properties, plus the impact of a weaker CZK versus EUR.
  • Net rental income was €164 million (up 13% versus H1 2019), because of acquisitions, higher occupancy at 94.8%, and 1.7% like-for-like growth in gross rental income. Net business income was €168 million (unchanged from H1 2019).
  • Consolidated adjusted EBITDA was €164 million (up 15% versus H1 2019), and funds from operations (FFO) was €115 million (up 12%).
  • The Group collected 93% of contracted rent before the impact of one-time COVID-19 discounts, and 97% including discounts.
  • Net Loan-to-Value (LTV) at 42.5% and Net ICR at 5.5x remain comfortably within the Group’s financial policy.
  • During the first half of 2020, the Group issued €1.19 billion equivalent of senior unsecured bonds in Euros, Sterling and Hong Kong Dollars. In January, CPIPG also issued SGD 150 million of perpetual hybrid bonds. The Group also signed a secured loan of €116 million.
  • Proceeds from external financings were used for acquisitions and to repay about €850 million of bonds and schuldschein maturing in 2022, 2023, 2024 and 2025.

“The Group’s capital structure, liquidity and operating performance have been robust throughout the COVID-19 outbreak,” said David Greenbaum, CFO. “During the second half of 2020, CPIPG will continue taking proactive steps to ensure we are well-positioned to meet future opportunities and challenges.”