CPI Property Group executed €731 million of disposals during the first three quarters of 2023. During the period, the Group has also signed multiple secured bank loans and continued to raise senior unsecured debt, contributing to a total of almost €1.2 billion in new external financing year to date.
“CPIPG has once again delivered solid operational performance, and real estate fundamentals in our region remain strong,” said David Greenbaum, CEO. “Disposals are progressing well, we continue to complete new external financing, and our liquidity profile is excellent.”
Highlights for Q1-Q3 2023
- CPIPG’s property portfolio was €20.3 billion (versus €20.9 billion at year-end 2022)
- The Group executed €731 million of disposals during the first three quarters of 2023. More than €1.5 billion of disposals have been signed since CPIPG’s €2 billion disposal plan was announced in August 2022.
- Net rental income increased to €609 million and net business income rose to €674 million. Rental income grew 8.2% on a like-for-like basis.
- Consolidated adjusted EBITDA was €604 million, while FFO1 was €312 million.
- Net Loan-to-Value (LTV) decreased to 50.6%, down 0.3 p.p. from year-end 2022.
- The Group signed multiple secured bank loans and continued to raise senior unsecured debt, contributing to a total of almost €1.2 billion in new external financing year to date.
- Total available liquidity was €1.7 billion as of 30 September 2023.
Recent disposals
In August 2022, CPIPG announced a €2 billion disposal pipeline. Since then, more than €1.5 billion of disposals have been signed, meaning that CPIPG is currently slightly ahead of schedule. On average, the Group’s signed disposals have occurred at a premium to book value. November was a particularly active month for disposals.
First, S Immo completed the sale of 161 residential and nine commercial units at the Adlerhof in Vienna to Thalhof Immobilien.
Second, CPIPG signed a binding agreement for the sale of Sunčani Hvar Hotels to Eagle Hills for more than €200 million, a premium of more than 30% to book value.
Finally, CPIPG announced also the signing of a binding agreement for the sale of our assets in Crans Montana, Switzerland to Vail Resorts for more than CHF 100 million, or about double the book value.
CPIPG intends to exceed (and ideally, significantly exceed) our €2 billion target by August 2024. Assets in the disposal pipeline include residential, office, land bank and hotels in Germany, Austria, the Czech Republic, and the UK.
Financing and debt maturities
CPIPG signed nearly €1.2 billion of new secured and unsecured financing during 2023, including €187 million after the reporting period ending September 2023. New loans have been drawn from Aareal Bank, Unicredit, ČSOB, RBI, MUFG, Berlin Hyp, Deutsche Pfandbriefbank, Komerční banka, Erste Bank and Rothschild.
On 30 November 2023, CPIPG drew a new €635 million 3-year bridge loan from Santander, Societe Generale/Komerční banka, RBI, SMBC, Barclays and Erste Bank. The loan replaces all previous bridge facilities related to the acquisitions of Immofinanz and S Immo.
In total, CPIPG has repaid more than €2 billion of bridge financing since 2022, including €756 million since the end of June 2023. CPIPG has €1.2 billion of debt maturing in 2024 and 2025, relative to €1.7 billion of liquidity as of Q3 2023.
The only significant debt maturity in the next 24 months is a €478 million loan secured against assets in Berlin, which matures in October 2024; CPIPG is in advanced negotiations and expects to achieve a 7-year prolongation of the loan before the end of 2023. In 2025, the largest maturities relate to secured bank financing in Poland, where refinancing conditions remain favourable.
Changes to the Board of Directors and Senior Management Team
On 20 November 2023, David Greenbaum, CFO of the Group since 2018, was appointed CEO and managing director and was co-opted to CPIPG´s Board of Directors. David replaces Martin Němeček, who resigned from his role of CEO, managing director, and member of the Board of Directors. After a short break, Martin will remain with CPIPG in a newly created senior role focused on high-value projects.
Zdeněk Havelka, currently executive director, was appointed to the newly created position of Chief Operating Officer (COO). Pavel Měchura, Group Finance Director, will remain in his role and will become the sole head of the finance division. Tomáš Salajka, Head of Acquisitions, Asset Management and Sales, has been appointed as Managing Director (administrateur délégué) of CPIPG. His role and the role of Jan Kratina, Director of CPI Hotels, are otherwise unchanged.
