CPIPG has published unaudited financial results for the Q3 period 2024. The company is planning to continue in its disposals also in upcoming years. To execute this CPIPG has strengthened its team.
CPIPG’s property portfolio was €18.6 billion (versus €19.5 billion at year-end 2023), reflecting completed disposals and negative FX and valuation movements, partially offset by CapEx investments. The Group closed over €1.2 billion of gross disposals year-to-date.
€440 million of signed disposals are expected to close in the coming months, while €400 million of disposals have received at least one letter of intent and/or are in the due diligence stage. CPIPG’s total disposal pipeline under consideration exceeds €3 billion. The Group targets disposals of more than €1 billion in 2025 and at least €500 million annually in subsequent years. If successful, the Group expects disposals to gradually return Net LTV towards our target level of 40%, which should support an eventual return to investment-grade credit ratings.
Net rental income increased by almost 3% to €627 million, driven by like-for-like rental growth of 3.6%. Consolidated adjusted EBITDA was €594 million. Total available liquidity was €2.1 billion at the end of Q3 2024.
Occupancy remained at 91% with a stable WAULT of 3.4 years. Group occupancy slightly declined by 0.4%. Across its segments, retail continues to perform well, with an occupancy of 97%, as consumer spending remains robust. Offices in the region are resilient, due in part to limited construction activity. Some recent declines in occupancy (e.g., Warsaw) are expected to be offset by leases signed in Q4. Hotels performed well with rising average daily room rates and improvements in average occupancy.
CPIPG issued €700 million of long 7-year bonds on 27 September 2024. On 1 October, the Group repurchased more than €671 million of bonds maturing in 2026 and 2027. As a result, both cash and gross debt are temporarily inflated as of 30 September.
“CPIPG’s Q3 operational results were solid, and we made good progress on capital structure and liquidity,” said David Greenbaum, CEO. “While the Group is not immune to macroeconomic trends facing Germany and other countries, we believe the combination of low interest rates and a lack of new construction will support both tenant and investor demand for high-quality CEE real estate.”
To further strengthen management and accelerate the disposal pipeline, CPIPG announces that Květa Vojtová and Michal Felcman will join the Group at the beginning of 2025. As a dynamic duo, Květa and Michal will focus primarily on working with country management to execute disposals and will share the title of Group Head of M&A. Both Květa and Michal are joining from CTP. In addition to her M&A role, Květa will serve as Head of Transaction Legal, while Michal will also serve as Deputy COO.
Tomáš Salajka resigned from his position as Director of Acquisitions, Asset Management, and Sales at the end of the year. Tomáš also resigned from the Board of CPIPG and the position of Managing Director effective immediately. Given that Tomáš also resigned from the Group’s Managing Director function, the Board of Directors decided to appoint Zdeněk Havelka and Pavel Měchura as Managing Directors, with immediate effect.
