by Property Forum | Report

CPI Property Group’s net rental income increased by 6% to €88 million in Q1 2021 compared to Q1 2020. Consolidated adjusted EBITDA increased by 7% to €90 million and funds from operations (FFO) increased by 4% to €61 million compared to Q1 2020. The company published its unaudited financial results for the first quarter of 2021.


“CPIPG’s resilient performance during Q1 2021 continued the steady trajectory of 2020,” said Martin Nemecek, CEO. “The impact of COVID-19 on the Group’s business has been mild, and we see positive trends in our key markets and property portfolios.”

Key highlights

  • CPIPG’s property portfolio increased by 2% to €10.5 billion compared to the end of 2020 due to selective acquisitions, positive revaluations and currency effects.
  • Total assets increased slightly to €11.9 billion, driven by increases to the property portfolio and partly offset by a reduction in shareholder loans.
  • Net rental income increased by 6% to €88 million compared to Q1 2020, reflecting the contribution from recent acquisitions, 0.5% like-for-like growth in gross rental income and steady occupancy.
  • Consolidated adjusted EBITDA increased by 7% to €90 million and funds from operations (FFO) increased by 4% to €61 million compared to Q1 2020 based on higher net rental income, lower costs and the Group’s proportionate share in Globalworth Real Estate Investments Limited.
  • The Group collected 91% of Q1 2021 rent before one-time COVID-19 discounts and 94% after discounts, despite non-essential retailers being closed for the entire period. CPIPG expects collections to increase as invoicing and collections continue in the second quarter.

Other notable events occurring during Q1

During Q1, CPIPG issued about €1.1 billion of senior unsecured and hybrid bonds, including the Group’s inaugural 10-year benchmark-sized issuance in Euros. The proceeds  were used in part  to  repay more than €750 million of senior unsecured bonds, Schuldschein and hybrid bonds callable or maturing in 2022, 2023 and 2024;

  • In January 2021, CPIPG concluded a mandatory tender offer for the remaining shares of Nova RE SIIQ S.p.A. A total of  9,348,018 shares were tendered for a consideration of €2.36 per share and a total value of €22.061 million. Following the mandatory tender offer, the Group increased its stake in Nova RE to 92.44% of the relevant share capital. At the end of May 2021, CPIPG held an 87.09% stake in Nova RE.
  • In February 2021, CPIPG completed a share buyback offer and purchased a total of 641,658,176 shares for an aggregate amount of €395,261,436 (or €0.616 per share). About 94% of shares were tendered by CPIPG’s primary shareholder, Radovan Vitek (350,500,000 shares) and CPIPG’s subsidiary CPI FIM SA (252,302,248 shares), together with management and third parties. Mr. Vitek used the proceeds to repay loans to CPIPG. The tendered shares were cancelled by the extraordinary general meeting of the shareholders held on 31 March 2021;
  • In March 2021, CPIPG increased the ambition of its environmental targets and now aims to reduce GHG emissions intensity by 30% by 2030 versus baseline 2019 levels across all scopes 1-3 (versus the previous 20% target across only scopes 1 and 2). In support of this objective, the Group has committed to transitioning all electricity purchases to 100% renewable sources by 2024. CPIPG believes these targets align with the Paris Agreement goals to limit the global temperature increase to well below 2 degrees centigrade versus pre-industrial levels.

“CPIPG is committed to our dual objectives of portfolio growth and capital structure strength,” said David Greenbaum, CFO. “We are certain that the quality of CPIPG’s properties and people will fuel our continued success.”