by Property Forum | Report

CPI Property Group published its unaudited profit and credit estimates for the financial year ended 31 December 2019.


“CPIPG is proud of the portfolio growth achieved during 2019, which reflects our successful office acquisitions in Warsaw and improved valuations due to strong operating performance,” said Martin Nemecek, CEO of CPIPG. “We increased our investments in green-certified properties and have fully integrated ESG into the Group’s decision-making process.”

The Company estimates the following preliminary financial and operating results for the financial year ended 31 December 2019:

  • Property portfolio of €9.1 billion (an increase of €1.6 billion from year-end 2018), driven by more than €700 million of acquisitions and positive revaluations due to strong portfolio performance and robust property markets.
  • 73% of CPIPG’s property portfolio was located in the Czech Republic (46%) and Berlin (27%). The share of Poland in the Group’s portfolio increased to 10% following more than €580 million of Warsaw office acquisitions in Q4 2019.
  • Total assets increased to €10.7 billion (up 30% versus year-end 2018), due to the increased property portfolio and higher balances of cash and cash equivalents.
  • Gross rental income of €319 million (up 6% versus 2018), reflecting 3.4% like-for-like growth in rental income and the impact of acquisitions completed during 2018 and 2019.
  • Occupancy was steady at 94.3%, relative to 94.5% at the end of 2018.
  • Total revenues of €675 million (an increase of 12% versus 2018).
  • Net business income of €345 million (up 8% versus 2018).
  • Funds from operations (FFO) of €219 million (an increase of 34% versus 2018).
  • EPRA NAV increased to €5.1 billion (up 14% versus year-end 2018).
  • Net Interest Coverage Ratio (Net ICR) improved to 7.2x for 2019 (an increase of 3.0x versus 2018), due to higher EBITDA generation and reduced interest expense following significant debt refinancing activities in 2018 and 2019.
  • Average cost of funding remained stable at 1.6% p.a. at the end of 2019.
  • Net Loan to Value (Net LTV) decreased to 36.1% (from 36.7% at year-end 2018).
  • Unencumbered assets as a percentage of total assets reached a record of 70% (versus 65% at year-end 2018).
  • Secured debt fell to 25% of total debt, relative to 37% at the end of 2018.
  • Total available liquidity (comprising cash and undrawn revolving credit facilities) at the end of 2019 stood at approximately €1.3 billion.

“CPIPG took many steps to improve our capital structure flexibility in 2019,” said David Greenbaum, CFO of CPIPG. “The Group’s financial policy and commitment to credit ratings will continue to guide our strategy in 2020.”