Accelerated yield compression is expected for year-end 2021 after Q3 2021 valuations, CTP announced in a portfolio update.
- CTP’s external valuer Cushman & Wakefield has updated CTP’s income-producing assets under development valuations for the third quarter of 2021.
- These valuations indicate material yield compression when compared to the gross valuation yield of 6.8% at year-end 2020.
- CTP now expects that yield compression by year-end 2021 on its entire portfolio is likely to be in excess of 50bps.
- The year-end 2021 valuations of CTP’s income-producing portfolio will be positively impacted.
- Ongoing construction and acquisition activities are likely to result in CTP managing in excess of 7.7 million sqm by year-end 2021.
Richard Wilkinson, Deputy CEO and Group CFO of CTP said: “The increasing transaction volumes and accompanying accelerating yield compression in logistics/light industrial properties across CEE markets was clearly evident in our portfolio in the third quarter. This broader market trend will have a substantial positive effect on our valuations. While we will only formalise our valuation process for our full-year 2021 financial statements, current material pricing evidence is such that we are providing guidance on the direction of reporting to the equity markets.”
