Industrial developer CTP recorded a 20.1% gain of net rental income to €543.2 million in 2023 compared to the previous year over a combination of indexation and reversion on renegotiations and expiring leases.
Last year, CTP delivered 1.2 million sqm and its portfolio of industrial spaces climbed to 11.8 million sqm. Its gross asset value soared 18.7% to €13.6 billion.
“We saw strong leasing throughout the year with in total 2 million sqm of leases signed in 2023. As the supply–demand balance remains healthy we are able to drive strong rental growth, with the rental levels of new leases in 2023 up 18% compared to last year. We expect to see further market rent growth in the coming years,” said Remon Vos, CTP’s CEO.
“Demand of industrial and logistics real estate in the CEE region is driven by structural demand drivers, such as professionalisation of supply chains, e-commerce, and occupiers seeking to enhance the resilience of their supply chains through nearshoring and friendshoring, as the CEE region offers the best cost location in Europe. We have now nearly 10% of our portfolio leased to Asian tenants which are producing in Europe for Europe,” he added.
In 2023, CTP signed leases for 1.97 million sqm, with contracted annual rental income of €135 million, and an average monthly rent per sqm of €5.69. Around two-thirds of the lease deals were closed with existing tenants.
Among the biggest lease deals were those closed with Raben for 115,000 sqm in Poland, and with Mercator for 67,000 sqm in Serbia.
The company’s average market share in the Czech Republic, Romania, Hungary, and Slovakia stands at 27.4% as at 31 December 2023 and it remains the largest owner and developer of industrial and logistics real estate assets in those markets. The group is also the market leader in Serbia and Bulgaria.
Furthermore, some of the main deliveries closed in 2023 were in CTPark Belgrade City (84,000 sqm) , CTPark Bucharest West (65,000 sqm) and in CTPark Vienna East (51,000 sqm).
At the same time, the group’s development pipeline totals 2 million sqm with a potential rental income of €142 million.
This year, CTP aims to deliver between 1 – 1.5 million sqm, depending on tenant demand.
On the funding side, the group raised €1.6 billion during 2023. In early 2024, the group’s liquidity position pro-forma for the bond issuance and facilities totaled €1.9 billion.
CTP has proposed a final 2023 dividend payment of €0.275 per ordinary share, which will take the total payment for last year to €0.525.
