CTP announced its results for the first half-year of 2021. CTP reports strong half-year results and is well on track to further accelerate its development, raising its GLA growth target to beyond 7.7 million sqm by year-end 2021, up from 7.5 million sqm as guidance at its IPO end of March 2021.
Highlights (H1 2021)
- On top of enjoying strong tailwinds for the logistics real estate sector, CTP further increased its leading market share by capturing nearly a third of all new leases to hold 25% market share (in terms of GLA) by the end of the first half of 2021 in the Czech Republic, Romania, Hungary and Slovakia.
- Solid increase in income-producing portfolio to 6.6 million sqm. Net rental income in the first half-year increased by 17% to €160.3 million from €136.5 million in the first half of 2020.
- Net valuation result from development activities increased to €146.0 million. No revaluation took place on CTP’s income-producing portfolio during H1. Company-specific adjusted EPRA Earnings increased to €0.25 per share.
- Interim dividend 2021 of €0.17 per share; a pay-out ratio of 75%.
- Independent ESG rating by Sustainalytics Inc., ranking CTP in the top 1.5% of companies worldwide; carbon neutrality of operations being verified by an external agency.
Highlights (Q2 2021)
- The total land bank increased to 14.7 million sqm at the end of Q2 from 13.0 million sqm at the end of Q1 2021, thereby extending the potential for a profitable development pipeline.
- Yield-on-cost increased to 11.8% compared to 11.5% in the first quarter of 2021, on a development pipeline of 1.2 million sqm, despite increased construction costs and shortages in building materials.
- Value of Owned Assets stands at €6.4 billion at the end of the second quarter of 2021, an increase of 5.3% compared to €6.1 billion as of 31 March 2021.
- Finalised €1 billion Green Bond issue (two tranches) to refinance banking facility. The cost of debt decreased to 1.22% as of 30 June 2021 from 1.6% as of 31 March 2021.
Outlook for FY 2021
- IPO proceeds to be further used to accelerate land bank acquisition, fund profitable pipeline development, and acquire income-producing properties at attractive conditions.
- GLA target revised upwards to over 7.7 million sqm for year-end 2021 (including 390,000 sqm assets under management for Deka).
- Outlook company-specific adjusted EPRA EPS for full-year 2021 is expected to be around €0.50 (2020: €0.44).
Remon Vos, CEO says “Our performance over the first half of 2021 shows the quality of our business parks, attracting high-quality tenants that drive our profitable growth. Demand in our markets continues to grow, and our CTParks are well-positioned to benefit from the trends of e-commerce, supply chain optimization, last-mile delivery and demand for parks designed to minimize environmental impact. Vacancy is at historic lows, and our strong customer relations have led to high retention rates with our annualised rent roll increasing 4% quarter-on-quarter to €380 million. Our execution power is strong: we successfully started as a listed company, significantly accelerated the expansion of our landbank, launched operations in the Netherlands and built up capacity in Austria, Bulgaria and Poland. We strive to expand our market-leading position in the CEE countries, while we bring our park makers vision to new markets where we see great potential for further growth.”
Remon Vos
CEO
CTP
Born in the Netherlands in 1970, Remon Vos founded CTP in 1998 with the goal to develop A-class industrial properties in the Czech Republic. Remon developed and grew the CTPark Network to become the largest integrated system of full-service business parks in CEE. At over 5 million sqm of lettable area, and sufficient land to grow to 8 million m2, the CTPark Network offers 5 unique property types that can accommodate wide variety businesses from 450 sqm incubators to 50,000 sqm built-to-suit manufacturing facilities or 100,000 sqm distribution centres. CTP is a long-term investor and partner to its clients, with an innovative and entrepreneurial approach. This focus has resulted in 70% of all new business coming from existing clients. CTP has also developed unique, high-quality office and housing projects, such as the award-winning Spielberk, and the unique student housing concept Domeq in Brno. Remon continues to lead the company at full-speed, with big plans for the future.
More »Richard Wilkinson, CFO adds: “We continue to see strong growth in profitability driven by rental growth, while the profitability of new developments continues to exceed the planned target of >10% Y-o-C. We made an excellent profit of €188.3 million while not having any revaluation of our investment portfolio, which underlines the strength of our business model. Our financial position is very strong, having realised the IPO, finalised the move to the unsecured funding platform and increased our liquidity position. IPO proceeds are sensibly used to accelerate our expansion, with the acquisition of income-producing assets in Romania and Hungary to solidify our market-leading positions in these markets. We have grown of our land bank to 14.7 million sqm and are on track to exceed the previous target of 7.5 million sqm GLA target per year-end, driving rental income growth in the years to come.”
Richard Wilkinson
Group CFO
CTP
