CTP, the developer and administrator of industrial projects, recorded a like-for-like rental growth from its investment portfolio of 4.3% in the first six months of 2022 compared to the same period of last year.
The company’s net rental income was up by 31% to €211.5 million supported by new rent arising from development completions, acquisitions of income producing assets and active management of the group’s investment portfolio.
The profit after tax soared 160% to €490.2 million versus the first semester of 2021 due to strong growth in rental income, an increase in valuation driven by rising ERVs and lower financing costs.
“We are seeing strengthening demand for CTP’s new and existing assets as companies increasingly seek a cost-effective means of enhancing the resilience of their supply chains and manufacturing capabilities. Together with the ongoing constrained supply of suitable assets, these sector fundamentals are translating into material rental growth. CTP’s market-leading position, deep sector knowledge and proven ability to effectively respond to an increasingly complex and fast changing environment, allows us to continue to deliver attractive and resilient returns,” CTP’s CEO Remon Vos.
The investment property gained 25% to €10.4 billion underpinned by positive half-year revaluation of standing portfolio and an increase in the group’s owned GLA to 9.5 million sqm. The company’s projects under construction spanned 1.4 million sqm, of which 47% was pre-let.
During the first half of 2022, CTP acquired 3.9 million sqm land suitable for the development of industrial and logisticsassets for a total investment of approximately €175 million.
CTP’s outlook show that the structural drivers of occupational demand prevail, and in some instances continue to accelerate as occupiers strive to de-risk their manufacturing capacity and supply chains from supply side shocks, while maintaining optimum efficiency.
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