Industrial developer CTP has recorded a net income of €130.7 million in the first quarter of 2023, up 21.9% year-on-year, while the like-for-like rental growth stood at 7.8%, mainly driven by indexation and reversion on renegotiations and expiring leases. The company’s profit for Q1 2023 was €225.4 million which is 274% above the figure for Q1 2022 (€60.2 million).
At the same time, the contracted revenues for the next 12 months stood at €628 million by the end of March 2023. In the first three months, the company’s specific adjusted EPRA earnings increased by 32.1% to €78.3 million.
In Q1, the company delivered 223,000 sqm in new projects, 88% let at delivery, adding €13 million of contracted rent with another €2 million of potential income when full occupancy is reached.
“Leasing dynamics remain strong, and we continue to see robust occupier demand combined with market vacancies close to historic lows, while supply is decreasing. The business-smart CEE region has seen strong growth in recent years and is expected to continue to outperform in the years ahead. The industrial & logistics sector in CEE benefits from 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 friend-shoring, with production in Europe for Europe,” said CTP’s CEO Remon Vos.
CTP has signed leases in Q1 for 297,000 sqm, with a contracted rental income of €18.9 million, and an average rent per sqm of €5.31. Two-thirds of those leases were with existing tenants.
On new deliveries, the biggest projects were 47,000 sqm in CTPark Warsaw South in Poland (leased to amongst others Fiege), 54,000 sqm in CTPark Vienna East in Austria (leased to amongst others DHL, Frigologo, Quick Service Logistics, Toyota, Schachinger), and 41,000 sqm in CTPark Sofia West in Bulgaria (leased to Lidl).
At the end of Q1, CTP had 1.8 million sqm of buildings under construction with a potential rental income of €129 million.
CTP’s landbank amounted to 20.7 million sqm at the end of 2022, which allows the company to reach its target of 20 million sqm of leasable space by the end of the decade.
