Industrial developer CTP recorded a rental income of €488.4 million in the first nine months of the year, up 15.9% y/y, while the annualized rental income amounted to €702 million, with occupancy rate at 93%.
The developer delivered 545,000 sqm of spaces at a Yield on Cost (YoC) of 10.1% and 95% let at completion, bringing the Group’s standing portfolio to 12.6 million sqm. Its gross asset value increased by 11.8% to €15.2 billion.
Some of the biggest deliveries were 169,000 sqm in CTPark Warsaw West, 48,000 sqm in CTPark Zabrze and 37,000 sqm in CTPark Budapest Ecser.
As of September 2024, projects under construction totaled 1.9 million sqm, with a potential rental income of €142 million when fully leased. This year, CTP expects to complete between 1.2 and 1.3 million sqm. At the same time, the group’s landbank increased to 27.1 million sqm.
CTP expects to reach €1.0 billion rental income in 2027, driven by development completions, indexation and reversion, and is on track to reach 20 million sqm of leasable space and €1.2 billion rental income before the end of the decade.
“We leased 1.5 million sqm in the first 9 months of 2024, 4% more than in the same period last year. This illustrated the continued strong demand in CEE and the robust nature of the businesssmart region in Europe. As the supply–demand balance remains healthy, we realized robust rental growth in the first half of the year. Looking ahead, we also signed more HoTs than last year and have with that strong lead-list for leasing into the fourth quarter of 2024 and into 2025. Those leasing levels allow us to continue to develop over 10% of new GLA per year and continue to win market-share," said Remon Vos, CEO of CTP.
He added that demand for industrial and logistics real estate in the CEE region is driven by structural demand drivers, such as the professionalization of supply chains by 3PLs, e-commerce, and occupiers nearshoring and friend-shoring.
During the first 9 months of 2024, CTP signed leases for 1.5 million sqm, an increase of 4% compared to the same period of last year. The contracted annual rental income reached €100.9 million.
On the funding side, the group’s liquidity position stood at €1.8 billion, comprised of €1.3 billion of cash and cash equivalents, while its average cost of debt stood at 2.73%. Moreover, CTP confirmed its €0.80 - €0.82 company specific adjusted EPRA EPS guidance for 2024.
CTP said it would continue its investments in photovoltaic systems on the roofs of its warehouses. The company generated around €6 million in revenue from renewable energy by Q3, up 10% year-on-year.
