Rezultate CTP NV Q3-2024

AMSTERDAM, 6 November 2024 – CTP N.V. (CTPNV.AS), (“CTP”, the “Group” or the “Company”) recorded Rental Income of €488.4 million in the first 9 months of the year, up 15.9% y-o-y. Like-for-like y-o-y rental growth of 4.4%, mainly driven by indexation and reversion on renegotiations and expiring leases. As at 30 September 2024, the annualised rental income came to 702.0 million and occupancy came to 93%.

In the first 9 months, CTP delivered 545,000 sqm 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 of GLA, while the Gross Asset Value (“GAV”) increased by 11.8% to €15.2 billion. EPRA NTA per share increased by 10.1% in the first half of the year to €17.52.

Company specific adjusted EPRA earnings increased by 13.2% y-o-y to €269.8 million. CTP’s Company specific adjusted EPRA EPS amounted to €0.60, an increase of 11.7%. The Group confirms its €0.80 – €0.82 Company specific adjusted EPRA EPS guidance for 2024.

As at 30 September 2024, projects under construction totaled 1.9 million sqm, with a potential rental income of €142 million when fully leased and an expected YoC of 10.4%. A substantial part of which will be delivered in 2024, as CTP expects to deliver between 1.2 – 1.3 million sqm this year.

The Group’s landbank increased to 27.1 million sqm, of which 20.9 million sqm is owned and on-balance sheet, and secured substantial future growth potential for CTP. With its industry-leading YoC, CTP expects to be able to continue to generate double-digit NTA growth in the years to come.

Puncte cheie

Cererea continuă și puternică a chiriașilor conduce la creșterea chiriilor

During the first 9 months of 2024, CTP signed leases for 1,495,000 sqm, an increase of 4% compared to 9M-2023, with contracted annual rental income of €100.9 million, and an average monthly rent per sqm of €5.63 (9M-2023: €5.60). Adjusting for the difference in country mix, the rents increased on average by 3%.

Aproximativ două treimi din aceste contracte de închiriere au fost încheiate cu chiriași existenți, în conformitate cu modelul de afaceri al CTP, care constă în a crește cu chiriașii existenți în parcurile existente.

Generarea fluxului de numerar prin portofoliu permanent și achiziții

CTP’s average market share in the Czech Republic, Romania, Hungary, and Slovakia increased to 28.5% as at 30 September 2024 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.

With over 1,000 clients, CTP has a wide and diversified international tenant base, consisting of blue-chip companies with strong credit ratings. CTP’s tenants represent a broad range of industries, including manufacturing, high-tech/IT, automotive, e-commerce, retail, wholesale, and third-party logistics. The tenant base is highly diversified, with no single tenant accounting for more than 2.5% of its annual rent roll, which leads to a stable income stream. CTP’s top 50 tenants only account for 33.4% of its rent roll and most are in multiple CTParks.

The Company’s occupancy came to 93% (Q3-2023: 93%). The Group’s client retention rate remains strong at 91% (Q3-2023: 92%) and demonstrates CTP’s ability to leverage long-standing client relationships. The portfolio WAULT stood at 6.5 years (Q3-2023: 6.6 years), in line with the Company’s target of >6 years.

Rent collection level stood at 99.8% in 9M-2024 (9M-2023: 99.8%), with no deterioration in the payment profile of tenants.

Rental income amounted to €488.4 million, up 15.9% y-o-y on an absolute basis. On a like-for-like basis, rental income grew 4.4%, mainly driven by indexation and reversion on renegotiations and expiring leases.

The Group has put measures in place to limit service charge leakage, which resulted in the improvement of the Net Rental Income to Rental Income ratio from 95.5% in 9M-2023 to 97.4% in 9M-2024. Consequently, the Net Rental Income increased 18.2% y-o-y.

O proporție din ce în ce mai mare din veniturile din chirii generate de portofoliul de investiții al CTP beneficiază de protecție împotriva inflației. De la sfârșitul anului 2019, toate contractele de închiriere noi ale Grupului includ o clauză de indexare dublă, care calculează creșterile anuale ale chiriei ca fiind cea mai mare dintre:

• o creștere fixă de 1,5%-2,5% pe an; sau
• indicele prețurilor de consum[1].

As at 30 September 2024, 70% of income generated by the Group’s portfolio includes this double indexation clause, and the Group expects this to increase further.

The reversionary potential stayed stable at 15.1%. New leases have been signed continuously above ERV’s, illustrating continued strong market rental growth and supporting valuations.

The annualised rental income came to €702.0 million as at 30 September 2024, an increase of 19.3% y-o-y, showcasing the strong cash flow growth of CTP’s investment portfolio.

9M-2024 developments delivered with a 10.1% YoC and 95% let at delivery

CTP continued its disciplined investment in its highly profitable pipeline. In the first 9 months, the Group completed 545,000 sqm of GLA (9M-2023: 566,000 sqm), slightly below last year when several projects came online that were postponed during the year 2022 due to the higher construction costs. The developments were delivered at a YoC of 10.1%, 95% let and will generate contracted annual rental income of €33.0 million, with another €2.0 million of expected income when these reach full occupancy.

Some of the main deliveries during the first 9 months of 2024 were: 169,000 sqm in CTPark Warsaw West (Poland), 48,000 sqm in CTPark Zabrze (Poland), 37,000 sqm in CTPark Budapest Ecser (Hungary), 37,000 sqm in CTPark Novi Sad East (Serbia), 30,000 sqm in CTPark Weiden (Germany), 26,000 sqm in CTPark Bucharest West (Romania), 27,000 sqm in CTPark Katowice (Poland) and 23,000 sqm in CTPark Arad West (Romania).

While average construction costs in 2022 were around €550 per sqm, in 2023 and 9M-2024 they came to €500 per sqm. CTP expects them to stay around this level through 2024. This allows the Group to continue to deliver its industry-leading YoC above 10%, which is also supported by CTP’s unique park model and in-house construction and procurement expertise.

As at 30 September 2024, the Group had 1.9 million sqm of buildings under construction with a potential rental income of €142 million and an expected YoC of 10.4%. CTP has a long track record of delivering sustainable growth through its tenant-led development in its existing parks. 76% of the Group’s projects under construction are in existing parks, while 15% are in new parks which have the potential to be developed to more than 100,000 sqm of GLA. Planned 2024 deliveries are 64% pre-let. CTP expects to reach 80%-90% pre-letting at delivery, in line with historical performance. As CTP acts in most markets as general contractor, it is fully in control of the process and timing of deliveries, allowing the Company to speed-up or slow-down depending on tenant demand, while also offering tenants flexibility in terms of building requirements.

In 2024 the Group is expecting to deliver between 1.2 – 1.3 million sqm, depending on tenant demand. The 177,000 sqm of leases that are currently signed for future projects, construction of which hasn’t started yet, are a further illustration of continued occupier demand.

CTP’s landbank amounted to 27.1 million sqm as at 30 September 2024 (31 December 2023: 23.4 million sqm), which allows the Company to reach its target of 20 million sqm GLA by the end of the decade. The Group is focusing on mobilising the existing landbank, while maintaining disciplined capital allocation in landbank replenishment. 60% of the landbank is located within CTP’s existing parks, while 30% is in, or is adjacent to, new parks which have the potential to grow to more than 100,000 sqm. 23% of the landbank was secured by options, while the remaining 77% was owned and accordingly reflected in the balance sheet.

Assuming a build-up ratio of 2 sqm of land to 1 sqm of GLA, CTP can build over 13 million sqm of GLA on its secured landbank. CTP’s land is held on balance sheet at around €50 per sqm and construction costs amount on average to approximately €500 per sqm, bringing total investment costs to approximately €600 per sqm. The Group’s standing portfolio, excluding the older former Deutsche Industrie REIT portfolio, is valued around €1,000 per sqm.

Monetizarea afacerii energetice

CTP își continuă planul de extindere pentru lansarea sistemelor fotovoltaice. Cu un cost mediu de ~750.000 EUR per MWp, Grupul vizează un YoC de 15% pentru aceste investiții.

During the first 9 months, the Group installed an additional 19 MWp on the roof, which are currently being connected to the grid. The total installed capacity now stands at 119 MWp.

In 9M-2024 the revenues from renewable energy came to €6.0 million, up 10% y-o-y.

Ambiția de sustenabilitate a CTP merge mână în mână cu un număr tot mai mare de chiriași care solicită sisteme fotovoltaice, deoarece acestea le oferă i) o mai bună securitate energetică, ii) un cost de ocupare mai mic, iii) respectarea reglementărilor în creștere, iv) respectarea cerințelor clienților și v) posibilitatea de a-și îndeplini propriile ambiții ESG.

Rezultatele evaluării sunt determinate de pipeline și de portofoliul în curs de reevaluare pozitivă

Investment Property (“IP”) valuation increased from €12.0 billion as at 31 December 2023 to €13.4 billion as at 30 September 2024, driven mainly by the transfer of completed projects from Investment Property under Development (“IPuD”) to IP, accretive acquisitions and positive revaluations.

IPuD increased by 18.9% to €1.6 billion as at 30 September 2024, driven by progress on developments with most of the projects to be delivered in the fourth quarter of the year, as usual.

GAV increased to €15.2 billion as at 30 September 2024, up 11.8% compared to 31 December 2023.

For the Q1 and Q3 results, only the IPuD projects are revalued. The Q3-2024 revaluation was €167.4 million, which brings the revaluation in the first 9 months to €604.1 million, driven by the positive revaluation of IPuD projects (+€351.2 million), landbank (+€26.1 million), and the standings assets (+€226.9 million).

The Group’s portfolio has conservative valuation yields, with 80bps of reversionary yield widening in the last two years, bringing it to 7.2%. CTP expects yields to have peaked in the Industrial & Logistics sector in the CEE region. With the larger yield movements in Western European markets, the yield differential between CEE and Western European logistics is back to the long-term average. CTP expects the yield differential to decrease further overtime, driven by the higher growth expectations for the CEE region.

CTP expects further positive ERV growth on the back of continued tenant demand, which is positively impacted by the secular growth drivers in the CEE region. CEE rental levels remain affordable; and despite the strong growth seen, they have started from significantly lower absolute levels than in Western European countries. In real terms, rents in many CEE markets are still below 2010 levels.

EPRA NTA per share increased from €15.92 as at 31 December 2023 to €17.52 as at 30 September 2024, representing an increase of 10.1%. The increase is mainly driven by the revaluation (+€1.29), Company specific adjusted EPRA EPS (+€0.60), partly offset by the dividend paid out (-€0.28).

Bilanț robust și poziție solidă de lichiditate

În conformitate cu abordarea sa proactivă și prudentă, Grupul beneficiază de o poziție solidă de lichiditate pentru a-și finanța ambițiile de creștere, cu un cost fix al datoriei și un profil de rambursare conservator.

During first 9 months of the year, the Group raised €1.8 billion:

• A €100 million six-year secured loan facility with a syndicate of Italian and Czech banks at a fixed all-in cost of 4.9%;
• A €750 million six-year green bond at MS +220 bps at a coupon of 4.75%;
• O facilitate de împrumut garantată pe șapte ani de 90 de milioane EUR cu o bancă austriacă la un cost fix all-in de 4,91 TP3T;
• O facilitate de împrumut garantată pe șapte ani în valoare de 168 milioane EUR cu un sindicat al unei bănci slovace și austriece la un cost fix all-in de 5,11 TP3T;
• A €75 million tap of the six-year green bond issued in February 2024 at MS +171 bps;
• A €500 million five-year unsecured loan facility with a syndicate of international banks at a fixed all-in cost of 4.7%; and
• A €150 million seven-year secured loan facility top-up with a syndicate of Italian and Czech banks at a fixed all-in cost of 4.35%.

During the year CTP also completed two bond tender offers, buying back €750 million of short-dated bonds, realizing a capital gain of €31.9 million, reducing 2025 and 2026 debt maturities and proactively extending its maturity profile.

The Group’s liquidity position stood at €1.8 billion, comprised of €1.3 billion of cash and cash equivalents, and an undrawn RCF of €550 million.

CTP’s average cost of debt stood at 2.73% (31 December 2023: 1.95%), with 99.7% of the debt fixed or hedged until maturity. The Group doesn’t capitalise interest on developments, therefore all interest expenses are included in the P&L. The average debt maturity came to 5.0 years (31 December 2023: 5.3 years).

Prima scadență materială viitoare a Grupului este de 272 milioane EUR[2] obligațiune scadentă în iunie 2025, care va fi rambursată din rezervele de numerar disponibile.

CTP’s LTV came to 44.9% as at 30 September 2024, down from 46.2% at 30 June 2024, thanks to the ABB[3]. CTP expects the LTV to trend lower, as the revaluations of the Group’s developments are fully booked.

The Group’s higher yielding assets, thanks to their gross portfolio yield of 6.5%, lead to a healthy level of cash flow leverage that is also reflected in the normalised Net Debt to EBITDA of 9.0x (31 December 2023: 9.2x), which the Group targets to keep below 10x.

The Group had 59% unsecured debt and 41% secured debt as at 30 September 2024, with ample headroom under its Secured Debt Test and Unencumbered Asset Test covenants.

As pricing in the bond market rationalised, the conditions are now more competitive than the pricing in the bank lending market, which will allow the Group to re-balance more towards unsecured lending.

In Q3-2024, both Moody’s and S&P confirmed, respectively, CTP’s Baa3 and BBB- credit rating with a stable outlook.

Dividend and Guidance confirmed

Leasing dynamics remain strong, with robust occupier demand, and decreasing new supply leading to continued rental growth.  CTP is well positioned to benefit from these trends. The Group’s pipeline is highly profitable, and tenant led. The YoC for CTP’s pipeline increased to 10.4%, thanks to decreasing construction costs and rental growth. The next stage of growth is built in and financed, with 1.9 million sqm under construction as at 30 September 2024, with a target to deliver between 1.2 – 1.3 million sqm in 2024.

Structura robustă de capital a CTP, politica financiară disciplinată, accesul puternic la piața de credit, banca funciară lider în industrie, expertiza internă în construcții și relațiile profunde cu chiriașii permit CTP să își atingă obiectivele. CTP se așteaptă să atingă 1,0 miliarde de euro din venituri din chirii în 2027, determinată de finalizarea dezvoltării, indexare și revenire, și este pe cale să atingă 20 de milioane de metri pătrați de GLA și 1,2 miliarde de euro din veniturile din chirii înainte de sfârșitul deceniului.

The Group confirms its €0.80 – €0.82 Company specific adjusted EPRA EPS guidance for 2024, which due to the increase in shares following the ABB in September is expected towards the lower end.

Politica de dividende a CTP este de a plăti 70% - 80% din EPRA EPS ajustat specific companiei. Dividendele implicite sunt scripte, dar acționarii pot opta pentru plata dividendelor în numerar.

  
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Apăsați *1 pentru a pune o întrebare, *2 pentru a vă retrage întrebarea sau *0 pentru asistență din partea operatorului.

O înregistrare va fi disponibilă pe site-ul CTP în termen de 24 de ore de la prezentare: https://www.ctp.eu/investors/financial-reports/

 CALENDARUL FINANCIAR AL CTP

DETALII DE CONTACT PENTRU SOLICITĂRI DE INFORMAȚII DIN PARTEA ANALIȘTILOR ȘI A INVESTITORILOR:

Maarten Otte, șeful departamentului de relații cu investitorii
Mobil: +420 730 197 500
Email: maarten.otte@ctp.eu

DETALII DE CONTACT PENTRU SOLICITĂRI DE INFORMAȚII DIN PARTEA PRESEI:
Patryk Statkiewicz, șeful Grupului de marketing și PR
Mobil: +31 (0) 629 596 119
Email: patryk.statkiewicz@ctp.eu

Despre CTP

CTP is Europe’s largest listed owner, developer, and manager of logistics and industrial real estate by gross lettable area, owning 12.6 million sqm of GLA across 10 countries as at 30 September 2024. CTP certifies all new buildings to BREEAM Very good or better and earned a negligible-risk ESG rating by Sustainalytics, underlining its commitment to being a sustainable business. For more information, visit CTP’s corporate website: www.ctp.eu

Disclaimer

Acest anunț conține anumite declarații cu caracter prospectiv cu privire la situația financiară, rezultatele operațiunilor și activitatea CTP. Aceste declarații anticipative pot fi identificate prin utilizarea terminologiei anticipative, inclusiv a termenilor "crede", "estimează", "planifică", "proiectează", "anticipează", "se așteaptă", "intenționează", "țintește", "poate", "urmărește", "probabil", "ar putea", "ar putea", "ar putea avea", "va avea" sau "ar trebui" sau, în fiecare caz, forma negativă a acestora sau alte variante sau terminologie comparabilă. Declarațiile prospective pot să difere și deseori diferă în mod semnificativ de rezultatele reale. Prin urmare, nu trebuie să se acorde o influență nejustificată niciunei declarații prospective. Acest comunicat de presă conține informații privilegiate, astfel cum sunt definite la articolul 7 alineatul (1) din Regulamentul (UE) 596/2014 din 16 aprilie 2014 (Regulamentul privind abuzul de piață).

^[1] Cu o combinație de IPC local și UE-27/zona euro, doar un număr limitat de plafoane.

^[2] Suma restantă după soluționarea ofertei de licitație la 28 iunie 2024.

^[3] At 30 September 2024, only the €227 million of free-float shares where settled, the €73 million shares subscribed by the CEO and founder were settled in the first week of October following the dividend payment