Investor Presentation (April 2024)
FY 2023
CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023
Financial highlights for 2023
- One of Europe's largest landlords
- Substantial recurring income and cashflows
- High occupancy and strong rental growth
- Leverage above target at year end, offset by significant sales in Q1
- Firmly committed to reaching our financial policy targets
- €1.4 billion of available liquidity
TOTAL ASSETS | PROPERTY PORTFOLIO |
€21.9 | €19.5 |
billion | billion |
CONSOLIDATED | FUNDS FROM |
ADJUSTED EBITDA | OPERATIONS (FFO) |
€778 | €390 |
million | million |
UNENCUMBERED ASSETS | WAULT |
3.5 | |
48% |
NET LTV
52.3/49.8%
pro-forma for
signed disposals
OCCUPANCY
92.1%
NET ICR
2.5/3.3×
CONTRACTED GROSS RENT
€929
million
LIKE-FOR-LIKE
RENTAL GROWTH
7.9% 2
EPRA NRV (NAV)
€7.0
years
excluding bridge
financing
billion
Group overview
Property portfolio by segment (as at 31 December 2023)
Ofce | €3,274m | ||
Retail | 17% | €8,808m | |
Residential | 45% | ||
€1,121m | Property | ||
6% | |||
Hotels & Resorts | portfolio | ||
€19.5 billion | |||
7% | |||
Complementary Assets | |||
€1,464m | |||
25% | |||
€4,864m |
Property portfolio by geography (as at 31 December 2023)
Czech Republic | €878 m | €5,375m | ||||
Germany | ||||||
€1,455m | 4% | 28% | ||||
Austria | ||||||
7% | ||||||
Poland | €1,325m | Property | ||||
7% | ||||||
Romania | portfolio | |||||
Italy | 8% | €19.5 billion | 18% | |||
€1,571m | ||||||
€3,563m | ||||||
Hungary | 8% | 6% | ||||
Other CEE | €1,614m | 13% | ||||
€1,249m | ||||||
Other | €2,502m | |||||
CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023
myhive S-Park, Bucharest, Romania
3
Scale, diversification and quality
Property portfolio (€ million)
Ofce | €20.9bn | ||
Retail | €19.5bn | ||
2,965 | |||
Residential | 3,274 | ||
Hotels & Resorts | 995 | ||
Complementary Assets | 2,112 | 1,121 | |
€13.1bn | 4,773 | 1,464 | |
4,864 | |||
2,031 | |||
€10.3bn | |||
823 | |||
1,121 | |||
1,214 | 10,010 | ||
749 | 2,697 | 8,808 | |
889 | |||
2,220 | |||
5,336 | 6,354 | ||
2020 | 2021 | 2022 | 2023 |
Like-for-like rental income continues to grow*
7.6% | 7.9% | ||
3.3% | |||
0.8% | |||
2020 | 2021 | 2022 | 2023 |
CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023
Gross and net rental income (€ million)
Gross rental income | Net rental income | % YoY change |
934 | ||||||||
749 | +25% | 796 | ||||||
+26% | ||||||||
+86% | 632 | |||||||
+74% | ||||||||
402 | 363 | |||||||
+13% | ||||||||
356 | 338 | +7% | ||||||
2020 | 2021 | 2022* | 2023 | 4 |
* Rental income in 2022 reflects ten months of contribution from IMMOFINANZ and six months of contribution from S IMMO.
Consolidated adjusted EBITDA (€ million)
Net Business Income | Consolidated adjusted EBITDA | % YoY change |
874 | ||||||
+29% 778* | ||||||
676 | 608* | +28% | ||||
+75% | ||||||
+65% | ||||||
385 | 368* | |||||
344 | 338* | +12% | +9% | |||
2020 | 2021 | 2022 | 2023 |
* CPIPG standalone | * Includes pro-rata EBITDA of Equity accounted investees. |
CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023
Update on financing activities
More than €2.5 billion raised in 2023, including €1.2 billion of fresh cash
Q4 2023
€50 million secured loan
- Refinancing of existing loan against Czech office assets
- 5-yearmaturity at 195 bps spread
€404 million secured loan
Q3 2023
€65 million secured loan
- New loan secure against a property in Berlin; drawdown in two stages
- 6-yearmaturity at 144 bps spread
Q2 2023
€489 million secured loans
- Four new secured loans across the Group's portfolio in June
- 3.5- up to 7-year maturity at 210-280 bps spread
Einsteinova, Bratislava, Slovakia
- Refinancing of existing loan that was scheduled to mature in October 2024
- 7-yearmaturity with attractive margin unchanged to previous financing
€122 million secured loans
- Three new secured loans across retail and office properties in the Czech Republic
- 5-yearmaturity at 200-220 bps spread
Total liquidity
€1.4bn
€635 million bridge loan
- Refinancing of existing bridge loan intended to be drawn by the end of October
- 3-yearmaturity signed with a group of relationship banks
€75 million green bond
- Senior unsecured green bond issued by S IMMO in July
- 5-yearmaturity at 5.5% fixed coupon
€100 million RCF
- Prolongation of existing undrawn €100 million senior unsecured revolving credit facility
- Margin linkage to ESG rating
€170 million secured loan
• Refinancing and upsizing (+33 m) of secured loan in Germany in May
• 5-year maturity at 170 bps
spread
Q1 2023 | 5 |
€100 million sustainable | |
bilateral loan |
- Senior unsecured loan signed in March
- 5-yearmaturity at 210 bps spread
€110 million secured loan
- Senior secured loan signed at the end of March
- 10-yearmaturity at 290 bps spread against Hungarian office assets
Disposal pipeline: €2 billion target achieved, further €2 billion in execution
Granularity and diversification of pipeline is a significant advantage
- At the end of August 2022, CPIPG announced a disposal pipeline exceeding €2 billion over 12 to 24 months. With more than €2 billion of disposals signed, the pipeline is nearly complete.
- The Group's disposal strategy focuses on low-yielding mature assets, single tenant properties and non-strategic assets outside of the Group's core markets.
- Disposals have been, on average, at book value and the buyers are predominantly local investors, including family offices, local real estate companies, funds and asset managers.
- The Group continues to have a sizable disposal pipeline and aims to dispose an additional €2 billion over the next 12 to 24 months.
Germany Crans Montana Ski Resort, Switzerland
CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023
Overview of recently disposed properties
Adlerhof, Residential, Vienna, Austria
Disposals by geography*
Germany
34%
Austria
Czech Republic | 10% | |
Croatia | 4% | 18% |
Italy
16%
Other
38%
Disposals by segment*
Ofce
Residential | 4% | |
Landbank | 33% | 21% |
Hotel | ||
Other | 6% | |
36%
Residential Apartments, Leipzig, Germany Residential Apartments, Berlin,
Sunčani Hvar Hotels, Hvar, Croatia
Concept Tower, Warsaw, Poland
6
*split based on main usage
CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023
Modest valuation declines due to good-yielding diversified portfolio
In 2023, the valuation result was a loss of €1.1 billion, equivalent to a 5.1% decline
- Varying results across segments and geographies, with lower-yielding segments such as German offices being the most impacted.
- Since the start of 2023, the average portfolio's EPRA topped-up net initial yield has increased by 0.7% to 5.4%.
EPRA topped-up net initial yield
5.4% | |
4.2% | |
CPIPG | Peers average |
Note: Peer Group consisting of Merlin Properties, Aroundtown, CA Immo, Alstria, Colonial, Gecina
Like-for-like valuation movement by segment
Valuation movement of investment properties by geography
Other^ | 7 |
-€740m | -€160m | -€144m | +€129m | -€229m |
Note: Others includes Landbank, Industrial, Development, Agriculture, Hotels rented * Owner-operated hotels only
^ Includes Austria, Romania, other CEE and other Western Europe
-9.4%
Office
-0.6%
Retail
-0.7%
Residential
+7.0%
Hotels*
-5.4%
Others
Focused on leverage, coverage and liquidity
Pro-forma impact from disposals on net LTV | Bridge loan effect on the Group's net ICR | |||
LTV | Disposals | |||
CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023
Liquidity coverage for the next 24 months (€ bn)
Total liquidity YE 2023 | Net proceeds from signed disposals |
-2.5% impact on leverage from signed disposals
52.3%
49.8%
FY 2023 | Pro-forma |
The Group signed nearly €900 million of disposals in 2023 and Q1 2024 that were not reflected in the Group's year-end results due to the timing gap between signing and closing. While the disposal agreements are binding, closings are subject to antitrust approval, tax confirmations and other subsequent conditions.
Key signed disposals not included in the year-end figures are:
- Sunčani Hvar Hotels
- The sale of a 50% stake in a subsidiary owning a portfolio of eight hotel properties in the Czech Republic
- The sale of the mountain resort in Crans Montana
0.8×
3.3×
2.5×
0.8×
FY 2023 | Impact of bridge loan | Net ICR excluding bridge |
The Group's interest coverage declined over the last 24 months largely because of costs associated with bridge loans related to the acquisitions of IMMOFINANZ and S IMMO.
As of 28 March 2024, CPIPG has repaid over €2.1 billion of bridge loans; the current balance of €530 million is intended to be fully repaid around the end of H1 2024, despite a stated final maturity of October 2026.
Debt maturities 2024 & 2025 | |
2× | |
0.7 | Liquidity |
coverage | |
1.4 | 8 |
1.1 | |
Total liquidity | Debt maturities 2024 & 2025 |
Net proceeds from disposals (after repayment of debt attached to certain properties and fees) will further enhance the Group's liquidity position, which is expected to improve by about
€700 million once all signed disposals are closed and proceeds are received.
Business update
9
Balance Hall, Budapest, Hungary
CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023
High occupancy reflects tenant and asset quality
- Strong like-for-like rental growth of 7.9% supported by a high occupancy rate of 92.1% across the portfolio. Retail remains virtually fully occupied at 97.5%, offices are at 88.7%, and the residential segment at 92.0%.
- The Group's lease maturity profile is well balanced, with a stable WAULT of 3.5 years; on average, 16% of our leases expire annually through 2028.
- Top 10 tenants are high-quality international and regional companies, and only represent 9% of rental income. No individual tenant is over 1%.
Occupancy rate (%)*
Ofce | Retail | Residential* | X% Group | ||||||
93.7% | 93.8% | 92.8% | 92.1% | ||||||
96.7% | 97.0% | 97.9% | 97.5% | ||||||
92.4% 92.9% | 91.9% | 95.5% | 92.0% | ||||||
89.9% | 92.8% | 88.7% |
2020 | 2021 | 2022 | 2023 |
Top 10 tenants by rental income
€ million | Rent as | WAULT** | |
% of GRI* | (years) | ||
9.5 | 1.0% | 2.7 | |
9.2 | 1.0% | 5.6 | |
8.8 | 0.9% | 2.5 | |
8.7 | 0.9% | 3.4 | |
8.7 | 0.9% | 2.8 | |
8.6 | 0.9% | 9.2 | |
8.3 | 0.9% | 2.6 | |
8.3 | 0.9% | 5.3 | |
7.6 | 0.8% | 6.0 | |
7.2 | 0.8% | 3.1 | |
Total | 84.9 | 9.1% | 4.3 |
89%
Office
occupancy
97%
Retail
occupancy
10
3.5 years
average
WAULT
5.4%
EPRA topped-up
net initial yield
* Occupancy based on rented units. | * Based on annualised headline rent. ** WAULT reflecting the first break option. |
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Disclaimer
CPI Property Group SA published this content on 08 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 April 2024 06:51:05 UTC.