Cpi Property Group S.a. · XETR:O5G
Cpi Property — Q3 2023 Earnings Presentation
46 slides from Cpi Property's earnings presentation, 2023
Slide 1: Investor Presentation Q3 2023
Investor Presentation Q3 2023
Slide 2: Financial highlights for Q3 2023
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Financial TOTAL ASSETS PROPERTY PORTFOLIO NET LTV CONTRACTED GROSS RENT 50.6% highlights for Q3 2023 €23.2 €20.3 PRO-FORMA €918 billion billion 49.1% million for signed disposals at the • One of Europe’s largest end of November 2023 landlords • Gene
Slide 3: The Group operates in five key segments
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 The Group Office – 48% of portfolio operates in five • Leading landlord in Berlin, Prague, Warsaw, Vienna, Budapest, and Bucharest key segments • CEE office market advantages: low vacancy, limited construction, short commute times Retail – 24% of po
Slide 4: Group overview
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Group overview myhive Pankrac House, Prague, Czech Republic Property portfolio by segment (as at 30 September 2023) Office €3,125 m (€3 m) €209 m Retail 15% €38 m 47% €9,746 m 8% Residential €1,071 m 48% €21 m 5% Property 5% Net business Hotels & Re
Slide 5: Scale, diversification and quality
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Scale, diversification and quality Property portfolio (€ million) Gross and net rental income (€ million) Office Gross rental income Net rental income % YoY change €20.9 bn €20.3 bn 749 Retail 2,965 3,125 +86% 693 Residential 632 +33% 609 995 +74% H
Slide 6: Update on financing activities
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Update on financing activities Q4 2023 Q3 2023 Q2 2023 €50 million secured loan €65 million secured loan €489 million secured loans Strong bank relationships and access to • Refinancing of existing loan • New loan secure against a • Four new secured
Slide 7: Disposal pipeline of €2 billion+ in execution
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Disposal pipeline of €2 billion+ in execution Overview of recently disposed properties Granularity and diversification of pipeline is a significant advantage Crans Montana Ski Resort, Switzerland • At the end of August 2022, CPIPG announced the Grou
Slide 8: Business update
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Business update 8 Balance Hall, Budapest, Hungary
Slide 9: 90%+ occupancy and strong tenants
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 90%+ occupancy and strong tenants • Strong like-for-like rental growth of 8.2% in combination with acquisitions increased net rental income by 38% to €609 million at the Top 10 tenants by rental income 89% Rent as WAULT** end of Q3 2023. € million %
Slide 10: Well-diversified with a balanced lease profile
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Well-diversified with a balanced lease profile Office tenants by type (according to headline rent) Top 10 income-generating assets Professional Services Value % Total EPRA Asset GLA m² (€ m) occupancy Location IT 13% 17% myhive Warsaw Spire 391 1.9%
Slide 11: Sound real estate market fundamentals
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Sound real estate market fundamentals myhive Medienhafen ALTO, Berlin, Germany 11
Slide 12: New supply is limited and only economically viable with higher rents
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 New supply is limited and only economically viable with higher rents Increasing costs and economic volatility over the last years slowed down new construction activity HCOB Eurozone Construction PMI Annual office completions CEE Capital Cities Warsa
Slide 13: Healthy occupier demand as hybrid work models and return-to-office prevail
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Healthy occupier demand in our region as hybrid work models and return-to office prevail Top reason for working in the office among respondents with flexible work Top reason for working at home among respondents with flexible work European office ma
Slide 14: Investment market activity focused on small and mid-size transactions
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Investment market activity focused on small and mid-size transactions • Focus mostly on small to medium size transactions reflect shift in buyer profile towards local European investment market volume (€ billion) investors, family offices and funds.
Slide 15: Portfolio overview
Portfolio overview Oranienstraße 6, Berlin, Germany 15
Slide 16: CPIPG is the leading office landlord in CEE
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 CPIPG is the leading office landlord in CEE Strong performance due to active asset management approach and sound supply / demand balance #1 LIKE-FOR-LIKE RENTAL GROWTH OFFICES Q1–Q3 2023 LEASING ACTIVITY +11% office landlord in Berlin, Warsaw, Pragu
Slide 17: Office segment
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Office segment Office property portfolio split myhive IO-1, Warsaw, Poland Globalworth €578 m CPIPG is the leading office Other 6% €632 m Berlin 7% landlord in CEE. The portfolio Bucharest 31% €3,018 m €571 m 6% is centred around our leading Other P
Slide 18: GSG Berlin office
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 GSG Berlin office Berlin office net rental income GSG tenants by type (according to headline rent) Professional Services (€ million) IT 2% • A leading commercial real estate platform in Berlin 6% 33% 4% 70 Manufacturing 66 • Portfolio uniquely suite
Slide 19: Significant upside potential in GSG's rents
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Significant upside potential in GSG’s rents €28.6/m² €14.4/m² • GSG’s average rents remain well below the Berlin market average €10.9/m² • In Q3 2023 GSG’s average monthly rent increased by 5.3% compared to YE 2022 Savills 2022 Q3 2023 market GSG av
Slide 20: Warsaw office
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Warsaw office • Highly dynamic office market with the highest space net myhive Warsaw Spire, Warsaw, Poland absorption in Europe relative to the market size • Growing city with high net migration €1.8 bn #1 91.4% Modern • Preferred service hub among
Slide 21: Prague office
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Prague office • €1 billion Prague office portfolio • Beautiful historic city with very little new supply in central locations #1 92.9% • Core service hub for leading multinational corporations office Occupancy landlord in • Rising rents and high occ
Slide 22: Retail segment
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Retail segment Net rental income (€ million) Retail property portfolio by country 257 96.7% 97.0% 97.0% 97.9% 97.9% 97. 97.0% Total 96.7%€1,559 m Czech Republic, 98.1% CPIPG is the leading retail park landlord Czech Republic Italy, €617 96.7% m 96.8
Slide 23: Largest retail park owner in the CEE region
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Largest retail park owner in the CEE region Retail parks AT – Austria HR – Croatia CZ – Czech Republic HU – Hungary IT – Italy PL – Poland RO – Romania PL RS – Serbia • Our STOP SHOPS and CityMarkets are the CityMarket Svitavy SI – Slovenia leading
Slide 24: Retail assets continue to perform well
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Retail assets continue to perform well CPIPG is the leading retail park landlord in CEE and the retail market leader in the Czech Republic Lfl tenant sales in Czech shopping centres are up by +7.1% YoY (CZK million) 2022 2023 +7.1% 1,070 1,101 960 9
Slide 25: CPIPG's regions have limited retail density
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 CPIPG’s regions have limited retail density CZ shopping centre density below WE, high street very limited Shopping centre GLA (m2 / 1,000 inhabitants) CPIPG geographies US*** & Western Europe** 97.6% CZ shopping centres Well- positioned CPIPG % of r
Slide 26: Residential segment
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Residential segment Czech portfolio increases in gross rental income (€ million) Liberec 29.3 Ústí nad Labem 26.0 24.7 22.4 21.5 Prague Ostrava 26 = cca 500 units 2020 2021 2022 Q1-3 2022 Q1-3 2023 Residential property portfolio by country Czech Rep
Slide 27: Hotels & Resorts segment
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Hotels & Resorts segment CPIPG owns and operates hotels primarily located in the CEE region. #1 Regional Diversified We benefit from local knowledge, scale, and the ability to control costs. congress & hotel clusters portfolio convention hotels for
Slide 28: Hotel performance
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Hotel performance Strong recovery in travel demand in 2023 • Net hotel income for Q1–Q3 2023 totalled €58.4 million, versus 34 million in the previous year. • The portfolio achieved an Average Daily Rate (ADR) of €77.0 in Q3 2023 year-to-date, an in
Slide 29: Complementary assets
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Complementary assets Complementary assets property portfolio Consists primarily of landbank in the Czech Republic, Berlin Landbank, €2,191 m and Italy, as well as selective development projects and smaller portfolios. 2% Development, €530 m 2% 3% •
Slide 30: Financing structure & debt profile
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Financing structure & debt profile VIVO! Stalowa Wol Shopping Centre, Poland 30
Slide 31: Financing structure and composition
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Financing structure and composition Split of secured versus unsecured debt Composition of unencumbered asset portfolio Secured Unsecured Income generating – CZ €1,689 m €2,135 m CPIPG IMMOFINANZ S IMMO IMMOFINANZ Income U generating – PL S IMMO U In
Slide 32: Long dated debt maturity profile
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Long dated debt maturity profile (as at 30 September 2023) Strong liquidity (€ million) 4.6 years Cash as at 30 Sep 2023 1,177 Q3 2023 weighted 3.16% Bridge loan outstanding (+) RCF – undrawn amount 575 Beginning of 2023: €1.6 billion average debt a
Slide 33: CPIPG's approach to ESG and sustainability
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 CPIPG’s approach to ESG and sustainability VIVO! Lublin Shopping Centre, Poland 33
Slide 34: Significant strides made in ESG
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Significant strides made in ESG Green Certified Buildings 37.5% -15.2% -11.2% +91.4% of portfolio by value (YoY) GHG Intensity* Water Intensity* LfL Electricity from renewable sources (YoY) +4.5 p.p. * Refers to 2022 Group’s performance versus 2022
Slide 35: Our focus is on tangible outcomes
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Our focus is on tangible outcomes Estimated environmental impact of Green Bond portfolio -32.4% reduction in GHG emissions intensity by 2030 Green Buildings Renewable Energy Energy Efficiency Sustainable Farming 1,721 t CO2 eq pa 1,771 t CO2 eq pa -
Slide 36: Appendix
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Appendix 36 Warsaw Financial Center, Poland
Slide 37: Market update – Q3 2023
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Market update – Q3 2023 Real estate markets fundamentals supported by sound supply-demand balances Berlin Office market Prague Office market • The Berlin office market recorded • At the end of September 2023, the total Prague a solid first nine mont
Slide 38: Market update – Q3 2023
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Market update – Q3 2023 New supply in Warsaw is low, while Budapest records increasing demand Warsaw Office market Budapest Office market • At the end of September 2023, Warsaw’s modern office • Modern office stock in Budapest reached over stock amo
Slide 39: Market update – Q3 2023
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Market update – Q3 2023 Retail sales and footfall continue to increase across the CEE Czech Retail market Residential market • The Czech retail market continues to • Rents across the Czech Republic perform solidly. Turnovers are above increased by 4
Slide 40: Key office properties of GSG Berlin
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Key office properties of GSG Berlin Gustav-Meyer-Allee 25 Voltastraße 5 Wolfener Straße 32–34 PP value: €159 million PP value: €122 million PP value: €110 million GLA: 76,000 m² GLA: 33,000 m² GLA: 74,000 m² Schlesische Straße 27 PP value: €86 milli
Slide 41: Key office properties in Warsaw
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Key office properties in Warsaw Green Corner Atrium Centrum Atrium Plaza PP value: €55 million PP value: €56 million PP value: €45 million GLA: 15,000 m² GLA: 18,000 m² GLA: 15,000 m² Eurocentrum PP value: €253 million GLA: 85,000 m² City Centre Wes
Slide 42: Key office properties in Prague
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Key office properties in Prague Tokovo myhive Palmovka Bubenská 1 PP value: €39 million PP value: €81 million PP value: €85 million GLA: 21,000 m² GLA: 26,000 m² GLA: 22,000 m² Libeň Holešovice Hradčany Na Příkopě 14 PP value: €101 million GLA: 17,0
Slide 43: Shopping centres in the Czech Republic
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Shopping centres in the Czech Republic Shopping centres Olympia Mladá Boleslav Nisa City: Mladá Boleslav City: Liberec PP value: €56 million PP value: €96 million GLA: 21,000 m² GLA: 46,000 m² Olympia Teplice City: Teplice PP value: €61 million GLA:
Slide 44: Key Hotel & Resort properties
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Key Hotel & Resort properties Poland Number of hotel rooms in each country 106 Clarion Congress Mamaison Residence Mamaison Hotel Hotel Prague Downtown Prague Le Regina Prague, CZ Prague, CZ Warsaw, PL PP value: €90 million PP value: €32 million PP
Slide 45: Landbank Developments
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Landbank Selected development projects In the Czech Republic, the majority of the landbank is situated in Prague, mainly relating to Bubny, a 201,000 m² area strategically located close to Contruction approved / done the CBD. The majority of the rem
Slide 46: Disclaimer
CPI PROPERTY GROUP INVESTOR PRESENTATION – Q3 2023 Disclaimer This presentation and its contents are intended for use for information purposes only and may not be reproduced, redistributed, published or passed onto any other person or published, directly or indirectly, in whole or in part, for any p