Cpi Property Group S.a. · XETR:O5G
Cpi Property — H1 2024 Earnings Presentation
48 slides from Cpi Property's earnings presentation, September 2024
Slide 1: Investor Presentation H1 2024 (September 2024)
Investor Presentation H1 2024 (September 2024)
Slide 2: Financial highlights for H1 2024
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Financial highlights for H1 2024 TOTAL ASSETS PROPERTY PORTFOLIO NET LTV CONTRACTED GROSS RENT €21.2 billion €18.6 billion 50% €939 million H1 CONSOLIDATED H1 FUNDS FROM OPERATIONS OCCUPANCY ADJUSTED EBITDA (FFO) LIKE-FOR-LIKE RENTAL GROWTH €395 €20
Slide 3: Scale, diversification and quality
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Scale, diversification and quality myhive Warsaw Spire, Poland Property portfolio by segment (as at 30 June 2024) Office €204m €2,953m €8m, 2% Retail 16% 46% €8,497m €31m 46% 7% Residential €995m 5% Property €18m Net business 4% portfolio income Hot
Slide 4: High-yielding portfolio, growing rents and earnings
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 High-yielding portfolio, growing rents and earnings Like-for-like rental income continues to grow* Gross and net rental income (€ million) Gross rental income Net rental income % YoY change 7.9% 934 7.6% +25% 796 749 +26% +86% 632 +74% 4.4% 472 402
Slide 5: CPIPG strategy and performance
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 CPIPG strategy and performance Property portfolio (€ million) • CPIPG is confident in the long-term positioning of our property portfolio Office Office €20.9bn €20.9bn 2,965 2,965 €19.5bn €19.5bn • Real estate and economic fundamentals in our region
Slide 6: High occupancy reflects tenant and asset quality
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 High occupancy reflects tenant Top 10 tenants by rental income and asset quality € million Rent as % of GRI* WAULT** (years) 88% • High occupancy rate of 91.3% across the portfolio. Retail remains virtually Office fully occupied at 96.5%, offices ar
Slide 7: Diversified tenants and a solid lease profile
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Diversified tenants and a solid lease profile Office tenants by type (according to headline rent) Top 10 income-generating assets IT Value EPRA Asset % Total GLA m² (€ m) occupancy Location Professional Services 12% 16% myhive Warsaw Spire 365 2.0%
Slide 8: Financing and liquidity
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Financing and liquidity Changes in external financing during H1 2024 (€ million) • €1.7 billion of liquidity at H1 2024 11,257 188 • Debt maturities are well-covered 500 • Over €1.4 billion of bonds and loans repaid in H1 2024 10,478 • CPIPG is high
Slide 9: Disposal pipeline on track
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Disposal pipeline on track Examples of completed disposals Granularity and diversification of pipeline are significant advantages Crans Montana Ski Resort, Switzerland • The Group closed €980 million in gross disposals year-to-date. Nearly €400 mill
Slide 10: Sound real estate market fundamentals
Sound real estate market fundamentals my hiv eP alm ovk a, Pr agu e, C zec h Rep ublic 10
Slide 11: Healthy supply/demand balance for offices across Central and Eastern Europe
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Healthy supply/demand balance for offices across Central and Eastern Europe Vacancy rates in Central Europe remain low while new supply is limited Office vacancy rates in Central Europe are at healthy levels, partly declining Annual office completio
Slide 12: Occupier demand driven by economic growth and return-to-office
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Occupier demand driven by economic growth and the return-to office as hybrid work models prevail Demand recovered since 2021 albeit still below pre-pandemic levels Top reason for working in the office among Top reason for working at home among (Gros
Slide 13: CEE retail continues to benefit from catch-up effect with Western Europe
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 CEE retail continues to benefit from catch-up effect with Western Europe Real income continues to grow in CEE (2010 = 100)... …boosting purchasing power reflected in healthy retail sales volume growth Eurozone Czech Republic Romania Hungary* Romania
Slide 14: CPIPG's regions have limited retail density
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 CPIPG’s regions have limited retail density Difficulty to build competing supply in the CZ shopping centre density below WE, high street very limited Czech Republic Shopping centre GLA (m2 / 1,000 inhabitants) World Bank ease of doing business ranki
Slide 15: Investment market activity focused on small and mid-size transactions
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 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 investors, family offices and funds. • According to Savills, European Investment m
Slide 16: Portfolio overview
Portfolio overview Oranienstraße 6, Berlin, Germany 16
Slide 17: Office portfolio: leader in CEE capital cities
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Office portfolio: leader in CEE capital cities Prinzessinnen-Höfe, Berlin, Germany photo: © CHL • Prominent CEE office owner with more than Office property portfolio split by geography 3 million m² of space across 170 properties Berlin €590m • Focus
Slide 18: Sound tenant demand for offices in our regions
Berlin €590m 7% €2,509m Warsaw 30% CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 7% €592m 7% 30% Sound tenant demand for offices in our regions Prague 7% Andrassy-Palace, Budapest, Hungary 6% €469m Budapest 6% 6% Property portfolio Office property portfolio split Vienna 6% €8.5 billion 7% €545m
Slide 19: Berlin office: delivering higher rents
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Berlin office: Schlesische Straße 26, Berlin, Germany photo: © CHL delivering higher rents GSG tenants by type (according to headline rent) Professional Services IT 3% 33% • Portfolio valued at €2.5 billion, offering 6% 900,000 m2 of space across 41
Slide 20: Berlin portfolio is well-positioned for growth
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Berlin portfolio is well-positioned for growth Gustav-Meyer-Allee, Berlin, Germany photo: © CHL Average rents comparison (€/m2/month) GSG Rent Evolution Savills estimated ERV for GSG's portfolio Average rent in Berlin €28.60 €27.80 €27.70 €27.20 €14
Slide 21: Warsaw office: central locations, actively managed
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Warsaw office: central locations,actively managed Warsaw Financial Center, Poland Warsaw tenants by type (according to headline rent) 2% • Portfolio of €1.6 billion offering 500,000 m2 2%across 9% 19 properties Financial Services/ Manufacturing 20%
Slide 22: Prague office: market leader
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Prague office: market leader Zlatý Anděl, Prague, Czech Republic Prague office tenants by type (according to headline rent) • Portfolio of €889 million with 300,000 m2 across Financial Services/ Consumer Goods 19 properties Banking/Insurance Profess
Slide 23: Vienna office: good assets, stable performance
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Vienna office: good assets, stable performance • Through our IMMOFINANZ and S IMMO acquisitions, CPIPG became a leading office owner in Vienna Vienna office net rental income (€ million) • Portfolio valued at €609 million, or 7% of CPIPG’s total off
Slide 24: Budapest office: challenging market, good assets and a great team
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Budapest office: challenging market, good assets and a great team Budapest office net rental income • Portfolio valued at €687 million, or 8% of CPIPG’s total (€ million) office exposure, across 20 properties 22 22 • Modern and sustainable assets in
Slide 25: Bucharest: delivering solid performance
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Bucharest: delivering solid performance • 13 properties valued at €545 million, myhive S-Park, Bucharest, Romania representing 6% of CPIPG’s office portfolio • Combined with our investment in Globalworth, CPIPG is one of the largest Key owners of of
Slide 26: Retail portfolio: focused on CEE retail parks and shopping centres
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Retail portfolio: focused on CEE retail parks and shopping centres • CPIPG is a leading retail landlord in CEE owning 160 retail parks, 30 shopping Retail assets by type (according to GLA) Retail parks 1,103,015 m² centres, hypermarkets, DIY shops,
Slide 27: Retail portfolio: solid performance continues
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Retail portfolio: solid performance continues Maximo Shopping Centre, Rome, Italy Retail occupancy rate by country (%) Net rental income (€ million) 97.0 % 97.9% 97.5% 96.5% Total 97.0 % 97.9% 97.9% 98.1% 97.7% 96.3% 181 Total 97.4% 171 97.9% 98.1%
Slide 28: Largest retail park owner in the CEE region
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 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 29: Retail assets continue to perform well
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 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 +3.8% YoY (CZK million) 2023 2024 1,129 1,101 1,129 1,040
Slide 30: Residential portfolio: in-demand asset class
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Residential portfolio: in-demand asset class Residential property portfolio by country Group residential net • Residential assets represent around 7% of the Group’s portfolio with Czech CzechRepublic Czech Republic Republic Germany Germany Germany U
Slide 31: CPI BYTY: Affordable housing in the Czech Republic
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 CPI BYTY: Affordable housing in the Czech Republic CPIPG has extensive residential experience in the Czech Republic and makes selective investments in the UK and other locations. Liberec Czech portfolio increases in gross rental income (€ million) Ú
Slide 32: Hotels portfolio: hospitality leader in our region
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Hotels portfolio: hospitality leader in our region • CPIPG is one of the largest hotel owners in Central Europe and operates in several segments, primarily in congress & convention centres as well as boutique and long-stay residential hotels • As an
Slide 33: Hotel performance
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Hotel performance Net hotel income (€ million) Strong recovery in travel demand in 2023, continues into 2024 Net Hotel Income Net Rental Income from Hotels rented 32 • Net income from hotels operated and hotels rented amounted to €25 million. 25 • T
Slide 34: Complementary assets: long-term strategic investments
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Complementary assets: long-term strategic investments • Portfolio consists primarily of landbank in the Czech Republic, Berlin Complementary assets portfolio and Italy Landbank • Much of the landbank was acquired over a long period of time at very €
Slide 35: Financing structure & debt profile
Financing structure & debt profile VIVO! Stalowa Wol Shopping Centre, Poland 35
Slide 36: Financing structure and composition
Income generating – Other WE Landbank & CPI Development – Prague PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Financing structure and composition Landbank & Development – Other Split of securedUnsecured Secured versus unsecured debt Composition of unencumbered asset portfolio Secured Unsecured Sec
Slide 37: Long dated debt maturity profile
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Long dated debt maturity profile Strong liquidity (€ million) 4.2 years 2,043 Cash as at 30 June 2024* 1,166 (+) RCF – undrawn amount 490 H1 2024 weighted 1,948 average debt (+) Other undrawn lines 14 maturities 1,779 Total liquidity as at 30 June 2
Slide 38: Ample covenant headroom; improvement expected
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Ample covenant headroom; improvement expected Overview bond covenants under our EMTN programme Covenant Threshold H1 2024 Headroom -18% / or close to €3.7 billion Consolidated Leverage Ratio ≤ 60% 49.5% valuation decline 26% / or more than €200 mill
Slide 39: CPIPG's approach to ESG and sustainability
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 CPIPG’s approach to ESG and sustainability VIVO! Lublin Shopping Centre, Poland 39
Slide 40: Significant progress on environmental targets
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Significant progress on environmental targets Green Certified Buildings -20% +52.6% 41.4% LfL Electricity from of portfolio by value (YoY) GHG Intensity* renewable sources (YoY) * Refers to 2023 Group’s performance versus 2023 Group’s target. 40 CPI
Slide 41: Our focus is on tangible outcomes
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Our focus is on tangible outcomes -32.4% reduction in GHG emissions intensity by 2030 GHG intensity target through 2030 (t CO2eq/m2 p.a.) 2023 GHG emissions intensity across the portfolio (t CO2e/m2 p.a.) 41 Current target (-32.4%) Well below 2°C Ac
Slide 42: Group governance summary
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Group governance summary Disclosure & compliance Assurance The Group’s securities are listed on the The X Principles of Corporate Governance of the Luxembourg Stock Exchange Current external auditor following regulated stock exchanges: Shareholders
Slide 43: Appendix
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Appendix 43 Warsaw Financial Center, Poland
Slide 44: Key office properties of GSG Berlin
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Key office properties of GSG Berlin Gustav-Meyer-Allee 25 Voltastraße 5 Wolfener Straße 32–34 PP value: €141 million PP value: €106 million PP value: €108 million GLA: 77,000 m² GLA: 33,000 m² GLA: 74,000 m² Schlesische Straße 27 PP value: €68 milli
Slide 45: Key office properties in Warsaw
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Key office properties in Warsaw Green Corner Atrium Centrum Atrium Plaza PP value: €53 million PP value: €56 million PP value: €39 million GLA: 15,000 m² GLA: 18,000 m² GLA: 15,000 m² Eurocentrum PP value: €226 million GLA: 85,000 m² City Centre Wes
Slide 46: Key office properties in Prague
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Key office properties in Prague Tokovo myhive Palmovka Bubenská 1 PP value: €35 million PP value: €78 million PP value: €80 million GLA: 21,000 m² GLA: 26,000 m² GLA: 22,000 m² Libeň Holešovice Hradčany Na Příkopě 14 PP value: €90 million GLA: 17,00
Slide 47: Shopping centres in the Czech Republic
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 Shopping centres in the Czech Republic Shopping centres Olympia Mladá Boleslav Nisa City: Mladá Boleslav City: Liberec PP value: €56 million PP value: €95 million GLA: 21,000 m² GLA: 47,000 m² Olympia Teplice City: Teplice PP value: €63 million GLA:
Slide 48: Disclaimer
CPI PROPERTY GROUP INVESTOR PRESENTATION – H1 2024 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