Ctp N.v. · EURONEXT:CTPNV
Ctp — H1 2024 Earnings Presentation
43 slides from Ctp's earnings presentation, Aug 8, 2024
Slide 1: CTP N.V. Financial Highlights H1-2024
Save the date: Capital Markets Day CTP N.V. September 25 / 26 in Bucharest, Financial Highlights Romania H1-2024 8 August 2024
Slide 2: H1-2024: long-term demand trend continues to drive strong results
H1-2024: long-term demand trend continues to drive strong results Financial highlights Operational highlights €402m €321m € 676m €437 m 93% 93% (94% as at 31 Dec 2022) 6.5 yrs (+22.6% vs. 9M-2022) (+19.6% vs. 9M-2022) (93% as at 30 June 2023) (+14.4% vs. H1-2023) (+4.7% vs. H1-2023) Occupancy (6.5 y
Slide 3: CTP: pan-European platform and market leader in the CEE
CTP: pan-European platform and market leader in the CEE Core Markets Growth Markets 12.4m sqm GLA 2.0m Western European Markets Portfolio Value by Country (%) sqm GLA under construction NL AT 25.5m DE 3.3% 1.3% 8.7% BG 1.8% RS 3.6% sqm landbank PL 7.3% €14.8bn SK 6.9% GAV CZ 44.0% 115MWp Installed P
Slide 4: Accelerated growth since IPO in March 2021
Accelerated growth since IPO in March 2021 IPO 03/2021 +110% +190% +152% SQM of GLA (in millions) 14.0 12.4 11.8 12.0 10.5 10.0 Growth in GLA Growth in Landbank growth in Investment 2020- 2023 from 5.9 million sqm to from 8.8 million sqm to Property 8.0 7.6 CAGR: 26% 12.4 million sqm 25.5 million sq
Slide 5: Secured landbank gives significant mid-term potential
Secured landbank gives significant mid-term potential Significant embedded growth Expected YoC Projects under construction • 25.5 million sqm landbank, o/w 20.3 million sqm owned and on 13.5% balance sheet. 64% in existing parks, 25% in new parks with 11.6% 10.8% 11.0% 10.1% 10.3% 10.3% potential ov
Slide 6: Leasing activity in H1-2024 ahead of previous year
Leasing activity in H1-2024 ahead of previous year Leases signed by sqm Q1 Q2 YTD Q3 Q4 FY 2022 441,000 452,000 893,000 505,000 485,000 1,883,000 +8% H1-2024 YoY sqm 2023 297,000 552,000 849,000 585,000 542,000 1,976,000 of leases signed 2024 336,000 582,000 918,000 Average monthly rent Q1 Q2 YTD Q3
Slide 7: Rent levels of new leases signed in H1-2024 8% higher than H1-2023
Adjusted for country mix, rent levels of new leases signed in H1-2024 8% higher than in H1-2023 PL €4.94 €4.80 FY-2023 H1-2024 99,000 110,000 sqm sqm DE CZ SK €7.68 €5.48 €5.63 €6.48 €4.64 Group €4.55 €5.59 H1-2023 H1-2024 H1-2023 H1-2024 H1-2023 H1-2024 €5.47 83,000 71,000 292,000 178,000 28,000 78
Slide 8: Nearshoring drives demand from manufacturing tenants
Nearshoring drives demand from manufacturing tenants, which are strongly represented in CTP’s portfolio Portfolio June 2024 Leases signed in last 24 months GLA split by industry (%) GLA split by industry (%) Services Services Other 3% Other 3% 3% 4% Wholesale Trade 7% Wholesale Trade 11% Retail Trad
Slide 9: Nearly 10% of portfolio leases to Asian clients
Nearly 10% of portfolio leases to Asian clients producing in Europe for Europe GLA of Asian tenants 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 2018 2019 2020 2021 2022 2023 H1-2024 9
Slide 10: Strong and diversified international client base
Strong and diversified international client base Low operational and financial risk 34.7% 31.7% Top 50 Clients Top 50 as a % of Top 50 as a % of GLA split by industry (%) portfolio GLA Rental Income 3PLs Automotive E-commerce, Retail, High Tech 11% 8% Wholesale & Distribution 4% 6% 3PLS: 10.8% AUTOM
Slide 11: CTP's long-lasting tenant relations drive strong operational results
CTP’s long-lasting tenant relations drive strong operational results Occupancy1 (%) 95% 94% 94% 94% 95% 99.9% 93% Tenant retention Collection rate FY-2020 FY-2021 FY-2022 FY-2023 H1-2024 CTP’s market share in core markets2 (%) 27.5% 27.8% 27.4% 28.1% 4.8% Like-for-like rental growth3 69% CPI linked
Slide 12: Successful leasing of H1-2024 deliveries
Successful leasing of H1-2024 deliveries 328,000 92% Leased at delivery sqm €19.0m €1.8m Contracted rental income Additional rental income potential when full occupancy is reached 10.7% YoC 85% In existing parks or in new parks with >100k sqm potential NB: Figures may not add up due to rounding 12
Slide 13: Next growth phase locked in thanks to projects under development
Next growth phase locked in thanks to projects under development 2,044,000 10.3% 80-90% sqm under construction Expected YoC Expected pre-let at delivery 78% In existing parks 16% 51% Pre-let 2024 deliveries €148m Potential rental income In new parks with >100k sqm potential (vs. 40% at H1-2023 for 2
Slide 14: Accretive acquisitions – Romanian portfolio
Accretive acquisitions – Romanian portfolio Facility in Pitești 270,000 sqm of GLA 299,000 Facility in Oradea sqm of landbank 168.6m Purchase Price1 Facility in Timișoara >9% Reversionary Yield Existing portfolio locations Acquisition locations 1. Based on Net cash outflow (€74.8 million) + acquired
Slide 15: Energy
Energy 115 → YoC target: 15% MWp Installed 100 → Cost per MWp: ~€750k – below market average thanks to CTP acquiring in bulk and PV ready roof structures since 2020 → Income: 1-year lag between installation and income, i.e. MWp installed in 2023 drive 2024 income 38 → H1-2024 revenues: €3.4 million
Slide 16: Growth plan on track to reach 20 million sqm before end of the decade
Growth plan on track to reach 20 million sqm before end of the decade Standing portfolio & under construction Deliveries H1 Million sqm - owned Million sqm H2 14 1.2 2.0 2.0 1.0 12 2024: 0.9 1.7 0.8 1 - 1.5 million sqm 10 0.6 0.7 0.9 8 1.0 12.4 11.8 10.5 0.4 6 0.7 7.6 0.4 0.3 0.2 0.2 5.9 0.2 4 2020
Slide 17: ESG Integrated in CTP Business Model
ESG Integrated in CTP Business Model Clubhaus CTPark Bucharest West Recently rated world’s most sustainable non-residential building BREEAM score 94.67% - highest In-Use rating worldwide Fitness & Education & recreation training 1 Restaurants & Medical care 7 amenities on site 17
Slide 18: Financial results
Financial results 18
Slide 19: Financial highlights
Financial highlights In € million H1-2024 H1-2023 % change Q2-2024 Q2-2023 % change Gross Rental Income 320.9 280.4 +14.4% 163.3 144.4 +13.1% Net Rental Income 313.8 268.3 +17.0% 160.2 137.6 +16.4% Net valuation result on investment property 436.7 417.2 +4.7% 270.0 208.9 +29.2% Profit for the period
Slide 20: Gross Asset Value up 8.5% in H1-2024
Gross Asset Value up 8.5% in H1-2024 Investment Property (IP), Investment Property under Development (IPuD) and Property, Plant & Equipment (PPE) (€ million) GAV: 5,872 8,460 11,486 13,633 14,789 245 2020- 2023 CAGR: 32.4% 234 1,019 920 1,531 169 1,360 763 1,193 111 527 774 99 326 387 5,060 7,048 9,
Slide 21: Rental growth and pipeline drive valuation results
Rental growth and pipeline drive valuation results Revaluation (YTD) (€ million) 500 450 +32.3 400 H1-2024 like-for-like revaluation of 350 +3.0% driven by like-for-like ERV +175.2 300 growth of +2.9% 250 436.7 200 150 +229.2 100 50 0 Standing assets including IPuD Landbank H1-2024 stabilization H1-
Slide 22: EPRA NTA up 7.1%, driven by positive revaluations
EPRA NTA up 7.1%, driven by positive revaluations EPRA NTA € per share +€0.96 +€0.05 €17.05 -€0.28 +€0.40 €15.92 FY-2023 Company specific adjusted Revaluation Dividend Others H1-2024 EPRA EPS NB: Figures may not add up due to rounding 22
Slide 23: Conservative valuation yields
Conservative valuation yields H1-2024 FY-2023 H1-2023 FY-2022 H1-2022 → Between H1-2022 and H1-2024 80bps reversionary yield1 widening Gross Portfolio yield 6.5% 6.7% 6.6% 6.5% 6.3% → Yields have peaked in the Industrial & Logistics sector in the CEE region → Yield differential between CEE and Weste
Slide 24: Favourable maturity profile reflects active liquidity management
Favourable maturity profile reflects active liquidity management Bonds 2.38% Conservative residual Unsecured loans maturity of debt Secured loans (€ million) 1,749 Average cost of debt 1,519 1,428 907 99.7% Hedged / fixed 625 565 584 442 34 2024 2025 2026 2027 2028 2029 2030 2031 95 2032 2033+ 5.2 y
Slide 25: Strong liquidity position and ample headroom to covenants
Strong liquidity position and ample headroom to covenants €1.7bn 9.2x Normalized Net Debt 30 June 2024 Covenant Liquidity to EBITDA Secured Debt Test 19.1% 40% 60% Unsecured debt 46.2% LTV Unencumbered Asset Test 183.5% 125% Interest Cover Ratio 3.1x 1.5x CREDIT RATINGS (S&P & MOODY’S) BBB- (stable)
Slide 26: Good access to credit markets, €1.7 billion raised in H1-2024
Good access to credit markets, €1.7 billion raised in H1-2024 January 2024: February 2024: March 2024: Secured Loan Green Bond Secured Loan RCF Facility Facility → Increased to €550 million → First extension option exercised, → €100 million → €750 million → €90 million new maturity date: February 20
Slide 27: Outlook
Outlook → Leasing dynamics remain strong, with robust occupier demand, and decreasing new supply leading to continued rental growth → The Group’s pipeline is highly profitable with a YoC target of >10% and tenant led. The YoC for CTP’s current pipeline increased to 10.3%, thanks to decreasing constr
Slide 28: Guidance confirmed
Guidance confirmed Guidance 2024 Growing dividend Dividend policy1 Dividend per share €0.290 €0.275 70% - 80% €0.250 €0.80-€0.82 €0.220 €0.230 2024 Company specific €0.180 pay-out adjusted EPRA EPS €0.170 +10%-13% vs. 2023 Interim Final Interim Final Interim Final Interim 2021 2021 2022 2022 2023 20
Slide 29: Long-term potential
Long-term potential Annualized rent in million EUR Medium to long-term Short-term >1,200 77 >1,000 25 49 148 21 679 Annualized rent Completion of Filling up Indexation Reversion Future Annualized rent Reversion 20 million sqm Potential Full 30/6/2024 existing pipeline vacancy 2025-2027 2025-2027 del
Slide 30: Appendices
Appendices 30
Slide 31: Total return
Total return € per share EPRA NTA growth 20 DPS paid 18 €17.05 €1.41 -€0.28 16 -€0.48 €2.59 14 Total Return: +8% €2.15 -€0.40 12 Total Return: +18% -€0.17 10 €3.91 Total Return: +18% €8.32 8 Total Return: +47% 6 4 2 0 31 December NTA growth 2021 Dividend NTA growth2022 Dividend NTA growth 2023 Divid
Slide 32: Top 20 Parks 2.4m sqm
Top 20 Parks Since: 2015 Since: 2006 Since: 2015 Since: 2004 Since: 2006 The Top 20 parks represent the core of the CTPark Network. They are thriving business communities, with a dynamic mix of clients RO CZ RO RO CZ CZ from a broad range of industries. Bucharest West Bor Bucharest Brno Ostrava GLA:
Slide 33: Top 20 Parks 2.4m sqm
Top 20 Parks Since: 2020 Since: 2002 Since: 2015 Since: 2021 Since: 2024 The Top 20 parks represent the core of the CTPark Network. They are thriving business communities, with a dynamic mix of clients from a broad range of industries. RO CZ CZ RO RO SK CZ RO Brno Líšeň Hranice Timișoara Námestovo T
Slide 34: EPRA EPS
EPRA EPS EPRA Earnings (€ million) H1-2024 H1-2023 Earnings per IFRS income statement 533.7 469.6 Adjustments to calculate EPRA Earnings, exclude: Changes in value of investment properties, development properties held for investment and other interests 436.7 417.2 Profits or losses on disposal of in
Slide 35: EPRA NAV
EPRA NAV EPRA Net Asset Value Metrics (€ million) EPRA NRV EPRA NTA EPRA NDV 30 June 2024 31 December 2023 30 June 2024 31 December 2023 30 June 2024 31 December 2023 IFRS Equity attributable to shareholders 6,681.0 6,166.9 6,681.0 6,166.9 6,681.0 6,166.9 Include / Exclude: i) Hybrid instruments Dil
Slide 36: EPRA NIY
EPRA NIY EPRA NIY and 'topped-up' NIY (€ million) 30 June 2024 31 December 2023 Investment property – wholly owned 14,543.6 13,398.8 Investment property – share of JVs/Funds Trading property (including share of JVs) Less: developments 1,530.9 1,359.6 Less: landbank 1,018.7 919.8 Completed property p
Slide 37: LTV
LTV LTV (€ million) 30 June 2024 31 December 2023 Investment Property 13,012.7 12,039.2 Investment Property under Development 1,530.9 1,359.6 Property, Plant and Equipment 244.9 233.8 Gross Asset Value 14,788.5 13,632.6 Bonds 3,675.2 3,590.0 Interest-bearing loans and borrowings from financial insti
Slide 38: Cost of debt
Cost of debt Cost of Debt (€ million) 30 June 2024 31 December 2023 Net finance costs (IFRS) -110.5 -111.7 To be excluded: Profit in loss from fin assets and liabilities for trading 0.6 -1.7 Exchange rate differences 12.1 9.2 Other financial income 32.5 1.0 Other financial expense -8.3 -8.5 Interest
Slide 39: Portfolio
Portfolio GAV1 Standing2 IPuD Landbank2 PPE Portfolio split by value (in %) (€14,789m) (€11,994m) (€1,531m) (€1,019m) (€245m) Czech Republic 44% 47% 28% 30% 64% Romania 15% 17% 5% 11% 9% Germany 9% 10% 3% 7% 2% Hungary 8% 8% 9% 11% 4% Poland 7% 4% 30% 17% 2% Slovakia 7% 6% 11% 11% 2% Serbia 4% 3% 3%
Slide 40: Portfolio
Portfolio Standing IPuD Landbank Portfolio split by sqm (‘000) (12,439 sqm) (2,044 sqm) (25,542 sqm) Czech Republic 4,216 34% 469 23% 8,702 34% Romania 2,962 24% 202 10% 3,804 15% Germany 1,685 14% 64 3% 534 2% Hungary 1,054 8% 181 9% 2,942 12% Slovakia 881 7% 181 9% 2,075 8% Poland 507 4% 558 27% 3
Slide 41: Financial calendar
Financial calendar Event: Date: Ex-dividend - 2024 interim dividend 2 September 2024 Record date - 2024 interim dividend 3 September 2024 Start election period scrip or cash - 2024 interim dividend 4 September 2024 Capital Markets Day (Bucharest, Romania) 25/26 September 2024 End election period - 2
Slide 42: Disclaimer
Disclaimer This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and business of CTP. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “pla
Slide 43: Maarten Otte, Head of Investor Relations
Maarten Otte, Head of Investor Relations Mobile: +420 730 197 500 Email: maarten.otte@ctp.eu 43