Cpi Property Group S.a. · XETR:O5G
Cpi Property — Investor Presentation (June 2023)
51 slides from Cpi Property's investor presentation, June 2023
Slide 1: Investor Presentation June 2023
Investor Presentation June 2023
Slide 2: Key figures as of Q1 2023
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Key figures NET LTV as of Q1 2023 50.3% TOTAL ASSETS PROPERTY PORTFOLIO CONTRACTED GROSS RENT €23.3 €20.6 Q1 2023 €908 45-49% • One of Europe’s largest landlords billion billion million year-end target for 2023 • Generating substantial recurring i
Slide 3: The Group operates in five key segments
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 The Group operates in five Office – 48% of portfolio • Leading landlord in Berlin, Prague, Warsaw, Budapest, Bucharest, and Vienna key segments • Strategic investments in IMMOFINANZ, S IMMO, and Globalworth brought further scale and quality Retail
Slide 4: Group overview
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Group overview myhive Warsaw Spire Property portfolio by segment (as at 31 March 2023) Office €3,026 m €4 m, 1% €333 m Retail 15% €40 m 49% €9,952 m 6% €1,029 m €32 m Residential 48% 5% 5% Property Net business Hotels & Resorts portfolio income 9%
Slide 5: Scale, diversification and quality
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Scale, diversification and quality Growth of the Group's property portfolio (€ million) Gross and net rental income (€ million) Gross rental income Net rental income % YoY change Office €20.9 bn €20.6 bn 749 Retail 2,965 +86% 3,026 Residential 632
Slide 6: Acquisitions of IMMOFINANZ and S IMMO
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Acquisitions of and IMMOFINANZ and S IMMO are two highly regarded landlords listed in Vienna S IMMO: BudaPart Gate, Budapest Acquisition Rationale Acquisition sources and uses (€3.4 bn) • Creation of a dominant real estate company within the CEE r
Slide 7: Disposal pipeline of €2 billion+ in execution
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Disposal pipeline of €2 billion+ in execution Disposal examples Granularity and diversification of pipeline is a significant advantage Executed disposals by country and segment BBC Gamma, Prague, Czech Republic • At the end of August 2022, CPIPG a
Slide 8: Resilient portfolio valuations FY 2022
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Resilient portfolio valuations FY 2022 Higher-yielding nature of our portfolio and strong operational performance mitigated yield expansion TOTAL Office Retail Residential Other -€126 (Landbank, Hotels & other complementary assets) million -0.6% -
Slide 9: Update on financing activities
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Update on financing activities Divergence between bond and bank markets – focus on bank financing Q2 2023 2022 €170 million secured loan €700 million SLB €100 million bilateral loan • Refinancing and upsizing (+33 m) of • Innovative sustainability
Slide 10: Business update
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Business update 10 Balance Hall, Budapest, Hungary
Slide 11: Stable occupancy and strong tenants
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Stable occupancy and strong tenants • Strong like-for-like rental growth of 9.9% in combination with acquisitions increased net rental income by +79% to €197 million in Q1 2023. Top 10 tenants by rental income 89% Rent as WAULT** € million % of GR
Slide 12: Well-diversified with a balanced lease profile
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 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 IT (€ m) occupancy Location Financial Services/Banking/Insuran
Slide 13: Sound real estate market fundamentals
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Sound real estate market fundamentals myhive Medienhafen ALTO, Berlin, Germany 13
Slide 14: New supply is limited and only economically viable with higher rents
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 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 European Construction Cost Index (CCI) Annual office completions CEE Capital Ci
Slide 15: Occupier demand continues to recover
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Occupier demand continues to recover European office market dynamics have been and European office take-up is recovering to pre-pandemic continue to differ from other regions levels Q1 Q2 Q3 Q4 Pre-COVID Average vacancy rate 20% U.S. 18% 10,000,00
Slide 16: Investment market activity reflect changed buyer profiles
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Investment market activity reflect changed buyer profiles Selected key transactions Germany and CEE Q4 '22 to date • Shift towards buyers with a larger share of equity financing such as funds, family Property Sector Location, Country Sales price (
Slide 17: Portfolio overview
Portfolio overview Oranienstraße 6, Berlin, Germany 17
Slide 18: CPIPG is the leading office landlord in CEE
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 CPIPG is the leading office landlord in CEE Strong performance due to active asset management approach and sound supply / demand balance #1 Q1 2023 LIKE-FOR-LIKE LIKE-FOR-LIKE LEASING ACTIVITY RENTAL GROWTH OFFICES office landlord 7.6% +8% in Berl
Slide 19: Office segment
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Office segment Office property portfolio split myhive IO-1, Warsaw, Poland Globalworth €596 m Berlin €3,006 m CPIPG is the leading office Other 6% 30% €639 m landlord in CEE. The portfolio 6% Bucharest is centred around our leading €570 m 6% posit
Slide 20: GSG Berlin office
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 GSG Berlin office Berlin office GSG tenants by type (according to headline rent) net rental income • A leading commercial real estate platform in Berlin (€ million) Professional Services IT 3% 33% 6% • Portfolio uniquely suited to creative and IT
Slide 21: Significant upside potential in GSG’s rents
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Significant upside potential in GSG’s rents €28.1/m² €14.4/m² • GSG’s average rents remain well below the Berlin market average €10.6/m² • In Q1 2023 GSG’s average monthly rent increased by 2.2% compared to YE 2022 Savills 2022 Q1 2023 market GSG
Slide 22: Warsaw office
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Warsaw office • Highly dynamic office market Warsaw tenants by type (according to headline rent) with the highest space net €1.8 bn Financial Services/ Consumer Goods absorption in Europe relative to Banking/Insurance 2% 11% Warsaw office 2% the m
Slide 23: Prague office
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Prague office Prague office tenants by type (according to headline rent) Professional Services Consumer Goods Professional Services Consumer Goods 2% • €1 billion Prague office portfolio Financial Services/ 2%11% Telecom 3% 11% 16% • Beautiful his
Slide 24: Retail segment
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Retail segment Net rental income (€ million) Retail property portfolio by country 81 Total 96.8% Czech Republic, €1,580 m 96.7% 97.0% 97.9 96.9% 96.8% 97.9% CPIPG is the leading retail park landlord Czech Republic Italy, €617 96.6% m 96.7% 96.3% i
Slide 25: Largest retail park owner in the CEE region
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 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 leadin
Slide 26: Retail assets continue to perform well
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Retail assets continue to perform well CPIPG is the leading retail park landlord in CEE and in the Czech Republic LfL tenant sales in Czech shopping centres (SCs) are well above 2019 levels while footfall remains below pre-COVID levels Tenant sale
Slide 27: CPIPG’s regions have limited retail density
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 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** 97.3% shopping centres Well- positioned CPIPG % of re
Slide 28: Residential segment
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Residential segment Czech portfolio increases in gross rental income (€ million) Liberec 29.3 Ústí nad Labem 24.7 22.1 22.4 21.3 19.8 Prague Ostrava 8.4 6.9 2017 2018 2019 2020 2021 2022 Q1 2022 Q1 2023 28 = cca 500 units Residential property port
Slide 29: Hotels & Resorts segment
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Hotels & Resorts segment CPIPG owns and operates hotels primarily located in the CEE region. #1 #1 Diversified congress & resort on the portfolio We benefit from local knowledge, scale, and the ability to control costs. convention hotels premier i
Slide 30: Strong recovery in net hotel income
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Strong recovery in net hotel income Robust demand expected to continue throughout 2023 • Q1 2023 net hotel income of €4.8 million a record start into the year after last years negative first quarter result +6.6% ADR vs. 2019 • Net hotel income in
Slide 31: Complementary assets
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Complementary assets Complementary assets property portfolio Consists primarily of landbank in the Czech Republic, Berlin Landbank, €2,274 m and Italy, as well as selective development projects and 1% smaller portfolios. 1% Development, €355 m 2%
Slide 32: Financial policy & debt profile
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Financial policy & debt profile VIVO! Stalowa Wol Shopping Centre, Poland 32
Slide 33: Capital structure and financial policy
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Capital structure and financial policy Committed to a strong investment grade capital structure Target Net LTV High level of Preference of up to 40%, Target Net ICR for senior unencumbered or up to 45% in the of 3× unsecured assets & case of strat
Slide 34: Financing structure and composition
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Financing structure and composition Split of secured versus unsecured debt Composition of unencumbered asset portfolio Secured Unsecured Income generating – CZ €1,673 m €2,365 m CPIPG IMMOFINANZ S IMMO IMMOFINANZ U S IMMO U Income generating – PL
Slide 35: Long dated debt maturity profile
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Long dated debt maturity profile (as at 31 March 2023) Strong liquidity (€ million) 4.8 years Cash as at 31 Mar 2023 1,017 2.77% Q1 2023 weighted €1.9 billion (+) RCF – undrawn amount 850 average debt average cost (+) Other undrawn lines 16 maturi
Slide 36: CPIPG’s approach to ESG and sustainability
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 CPIPG’s approach to ESG and sustainability VIVO! Lublin Shopping Centre, Poland 36
Slide 37: Significant strides made in ESG
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 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 202
Slide 38: Our focus is on tangible outcomes
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Our focus is on tangible outcomes Estimated environmental impact of Green Bond portfolio 100% CPIPG electricity purchases from renewable sources Green Buildings Renewable Energy Energy Efficiency Sustainable Farming by 2024 1,721 t CO2 eq pa 1,771
Slide 39: Appendix
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Appendix 39 Warsaw Financial Center, Poland
Slide 40: Market update – Q1 2023
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Market update – Q1 2023 Real estate markets recorded sound take-up level and rising rents Berlin Office market Prague Office market • The Berlin office market continues • At the end of Q1 2023, the total Prague modern to see good occupier demand.
Slide 41: Market update – Q1 2023
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Market update – Q1 2023 Warsaw letting activity is strong due to solid demand while supply is slowing down Warsaw Office market • The investment volume in the Warsaw office market stood at €116 million in Q1 2023. • At the end of March 2023, Warsa
Slide 42: Market update – Q1 2023
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Market update – Q1 2023 Retail sales are above 2019 levels with limited new supply on the market Czech Retail market Residential market • The Czech retail market continues to • Rents across the Czech Republic perform solidly. Turnovers are above i
Slide 43: Key office properties in Berlin
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Key office properties in 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 million
Slide 44: Key office properties in Warsaw
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Key office properties in Warsaw Concept Tower Green Corner Atrium Centrum Atrium Plaza PP value: €27 million PP value: €52 million PP value: €56 million PP value: €45 million GLA: 9,000 m² GLA: 15,000 m² GLA: 18,000 m² GLA: 15,000 m² Eurocentrum P
Slide 45: Key office properties in Prague
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Key office properties in Prague Tokovo myhive Palmovka Bubenská 1 PP value: €40 million PP value: €81 million PP value: €87 million GLA: 22,000 m² GLA: 26,000 m² GLA: 22,000 m² Libeň Holešovice Hradčany Na Příkopě 14 PP value: €99 million GLA: 17,
Slide 46: Shopping centres in the Czech Republic
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 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: 49,000 m² Olympia Teplice City: Teplice PP value: €60 million GL
Slide 47: Key Hotel & Resort properties
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Key Hotel & Resort properties Number of hotel rooms in each country Poland 106 Clarion Congress Mamaison Residence Mamaison Hotel Hotel Prague Downtown Prague Le Regina Prague, CZ Prague, CZ Warsaw, PL PP value: €93 million PP value: €32 million P
Slide 48: Landbank in the Czech Republic
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Landbank in the Czech Republic The majority of the Czech landbank is situated in Prague, mainly relating to Bubny, Prague a 201,000 m² area strategically located close to the CBD and where we completed the redevelopment of flagship office Bubenská
Slide 49: Landbank & development in Berlin
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Landbank & development in Berlin In Berlin, the Group owns landbank located in GSG Berlin also has several attractive future attractive areas. This provides opportunities developments in its pipeline, mainly relating to for low-risk extensions and
Slide 50: Landbank & development in Italy
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 2023 Landbank & development in Italy Landbank in Rome, Italy The majority of landbank in Italy is primarily located in the periphery of Existing Asset Rome and strategically focused on holistic mixed-use (residential and Stadio Roma Tiburtina commercia
Slide 51: Disclaimer
CPI PROPERTY GROUP INVESTOR PRESENTATION – JUNE 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
CPI Property Group — Investor Presentation (June 2023) on 6ix