Cpi Property Group S.a. · XETR:O5G
Cpi Property — Investor Presentation (December 2022)
50 slides from Cpi Property's investor presentation, December 2022
Slide 1: Investor Presentation December 2022
Investor Presentation December 2022 photo: © GSG Berlin
Slide 2: Highlights for Q3 2022
Highlights for A €20 billion+ European landlord • CPIPG’s platform was transformed through the acquisitions and consolidation of IMMOFINANZ and Q3 2022 • S IMMO Significant scale achieved: €865 million of contracted rent as of 30 June 2022 • Strong performance of our assets and local teams with like
Slide 3: Key figures
Key TOTAL ASSETS PROPERTY PORTFOLIO NET LTV €23.7 bn €21.2 bn 48.6% figures vs. €14.4 billion at year-end 2021 vs. €13.1 billion at year-end 2021 above target; full focus on reduction NET RENTAL INCOME CONSOLIDATED ADJUSTED EBITDA FUNDS FROM OPERATIONS (FFO) • Significant increase in CPIPG’s scale a
Slide 4: Group overview
Group overview Active asset manager Property portfolio by segment (as at 30 September 2022) Local Office €3,029 m 14% €21.2 bn €12 m 4% €11 m 4% expertise Retail property and teams Residential €1,072 m 5% portfolio Hotels & Resorts Portfolio 47% €2,226 m 11% value Diversified Complementary Assets €2
Slide 5: Acquisitions of IMMOFINANZ and S IMMO
GROUP OVERVIEW Acquisitions of IMMOFINANZ and S IMMO IMMOFINANZ: myhive Warsaw Spire GLA: 71,600 m2 IMMOFINANZ and S IMMO are two highly regarded landlords listed in Vienna • Complementary high-quality portfolios focused on office and retail in the CEE region. CPIPG owns • The platforms offer attrac
Slide 6: Disposal Pipeline of €2 billion+ in execution
Disposal Pipeline of €2 billion+ in execution Granularity and diversification of pipeline is a significant advantage • At the end of August 2022, CPIPG announced the Group is working on a disposal pipeline exceeding €2 billion. • The Group’s disposal strategy focuses on low-yielding mature assets, s
Slide 7: Business segments
Business segments The Group operates in five segments: Office, Retail, Residential, Hotels & Office Resorts and Complementary Assets. In each segment, we have market- • Leading landlord in Berlin, Prague and Warsaw 47% leading platforms that benefit from • Strategic investments in IMMOFINANZ, of por
Slide 8: Primary locations
Primary locations 1:20 Berlin 78% 1:05 1:20 Warsaw of the Group’s property POLAND €2,662 m portfolio is located in Central Europe 3:30 1:10 Investments in Italy, Romania, Prague the UK and other 1:10 GERMANY CZECH locations REPUBLIC 2:15 €5,038 m €5,194 m 0:50 Brno SLOVAKIA 1:30 €638 m 1:45 Vienna B
Slide 9: A landlord of significant scale, diversification and quality
A landlord of significant scale, diversification and quality Growth of the Group's property portfolio (€ million) Gross and net rental income (€ million) Office €21.2 bn Gross rental income Net rental income % YoY change Retail 3,029 520 +79% Residential 441 Hotels & Resorts 1,072 402 +66% 2,226 356
Slide 10: Business update
Business update Bubenská 1, Prague, Czech Republic CPI Property Group | Investor Presentation | December 2022 10
Slide 11: Performance update CPIPG – Q3 2022
Performance update CPIPG – Q3 2022 Segment Q3 2022 leasing highlights Comments Berlin office • New rents 43% higher than previous rents; LfL rents up 10.1% New leases, extensions and prolongations signed across • Leasing activity and rent reversion unchanged to previous years 78,192 m² of space (24,
Slide 12: Performance update CPIPG – Q3 2022
Performance update CPIPG – Q3 2022 Segment Comments Retail • All COVID restrictions have been removed since 14th March Czech Republic • Shopping centre turnover is 15% above YTD Q3 2019 while footfall remains c. 15% below & Slovakia • Increase in tenant’s running costs driven by electricity, gas, tr
Slide 13: Good yielding portfolio, resilient cashflows
Good yielding portfolio, resilient cashflows Our portfolio is defensively positioned in an environment of higher interest rates EPRA Net Initial Yield vs. average cost of debt Rental income continues to grow while cash flow visibility remains high Like-for-like rental growth** WAULT to first break (
Slide 14: Supportive factors for valuations
Supportive factors for valuations Sound operational fundamentals of property markets soften effect of higher rates • Empirical evidence shows a high positive correlation between rents and inflation. • More than 90% of our lease contracts are subject to indexation. High proportion • The most common l
Slide 15: Update on financing activities
Update on financing activities Divergence between bond and bank markets – Focus on bank financing €700 million SLB €100 million bilateral loan • Innovative sustainability-linked bond • Senior unsecured loan signed in June (SLB) issuance of 8 years and an • 3.5 years maturity at 150 bps spread annual
Slide 16: Portfolio overview
Portfolio overview Zlatý Anděl, Prague, Czech Republic CPI Property Group | Investor Presentation | December 2022 16
Slide 17: Well-diversified by assets and tenants with a balanced lease profile
Well-diversified by assets and tenants with a balanced lease profile Top 10 tenants by rental income Maturity profile of fixed rental agreements € million Rent as % of GRI* WAULT**(years) 28% 8.4 0.9% 6.2 7.9 0.9% 3.0 22% 7.6 0.9% 6.5 7.6 0.9% 2.7 15% 15% 15% 7.6 0.8% 3.3 7.0 0.8% 3.0 7.0 0.8% 7.0 5
Slide 18: Office segment
Office segment CPIPG is a leading office landlord in Europe, with Leading • A leading landlord in Berlin robust platforms across several core markets. The portfolio is centred around our leading positions in market Berlin, Warsaw, Prague, Vienna, and Budapest. positions • #1 office landlord in Warsa
Slide 19: Berlin office
Berlin office • A leading commercial real estate platform 40 in Berlin Berlin office net rental income (€ million) Assets across Berlin 61 66 • Portfolio uniquely suited to creative and IT sectors 91.8% Occupancy • About 1,700 tenants Q1-Q3 2021 Q1-Q3 2022 10.1% • Strong market with 2.9% overall vac
Slide 20: Significant upside potential in GSG's rents
Significant upside potential in GSG’s rents • GSG’s average rents remain well below the Berlin market average • Average rents have consistently increased since 2016 • Average rents increased by 6.4% in Q3 2022 vs. Q4 2021 • Savills analysis suggests that average rents for the portfolio could potenti
Slide 21: Warsaw office
Warsaw office Modern €1.8 bn and green Warsaw office Warsaw office net rental income (€ million) portfolio portfolio 61 #1 office 41 landlord in Warsaw Q1-Q3 2021 Q1-Q3 2022 Warsaw tenants by type (according to headline rent, as of H1 2022) Financial Services/Banking/Insurance 22% IT 13% Professiona
Slide 22: CPIPG's office platform in Warsaw is unmatched
CPIPG’s office platform in Warsaw is unmatched GLA 6.5% +232k m2 City Centre City Centre average acquisition added through West CBD yield in 2019–2020 IMMOFINANZ acquisition Upper Jerozolimskie in 2022 Corridor Strong green >€800 m certifications acquired in 2019–2020 Warsaw Office portfolio acquisi
Slide 23: Prague office
Prague office Prague office net rental income (€ million) 36 32 93.8% Occupancy #1 office Q1-Q3 2021 Q1-Q3 2022 landlord in Prague Prague office tenants by type (according to headline rent, as of H1 2022) Telecom Consumer Goods 11% Financial Services/Banking/Insurance IT 12% 10% Manufacturing Energy
Slide 24: Retail segment
Retail segment #1 CPIPG is the leading retail landlord in the Czech Republic and has other CEE platforms. The Retail landlord portfolio in the Czech Republic is mainly focused on dominant regional shopping centres and in the Czech retail parks. Our assets and tenants are part of people’s daily lives
Slide 25: CPIPG's defensive retail portfolio was resilient to COVID-19
CPIPG’s defensive retail portfolio was resilient to COVID-19 CZ shopping centre density below WE, high street very limited Shopping centre GLA (m2 ⁄ 1,000 inhabitants) CPIPG geographies US*** & Western Europe** CPIPG % of retail assets in each country* 600 2% 3% 2% 7% 2% 464 380 375 281 328 229 227
Slide 26: Residential segment
Residential segment Residential property portfolio by country Czech Republic France Globalworth Germany Austria = cca 500 units Liberec United Kingdom Italy Ústí nad Labem €892 m 40% €12 m 1% Prague €62 m 3% Ostrava €64 m 3% €102 m 5% €247 m 11% €847 m 38% Czech portfolio occupancy improvement Czech
Slide 27: Hotels & Resorts segment
Hotels & Resorts segment CPIPG owns and operates hotels primarily located in the CEE region. Diversified We benefit from local knowledge, scale, and the ability to control costs. portfolio operated by The Group’s hotel business, CPI Hotels, is one of the largest hotel owners in central Europe and op
Slide 28: Complementary assets segment
Complementary assets segment • The Group’s Complementary Assets segment consists primarily of landbank in the Czech Republic, Berlin and Italy, as well as selective development projects and smaller portfolios that complement to CPIPG’s overall strategy. • The Group’s landbank is a strategic asset th
Slide 29: Financial policy & debt profile
Financial policy & debt profile Aqua Höfe, Lobeckstrasse 30-35, Berlin, Germany CPI Property Group | Investor Presentation | December 2022 29 photo: © CHL
Slide 30: Absolute commitment to financial policy
Absolute commitment to financial policy Proactive, resilient and well-prepared • Target Net ICR of 4× or above in the near-to-medium term Key pillars of CPIPG’s financial policy • Conservative shareholder distributions sized at 65% of FFO I • Strong preference for unsecured debt / unencumbered asset
Slide 31: Financial metrics
Financial metrics Split of secured versus unsecured debt Composition of unencumbered asset portfolio (CPIPG standalone) Income generating – CZ Secured debt Unsecured debt Income generating – DE €1,737 m €2,337 m Income generating – PL 38% Income generating – IT €579 m Total Income generating – HU ex
Slide 32: CPIPG has long-dated debt maturities and a proactive approach
CPIPG has long-dated debt maturities and a proactive approach (as at 30 September 2022) Strong liquidity (€ million) Cash as at 30 September 2022 1,081 Weighted 4.9 years average 4.8 years 5.2 years (+) RCF - undrawn amount 915 2020 2021 Q3 2022 debt maturities (excl. bridge loan) (+) Other undrawn
Slide 33: CPIPG's approach to ESG and sustainability
CPIPG’s approach to ESG and sustainability VIVO! Lublin Shopping Centre, Poland CPI Property Group | Investor Presentation | December 2022 33
Slide 34: CPIPG is dedicated to high sustainability standards
CPIPG is dedicated to high sustainability standards CPIPG has over 4,300 employees and fosters an CPIPG follows the X Principles of Governance published CPIPG’s Code of Ethics, established in 2019, together with inclusive and diverse culture. In a 2021 survey, 97% by the Luxembourg Stock Exchange an
Slide 35: CPIPG's ESG journey
CPIPG’s CPIPG combines a Sustainability-Linked Bond and Green Bond Framework into a Environmental targets validated by the ESG journey Sustainability Finance Framework Science-Based Target initiative 2022 2022 CPIPG joins the Polish Green Building Council CPIPG revises its environmental strategy 202
Slide 36: Significant strides made in ESG
Significant strides made in ESG Ambitious environmental strategy and targets Strong and improving ESG ratings Top 5% of issuers globally -10% -32.4% Water intensity by 2030 GHG intensity by 2030 Low Risk: 12.8 / 100 (2021) from 15.2 / 100 (2020) “The company is at low risk of experiencing material f
Slide 37: Appendix
Appendix Eurocentrum, Warsaw, Poland CPI Property Group | Investor Presentation | December 2022 37
Slide 38: Market update – Q3 2022
Market update – Q3 2022 Real estate markets recorded sound take-up levels, declining new supply and stable prices Berlin Office market • The Berlin office market continues to see high occupier demand in the third quarter of 2022. Total take-up volume year-to-date was strong with 647,600 m², which is
Slide 39: Market update – Q3 2022
Market update – Q3 2022 Warsaw letting activity is strong due to solid demand while supply is slowing down Warsaw Office market • At the end of September 2022, Warsaw’s total modern office stock amounted to 6.34 million m². The total new supply delivered to the Warsaw office market in the first nine
Slide 40: Czech market update – Q3 2022
Czech market update – Q3 2022 Retail sales are above 2019 levels with limited new supply on the market Czech Retail market • The Czech retail market had a promising first nine months in 2022, with remaining protective measures lifted in April this year. Turnover continued to rise after reaching 2019
Slide 41: Key office properties in Berlin
Key office properties in Berlin Pankstraße 8–10 PP value: €81 million GLA: 41,000 m² Wolfener Straße 32–34 Voltastraße 5 PP value: €106 million PP value: €124 million GLA: 75,000 m² GLA: 33,000 m² Gustav-Meyer-Allee 25 PP value: €158 million GLA: 75,000 m² Reuchlinstraße 10–11 Plauener Straße 163–16
Slide 42: Key office properties in Prague
Key office properties in Prague Bubenská 1 myhive Palmovka PP value: €91 million PP value: €85 million GLA: 22,000 m² Hradčanská GLA: 26,000 m² Office Centre Libeň PP value: €25 million GLA: 12,000 m² Na Příkopě 14 PP value: €106 million GLA: 17,000 m² Holešovice Hradčany Žižkov Meteor Centre Office
Slide 43: Key office properties in Warsaw
Key office properties in Warsaw myhive Warsaw Spire Green Corner A PP value: €404 million PP value: €53 million GLA: 72,000 m² GLA: 15,000 m² Atrium Centrum Atrium Plaza Concept Tower PP value: €57 million PP value: €47 million PP value: €26 million GLA: 22,000 m² GLA: 15,000 m² GLA: 9,000 m² Euroce
Slide 44: Retail footprint in the Czech Republic
Retail footprint in the Czech Republic Shopping Centres Retail parks Stand-alone supermarkets, hypermarkets and hobby markets Nisa City: Liberec Olympia Mladá Boleslav PP value: €100 million City: Mladá Boleslav GLA: 49,000 m² PP value: €56 million GLA: 20,000 m² Olympia Teplice City: Teplice PP val
Slide 45: Group retail assets
Group retail assets Total retail GLA in each country (m2) Poland 254,000 m2 Ogrody City: Elbląg PP value: €112 million GLA: 42,000 m² VIVO! Bratislava Germany City: Bratislava 45,000 m2 PP value: €104 million GLA: 36,000 m² Czech Republic 672,000 m2 Slovakia 254,000 m2 Pólus STOP SHOP Stadlau City:
Slide 46: Key Hotel & Resort properties
Key Hotel & Resort properties Number of hotel rooms in each country Mamaison Residence Mamaison Hotel Downtown Prague Le Regina Prague, CZ Poland Warsaw, PL PP value: €47 million 107 PP value: €23 million Hotel rooms: 173 Hotel rooms: 61 Clarion Congress Hotel Prague Czech Republic Prague, CZ 4,476*
Slide 47: Landbank in the Czech Republic
Landbank in the Czech Republic In the Czech Republic, landbank holdings amount to €969 million. The majority of the Czech landbank (€575 million) is situated in Prague, mainly relating to Bubny, a 201,000m² area strategically located close to the CBD and where we completed the redevelopment of flags
Slide 48: Landbank & development in Berlin
Landbank & development in Berlin In Berlin, the Group owns landbank currently valued at €162 million, located Schönefeld land plot in attractive areas. This provides opportunities for low-risk extensions and developments. CPIPG’s subsidiary GSG has completed several office developments in Berlin in
Slide 49: Landbank & development in Italy
Landbank & development in Italy In Italy, the Group holds landbank currently valued at €652 million. The majority of landbank in Italy is primarily located in the periphery of Rome and strategically focused on holistic mixed-use (residential and commercial) development with ample green public commun
Slide 50: Disclaimer
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 purpose. Failure to comply with this restriction may
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