Cpi Property Group S.a. · XETR:O5G
Cpi Property — Investor Presentation (June 2022)
46 slides from Cpi Property's investor presentation, June 2022
Slide 1: Investor Presentation June 2022
Investor Presentation June 2022 photo: © GSG Berlin
Slide 2: Group overview
Group overview Active asset manager Property portfolio by segment (as at 31 March 2022) Local Office €2,493 m €18.1 bn expertise 14% Retail property and teams €894 m 5% portfolio Residential €1,420 m Portfolio Hotels & Resorts 8% value €18.1 billion 49% Diversified portfolio Complementary Assets off
Slide 3: Key figures
Key TOTAL ASSETS PROPERTY PORTFOLIO NET LTV figures (as of Q1 2022) €20.9 bn +45% versus end of 2021 €18.1 bn +38% versus end of 2021 41.8% +6.1 p.p. versus end of 2021 NET RENTAL INCOME CONSOLIDATED ADJUSTED EBITDA FUNDS FROM OPERATIONS (FFO) €110 m +24% versus Q1 2021 €119 m +31% versus Q1 2021 €8
Slide 4: 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 Hotels & Resorts Gross rental income Net rental income %% YoY NRI change YoY change €18.1 bn 402 Retail Complementary Assets +13% 2,493 356
Slide 5: Business segments
Business segments The Group operates in five segments: Office, Retail, Residential, Hotels & Resorts and Complementary Assets. Office In each segment, we have market- • Leading landlord in Berlin, Prague and Warsaw 49% leading platforms that benefit from scale, active local asset management • Strate
Slide 6: Primary locations
Primary locations 1:20 Berlin 80% 1:05 1:20 Warsaw of the Group’s property POLAND €2,618 m portfolio is located in Central Europe 3:30 GERMANY 1:10 €4,003 m Investments in Italy, Romania, Prague the UK and other 1:10 locations CZECH 2:15 REPUBLIC €5,090 m 0:50 Brno SLOVAKIA 1:30 €507 m 1:45 Vienna B
Slide 7: Business update
Business update Bubenská 1, Prague, Czech Republic CPI Property Group | Investor Presentation | June 2022 7
Slide 8: Acquisition of IMMOFINANZ
Acquisition of IMMOFINANZ CPIPG is exercising control at IMMOFINANZ and started to implement first operational measures • On 30 May 2022, CPIPG successfully concluded its offer for IMMOFINANZ with an ownership stake of 77% purchased at an average discount to NRV of c. 24%. • Clear control over the s
Slide 9: CPIPG, IMMOFINANZ and S IMMO: Key figures
CPIPG, IMMOFINANZ and S IMMO: Key figures CPIPG’s current shareholding in Immofinanz and S IMMO • On 14 April 2022, CPIPG requested the Supervisory and Executive Board of S IMMO to resolve on the abolishment of the 15% voting cap, an unusual feature in its articles of association, that we believe ha
Slide 10: Performance update – Q1 2022
Performance update – Q1 2022 Segment Q1 2022 leasing highlights Comments Berlin office • New rents 46% higher than previous rents New leases, extensions and prolongations signed across • Leasing activity and rent reversion unchanged to previous years 21,740 m² of space (+2.3% vs Q1 2021) • Stable oc
Slide 11: Performance update – Q1 2022
Performance update – Q1 2022 Segment Comments Retail • All COVID restrictions have been removed since 14th March • Shopping centre turnover and footfall up by 224% and 83% YoY respectively, which is 4.1% Czech Republic above Q1 2019 turnover while footfall remains -24% below pre-COVID levels & Slova
Slide 12: Supportive fundamentals for a stable valuation outlook
Supportive fundamentals for a stable valuation outlook Valuations are assessed regularly by independent, reputable appraisers utilising various methodologies • Empirical evidence shows a high positive correlation between rents and inflation while total returns were positive in rising inflation perio
Slide 13: Update on financing activities
Update on financing activities Successful debt issuance with various investor types following the IMMOFINANZ and S IMMO announcement €700 million sustainability linked bonds • Innovative sustainability linked € senior notes issuance with a tenor of 8 years and an annual coupon of 1.75% • The sustain
Slide 14: Portfolio overview
Portfolio overview Zlatý Anděl, Prague, Czech Republic CPI Property Group | Investor Presentation | June 2022 14
Slide 15: Office segment
Office segment CPIPG is a leading office landlord in Europe, Leading • A leading landlord in Berlin with robust platforms across several core markets. The portfolio is centred around our market leading positions in Berlin, Prague and Warsaw. positions • #1 office landlord in Prague Office net rental
Slide 16: Berlin office
Berlin office • A leading commercial real estate platform 46 in Berlin Berlin office net rental income (€ million) Assets across Berlin 21 22 • Portfolio uniquely suited to creative and IT sectors 92.2% Occupancy • About 1,800 tenants Q1 2021 Q1 2022 8.2% • Strong market with 2.7% overall vacancy Lf
Slide 17: 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 2.6% inQ1 2022 vs Q4 2021 • Savills analysis suggests that average rents for the portfolio could potential
Slide 18: Warsaw office
Warsaw office Modern €1.8 bn and green Warsaw office Warsaw office net rental income (€ million) portfolio portfolio 17 * 14 #1 office landlord in Warsaw Q1 2021 Q1 2022 * Net rental income includes 1 month contribution from IMMOFINANZ only Warsaw tenants by type (according to headline rent) Financi
Slide 19: CPIPG's office platform in Warsaw is unmatched
CPIPG’s office platform in Warsaw is unmatched 6.5% 8% City Centre West City Centre average acquisition valuation growth CBD yield in 2019–2020 since acquisition Upper Jerozolimskie Corridor Strong green >€800 m certifications acquired in 2019–2020 Warsaw Office portfolio acquisition timeline Green
Slide 20: Prague office
Prague office Prague office net rental income (€ million) 11 * 10 95.5% Occupancy #1 office Q1 2021 Q1 2022 landlord in * Net rental income includes 1 month contribution from Prague IMMOFINANZ only Prague office tenants by type (according to headline rent) Telecom Retail/Wholesale 11% 9% Financial S
Slide 21: 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 22: 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* 2,690 3% 3% 2% 9% 2% 464 380 375 281 328 229 22
Slide 23: Residential segment
Residential segment Residential property portfolio by country Czech Republic France S IMMO = cca 500 units United Kingdom Italy Globalworth Liberec €13 m Ústí nad Labem 1% €243 m 17% Prague €59 m Ostrava 4% Total €102 €1,420 million 7%m €749 m 53% €254 m 18% Czech portfolio occupancy improvement Cze
Slide 24: 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 tightly. portfolio operated by The Group’s hotel business, CPI Hotels, is one of the largest hotel owners in central Europ
Slide 25: 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 26: Financial policy & debt profile
Financial policy & debt profile Aqua Höfe, Lobeckstrasse 30-35, Berlin, Germany CPI Property Group | Investor Presentation | June 2022 26 photo: © CHL
Slide 27: Financial policy & credit metrics
Financial policy & credit metrics Net LTV Absolute commitment to strong investment-grade ratings Our financial policy was introduced in April 2018 Focused on achieving “high BBB” ratings in coming years 1 44.9% 41.8% Rating Max LTV: 45% due to acquisitions 40.7% Target LTV: 40% or below commitment W
Slide 28: Financial metrics
Financial metrics Split of secured versus unsecured debt Composition of unencumbered asset portfolio (CPIPG standalone) Secured debt Income generating – CZ €950 m Unsecured debt Income generating – DE 11% 34% €2,534 m Income generating – PL €618 m 28% 7% Income generating – IT €463 m Total 5% Income
Slide 29: Frequent international debt capital markets issuer
Frequent international debt capital markets issuer Pro-forma debt maturity profile as of 31 March 2022 (€ million) Well-established issuer on the capital markets (CPIPG as Issuer) Outstanding € % Coupon Maturity Issue Date Currency amount equivalent Format swapped (%) Date (million) (million) to € W
Slide 30: CPIPG's approach to ESG and sustainability
CPIPG’s approach to ESG and sustainability GSG Solar PV, Berlin, Germany CPI Property Group | Investor Presentation | June 2022 30 photo: © Thomas Rosenthal
Slide 31: CPIPG is dedicated to high sustainability standards
CPIPG is dedicated to high sustainability standards CPIPG has over 3,400 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 32: CPIPG's ESG journey
CPIPG’s ESG journey CPIPG combines a Sustainability-Linked Bond and Green Bond Framework into a Sustainability Finance Framework 2022 CPIPG revises its environmental strategy Environmental Targets submitted for validation by Science-Based CPIPG joins the Polish Green Building Council Target Initiati
Slide 33: 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 -30% -10% GHG intensity by 2030 Water intensity by 2030 Low Risk: 12.8 / 100 (2021) from 15.2 / 100 (2020) “The company is at low risk of experiencing material fin
Slide 34: Appendix
Appendix Eurocentrum, Warsaw, Poland CPI Property Group | Investor Presentation | June 2022 34
Slide 35: Market update – 2021 & Q1 2022
Market update – 2021 & Q1 2022 Real estate markets recorded sound take-up levels and private transaction volumes and prices remain supportive Berlin Office market • The Berlin office market kept its dynamic development in 2021. Total take-up volume for the year was 870,800 m², representing a 17% inc
Slide 36: Market update – 2021 & Q1 2022
Market update – 2021 & Q1 2022 Warsaw letting activity is strong due to increasing demand while supply is slowing down Warsaw Office market • At the end of 2021, Warsaw’s total modern office stock amounted to 6.2 million m². The total new supply delivered to the Warsaw office market in 2021 was 325,
Slide 37: Czech market update – 2021 & Q1 2022
Czech market update – 2021 & Q1 2022 Retail sales are back to 2019 levels with virtually no new supply on the market Czech Retail market • For the full year 2021, footfall was almost 30% below that of 2019, and turnover was down approximately 20%. However, when comparing only the period without lock
Slide 38: 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 39: Key office properties in Prague
Key office properties in Prague Bubenská 1 Tokovo PP value: €91 million PP value: €39 million GLA: 22,000 m² Hradčanská GLA: 22,000 m² Office Centre Libeň PP value: €25 million GLA: 12,000 m² Holešovice Hradčany Žižkov Quadrio Meteor Centre PP value: €125 million Office Park GLA: 17,000 m² PP value:
Slide 40: CPIPG's office footprint in Warsaw
CPIPG’s office footprint in Warsaw Green Corner A Moniuszki 1A PP value: €53 million PP value: €35 million Atrium Centrum Atrium Plaza GLA: 15,000 m² GLA: 10,000 m² PP value: €56 million PP value: €47 million GLA: 18,000 m² GLA: 15,000 m² Concept Tower PP value: €26 million GLA: 9,000 m² Eurocentrum
Slide 41: CPIPG's shopping centre footprint in the Czech Republic
CPIPG’s shopping centre footprint in the Czech Republic 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 value: €62 million Futurum Hradec Králové GLA: 29,000 m² City: Hradec Krá
Slide 42: 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: €31 million 107 PP value: €15 million Hotel rooms: 173 Hotel rooms: 61 Clarion Congress Hotel Prague Czech Republic Prague, CZ 4,476*
Slide 43: Landbank in the Czech Republic
Landbank in the Czech Republic In the Czech Republic, landbank holdings amount to more than €992 million. The majority of the Czech landbank (more than €600 million) is situated in Prague, mainly relating to Bubny, a 201,000m² area strategically located close to the CBD and where we completed the re
Slide 44: Landbank & development in Berlin
COMPLEMENTARY ASSETS SEGMENT Landbank & development in Berlin In Berlin, the Group owns landbank currently valued at €157 million, located in attractive Schönefeld land plot areas. This provides opportunities for low-risk extensions and developments. CPIPG’s subsidiary GSG has completed several offi
Slide 45: Landbank & development in Italy
COMPLEMENTARY ASSETS SEGMENT Landbank & development in Italy In Italy, the Group holds landbank currently valued at €354 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 w
Slide 46: 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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