Cpi Property Group S.a. · XETR:O5G
Cpi Property — Investor Presentation (September 2022)
49 slides from Cpi Property's investor presentation, September 2022
Slide 1: Investor Presentation September 2022
Investor Presentation September 2022 photo: © GSG Berlin
Slide 2: Highlights for H1 2022
Highlights for A €20 billion+ European landlord • CPIPG’s platform has been transformed through the acquisitions and consolidation of IMMOFINANZ and S IMMO H1 2022 • • Significant scale achieved: €865 million of contracted rent as of 30 June 2022 Strong performance of our assets and local teams with
Slide 3: Key figures
Key TOTAL ASSETS PROPERTY PORTFOLIO NET LTV €23.7 bn €20.9 bn 44.8% figures vs. €14.4 billion at year-end 2021 vs. €13.1 billion at year-end 2021 Upper end of financial policy range NET RENTAL INCOME CONSOLIDATED ADJUSTED EBITDA FUNDS FROM OPERATIONS (FFO) €263 m €261 m €171 m • Significant increase
Slide 4: Group overview
Group overview Active asset manager Property portfolio by segment (as at 30 June 2022) Local Office €2,656 m 13% €20.9 bn €12 m 4% €11 m 4% expertise Retail property and teams €1,100 m Residential 5% portfolio Hotels & Resorts €2,222 m Portfolio Complementary Assets 11% value €20.9 billion €113 m 41
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 attra
Slide 6: 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 48% leading platforms that benefit from • Strategic investments in IMMOFINANZ, of por
Slide 7: Primary locations
Primary locations 1:20 Berlin 79% 1:05 1:20 Warsaw of the Group’s property POLAND €2,649 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 €5,019 m €5,306 m 0:50 Brno SLOVAKIA 1:30 €637 m 1:45 Vienna B
Slide 8: 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 Gross rental income Net rental income % YoY change €20.9 bn Retail 2,656 402 +13% Residential 356 363 338 +7% 1,100 +12% Hotels & Resorts +
Slide 9: Business update
Business update Bubenská 1, Prague, Czech Republic CPI Property Group | Investor Presentation | September 2022 9
Slide 10: Performance update CPIPG – H1 2022
Performance update CPIPG – H1 2022 Segment H1 2022 leasing highlights Comments Berlin office • New rents 45% higher than previous rents; lfl rents up 10.6% New leases, extensions and prolongations signed across • Leasing activity and rent reversion unchanged to previous years 53,500 m² of space (31,
Slide 11: Performance update CPIPG – H1 2022
Performance update CPIPG – H1 2022 Segment Comments Retail • All COVID restrictions have been removed since 14th March Czech Republic • Shopping centre turnover 12% above H1 2019 while footfall remains c. 20% below & Slovakia • Over 53,000 m² in leases signed with several new leases signed for 5 yea
Slide 12: 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 CPIPG** IMMOFINANZ S IMMO Average cost of debt* Like
Slide 13: Supportive fundamentals for a stable valuation outlook
Supportive fundamentals for a stable valuation outlook Benign valuation environment for H1; higher rents should be supportive for valuations at year-end • Empirical evidence shows a high positive correlation between rents and inflation while total returns were positive in rising inflation periods. •
Slide 14: 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 15: Portfolio overview
Portfolio overview Zlatý Anděl, Prague, Czech Republic CPI Property Group | Investor Presentation | September 2022 15
Slide 16: 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) 27% 7.7 0.9% 5.3 7.6 0.9% 6.8 22% 7.6 0.9% 3.5 7.3 0.8% 2.8 15% 15% 14% 7.0 0.8% 7.3 6.7 0.8% 3.5 6.1 0.7% 2.0 6
Slide 17: 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 18: Berlin office
Berlin office • A leading commercial real estate platform 40 in Berlin Berlin office net rental income (€ million) Assets across Berlin 41 44 • Portfolio uniquely suited to creative and IT sectors 91.8% Occupancy • About 1,700 tenants H1 2021 H1 2022 10.6% • Strong market with 2.8% overall vacancy L
Slide 19: 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 3.9% in H1 2022 vs Q4 2021 • Savills analysis suggests that average rents for the portfolio could potentia
Slide 20: Warsaw office
Warsaw office Modern €1.8 bn and green Warsaw office Warsaw office net rental income (€ million) portfolio portfolio 39 #1 office 28 landlord in Warsaw H1 2021 H1 2022 Warsaw tenants by type (according to headline rent) Financial Services/Banking/Insurance 22% IT 13% Professional Services Public/Mun
Slide 21: 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 22: Prague office
Prague office Prague office net rental income (€ million) 24 22 95.4% Occupancy #1 office H1 2021 H1 2022 landlord in Prague Prague office tenants by type (according to headline rent) Telecom Consumer Goods 11% Financial Services/Banking/Insurance IT 12% 10% Manufacturing Energy Advertisement/PR/Mar
Slide 23: 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 24: 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 3% 3% 2% 9% 2% 464 380 375 281 328 229 227
Slide 25: 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 €883 m 40% €12 m 1% Prague €60 m 3% Ostrava €64 m 3% €102 m 5% €252 m 11% €848 m 38% Czech portfolio occupancy improvement Czech
Slide 26: 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 27: 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 28: Financial policy & debt profile
Financial policy & debt profile Aqua Höfe, Lobeckstrasse 30-35, Berlin, Germany CPI Property Group | Investor Presentation | September 2022 28 photo: © CHL
Slide 29: 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 30: Financial metrics
Financial metrics Split of secured versus unsecured debt Composition of unencumbered asset portfolio (CPIPG standalone) Secured debt Unsecured debt Income generating – CZ €1,352 m Income generating – DE €2,702 m €570 m 38% Income generating – PL €507 m Income generating – IT Total Total external deb
Slide 31: CPIPG has long-dated debt maturities and a proactive approach
CPIPG has long-dated debt maturities and a proactive approach (as at 30 June 2022) Strong liquidity (€ million) Cash as at 30 June 2022 1,557 Weighted 5.1 years average 4.8 years 5.2 years (+) RCF – undrawn amount 915 2020 2021 H1 2022 debt maturities (excl. bridge loan) (+) Other undrawn lines 19 T
Slide 32: CPIPG's approach to ESG and sustainability
CPIPG’s approach to ESG and sustainability VIVO! Lublin Shopping Centre, Poland CPI Property Group | Investor Presentation | September 2022 32
Slide 33: 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 34: 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 35: 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 36: Appendix
Appendix Eurocentrum, Warsaw, Poland CPI Property Group | Investor Presentation | September 2022 36
Slide 37: Market update – H1 2022
Market update – H1 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 first half of 2022. Total take-up volume for the first six months was strong with 377,100 m²,
Slide 38: Market update – H1 2022
Market update – H1 2022 Warsaw letting activity is strong due to increasing demand while supply is slowing down Warsaw Office market • At the end of June 2022, Warsaw’s total modern office stock amounted to 6.3 million m². The total new supply delivered to the Warsaw office market in the first six m
Slide 39: Czech market update – H1 2022
Czech market update – H1 2022 Retail sales are back to 2019 levels with virtually no new supply on the market Czech Retail market • The Czech retail market had a promising first six months in 2022, with remaining protective measures lifted in April this year. Turnover continued to rise after reachin
Slide 40: 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 41: Key office properties in Prague
Key office properties in Prague Bubenská 1 myhive Palmovka PP value: €90 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 42: 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: €56 million PP value: €47 million PP value: €26 million GLA: 18,000 m² GLA: 15,000 m² GLA: 9,000 m² Euroce
Slide 43: 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 44: 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 44,000 m2 PP value: €104 million GLA: 36,000 m² Czech Republic 672,000 m2 Slovakia 254,000 m2 Pólus STOP SHOP Stadlau City:
Slide 45: Key Hotel & Resort properties
HOTELS & RESORTS SEGMENT 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 R
Slide 46: Landbank in the Czech Republic
COMPLEMENTARY ASSETS SEGMENT Landbank in the Czech Republic In the Czech Republic, landbank holdings amount to €952 million. The majority of the Czech landbank (€569 million) is situated in Prague, mainly relating to Bubny, a 201,000m² area strategically located close to the CBD and where we complet
Slide 47: Landbank & development in Berlin
Landbank & development in Berlin In Berlin, the Group owns landbank currently valued at €181 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 48: Landbank & development in Italy
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 with ample green public commun
Slide 49: 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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