Of equal importance, CTP describes the impact of the company’s activities in the communities in which it does business, stating that at year-end more than 47,000 people were employed by clients within the CTPark Network and the company’s secondary office, retail and hotel developments as of December 31st 2015; a 27% increase over the previous period.
CTP’s portfolio of properties grew to 3.24 million m² of premium lettable space in seven CEE markets, a 37% growth over the year, on track to reach the company’s goal of 5 million m² by the end of 2018. This growth was driven primarily by acquisitions, which made up some 730,000 m², and by new construction, which accounted for approximately 200,000 m².
CTP CEO, Remon Vos states:
“As a leading developer in the region, CTP has a responsibility, and desire, to be a force for positive change. Our business model revolves around identifying the right opportunities, adding value throughout the client lifecycle, and reinvesting into our platform and portfolio. More than 60% of new business comes from existing clients, making it critically important for us to maintain and develop strong partnerships. Our numbers from 2015 show us that our strategy is working and that clients are happy to move with us to new locations across our expanding network.”
2015 was a year characterised by expansion. CTP moved strongly into Romania and Slovakia, taking advantage of low interest rates, increasing market demand, and movements in the market. These activities resulted in a 23% revenue growth over the previous year to EUR 165 million. Industrial property remains the core business, with 73.5% of total revenue share.
CTP financed new developments and acquisitions together with existing and new financing partners, which increased the Total Asset Value by nearly 31% to EUR 3.06 billion, while maintaining a stable Loan to Value ratio of 53%. Despite a much larger balance sheet and a significant increase in loan value, CTP was able to reduce overall financing costs to a level of 2.7% in 2015.
Radek Zeman, CTP CFO, states:
“During the year, we continued to invest into existing properties and into improvements of newly acquired properties to bring them up to CTP standards to ensure the long term-value of our properties. EPRA profits before tax improved significantly to EUR 83 million—nearly 34% growth year-on-year—demonstrating the stability of our business model..“
“All of this is made possible thanks to CTP’s in-house team of professionals, covering legal, finance, construction and sales, called the CTP Platform. As of December 31st, CTP headcount was 167 professionals across the region, a 10% growth on the previous period. Looking forward to 2016, we anticipate a similar level of growth, albeit less focused on acquisitions. Our construction pipeline is healthy and we are expanding our team to meet the growing demand, especially in new markets.”