CTP Announces Strong Q1 Results and Pipeline Projects
CTP gets off to a strong start in 2015. In Q1 of this year, CTP commenced construction on a secured pipeline of approximately 300,000 m2 of A-class industrial property, 70% of which will be delivered by July 2015. CTP has upwardly revised its business plan to achieve 5 million m2 of Total Lettable Area by 2020 ahead of additional expected growth.
Growth was not only confined to CTP’s home market, the Czech Republic. CTP added nine business parks to its region-wide CTPark Network in 2014 and further construction projects are currently underway in two central European countries scheduled for completion in 2015.
Preliminary 2014 financial results are expected to show over 12% growth in gross rental income to approximately EUR 135 million. Last year, CTP signed new loan agreements totalling EUR 717 million. This represents financing agreements for approximately 63% of the company’s portfolio, one-third of which was concluded in Q4 alone. In 2015, CTP has already signed loan agreements totalling EUR 140 million. An additional EUR 220 million is expected to be agreed in Q2.
“CTP’s growth is driven by the industrial sector. Our industrial clients continue to bring more activities to central Europe, and also strong performance in the e-commerce industry is a factor. CEE markets like the Czech Republic are proven staging grounds for significant, added-value investments in core industries such as automotive, high-tech manufacturing, logistics, and cutting-edge R&D. CTP got off to a great start in 2015, and we are well on target to reach our business goals,” stated Remon Vos, CTP CEO
“Looking to 2015, we maintain a positive outlook regarding further yield compression, which we expect will increase the value of our properties by 5% to 8%. We expect gross rental income in 2015 to reach EUR 150 million,” stated Radek Zeman, CTP CFO