CTP REPORTS STRONG HALF YEAR RESULTS, 2021
Utrecht, 11 August 2021 – CTP N.V., CEE’s largest logistics property owner and developer listed on Euronext Amsterdam (ticker symbol: CTPNV), today announces its results for the first half year of 2021. CTP reports strong half year results and is well on track to further accelerate its development, raising its GLA growth target to beyond 7.7 million m² by year-end 2021, up from 7.5 million m² as guidance at its IPO end of March 2021.
- On top of enjoying strong tailwinds for the logistics real estate sector, CTP further increased its leading market share by capturing nearly a third of all new leases to hold 25% market share (in terms of GLA) by the end of the first half 2021 in Czech Republic, Romania, Hungary and Slovakia.
- Solid increase in income-producing portfolio to 6.6 million m². Net rental income in the first half year increased by 17% to €160.3 million from €136.5 million in the first half of 2020.
- Net valuation result from development activities increased to €146.0 million. No revaluation took place on CTP’s income-producing portfolio during H1. Company specific adjusted EPRA Earnings increased to €0.25 per share.
- Interim dividend 2021 of €0.17 per share; pay-out ratio of 75%.
- Independent ESG rating by Sustainalytics Inc., ranking CTP in top 1.5% of companies worldwide; carbon neutrality of operations being verified by external agency.
- Total land bank increased to 14.7 million m² at the end of Q2 from 13.0 million m² at the end of Q1 2021, thereby extending potential for profitable development pipeline.
- Yield-on-Cost increased to 11.8% compared to 11.5% in the first quarter 2021, on a development pipeline of 1.2 million m², despite increased construction costs and shortages in building materials.
- Value of Owned Assets stands at €6.4 billion at the end of the second quarter 2021, an increase of 5.3% compared to €6.1 billion as of 31 March 2021.
- Finalised €1 billion Green Bond issue (two tranches) to refinance banking facility. Cost of Debt decreased to 1.22% as of 30 June 2021 from 1.6% as of 31 March 2021.
Outlook FY 2021
- IPO proceeds to be further used to accelerate land bank acquisition, fund profitable pipeline development, and acquire income-producing properties at attractive conditions.
- GLA target revised upwards to over 7.7 million m² for year-end 2021 (including 390,000 m2 assets under management for Deka).
- Outlook Company specific adjusted EPRA EPS for full year 2021 expected to be around €0.50 (2020: €0.44).
|H1 2021||H1 2020||Q2 2021||Q1 2021|
|Net rental income (EUR mil)||€ 160.3||€ 136.5||€ 82.2||€ 78.1|
|Profit for the period (EUR mil)||€ 188.3||€ 105.2||€ 89.8||€ 98.5|
|EPRA net tangible assets per share||€ 9.58||€ 7.89||€ 9.58||€ 9.35|
|EPRA ‘topped-up’ net initial yield||6.1%||6.1%||6.1%||6.1%|
|Company specific adjusted EPRA earnings per share||€ 0.25||€ 0.23||€ 0.13||€ 0.12|
Annualised rental income in the second quarter increased to €380 million from €366 million as of 31 March 2021, a quarter-on-quarter increase of 4%. Our total leasing activity increased to 613,000 m² in the first half of 2021, up 30% from the first half of 2020. The pre-let rate for properties under construction and delivery in 2021 increased to 73%, compared to 70% on 31 March 2021.
CTP’s Yield-on-Cost for these developments stayed strong at 11.8% (Q1 2021: 11.5%), well above the target of >10%. The occupancy rate increased to 95% from 94% in Q1 2020, with a strong retention rate and WAULT at 6.5 year per 30 June 2021, up from 6.4 year per 31 March 2021. Company specific Adjusted EPRA Earnings increased by 8.7% Y-o-Y to €0.25 per share.
CTP continues to gain market share in Czech Republic, Romania, Hungary and Slovakia, as we captured 30.8% of all take up in the second quarter of 2021. By doing so we continue to increase our leading market share in GLA terms, now holding approximately 25% of the total market share in these markets.4 The outlook for the CEE-region remains very positive, as we see the logistics sector enjoying strong tailwinds and European manufacturers continue to shift light-industrial activities to Eastern Europe, benefiting from its low-cost production opportunities.
In the second quarter, we have grown to 444 FTE’s from 422 in the last quarter. In September 2021, CTP will open its new offices in Amsterdam, to where it will move its statutory seat, and will continue to expand with new hires for senior positions at group level.
We have accelerated the acquisition of new land and extended our total landbank to 14.7 million m² per 30 June 2021 (9.6 million m² owned land bank and 5.1 million square metres under exclusive option), from 13 million m² in the first quarter of 2021 (9.3 million m² owned land bank and 3.7 million square metres under exclusive option). The growth acceleration underscores our ability to secure attractive land transactions across markets. On the basis of a build ratio of 45%, our current landbank offers a development potential beyond 6.6 million m² GLA, or more than doubling our existing GLA. In the second quarter of 2021 we announced two successful new landbank acquisitions in Bulgaria and began construction on a 18,600 m² new land plot near Warsaw, Poland. We are expanding our position as a pan-European park maker, with the construction of a 23,000 m² facility near Rotterdam the Netherlands, the acquisition of 580,000 m² land in the Dutch logistics hub Waalwijk, and landbank acquisitions around Vienna, Austria, totalling 360,000 m².
Balance sheet and liquidity
In June, we issued an additional €1 billion bond (two tranches, €500 million each), from which we prepaid our €1.4 billion Czech portfolio bank loans. With this, we concluded the migration to the largely unsecured platform, within nine months from our debut issuance. The new bond issues have resulted in a reduction of Cost of Debt to 1.22% at quarter-end, down from 1.6% as of 31 March 2021. CTP’s liquidity position improved further by extending our committed Revolving Credit Facility (RCF) from €100 million to €400 million. The IPO has reinforced our strong balance sheet, enabling us to accelerate new acquisitions at attractive conditions and to reduce our secured debt position. Our total debt was €3.0 billion as of 30 June 2021, of which 83% is unsecured as of 30 June 2021. Our Net Loan-to-Value increased slightly to 40% (38% as of 31 March 2021), and the Interest Cover Ratio stands at 5.1x.
CTP is on track to make its business operations net carbon neutral by the end of 2021 and to positively impact the communities we operate in.
These efforts are well recognized by the investor community, and 86% of CTP’s total bond issues have been placed with investors that apply green criteria in their investment decisions. In May 2021, Sustainalytics Inc., an independent global provider of ESG and corporate governance research and ratings, conducted an assessment of CTP’s ESG risk score and ranked CTP among the top 1.5% of companies globally assigning an 11.0 ESG “Low Risk” Score.
Furthermore, CTP has engaged an independent agency to validate CTP’s carbon footprint and offsetting potential of both CTP’s forest preservation efforts and its installed solar parks in the CEE region. CTP owns and manages 5.6 million m² of forest, in line with our commitment to maintain a 1:1 ratio to our built portfolio. CTP continues to look for opportunities to add forests to preserve, plant trees and instigate reforestation.
CTP announces an interim dividend of €0.17 per share, being 75% of company specific adjusted EPRA earnings. Shareholders can opt for dividend in cash or shares.
Planning interim dividend
|Friday, August 13, 2021||Ex-dividend before opening|
|Monday, August 16, 2021||Record date dividend at close of business|
|Tuesday, August 17, 2021||Start election period stock or cash dividend|
|Monday, August 30, 2021||End election period|
|Wednesday, September 22, 2021||Payment date cash and new shares|
Business activity in our markets is expected to remain at a high level. The logistics sector enjoys strong structural tailwinds from e-commerce and supply chain optimisation trends. In addition, Eastern Europe stays a very attractive region as low-cost production location benefiting from modern infrastructure.
In the first half of 2021, long-term interest rates started to become more volatile, and we expect this to continue in the second half. In addition, rising inflation might have an impact on the economic development in the second half of the year. We continue to strengthen our market leadership in our core region (Czech Republic, Slovakia, Hungary and Romania), to expand our geographical footprint in Bulgaria and Poland and we have started operations in Western Europe. Our “Parkmakers” vision fits with the increasing demand for integrated business and logistics parks with a strong focus on sustainability. We will continue our pan European profitable growth journey.
We are well on track to reach our growth target set at the time of our IPO. We expect our asset base to be in excess of 7.7 million m² by year-end, including 390,000 m² in assets under management for DEKA. Towards the end of 2023 we expect to add at least another 2.5 million m², exceeding our IPO target of 10 million m² by then. As of 30 June 2021, CTP already has a strong visible pipeline for delivery in 2022.
Jan-Evert Post, Head of Funding & Investor Relations
Mobile: +31 615 038 729
PR agency: CFF Communications
Uneke Dekkers + 31 650 261 626 / Ruben Cardol + 31 (0)6 55 358 427
Visit our corporate website: www.ctp.eu
CTP conference call details
CTP will host a conference call and audio webcast (register via ctp.eu/investors) to discuss its results for the first half year and the full-year 2021 outlook. The conference call and audio webcast presentation will be held on Wednesday, August 11, 2021 at 14.00 CET.
The audio webcast can be watched live at: https://channel.royalcast.com/landingpage/ctp/20210811_1/
To participate in the Q&A session, please dial:
- Prague: +420 2 2888 0865
- Amsterdam: +31 (0) 20 708 5073
- New York: +1 212 999 6659
- UK-Wide: +44 (0) 33 0551 0200
 Rent roll including service charge income (Base rent + other rental income + extras for above standard technical improvement + services – rent frees)
 CBRE Research
 CBRE Research
 No revaluation of investment properties was undertaken for H1 2021
CTP is a top five industrial property developer in Europe and the largest in CEE, with over 6.6 million m² of logistics space and operations in nine countries. The company is on target to expand its portfolio to 10 million m² by year-end 2023. With its entire portfolio BREEAM certified, CTP claims the position of the most sustainable developer in the region and is on track to reach carbon neutrality this year. At the end of March 2021 CTP listed on the Euronext Amsterdam stock exchange, issuing 397,017,000 shares priced at €14 per share, which implied a market capitalisation for the company of €5.6 billion at listing.
Forward looking disclaimer
This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and business of CTP. These forwardlooking statements may be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “targets”, “may”, “aims”, “likely”, “would”, “could”, “can have”, “will” or “should” or, in each case, their negative or other variations or comparable terminology. Forward-looking statements may and often do differ materially from actual results. As a result, undue influence should not be placed on any forward-looking statement.
This press release contains inside information as defined in article 7(1) of Regulation (EU) 596/2014 of 16 April 2014 (the Market Abuse Regulation).