CTP N.V. (CTPNV.AS), Continental Europe’s largest owner, developer and manager of high quality industrial and logistics real estate by gross lettable area (GLA), reported strong like-for like rental growth of 4.8%1 in the first quarter, across its investment portfolio in European markets. Net rental income rose 37% to €107.2 million in the first three months of 2022, compared with €78.1 million in the same period of last year. For projects under construction at the period end, CTP’s market leading yield-on-cost was a solid 10.2%. The Group’s owned investment property portfolio grew to 9.3 million sqm of GLA following the integration of Deutsche Industrie REIT-AG into CTP’s consolidated financial and operational metrics in February 2022.
Remon Vos, CEO said: “We entered 2022 focused on capitalising on the significant expansion momentum the Group achieved last year but are now closely monitoring for any impact arising from the accelerating macroeconomic headwinds and the war in Ukraine. To-date, CTP has not experienced any material effects following Russia’s invasion on 24 February, however, the conflict has compounded construction supply chain disruptions that arose during the pandemic and ignited inflation to the highest levels in decades. We have been largely able to mitigate rising costs thanks to our in-house construction team, centralised procurement capabilities and ability to offset inflationary pressures through increased rents both on new developments and within our standing portfolio.”
“Looking forward, we remain confident the European industrial and logistics sector will continue to benefit from
positive tailwinds as occupiers seek to enhance the resilience of their regional and national supply chains, through nearshoring operations as well as maintaining higher levels of stocks close to their main markets, which will underpin demand for space. This durable demand for high quality assets from a diverse range of occupiers,
combined with historically low vacancy rates in supply constrained markets, is now translating into meaningful
rental growth across the CTP portfolio. Equally, we believe the European industrial and logistics sector continues to offer significant development potential, with structurally higher rates of long-term economic growth projected for our core CEE markets in particular,” he added.
