CPI Property Group, a leading European property owner, has published its unaudited financial results for the six months to 30 June 2021.
“The real estate portfolio of the group clearly passed the stress test of the COVID-19 pandemic, and its resilience was again demonstrated, which it achieves mainly through its diversification. Thanks to this, we can announce record revenues and a strong capital structure,” says Martin Němeček, CEO of the company.
The main data on the Group’s operations in the first half of 2021 include:
̶ The value of the CPIPG real estate portfolio increased to EUR 11.2 billion (by 9% compared to the end of 2020), as a result of the completion of acquisitions of EUR 580 million and an increase in the market value of residential, land and office assets by EUR 317 million together with exchange rate developments.
̶ The total value of assets reached EUR 12.6 billion (by 7% compared to the end of 2020) due to an increase in the value of the real estate portfolio partially offset by a decrease in the volume of cash and cash equivalents.
̶ In the first half of 2021, the Group was able to collect 95% of the contractual rent before deducting one-off discounts provided in connection with the COVID-19 pandemic of approximately 4% of gross rental income. The collection of rent in the segments of office and residential real estate was close to 100%.
̶ Net rental income increased to EUR 175 million (7% compared to the first half of 2020) and consolidated adjusted EBITDA increased to EUR 172 million (5% compared to the first half of 2020) due to recent acquisitions and completed development projects, generally stable occupancy of 92.6%, reduction of rent discounts in connection with the COVID-19 pandemic, and an increase in gross rental income from comparable properties (like-for-like) by 1.9%.
̶ As a result of effective cost management, the hotel segment reported only a slight net loss (EUR -4 million), although hotels were forcibly closed for most of the period under review. With the improvement of the pandemic situation across portfolios from April / May 2021, the group recorded a significant increase in hotel reservations.
̶ Net business income (EUR 178 million, an increase of 6% compared to the first half of 2020) and funds from operations (FFO, EUR 127 million, an increase of 10% compared to with the first half of 2020) demonstrate the benefits of stable CPIPG business results, diversified revenue sources and recent acquisitions.
̶ The net asset value (NRV, formerly NAV) according to EPRA increased by 3% to EUR 5.3 billion.
̶ The net debt-to-value ratio of the real estate portfolio (Net LTV) at 41.9% (+1.2 pp compared to the end of 2020, -0.6 pp compared to the first half of 2020) remained within the limits set by the financial group policy. In support of its financial policy and credit rating, the Group will take measures to reduce debt leverage, thereby creating room for further selective acquisitions.
̶ The share of unencumbered assets remained at 69% (-1 pp compared to the end of 2020) and the net interest coverage ratio (net ICR) was 4.8 × (-0.6 × compared to at the end of 2020), safely within the limits set by the group’s financial policy.
̶ At the end of the first half of 2021, the total liquidity of the CPIPG amounted to more than EUR 1.1 billion.
̶ In the first half of 2021, the CPIPG repaid senior unsecured bonds, Schuldschein debt instruments and hybrid bonds with a total value exceeding EUR 750 million callable or due in 2022, 2023 and 2024. The weighted average maturity of the CPIPG liabilities at the end of the first half of 2021 was 5 , 3 years, compared to 4.8 years valid at the end of 2020.
“CPI Property Group’s half-year results partly reflect some of the impacts of the COVID-19 pandemic, yet our business is still growing. We are pleased that the company has successfully survived the pandemic and is looking forward to a bright future,” says David Greenbaum, CFO of the group.
