CTP net rental income up 26.8% in H1 2023

CTP N.V. recorded in H1-2023 Net Rental Income of €268.3 million, up 26.8% y-o-y, and like-for-like rental growth of 7.5%, mainly driven by indexation and reversion on renegotiations and expiring leases. The contracted revenues for the next 12 months stood at €654 million as at 30 June 2023.

CTP’s expected Yield-on-Cost (“YoC”) for the 1.8 million sqm of projects under construction increased to an industry-leading 10.6% from 10.1% at year-end 2022. The Group’s standing portfolio grew to 11.0 million sqm of GLA owned as at 30 June 2023, while the Gross Asset Value (“GAV”) increased by 8.2% to €12.4 billion. EPRA NTA per share increased by 7.4% to €14.84.

Company specific adjusted EPRA earnings increased by 25.4% to €158.1 million. CTP’s Company specific adjusted EPRA EPS amounted to €0.36, on track to reach CTP’s guidance of €0.72 for 2023.

We saw a strong pick-up in leasing during the second quarter with in total 850,000 sqm signed during H1-2023. As occupier demand remains robust and the supply of new industrial & logistics space is decreasing, vacancies stay low, allowing us to continue to drive rental growth, with the rental levels of new leases that we signed in H1-2023 up 12% compared to H1-2022, Remon Vos, CEO, comments.

The business-smart CEE region has seen strong growth in recent years and is expected to continue to outperform in the years ahead. The industrial & logistics sector in CEE benefits from structural demand drivers, such as professionalisation of supply chains, e-commerce, and occupiers seeking to enhance the resilience of their supply chains through nearshoring and friend-shoring, with production in Europe for Europe, as the CEE region offers the best cost location.

– We continue to deliver on our promises, the expected YoC of our 1.8 million sqm of development projects, which have a potential rental income of €133 million, increased to 10.6%, and we expect that to improve further during the year, thanks to decreasing construction costs and higher rents. Our industry-leading YoC and profitable pipeline also continues to drive positive revaluations, as we mobilise our landbank, which we have been able to acquire at attractive prices – Vos added.