CTP reports 14.4% rental income growth in H1 2024
CTP recorded in H1-2024 Rental Income of €320.9 million, up 14.4% y-o-y, and like-for-like y-o-y rental growth of 4.8%, mainly driven by indexation and reversion on renegotiations and expiring leases. As at 30 June 2024, the annualized rental income came to 679.0 million and occupancy at the half year was 93%.
In the first half, CTP delivered 328,000 sqm at a YoC of 10.7% and 92% let at completion, bringing the Group’s standing portfolio to 12.4 million sqm of GLA, while the Gross Asset Value increased by 8.5% to €14.8 billion. The like-for-like revaluation came to 3.0%, driven by ERV growth of 2.9%, with stable yields. EPRA NTA per share increased by 7.1% in the first half of the year to €17.05.
Company specific adjusted EPRA earnings increased by 12.4% y-o-y to €177.6 million. CTP’s Company specific adjusted EPRA EPS amounted to €0.40, an increase of 11.2%. The Group confirms its €0.80 – €0.82 Company specific adjusted EPRA EPS guidance for 2024.
As at 30 June 2024, projects under construction totaled 2.0 million sqm, a large part of which will be delivered in 2024, with a potential rental income of €148 million when fully leased and an expected yield on cost of 10.3%.
The Group’s landbank of 25.5 million sqm, of which 20.3 million sqm is owned and on-balance sheet, offers substantial secured future growth potential to CTP. With its industry leading YoC, CTP has a revaluation potential of €350 per sqm of GLA build. Combined with the Group’s track record of delivering over 10% new GLA per year, CTP expects to be able to continue to generate double digit NTA growth in the years to come.
– We leased 918,000 sqm in H1-2024, 8% more than in the same period last year, illustrating the continued strong demand in CEE, the business-smart region in Europe. As the supply–demand balance remains healthy we realized strong rental growth in the first half of the year. Looking ahead, we have seen the number of requirements increasing in the last months and have a strong lead-list for the second half of the year – Remon Vos, CEO, comments.
– We expect to see further market rental growth in the coming years, while yields have peaked, leading to an inflection point in terms of properties values, with the like-for-like valuation of the standing portfolio going up 3.0% in the first half. Demand for industrial and logistics real estate in the CEE region is driven by structural demand drivers, such as professionalization of supply chains by 3PLs, e-commerce, and occupiers nearshoring and friend-shoring, as the CEE region offers the best cost location in Europe. We have now nearly 10% of our portfolio leased to Asian tenants which are producing in Europe for Europe.
H1-2024 developments delivered with a 10.7% YoC and 92% let at delivery
CTP continued its disciplined investment in its highly profitable pipeline.
In H1-2024, the Group completed 328,000 sqm of GLA (H1-2023: 413,000 sqm), slightly below last year when several projects came online that were postponed during the year 2022 due to the higher construction costs. The developments were delivered at a YoC of 10.7%, 92% let and will generate contracted annual rental income of €19.0 million, with another €1.8 million to come when these reach full occupancy.
Some of the main deliveries during H1-2024 were: 39,000 sqm in CTPark Zabrze (Poland), 37,000 sqm in CTPark Budapest Ecser (Hungary), 34,000 sqm in CTPark Novi Sad East (Serbia), 30,000 sqm in CTPark Weiden (Germany), 24,000 sqm in CTPark Bucharest West (Romania), 23,000 sqm in CTPark Katowice (Poland) and 23,000 sqm in CTPark Arad West (Romania).
For more information, visit ctp.eu.
Foto: CTPark Zabrze, Poland (source: CTP)
