Earnings Release • May 12, 2021
Earnings Release
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Utrecht, 12 May 2021 – In its first financial results announcement since the IPO in March 2021, CTP N.V., CEE's largest logistics property owner and developer, records 16.9% growth of net rental income in Q1 2021 vs Q1 2020, increasing market share in its core CEE markets to 24% by the end of Q1 2021 and more than doubling leasing activity to 397k m² GLA (compared to 184k m² in Q1 2020).
CTP remains on track to grow its portfolio to 7.5 million m² in 2021 with over 1 million m² under construction as of 31 March 2021, over 70% of which is pre-let. CTP's Yield-on-Cost for these developments stayed strong at 11.5% (Q4 2020: 11.6%), well above the target of >10%.
"Capturing almost 33% of new rentals in our core CEE region illustrates our dominant position as the largest logistics property owner and developer in the region," commented Remon Vos, CTP's Group CEO. "We keep expanding our CTPark Network in deploying our market-leading landbank and our integrated teams in nine countries, working with our loyal tenant base of over 700 logistics and light industrial companies. New rental activity showed strong momentum as our clients continued to expand in our region with new long-term rentals of 397k m² in Q1. Our strong start this year means that we are on course for realising our 7.5 million m² GLA target for 2021, and we are well on our way to our target of 10 million m² lettable area by the end of 2023."
During the first quarter of 2021, CTP continued its further geographic expansion in the first Western European markets, beefing up operations in the Netherlands and Austria.
Through its IPO on 25 March 2021 on the Euronext Amsterdam stock exchange, CTP reached a new milestone in its 22 years of existence. The company raised net proceeds of EUR 819 million and following the exercise of 6.7 million shares from the green shoe option, the stock now commands a 17% free float. Market capitalisation as of 11 May 2021 reached EUR 5.8 billion (up from IPO capitalization of EUR 5.6 billion).
Earlier, on 18 February, CTP also issued a third 6-year Green Bond under its EUR 4.0 EMTN programme, raising EUR 500 million for 6 years at a 0.75% coupon. After prepaying secured bank debt, CTP's average cost of debt stands at 1.6% by the end of March 2021 (compared to 2.2% end of September 2020, immediately prior to its first bond issuance).
CTP's Group CFO, Richard Wilkinson, said: "The investors' interest and success of our IPO illustrated their belief in our business model. Our Q1 results underline our growth story with EPRA Earnings increasing by almost 20% Y-o-Y and a profit of EUR 98 million. The effects of the Covid pandemic and the government measures in response continue to only have a marginal effect on our business; our construction activities proceed uninterrupted and we see strong rent collection and tenant retention."
CTP is widely recognised as a frontrunner on developing, owning and managing its assets to the highest sustainability standards in the sector in Europe. By 31 March 2021, the proportion of BREEAM certified properties (either In-Use or for New Build "Very Good" or better) as part of CTP's total portfolio of income producing properties, reached effectively 100% (compared to over 95% per 31 December 2020).
On 29 March 2021, the company established a new one-tier Board of Directors with the appointment of four Non-Executive Directors, in addition to Remon Vos (Group CEO) and Richard Wilkinson (Group CFO) as the two Executive Directors of CTP N.V. Having been able to add a solid combination of senior executive experience in real estate, finance, logistics and the CEE region, the Board of Directors now consists of Barbara Knoflach (former CEO at BNP Paribas Real Estate Investment Management), Gerard van Kesteren (former Group CFO of Kuehne + Nagel), Pavel Trenka (previously CEO of HB Reavis) and Susanne Eickermann-Riepe (former partner and head of Real Estate at PWC Germany). Mrs Knoflach serves as Senior Independent Director to CTP's Board of Directors and Chairperson of the Board. CTP N.V. now operates a professional governance model, in line with the Dutch corporate governance code.
1 Annualised Rental income: Rent roll including service charge income (Base rent + other rental income + extras for above standard technical improvement + services –rent frees)
2 Company Specific Adjusted EPS. Number of shares applied for both 2021 and 2020 metrics is 397,017,000
Please join CTP Q1 financial and operating results webcast and presentation on Wednesday, 12 May 2021 at 14:00 CET. Watch the webcast here: https://channel.royalcast.com/ctp/#!/ctp/20210512_1, and use numbers below to participate in the following Q&A session.
| Title | CTP Q1 FINANCIAL RESULTS |
|---|---|
| Speaker(s) | Remon Vos (CEO) joined by Richard Wilkinson (Deputy CEO & Group CFO) and Jan-Evert Post (Head of Funding & IR) |
| Event call time | 12 May 2021 at 14:00 for 60 minutes (Amsterdam, Berlin, Bern, Rome, Stockholm, Vienna) Please join the call 5 minutes before the booked start time to allow the operator to transfer you into the call by the scheduled start time |
| Dial in number(s) | Amsterdam: +31 (0) 20 708 5073 New York: +1 212 999 6659 Prague: +420 2 2888 0865 UK-Wide: +44 (0) 33 0551 0200 |
| Password | Quote CTP when prompted by the operator |
CTP Jan-Evert Post Head of Funding & Investor Relations Mobile: +31 615 038 729 Email: [email protected]
CTP is a top five industrial property developer and developer in Europe and the largest in CEE, with over 6.3 million m² of logistics space and operations in nine countries. The company is on target to expand its portfolio to 10 million m² by 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 EUR 14 per share. This implied a market capitalisation for the company of EUR 5.6 billion.
For more information about CTP, please visit https://www.ctp.eu.
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).
| In EUR thousand | Q1/2021 | Q1/2020 |
|---|---|---|
| Rental income | 77.772 | 68.382 |
| Service charge income | 7.402 | 6.046 |
| Property operating expenses | (7.086) | (7.613) |
| Net rental income | 78.088 | 66.815 |
| Hotel operating revenue | 830 | 2.542 |
| Hotel operating expenses | (1.166) | (2.298) |
| Net operating income from hotel operations | (336) | 244 |
| Income from development activities | 17.519 | 21.629 |
| Expenses from development activities | (12.826) | (11.556) |
| Net income from development activities | 4.693 | 10.073 |
| Total revenues | 103.523 | 98.599 |
| Total attributable external expenses | (21.078) | (21.467) |
| 82.445 | 77.132 | |
| Net valuation result on investment property | 67.101 | 28.680 |
| Other income | 1.769 | 951 |
| Amortization and depreciation | (2.564) | (2.635) |
| Employee benefits | (5.693) | (4.293) |
| Impairment losses/gains financial assets | 240 | (39) |
| Other expenses (including administrative expenses) | (5.081) | (6.785) |
| Net other income/expenses | (11.329) | (12.801) |
| Net profit before finance costs | 138.217 | 93.011 |
| Interest income | 475 | 278 |
| Interest expense | (18.875) | (16.468) |
| Other financial expense | (8.020) | (973) |
| Other financial gains/losses | 9.325 | (1.928) |
| Net finance costs | (17.095) | (19.091) |
| Profit before income tax | 121.122 | 73.920 |
| Income tax expenses | (22.636) | (16.153) |
| Profit for the period | 98.486 | 57.767 |
| Profit attributable to: | ||
| Non-controlling interests | - | 944 |
| Equity holders of the Company | 98.486 | 56.823 |
| In EUR thousand | 31 March 2021 | 31 Dec. 2020 |
|---|---|---|
| Assets | ||
| Investment property | 5.514.164 | 5.386.230 |
| Investment property under development | 470.832 | 387.347 |
| Property, plant and equipment | 99.235 | 98.884 |
| Intangible assets | 2.239 | 2.418 |
| Financial investments | 591 | 521 |
| Financial derivatives | 97 | - |
| Trade and other receivables | 14.534 | 11.796 |
| Receivables from related parties | 53.839 | 42.046 |
| Deferred tax asset | 12.666 | 14.422 |
| Total non-current assets | 6.168.197 | 5.943.664 |
| Contract assets | 8.250 | 12.878 |
| Trade and other receivables | 82.954 | 67.941 |
| Short-term receivables due from related parties | 13 | 45 |
| Current income tax receivable | 3.059 | 2.692 |
| Financial derivatives | 23 | - |
| Cash and cash equivavents | 1.148.002 | 419.141 |
| Total current assets | 1.242.301 | 502.697 |
| Total Assets | 7.410.498 | 6.446.361 |
| Issued capital | 63.523 | 53.760 |
| Translation reserve | 14.049 | 14.458 |
| Share premium | 2.667.971 | 1.858.460 |
| Retained earnings | 324.834 | 72.744 |
| Revaluation reserve | 12.626 | 11.662 |
| Net result for the year | 98.486 | 252.118 |
| Equity attributable to owners of the Company | 3.181.489 | 2.263.202 |
| Non-controlling Interest | - | 1.031 |
| Total equity | 3.181.489 | 2.264.233 |
| Liabilities | ||
| Interest-bearing loans and borrowings from financial institutions | 1.805.015 | 2.191.999 |
| Bonds issued | 1.543.325 | 1.041.971 |
| Trade and other payables | 34.489 | 23.385 |
| Long-term payables to related parties | 118 | 34.544 |
| Financial derivatives | 17.880 | 27.196 |
| Provisions | - | - |
| Deferred tax liabilities | 519.155 | 504.779 |
| Total non-current liabilities | 3.919.982 | 3.823.874 |
| Interest-bearing loans and borrowings from financial institutions | 119.104 | 160.288 |
| Trade and other payables | 162.772 | 169.006 |
| Short-term payables to related parties | - | 2.627 |
| Current income tax payables | 22.762 | 19.463 |
| Financial derivatives | 4.389 | 6.870 |
| Provisions | - | - |
| Total current liabilities | 309.027 | 358.254 |
| Total liabilities | 4.229.009 | 4.182.128 |
This announcement may include statements which may be deemed to be, "forward-looking statements". 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. No statement in this announcement is intended to be nor may be construed as a profit forecast. Forward-looking statements speak only as of the date they are made.
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