CpiFim

Earnings Release • Aug 31, 2020

Press Release Luxembourg, 31 August 2020

CPI FIM SA

H1 2020 Financial Results

Financial highlights

Performance		30-Jun-20	30-Jun-19	Change
Gross rental income Total revenues	€ thousands € thousands	16,413 29,251	753 15,353	2,078% 91%
Operating result	€ thousands	18,940	13,288	43%
Net profit for the period	€ thousands	(36,604)	69,650	(153%)

Assets		30-Jun-20	31-Dec-19	Change
Total assets	€ thousands	5,886,787	5,244,046	12%
EPRA NRV	€ thousands	774,310	864,644	(10%)
Property Portfolio	€ thousands	1,192,000	1,193,000	(<0.1%)
Gross leasable area	sqm	174,000	174,000	0%
Occupancy in %	%	92.0%	93.0%	(1.0 p.p.)
Land bank area	sqm	18,068,000	18,068,000	0%
Total number of properties	No.	8	8	0%

Financing structure		30-Jun-20	31-Dec-19	Change
Total equity	€ thousands	913,128	997,878	(8%)
Equity ratio	%	16%	19%	(3 p.p.)

CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT*

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€ thousands		Six-month period ended
	30-Jun-20	30-Jun-19
Gross rental income	16,413	753
Sale of services	12,838	14,600
Cost of service charges	(5,293)	(2,105)
Property operating expenses	(1,169)	(555)
Net service and rental income	22,789	12,693
Total revenues	29,251	15,353
Total direct business operating expenses	(6,462)	(2,660)
Net business income	22,789	12,693
Net valuation gain on investment property	-	1,759
Net gain on the disposal of investment property and subsidiaries	29	239
Amortization, depreciation and impairments	2,269	5,525
Administrative expenses	(5,733)	(6,940)
Other operating income	20	22
Other operating expenses	(434)	(10)
Operating result	18,940	13,288
Interest income	78,938	74,994
Interest expense	(59,432)	(33,409)
Other net financial result	(52,592)	17,096
Net finance income	(33,086)	58,681
Share of loss of equity-accounted investees (net of tax)	(427)	(379)
Profit / (Loss) before income tax	(14,573)	71,590
Income tax expense	(22,031)	(1,940)
Net Profit / (Loss) for the period	(36,604)	69,650

* The presented financial statements do not represent a full set of interim financial statements as if prepared in accordance with IAS 34

Gross rental income

The gross rental income increased in the six-month period ended 30 June 2020 due to acquisitions of offices in Warsaw, Poland in 2019.

Net finance income

The interest income increased by €3.9 million to €78.9 million in the six-month period ended 30 June 2020 due to increase of loans provided to related parties.

The interest expense increased by €26.0 million to €59.4 million in the six-month period ended 30 June 2020 due to increase of loans received from related parties.

The other net foreign exchange loss in the six-month period ended 30 June 2020 was driven by retranslation of loans provided to related parties in foreign currencies.

Income tax expense

Based on the updated budget, the Group partially wrote-off the deferred tax asset in the amount of EUR 20.9 million in the six-month period ended 30 June 2020.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION*

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€ thousands	30-Jun-20	31-Dec-19
NON-CURRENT ASSETS
Intangible assets	14	1,123
Investment property	1,192,260	1,191,435
Property, plant and equipment	660	662
Equity accounted investees	3,297	3,672
Other investments	179,543	188,293
Loans provided	4,107,998	3,442,619
Trade and other receivables	1	12
Deferred tax assets	131,695	153,126
Total non-current assets	5,615,468	4,980,942
CURRENT ASSETS
Inventories	435	341
Income tax receivables	465	36
Trade receivables	8,352	7,175
Loans provided	131,028	103,908
Cash and cash equivalents	117,943	129,447
Other current assets	13,096	20,693
Assets held for sale	-	1,504
Total current assets	271,319	263,104
TOTAL ASSETS	5,886,787	5,244,046
EQUITY
Equity attributable to owners of the Company	736,022	826,356
Non-controlling interests	177,106	171,522
Total equity	913,128	997,878
NON-CURRENT LIABILITIES
Financial debts	4,578,733	3,886,792
Deferred tax liabilities	36,863	38,200
Provisions	1,515	1,594
Other financial liabilities	11,075	10,794
Total non-current liabilities	4,628,186	3,937,380
CURRENT LIABILITIES
Financial debts	293,208	252,538
Trade payables	9,097	10,543
Income tax liabilities	-	747
Other current liabilities	43,168	44,939
Liabilities held for sale	-	21
Total current liabilities	345,473	308,788
TOTAL EQUITY AND LIABILITIES	5,886,787	5,244,046

* The presented financial statements do not represent a full set of interim financial statements as if prepared in accordance with IAS 34

Total assets

Total assets increased by €642.7 million (12.26%) to €5,886.8 million as at 30 June 2020 primarily due to increase of non-current loans provided to related parties of €673.1 million.

Deferred tax asset from tax losses carried forward decreased from €148.9 million to €128.0 million as at 30 June 2020. The partial write-off in the amount of EUR 20.9 million was based on the update of CPI FIM's taxable profits.

Total liabilities

Total liabilities increased by €727.5 million (17.13 %) to €4,973.7 million as at 30 June 2020 due to additional drawdown of loans received from the parent company CPI Property Group S.A. of €688.2 million and related interests.

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Equity, EPRA NRV and EPRA NDV

In the six-month period ended 30 June 2020 the consolidated equity decreased by €90.3 million due to the loss for the period of €42.2 million, decrease of translation reserve of €39.4 million and decrease of revaluation reserve of €8.7 million.

EPRA NRV per share amounts to €0.59 as at 30 June 2020 compared to €0.66 as at 31 December 2019.

EPRA NDV per share amounts to €0.56 as at 30 June 2020 compared to €0.63 as at 31 December 2019.

	30 June 2020	31 December 2019
Equity attributable to the owners (NAV)	736,022	826,356
Deferred taxes on revaluations	38,288	38,288
EPRA NRV	774,310	864,644
Number of shares (in thousands)	1,314,508	1,314,508
NRV per share (in €)	0.59	0.66
EPRA NRV	774,310	864,644
Deferred taxes on revaluations	(38,288)	(38,288)
EPRA NDV	736,022	826,356
Diluted number of shares (in thousands)	1,314,508	1,314,508
NDV per share (in €)	0.56	0.63

For disclosures regarding Alternative Performance Measures used in this press release please refer to our 2020 Financial Information, chapter GLOSSARY & DEFINITIONS; accessible at http://www.cpifimsa.com (FOR INVESTORS – Financial Reports – HALF YEAR RESULTS).

For full Interim Management Report as at 30 June 2020, including Condensed Consolidated Interim Financial Statements as at 30 June 2020, please refer to our website at www.cpifimsa.com.