CTP N.V. — Annual Report (ESEF) 2022

Mar 3, 2023

CTP N.V. 2022 Annual Report

This copy of the 2022 Annual Report of CTP N.V. is not in the European single electronic reporting format (ESEF) as specified in the RTS on ESEF (Regulation (EU) 2019/815). The ESEF version of the 2022 Annual Report is available at https://www.ctp.eu/files/2023/03/ctpnv-2022-12-31-en.zip.

Mission

CTP’s mission is to build long-term value—for the Company, its shareholders, tenants, and the communities where it operates. CTP pursues its mission through the creation of future-proof business parks in strategic locations across Europe, from the North Sea to the Black Sea. CTP is entrepreneurial, full-speed and forward-leaning, with 25 years of on-the-ground experience as a trusted partner to global business. Today, as Europe’s largest listed owner, developer and manager of logistics and industrial properties and long-term leader in the business-smart markets of Central and Eastern Europe (“CEE”), CTP is ambitious, innovative, and growing fast.

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1 Company Introduction

1.1 Business Model & Strategy

In line with its strategy, CTP targets to own and operate a pan-European network of business parks with total gross leasable area (“GLA”) of 20 million sqm—nearly doubling its current portfolio of 10.5 million sqm—and to generate annual rental income of €1 billion before the end of the decade, while continuing to develop at an industry-leading Yield-on-Cost (“YoC”) of above 10%. CTP achieves its goals via its Parkmaker “wheel of growth” business model, which consists of two interconnected core business units—“the operator” and “the developer”—integrated with the Company’s new energy business, which generates renewable energy for its CTParks and clients. The business units each have their own roles and objectives, leveraging the Group’s capital sources and unique in-house capabilities while positively impacting each other: the operator, by owning and operating a property portfolio to enhance its value, generate cash flow, and maintain client relations; the developer, by generating industry-leading YoC; and the energy business, by monetising solar and potentially wind turbine capacity. This expansion into renewable energy is an integral part of CTP’s Parkmaker concept and contributes to the Company’s income and ESG objectives, while also providing green energy and energy security to its clients, supporting their ESG goals in the process. CTP has defined four pillars as the foundation of its strategy. They allow the Company to stay ahead of its competitors, provide best-in-class service to clients, and partner with public authorities and communities. These pillars enable CTP to capitalise on its strengths and competitive edge in the areas of occupier demand, ESG, capital, people, and landbank and to further build on its existing Parkmaker philosophy. See Chapter 2 for more details.

Energy Generating renewable energy onsite boosts revenues and sustainability.

Parkmaker Concept

The synergies of the three business lines come together in the Parkmaker “wheel of growth”.

• Operator Maximising value by providing the complete package of Parkmaking services.
• Developer Mobilising the landbank with in-house teams helps maintain industry-leading YoC.

Business Model and Strategy

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2 mil. sqm

NL AT BG RS PL HU RO SK

1.2 Company History and Milestones

| Year | Event # CTP INVESTORS ANNUAL REPORT 2022

Company History and Milestones

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1.3 Company Introduction

Big Numbers

	2022
GLA	10.5 million sqm
Landbank	20.3 million sqm
Under Construction	1.7 million sqm

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Big Numbers

Note: 1. Including Germany, 95% excluding Germany. 2. Excluding Poland, where the Group has more speculative developments as part of its market entry.

GLA	10.5 million sqm
Occupancy	94%
Like-for-Like Rental Growth	4.5%
Reversionary Potential	12.5%
WAULT	5.7 years
Average Loan Maturity	4.5 years
Tenant Retention	90%
Estimated YoC (Projects Under Construction)	10.1%
Average Cost of Debt	1.5%
Interest Coverage	4.6X
Leasing vs ERV	+6.5%
Portfolio Yield	6.5%
Leases Signed	1,883 '000s sqm
NTA	€13.81 per share
Company Specific Adjusted EPRA EPS	€0.61 per share
Next 12-Months’ Contracted Revenues	€589 million
Liquidity Position	€1.1 billion
GAV	€11.5 billion
Landbank	20.3 million sqm

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1.4 Quarterly Highlights

Q1

• CTP issues a €700 million four- year green bond with an annual coupon of 0.875%. The issue was accompanied by a successful €168 million tender offer of the October 2025 bond.
• CTP receives 98.17% Shareholder support for its transaction with Deutsche Industrie REIT AG (“DIR”).
• CTP launches operations in Germany with “last-mile” logistics development targets for the coming five years.
• CTP starts its first development in Austria with the launch of CTPark Vienna East for Toyota Logistics Services, with a “BREEAM Outstanding” certification.
• CTP commits €10 million to the UN Refugee Agency (“UNHCR”) in response to the humanitarian emergency in Ukraine and neigh- bouring countries.
• CTP acquires land and construc- tion projects across Poland from 7R, with the potential to develop 1.2 million sqm GLA of logistics and industrial real estate.
• CTP delivers its first project in the Netherlands with the hand- over of a 23,000 sqm distribu- tion centre to R&M Forwarding at CTPark Rotterdam.
• CTPark Bucharest North emerges as the leading Romanian e-commerce hub in CEE’s fastest-growing online market after a €160 million investment to increase GLA to over 200,000 sqm.

	Q1
Deliveries (sqm)	110,000
Leasing above ERV (%)	4.6%

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Q2

• CTP announces the comple- tion of the merger with DIR and squeeze-out of former DIR shareholders.
• CTP hosts its first Capital Market Days in Prague followed by an asset tour through the Czech Republic, Slovakia and Austria with analysts and investors.
• CTP announces its new growth target: 20 million sqm of GLA and €1 billion in annual rental income before the end of the decade.
• CTP delivers 0.3 million sqm of GLA in the third quarter, 96% leased and securing contracted rent of approximate- ly €17 million.
• CTP signs a nine-year, €400 million secured loan facility extension with a consortium of Czech banks for a fixed all-in cost of 4.7%.
• CTP initiates a multi-project in- vestment programme in Bulgaria following the acquisition of two logistics centres in the capital, Sofia.
• CTP receives BREEAM Out- standing certifications for build- ings at CTPark Prague West and CTPark Prague East and for its community Clubhaus at CTPark Bucharest West.
• CTP launches leasing for its multi-storage inner-city logistics park CTPark Amsterdam City.
• Cargus becomes the first tenant at CTPark Oradea Cargo Terminal in western Romania, CTP's first logistics centre inside an airport.
• CTP announces plans to build CEE’s most modern office build- ing at its Vlněna office park in Brno with a unique, technically challenging glass façade and rooftop drone delivery capability.
• CTP obtains a seven-year, €175 million secured loan facility with two Dutch banks for a fixed all-in cost of 4.3%.

	Q2
Deliveries (sqm)	330,000
Leasing above ERV (%)	6.0%

Q3

• CTP delivers 0.6 million sqm across its portfolio during Q4, ending the year with 10.5 million sqm of owned GLA, exceeding the 10 million sqm target.

	Q3
Deliveries (sqm)	553,000
Leasing above ERV (%)	6.2%

Q4

• CTP delivers 0.6 million sqm across its portfolio during Q4, ending the year with 10.5 million sqm of owned GLA, exceeding the 10 million sqm target.

	Q4
Deliveries (sqm)	553,000
Leasing above ERV (%)	6.2%

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1.5 Letter from the CEO

CTP achieved exceptional results in 2022. We have much to be proud of after our first full year as a publicly-traded company, with record GLA, income, and rental growth. The year 2022, with its macroeco- nomic headwinds, demonstrated the resiliency of our business mod- el and was a solid continuation of our 25-year history of consistent growth, with the potential for much more.

CTP remains highly profitable, with a strong income-generat- ing portfolio and a high level of retention among our diverse inter- national client base, who pay on time and accounted for almost two- thirds of our leases signed in 2022. Operationally, 2022 was another robust year, as we experienced strong demand from our tenants with little vacancy across the port- folio. We ended the year with 10.5 million sqm of gross lettable area (“GLA”)—a landmark increase of the portfolio of 2.9 million sqm in one year—and high like-for-like rental growth, with 12-month con- tracted revenues of nearly €600 million, and increasing.

With 25 years of growth and experience, CTP’s strengths are many and diverse. They include: our robust financial position, with rising rental income and a market-leading yield on cost (“YoC”) of above 10%; our Parkmaker strategy, which deepens our tenant re- lationships and helps build local ecosystems for business and com- munity growth; our large strategic landbank, primarily at existing CTPark locations; and our integrated development capabilities, in- cluding in-house design and construction teams, who help us to build on time and on budget. This unique combination of strengths, to- gether with our first-mover advantages in CEE, make us well placed to recognise and exploit emerging opportunities early.

A year of achievements

In 2022 we continued to bolster our market share in all markets— primarily by providing expansion facilities to our existing tenants, either at their current or at a new location in our expanding parks. We further solidified our position as market leader in Central and Eastern Europe (“CEE”), expanding our leadership in our core mar- kets and accelerating our expansion in Serbia and Bulgaria, where we are now market leaders.

In Q2, CTP took the bold step to expand in Poland with the pur- chase of a strategically located 2.4 million sqm landbank portfolio, which will allow CTP to develop over 1.2 million sqm of GLA. The trader-developer model which prevailed in Poland is increasingly un- der pressure in the current economic environment. We felt the time was right to expand in this context, as CTP’s build-to-own business model has proven to be more sustainable and resilient. The prevailing market conditions allowed CTP to capitalise on the opportunity and rapidly expand its presence in Poland—CEE’s largest economy and an important logistics market in Europe.

Another 2022 highlight was the launch of operations in Germany following the acquisition of Deutsche Industrie REIT-AG (“DIR”) and its portfolio of 1.6 million sqm of GLA. We also extended the CTPark Network to Austria with a series of strategic land pur- chases and the development of our first properties in Vienna, includ- ing a BREEAM-certified Outstanding warehouse and office facility for Toyota as the anchor tenant at our park near Vienna airport, with more projects under construction around the capital. Together with our recent significant investments in Amsterdam and Rotterdam in the Netherlands, the CTPark Network now provides seamless, A-class industrial and logistics property solutions to global business across ten countries, from the North Sea to the Black Sea.

Key deals concluded during the year were many and include a cus- tom-built warehouse for retail giant Tesco (Hungary) and e-com- merce fulfilment centres for two fashion retailers including LPP (both in Romania). None of our successes in 2022 would have been possible without our team of dedicated professionals, which grew last year to nearly 700 people. On behalf of CTP’s Board of Directors and senior man- agement, I thank and congratulate all of them for the successes that we have achieved together. I would also like to recognise my person- al assistant, Radka Veletová, and Petr Svoboda for their nearly 20 years of dedication to CTP.

Energy for the future

As CTP grows, we continue to build upon our long-term owner- operator business model, which has been the foundation of our success since the beginning. That’s why I am excited by the new, forward-looking paradigm that we developed during the year based on our Parkmaker “wheel of growth” strategy, which encapsulates CTP’s two core activities—developer and operator—with our new, renewable energy business that we launched formally in 2022. We see strong synergies and growth opportunities in the overlay of these three spheres of activity, with the energy business further bolster- ing our ESG credentials while providing an important and sustainable third income stream for the Company going forward.

Our energy business is straightforward. The size of our portfolio allows for the installation of large-scale photovoltaic (“PV”) systems on the rooftops of our buildings, which enables us to sell renewable energy to our tenants. Developing PV power stations at scale will create a profitable revenue stream for CTP while at the same time providing energy security to our tenants, reducing their overall cost of occupancy and furthering their own sustainability goals.We ended the year with 38MWp of installed PV capacity and are on target to add an additional 100MWp during 2023. The installation of rooftop solar panels is standard for all new building projects and is an integral part of our strategy going forward.

Big plans built on solid fundamentals

On the back of our record-breaking year of growth in 2022, we have set an ambitious target: to double the size of our portfolio to 20 million sqm of GLA before the end of the decade. We have confidence in our ability to reach this milestone, based on the strength of our business model, the favourable outlook for our core CEE markets, and secular growth drivers that remain entrenched across the CEE region, which continues to be undersupplied and is the largest growth market in Europe, with rising barriers to entry.

To date, changes to the global geopolitical landscape have benefited CEE, as the importance and value of the region’s underlying business-smart proposition—strategic location, educated workforce, and lower labour costs—becomes increasingly apparent and critical for the resiliency of European supply chains. We continue to see the rise of nearshoring/friend-shoring to the CEE region in response to global uncertainties and the need to reduce the fragility and carbon footprint of extended global supply lines.

In tandem with this trend, in 2022 we grew the portfolio to meet the on-going demand for e-commerce warehousing and logistics facilities, particularly in CEE, where growth in online retailing is more robust than in western markets, as it comes from a lower base. While there is variation among markets, rising penetration levels across the CEE region are here to stay.

CEE growth dynamics mean that our markets’ historic and projected GDP growth outperforms the EU-27 and Western European average, with lower debt-to-GDP ratios. The region remains a generally low-tax, business-friendly environment, with strong government support for infrastructure development and foreign direct investments.

Company maturation

While CTP retains the entrepreneurial, hands-on, can-do attitude that has made the Company what it is today, we continue to take steps each year to further professionalise and standardise all aspects of Company operations. This is particularly important for us as a rapidly expanding publicly traded company. In 2022, we continued to focus on developing and retaining talent at all staff levels with strong local leadership. Our strong Parkmaker company culture and shared values unite our country teams across our markets and enables us to deliver seamless solutions to our clients.

During the year, we continued to automate internal processes to improve efficiency, reduce redundancy, and make CTP leaner, better and more profitable. As ESG issues are increasingly important, we have expanded our ESG disclosure in 2022 and are working to embed ESG principles into all aspects of our operations. All governance and risk management issues are managed internally and reviewed routinely by CTP’s Board of Directors, its Committees, and by external accredited auditors in line with all applicable laws and regulations.

Personal bests

Last year was truly a milestone for CTP on many levels. We achieved high profitability and record levels of portfolio expansion. It was also a significant year for our people, many of whom achieved personal bests delivering value to the Company and its shareholders. Of course, while we work hard, we also took off time during the year to come together to enjoy our successes and plan for the future.

Highlights included our Company-wide summer party, CTFest—King and Queen edition—where our smaller Slovak team showed their muscle by winning the coveted tug-of-war championship. Our end-of-year Company-wide CTGala marked the successful end of our first year as a publicly traded company. We are happy with our investors and remain focused on our business strategy and objectives.

Outside of work, we encourage our people to be active in sports, and I took the opportunity last year to compete in the New York City Marathon with several colleagues. I look forward to future races and faster times. I also look forward to expanding our technology parks, which we have developed successfully in the Czech Republic, across the portfolio where appropriate. We ended 2022 on a strong footing and have entered 2023 with our trademark “Full Speed” approach—always knowing that we can do more and that we can do better.

Outlook

We remain confident that CTP is uniquely positioned, even in the current uncertain environment. The continuation of structural market trends favours CTP’s vision. As our strategy broadens, its essence remains unchanged. Under our owner-operator model, we take a long-term, sustainable approach to our activities. We continue to grow with our tenants in existing locations and can expand with them quickly to new locations as required.

As current geopolitical and macroeconomic trends benefit our core CEE markets, and as our business model proves to be more resilient than alternatives, we are confident that we can achieve our ambitious goal to double our portfolio to 20 million sqm of GLA before the end of the decade. We have the land, we have the clients, we have the talent and tools. Full speed to 20 million!

Remon Vos, CEO
Amsterdam, 3 March 2023

Company Introduction / Letter from the CEO

Letter from the CFO

Strong financial performance in 2022 bolsters our investment case. We delivered on what we promised, and more. We ended the year with robust results across all key financial indicators, with profit for the period of €796.5 million and 12-month contracted rental revenues nearing €600 million. Rental income increased y-o-y by 44.9% to €485.0 million, and 4.5% on a like-for-like basis. Net Rental Income (“NRI”) grew y-o-y by 38.3% to €452.1 million.

Company specific adjusted EPRA earnings per share came to €0.61 per share, outperforming guidance. During 2022 CTP’s portfolio again showed strong growth, crossed the 10 million sqm threshold and reached 10.5 million sqm of GLA at year end. The Group’s Gross Asset Value (“GAV”) increased 36% y-o-y to €11.5 billion, mainly driven by deliveries of development projects and acquisitions. The revaluation of the standing portfolio remained positive for the year, thanks to the growth of the Estimated Rental Value (“ERV”), which more than offset the 39 bps reversionary yield widening in the second half. As our CEE assets are higher yielding, the impact of yield widening is less than that for many Western European assets, which were valued at significantly lower yields.

We expect overall less yield widening in CEE than in Western Europe, with the yield differential now back at the long-term historic average, as their lower absolute rent revels, low occupancy, and the expected continued strength in rental rates provides a good operational backdrop for CEE markets. We expect continued strong revaluation of deliveries, much ahead of our peers due to our larger pipeline and higher spread between our market-leading double-digit YoC and the standing portfolio yield. EPRA NTA increased 14.5% y-o-y to €13.81 per share, mainly driven by positive revaluation deliveries. Going forward, we expect continued ERV growth to support the valuation of our portfolio.

Strong liquidity means strong growth potential going forward

We ended 2022 with liquidity of €1.1 billion. Our strong cash position and revolving credit facility, combined with our access to bond markets and bank financing, puts us in a prime position to act quickly and seize growth opportunities as they arise. Given the current market conditions and the strength of CTP’s build-to-own business model, we anticipate significant opportunities in the coming years. While we are currently relying more on bank lending, which we can secure at attractive rates, we remain ready to go back to the bond markets when pricing rationalises. In the meantime, we have built a pipeline of bank lending, thanks to our long-standing relationship with many banks active in the region.

CTP’s financial position is further bolstered by strong underlying fundamentals: our low average cost of debt of 1.5%, which is fully fixed or hedged until maturity, and our average debt maturity of 5.7 years. CTPs first material upcoming maturity is a €400 million bond in Q4 2023, after which our next significant maturity is not until mid-2025. The Company’s Loan-to-Value (“LTV”) ratio stood at 45% at end-2022, in line with our 40–45% target range, which we deem appropriate, as this reflects our above-market average portfolio yield. Our interest coverage ratio of 4.6x and normalised Net Debt to EBITDA of 9.6x reflect healthy cash-flow leverage.

Capital allocation priorities – requirements for returns

Based on the strength of our strong results in 2022 and robust occupier demand, we continue to invest in our pipeline and have set a target to double the portfolio to 20 million sqm of GLA before the end of the decade. Our priority for 2023 is to mobilise the existing landbank, which is already paid for, enhancing our financial returns. On the back of decreasing construction costs and continued rental growth, we have confirmed our YoC target of over 10% for new projects.

Richard Wilkinson, CFO
Amsterdam, 3 March 2023

Deepening our ESG goals and improving disclosure

In line with CTP’s long-term business principles and strategy going forward, sustainability and the principles of ESG are integral to our operations at all levels. CTP strives to be climate positive and is committed to reducing carbon emissions, increasing the production of renewable energy, and aligning operations with all relevant frameworks and regulations.# CTP N.V.

1.7 Letter from the Chairwoman

Company Introduction / Letter from the Chairwoman

Dear Shareholders,

2022 was a year of unprecedented volatility. Just as the impact of the Covid-19 pandemic was fading, Russia invaded Ukraine. A previ- ously unimaginable war in Europe began, bringing part of our society to a new near-standstill. The war significantly intensified already existing supply bottlenecks and led to a shortage of goods, which were further exacerbated by public health restrictions in China. The increase in raw material and energy prices was followed by soaring inflation, and to combat this, central banks decided to raise interest rates for the first in over ten years.

Despite geopolitical turmoil, the strong fundamentals of the logis- tics real estate sector remained intact. Tenant demand for new space remains high, driven by nearshoring and friend-shoring, as companies seek to enhance the resiliency of their supply chains following the dis- ruptions of the past years. The CEE region is the natural beneficiary of this trend in Europe, given its competitive labour rates, educated and motivated workforce, good infrastructure, and business-smart environment. While market transactions have slowed down significantly as price discovery is on-going, CTP benefited from its build-to-own strategy.

In this volatile environment CTP achieved strong operational and financial results in 2022, continuing its strong growth path and de- livering on its promises. CTP’s portfolio grew to 10.5 million sqm of GLA with 1 million sqm of deliveries and 1.8 million sqm of stra- tegic acquisitions. During the year CTP signed leases for a record 1,883,000 sqm. The Company specific adjusted EPRA EPS amounted to €0.61, outperforming guidance, and the EPRA NTA increased by 14.5% to €13.81, mainly driven by the positive revaluation of development de- liveries and ERV growth.

Based on this strong result, the Board will propose a final 2022 dividend of €0.23 per ordinary share to the AGM. This will bring the total 2022 dividend—subject to the AGM approval—to €0.45 per or- dinary share, which represents a growth of 29% compared to 2021.

As part of the on-going strategy review, a new energy business unit next to the operator and developer business was created, as CTP is ramping up the roll-out of its solar photovoltaic systems, creating a new income stream. This new business unit will allow CTP to serve even better clients’ needs in a holistic way. Renewable energy im- proves the energy security of tenants and lowers their cost of occu- pancy, while contributing to their and CTP’s sustainability ambitions.

CTP’s entrepreneurial culture allows the Company to act quickly. This is also illustrated by the recent market activities in Poland, where CTP is expanding, as well as the strategic market entry into Germany through the acquisition of Deutsche Industrie REIT-AG, which was accomplished within ten months—a record time for a German- listed company to be acquired and integrated into a new organisation.

CTP’s dedicated client-centric approach makes the Company the partner of choice to existing and future tenants. This has enabled CTP to continuously increase market share and to become a leading European player in the listed real estate world.

In the current volatile environment, the Board stayed close to the larger management team and met more frequently than in the pre- vious year to evaluate, discuss and ensure strong governance and to make sure that the long-term strategy adapts and works well in a changing market environment. The Board initiated its first self-evaluation since the listing of CTP in March 2021 to reflect on its functioning, in conjunction with an extensive discussion on succession planning of both the Executive as well as Non-Executive members of the Board of Directors. During 2022, CTP further bolstered its senior management, which is placed below the Executive Directors, thereby looking after the Group’s short- and medium-term succession.

The Board approved the Company’s Suppliers’ Code of Conduct, which sets out the shared values of integrity and compliance with local and international laws; approved the unequivocal stand against bribery and corruption; and further broadened the scope of com- pliance by approving an anti-discrimination and harassment policy throughout CTP.

Following the identification and quantification of Group risks and the creation of the Group’s Risk Policy and Inventory in 2021, CTP established in 2022 a Group-wide risk management system, which covers both financial as well as non-financial risks. The Board evalu- ated and approved the Group’s updated risk management policy and discussed the assessment of the effectiveness of the design and op- eration of the internal risk management and control systems.

At CTP, people feel and experience that sustainability is incorpo- rated in all operational processes. To formalise these activities and strengthen innovation efforts, the Board decided to install a Sustain- ability Committee next to the Audit Committee and Nomination and Remuneration Committee. One of the priorities of the newly estab- lished Committee will be to advise on the publication of a Sustaina- bility Report for the year 2022 in which the long term ESG objectives will be set.

Company Introduction / Letter from the CFO

CTP’s new energy business that launched in 2022 provides an im- portant third revenue stream for the Company while expanding our ESG credentials and offer for tenants, who increasingly require high levels of ESG compliance for their leased premises. During the year we continued our long-standing commitment to deliver state-of- the-art, energy efficient buildings that meet high BREEAM stand- ards across the portfolio for all property types. Embedding our parks into the communities where they are lo- cated has always been part of our strategy as long-term owners and operators. We seek engagement with local communities and munic- ipalities to improve infrastructure and quality of life. One important part of this is our Clubhaus concept, which we continued to develop at select CTPark locations in 2022. These create a focal point not only for the parks where they are located, but also for the surround- ing communities. Internally, CTP strengthened its diversity and inclusion commit- ment. During 2022 we continued to increase the number of women in leadership positions, with the goal to have 30% representation in senior management.

Dividend

We propose a final 2022 dividend of €0.23 per ordinary share, which will, subject to approval by the AGM, be paid in May 2023. This will bring the total 2022 dividend to €0.45 per ordinary share, which rep- resents a Company specific adjusted EPS pay-out of 74% and an im- pressive growth of 29% compared to 2021.

Outlook

We continue to closely monitor the market environment and have the flexibility to react to changes as they emerge. Despite the current global geopolitical uncertainties, we remain bullish on our prospects in 2023 and beyond. Our confidence is based on many factors, including:

• our robust balance sheet and strong liquidity position;
• the disciplined capital allocation and industry leading YoC of our profitable pipeline, with our existing tenants that continue to ex- pand with us;
• our conservative debt repayment profile, high interest coverage and good access to credit markets;
• our well-diversified tenant base with blue-chip multinationals; and
• the strong cash-flow generation of our standing portfolio, which is supported by an increasing amount of leases linked to inflation and continued rental growth driven by the secular growth drivers in the CEE region.

In 2022 CTP’s sustainability efforts were recognised by Sustainaly- tics, with an ESG Risk Rating of 10.2 and assessed as Low Risk; by Standard & Poor’s, with a Global Corporate Sustainability Assess- ment and ESG Evaluation score of 67; as well as by the Company’s inclusion in the AEX® ESG index, which includes the 25 companies within the AEX® and AMX® indices demonstrating best Environmen- tal, Social and Governance practices.

Embedding CTP parks into the communities where they are lo- cated has always been part of the strategy as long-term owner and operator. In this context, CTP offered hotel rooms to Ukrainian refu- gees, donated €10 million to the United Nations High Commission for Refugees (UNHCR) and supported NGOs with shelter and financial contributions throughout all major CEE countries.

The combination of a resilient business model, agility and the tre- mendous commitment of its teams across all countries allowed CTP to achieve an outstanding performance in 2022. Balanced growth across all countries demonstrates the relevance of the build-to-own business model: strategically centralised and operationally decen- tralised with a strong entrepreneurial mindset. This model has proven to be well suited for the current environment. CTP has emerged stronger from 2022 and reinforced its position as one of the leading listed real estate companies in Europe. Mindful of the current un- certainties, we remain ambitious for the future, optimistic about the outlook for the logistics real estate markets, and confident in our ability to keep outperforming the market and achieve in 2023 another year of strong profit and GLA growth.

On behalf of all Non-Executive Directors, I would like to thank you, our valued shareholders, customers and partners, for your trust and support. Our thanks also go to all employees and the management across the countries for their commitment and significant efforts.

CTP’s Annual General Meeting of Shareholders will be held on 25 April 2023. We very much look forward to meeting our sharehold- ers then!

On behalf of the Board,

Barbara Knoflach,
Chairwoman of the Board of CTP N.V.Amsterdam, 3 March 2023

1.8 Investor Relations Q&A

In 2022, we celebrated the one-year anniversary of CTP’s listing on Euronext Amsterdam, and since March CTP is included in the Mid-Cap Index (AMX). In September, we hosted our first Capital Market Day, welcoming over 40 investors and sell-side analysts in Prague, followed by a property tour of our Czech, Slovak and Austrian assets. All this while we continued to exceed the targets as set out during the IPO.

How can you continue to develop at a YoC of above 10% in the current economic environment?

Our construction costs are coming down. While in 2022, construction costs on average were around €550 / sqm, in 2023 we expect them to be below or around €500 / sqm, as the construction market is cooling down. As we act as our own general contractor, CTP is typically one of the first in the industry to notice these trends. In addition, market rents continue to increase due to strong demand and lower supply. These two effects combined allow us to continue to develop at a YoC of above 10%, while staying competitive.

What is your expected like-for-like rental growth in 2023?

As at year-end 2022, roughly 50% of our contracts had a double indexation clause, with indexation being the higher of (i) a fixed escalator of between 1.5%–2.5% or (ii) the local or European Consumer Price Index (“CPI”). The remaining 50% of the contracts have only a fixed escalator. Based on this mix and the levels of the local and European CPI, we expect indexation to contribute around 6% to the like-for-like rental growth, on top of which we will have the reversion of expiring leases. The reversionary potential at year-end 2022 stood at 12.5%.

How do you expect your pre-letting to evolve going forward?

Based on continued strong demand, we expect to be able to deliver projects 80%–90% pre-let at completion. This is in line with our track record—for example the projects delivered in 2022 were around 80% let at delivery. Typically, CTP starts with a slightly lower pre-letting, however, 58% of CTP’s projects that are currently under construction are at an existing park, where CTP has clear visibility on future tenant demand, as most new leases are signed with existing clients. Starting the construction in advance gives CTP a competitive advantage when tenants need space available within a short timeframe.

What will happen to valuations?

In the second half we saw valuations come down slightly on a like-for-like basis, due to 39 bps yield widening, which was almost fully offset by strong Estimated Rental Value (“ERV”) growth. Looking forward, we expect continued support for valuations by further ERV growth, as vacancies remain low and demand high. Furthermore, we foresee overall less yield widening in CEE than in Western Europe, where yields had tightened much more—resulting in an increased yield spread—due to the more active transaction market in Western Europe, while in CEE most investors developed assets for their own portfolio, leading to a lower number of transactions. We expect this increased yield spread to reverse, also given the higher growth prospects for CEE.

How will you fund your ambitious development pipeline?

The current bond markets are dislocated, so we expect to rely more on the bank lending market in 2023, where rates are more attractive. In September 2022, we obtained a nine-year €400 million secured facility from a consortium of Czech banks and in December 2022, a seven-year €175 million secured facility from two Dutch banks. We currently have several other facilities in the pipeline. In addition, we have a strong cash flow from operations, which is expected to be between €350–€400 million in 2023. With a dividend pay-out ratio of 70%–80% and on average roughly 50% cash and 50% scrip take-up during the last three dividend payments, this translates into a significant amount of retained earnings to fund the development pipeline.

What makes CTP believe so strongly in the CEE region?

The CEE region is “business-smart”, with competitive total labour costs that are one-third of what they are in Western Europe and comparable with China, strong work ethics and high infrastructure investments. There are several secular demand drivers: (i) nearshoring, as companies look to de-risk and shorten their supply chains, with CEE countries ranked high as likely destinations; (ii) continued e-commerce growth, which comes from a low base; and (iii) professionalisation of supply chains, with above-average GDP growth forecasts for the CEE region and the rise of the middle class supporting consumption. As CEE markets are still undersupplied in terms of GLA per capita and new supply barriers are rising, CTP is uniquely positioned, thanks to its first-mover advantage and strategically positioned landbank, to further bolster its dominant position.

What are your capital allocation priorities?

Investing in our pipeline is the priority, as we can do so at a very attractive YoC of above 10%. For this we plan to mobilise our existing landbank, which was valued at €763 million as at 31 December 2022, allowing us to optimise financial returns. New landbank acquisitions are preferably done through options—limiting capital outflows, while giving CTP maximum flexibility—which is feasible in the current market, as the market for land acquisition has slowed down. We will also look opportunistically to benefit from the current volatile macro-environment, which we expect will offer acquisition opportunities.

Excluding Poland, where the Group has more speculative developments in new parks as part of its market entry.

Company Introduction / Investor Relations Q&A
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Maarten Otte
HEAD OF INVESTOR RELATIONS
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OPERATOR STORY: LONG-TERM PARTNER TO OUR CLIENTS
Providing the full spectrum of in-house and onsite Parkmaking services to support our tenants’ growth strategies creates long-term value for CTP. Maintaining client intimacy helps drive repeat-business—a cornerstone of our successful strategy.
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CTP Strategy & Outlook
2.1 CTP’s Business: The Parkmaker “wheel of growth”
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Delivering sustainable growth via the “wheel of growth” model
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Energy as a cross-cutting business
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2.2 Growth Plan and Target
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Four strategic pillars
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Capitalising on market opportunities
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2.3 Outlook for 2023
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CTP Strategy & Outlook
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CTP Strategy & Outlook
CTP Strategy & Outlook

CTP’s strategy has been the same since the Company’s start in 1998: to develop, own and operate state-of-the-art business parks in strategic locations that support long-term growth and value creation. The Company’s unprecedented success stems from its entrepreneurial spirit, market insight, and first-mover advantages in business-smart CEE markets. The same combination of forces that made CEE shine over the past quarter century—strategic location, developed transport infrastructure, lower costs, and well-educated workforce—are today even more valuable, as supply-chain security in Europe is now critical. CTP’s successful recent expansion into Western Europe and further entrenchment of its market-leader status in CEE enables it to provide seamless, value-driven property solutions across ten European markets. The outlook is for continued growth in 2023 and for the medium term on the back of increasing rental income streams, favourable market conditions and the Company’s ability to mobilise its existing strategic landbank to meet growing demand. CTP leadership is confident that secular growth drivers remain in place for its markets and industry and has targeted yield on cost (“YoC”) of 10.1% for new developments in 2023.

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2.1 CTP’s Business: The Parkmaker “wheel of growth”

CTP’s Parkmaker “wheel of growth” business model consists of two interconnected core business units that encompass the Group’s activities: as a developer, where CTP invests in developing cost-efficient, future-proof buildings suited for multi-generational leasing, leveraging its strategically located landbank; and as an operator, where CTP manages and operates its properties to service its international client base to maximise value. The Parkmaker “wheel of growth” demonstrates how these two core units of CTP’s activities come together, in conjunction with the Group’s new energy business. CTP’s strategy enables the Company to retain ownership and maintain long-term client relationships, thereby offering value attributes to clients far beyond four walls and a roof.

DELIVERING SUSTAINABLE GROWTH VIA THE “WHEEL OF GROWTH” MODEL

CTP’s successful property and client relationship management lead to satisfied clients by enabling them to focus on their core business activities. CTP’s existing clients—the vast majority of which are large multinationals—provide for future growth, both at their current location and at new locations, including in other countries. CTP’s park strategy—which is based on scaling up its parks by adding onsite services, improving infrastructure for its clients and allowing clients to expand in existing locations, together with the strategic use of its landbank and in-house capabilities—enables the Group to realise industry-leading development returns.

ENERGY AS A CROSS-CUTTING BUSINESS

The Group’s new sustainable energy business is an additional source of income for CTP. The Group’s properties provide significant potential to install rooftop solar panels and wind turbines. CTP currently has 38 MWp of installed solar power capacity. Building on the momentum created by recent geopolitical developments, which emphasise the need for more self-reliant sourcing of energy, and increasing environmental pressure, CTP plans to monetise its energy-generating installations and provide tenant-friendly solutions. Offering energy solutions has a positive impact on a tenant’s total cost of occupancy, their carbon footprint, and their energy security.# CTP Strategy & Outlook

ORGANIC GROWTH

CLIENT TE A M S PA R K MANAGEMENT BUSINESS CONTINUITY SCALING SERVICES IN-HOUSE CONSTRUCTION PA R K DEVELOPMENT QUALITY & MAINTENANCE YoC PERFORMANCE SATISFIED CLIENTS STAKEHOLDER & COMMUNITY CLIENT- L E D GROWTH V A L U E C R E A T I O N V A L U E C A P I T A L I S A T I O N E S G & E N E R G Y I N N O V A T O R F U T U R E - P R O O F P A R K M A K E R S OPERATOR DEVELOPER CTP PARKMAKERS CLIENTS SPACE

CTP’s Business: The Parkmaker “wheel of growth” Strengthening Relationships Landbank Utilisation

2.2 Growth Plan and Target

CTP targets to own and operate a pan-European network of business parks with total GLA of 20 million sqm before the end of the decade— almost doubling its current portfolio of 10.5 million sqm and generating annual rental income of €1 billion while continuing to develop at an industry-leading YoC of above 10%. CTP expects that the scale of its business, its flexibility in offering its clients scalable solutions and its ESG commitment will continue to position the Company ahead of its competitors. The Group’s strong liquidity position and capital structure enable it to act quickly to sieze opportunities. Key factors of CTP’s continued market leadership are its client intimacy and business ecosystem combined with its strategic landbank, especially in or adjacent to existing parks. This enables cli- ents to expand at existing locations. CTP's in-house capabilities allows for fast construction in strategic areas. In addition, the rooftop capac- ity of CTP’s buildings allows the Group to develop a sizable renewable energy business delivering attractive returns with a YoC above 15%.

FOUR STRATEGIC PILLARS

CTP’s strengths and competitive edge in the areas of occupier demand, ESG, capital, and landbank come together in its “wheel of growth” model and are expressed as four strategic pillars of the Company’s business strategy.

1. Profitable & Exponential Growth
   CTP’s in-house construction teams and centralised procurement capabilities, together with increasing market rents, enable the Company to continue to deliver at an industry-leading double-digit YoC. CTP plans to double its current GLA through the utilisation of its existing landbank and the further development of current and future CTParks, leveraging its existing tenant base, with whom al- most two-thirds of new leases are signed. The Company expects ad- ditional revenue growth to be achieved by its new energy business. Since its start in 1998, CTP has assembled one of continental Europe’s largest industrial and logistics real estate portfolios. The Company actively evaluates and manages its CTParks and collab- orates with its clients to identify and execute asset management initiatives, which preserve and enhance the investment portfolio’s long-term performance.

   • €1 billion rental income
   • 20 million sqm GLA
   • Between now and end of 2029

2. Sustainable & Innovative
   CTP enhances its product offering by having ESG as an integral part of its Parkmaker concept, which enables the Group to have access to lower-cost funding. To continue meeting its ESG objectives, the Group has established a dedicated ESG function. CTP’s overall ESG strategy is based on four guiding principles: (i) striving to be climate positive; (ii) embedding parks in communities; (iii) stimulating so- cial impact & well-being; and (iv) conducting business with integ- rity. Focus areas have been adjusted based on the outcome of the materiality assessment and targets have been set up accordingly. These principles support ten of the 17 United Nations Sustainability Development Goals. To minimise its carbon footprint, CTP focuses on construction and operations. CTP’s long-term ambition is to become carbon neu- tral in line with the Paris Agreement. This would enable the Com- pany to derive all of the economic and employment benefits from its CTParks with no negative impact on the environment. CTP’s ESG strategy entails more than becoming climate positive—it implies a relationship with local communities, stimulating social impact and conducting business with integrity.

3. Entrepreneurial & Driven
   Integral to the achievement of CTP’s ambitious goals and targets is its team, which at-end 2022 consisted of 699 committed employ- ees. In 2022 CTP continued to have a healthy gender diversity ratio of 54% male and 46% female. The CTP team’s proven expertise and comprehensive market intelligence form the core of the Company’s competitive advantage and its ability to provide shareholders with superior and sustainable returns. Equally, the Group’s dynamic and agile culture—its committed “hands-on” and “can do” approach— combined with the team’s energy and passion, are essential for CTP to grow and successfully execute all elements of its strategy. CTP’s organisation is comprised of an international team and country teams. CTP country teams play a pivotal role in securing operational results. By establishing and managing local stake- holder relations, CTP can accelerate development and proactively take land positions at strategic locations. CTP’s international team provides central support by way of scalable systems and process- es, as well as funding for local development projects. CTP ensures best-in-class governance through the Compliance, Risk Manage- ment, Internal Audit and Corporate Secretary functions.

4. Engaged & Connected
   CTP’s relationships and reputation among those with whom the Company engages provide a significant competitive advantage. The Group leverages its relationships with stakeholders that are di- rectly or indirectly invested in its success as a strategic value driver. CTP’s teams connect and build relationships for the long term. CTP is aware that its activities impact the environment where the Company co-exists with surrounding communities. The Company’s partnership approach and proactive engagement with communities, local authorities and municipalities ensure that the value it delivers goes well beyond the financial returns for shareholders; it extends to delivering economic and social value to the wider ecosystem in the long run. In 2022, the Company increased the level of ESG compliance for all suppliers by introducing a Suppliers’ Code of Conduct (for mate- rials and services). CTP’s Compliance team verifies that all require- ments in the Suppliers’ Code of Conduct are met. CTP has a long-standing tradition of caring for communities and people. Increasingly, the Company’s ESG strategy is aimed at insti- tutionalising this and integrating charity and community develop- ment into operations.

CAPITALISING ON MARKET OPPORTUNITIES

The Industrial & Logistics (“I&L”) sector is transitioning from being a pure cost-centre to a driver of companies’ performance (see Section 3.1 for more details). This transition results in a holistic view of real es- tate in a client’s total operations, including labour, total supply-chain costs and ESG. CTP accommodates this by:

• improving efficiency in networks, thanks to its strategically located CTParks and building lay-out, while optimising the total cost of oc- cupancy;
• supporting increased ESG-requirements focused on “green” supply chains and providing amenities/services to attract and retain a local workforce;
• preparing properties with sustainable energy sources and energy security, which is especially key when client operations are highly automated;
• guaranteeing high transparency and ease of doing business with flexibility and speed via established business teams and scale to ex- pand at existing and/or new locations and markets.

With its business model and strategy, CTP is well positioned to capi- talise on market opportunities, accommodate changing client require- ments and provide resiliency in years to come. This is reflected in the Company’s high repeat-business, with almost two-thirds of the leases signed in 2022 with existing clients. CTParks provide positive cluster- ing effects for all stakeholders:

• for CTP—by enabling market leadership, efficiency, growth with ex- isting clients, and client intimacy, allowing for industry-leading re- turns;
• for Clients—by providing the opportunity to expand at the same location, improved infrastructure, the exchange of expertise and services between clients, and scale to have access to services and amenities for their employees that are not feasible for stand-alone units; and
• for Communities—by providing access to services offered at parks and green area development.

Growth Plan and Target

2.3 Outlook for 2023

Markets are expected to remain volatile in 2023, and CTP continues to monitor events closely. However, as highlighted in Section 3.1, the I&L sector has proven to be resilient, as it is mainly driven by secular drivers of demand and rising barriers to new supply. At the same time, market turbulence can create opportunities, and CTP’s strong balance sheet allows for new opportunities. CTP continues to see a strong operational backdrop, with high tenant demand and vacancies close to record lows in many markets, allowing the Company to generate strong rental growth going forward. This growth, together with the impact of deliveries coming online, will drive CTP’s earnings. For 2023, CTP expects a Company Specific Adjusted EPRA earnings growth of 18%, from €0.61 per share in 2022 to €0.72 per share in 2023.

CTP Strategy & Outlook

GROWTH TARGET

	20 Mil. sqm
Year End 2018
2013
2006
1998
2029
2028
2026
Year End 2022

Mil. sqm	10	5	2	1	0

Landbank allows CTP to reach 20 million GLA target

• 2.5 mil. sqm p.a. Increase by half current construction output
• 1.8 mil. sqm p.a. Improve current construction output
• 1.5 mil. sqm p.a.# CTP N.V. 2022 Form 10-K

2022 in Review

CTP reports strong financial and operational results for 2022 and is confident of further growth in 2023 and beyond, based on secular growth drivers that favour the Company’s industry and markets. The need to strengthen European supply-chain resiliency, the on-going growth of e-commerce, and nearshoring trends—particularly in the business-smart CEE markets where CTP is the market leader—helped CTP grow its portfolio by a record 2.9 million sqm of GLA during 2022, crossing the 10 million sqm threshold and reaching 10.5 million sqm at year-end.

3.1 Business Environment and Trends

The resiliency of Europe’s Industrial & Logistics (“I&L”) sector is underpinned by multiple demand drivers and elevated barriers to new supply. Drivers of demand are diverse and include nearshoring, e-commerce and undersupplied markets. Elevated barriers include increased scarcity of land and a stricter regulatory environment.

RESILIENCY SUPPORTED BY SECTOR DRIVERS AND BARRIERS

Historically, the European I&L sector has outperformed the wider economy. A comparison of GDP growth and the growth of occupied logistics stock supports this view. In 2009–2022, total GDP growth was 12%, while occupied grade-A logistics stock more than doubled, as markets are driven by multiple demand drivers and are undersupplied. A similar analysis of office space growth (+15%) reveals that the office sector is more aligned with the GDP trend and can therefore be considered as more cyclical. The proven resiliency of I&L supports a positive outlook, despite the current turbulent macro-economic conditions.

I&L real estate has transitioned from being purely a cost centre to a driver of operational performance, as companies prioritise the efficiency, reliability, flexibility, and agility of their supply-chain networks. Grade A real estate can support these priorities. This transition to a driver of performance makes sense from a core supply-chain cost perspective as well. According to CBRE Supply Chain Advisory, the highest share of logistics spend is on transportation (45%–70%). The share of fixed facility costs (including real estate) is relatively small, accounting for only 3%–6%. CBRE estimates that it takes roughly an 8% increase in fixed facility costs to equal the impact of just a 1% increase in transportation costs. This is particularly important in an environment of high transportation costs and the greening of supply chains.

NEARSHORING IS A DURABLE SOLUTION FOR CLIENTS TO MITIGATE MARKET VOLATILITY

An immediate response to mitigate the risks of supply chain disruptions is for companies to hold higher inventories. Risks of disruptive events seem here to stay, and companies are prioritising the more durable solution of decoupling global supply chains by nearshoring their operations closer to consumers. In addition to risk mitigation, another reason to prioritise nearshoring is the accelerated wage growth in traditionally low-cost Asian manufacturing markets. The trade-off between low-cost production in Asia and longer supply chains is no longer as attractive. According to Economic Research Institute and Salaryexpert.com, the average hourly rate for a forklift operator is at the same level in mainland China as in the Czech Republic. In CTP’s other CEE markets, rates are even lower. A third reason supporting nearshoring is its reduced environmental impact: a company can significantly lower its carbon footprint by reducing the intercontinental trans-shipment of goods and materials.

Most of the demand driven by nearshoring is expected to be concentrated in CEE – the “business smart” region of Europe. The region is well situated from a geographical perspective, delivering access to the whole of Europe from a cost-effective location, supported by modern logistics infrastructure and connectivity and benefiting from major transportation hubs close to Europe’s largest markets with high purchasing power. Equally, in terms of industrial activity, the region boasts high-end manufacturing capabilities in locations close to university cities with access to a highly skilled and motivated workforce. Favourable labour costs further contribute to cost-effective operations. Total labour costs in the transportation & storage and manufacturing industries in CEE are approximately one-third less compared to Western Europe. For these reasons, the CEE region is attractive for companies seeking to take advantage of nearshoring, near-sourcing, and friend-shoring. The CEE’s favourability is reflected in multiple surveys, including the sourcing strategy report by Maersk. For European companies, three of the top ten countries across the globe for nearshoring are in CEE. In addition to Poland, which heads the list, the ranking also includes Romania and the Czech Republic.

E-COMMERCE IS MATURING, RESULTING IN DIVERSE DEMAND AND CONTINUED LONG-TERM GROWTH

Online retail sales in Western Europe have recently stabilised in the post-lockdown era. This comes after the acceleration of online sales growth during the Covid-19 pandemic. The main reasons of this temporary pause are consumers returning to physical retail (“revenge shoppers”) and increased caution on spending due to macro-economic conditions. However, penetration levels today and in the future remain well above the pre-pandemic trendline. Retail experts foresee sustained e-commerce growth over the medium term, as its benefits (price transparency, product availability and speed) are hard to replicate. Diversifying e-fulfilment demand is a result of more product categories (e.g., groceries) moving online, particularly since the pandemic. There is a broad range of sectors and company sizes active in CTP’s markets. Demand is diverse but client requirements are focused on proximity to end-consumers, availability of labour, sufficient/reliable energy and the opportunity to expand.# Business Environment and Trends

To successfully execute an on-line or omnichannel retail model, e-tailers require more flexible, well-located logistics properties that can accommodate their entire product range and enable them to deliver orders and manage returns quickly and cost effectively. All CEE countries where CTP is active are forecasted to see continued growth, but maturity differs. This is reflected in the online sales penetration levels. Slovakia, Romania, Hungary and Bulgaria are expected to reach a critical mass in years to come with average penetration levels at ~15% by 2026. Poland and the Czech Republic are expected to have one of the highest online sales ratios in Europe by 2026 and are benefitting from significant e-commerce related demand already. Despite buoyant growth projections for the next four years, CEE penetration levels (20%) are still well below the United Kingdom (33%), illustrating the future growth potential for the CEE region.

LONG-TERM TREND OF DIVERSE DEMAND AND UNDERSUPPLIED MARKETS ISOLATES MARKET VOLATILITY

Demand in Europe’s I&L sector is broad-based and originates from a diverse pool of client categories. This is reflected in CTP’s portfolio, as the Group’s top 50 clients represented only 32.8% of total Gross Rental Income in 2022. This diversity across a wide range of categories isolates the risk of becoming too dependent on a single sector or client. CTP’s client base is diverse, particularly in CEE markets, given the higher share of final assembly and value-add services. This diverse demand is taking place in a market that is tight, as vacancy across Europe is near record lows. I&L is undersupplied, as the sector is a relatively young asset class compared to other commercial real estate. The pan-European market only emerged following the establishment of the Schengen visa-free trade zone. Undersupplied markets create structural demand as clients continue to upgrade to modern grade-A stock. Growth markets in CEE, such as Bulgaria, Romania and Serbia, have <0.35 sqm of grade-A stock per capita, which places them among the most undersupplied markets in Europe. These under-supplied markets are catching up, fuelling demand as they move closer to European averages. However, differences between markets remain, given differences in wealth and role in the pan-European supply chain.

ELEVATED SUPPLY BARRIERS DUE TO LAND SCARCITY AND RISING REGULATORY REQUIREMENTS CREATE STRUCTURAL CONSTRAINTS

Barriers to new supply are expected to rise in years to come. This mitigates the risk of potential oversupply and is expected to keep market vacancy rates at low levels. Land is (extremely) scarce in more mature markets such as Germany, the Netherlands, Austria and the Czech Republic. Supply barriers are rising in other CEE markets as well, particularly at sites close to key economic clusters.

The second driver of constraints are rising regulatory requirements. Obtaining permits to (re)develop requires more time, delaying future new supply. Long and expanding regulatory requirements is a trend seen across Europe but is most visible in markets with the tightest supply, e.g., Germany and the Czech Republic. In Western European markets, acquiring a permit takes on average from one and a half to almost three years. Permitting timelines are expanding for multiple reasons, including lack of staff at public authorities and/or stricter requirements. In Western European countries, permitting timelines are five to ten months longer compared to the situation pre-pandemic (2019). Although the CEE countries CTP is active have also seen an increase in the time required to obtain a permit, the number of months remains much lower, reflecting the more business-friendly approach. As supply barriers are rising, today’s infill markets are expected to become ultra-infill in the future. Therefore, supply barriers are also a driver of future rent growth performance.

THE INTERPLAY BETWEEN STRUCTURAL DEMAND AND SUPPLY TRENDS SHAPES MARKET FUNDAMENTALS

In many of CTP’s markets, vacancy levels remain at historic lows due to structural demand drivers and rising barriers. In nine of the ten countries where CTP operates, market vacancy in Q4-2022 was lower compared to their three-year quarterly averages, which were already considered as low. Since the 2007–2009 global financial crisis ("GFC"), the I&L sector has matured and institutionalised. This has led to more disciplined supply and structurally lower vacancy levels compared to 2007, leading to I&L being better positioned than during the GFC. Low availability is a challenge for clients that need to expand, but it is a driver of rent growth. The second driver of rent growth is continued elevated demand. Despite macro-economic turmoil, demand held up in 2022 and sentiment remained (cautiously) optimistic. After an all-time record net absorption (change of occupied stock) in 2021, CBRE reports the second-highest net absorption of over 20 million sqm for 2022 (EU-9 countries, as of Q4 2022). Completions have slowed in the second half of 2022, but remain high from a historic perspective (EU-9 countries, as of Q4 2022). Most new supply is built-to-suit, as demand is high and availability low. For 2023, a further slowdown of completion levels is expected, driven by rising supply barriers and increased financing challenging for some (trader) developers. The continued supply-demand imbalance fuels rent growth. Rising replacement costs—a combination of increasing land values and construction costs—have put upward pressure on rents as well. The war in Ukraine resulted in a strong spike of construction costs in the first half of 2022. In second half of the year construction costs declined but remained elevated. This clearly had an impact on the Polish market, where rents increased by over 30%, as developers needed to integrate spiking construction costs into rents. The combination of low vacancy, continued elevated demand, disciplined new supply and rising replacement costs resulted in outsized rental growth in many markets in 2022. European average rent growth was over 10% in 2022, the highest level ever recorded. Two of the top-three fastest-growing markets are in CEE, due to a combination of supply-demand imbalance (particularly the Czech Republic) and rising replacement cost (particularly Poland). Germany and The Netherlands benefit of multiple demand drivers; including entry point to Europe, economic backbone of the Continent and large concentration of affluent consumption centres. At same time, these markets are being faced with high regulatory barriers and low land supply, leading to a structural demand and supply imbalance. A driver of rent growth today and expected in nearby future.

CAPITAL MARKETS SHIFTED TO PRICE DISCOVERY AND UNCERTAINTY

Commercial real estate, including I&L, saw a change from continued strong capital growth at the start of the year, to more uncertainty around capital values and a slowdown of growth at end-2022. CEE markets are differently positioned, as they have not seen the high degree of compression as in Western Europe. Given the macro-economic uncertainty, including rising interest rates, price discovery continues. Continued strong rent growth, partly driven by indexation, can have the ability to offset widening yields, as seen in CTP’s Q4-2022 valuations.

2022 in Review

Note: Countries include BE, CZ, FR, DE, IT, NL, PL, ES, UK. Logistics and GDP is at the national level, occupied stock growth for offices is capital cities only.
Source: CTP Research and Strategy, IMF, CBRE, Colliers

Fig. 1 Growth comparison: GDP, office and logistics sectors in 2009–2022 (index 2009=100)

	GPD	Office: Occupied Stock	Logistics: Occupied Stock
12
15
116
120
100
80
60
40
20
0
Source: CTP Research and Strategy, Eurostat

Fig. 2 Difference in labour costs (transportation and storage sector) compared to EU-27 avg. in 2021 (EU-27 avg.: €19.3/hr) (in %)

Country	Difference
Netherlands	28%
Poland	17%
Romania	-49%
Austria	48%
Germany	100%
Czech Republic	50%
Slovakia	0%
Hungary	-55%
Bulgaria	-58%
Serbia	-60%
	-62%
	-73%
	-74%
Source: CTP Research and Strategy, Oxford Economics, Eurostat, Statista

Fig. 3 E-commerce penetration (%)

Year	UK	AT	HU	BG	RO	SK	RS	NL	PL	DE	CZ
2010
2014
2018
2022	26.9%	4.3%	8.6%	9.8%	11.5%	11.8%	16.2%	16.8%	17.9%	16.1%	71
2011
2015
2019
2023F
2012
2016
2020
2024F
2013
2017
2021
2025F
2026F	35%	30%	25%	20%	15%	10%	5%	0
Source: CTP Research and Strategy, CBRE, Colliers

Fig. 4 GLA per capita (in sqm)

Country	GLA per capita
Netherlands	2.22
United Kingdom	1.25
Poland	1.15
France	1.01
Austria	0.70
Spain	0.97
CTP Countries	0.69
EU-19 Countries	0.69
Italy	0.68
Portugal	0.67
Romania	0.65
Belgium	0.44
Germany	0.43
Czech Republic	0.42
Slovakia	0.40
Sweden	0.32
Hungary	0.26
Bulgaria	0.64
Serbia	0.22
CTP countries
European countries
Source: CTP Research and Strategy, CBRE, Colliers

Fig. 5 Zoning & permitting times / market (months)

Growth	Core Western Europe
40
30
20
10
0
Source: CTP Research and Strategy, CTP’s local construction leads

Fig. 6 Market vacancy rates (in %)

Country	Q4 2022	Three-Year Quarterly Average	Absorption (L) million sqm	Completions (L) million sqm	Vacancy rate (R) %
Austria	6.8%	5.3%	2.0%	1.1%	0.3%
Slovakia	3.1%	2.4%	4.0%	4.0%	6.1%
Hungary	3.8%	5.8%	5.4%
Czech Republic
Netherlands
Germany
Bulgaria
Poland
Romania
Serbia
	8%	6%	4%	2%	0%
Note: vacancy level of Hungary, Romania, Serbia and Bulgaria is based on the capital city
Source: CTP Research and Strategy, CBRE, JLL, Colliers

Note: Countries included: BE, CZ, FR, DE, IT, NL, PL, ES, UK

Source: CTP Research and Strategy, CBRE, JLL, Colliers# 7 Market fundamentals (sqm / %)

	2010	2011	2019	2020	2021	2022	2018	2012	2013	2014	2015	2016	2017
	25.0	20.0	15.0	10.0	5.0	0	9.0%	8.0%	7.0%	6.0%	5.0%	4.0%	3.0%

Operational Performance

CTP continued its strong operational performance in 2022, as the Group capitalised on strong occupier demand as well as its unique in-house capabilities and strong cash-flow-generating portfolio. Delivering on its promises as set during its IPO in 2021, the Group is well positioned for its next growth phase, with the target to reach 20 million sqm before the end of the decade.

STANDING PORTFOLIO

Over the past 24 years, CTP has grown into Europe’s largest listed industrial and logistics landlord. The Group develops, owns and manages a high-quality portfolio of assets in over 200 locations spanning ten countries and serving over 1,000 clients. The scale and quality of its investment portfolio, with its highly diversified tenant base, underpins CTP’s ability to deliver resilient, growing cash flows and attractive capital appreciation over the longer term. In an increasingly competitive market, the Group’s “Parkmaking” expertise and vertically integrated operating platform are integral to its ability to execute its strategy and deliver growth and performance across its market-leading portfolio situated throughout continental Europe. The Group increased the size of its investment portfolio to 10.5 million sqm of GLA at end-2022, from 7.6 million sqm at the end of 2021. CTP completed 1.0 million sqm of developments and acquired 1.8 million sqm of value-add and income-producing assets, which drove the growth in GLA.

2022 in Review

GRI 201-1

The acquisition of assets is part of CTP’s strategy and will either be in response to a customer requirement, adjacent to existing CTP properties, or to provide the Company with a foothold in a new country. The Group accelerated its acquisition programme in 2022 and purchased a total of 1.8 million sqm of assets. The acquisition of Deutsche Industry REIT AG (“DIR”), with a total of 1.6 million sqm, made up the largest part of the Company’s acquisitions in 2022 and secured an attractive entry point for the Group in the German market. The strength of the Company’s reputation and established network of relationships enabled it to make most of these acquisitions off-market.

CTP benefits from first-mover advantage and established scale in its four Core Markets, which together represent 76% of the Group’s total GLA. It remains the largest owner of industrial and logistics real estate assets in the Czech Republic, Romania, Hungary, and Slovakia, with a combined market share in the four countries of 27.8% at year-end (31 December 2021: 27.5%) as measured by in-place GLA. The level of its market share illustrates that the Group has become partner of choice for industrial and logistics occupiers in key CEE markets.

CTP continued to make strong progress in 2022 within its Growth Markets. In Poland it aims to secure a competitive market position within the next three to five years, while it already has a market-leading position in Serbia and Bulgaria.

The Group’s next 12 months’ revenue increased to €589 million (31 December 2021: €437 million), an increase y-o-y of 35%. The main drivers of this increase were the integration of DIR into CTP (€65 million), 2022 deliveries (€32 million), income growth in the standing portfolio (€31 million), future developments (€13 million) and acquisitions (€11 million).

An increasing proportion of the rental income stream generated by CTP’s investment portfolio benefits from contracted annual rental growth and inflation protection. Since end-2019, all of the Group’s new lease agreements include a double indexation clause, which calculates annual rental increases as the higher of:
* a fixed increase of 1.5%–2.5% a year; or
* the Consumer Price Index.

As at 31 December 2022, 49% of income generated by the Group’s portfolio includes this double indexation clause, and the Group is on track to increase this to around 70% by the end of 2023. The remaining 51% of the portfolio has only a fixed increase of 1.5%–2.5% a year, and therefore more reversionary potential built-in. The indexation takes place on 1 January of each year in majority of the contracts.

The Company’s occupancy stood at 94% at year-end (31 December 2021: 95%), or 95% excluding Germany. CTP targets an occupancy rate of at least 95% with a few percentage points of vacancy, as this flexibility is key to optimise tenant relationships and drive rental growth. Therefore, CTP starts some developments before having secured pre-letting; however, this is concentrated in existing parks, where the Company has good visibility on future demand and knows the market well. This allows CTP to have a market-leading tenant retention rate of 90% (31 December 2021: 92%).

The rental income generated by CTP’s portfolio is underpinned by a wide and diversified international tenant base of blue-chip companies from a broad range of industries. These include manufacturing, high-tech/IT, automotive, and e-commerce, retail, wholesale, and third-party logistics. This tenant base represents a solid balance between diversification and concentration for the Group, with no single tenant accounting for more than 2.5% of its annual rent roll. CTP’s top 50 occupiers account for 32.8% of its rent roll.

The rent collection level increased to 99.7% (31 December 2021: 99.4%).

In total, the Company signed 1,883,000 sqm of leases (2021: 1,704,000 sqm), of which 142,000 sqm are future projects. The large amount of sqm signed for future projects is a clear illustration of continued strong occupier demand.

In 2022, CTP realised a like-for-like growth of 4.5%, mainly driven by reversion and indexation. The weighted average unexpired lease term (“WAULT”) of CTP’s investment portfolio stood at 6.5 years at the period end (31 December 2021: 6.7 years), in line with the Company’s target of >6 years. The reversionary potential stands at 12.5% as at 31 December 2022, illustrating the future rental growth potential. Based on the expiry schedule, the Group is expected to be able to capture more than 50% in the coming five years.

During 2022, leases were signed on average 6.5% above their Estimated Rental Value (“ERV”), supporting both the Group’s reversionary potential and valuations, with an increasing trend from 4.6% in Q1-2022 to 12.5% in Q4-2022.

	YE 2018	YE 2019	YE 2020	YE 2021	YE 2022
Growth of GLA by driver (in '000s sqm)	10,467	2,850	782	1,735	500
	4,600				1,039
					1,811
				7,617

Fig. 8 Growth of GLA (in '000s sqm)

	YE 2021	YE 2022
Deliveries	1,039	1,811
Acquisitions, Divestments & GLA Adjustments	7,617	10,467

Fig. 9 Growth of GLA by driver (in '000s sqm)

	YE 2019	YE 2020	YE 2021	YE 2022
	24.2%	23.9%	27.5%	27.8%
	25.1%	27.3%
		26%	27%	28%
		25%	26%	27%
		24%	25%	26%
		23%	24%	25%
		22%	23%	24%
		21%	22%	23%

Fig. 10 CTP market share evolution of in-place GLA, Core Markets * (in %)

* CZ, RO, HU, SK Source: CBRE

	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Average 2022
	33.4%	27.3%	31.8%	25.1%
	40%	35%	30%
	25%	20%	15%	10%	5%
	0

Fig. 11 CTP market share of take-up, last four quarters, Core Markets * (in %)

* CZ, RO, HU, SK Source: CBRE

	2018	2019	2020	2021	2022
Occupancy (in %)	94%	95%	95%	95%	94%

Fig. 12 Occupancy (in %)

	2018	2019	2020	2021	2022
Tenant retention (in %)	86%	83%	92%	92%	90%

Fig. 13 Tenant retention (in %)

	YE 2021	YE 2022
CTP Germany	437	589
Standing assets		65
Deliveries 2022		32
Acquisitions		11
Future developments		13

Fig. 14 Next 12 months’ contracted revenue (€ million)

	2018	2019	2020	2021	2022
Collection rate * (in %)	99.2%	99.8%	99.7%	99.4%	99.7%

Fig. 15 Collection rate * (in %)

* Germany included from 2022. Excluding Germany, occupancy stood at 95%.
* Based on uncollected rent that was written off

	2018	2019	2020	2021	2022
	1.5%	1.5%	1.6%	3.8%	4.5%
	5.0%	4.0%	3.0%	2.0%	1.0%
	0

Fig. 16 Like-for-like rental growth * (in %)

	2018	2019	2020	2021	2022
	5.4	5.4	6.0	6.7	6.5
	8	6	4	2	0

Fig. 17 WAULT to expiry (years)

	2018	2019	2020	2021	2022
Leasing activity development ('000s sqm)	727	1,143	1,704	1,883
	2,000	1,500	1,000	500	0

Fig. 18 Leasing activity development ('000s sqm)

	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Average 2022
Leasing vs. ERV (%)	4.6%	6.0%	6.2%	12.5%
	14%	12%	10%	8%	6%
	4%	2%	0%

Fig. 19 Leasing vs. ERV (%)

	2023	2024	2025	2026	2027
Annualized Rent ERV	10.6%	11.4%	13.8%	11.1%	16.0%
Reversion (%)	12.0%	8.0%	4.0%	0%

Fig. 20 Expiring annualised rental income, ERV & reversionary potential (€ millions, %)

	Growth Markets	Group Core Markets	Western Markets
Reversionary potential by market (%)	27.6%	12.5%	8.9%
	30%	20%	10%
	0%

* In 2022, CTP changed its reporting methodology to adhere to EPRA standards, 2021 is calculated for comparison purposes.

Fig. 21 Reversionary potential by market (%)

DEVELOPMENT

CTP continued its disciplined investment in its highly profitable pipeline. In 2022 the Group completed 1.0 million sqm of developments (2021: 0.9 million sqm), which were approximately 80% let and which will generate an annualised contracted rental income of €45 million. Deliveries in 2022 were back-end loaded, as some projects were delayed in order to benefit from the decreasing construction cost during the second half of the year, with the delivery of some projects also slipping into 2023. Main deliveries were: 60,000 sqm in CTPark Bor (leased to GXO Logistics), 40,000 sqm in CTPark Iłowa (leased to Hermes OTTO), 34,000 sqm in CTPark Bucharest North (leased to Mediplus). Despite the overall higher construction cost during 2022, by capitalising on strong occupier demand, low vacancies and the growth of market rents, CTP was able to deliver projects in 2022 with a YoC of 10.1% (2021: 11.2%). For the 1.7 million sqm of projects under construction at the period end, the estimated YoC remained strong at 10.1%.# 2022 in Review

Projects under construction—which are at a record high—have an annualised income potential of €115 million. Poland is the country with the highest amount of sqm under construction, where the Group is doing more speculative development as part of its market-entry strategy. CTP’s has a long track record of delivering sustainable growth through its tenant-led development in its existing parks. Fifty-eight percent of the Group’s projects under construction 1 and 62% of its landbank is in the vicinity of its existing parks, which typically provides the benefit of existing infrastructure and zoning. This allows the Group to mitigate development risk and respond swiftly to the expansion re- quirements of existing clients. In 2022 demand from existing clients, either expanding operations within their current location or signing a new lease for space elsewhere in the CTPark Network, represented 54% of leases by sqm, or 63% re- stated for the Tesco, international fashion retailer and LPP deals (the three largest deals signed during 2022). CTP’s landbank amounted to 20.3 million sqm at year-end (2021: 17.8 million sqm), which allows the Company to reach its target of 20 million sqm GLA before the end of the decade. The Group replenishes and grows its landbank on a continuous ba- sis. CTP focuses on acquiring development sites that are adjacent to existing parks or in sought-after locations with proximity to strong logistics hubs and transport corridors and large, densely populated cities. In 2022, the Group invested €279 million (2021: €193 million) to expand its landbank (excl. options), focusing particularly on acquiring sites within its Growth Markets. CTP’s landbank is either held directly in ownership or controlled by way of exclusive long-term option agreements. CTP can typically exer- cise such option agreements once the appropriate zoning is received, which is an effective risk management approach, as while they require typically a small down payment, it delays the Group’s capital deploy- ment until there is a clear development potential. As at 31 December 2022, 22% of the landbank was comprised of options, while the remaining 78% was owned and accordingly reflected on the balance sheet. The total landbank, which is part of the Group’s Investment Properties, was valued at €733 million (2021: €527 million). The revaluation in 2022 amounted to €3 million (2021: €43 million).

1 Excluding Poland, where the Group has more speculative developments in new parks as part of its market entry.

Operational Performance

GLA Delivery

Fig. 22 GLA delivery per quarter of own development ('000s sqm)

Year	Q1	Q2	Q3	Q4	YE
2021	6,195	110	330	553	47
2022	7,000	6,000	5,000	4,000	3,000
	2,000	1,000	0
	2018	2019	2020	2021	2022

Fig. 23 Estimated yield on cost, projects under construction (in %)

Year	Estimate (%)
2022	11.0%
	10.1%
	11.6%
	13.5%
	10.8%
	16%
	14%
	12%
	10%
	8%
	6%
	4%
	2%
	0%

Fig. 24 Under construction 2022 ('000s sqm)

Category	YE 2021	YE 2022	Change
New Projects	1,726	1,807	81
Deliveries		-585
Deliveries started in 2022		-454
	958

Fig. 25 GLA under construction by country ('000s sqm)

Country	YE 2021	YE 2022
Poland		500
Romania		237
Serbia		170
Netherlands		120
Hungary		206
Bulgaria		100
Austria		89
Slovakia		38
Czech		265

Fig. 26 Projected annualised rental income per country, IPuD (%)

Country	Projected Annualised Rental Income (€ million)
Czech Republic	€115 million
Netherlands	13%
Hungary	10%
Poland	22%
Romania	10%
Serbia	10%
Slovakia	2%
Austria	5%
Bulgaria	6%

Landbank Evolution

Fig. 27 Landbank evolution ('000s sqm)

Category	YE 2021	YE 2022	Change
New acquisitions	17,831	20,297	2,466
Transfer to IP/IPuD	-3,039
Disposal (incl. option expiries)	-2,674	-2,896	-222
Transfer from land under option to land owned	-3,039	6,913	9,952
	11,075

Fig. 28 Value of current landbank by country (in %)

Country	Value (%)
Czech Republic	27%
Serbia	7%
Netherlands	8%
Hungary	10%
Poland	14%
Romania	19%
Slovakia	11%
Austria	1%
Other	1%
Bulgaria	2%

Fig. 29 Acquired landbank (excl. options) ('000s sqm)

Quarter	Q1	Q2	Q3	Q4	YE
2022	891	2,962	1,493	1,567	6,913
	8,000	7,000	6,000	5,000	4,000
	3,000	2,000	1,000	0

ENERGY

In line with its ESG ambitions CTP further accelerated its roll-out of solar photovoltaic (“PV”) systems in its parks, boosting the Company’s energy business. By year-end CTP had installed 38 MWp, and its tar- get is to add at least an additional 100 MWp over the course of 2023. The Group targets a YoC of 15% for these investments, based on nor- malised pricing assumptions. The Company’s largest PV installations currently in operation in- clude CTPark Amsterdam City, CTPark Rotterdam, CTPark Bor and CTPark Bucharest West. The income from its energy business in 2022 amounted to €4.3 mil- lion, up 33% compared 2021, on the back of higher energy prices and increased capacity. CTP expects to be able to triple the income of its energy business in 2023. To get a better understanding of tenant energy compensation on a real-time basis and help tenants to improve their energy efficiency and implement energy savings, in 2022 the Group started with the roll-out of smart metres.

Fig. 30 Income from the sale of solar electricity (€ '000s)

Year	Income (€ '000s)
2018	3,185
2019	3,254
2020	3,236
2021	4,301
2022	3,326
	5,000
	4,000
	3,000
	2,000
	1,000
	0

Fig. 31 Total installed capacity (in MWp)

Country	Installed before 2022	Installed in 2022	Total YE 2022
Netherlands	6.1	38.4	7.3
Czech Republic	6.4
Romania	10.9
Hungary	3.6
Slovakia	1.9
Poland	0.3
Serbia	0.3
Bulgaria	14.4
Austria
Germany
	20	15	10
	5	0

3.3 Financial Performance

In 2022, CTP continued to deliver on its promises with another year of strong financial performance, despite the macroeconomic and geopolitical volatility seen throughout 2022. CTP delivered a record high 1.0 million sqm of GLA (excluding acquisitions), which brough the total GLA of its investment portfolio at the end of the year to 10.5 million sqm, while keeping its robust balance sheet and sound financial policy.

In € million	2018	2019	2020	2021	2022
Rental income	242.0	258.0	291.9	334.7	485.0
Net rental income	232.2	239.8	280.7	326.9	452.1
Operating profit (excl. valuation result)	243.0	211.1	239.7	276.3	360.3
Net valuation result on investment property	239.4	406.8	152.2	1,100.6	723.6
Profit/loss before finance costs	482.4	617.9	391.9	1,376.8	1,083.9
Profit for the period	361.5	392.2	252.5	1,025.9	796.5

Revenues

CTP increased its Net Rental Income (“NRI”) by 38.3% to €452.1 mil- lion compared to €326.9 million in 2021, driven by new developments and like-for-like growth of 4.5% across the Group’s markets. The Company’s NRI in its Core Markets grew by 22.6% y-o-y to €385.4 mil- lion, while cumulative NRI in its Growth and Western European Mar- kets grew y-o-y by 438.8% to €66.7 million. The significant growth in Growth and Western European Markets is partly attributable to the acquisition of Deutsche Industrie REIT AG “DIR” on 3 February 2022, when CTP Acquired 80.9%, followed by a merger on 23 August 2022 through which CTP gained 100% ownership in DIR, which has been in- tegrated into CTP and is fully consolidated in the FY-2022 financial statements. Since end 2019, all of the Group’s new lease agreements include a double indexation clause which calculates annual rental increases as the higher of:

• a fixed increase of 1.5%–2.5% a year; or
• the Consumer Price Index.

As at 31 December 2022, 49% of income generated by the Group’s portfolio includes this double indexation clause. The remaining 51% has only fixed increase of 1.5%-2.5% per year. By year-end 2023, CTP expects roughly 70% of its lease agreements to have the double index- ation clause. Indexation takes place on 1 January of each year, and therefore the growth in rental income relating to 2022 inflation will only be recorded in the 2023 like-for-like rental growth. Group NRI in 2022 was supported by high collection rates and rever- sion on expiring leases being captured. The NRI to rental income margin decreased y-o-y from 97.7% to 93.2%, mainly due to the acquisition of DIR, however, during the second half of the year the company made significant efficiency gains in its property operating expenses, bringing the Q4-2022 NRI to rental income margin back to 94.7% Net Operating Income (“NOI”) from hotel operations partially recovered from the negative impact of Covid-19 on global travel and increased to €3.7 million from a loss of €2.6 million in 2021. The Group’s NOI from development activities within its industrial and logistics portfolio de- creased slightly from €9.4 million in 2021 to €9.0 million in 2022. As at 31 December 2022, the Group had 38MWp of installed pho- tovoltaic capacity, much of which was rolled out towards the end of the year. Income attributable to energy generation was €4.3 million in 2022.

Administrative and operating costs

The Group’s administrative and operating costs increased from €58.3 million in 2021 to €103.3 million in 2022. The increase in operating costs reflects the growth of the Company in 2022 and is driven primar- ily by the increase of full-time employees (FTEs) from 520 to 699. CTP also donated €10 million to the UNHCR to help mitigate the migration crisis resulting from the war in Ukraine, which is a one-off expense and adjusted for in the Company specific adjusted EPRA earnings. The non-recurring costs related to the acquisition of DIR amounted to €4.5 million.

Foreign currency

CTP has minimum exposure to currency risk, as all of the portfolio’s lease agreements are denominated in euros. Net currency conversion risks noted on the balance sheet are also limited, as the valuations of the Group’s properties together with all interest-bearing debt are de- nominated in euros. In terms of transactional currency, a small amount of construction costs is denominated in local currencies. However, this brings limited exposure, as rents related to developments are set at levels that take such risks into account at the time of procurement.# Taxation

The Group’s effective tax rate decreased slightly from 19.6% in 2021 to 19.3% in 2022. 83.6% of the overall tax expense is a deferred tax expense connected to the net valuation result on Investment Property. The Group’s current tax expense increased from €28.4 million in 2021 to €31.3 million in 2022.

Profit

The profit after tax for the period decreased by 22.4% to €796.5 million compared to €1,025.9 million in 2021. This decrease is driven by the lower net valuation result. Company specific adjusted EPRA earnings increased from €186.1 million in 2021 to €265.5 million in 2022. The difference between EPRA earnings and IFRS profit is attributable to several one-off events of which the most significant were: i) Bond repayment costs of €10.4 million, ii) a donation of €10 million to the UNHCR, and iii) DIR acquisition cost of €4.5 million. The Company specific adjusted EPRA earnings per share increased to €0.61 compared from €0.49 in 2021, which represents a 26% increase and is ahead of the guidance that the Group gave.

Dividends

On 9 June 2022 the Group paid out the final 2021 dividend. Shareholders representing approximately 88% of the total number of outstanding ordinary shares chose to receive the dividend in cash, while shareholders representing approximately 12% of the total number of outstanding ordinary shares opted for payment in stock.

On 5 September 2022, CTP paid out its interim dividend of €0.22 per ordinary share for the first half of 2022, which represents 75% of Company specific adjusted EPRA earnings, in line with the Group’s dividend policy of paying out 70%–80% of its Company specific adjusted EPRA earnings. Shareholders were given the choice to receive the 2022 interim dividend in either cash or in shares. The number of dividend rights that equates to one new ordinary share was set at 62.5. A total of 41% of shareholders opted for payment of the interim dividend in stock. Following the pay-out, CTP’s total number of shares stood at 444 million shares at year end.

CTP will propose a final 2022 dividend of €0.23 per ordinary share to the AGM on 25 April 2023. Subject to approval by the AGM, the total 2022 dividend will amount to €0.45 per ordinary share, representing a pay-out of 74% and growth of 29% compared to 2021.

Financial Performance

Investment portfolio

The value of the Group’s Investment Property increased by 33.7% from €7,575.1 million as at 31 December 2021 to €10,124.2 million as at 31 December 2022. This growth is partly driven by an increase in the Group’s GLA of 2.9 million sqm, comprising 1.0 million sqm of development completions and 1.8 million sqm of strategic acquisitions, of which 1.6 million sqm is related to the acquisition of DIR. The standing portfolio had a positive revaluation in the first half of the year due to the estimated rental value (“ERV”) growth. In the second half of the year, the portfolio was affected by a 39 bps reversionary yield widening from 6.4% to 6.8%, which was however almost fully offset by the continuing growth of the ERV resulting in a like-for-like valuation growth of -0.69% in H2-2022. The like-for-like valuation growth can be split between a yield impact of -4.90% and impact of increased ERVs and others of +4.21%. The gross portfolio yield was at 6.5% as at 31 December 2022, compared to 6.4% as at 31 December 2021.

The Group’s Investment Property under Development (“IPuD”) increased to €1,193.3 million as at 31 December 2022, compared to €774.2 million as at 31 December 2021. This increase is mainly driven by the increased pipeline, with 1.7 million sqm of GLA under construction (31 December 2021: 1.0 million sqm). The value of the Group’s landbank, which is part of its Investment Property, increased from €526.8 million to €762.9 million at end-2022, following an active year from a transaction perspective. The Group acquired 6.9 million sqm of land (excl. options) for €278.5 million during 2022.

The 2022 revaluation can be broken down into:

In € million	H1-2022	H2-2022	FY-2022
Standing assets	370.3	-123.9	246.4
2022 acquisitions	-9.9	35.5	25.6
2022 deliveries	6.9	135.1	142.0
IPuD	106.8	200.2	307.0
Landbank	24.9	-22.3	2.6
Total	499.0	224.6	723.6

EPRA NTA

The Group’s EPRA Net Tangible Assets (“EPRA NTA”) increased from €12.06 per share as at 31 December 2021 to €13.81 per share as at 31 December 2022. This 14.5% increase is mainly attributable to the profit generated by the Group, offset by dividend distribution.

2022 in Review

3.4 Funding and Hedging

GRI 201-1

The Group continued to take a prudent approach to financial policy and credit metrics to navigate the uncertain market conditions witnessed in 2022. CTP ended the year with a solid liquidity profile and conservative repayment profile, with the first material bond repayment in Q4-2023, after which its next material maturity is not until mid-2025. The Group’s Loan-to-Value (“LTV”) at end-2022 was 45% and its Interest Coverage Ratio (“ICR”) stood at 4.6 times. The Group’s average Cost of Debt increased from 1.2% as at 31 December 2021 to 1.5% as at 31 December 2022 due to the impact of rising interest rates throughout 2022. The impact of higher interest rates on the Company’s current debt is limited, as 100% of the debt is fixed / hedged.

CTP pre-hedges upcoming and future funding requirements using derivatives to lock into advantageous interest rates. CTP constantly monitors the financial markets to identify optimum timing and relative value opportunities, and hedges are implemented with global investment banks as soon as there is certainty about the funding needs.

On 20 January 2022, CTP issued a €700 million four-year green bond under its Euro Medium Term Notes (“EMTN”) Programme. With this financing, the Group secured a large proportion of its financing needs early in the year, with the annual coupon fixed at 0.875%. Together with the issue of the new bond, €168.2 million of the October 2025 Series was tendered successfully. Following the acquisition of DIR, the Group decided to repay early a €118 million bond from DIR due in August 2022, which had an average interest rate of 4%. In addition, the Company leveraged its strong relationship with its banking partners and renegotiated in February one of its facilities, which resulted in a reduction of the margin and an extension of the maturity by an additional three years, until 15 February 2034. In September the Group signed an extension of its loan facility with a syndicate of Czech banks, obtaining €400 million with a fixed interest rate of 4.71% and a maturity of nine years.

In December, the Group signed a loan facility with two Dutch banks, obtaining €175 million with a fixed interest rate of 4.27% and a maturity of seven years. The Group’s available cash and cash equivalents as at the year-end stood at €660.6 million. Further to the dealerships with ten banks in its EMTN Programme, CTP holds strong relationships with some 15 internationally operating lending institutions. Ten of these participate in CTP’s €400 million three-year unsecured Revolving Credit Facility (“RCF”), which was committed in July 2021 and serves the Group’s short-term liquidity needs. In addition, as described above, two different senior secured credit facilities have been granted by syndicates of lending institutions, each of which funds a portfolio of properties. During 2022, CTP complied with all conditions that are applicable to these credit facilities.

The EMTN Programme enables the Group to issue green bonds on the Dublin Euronext Exchange, the first of which was listed on 1 October 2020. To date, the Group has concluded the following bond issues:

Commitment	Series	Issue Date	Coupon	Maturity
€650 million*	Oct2025	01/10/2020	2.125%	5 years
€400 million	Nov2023	27/11/2020	0.625%	3 years
€500 million	Feb2027	18/02/2021	0.75%	6 years
€500 million	Jun2025	21/06/2021	0.5%	4 years
€500 million	Jun2029	21/06/2021	1.25%	8 years
€500 million	Sept2026	27/09/2021	0.625%	6 years
€500 million**	Sept2031	27/09/2021	1.50%	10 years
€700 million	Jan2026	20/1/2022	0.875%	4 years

• outstanding balance as at 31 December 2022 was €331.8 million
  ** outstanding balance as at 31 December 2022 was €549.5 million

In September 2022, CTP published its second Green Bond Report. This report includes an overview of the use of bond proceeds for funding eligible projects (i.e., green buildings) and features a second-party opinion by Sustainalytics, Inc.

In September 2020, the Company received a long-term issuer rating of BBB- (stable outlook) from S&P and a long-term issuer rating of Baa3 (stable outlook) from Moody’s. These ratings are applicable to the unsecured debt that CTP N.V. has issued. Both rating agencies have assigned a stable outlook to each of their respective ratings for the Group and reconfirmed the rating in 2022.

Cash flow overview

In € million	2022	2021
Cash at beginning of the year	892.8	419.1
Cash flow from operational activities	300.3	139.1
Cash flow from investing activities	-1,364.8	-1,435.2
Cash flow from financing activities	837.2	1,768.7
Cash at the end of the period	660.6	892.8

Despite the increased operating costs in 2022, the increase in the Group’s rental income ensured that cash flow arising from operating activities remained strong, increasing from €139.1 million in 2021 to €292.0 million in 2022. The portfolio’s attractive WAULT of 6.5 years provides visibility of income security. EBITDA (excl. net valuation result) grew from €284.7 million to €371.0 million with EBITDA margin, decreasing due to the one-off factors such as the gift to UNHCR and acquisition of DIR. The Group’s cash flow used for investment activities was reduced in 2022, as a result of record levels of constructions and associated capital expenditure as well as acquisitions made during the period.In- vestments in development increased from -€599.6 million in 2021 to -€870.7 million in 2022, with in total 1.0 million sqm delivered in 2022. The cash consideration for the acquisition of DIR amounted to €0.3 million. The cash flow from financing activities amounted to €837.2 million in 2022, following CTP’s €700 million bond issuance in January, the €400 million loan facility extension in September and the new €175 million loan facility in December. This enabled the Group to fund both its development activities during the year, as well as to pre-fund part of the pipeline of developments for 2023. The Group paid out €124.0 million in dividends during 2022 and repaid €391.2 million of bonds and loan facilities.

Post-period events

On 20 Feburary 2023, CTP announced that it successfully signed an extension of its RCF. The size of the RCF, which has a maturity of three years with two one year extension options, was increased from €400 million to €500 million. While initially a standard margin is applicable, there is the potential to make the facility sustainability-linked, with the margin depending on CTP’s achievement on certain defined sus- tainability KPI’s.

2022 in Review

Funding and Hedging

Fig. 32 Gross Rental Income by country (€ '000s)

Country
Czech Republic	230,301
Romania	84,013
Germany	58,512
Slovakia	37,118
Serbia	12,706
Bulgaria	6,648
Others	6,740
Hungary	48,978

Fig. 33 Net Rental Income by country (€ '000s)

Country
Czech Republic	215,536
Romania	85,730
Germany	41,919
Slovakia	36,351
Serbia	12,264
Bulgaria	6,150
Others	5,956
Hungary	48,228

Fig. 34 Projected % of leases linked to CPI

	Q2	Q3 2022	Q4 2023E
70%		45%	70%
60%		50%
50%		40%
40%		30%
30%		20%
20%		10%
10%		0%
0%	49%	38%

Fig. 36 Value of Investment Property by country (%)

Country
Czech Republic	51%
Hungary	9%
Romania	16%
Germany	0%
Bulgaria	3%
Slovakia	7%
Serbia	2%
Austria	6%
Poland	3%
Netherlands	25%

Fig. 37 Value of Investment Property under Development by country (%)

Country
Hungary	8%
Romania	5%
Germany	9%
Slovakia	6%
Serbia	5%
Czech Republic	16%
Poland	26%

Fig. 35 Investment Property evolution (€ millions)

	1 January 2021	Transfer from/to Investment Property Under Development	Acquisitions	Additions/ Disposals	Net Valuation Result	1 January 2022	Transfer from/to Investment Property under Development	Acquisitions	Additions/ Disposals	Net Valuation Result	31 December 2022
	10,000					10,124
	8,000
	6,000
	4,000
	2,000
	0	5,386	7,575
Like-for-Like Revaluation Yield Impact ERV & Other Impact

Fig. 38 Value of landbank by country (%)

Country
Poland	19%
Czech Republic	31%
Hungary	10%
Romania	13%
Slovakia	11%
Netherlands	5%
Austria	2%
Serbia	4%
Germany	2%
Bulgaria	2%
Other	1%

Fig. 39 H2-2022 like-for-like revaluation

6.0%
4.0%
2.0%
0
-2.0%
-4.0%
-6.0%

Fig. 40 Net valuation result on Investment Property by country (%)

Country
Poland	20%
Czech Republic	55%
Hungary	6%
Romania	9%
Slovakia	3%
Netherlands	2%
Austria	2%
Serbia	3%
Germany	-1%
Bulgaria	1%

Fig. 41 EPRA NTA per share

Year
2018	8.32
2019	4.07
2020	7.57
2021	12.06
2022	16.00
	14.00
	12.00
	10.00
	8.00
	6.00
	4.00
	2.00
	0
	13.81

Fig. 42 Company specific adjusted EPS (€)

	2018	2019	2020	2021	2022
	0.61	0.44	0.32	0.38	0.49
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

Fig. 43 Cost of debt (in %)

	2018	2019	2020	2021	2022
1.5%
2.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0
	2.5%	2.1%	1.2%

Fig. 44 LTV (in %)

	2018	2019	2020	2021	2022
45%
51%
80%
60%
40%
20%
47%
50%
43%

Fig. 45 Available liquidity (€ billion)

	2018	2019	2020	2021	2022
1.1
0.5
1.2
1.0
0.8
0.6
0.4
0.2
0
0.1	1.1

Fig. 46 Unsecured debt (in % of total debt)

	2018	2019	2020	2021	2022
31%
31%
80%
70%
60%
50%
40%
30%
20%
10%
0	4%	75%	68%

Debt maturity profile (€ million)

	Q4 2022	Q4 2021
Less than 1 Year	1,065	524
<2	516	79
<10+<9<3	512	325
<4	1,045	425
<5	904	146
<6	1,235	708
<7	524	24
<8	1,488	418
	2,000
	1,500
	1,000
	500
	0
	23	29
	708	418
	24	146
	1,488	418
	2,000
	1,500
	1,000
	500
	0

Fig. 47 Covenants

Year	Secured Debt Test	Covenant level max 40%	Interest Cover Ratio min 1.5	Unecumbered Assets Test min 125%
2020	73%	3.8	139%
2021	12%	5.0	194%
2022	15%	4.6	185%

2022 in Review / Funding and Hedging

A map showing CTPark locations across Europe.

Group-level Insights

CTPark Network

CTP’s unmatched industrial and logistics portfolio—the CTPark Network— is the cornerstone of a resilient European supply chain. The CTPark Network is the largest integrated network of premium business parks in continental Europe. With over 400 locations and a strategic landbank, the CTPark Network provides seamless property solutions for companies to grow, from the North Sea to the Black Sea.

Core Markets

CTP is the leading logistics player as measured by owned industrial GLA in each of its most established Core Markets: the Czech Republic, Romania, Hungary, and Slovakia. In these four markets combined, CTP further increased its market share to 27.8% as at end-2022. As of 31 December 2022, the Group owned the four-largest industrial parks in the CEE region, including CTPark Bucharest West and CTPark Bucharest in Romania and CTPark Brno and CTPark Bor in the Czech Republic.

Growth Markets

In recent years CTP has diversified its portfolio and successfully executed its tenant-led expansion into the three new key markets of Serbia, Bulgaria and Poland. They are referred to as “Growth Markets”, where CTP aims to become a prominent player in the medium term.

Western European Markets

CTP’s access to international capital markets has facilitated its mar- ket entry in Austria and the Netherlands, as well its strategic acquisi- tion to enter Germany. These Western European Markets now enable the Company to service its tenants from the North Sea to the Black Sea, along all main European transit routes, and to grow with them.

GRI 201-1

2022 in Review

A map showing CTPark locations across Europe.

Top 10 Parks 2022

The top 10 parks make up 36% of the GLA in CTP’s portfolio. The top 10 parks are home to roughly half of CTP’s 1,000+ clients; and have a development opportunity of more than 1.3 million sqm GLA. The top 10 parks represent the core of the CTPark Network. They are thriving business communities, with a dynamic mix of clients from a broad range of industries.

Key Data: Top 10 Parks

	Total portfolio	Top 10	Top 10 as % of total portfolio
GLA ('000s sqm)	10,467	3,881	36%
Under construction ('000s sqm)	1,726	154	9%
Landbank ('000s sqm)	20,297	2,639	13%
Tenants (#)	1,000+	606	n/a
Buildings (#)	690	192	28%
WAULT (years)	6.5	6.4	n/a
Occupancy (%)	94%	95%	n/a

Year start	Rank	Park	Country	GLA 2021 (sqm)	GLA 2022 (sqm)	Share of GLA	Total landbank (sqm)	Under construction (sqm)	Total properties	Occupancy	WAULT	Tenants
2015	1	CTPark Bucharest West	RO	747,000	767,000	8%	1,333,000	94,000	17	96%	5.9	68
2006	2	CTPark Bor	CZ	554,000	640,000	7%	134,000	-	15	96%	7.0	36
2015	3	CTPark Bucharest	RO	544,000	547,000	6%	206,000	-	41	97%	4.0	151
2005	4	CTPark Brno	CZ	502,000	504,000	5%	237,000	39,000	25	100%	6.9	68
2006	5	CTPark Ostrava	CZ	388,000	390,000	4%	20,000	-	28	97%	10.1	120
2016	6	CTPark Budapest West	HU	228,000	292,000	3%	188,000	8,000	15	97%	5.1	53
2002	7	CTPark Modřice	CZ	207,000	205,000	2%	27,000	-	19	96%	4.6	49
2020	8	CTPark Bucharest North	RO	63,000	198,000	2%	30,000	13,000	8	67%	7.5	15
2015	9	CTPark Budapest East	HU	182,000	191,000	2%	3,000	-	6	95%	6.5	25
2015	10	CTPark Trnava	SK	118,000	162,000	2%	452,000	-	15	100%	5.5	21

Top 10 Deals

Reported period 2022

Rank	Tenant	Short	Sqm signed	Park	Country	Industry	Existing client?
1	TESCO		99,000	CTPark Sziget	HU	Retail	N
2	International fashion retailer		88,000	CTPark Ploiesti	RO	Retail	N
3	LPP Logistics		66,000	CTPark Bucharest West	RO	Retail	N
4	K&N		52,000	CTPark Bucharest West	RO	3PL	Y
5	BJS		47,000	CTPark Humpolec	CZ	Manufacturing	Y
6	Lidl		41,000	CTPark Sofia West	BG	Retail	Y
7	Hermes		40,000	CTPark Iłowa	PL	3PL	N
8	Jusda		37,000	CTPark Pardubice	CZ	3PL	Y
9	Henniges		37,000	CTPark Hranice	CZ	Manufacturing	Y
10	Arctic		36,000	CTPark Pitesti

1. CTPark Bucharest West GLA 767,000 sqm (2015)

6. CTPark Budapest West GLA 292,000 sqm (2016)

3. CTPark Bucharest GLA 547,000 sqm (2015)

7. CTPark Modřice GLA 205,000 sqm (2002)

8. CTPark Bucharest North GLA 198,000 sqm (2020)

9. CTPark Budapest East GLA 191,000 sqm (2015)

10. CTPark Trnava GLA 162,000 sqm (2015)

4. CTPark Brno GLA 504,000 sqm (2005)

5. CTPark Ostrava GLA 390,000 sqm (2006)

2. CTPark Bor GLA 640,000 sqm (2006)

Group-level Insights 99

3.6 Tenants

CTP has a wide and diversified international tenant base of blue-chip companies with good credit ratings from a broad range of industries. These include manufacturing (high- tech/IT, automotive) and e-commerce, retail, wholesale, and third-party logistics. CTP’s tenant roster of over 1,000 companies represents a solid balance between diversification and concentration for the Group, with no single tenant accounting for more than 2.5% of its annual rent roll. A diversity of clients and industries are critical to build a resilient, future-proof portfolio:

• Warehousing & logistics is a key sector for CTP, and 3PLs, who may serve one or more clients at a specific location. They are in particular focused on strategic locations to optimise their operations. Many clients in this category are international players, which provide opportunities to cross-sell across markets and countries.
• Retail is a growing segment for CTP, due to the sector’s historical stronger presence in Western Europe (including the UK), where the retail industry, particularly non-food and e-commerce, has a higher presence. However, retailers have started looking more to CEE markets, driven by an emerging middle class, higher growth of disposable income and outsized e-commerce growth in the region.
• Manufacturing is strongly represented in CTP’s portfolio, with clients generally signing longer leases, as relocating is costly and capital intensive. CTP expects strong demand as a result of the near-shoring trend.
• Automotive is also strongly represented in CTP’s portfolio due to the large clusters of manufacturers moving to the lower-cost but educated workforce that CEE offers. Automotive manufacturers can be found in Poland, Romania, Slovakia, the Czech Republic, and Hungary, as well as in CTPs newer markets like Serbia. The growing trend to develop new EV innovations will generate more demand in markets offering significant available workforce and technical education, government incentives and proximity to suppliers.

2022 in Review 100

Fig. 49 Client occupied GLA by industry (in %)

Manufacturing	3PL	Automotive	Wholesale Trade	Retail Trade	Services	Other	Finance, Insurance, Real Estate
31%	27%	21%	7%	7%	3%	3%	1%

Fig. 50 Occupancy by building size (in % GLA)

10,000—40,000	Less than 10,000	Over 40,000
62%	16%	22%

Tenants 101

Fig. 51 Top 50 clients, industrial grouping as a share of GRI (%)

3PLs	Automotive	E-commerce, Retail, Wholesale & Distribution	Manufacturing	High Tech
11%	9%	6%	4%	4%
36.7% TOP 50 share of rented GLA
32.8% TOP 50 share of GRI
3PLs	Automotive	E-commerce, Retail, Whoesale and Distribution	High Tech	Manufacturing
1. DHL	3. Yanfeng	8. Primark	14. Honeywell	7. Deli Home
2. Quehenberger	11. Faurecia	13. Schwarz Group	19. Wistron InfoComm	12. JV Europe
4. DSV	17. Brembo	18. Profi Rom Food	22. Thermo Fisher Scientific	15. ZETOR Tractors
5. Loxxess	21. Bridgestone	24. METRO CASH & CARRY	30. Lenovo	23. Kompan
6. Raben	26. International Automotive Components	25. Network One Distribution		29. Haupt Pharma (Aenova)
9. Schenker	27. Kohl Automotive	28. Tech Data		33. Linea Mexx (Mobexpert)
10. Maersk	32. Adient	34. Orbico		38. DSL
16. GXO	35. Grammer	36. Versandhaus (babywalz)		39. Fasana
20. Kühne Nagel	41. Grupo Antolin	37. Mediplus Exim		45. BJS
31. Gebrüder Weiss	43. Autoneum	40. Rohlík		48. Sihl
42. Dachser	46. Aptiv	44. ALDI
49. Hermes Group	50. Lear Corporation

2022 in Review 102

Rank	Clients	SQM	Of Total rented GLA	Buildings	Parks	Countries	Industry	Credit Ratings: Moodys	S&P	Fitch
1	DHL	229,000	2.4%	22	14	4	3PL	A2	BBB+
2	Quehenberger	167,000	1.8%	15	7	4	3PL
3	Yanfeng	149,000	1.6%	7	3	3	Automotive
4	DSV	127,000	1.3%	10	5	3	3PL	A3	A-
5	Loxxess	125,000	1.3%	4	1	1	3PL
6	Raben	107,000	1.1%	11	11	5	3PL
7	Deli Home	104,000	1.1%	20	1	1	Manufacturing
8	Primark	93,000	1.0%	1	1	1	E-commerce, Retail, Whoesale and Distribution	A
9	Schenker	92,000	1.0%	11	8	4	3PL
10	Maersk	92,000	1.0%	3	1	1	3PL	Baa2	BBB+
11	Faurecia	91,000	1.0%	5	5	3	Automotive	BB	BB+
12	JV Europe	83,000	0.9%	6	4	1	Manufacturing
13	Schwarz Group	80,000	0.8%	9	6	4	E-commerce, Retail, Whoesale and Distribution
14	Honeywell	80,000	0.8%	6	2	1	High Tech	A2	A	A
15	ZETOR Tractors	76,000	0.8%	4	1	1	Manufacturing
16	GXO	72,000	0.8%	4	1	1	3PL	BBB-	BBB
17	Brembo	67,000	0.7%	3	1	1	Automotive
18	Profi Rom Food	66,000	0.7%	2	1	1	E-commerce, Retail, Whoesale and Distribution
19	Wistron InfoComm	66,000	0.7%	2	1	1	High Tech
20	Kühne Nagel	65,000	0.7%	8	5	3	3PL
21	Bridgestone	62,000	0.7%	1	1	1	Automotive	A2	A
22	Thermo Fisher Scientific	60,000	0.6%	1	1	1	High Tech	A-	BBB+
23	Kompan Czech Republic	58,000	0.6%	4	1	1	Manufacturing
24	METRO CASH & CARRY	57,000	0.6%	2	2	1	E-commerce, Retail, Whoesale and Distribution	BBB-
25	Network One Distribution	57,000	0.6%	4	1	1	E-commerce, Retail, Whoesale and Distribution
26	International Automotive Components	57,000	0.6%	4	2	2	Automotive	BBB-	BBB
27	Kohl Automotive	56,000	0.6%	1	1	1	Automotive
28	Tech Data	53,000	0.6%	1	1	1	E-commerce, Retail, Whoesale and Distribution
29	Haupt Pharma	53,000	0.6%	1	1	1	Manufacturing
30	Lenovo	50,000	0.5%	2	1	1	High Tech	Baa2	BBB-	BBB
31	Gebrüder Weiss	50,000	0.5%	9	6	4	3PL
32	Adient	49,000	0.5%	2	2	1	Automotive	BB-
33	Linea Mexx	47,000	0.5%	3	2	1	Manufacturing
34	Orbico	47,000	0.5%	2	2	2	E-commerce, Retail, Whoesale and Distribution
35	Grammer	47,000	0.5%	2	1	1	Automotive
36	Versandhaus	46,000	0.5%	1	1	1	E-commerce, Retail, Whoesale and Distribution
37	Mediplus Exim	46,000	0.5%	3	3	1	E-commerce, Retail, Whoesale and Distribution
38	DSL	44,000	0.5%	1	1	1	Manufacturing
39	Fasana	44,000	0.5%	1	1	1	Manufacturing
40	Rohlík	43,000	0.5%	5	5	3	E-commerce, Retail, Whoesale and Distribution
41	Grupo Antolin	43,000	0.5%	3	3	3	Automotive
42	Dachser	43,000	0.5%	4	4	3	3PL
43	Autoneum	42,000	0.4%	3	2	2	Automotive
44	ALDI	41,000	0.4%	3	1	1	E-commerce, Retail, Whoesale and Distribution
45	BJS	41,000	0.4%	4	1	1	Manufacturing
46	Aptiv	41,000	0.4%	2	2	2	Automotive	BBB	BBB
47	Sihl	41,000	0.4%	1	1	1	Manufacturing
48	IRON Mountain	41,000	0.4%	3	2	2	High Tech
49	Hermes Group	40,000	0.4%	1	1	1	3PL
50	Lear Corporation	40,000	0.4%	5	4	3	Automotive	BBB-	BBB

Top 50 Clients

Tenants 103

To meet the requirements of global business, CTP has developed five bespoke building types ranging in size and functionality to support a broad spectrum of business activities. CTP’s property types have been designed to accommodate the full range of size requirements and cater to a broad spectrum of industries and sectors, including logistics, e-commerce, manufacturing and supply chains, as well as high-tech manufacturing, advanced R&D, and back-office operations. Each building type can be fully customised to the tenant’s exact requirements and is easily modernised to accommodate a new generation of clients.

2022 in Review 3.7

Five Building Types 104

• ctBox From 400-850 sqm
• ctFlex 1,150-3,000 sqm
• ctSpace from 5,000 sqm
• ctLab from 195 sqm
• ctFit from 5,000 sqm

Five Building Types 105

CTPark Ostrava demonstrates how successfully the five property types serve a wide variety of industries and company size and function. CTP has developed all property types in the park, providing long-term resilience and economic stability to the region with a range of companies, from large international blue-chip companies to local startups.

• ctBox
• ctFlex
• ctSpace
• ctFit
• Clubhaus
• ctLab

2022 in Review Property Types: One size does not fit all

Planned 106

Five Building Types 107

ctBox

Designed for local companies and startups. This simple and functional building provides three necessary areas for a smooth running business: showroom, office space and warehouse. As companies grow, it is easy for them to expand their retail, light manufacturing, or test facilities, etc.

From 400-850 sqm

Typical Usage
B2B retail, showrooms, warehousing / production

Typical Size
400-850 sqm

Standard Height
7 m

Floor Loading
500 kg/sqm (Office), 4 tn/sqm (Warehouse) or 3.2 tn for rack support

Standard Grid
15×24 m, office in-built reduced up to 5×6 m

Tenants
ABB AG Foods Ahifi AkzoNobel Amber Plasma Amtech Amtech Ascendum Hansgrohe Hecht SIEMENS Vekra Windows Vertiv Zenith

109

ctFlex

Built with flexibility in mind for growing businesses, ctFlex offers a modifiable and expandable concept for small- and mid-sized companies with built-in offices and warehouses. CTFlex allows companies to focus on their business without being worried about having enough space for operations.

1,150-3,000 sqm

Typical Usage
Production/warehousing in smaller units that can be merged as clients grow

Typical Size
1,150–3,000 sqm

Standard Height
10.5 m

Floor Loading
5,000 kg/sqm or 3.2 tn for rack support

Standard Grid
12×24 m

Tenants
Allogi Assa Abloy BJS BoBaek DHL Gebrüder Weiss Hella MAPO Medical PaletExpress PPL Rehau Polymer Toyota Logistics Wacker-Chemie Well Well Foods

111

ctSpace

Top-quality buildings for global companies designed to accommodate warehousing and distribution needs. The CTSpace concept is ideal for logistics operations, distribution centres or supply -chain hubs.# CTPark Prague North, Ostrava Poruba, Brno, Brno Líšeň, and Bor are a few of our crowning highlights that I’m very proud of, and we have a lot more ahead of us that I’m excited about.”

Jakub Kodr MRICS, HEAD OF BUSINESS DEVELOPMENT, CZECH REPUBLIC

“2022 handed us some unprecedented situations, but we learned and achieved a lot during the year. We ended 2022 with an outstanding four million sqm of leasable space in the Czech Republic, with an occupancy rate above 98%. Overall, I’m proud of our team, the high level of service we provide our tenants, and our results. We’re more than ready to take on 2023!”

MACROECONOMICS INDICATORS

Population	10.5 mil.
Credit rating	Aa3
Hourly compensation in manufacturing	€21.90
GDP per capita growth forecast CAGR	1.3%
E-commerce forecast CAGR	9.9%

MARKET INDICATORS

Total stock	10.8 mil. sqm
Annual growth rate of stock	11.9%
CTP market share	28.0%
Net take-up	1.5 mil. sqm
CTP share net take-up	17.0%
Market vacancy rate	1.2%
Prime rent (€/sqm/yr)	€94.8
Prime yield	4.75%

CTP INDICATORS

Locations	56
GLA	3,805 thousand sqm
Project under construction	265 thousand sqm
Landbank	6,592 thousand sqm
GAV (in € million)	5,515
LFL Rental Growth	4.5%
Client Retention Rate	91%
Next 12 m. revenue	€271 mil.
WAULT	7.1

COUNTRY DATA POINTS

JAKUB KODR, HEAD OF BUSINESS DEVELOPMENT CZ

DAVID CHLÁDEK, MANAGING DIRECTOR CZ

CTPark Bor

One of CEE’s most successful business parks, CTPark Bor is strategically located in western Bohemia, 50 km from Plzeň’s city centre, with excellent highway connectivity and only 15 km from the German border.

GLA total:	640,000 sqm
GLA growth 2022:	92,000 sqm
Landbank:	134,000 sqm
Clients:	36
Solar power:	YES
Community:	Clubhaus, 800-bed affordable housing (400 Under Construction),exercise park

TOP 10 PARKS

CTPark Prague East

Direct higway visibility, strategically situated on the major North-South highway and the Prague ring road, providing excel- lent connectivity to Prague's city centre, international airport and the major north- south European corridor.

GLA total:	88,900 sqm
Landbank:	54,900 sqm
Clients:	25
Sustainability:	EV charging stations
Community:	restaurant, exercise area, bike paths

CTPark Aš

The Czech Republic's westernmost location, CTPark Aš is located only 3 km from the German border and with great excellent access to the main cross-border highways and the city centre of Aš, which has a strong manufacturing tradition.

GLA total:	54,000 sqm
GLA growth 2022:	18,000 sqm
Landbank:	76,000 sqm
Clients:	6
Sustainability:	Solar plants (planned)

CTPark Ostrava-Poruba

CTPark Ostrava-Poruba is situated on the western outskirts of Ostrava, with excellent connections to Prague and Brno, Poland, Slovakia and Austria. CTPark Ostrava-Poruba is CTP's second major park in Ostrava, the third-largest city in the country, with a strong industrial tradition.

GLA total:	52,000 sqm
GLA growth 2022:	12,000 sqm
Landbank:	83,000 sqm
Clients:	9

Romania

Ana Dumitrache

MANAGING DIRECTOR, ROMANIA

“The year 2022 was for us ‘Outstanding’—as in the highest level of BREEAM certification that we received for our Clubhaus at the largest logistic hub in CEE—CTPark Bucharest West. Our growth was supported mainly by Bucharest West developing as a regional hub, not only for the Balkans area, but also for Turkey and the Middle East. We continue to see an increase in nearshoring and also de-centralisation of distribution. Being used to turning hardship into opportunities, we can report that 2022 was a hard but also a very good year for us, with many occasions to prove our competence, professionalism and excellence of service, with an integrated team covering the whole value chain of real estate development.”

MACROECONOMICS INDICATORS

Population	19 mil.
Credit rating	Baa3
Hourly compensation in manufacturing	€21.90
GDP per capita growth forecast CAGR	1.3%
E-commerce forecast CAGR	9.9%

MARKET INDICATORS

Total stock	6.6 mil. sqm
Annual growth rate of stock	17.1%
CTP market share	37.0%
Net take-up	0.9 mil. sqm
CTP share net take-up	59.0%
Market vacancy rate	4.6%
Prime rent (€/sqm/yr)	€49.20
Prime yield	7.35%

CTP INDICATORS

Locations	27
GLA	2,383 thousand sqm
Project under construction	237 thousand sqm
Landbank	3,221 thousand sqm
GAV (in EUR million)	1,645
LFL Rental Growth	2.5%
Client Retention Rate	91.0%
Next 12 m. revenue	€107 mil.
WAULT	5.5

COUNTRY DATA POINTS

ANA DUMITRACHE, MANAGING DIRECTOR RO

ELEONORA AMARIUTEI, CFO RO

CTPark Bucharest Mogoşoaia

CTP developed a CTFit (built-to-suit) high tech warehoues in CTPark Mogosoaia for Dr. Max Group, who as a repeat customer, lease 45,000 sqm at two other locations in Sibiu and CTPark Bucharest.

GLA total:	34,000 sqm
GLA growth 2022:	33,600 sqm
Clients:	1

CTPark Bucharest West

CTPark Bucharest West is Europe’s largest industrial park with over 750,000 GLA and the highest quality of life at an industrial park in Romania due to its Clubhaus and well designed infrastructure and greenery. The park has transformed into a regional hub serving simultaneously the EU, SEE and Middle Eastern markets. 2022: Clubhaus certified BREEAM Outstanding.

GLA total:	767,000 sqm
GLA growth 2022:	25,700 sqm
Landbank:	1.3 million sqm
Under Construction:	94,000
Clients:	68
Sustainability:	1.5 MW PV plant (completed 01/2023)
Community:	Clubhaus, affordable housing (planned)

TOP 10 PARKS

CTPark Bucharest North

Positioned on Bucharest’s most important interchange, between the A3 highway and National Road 2 (DN2), the park gives access to the entire city through the ring-road connection. CTPark Bucharest North was one of CTP's fastest-growing parks in 2022 due to its strategic location.

GLA total:	198,000 sqm
GLA growth 2022:	136,000 sqm
Landbank:	30,000 sqm
Under Construction:	13,000
Clients:	15

TOP 10 PARKS

CTP Hungary

Ferenc Gondi, MANAGING DIRECTOR, HUNGARY

“For us, 2022 was definitely an outstanding year on many levels, and I am proud of our team’s accomplishments. Highlights include the construction of our first Clubhaus in Hungary, at CTPark Budapest West, where we also have our new office. During the year we maintained our market-leading position and reached the impressive milestone of one million sqm of GLA. We finished 2022 working with Tesco on the largest development in the Budapest area. This is what I call a rock-and-roll year.”

MACROECONOMICS INDICATORS

Population	9.7 mil.
Credit rating	Baa2
Hourly compensation in manufacturing	€21.90
GDP per capita growth forecast CAGR	1.3%
E-commerce forecast CAGR	9.9%

MARKET INDICATORS

Total stock	3.1 mil. sqm
Annual growth rate of stock	14.8%
CTP market share	21.0%
Net take-up	0.5 mil. sqm
CTP share net take-up	44.0%
Market vacancy rate	3.8%
Prime rent (€/sqm/yr)	€66.0
Prime yield	6.25%

CTP INDICATORS

Locations	17
GLA	1,004 thousand sqm
Project under construction	206 thousand sqm
Landbank	2,712 thousand sqm
GAV (in € million)	1,049
LFL Rental Growth	6.6%
Client Retention Rate	91.0%
Next 12 m. revenue	€60 mil.
WAULT	5.8

CTPark Budapest West

CTPark Budapest West is CTP's landmark warehouse-distribution hub in Hungary. This is the ideal place for business activ- ities conducted in Hungary for warehousing, distribution, cross-docking and other value added operations for ambient, temperature controlled, chilled as well as the frozen goods.# TOP 10 PARKS

CTPark Budapest Sziget

CTPark Budapest Sziget is CTP's up and coming park, due to the signing in 2022 of an over 100,000 sqm developement project for Tesco—the largest deal in 2022 for CTP as well as on the Hungarian market. The planned, solar power rooftop EV plant plant will cover 100,000 sqm, with an installed capacity of 13 MWp of renewable energy, enough to cover Tesco’s energy needs and supply electric vehicle charging points.

Landbank: 360,000 sqm
Under Construction: 120,000
Sustainability: 13 MWp (planned), EV charging stations

CTPark Budapest Ecser

CTPark Budapest Ecser is located east of Budapest in the immediate vicinity of the capital, Liszt Ferenc International Airport and the M4 motorway.The region, due to its outstanding location, is considered a major national and international hub.

GLA growth 2022: 3,000 sqm
Landbank: 1,125,000 sqm
Under Construction: 43,000

Stanislav Pagáč

MANAGING DIRECTOR, SLOVAKIA

“We entered 2022 with focus and energy to build upon the growth we achieved in 2021, and I am happy to report that we succeeded. Definitely the highlight for us was reaching the number-one position on the Slovak industrial market, not only as the operator of the largest industrial portfolio in the country, but also in terms of total new construction as well. We wrapped up the year with 18% growth in GLA, to 776,000 sqm, and a 96% occupancy rate. During the year, support for local communities and people in need continued to play an important role in our activities. We continued our long-term cooperation with a local NGO helping children at risk and their families and expanded our activities to support education aimed at both university and high school students.

Slovakia

MACROECONOMICS INDICATORS
Population	5.4 mil.
Credit rating	A2
Hourly compensation in manufacturing	€21.90
GDP per capita growth forecast CAGR	1.3%
E-commerce forecast CAGR	9.9%

MARKET INDICATORS
Total stock	3.6 mil. sqm
Annual growth rate of stock	12.8%
CTP market share	19.0%
Net take-up	0.6 mil. sqm
CTP share net take-up	13.0%
Market vacancy rate	3.6%
Prime rent (€/sqm/yr)	€58.80
Prime yield	5.75%

CTP INDICATORS
Locations	13
GLA	776 thousand sqm
Project under construction	38 thousand sqm
Landbank	1,779 thousand sqm
GAV (in € million)	740
LFL Rental Growth	7.4%
Client Retention Rate	66.4%
Next 12 m. revenue	€46 mil.
WAULT	5.6
	11.3%
	2.2%
	€10.7

Sources: Eurostat, Moody's, Eurostat CAGR 22-27, IMF CAGR 22-27, Oxford Economics, Statista, CBRE, CTP, CBRE
Notes: CTP countries, EU-27 average figures as comparison.

CTPark Trnava

CTPark Trnava is strategically located 5km from Trnava city centre, and directly adjacent to the PSA Peugeot Citroën production facility, 50km from the Slovak capital, Bratislava.

GLA total: 162,000 sqm
GLA growth 2022: 44,000 sqm
Landbank: 452,000 sqm
Clients: 21

CTPark Žilina Airport

CTPark Žilina Airport is situated in the heart of Slovakia’s main automotive and high-tech cluster with the Kia Motors and VW plants just 30 km away. Strategically located on the E50/D1 motorway to Bratislava, the park offers excellent access to the Czech and Polish borders.

GLA total: 45,000 sqm
GLA growth 2022: 20,000 sqm
Landbank: 278,000 sqm
Clients: 6

CTPark Prešov South

CTPark Prešov South is strategically located in Slovakia’s third-largest city, with ex- cellent motorway connection to Košice (40km) and the automotive cluster in Žilina /Martin (200km), with easy access to Poland (70km). With nearby technical universities and skilled, available labour, the park is ideal for logistics and high-tech production.

GLA total: 29,000 sqm
GLA growth 2022: 40,000 sqm
Under Construction: 27,000 sqm
Clients: 3

Dragana Djordjević

HEAD OF FINANCE & ACCOUNTING, SERBIA

“A lot of great things happened in Serbia in 2022! We wrapped up the year with 263,000 sqm of GLA and a very healthy occupancy rate of 96%. We continue to develop high- quality buildings and projects, keeping us on track to reach our one million sqm target. We have an amazing tenant network of local and international companies (such as Yanfeng, Nidec and Bosch) that continued to grow with us during the year. Beyond business, we expanded our collaboration with local communities supporting youth in need and educational programmess. I’m also very proud of our team of 24 young professionals—all motivated, enthusiastic and eager to accomplish each of the goals that we have set. We’re ready for more great things in 2023!”

Serbia

MACROECONOMICS INDICATORS
Population	6.8 mil.
Credit rating	BB+
Hourly compensation in manufacturing	€21.90
GDP per capita growth forecast CAGR	1.3%
E-commerce forecast CAGR	9.9%

MARKET INDICATORS
Total stock	1.1 mil. sqm
Annual growth rate of stock	16.0%
CTP market share	18.0%
Net take-up	0.1 mil. sqm
CTP share net take-up	80.0%
Market vacancy rate	5.4%
Prime rent (€/sqm/yr)	€54.00
Prime yield	7.75%

CTP INDICATORS
Locations	4
GLA	263 thousand sqm
Project under construction	170 thousand sqm
Landbank	1,080 thousand sqm
GAV (in € million)	273
LFL Rental Growth	3.7%
Client Retention Rate	100%
Next 12 m. revenue	€16 mil.
WAULT	10.6
	15.9%
	3.5%
	€5.00

Sources: Eurostat, S&P, Eurostat CAGR 22-27, IMF CAGR 22-27, Oxford Economics, Statista, CBRE, Colliers, CTP, CBRE
Notes: CTP countries, EU-27 average figures as comparison.

CTPark Belgrade West

CTPark Belgrade West is located in an es- tablished industrial zone near the town of Šimanovci close to the Belgrade-Zagreb E-701 motorway. The location is ideally situated close to the Nikola Tesla international airport, with excellent transport access to Zagreb, Belgrade and state borders.

GLA total: 59,000 sqm
GLA growth 2022: 35,000 sqm
Landbank: 303,000 sqm
Clients: 6

CTPark Belgrade North

Prime location between two biggest cities in Serbia Belgrade and Novi Sad. CTPark Belgrade North is located near the town of Novi Banovci with perfect visibility from the adjacent A1 highway connecting Belgrade and Budapest. The location is 20 minutes away from the city centre, with excellent transport access to Zagreb, Budapest and Timisoara.

GLA total: 101,000 sqm
GLA growth 2022: 25,000 sqm
Landbank: 239,000 sqm
Under Construction: 17,000 sqm
Clients: 8

CTPark Belgrade City

CTPark Belgrade City will be the largest logistics hub in Serbia, with units starting from 2,500 sqm with showroom, office space and warehousing. The location is ideal for small- and medium-sized enterprises in the FMCG, pharmaceutical, and e-commerce sectors and for last-mile logistcs due to its inner city location, excellent connections to the highway and all main city traffic arteries.

Under Construction: 100,000 sqm

Bogi Gabrovic

DEPUTY COUNTRY HEAD, POLAND

“Without a doubt 2022 was a breakthrough year for CTP’s presence and operations in Poland. The purchase of a 2.5 million sqm portfolio of land was a decisive step in our expansion process. We also grew our team significantly during the year, from 11 people in 2021 to currently over 60 professionals managing the construction of over 500,000 sqm of logistics and production space. We remain fully focused on the continued expansion of CTP’s footprint in Poland, to provide our tenants with CTP’s market- proven mix of property types at strategic locations throughout the country. CTP is making big things happen in the Polish market!”

Poland

MACROECONOMICS INDICATORS
Population	37.7 mil.
Credit rating	A2
Hourly compensation in manufacturing	€21.90
GDP per capita growth forecast CAGR	1.3%
E-commerce forecast CAGR	9.9%

MARKET INDICATORS
Total stock	27.6 mil. sqm
Annual growth rate of stock	16.3%
CTP market share	1.0%
Net take-up	4.1 mil. sqm
CTP share net take-up	2.1%
Market vacancy rate	4.0%
Prime rent (€/sqm/yr)	€68.40
Prime yield	5.25%

CTP INDICATORS
Locations	4
GLA	216 thousand sqm
Project under construction	500 thousand sqm
Landbank	2,371 thousand sqm
GAV (in € million)	630
LFL Rental Growth	12.5%
Client Retention Rate	100%
Next 12 m. revenue	€7 mil.
WAULT	11.8
	11.7%
	2.4%
	€8.50

Sources: Eurostat, Moody's, Eurostat CAGR 22-27, IMF CAGR 22-27, Oxford Economics, Statista, CBRE, CTP, CBRE
Notes: CTP countries, EU-27 average figures as comparison.

CTPark Warsaw West

GLA total: 95,000 sqm
GLA growth 2022: 95,000 sqm
Landbank: 66,000 sqm
Under Construction: 75,000 sqm
Clients: 2

CTPark Opole

GLA total: 59,000 sqm
GLA growth 2022: 19,000 sqm
Landbank: 71,000 sqm
Under Construction: 18,000 sqm
Clients: 8

CTPark Warsaw East

CTPark Warsaw East offers a wide range of opportunities for manufacturing and ware- housing activities. The location directly by the S8 motorway, within the adminis- trative borders of Warsaw, provides good access to qualified employees. CTPark Warsaw East is located in zone II of Warsaw’s industrial market, providing easy access to the capital city.

Landbank 417,000 sqm

Daniela Boytcheva

BUSINESS DEVELOPMENT DIRECTOR, BULGARIA

2022 was a pioneering year for CTP in Bulgaria in many ways. From the development perspective, it marked the ground-breaking of 100,000 sqm in total at our two parks, CTPark Sofia West and CTPark Sofia East, of which 40% was leased during the early construction phase to a German retailer for a regional e-fulfilment centre. We completed the acquisition of a 75,000 sqm logistics facility consisting of warehouse and office space near Sofia, in addition to existing production assets with land to develop an additional 40,000 sqm of space in Plovdiv. CTP is currently active in seven locations in Bulgaria and is already a leader in the I&L segment in the country.# Bulgaria

MACROECONOMICS INDICATORS

Population: 6.8 mil.
Credit rating: Baa1
Hourly compensation in manufacturing: €21.90
GDP per capita growth forecast CAGR: 1.3%
E-commerce forecast CAGR: 9.9%

MARKET INDICATORS

Total stock: 1.6 mil. sqm
Annual growth rate of stock: 4.5%
CTP market share: 9.0%
Net take-up: n/a
CTP share net take-up: n/a
Market vacancy rate: 4.0%
Prime rent (€/sqm/yr): €63.00
Prime yield: 7.50%

CTP INDICATORS

Locations: 6
GLA: 159 thousand sqm
Project under construction: 100 thousand sqm
Landbank: 455 thousand sqm
GAV (in € million): 163
LFL Rental Growth: 1.7%
Client Retention Rate: 100%
Next 12 m. revenue: €10 mil.
WAULT: 8.6

14.1%
3.1%
€4.90

Sources: Eurostat, Moody's, Eurostat CAGR 22-27, IMF CAGR 22-27, Oxford Economics, Statista, CBRE, Colliers, CTP, CBRE
Notes: CTP countries EU-27 average figures as comparison.

COUNTRY DATA POINTS

CTPark Sofia West

CTPark Sofia West is strategically located next to the east-west motorway, and the ring road, within a major residential zone with convenient public transport connections to city centre.
Landbank: 88,000 sqm
Under Construction: 74,000 sqm

Germany

Timo Hielscher

REGIONAL DEVELOPMENT DIRECTOR WEST, GERMANY

“The year 2022 was very special for us. We had our debut in the German market. We have clear growth ambitions in Germany. However, to start actively managing a portfolio with more than 90 properties, there was a lot of groundwork to do. Our priority in 2022 was to attract talent and developing our local network among agents, local authorities, tenants, and other stakeholders. “In 2023 our goal is to drive rental and occupancy growth by providing top-notch services to our tenants across our German network. In a nutshell, we are perfectly positioned for growth.”

MACROECONOMICS INDICATORS

Population: 83.2 mil.
Credit rating: Aaa
Hourly compensation in manufacturing: €21.90
GDP per capita growth forecast CAGR: 1.3%
E-commerce forecast CAGR: 9.9%

MARKET INDICATORS

Total stock: 97.6 mil. sqm
Annual growth rate of stock: 5.5%
CTP market share: 2.0%
Net take-up: 8.2 mil. sqm
CTP share net take-up: 1.2%
Market vacancy rate: 2.0%
Prime rent (€/sqm/yr): €102.00
Prime yield: 3.80%

CTP INDICATORS

Locations: 90
GLA: 1,624 thousand sqm
Project under construction: n/a
Landbank: 131 thousand sqm
GAV (in € million): 924
LFL Rental Growth: n/a
Client Retention Rate: 88.0%
Next 12 m. revenue: €66 mil.
WAULT: 4.9

9.7%
1.1%
€32.70

Sources: Eurostat, Moody's, Eurostat CAGR 22-27, IMF CAGR 22-27, Oxford Economics, Statista, CBRE, CTP, CBRE
Notes: CTP countries EU-27 average figures as comparison.

COUNTRY DATA POINTS

Netherlands

Paul Dijkstra

CFO, NETHERLANDS

“In the Netherlands, 2022 was a year of consolidation and activity following our entry into the market in 2021 with five acquisitions. We rolled out a state-of-the-art green energy ecosystem (wind and solar energy generation and charging stations for 200+ EVs and trucks) at CTPark Amsterdam City. Our first new warehouse, of 23,000 sqm, was completed at CTPark Rotterdam in June for our tenant R&M Forwarding. During the year we added more strategic land plots to our portfolio in Waalwijk in the south of the country, where we now own more than 90 hectares of land as well as near Schipol Airport, which we plan to develop in the coming years. We also created new grounds for cooperation with the municipalities in Waalwijk and nearby Gorinchem. These multifaceted successes give us a solid foundation for further growth.”

MACROECONOMICS INDICATORS

Population: 17.6 mil.
Credit rating: Aaa
Hourly compensation in manufacturing: €21.90
GDP per capita growth forecast CAGR: 1.3%
E-commerce forecast CAGR: 9.9%

MARKET INDICATORS

Total stock: 40.8 mil. sqm
Annual growth rate of stock: 8.2%
CTP market share: n/a
Net take-up: 2.6 mil. sqm
CTP share net take-up: n/a
Market vacancy rate: 2.4%
Prime rent (€/sqm/yr): €110.00
Prime yield: 4.35%

CTP INDICATORS

Locations: 2
GLA: 127 thousand sqm
Project under construction: 120 thousand sqm
Landbank: 1,479 thousand sqm
GAV (in € million): 448
LFL Rental Growth: N/A%
Client Retention Rate: 100%
Next 12 m. revenue: €4 mil.
WAULT: 16.2

9.8%
0.9%
€31.6

Sources: Eurostat, Moody's, Eurostat CAGR 22-27, IMF CAGR 22-27, Oxford Economics, Statista, CBRE, CTP, CBRE
Notes: CTP countries EU-27 average figures as comparison.

CTPark Amsterdam City

The most innovative and very first XXL last-mile multi-storey logistic city hub in the Netherlands. CTPark Amsterdam City will comprise 120,000 sqm of GLA located right in the heart of Amsterdam, with excellent infrastructure and holds a pivotal location in one of the most densely populated areas in Europe.
Under Construction: 120,000 sqm
Sustainability: BREEAM Excellent, solar plant, wind power, truck & car EV charger points, emissions-free logistics, rooftop gardens

CTPark Rotterdam

CTPark Rotterdam is located within the Nieuw Reijerwaard business park in the highly sustainable “Dutch Fresh Port” industrial area, which is positioned to become one of the most sustainable agro-logistics hubs in Europe.
GLA total: 23,000 sqm
GLA growth 2022: 23,000 sqm

Austria

David Strobl

CONSTRUCTION DIRECTOR, AUSTRIA

“We closed 2022 with the completion of our very first building in CTPark Vienna East in Bruck an der Leitha, which is fully leased. This is an amazing milestone in our relatively short history in Austria, and we have a second project, CTPark St Pölten North, in the pipeline that will be started by the end of 2023. These two developments are the foundation of CTP’s targeted investment programme in Austria, to be carried out in the coming two to three years. I’m extremely proud of our small team and of what we have achieved in the last months. We will continue to grow our organisation, staff, and projects in 2023 to deliver more than 100,000 sqm of premium industrial space around Vienna, according to the demand of our long-term tenants.”

MACROECONOMICS INDICATORS

Population: 9 mil.
Credit rating: Aa1
Hourly compensation in manufacturing: €21.90
GDP per capita growth forecast CAGR: 1.3%
E-commerce forecast CAGR: 9.9%

MARKET INDICATORS

Total stock: 2.9 mil. sqm
Annual growth rate of stock: 1.8%
CTP market share: 1.0%
Net take-up: 0.2 mil. sqm
CTP share net take-up: 14.0%
Market vacancy rate: 0.3%
Prime rent (€/sqm/yr): €78.00
Prime yield: 4.4%

CTP INDICATORS

Locations: 1
GLA: 1 thousand sqm
Project under construction: 89 thousand sqm
Landbank: 398 thousand sqm
GAV (in € million): 93
LFL Rental Growth: 1.0%
Client Retention Rate: 100%
Next 12 m. revenue: €1 mil.
WAULT: 9.8

12.3%
0.9%
€29.4

Sources: Eurostat, Moody's, Eurostat CAGR 22-27, IMF CAGR 22-27, Oxford Economics, Statista, CBRE, CTP, CBRE
Notes: CTP countries EU-27 average figures as comparison.

CTPark Vienna East

CTPark Vienna East enjoys an excellent location in Vienna’s Carnuntum neighborhood, near the A4 motorway at the intersection of the B10 and L163 regional roads. It is just 15 minutes from Austria’s largest airport, Vienna Schwechat, with several airport cargo suppliers in the area.
New tenants: Toyota Logistics, DHL
Under Construction: 55,000 sqm

CTPark St. Pölten North

The CTPark St. Pölten North benefits from an excellent location in the district of St. Pölten just north of the major western A1 and S33 corridor connecting Vienna, Linz and Germany. Due to superior infrastructure in Austria and direct connection to the S33 road, the park is within easy reach of St. Poelten (12km) and the Vienna Schwechat Airport (96km) as well as the Czech Republic, Slovakia and Hungary.
Landbank: 128,000 sqm
Under Construction: 34,000 sqm

DEVELOPER STORY: LEVERAGING OUR IN-HOUSE TEAM FOR STRATEGIC GROWTH

Mobilising the landbank with in-house permitting, design, construction and procurement teams helps us maintain our industry-leading yield on cost. Leveraging our CEE market dominance and first-mover advantage, we meet demand-driven growth with innovative solutions.

Sustainability

Highlights in 2022

Double Materiality Assessment

ESG Strategy

Striving to be Climate Positive

Embedding Parks in Communities

Stimulating Social Impact & Well-being

Conducting Business with Integrity

Company Culture and Employees

CTP’s culture

CTP’s values

CTP’s employees

CTP’s inclusive and safe work environment

Leadership

EU Taxonomy

KPIs (methodology of calculation)

Eligibility

Alignment

Sustainability has been at the core of CTP’s activities since its inception. The Company’s long-term approach to property development is an inherent part of its build-to-own business model. CTP’s commitment to sustainability is multifaceted and encompasses the environmental, social and governance spectrum. A clear expression of CTP’s commitment is its BREEAM-certified high-quality portfolio of buildings, which are developed to meet not only the current but also the future needs of the Company’s tenants. CTP’s ambition is to have positive impact on the climate. This includes the Company’s commitment in line with the Paris Agreement to be carbon neutral in all Scopes as defined by the Greenhouse Gas (“GHG”) Protocol Corporate Standard—through the reduction of the Group’s GHG emissions and water consumption, the production of renewable energy and support for biodiversity. CTP’s long-term approach has always involved developing strong ties to the local communities where it operates.# Sustainability

CTP proactively contributes to community development to create a good environment to grow with clients. CTP’s broad-based commitment to sustainability has been codified in its ESG strategy.

ESG strategy launch

In 2022, CTP took several steps to formalise and institutionalise its ESG strategy across the Group. CTP developed a four-pillar approach to systemise topics that the Company considers material. The “pillars” are: striving to be climate positive; embedding parks in communities; stimulating social impact and well-being; and conducting business with integrity. These pillars capture focus areas and represent interlinked groups of activities. As CTP grows and evolves, so too does its ESG strategy. The Company ensures that it regularly updates its ESG strategy to focus on the most material topics and have the greatest possible impact. The materiality assessment carried out in 2022 has led to better understanding of material topics, an update of the strategy, and set up of the relevant KPIs.

Ratings

STANDARD & POOR’S GLOBAL CORPORATE SUSTAINABILITY ASSESSMENT

The S&P Global Corporate Sustainability Assessment (“CSA”) and ESG Evaluation are annual assessments of the sustainability practices of over 10,000 companies from around the world. The CSA focuses on sus-tainability criteria that are both industry-specific and financially material. CTP participated in S&P’s CSA assessment for the first time in 2022 and obtained an evaluation result of 67, with no material impacts.

SUSTAINALYTICS

In January 2023, CTP received an ESG Risk Rating of 10.2 and was assessed by Morningstar Sustainalytics to be at Low Risk of experiencing material financial impacts from ESG factors. In no event shall these re-sults be construed as investment advice or expert opinion as defined by the applicable legislation.

CORPORATE RESPONSIBILITY

Prepartion for GRESB Real Estate Assessment

CTP continuously seeks to improve its ESG credentials. As such, in 2022 the Company did an internal trial run for the GRESB Assessment and is committed to participate and publish the results in 2023. Following the trail run, multiple actions have been taken to systemise CTP's approach to ESG. The GRESB Real Estate Assessment is a global standard for ESG benchmarking and reporting for companies that invest directly in real estate.

Highlights in 2022

	Severe	40+
Note: Updated Jan 17, 2023.
ESG Risk Rating	Neg.
0-10	Low Risk	-0.9 Momentum
10-20	Low
20-30	Medium
30-40	High
10.2

A higher score indicates better sustainability. Figures subject to rounding.

ESG Evaluation	ESG Profile	Preparedness
67	67	52

No Impact	Low	Emerging	Adequate	Strong	Best in class
9	16	7

* Copyright © 2023 Morningstar Sustainalytics. All rights reserved. This section contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are the property of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers

ESG Committee established

To improve governance of ESG topics, including climate-related risks and opportunities within the Group and to enhance the Board oversight, in 2022 CTP established the ESG Committee. The ESG Committee consists of non-Executive Directors and guests, including Executive Directors and the Group Head of ESG. Committee meetings are held on a regular basis to ensure that ESG an integral part of CTP's strategy and that ESG and climate-related targets are followed up.

Double materiality assessment

During the second half of 2022, as part of refining the Company’s ESG strategy, CTP conducted its first double-materiality assessment. Double materiality assessments evaluate the impact of the Company on ESG matters and the potential financial impact of ESG matters on Company performance. To ensure objective- ness the process was led by an external consultant and consisted of desk research, industry review, and multiple interviews and surveys. The outcome of the assessment has been used to adjust strategy and define relevant KPIs.

Science Based Target initiative (SBTi)

CTP embraces alignment with the Paris Agreement and aims to achieve carbon neutrality in all Scopes in line with its assumptions. Based on data collected in 2022, CTP will develop a detailed climate roadmap to be approved by the Science Based Targets initiative (SBTi). Carbon data for 2022 went through independent limited assurance done by Arcadis.

Operator

Sustainable management of the Group’s portfolio is essential to ensure the best possible impact on the environment. In the Czech Republic, Romania and Slovakia, CTP has introduced ISO 140001 and ISO 50001 standards to improve environmental and energy management. Socially and environmentally focused activi-ties are described in Section 4.3.2.

Developer

CTP has developed lifecycle assessments of selected properties to select priority materials to reduce the embodied carbon footprint of its development activities. At the same time, the Company is developing its first projects utilising heat pumps as the only source of heating. This is an important step to develop proper-ties that do not use any fossil fuels at the operational stage. CTP continued certifying properties under the BREEAM scheme throughout 2022. Starting in 2023, BREEAM New Construction at the Very Good level or higher will be used for all new constructions to support the reduction of embodied carbon and alignment with EU Taxonomy requirements for activities related to the construction of buildings. To date, CTP has built seven buildings that were awarded the highest BREEAM Outstanding level. Other socially and environmentally focused activities are described in Section 4.2.

Physical climate risk

In 2022 CTP conducted a physical climate risk assessment to verify acute and chronic physical climate risks. The tool makes use of nine different climate scenarios, from REMIND (1.5 °C) to the IPCC (5 °C), looking towards the year 2100 and analysing climate risks considered potentially material for the Company, which include coastal flooding, extreme heat, extreme cold, fluvial flooding, tropical cyclones, water stress and wildfires. Based on the outcome of the analysis, material climate risks have been selected. Given the geographical distribution of its properties, collective adaptation measures being implemented in countries and the buildings’ robust design and construction, CTP does not foresee any analysed climate risk that can significantly affect its financial performance in the near future.

Photovoltaics

During 2022, CTP increased its installed photovoltaic (“PV”) capacity from 6MWp to 38MWp and estab-lished a dedicated energy function at the Group and country levels. The target for 2023 is to have at least an additional 100MWp installed.

GRI 3-1 GRI 2-12 GRI 2-13

Highlights in 2022

EU Taxonomy Assessment

CTP’s 2022 Annual Report presents the Company’s first EU Taxonomy alignment. Each year CTP expands its ESG disclosure. EU Taxonomy, among other disclosures, led to the development of internal Company processes and policies for ESG data collection and management during 2022. Disclosure on EU Taxonomy and the introduction of its technical criteria into operations is another step to make CTP operations more sustainable. CTP’s sustainability ambitions are aligned with EU Taxonomy requirements.

EPRA reporting

CTP uses EPRA best practice reporting (“BPR”) in its annual reporting. This includes sustainable BPR (“sBPR”). Sustainability KPIs can be found in Appendix 7.3 of this Annual Report.

TCFD reporting

CTP introduced Task Force on Climate-related Financial Disclosure (TCFD) recommendations in its 2022 reporting. Governance, strategy, risk management and metrics are disclosed in this Annual Report.

Green bond reporting

CTP has issued green bonds for a total amount of €4.25 billion. Green bonds are issued based on CTP’s Green Bond Framework, which is not related to the EU Taxonomy. Use of proceeds is reported annually in CTP’s Green Bond Report. Proceeds from green bonds are allocated to finance the development of sustainable buildings for CTP’s portfolio. Detailed EU Taxonomy disclosure presents KPIs not adjusted by proceeds from green bonds. Adjusted KPIs are presented in contextual information.

First sustainability reporting

During 2022, CTP did the necessary preparatory work to publish its first stand-alone Sustainability Report, which will be available in 2023. The publishing of this separate report provides space to describe the Com-pany’s activities in the field of ESG in detail. The report is intended to be published in accordance with the GRI (Global Reporting Initiative) framework and will contain TCFD recommendations.

Clubhaus

To support the Company’s efforts to embed its parks into the communities where it operates [see Sec-tion 4.3.2 for details], CTP has introduced the Clubhaus mixed-use development concept to select park locations. As part of its park strategy, CTP develops common spaces that serve the employees of tenants and local communities. CTP’s Clubhaus offers space for meetings, educational activities, social gatherings, medical services, a cafeteria, convenience store and canteen as well as outdoor facilities and can be used free of charge by the park community.# Advanced renewable energy management system introduced in Amsterdam

In 2022 CTP introduced an advanced renewable energy a production and management system at CTPark Amsterdam City, a multi-story and multi-tenant 120,000 sqm development in the Western Docklands dis- trict of Amsterdam. It is equipped with approximately 6MWp of photovoltaics and ten wind turbines to sup- ply renewable energy to meet tenant needs as well as to serve over 200 EV charging points for cars, vans and trucks. A dedicated energy management system optimises energy production, storage (battery) and consumption. It is an important step for the Company to gain practical experience developing self-sufficient buildings and parks in the future.

SUSTAINABILITY REPORTING

INNOVATION

260

Double Materiality Assessment

4.2 Double Materiality Assessment

Based on the assessment results, CTP has grouped topics into four areas that are material from the Group’s standpoint. Topics are se- lected based on the specific impact of CTP, and also their impact on CTP's business. The criteria for the group- ings is related to the possibility to manage the topic effectiveley:

1. Energy, carbon emissions, and climate neutrality
   A description of CTP actions can be found in Striving to be Climate Positive
2. Sustainable design, supply chain management, certification, and climate adaptation
   A description of CTP actions can be found in Striving to be Climate Positive
3. Health and safety, Employees, diversity, equity, and inclusion
   A description of CTP actions can be found in Stimulate Social Im- pact & Well-being
4. Ethical business conduct, Board oversight and human rights
   A description of CTP actions can be found in Conducting Business with Integrity

Community involvement and corporate giving are not identified as a material topic in the materiality assessment, but due to their business importance for CTP are part of the Company's ESG strategy. A de- scription of CTP actions can be found in Embedding Parks in Commu- nities.

CTP material topics

The materiality assessment will be updated each year. The results of this materiality assessment confirm the effectiveness of the path that CTP chose when creating the pillars on which CTP’s ESG strategy was originally bassed. Under these pillars, the different goals, targets, and measures are defined and refined constantly. CTP also uses these pillars as a reference point when informing on the re- sults of decisions taken.

GRI 3-2

261

Sustainability

Fig. 52 CTP Double-Materiality Assessment Results

	Impact of CTP's Business	Financial Impact of CTP's Business
Waste generation
Waste management
Water management
Sustainable materials
Embodied GHG emissions and carbon neutrality
Employee recruitment and development
Privacy protection & cyber security
Board oversight
Supply chain management
Climate adaptation and resilience
Sustainable design and certification
Diversity, equity and inclusion
Health, safety & well-being
Operational GHG emissions and carbon neutrality
Ethical business conduct
Energy efficiency and renewable energy
Labour and human rights
Community involvement and corporate giving
Ecosystem and biodiversity
	4.75	4.75
	4.25	4.25
	3.75	3.75
	3.25	3.25
	2.75	2.75
	2.75	2.75
	3.25	3.25
	3.75	3.75
	4.25	4.25

The results of the first CTP double materiality assessment can be seen below, rated on a scale from 1 to 5.

262

ESG Strategy

ESG is a broad term. To efficiently act in line with its principles, a systematic approach is required. CTP has developed a four-pillar approach to systemise topics that the Company considers material.

4.3 ESG Strategy

The “pillars” are equally important, interdependent focus areas that will evolve over time. They are:

1. Striving to be Climate Positive
2. Embedding Parks in Communities
3. Stimulating Social Impact and Well-being
4. Conducting Business with Integrity

GRI 3-3

263

1. STRIVING TO BE CLIMATE POSITIVE

264

ESG Strategy

CTP strives to be climate positive. The first step on this journey is the Company’s goal, in line with the Paris Agreement, to become carbon neutral covering all its activities, from corporate operations through development to asset management. CTP does this directly, by providing high-quality, utility-efficient spac- es to its tenants; and indirectly, as CTParks allow tenants to increase transport efficiency, thereby helping to reduce their overall carbon footprint.

To make sure all specific negative project development im- pacts are addressed, an environmental impact assessment process is followed during building permitting, where potential negative impacts are identified. To ensure proper risk management at the stage of land acquisition, technical due diligence contains an environmental assess- ment of potential contamination.

Operational energy use, use of construction materials and land use are among the activities with the most material direct climate and potential negative environmental impacts. A target to reduce the op- erational carbon footprint and procure renewable electricity has been set to promote this agenda. This includes the energy consumption of CTP tenants, embodied emissions, i.e., the emissions required for the creation of construction materials, and causing large surface areas to become impermeable due to building development. A target to reduce the embodied carbon footprint that involves sustainable design, cer- tification and responsible procurement has been set to follow up on progress in this field.

Energy consumption and related energy costs have recently be- come an important topic for CTP’s tenants. Energy market volatility has made energy efficiency a priority for most of the Company’s ten- ants. While CTP does not use significant amounts of energy for its own purposes—and does not bear the costs of energy, due to its business model—the “build to own” concept ensures that the Company creates properties that are designed, built, and managed in the most energy -efficient manner. Lowering energy consumption limits the exposure of CTP’s clients to volatility on the energy markets.

4.3.1 STRIVING TO BE CLIMATE POSITIVE

Category	Targets	Baseline	YE 2026	YE 2022
% of renewable electric energy of CTP’s and tenants’ electric energy mix			80%	24%
% of GLA covered by leases containing a green lease clause			50%	19%
MWp of installed PV capacity			400	38
% of parks with biodiversity efforts introduced /installed		Starting point	80%
Average embodied carbon footprint reduction (kgCO₂e/m²) *	10%
Average operational carbon footprint reduction (kgCO₂e/m²) *	20%			33.12
Water intensity (use, utilisation) reduced (m³/m²)	15%			0.17 (based on availability for 7,279,377 m²)
Taxonomy alignment of construction and ownership of properties (lowest of all KPIs)	60%			4.8%
Selective waste collection development activities (share of projects)	80%	Starting point
% of car fleet EV	25%	Starting point

• Subject to adjustment to be in line with Science Based Target initiative.

265

Additionally, to get closer to operational carbon neutrality and to in- crease energy security, CTP has intensified the installation of PV systems on its buildings, and all new buildings are constructed with solar-ready roofs. New projects are equipped with state-of-the-art LED lighting systems, remote metres, and the Company’s first projects using only heat-pump systems for heating have been completed. Mul- tiple steps are taken and will be taken to reach climate neutrality.

The Company translates ESG targets into project requirements concern- ing the reduction of energy and water consumption and the promotion of low-carbon construction materials. CTP started in 2022 to require Environmental Product Declarations (“EPDs”) for selected materials from suppliers. This is the first step in supply chain management to reduce the Company’s embodied carbon footprint. CTP’s construction activities in ten European countries and its close relations with key sup- pliers place the Company in a good position to make progress in this area. Cooperation with manufacturers and rising expectations towards low-carbon materials are driving change in the construction materials sector.

At the same time, CTP is introducing a green lease clause to its lease agreements, which already exceed 10% of managed area. This is an important step to enhance cooperation between CTP and its ten- ants to reduce negative environmental impacts. The pillar “Striving to be Climate Positive” is set up to tackle longer-term impacts that affect climate change: energy use, greenhouse gas emissions, materials and their related carbon emissions, water use, and biodiversity, and targets are set up accordingly.

Greenhouse gases and disclosure of other environmental KPIs

GRI 305

CTP increases the extent of its ESG disclosure in its 2022 Annual Report. Whereas in 2021 coverage was limited to Scope 1 and 2 emis- sions purely related to corporate operations, in 2022 the Company’s ESG disclosure includes areas at its parks and assets that fall under Group control. CTP’s new disclosure of Scope 3 emissions includes downstream leased assets, i.e., emissions from CTP’s tenants and business travel by the Company’s employees. Regarding downstream leased assets, more than 70% of the Company’s GLA is covered in the Scope 3 disclosure. Moreover, the Company completed its first embod- ied carbon analysis in 2022. Results of carbon lifecycle assessments of properties located in different countries allows for the prioritisation of activities leading to a reduction of the Company’s embodied carbon footprint, such as project monitoring and building material selection.

Reduction of the use of fresh water is an important measure introduced to minimise the impact on the environment. At the same time, embrac- ing the idea of circular economy targets that lead to the promotion of low-carbon materials as well as proper infrastructure for waste han- dling are necessary steps to support circular economy activities.More data concerning CTP’s carbon emissions disclosure can be found in EPRA Sustainability Performance Measures in Appendix 7.3 and in CTP’s Sustainability Report that will be published in spring 2023. Following the recommendation of the European Securities and Market Authority (“ESMA”) on presenting the impact of the situation in Ukraine on carbon emissions in 2022, CTP did not experience any material impact in this regard.

Sustainability

Total certifications by scheme (in %)

Fig. 53
Fig. 54

	In Use	New Construction
100%
75%
50%
25%
0

Sqm certified (in thousand sqm)

	Outstanding	Very Good	Excellent	Good
6,000
5,000
4,000
3,000
2,000
1,000
0	266

Scope 1

Fuels Car fuel, aeroplane fuel, natural gas used in corporate offices and landlord-operated areas within the portfolio.
Fugitive emissions Emissions related to leakage of refrigerants in CTP's porfolio.

Scope 2

Electricity and district heating used by CTP in offices, parks, and landlord-controlled parts of portfolio buildings.

Scope 3

Category 6 (Business travel)
Category 13 (Downstream Leased Assets – tenant energy use)

Carbon emissions in Scopes

Fig. 55

ESG Strategy

Fig. 56
Fig. 57

Location based CO2 Emissions (in tCO2e)

	Scope 3	Scope 1 Fugitive Emissions	Scope 2	Scope 1 Fuels
250,000
200,000
150,000
100,000
50,000
0

Market based CO2 Emissions (in tCO2e)

	Scope 3	Scope 1 Fugitive Emissions	Scope 2	Scope 1 Fuels
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0

	Scope 2	Scope 1 Fuels	Scope 3	Scope 1 Fugitive Emissions
	2%	1%	83%	14%

	Scope 2	Scope 1 Fuels	Scope 3	Scope 1 Fugitive Emissions
	2%	2%	78%	18%

267 Climate change and climate risks

GRI 201-2

Over the last years, CTP has taken steps towards addressing topics related to climate change and climate risk. CTP’s build-to-own business model requires a long-term approach to properties. Buildings designed and developed today must meet not only today’s requirements but also the requirements of the future. It is important to develop buildings that meet tenant needs but at the same time allow for the easy accommodation of users with different operations. To this end, CTP develops high-quality buildings that are to some extent generic, which ensures efficient use over the years with low operational investments needed and reduced costs of refurbishment. The Company takes into consideration the anticipated long-term effects of climate change, including increases in average temperatures, strong wind episodes and flash flooding, to ensure that buildings will be operational for decades with no need for significant adjustments. Building specifications are regularly updated to make sure that they reflect the most up-to-date climate knowledge. The ESG team reports directly to executive management, and the ESG Committee ensures that all climate-related risks and opportunities are addressed in building specifications and operational guidelines. In the Czech Republic, Romania and Slovakia, CTP has introduced ISO 140001 and ISO 50001 standards to improve environmental and energy management. In 2022 CTP conducted a physical climate risk assessment to verify acute and chronic physical climate risks using a third-party climate modelling tool. This tool makes use of nine different scenarios, from REMIND (1.5 °C) to the IPCC (5 °C), with a time horizon up to the year 2100. Climate risks considered potentially material include coastal flooding, extreme heat, extreme cold, fluvial flooding, tropical cyclones, water stress and wildfires. Given the geographical distribution of its properties and their robust design and construction, CTP does not foresee any climate risk among those analysed that can significantly affect its business in the near future. Properties located in the Netherlands and in northern Germany are at risk due to potential sea-level rise. Bearing in mind the location of properties in the areas that are already protected by national water management programmes, CTP does not see it as material. Among other analysed risks there is no significant potential impact identified. At the same time, the Company’s design requirements to secure its long-term business performance targets, together with environmental impact assessments followed up by the implementation of recommendations conducted in potentially vulnerable areas, ensures that CTP properties are resilient with regards to analysed risks. CTP's development activities and design specifications include climate adaption measures that meet the requirements of Appendix A of the EU Delegated Act. The outcome of this assessment was used to analyse the climate vulnerability of Group properties and to assess physical and non-physical adaptation solutions in line with EU Taxonomy requirements. We have assessed the impact of climate risk on the financial statements 2022. The majority of the assets in the balance sheet of CTP consist of investment property and investment property under development valued at fair value. Fair value reflects the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. We concluded the effect of climate-related risks do not have a material impact on accounts and disclosures, including judgments and estimates in the financial statements. To identify transition climate risks, a portion of CTP’s properties have been analysed using the CRREM (Carbon Risk Real Estate Monitor) tool. Based on the outcome, an SBTi pathway will be developed.

FOREST REFURBISHMENT

CTP owns approximately 560 hectares of forested land in the Czech Republic, which CTP manages and repairs by replanting with native trees to improve diversity and overall forest health. In the Group's surrounding communities, CTP holds forest cleaning days with its employees and clients, which are aimed at clearing polluted areas while providing a healthy fun weekend for all involved.

Sustainability

268 ESG Strategy

WATER RETENTION & REUSE

CTP installs large-capacity water retention tanks, in various forms, to both manage runoff into local ecosystems but also to use as a repository for sprinkler systems used within the park.

SOLAR & ENERGY USE REDUCTION

CTP buildings are designed to support rooftop PV plants to provide clean energy to the Group's clients, or to sell back to the grid, depending on need. All buildings are built to high BREEAM standards—Very Good or better, providing assurance that they are energy efficient.

	2022	2023 (planned)
TREE PLANTING IN CZECH FORESTS	130,000	155,000

269 2. EMBEDDING PARKS IN COMMUNITIES

Sustainability

270

CTP develops parks. This means that the Company is a long-term neighbour growing within its communities. It is CTP’s ambition to be a good neighbour. Cooperation with municipalities and local communities ensures possibilities for both the Company and its tenants to grow. CTP’s presence does not just provide space for workplace creation; the Company conducts multiple activities related to infrastructure development as well as community support. Although it has not been identified as most material in materiality assessment, it is part of CTP's ESG strategy due to its business importance. CTP does not recognise any negative impact from these activities; on the contrary, value can be created through these activities. One example of long-term involvement is CTP's ownership, re-forestation and management of two forests totalling approximately 560 hectares in the Czech Republic. CTP’s activities not only ensure improvement of the quality of forests that are available to communities but also increase biodiversity and remove significant amounts of carbon dioxide from the atmosphere.

4.3.2 EMBEDDING PARKS IN COMMUNITIES

Category	Targets YE 2026	Baseline YE 2022
Community engaging activities	20 annually	Starting point
Top-50 CTParks verified whether feasible for access by public transport	100%	Starting point
City locations are connected via bike lanes	80%	Starting point
Parks offering charging facilities	100%	Starting point

CTP’s targets for Embedding Parks in Communities

ESG Strategy

MAKING PARKS ACCESSIBLE & ENCOURGING A HEALTHY LIFESTYLE

CTP installs bike racks that allow employees to bike to work, reducing car use, and builds bike paths that connect the Group's parks to local communities.

ELECTRIC CHARGING STATIONS

As EV adoption increases, CTP installs EV charging stations upon client requests. In parks with PV plants, CTP will be able to provide clean energy to the charging stations.

ACESSIBILTY AND SAFETY

Clearly marked and lit bike and pedestrian paths are a major feature, allowing local communities to bike or run through the parks safely, out of the way of large lorries.

CONNECTED & GREEN

CTP works with local authorities to ensure public transport stops are located within the parks. Park grounds are landscaped to ensure a healthy work environment, and where viable, CTP develops its Clubhaus to cater to the community at large in addition to park residents.

271 CLUBHAUS BUCHAREST COMMUNITY STORY

First developed at CTPark Bor as a service centre in 2017, CTP formalised the concept and rolled out its Clubhaus concept in 2020 at the park. A Clubhaus functions as the focal point of a CTPark, fostering deeper community relations. Clubhaus is designed with shared meeting spaces, speakers’ corners, healthy food, doctors’ offices as well as a place to simply meet, talk or relax. They are often built with exercise areas outside, with common space for yoga, education, or safety instruction. Since launch, CTP has refined the Clubhaus concept further at CTPark Bucharest West and CTPark Budapest West and is currently developing another at CTPark Warsaw West, with more planned at various parks around the CTPark Network based on client interest or park size.

272 CLUBHAUS BUDAPEST

CLUBCO BRNO

273 3.# STIMULATING SOCIAL IMPACT AND WELL-BEING

In 2022 CTP supported the UNHCR with a €10 million donation to respond to the humanitarian emergency in Ukraine and neighboring countries. In addition, CTP provided space in Hungary and Romania to support logistics for humanitarian aid and offered accommodation in hotels and residential apartments in the Czech Republic.

Sustainability

Community investment and charity

CTP has a long-standing tradition of engagement with the communities where it operates and with global issues. The Company supports the UN Sustainable Development Goals. CTP promotes socially responsible behaviour throughout the countries in which it operates, where it supports a wide range of community-based organisations mainly focused on support for children and adolescents (e.g., training for professional skills, study grants and equipment support), social well-being and local infrastructure development. The majority of the budget spent in this area supports long-term initiatives. Logistic properties are typically located in out-of-town locations. This creates limited opportunities for people working there to take care of their well-being. In 2018 CTP introduced its first multi-purpose Clubhaus concept building at CTPark Bor. CTP’s Clubhaus offers space that serves communities, both the people living in the neighbourhood as well as the employees of CTP’s tenants. They provide space for educational purposes, healthy nutrition, medical care and other activities and create opportunities to take care of the well-being of thousands of people. Currently there are three operating Clubhaus locations.

Category	Framework for employee satisfaction monitoring in place	Framework for clients satisfaction monitoring in place	Targets
	In Place	In Place	In Place

CTP’s impact goes far beyond the parks and buildings that it creates. Both within the organisation and in the communities where the Company operates, CTP is in constant contact with people and places a value on supporting their well-being. CTP actively helps people in the wider community in many ways, including helping young people in their education, providing shelter and other types of assistance to Ukrainian refugees, and providing financial aid for palliative care.

Health, safety and well-being

CTP values the health and safety of its employees, especially as the Company operates at a fast pace and always wants its employees performing at their best. Needs are addressed locally, and the focus is placed on general health and physical well-being. Therefore, the Company supports, depending on location, sports membership cards, private medical services, sports classes, group participation events and Company gatherings. Safety at the workplace is secured through risk identification and training of employees through online courses. CTP follows all local, national, and international law and regulations and works hard and continuously with service providers to ensure that it knows where risks are and to mitigate them in time. Health and safety related to development activities are managed locally, meeting all local requirements. In 2022 CTP recorded no fatalities among employees. A more systemised approach towards health and safety management will be introduced in the following years. The safety of people working in CTP buildings is the responsibility of tenants. CTP supports tenants in selecting safe premises and makes sure buildings are maintained properly to ensure safety.

4.3.3 STIMULATING SOCIAL IMPACT & WELL-BEING

GRI 403-1 to 403-7 GRI 203-1

CTP’s targets for Stimulating Social Impact & Well-being

ESG Strategy	CONNECTING COMPANIES AND PEOPLE
CTP helps organise "open door" days where clients introduce their company and jobs to local populations through tours or job fairs.
MULTIFUNCTIONAL + MULTIGENERATIONAL	Clubhaus is often used by CTP and tenants as a place for training, lectures as well as continuing education, in addition to providing sports / fitness facilities.

275

4. CONDUCTING BUSINESS WITH INTEGRITY

Sustainability

276

To this extent, in 2022, CTP assessed 217 real estate counterparties, which reflects 100% of transactions; 682 suppliers, including potential new suppliers; and 100% of the entities within the Group on topics such as risks to human rights, ethical behaviour, etc. Across these assessments, no issues were discovered either within, or outside CTP. Due diligence of counterparties is established to mitigate the potential negative impact of conducting business activities on human rights or ethical behaviour in supply chain. CTP is currently involved in one court case; no actions have been taken against the Company. The opposing party has appealed, and the case is pending.

Anonymous intranet grievance channel:
E-mail: compliance@ctp.eu
Phone: +420 607 287 287.

Beyond the grievance channels, CTP has a whistleblower policy in place. As in its grievance channels, the Company encourages employees to contact managers first. However, if for any reason this is not appropriate, the employee should raise his or her concern by using the whistleblowing channel. This channel can be anonymous if desired and offers all protection needed to the whistleblower.

Diversity, equity, and inclusion

GRI 405-1

CTP recruits employees based on talent, experience, and attitude. Because of this, CTP employs a group of diverse, well-motivated, ambitious people. CTP believes that gender equality is a key value. Over the last years, the Company has been able to maintain a gender ratio close to 50:50 below the Board level. At the Board level, two of the six Board members are women, in line with the Company’s goal that gender representation at the Board level not fall below 30%. More information can be found in Section 4.4.3.

CTP strives to conduct business with integrity and works consistently to build and nurture an ethical work environment. The tone for this is set at the top of the organisation actively spreading a culture where speaking up is promoted. This is partially done through training of management on these topics. CTP demonstrates its commitment through various policies related to the topic, such as, but not limited to its:

• Code of Conduct, Suppliers’ Code of Conduct
• Anti-Bribery and Corruption Policy
• Insider Trading Policy
• Donations, Community Investment and Sponsorship Policy

Further policies can be found on CTP’s corporate website. All employees receive annual training on all topics related to compliance to ensure that they are aware of the Company’s policies and procedures. With a large organisation and an expanded value chain, managing risks becomes complex and more important. Due diligence, both within the organisation and through its value chain, is of great importance to the Company. Targets are set to support this agenda through the training of people.

GRI 2-24 GRI 205-1 GRI 206-1 GRI 207 GRI 407-1 GRI 412-2 GRI 414

4.3.4 CONDUCTING BUSINESS WITH INTEGRITY

Category	Targets	Baseline
Employees trained in Code of Conduct, anti-harassment policy each year	100%
Gender split	45-55% YE 2026	Recurring
	Recurring Annually	Annually
	On Target

CTP’s targets for Conducting Business with Integrity

ESG Strategy

277

Sustainability

Company Culture and Employees

4.4

4.4.1 CTP’S CULTURE

The Group employs ambitious professionals who are continuously looking for new opportunities, new locations, new innovations and new markets to better serve its clients. Their responsiveness—to market trends, new technologies, and the Group’s clients’ needs, which often change during the tenancy—has made CTP the market leader it is today. CTP’s employees have a real “can do” mentality. They are competitive, creative and have a clear sense of commitment to deliver the best possible product for tenants. It is their nature to operate from a long-term partner perspective for CTP’s tenants and the communities that the Company serves and where it operates. This is also reflected in the Group’s commitment to sustainability—with sustainability being an integral part of all Company processes. CTP’s construction teams build energy-efficient buildings to minimise resource usage and reduce the size of the Company’s environmental footprint. They go the extra mile to ensure that the Group’s properties are not only business smart but also people friendly. CTP empowers its local teams, with local management having a great level of independence. The Group’s international corporate team is there to support the country teams, share best practices and implement common processes. This allows CTP to provide a true international work environment. In total the Group’s employees represent 23 different nationalities. CTP has a unique entrepreneurial culture. Its flat management structure allows the Group to make decisions quickly, take calculated risks, and be at the vanguard among its peers in bringing in new innovations. This gives the Company a clear edge over many industry players. Company culture is also reflected in CTP’s “Full Speed” motto.

278

Company Culture and Employees

4.4.2 CTP’S VALUES

CTP’s values drive its success, as the implementation of the Company's business model demands excellence at each step of the process, allowing the Group to deliver on its promises. Recruitment is focused on selecting professionals who fit CTP’s culture and whose values align with the Company’s to ensure that teams are working towards common goals. The Group has five deeply rooted values, which inspire its teams to do what they do best: develop sustainable, innovative and high-quality industrial and logistics buildings. As a long-term owner, CTP’s responsibility towards its partners, clients, communities, employees and other stakeholders is preserved by its values.

Commitment: We are committed to build buildings that are future proof and serve the needs of our clients. This is at the heart of what we do and what we are passionate about.We go the extra mile and beyond what is expected, as we are long-term owners and develop to hold. We use high-quality materials that last, reducing maintenance, operational and energy costs to lower the overall cost of occupancy for our tenants. We have a unique product range to provide our clients with sustainable solutions.

Entrepreneurial: We are an entrepreneurial company. We react quickly to both market changes and clients’ needs, take calculated risks and grab opportunities to enhance our leading market position. It is our nature to be competitive, innovative, and agile, while we always strive to do things better than they have been done before, which has brought us this far. We take a hands-on and boots-on-the-ground approach, with local teams that have a high level of responsibility—allowing them to make decisions quickly and adapt to local market circumstances.

Accountability: We are accountable towards our clients, investors, employees, and communities. We set ourselves clear goals, communicate effectively, come up with solutions and pay attention to details. As a long-term partner we take ownership, keep all points of contacts in-house and understand the strategies and needs of our stakeholders, in order to deliver on our promises and remain their partner of choice.

Sustainability: Sustainability underscores our long-term commitment to growth and informs all that we do today. That’s why we build highly efficient buildings to reduce energy and water consumption, always to BREEAM standards, and with our entire built portfolio BREEAM In-Use certified, a first for any leading industrial developer. All of our sustainability efforts are part of our larger goal to become carbon neutral.

Community: Our parks are full of people: our people, our clients, their employees and families. We encourage healthy networks between all stakeholders and local communities, with the goal of improving the quality of life for all involved. We do this by investing in the surrounding communities, providing public relax/exercise facilities, developing relationships with local schools and universities, and creating community centres in our parks and office buildings.

CTP’S EMPLOYEES

CTP considers its employees essential to its success. Its high-performing team of business-smart professionals is experienced and has in-depth understanding of client needs and the markets where the Group operates.

Learning & development

CTP continues to invest in its professionals, providing them with the opportunities they need to develop both their professional and personal skills. The Group provides support for its people to pursue MBAs and other professional qualifications, such as RICS, CFA, etc., and also holds in-house trainings and external seminars and conferences. Employees are encouraged to set professional as well as personal objectives. To train the next generation of managers and educate its talent pool, CTP holds quarterly “Top 30” events, where the country management teams together with the Group’s leadership gather to exchange views on the markets, best practices, and to learn from both internal and external guests. It is CTP’s priority to ensure that all employees can always perform at their best. In this context employees are encouraged to offer continuous feedback and evaluate performance.

Remuneration

On top of their base salaries, the Company incentivises its employees through the achievement of both Company- and country-specific KPIs, creating a strong team culture and alignment with shareholders, as well as personal KPIs, which are agreed yearly with managers.

Attracting talent

Attracting the right talent is critical for CTP. As CTP’s professionals are given a great deal of responsibilities from the day they join, the Group has always been committed to attracting the best talent by fostering professional development, promoting cross-functional and international opportunities, and offering exciting career opportunities at all levels. Continuously bringing in new sets of capabilities is a key success factor for the Group. Managers are actively engaged in the hiring process to ensure the right cultural and professional fit.

Over the last years, CTP has experienced significant growth in the number of assets it operates and in revenue. The number of its employees has followed consequently and increased from an average 379 full-time employees (“FTE”) in 2020 to 553 FTE in 2021, to 634 FTE in 2022. In 2022, the Company hired 249 new colleagues, a year-on-year increase of 20%.

Employee category by gender (in %)	Senior Management	Middle Management	Staff
Male	49%	17.7%
Female	51%	18.8%

Turnover rate headcount (in %)	Under 30	30–50	50+
2022	30%	25%	20%

GRI 2-7 GRI 401-1
Fig. 58

Fig. 59

Fig. 60

CTP’S INCLUSIVE AND SAFE WORK ENVIRONMENT

The Group is committed to providing its employees a working environment that fosters diversity and equal opportunities and to offer to each employee the experience needed to build an exciting career that creates value for the Company. CTP complies with labour standards as set by the relevant regulatory bodies. Discrimination, sexual and any other form of harassment are not tolerated under any circumstances. CTP has implemented an Anti-Discrimination and Harassment Policy to foster safe, equal and inclusive working environments. Workplace safety is secured through in-depth risk identification and by training CTP’s professionals. CTP complies with all local, national, and international laws and regulations and works continuously to mitigate any risk that might appear. The Group actively stimulates a healthy lifestyle for its employees by organising regular sport activities, which foster team spirit.

Diversity and inclusion

Diversity and inclusion form a key part of CTP’s ESG strategy. The Group has shown a stable gender ratio of close to 50:50 over the past years, with the Group targeting at least 45% representing each gender. While CTP historically targeted to have at the Board level at least 30% of members representing each gender, the Group further advanced its diversity policy in November 2022, setting three targets:

1. At least 30% of the Non-Executive Directors shall represent each gender;
2. At least 25% of the Executive Directors shall represent each gender; and
3. At least 30% of the senior management shall represent each gender.

The Group is currently in compliance with the first and third target.

Speak-up culture

CTP, in addition to having a whistleblowing channel, has established a grievance procedure. Employees who believe that they or someone else may be experiencing discrimination or (sexual) harassment are encouraged to contact the appropriate supervisor or Group AML & Compliance Officer. CTP promotes a speak-up culture, where people are not afraid to raise their concerns. The Board conducts a yearly assessment of the tone at the top and the relevance of the values and culture established in CTP’s policies and other documents. In 2022, the Board found that the Company acts in line with its values, codified in CTP’s Code of Conduct: compliance with applicable legal regulations; integrity; objectivity; quality; sustainability; and social responsibility.

Company Culture and Employees

Average FTE’s	2018	2019	2020	2021	2022
Female	156	168	169	189	227
Male	176	190	236	343	324
Avg. FTE’s	332	358	405	532	651

* The FTE numbers reported below differ from those reported on previous page which are based on GRI standards, where FTEs and contractors are separated.

Average FTE’s by Country	2018	2019	2020	2021	2022
CZ	169	190	236	291	345
RO	189	236	343	463	634
All Other Countries			379	463	634
SK
HU
NL
DE
Avg. FTE’s	324	345	379	463	634

Fig. 61

Fig. 61

Remon L. Vos

EXECUTIVE DIRECTOR & CEO

Born in the Netherlands in 1970, Remon Vos founded CTP in 1998 with two investors to develop A-class industrial properties in the Czech Republic. Over the next 20 years Remon grew the CTPark Network to become the largest integrated system of full-service business parks in Central and Eastern Europe (“CEE”). In July 2019, Remon took over 100% control of the CTP Group and continues to lead the company at full speed. He is personally involved at both the executive and operational levels in all CEE markets, growing the portfolio and strengthening relationships with long-term business partners.

Richard Wilkinson

EXECUTIVE DIRECTOR, DEPUTY CEO AND CFO

Richard joined CTP in 2018 as CFO and is responsible for the financing of the entire Group portfolio throughout CEE. With several others, Richard oversaw the first sale of a portion of CTP’s portfolio to a third party, organised the largest industrial real estate refinancing in CEE history, and lead CTP’s debut green bond—the largest inaugural offering in CEE real estate. After studying law at the London School of Economics, Richard moved to a career in finance. For nearly 30 years he has held various senior management positions in treasury, balance sheet management, corporate banking and real estate.

CTP is guided by a team of highly experienced property professionals. With strong Group leadership at the executive level, CTP country teams, with deep local market knowledge, are provided autonomy to react quickly to market developments and client requests. Local CTP teams work together seamlessly sharing best practice to provide innovative solutions and build long-term growth.# Sustainability Leadership

Michal Felcman

HEAD OF M&A
Michal specialises in M&A, financial management and restructuring. He is responsible for the acquisition and later integration of several companies into the fast-growing CTP world.

Květa Vojtová

GROUP HEAD OF M&A LEGAL
Two decades of experience in corporate law and an ability to move things fast without missing a beat. This is why Květa leads CTP’s M&A legal team, which supports all acquisitions, divestments, and Group restructuring.

Thomas Bergman

GROUP DIRECTOR OF IT
As a technical leader, Thomas brings more than ten years of experience in digital transformation and innovation through building reliable processes and empowering IT departments. Coming from the fast world of IT start-ups and scale-ups, he applies his expertise at CTP to use technology and data to deliver a lasting business impact.

Oliver Oros

HEAD OF LEASING LEGAL
Oliver leads CTP’s legal leasing department with more than 10 years of experience in real estate law and adjacent legal areas primarily involving commercial law, including corporate law matters and related litigation.

Company Culture and Employees

Bert Hesselink

GROUP CLIENT RELATIONSHIP DIRECTOR
Bert is a well-respected real estate professional with almost 20 years of international experience in commercial real estate. He is responsible for translating rapidly changing tenant needs into business opportunities for developing better commercial spaces in sought-after locations in CEE. Bert lectures at the MBA real estate programme at the University of Economics in Prague.

Patrick Zehetmayr

GROUP CFO
Patrick brings 30-plus years of banking and leadership experience to his new role as Group CFO. He joins CTP from Erste Group Bank in Vienna, where he served, most recently, as Head of their Commercial Real Estate division. As Group CFO, Patrick’s focus is on supporting CTP’s growth, ensuring transparency, and driving strong financial returns to its shareholders.

Dragana Djordjevic

CFO, SERBIA
Dragana oversees the accounting and finance operations for CTP’s Serbian portfolio, which holds the number-one position on this fast-developing and strategic market. Twenty years in finance has prepared her well for this task.

Bogi Gabrovic

DEPUTY COUNTRY HEAD, POLAND
A seasoned and inspirational team leader, Bogi brings 25+ years’ experience from PwC and finance executive roles from multiple international organisations to her role as CFO for Poland, where she is developing a strong local team and expanding CTP’s presence in CEE’s largest economy.

Ana Dumitrache

MANAGING DIRECTOR, ROMANIA
Under Ana’s dynamic leadership, Romania has grown to be CTP’s second-largest market with a portfolio of leasable property of over 2.1 million sqm. She has over 20 years of real estate experience in both the private and banking sectors and extensive experience helping international companies grow their business in Romania.

Eleonora Amariutei

CFO, ROMANIA
Eleonora brings finance experience from both corporate and government perspectives, including as the CFO for Billa Romania for over ten years. In 2020, she joined CTP to deepen growth in the Romanian market.

David Chládek

MANAGING DIRECTOR, CZECH REPUBLIC
David started with CTP in 2011 and has grown to play a vital role in orchestrating and leading all of CTP’s construction across the Czech Republic, the Company’s largest portfolio. He has an MBA focused in strategic management from Nottingham Trent University and over 20 years of experience in construction and real estate.

Jakub Kodr

HEAD OF BUSINESS DEVELOPMENT, CZECH REPUBLIC
Jakub is always on the go traversing the Czech portfolio to make sure tenants are happy and that the Company’s parks are in tip-top order. With a decade of experience, an MBA in real estate investment and MRICS accreditation, he leads the BizDev team with his skill for tenant-park matchmaking and scouting new opportunities.

Sustainability

Ivan Šimo

CONSTRUCTION DIRECTOR, SLOVAKIA
Ivan rose rapidly through the CTP ranks after joining CTP as a Junior Project Manager just over three years ago. Today, he plays a brick-and-mortar role in building the success of the Company’s portfolio in Slovakia, from overseeing construction to scouting new locations. He holds a master’s degree in engineering from the Slovak University of Technology in Bratislava.

Stanislav Pagáč

MANAGING DIRECTOR, SLOVAKIA
Stano has grown the Slovak team from two to 30 in five years as Country Head of Slovakia. He set a major goal for 2021—to drive CTP to the number-one position on the Slovak market, which he achieved in 2022, aided by his 18+ years of experience in Slovak real estate.

Paul Dijkstra

CFO, NETHERLANDS
Paul Dijkstra joined CTP in 2021 and has 15 years of experience in the real estate business, working for Deloitte Real Estate Advisory as a management consultant, and later, the City of Amsterdam as CFO of the Real Estate department. Paul uses his deep experience in real estate and finance to expand CTP’s footprint in the Netherlands with a long-term investment focus.

David Strobl

CONSTRUCTION DIRECTOR, AUSTRIA
David joined CTP in July 2021 to lead CTP’s construction team in Austria. With 30 years of experience in the construction field, he has a wide range of expertise in overseeing construction projects from the initial phase to handover, including negotiating with local authorities and other stakeholders at all stages of project realisation and building long-term relationships with business partners, clients and suppliers.

Ferenc Gondi

MANAGING DIRECTOR, HUNGARY
Ferenc brings extensive experience as the head of CTP’s Hungarian legal team to his new leadership role in Hungary. As in-house counsel his experience includes all legal aspects supporting expansion in Hungary, including acquisitions.

Veronika Ladó

CFO, HUNGARY
Veronika joined CTP Hungary as Funding Manager, where she handled the financing of projects across CTP’s Hungarian portfolio. After success in that role, she became CTP’s CFO in Hungary. She holds an MBA from the Budapest University of Technology and Economics and has nearly 20 years of experience working for several large banks in the country.

Company Culture and Employees

Sustainability

Maarten Otte

HEAD OF INVESTOR RELATIONS
Maarten joined CTP in October 2022 to establish and further develop relationships with existing and future investors and sell-side analysts. He joins CTP from Unibail-Rodamco-Westfield, one of the world’s leading developers and operators of shopping malls, where he was Group Director of Investor Relations and gained broad real estate experience.

Ondřej Tupý

GROUP ENERGY MANAGER
Ondřej has many years of experience in the energy industry. He joined CTP with responsibility for the construction of photovoltaic sources, battery storage and the development of electromobility. He worked most recently at Innogy, where he was responsible for the B2B business segment.

Rohia Hakimová

GROUP AML COMPLIANCE OFFICER
Rohia joined CTP to help implement legal requirements leading to CTP’s green bond issuances in the autumn of 2020, which were rolled out with market-record success. As CTP’s compliance leader, she continues to build CTP’s corporate culture and oversee compliance protocols.

Jan Hübner

CONSTRUCTION DIRECTOR FOR CZECH REPUBLIC
Jan has extensive experience on construction and development projects in the Czech Republic, Slovakia, Poland and Hungary, including as designer, site manager, project manager, construction director and country CEO. He holds master degrees in civil engineering and economics.

Patryk Statkiewicz

GROUP HEAD OF MARKETING & PR
Patryk joined CTP in 2022 after more than 11 years with FedEx Express in various roles regionally (Benelux, Germany) and globally. He brings expertise in marketing, brand strategy, demand generation and customer experience to his new role managing CTP’s award-winning marketing team.

Adam Targowski

GROUP HEAD OF ESG MANAGEMENT
Adam and his team are responsible for setting up the Group ESG strategy and its execution together with the country teams. Prior to joining CTP in 2022, he was responsible for sustainability at Skanska’s development business in CEE and ran a consultancy in the field of sustainability.

Dominika Duda—Sloma

FINANCE DIRECTOR (POLAND)
Dominika brings more than 15 years of financial and account management experience to her role as Finance Director for CTP in Poland, with expertise in accounting, taxes, reporting, transaction planning, and financing. She worked for Immofinanz Group prior to joining CTP.

Lukáš Svoboda

PROCUREMENT MANAGER
Lukáš joined CTP in 2022 after many years in procurement on various projects around the world. He works to achieve Group-wide savings, leveraging the scale of CTP’s operations through unified purchasing. Based on his previous experience, he is also involved in CTP’s transformation towards a green-energy future.

Ivana Ficzová

CFO, CZECH REPUBLIC
Ivana has more than 15 years of real estate finance experience. During her career, she has helped move a number of impressive real estate transactions. As CFO for the Czech Republic, she focuses on strategic financial management and growth with the country's leadership team.

Dirk Sosef

HEAD OF RESEARCH AND STRATEGY
Dirk joined CTP in 2022 to bolster the Company’s strategy with actionable insights that provide competitive advantages and growth opportunities over the long term. Prior to joining CTP he was head of the European Research & Strategy team at Prologis.

Stefan De Goeij

ESG & ENERGY LEAD
As ESG and Energy Lead, Stefan helps drive CTP’s ambitious Group-wide sustainability agenda. He re-joined CTP in 2023 after two years as Head of Sustainability and Property Management Services at global real estate consultancy Avison Young in the Czech Republic. Prior to that, he was Group Head of Property Management and Group Sustainability Officer at CTP for 10 years.He serves as Chairman of the Advisory Board of RICS in the Czech Republic and lectures on ethics at the MBA real estate programme of the University of Economics and Business in Prague.

Chris Dekkers
GROUP HEAD OF CONTROLLING AND PROCESS MANAGEMENT

Chris is a professional finance leader with broad experience in different leadership roles within international organisations, most recently as Head of Control at Unibail-Rodamco-Westfield. He joined CTP in 2022 to grow and develop the Group Controlling Team, bringing strategic insights to the organisation.

Lukáš Moravčík
GROUP HEAD OF PROCUREMENT

Lukáš joined CTP as Group Head of Procurement in 2022 to help bring more structure and organisation to CTP’s procurement activities. He currently focuses on the Czech Republic, where he aims to create a more digitalised, effective, and transparent procurement process that will help CTP achieve its ambitious goals. Before joining CTP, Lukáš held various senior procurement positions in Germany, Austria and Slovakia in real estate, as well as in other industries.

Timo Hielscher
REGIONAL DEVELOPMENT DIRECTOR WEST, GERMANY

Timo started his real estate career as investment manager for Aurelis Real Estate in Duisburg and from 2020 was Head of Asset & Property Management & Transactions in western Germany. He joined CTP in 2022 to expand the portfolio further into western Germany.

Fabian Kempchen
REGIONAL DEVELOPMENT DIRECTOR EAST, GERMANY

Fabian is responsible for asset and property management throughout CTP’s portfolio in northern Germany. He was previously responsible for managing the same portfolio prior to its acquisition by CTP in 2022. His focus is to modernise and further develop the existing portfolio and search for new acquisition opportunities (not pictured here).

Company Culture and Employees 287

CTFEST

CTFest was launched in 2017 to bring the whole Company together for a day of fun, relaxation, entertainment, and particularly to celebrate the achievements of long-term colleagues in an enjoyable summertime atmosphere. In 2022 we celebrated Petr Svoboda and Radka Veletová, who have been with CTP for nearly 20 years. The evening highlight—a tug-o-war competition between countries—keeps the CTP competitive spirit alive. Congratulations Team Slovakia who took home the trophy!

Sustainability 288

DOKSY RACE

CTP has been the main sponsor of the annual Doksy Race held in the Czech Repulbic. The half-triathlon was taken up by individuals and teams, with CTP teams getting on the podium in the Real Estate Cup.

SLOVAKIA TEAM BUILDING

All countries engage in employee team building outings during the year. Here, team Slovakia demonstrates their entreprenurial and competitive spirit in an outing in September.

Company Culture and Employees 289

Sustainability

TOP 30

CTP leaders take time out twice a year to meet, exchange experiences and review country and group KPIs.

TOP 30 BRNO

A key meeting was held in Brno at the end of the year in which the Company leadership oulined CTP's new strategy for the coming decade.

Company Culture and Employees 290

CTP GALA

At year end, CTP celebrated with the whole Company in formal style. The largest Gala to date welcomed over 500 CTP employees and guests. Featuring the annual CTP Awards, the teams took the opportunity to tout their successes as well as show their talent, while getting the opportunity to meet both new and old colleagues from across CTP's markets.

ZUZANA CZ, EXPO 291

EU Taxonomy

4.6 EU Taxonomy is intended to reorient capital flows towards a more sustainable economy. Article 8(2) of the Taxonomy Regulation requires non-financial undertakings to disclose information on the proportion of the turnover, capital expenditure and operating expenditure of their activities related to assets or processes associated with environmentally sustainable economic activities. CTP discloses its eligibility and alignment in line with requirements.

Sustainability Taxonomy eligible and aligned activities

Category	Turnover	CapEx	OpEx
	46.4%	4.8%	13.7%

292

4.6.1 KPIs (METHODOLOGY OF CALCULATION)

Turnover

Turnover KPI is calculated based on the Group’s 2022 consolidated financial statements and on the notes to the financial statements.

• Eligible turnover (numerator) = Rental Income + Service Charge income + Income from Development Activity + Hotel Rental Income
• Total turnover (denominator) = Total Revenues (Consolidated profit and loss statement)
• Aligned turnover (numerator) = Eligible turnover from economic activities attributed to assets (properties) that meet technical screening criteria including Substantial Contribution Criteria, Do Not Significantly Harm Criteria and Minimum Social Safeguards

To avoid double counting in the numerator, economic activities are attributed to the Company’s business activities that are presented separately in the financial statements. Eligible turnover from economic activities that contribute to specific environmental objectives is presented separately. Economic activities are verified against their contribution to climate adaptation.

Capital expenditure (CapEx)

CapEx KPI is calculated based on the notes to the financial statements.

• Eligible CapEx (numerator) = Land acquisition (Note 17 Acquisitions – Landbank) + Costs related to design and project preparation and construction (Note 18 Additions IPUD) Restructuring and major renovations of standing buildings (Note 17 Additions – owned building and land) + Investment in all renewable energy sources including photovoltaic systems on facades and roofs (Note 20 value described under the table) + Acquisition of existing buildings (Note 17 Acquisitions – Buildings, Note 18 Acquisitions – IPUD)
• Total CapEx (denominator) = Total of additions and acquisitions in Note 17, 18, 20 (Consolidated Financial Statement)
• Aligned CapEx (numerator) = Eligible CapEx from economic activities attributed to assets (properties and photovoltaic systems) that meet technical screening criteria including Substantial Contribution Criteria, Do Not Significantly Harm Criteria and Minimum Social Safeguards

To avoid double counting in the numerator, economic activities are attributed to the Company’s business activities that are presented separately in the financial statements. Eligible CapEx from economic activities that contribute to specific environmental objectives are presented separately. Economic activities are verified against their contribution to climate adaptation.

Operational expenditure (OpEx)

The EU Delegated Act list items to be considered as OpEx as: research and development, building renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of assets of property, plant and equipment by the undertaking or a third party to whom activities are outsourced that are necessary to ensure the continued and effective functioning of such assets. Due to this, the calculation is not based on the consolidated financial statements. Instead, a bottom-up approach has been used. OpEx has been extracted from the breakdown of annual internal spendings.

• Eligible OpEx = Maintenance, repair and management of parks
• Total OpEx = Total property operating expenses
• Aligned OpEx (numerator) = Eligible OpEx from economic activities attributed to assets (properties) that meet technical screening criteria including Substantial Contribution Criteria, Do Not Significantly Harm Criteria and Minimum Social Safeguards

To avoid double counting in the numerator, economic activities are attributed to the Company’s business activities that are presented separately in the financial statements. Eligible OpEx from economic activities that contribute to specific environmental objectives is presented separately. Economic activities are verified against their contribution to climate adaptation.

293

4.6.2 ELIGIBILITY

CTP’s business activities were screened based on EU Taxonomy definitions, and four eligible economic activities have been identified: 7.1 Construction of new buildings; 7.2 Renovation of existing buildings; 7.6 Installation, maintenance, and repair of renewable energy technologies; and 7.7 Acquisition and ownership of buildings.

The EU Delegated Regulation defines 7.1 Construction of new buildings as: Development of building projects for residential and non-residential buildings by bringing together financial, technical and physical means to realise the building projects for later sale as well as the construction of complete residential or non-residential buildings, on own account for sale or on a fee or contract basis. As CTP’s development activities are directly related to the above definitions, the following tasks are considered relevant:

1. Land acquisition (CapEx);
2. Costs related to design and project preparation (CapEx);
3. Construction of new buildings (CapEx);
4. Extension of existing buildings (CapEx);
5. Income from development activity (Revenue).

EU Taxonomy 294

The EU Delegated Regulation defines 7.2 Renovation of existing buildings as: Construction and civil engineering works or preparation thereof. As CTP’s renovation activities are directly related to EU Taxonomy definitions, the following tasks are considered relevant:

1. Restructuring and major renovations of standing buildings (CapEx).

The EU Delegated Regulation defines 7.6 Installation, maintenance, and repair of renewable energy technologies as: Installation, maintenance, and repair of renewable energy technologies, on-site. As CTP invests in the development of photovoltaic capacity, the following tasks are considered relevant:

1. Investment in all renewable energy sources including photovoltaic systems on facades and roofs (CapEx);
2. Maintenance of existing renewable energy systems (OpEx).

The EU Delegated Regulation defines 7.7 Acquisition and ownership of buildings as: Buying real estate and exercising ownership of that real estate.

295As CTP’s acquisition activities directly relate to the above definition, the following tasks are considered relevant: 1. Acquisition of existing buildings (CapEx); 2. Costs related to buildings maintenance and operations (OpEx); 3. Rental income (Turnover); 4. Service Charge Income (Turnover); 5. Hotel Rental Income (Turnover).

4.6.3 ALIGNMENT

EU Taxonomy disclosure also requires reporting on the alignment of eligible activities with the Technical Screening criteria set out in Commission Delegated Regulation 2021/2139. Determination of taxonomy alignment requires that the eligible economic activity concerned makes a significant contribution to the attainment of one or more environmental objectives, does not significantly harm any other environmental objective, and the company complies with the minimum social safeguards in relation to among others, occupational health and safety, corruption, tax, fair competition and human rights.

With respect to the verification of contributions to environmental objectives and Do Not Significantly Harm Criteria, the technical screening criteria for the individual climate objectives are defined in Annex I and Annex II of the Delegated Act. The six Taxonomy environmental objectives are:

1. Climate change mitigation;
2. Climate change adaptation;
3. The sustainable use and protection of water and marine resources;
4. The transition to a circular economy;
5. Pollution prevention and control;
6. The protection and restoration of biodiversity and ecosystems.

Two published environmental objectives—Climate change mitigation and Climate change adaptation—are verified on an economic activity basis and documented in checklists. Verification of the Minimum Social Safeguard requirement has been done on a company level. It consists of embracing international conventions and regulations on health and safety, corruption, tax, fair competition and human rights, such as OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights (UN- GPs), ILO core conventions and the International Bill of Human Rights. CTP embraced relevant guidelines and processes to extent that allows to consider CTP compliant although there are areas for further development. Additionally verification of CTP’s liability in respect of breach of any of these aspects has been carried out.

All Group assets that are under management and under construction are screened based on technical screening criteria for specific activities (including Substantial Contribution Criteria, Do Not Significantly Harm Criteria and Minimum Social Safeguards). Each asset is tested using appropriate checklists. A set of aligned and non-aligned assets is developed and used to report KPIs on alignment. All properties considered aligned have climate adaptation solutions that substantially reduce most important physical climate risks from list in Appendix A of Delegated Act introduced.

Eligible Turnover, CapEx and OpEx attributed to Activities related to assets that are aligned are recognised as aligned. Attribution to activities secure avoidance of double counting.

CTP conducted an analysis of its eligibility and alignment with EU Taxonomy for the first time in 2022. CTP’s core business operations are focused on the construction of buildings and management of existing properties. Core operations are focused on economic activities that are considered eligible (7.1, 7.2, 7.6 and 7.7). These high-level eligibility results are for all KPIs (turnover: 100%, CapEx 96.8%, 81.4%). High values of eligibility are typical for real estate management and development companies.

Alignment with EU Taxonomy means meeting multiple requirements that apply to company governance, processes, specific project requirements and detailed reporting. CTP adapted the requirements stated in the Minimum Social Safeguard requirements, adjusting its policies and processes. Meeting these requirements is a prerequisite to consider any activity aligned.

In 2022, CTP analysed economic activities against respective technical screening criteria. In terms of Substantial Contribution criteria, climate adaptation has been chosen for all activities. Alignment levels of 46.4% for Turnover, 4.8% for CapEx and 13.7% for OpEx have been achieved.

CTP’s turnover comes mostly from managed properties. The share of properties that can ensure aligned turnover is a result of the quality of managed properties and the age and share of acquired buildings vs. self-developed. CTP-developed buildings are of high quality and ensure Sustainability 296 EU Taxonomy high energy efficiency. To increase the share of aligned properties, among others the further development of energy performance certificates, further renovation activities are required.

CTP CapEx is mostly spent on the construction of new buildings and the acquisition of existing properties. To increase the share of aligned CapEx, detailed requirements for the construction of new buildings (Activity 7.1) require some adjustments to CTP’s building and construction process specification. As CTP already certifies buildings in the BREEAM scheme, required adjustments are small. For building acquisitions, technical due diligence will be developed to cover Taxonomy aspects to make sure conscious decisions in this field are made.

Aligned OpEx relates to aligned properties under management. These aligned properties however have a relatively low share of operation and maintenance cost and therefore the reported aligned OpEx deviates from the aligned Turnover.

CTP issued green bonds that are not directly related to the EU Taxonomy. Presented KPIs are not adjusted. Adjusted KPIs based on the assumption that share of CTP assets is financed with proceeds from green bonds can be found below. Adjustment has been calculated based on the assumption that Fair value of portfolio equals to €10,124,185 (Note 17) is financed by green bonds (Note 28 – €3,961,350, excluded €20,000 of non-green bonds). Non adjusted KPIs have been multiplied by the share of the portfolio that is not financed by green bonds (that equals to 60.9%). Adjusted KPIs are 28.3% for Turnover, 3.0% for CapEx.

The breakdown of Taxonomy eligibility and alignment by activities can be found in Appendix 7.4.

Table 2 Quantitative breakdown of aligned CapEx

Activity Category	€	Activity	€
Activity 7.1		Construction activities	82,245,669.56
Activity 7.6		Installation of photovoltaics	24,923,000.00
Activity 7.7		Acquisitions	4,708,500.00
Total aligned CapEx			111,877,169.56

Table 3 Quantitative breakdown of aligned OpEx

Activity Category	€	Activity	€
Activity 7.7		Maintenance and operations of existing building	11,611,297.20
Total aligned OpEx			11,611,297.20

Table 1 KPIs adjustment

	€
Note green bonds	3,961,350,000.00
Note 28, excluding 20MEUR non-green bonds
Investment property	10,124,185,000.00
Note 17
Investment property funded by green bonds	39.1%
Aligned Turnover, non-adjusted	46.4%
KPI table in Appendix 7.4
Estimated to be funded with green bonds (based on 39.1%)	18.2%
Aligned Turnover, adjusted	28.3%
Aligned CapEx, non-adjusted	4.8%
KPI table in Appendix 7.4
Estimated to be funded with green bonds (based on 39.1%)	1.9%
Aligned CapEx, adjusted	2.9%

297

ENERGY STORY: FUTURE-PROOFING OUR BUSINESS MODEL

Utilising the portfolio’s vast expanse of rooftop space to generate a secure, renewable, off-grid power supply for park and tenant operations. Creating a third income stream for the Company while boosting sustainability—for ourselves, our clients, and the planet.

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300

301

302

303

304

305

306

307

308

ONDŘEJ, ENERGY CZ

309

5 Corporate Governance

Board of Directors

312 Biographies of directors of CTP’s Board

314

5.1 Governance Report

316

5.1.1 CTP’s goverance structure

316

5.1.2 General Meetings

316

5.1.3 Appointment and composition of the Board

317

5.1.4 Audit Committee report

319

5.1.5 Nomination and Remuneration Committee report

320

5.1.6 CTP N.V. 2022 remuneration report

320

5.1.7 Sustainability Committee report

329

5.1.8 Board Meetings

329

5.1.9 Post-2022 events

329

5.1.10 Board’s role in risk oversight

330

5.1.11 Diversity and inclusion

330

5.1.12 Compliance with the Code

330

5.1.13 Further information pursuant to the Decree Takeover Directive

331

5.1.14 CTP’s compliance function

333

5.1.15 Corporate governance statement

334

5.1.16 Responsibility statement made by the Executive Directors

334

5.2 Risk management and internal controls

336

5.2.1 CTP Group approach to Risk Management

336

5.2.2 Risk Management Policy

336

5.2.3 ERM framework

336

5.2.4 Implementation of the Risk Management Process

340

5.2.5 Risk Management System

340

5.2.6 Internal Controls

340

5.2.7 Responsibilities

340

5.2.8 Risk Appetite

340

5.2.9 Risk Control Framework

340

5.2.10 Update on CTP’s Principal Risks in 2022

341

5.3 Principal Risks

342

Corporate Governance

310

CTP is a public limited liability company under Dutch law, listed on Euronext Amsterdam N.V. (“Euronext Amsterdam”) since 25 March 2021 and included in the AMX index since 21 March 2022. CTP has designed its corporate governance structure to best support its business, to meet the needs of its (Non-) Executive Directors and stakeholders, and to comply with all applicable laws, the Dutch Corporate Governance Code (“the Code”) and other applicable regulations. Information the Company is required to disclose pursuant to the Decree on the content of the management report (in Dutch: Besluit inhoud bestuursverslag) is included in this Annual Report, including CTP's corporate governance statement (section 5.1.15). The corporate governance statement is also available on CTP's website. This chapter of the Annual Report addresses CTP’s overall corporate governance structure and states to what extent CTP adheres to the best practice provisions of the Code and where it deviates.# CTP N.V. 2023 Annual Report on Form 10-K

Item 10. Directors and Executive Officers of the Registrant

Substantial changes to CTP’s corporate governance structure and in the Company's compliance with the Code will be submitted to the General Meeting for discussion under a separate agenda item.

5 Corporate Governance

Corporate Governance

Board of Directors

Remon L. Vos
EXECUTIVE DIRECTOR & CEO

Born in the Netherlands in 1970, Remon Vos founded CTP in 1998 with two investors to develop A-class industrial properties in the Czech Republic. Over the next 20 years Remon grew the CTPark Network to become the largest integrated system of full-service business parks in Central and Eastern Europe (“CEE”). In July 2019, Remon took over 100% control of the CTP Group and continues to lead the company at full speed. He is personally involved at both the executive and operational levels in all CEE markets, growing the portfolio and strengthening relationships with long-term business partners.

Richard Wilkinson
EXECUTIVE DIRECTOR, DEPUTY CEO AND CFO

Richard joined CTP in 2018 as CFO and is responsible for the financing of the entire Group portfolio throughout CEE. With several others, Richard oversaw the first sale of a portion of CTP’s portfolio to a third party, organised the largest industrial real estate refinancing in CEE history, and lead CTP’s debut green bond—the largest inaugural offering in CEE real estate. After studying law at the London School of Economics, Richard moved to a career in finance. For nearly 30 years he has held various senior management positions in treasury, balance sheet management, corporate banking and real estate.

Barbara Knoflach
NON-EXECUTIVE DIRECTOR & CHAIRWOMAN

Barbara’s career has taken her through banking and finance, real estate, and most recently to innovation and sustainability. Her career highlights include her positions as CEO of SEB Asset Management from 2005 to 2015, and later as Global CEO of BNP Paribas Real Estate Investment Management. She hones her ability to look at the bigger picture and shares her dynamic experience sitting on several committees and boards throughout her career, such as AFIRE, BVI, ULI, ZIA, and the Real Estate Academic Initiative at Harvard University. Most recently, she created LifeWorkSpace, a consulting and private investment company focused on spurring innovation and sustainability strategies in the real estate sector. She is a co-founder of TinyBE, a non-profit organisation engaged in innovative art projects.

Susanne Eickermann-Riepe
NON-EXECUTIVE DIRECTOR

Susanne joined CTP’s Board following the end of her tenure as an active partner at PwC Germany, where she served as Head of Real Estate. With 30 years of experience in strategic and operational consulting in financial services, real estate services, funds and companies, Susanne knows that the future of the industry will not happen without sustainability. Due to her professional background and leadership in innovation, Susanne was appointed as the chair of the board of the Royal Institution of Chartered Surveyors (RICS) Germany, where she drives several working groups on the implementation of the EU Green Deal. Susanne’s high professional rankings paired with her future-leaning environmental concerns have placed her on several real estate advisory positions. Her activities are spurred by her belief that the real estate sector must take more responsibility and action for an equitable future.

Gerard van Kesteren
NON-EXECUTIVE DIRECTOR

Gerard is a financial specialist in the global logistics sector and is a non-executive director of a number of companies, as well as a senior advisor with McKinsey & Company, and has extensive international experience and financial management capabilities. Gerard worked with Kuehne + Nagel for a total of 25 years; from 1999 until 2014 as the Group Chief Financial Officer and as a member of the Management Board, being highly influential in the development of the K+N Group. During his career, he held leading positions in finance at Sara Lee Corporation; six years as Financial Director in the UK, two years in Spain, and two years as Director of Financial Planning and Analysis in the Netherlands. In addition, Gerard was named CFO of the Year in 2010 by CFO Forum Switzerland and served as Chairman of the CFO Circle (Switzerland) from 2014–2019. He is the founder and board member of the van Kesteren Foundation, which extends aid and youth programmes across developing countries.

Pavel Trenka
NON-EXECUTIVE DIRECTOR

Pavel brings a wealth of international experience to the table. For over a decade at HB Reavis, he led their international expansion beyond the Czech Republic and Slovakia, both in Western Europe and CEE. He started out on the Board, then became the Group CEO for five years and thereafter continued in a leadership position as a Non-Executive Director. He was previously was an Associate Partner at McKinsey & Company working in CEE, Russia and the USA. During his tenure there, he worked extensively with large international clients, primarily on revenue growth strategies and organisation transformations. He started his career with Bank Austria Investment Bank during the privatisations of the early 1990s. He holds an MBA in Finance and Economics from the University of Rochester (USA) and an undergraduate degree from the University of Economics in Bratislava. In Slovakia, he founded two non-profits, both geared to support youth skill development, where he is actively engaged.

BIOGRAPHIES OF DIRECTORS OF CTP’S BOARD

POSITION	NATIONALITY, YEAR OF BIRTH	FIRST APPOINTED ON	END OF CURRENT TERM OF APPOINTMENT	PREVIOUS SIGNIFICANT POSITIONS	ADDITIONAL POSITIONS	INDEPENDENCE	SHAREHOLDING
Group CEO	Dutch, 1970	1 July 2020	Indeinite	CEO of CTP	• None	No	335,644,164 (held by CTP Holding B.V.)
CFO	British, 1964	28 December 2020	2025	• Senior management positions, inter alia Head of Commercial Real Estate Business	• Erste Group	Yes	6,666 (not including LTIP conditional shares)
Chairwoman, Non-Executive Director	Austrian, 1965	29 March 2021	2024	• Deputy CEO and Global Head of Investment Management SEB Asset Management • CEO	• Swiss Prime Site (Switzerland) Real Estate company, listed • Board Member • Aareal Bank AG Bank • Supervisory Board Member • Landmarken AG Developer, family-owned company • Supervisory Board Member	Yes	8,921
Non-Executive Director	Dutch, 1949	29 March 2021	2024	• CFO Kuehne + Nagel International AG	• Deufol SE (Germany ) Packaging services and associated services • Member of the Board • De Well (Hong Kong) Global logistics and forwarding enterprise founded in Shanghai • Member of the Board • Raben Group (Netherlands) Logistics company • Member of the Supervisory Board • Planzer Holding AG (Switzerland) Logistics/transportation company • Member of the Supervisory Board • Janel Corporation (USA) Logistics company, listed • Chair of the Audit Committee, • Member of the Board, • Member of the Nomination and Compensation Committee	Yes	31,185
Non-Executive Director	German, 1960	29 March 2021	2024	• Partner, Head of German Real Estate Business PwC	• ARE Austrian Real Estate GmbH Real Estate company • Member of the Supervisory Board • Engel & Völkers Venture Management AG Service company specialised in the brokerage of premium real estate, yachts and aircrafts • Deputy Chairperson of the Supervisory Board • RICS Royal Institute of Chartered Surveyors • Chair of the European World Regional Board , • Chair of the Advisory Board of RICS Germany • ICG Institute Association representing the general interests of the German real estate industry • Chair of the Board	Yes	14,400
Non-Executive Director	Slovak, 1973	29 March 2021	2024	• CEO HB Reavis Group	• Leaf Non-profit organisation • Board Member • Duke of Edinburgh International Award Non-profit organisation • Board Member	Yes	99,382

Remon Vos

Richard Wilkinson

Barbara Knoflach

Gerard van Kesteren

Susanne Eickermann-Riepe

Pavel Trenka

5.1 Governance Report

5.1.1 CTP’S GOVERANCE STRUCTURE

CTP has a one-tier board structure consisting of one or more executive directors (“the Executive Directors”) and independent non-executive directors (“the Non-Executive Directors”), who together constitute the Board of Directors (“the Board”).

In accordance with the Board Rules, resolutions of the Board are adopted by a simple majority of the votes cast at a meeting at which at least the majority of its members are present or represented. Each Director has the right to cast one vote. In a tied vote, the proposal will be rejected unless the CEO uses his right to exercise a casting vote. The Board Rules are available on CTP’s website.

In addition to the Board Rules, the Board has adopted charters of its Committees, to which the Board, while retaining overall responsibility, has assigned certain tasks: the audit committee (“the Audit Committee”), the nomination and remuneration committee (“the Nomination and Remuneration Committee”), and the sustainability committee (“the Sustainability Committee”). Each Committee reports to the Board.

5.1.2 GENERAL MEETINGS

The Annual General Meeting (“AGM”) is held at least once a year, no later than 30 June. The agenda for the AGM includes, among other things, the adoption of the Group’s annual accounts, the appointment of the external auditor, the allocation of profits insofar as this is at the disposal of the AGM, and any other matters proposed by the Board or by the shareholders in accordance with the Company’s Articles and Dutch law.# Corporate Governance

Board of Directors

The Board currently consists of six Directors of whom two are Executive Directors and four are Non-Executive Directors. The Board serves as both the executive and supervisory body of the Company. Under CTP’s articles of association (“the Articles”) and Dutch law, the Board is collectively responsible for the Company’s management, general and financial affairs, policy as well as for its operations, taking into consideration the interests of the Group’s stakeholders. The Board determines how long-term value creation is relevant for the Company and its business, maintains awareness of the impact that the actions of the Company and the business have on the value chain, and takes into account relevant stakeholder interests in this context.

Within the Board, the Non-Executive Directors supervise and provide advice on the performance of the duties of the Executive Directors, the Company and its business. Furthermore, the Non-Executive Directors supervise the Executive Directors’ implementation of the Company’s strategy. The Non-Executive Directors also determine the targets and remuneration of the Executive Directors in accordance with the Group’s remuneration policy and any arrangements for remuneration in the form of Company shares or rights to subscribe for shares (as approved by the Annual General Meeting).

The Board has adopted written rules of procedure governing the internal proceedings of the Board (“the Board Rules”) that govern its performance, decision making, composition, the tasks and working of its committees. The Company Secretary ensures that Board decisions are made in accordance with the Articles and the Board Rules and supervises the implementation of adopted resolutions by the Board. The Senior Independent Director also acts on behalf of the Board as the main contact for shareholders and for General Meetings.

A Director is appointed for a term lapsing ultimately at the end of the AGM held in the fourth year after the year of his/her appointment or reappointment, unless specified otherwise in the nomination for appointment or re-appointment. The General Meeting may at any time suspend or dismiss a Director.

CTP’s majority shareholder, Mr. Remon Vos, was appointed CEO and Executive Director after the Company’s initial public offering (or IPO) in March 2021 and may be unlimitedly re-appointed as a Director. The reason for this is that Mr. Vos has been instrumental to the building of the Group since its foundation in 1998 and has been its Chief Executive Officer since 1999. He is personally involved in many aspects of the Group’s business, including formulation and implementation of its business strategy and relationships with key tenants.

In addition to Mr. Vos, Mr. Richard Wilkinson is Chief Financial Officer (“CFO”) and Executive Director. Mr. Wilkinson is appointed for a term ending at the end of the AGM to be held in 2025.

The Non-Executive Directors are Ms. Barbara Knoflach (Senior Independent Director and Chairwoman of the Board), Mr. Gerard van Kesteren (Vice-Chairman of the Board), Ms. Susanne Eickermann-Riepe and Mr. Pavel Trenka. The Non-Executive Directors were appointed on 16 March 2021 for a term ending at the end of the AGM to be held in 2024. All members are independent in conformity with the provisions of the Code.

The retirement schedule of the Non-Executive Directors provides for them to retire simultaneously. Upon appointing a new Non-Executive Director or re-appointing a Non-Executive Director currently in function, CTP's retirement schedule will be amended to reflect more differentiation in the periods within which the Non-Executive Directors will retire.

While there is no written succession plan in place, with the availability of dedicated senior management placed below the Executive Directors, the Group’s short- and medium-term succession is looked after.

Independence of Non-Executive Directors

Conflict of interest situations are provided for in the Board Rules. The provisions are such that the Non-Executive Directors decide whether a Director has a conflict of interest without this Director being present. Upon this being the case, a decision can only be made if the proposed transaction is customary in the market and in compliance with the laws of the relevant jurisdiction and requires the consent of at least the majority of the Non-Executive Directors if the conflict of interest is of material significance to CTP or to the relevant Director. No loans or guarantees are given to a Director unless in the normal course of business and on terms applicable to CTP’s personnel.

In the opinion of the Non-Executive Directors, in 2022 the independence requirements referred to in the Code were fulfilled. All four Non-Executive Directors own CTP shares.

General Meetings

The Articles outline the procedures for convening and holding the AGM and the decision-making process. The draft minutes of the AGM must be published on CTP’s website no later than three months following the AGM. Shareholders are given three months to respond to the draft minutes. The minutes of the AGM are subsequently adopted and signed by the chair of the AGM and the Company Secretary. Contacts with shareholders are conducted in line with the bilateral contacts policy, published on CTP’s website.

Annual General Meeting held in 2022

CTP’s 2022 AGM was held in Amsterdam on 26 April 2022. Meeting topics included, amongst others, the 2021 Annual Report, the authorisation to issue shares, amendments to the Articles, presentation of the remuneration report and the final 2021 dividend.

Extraordinary General Meeting

On 15 June 2022 an Extraordinary General Meeting was held online, requesting CTP’s shareholders to approve the merger and hive-down between CTP and DIR (previously named Deutsche Industrie REIT-AG), a public limited liability company under German law, with its registered seat in Rostock, Germany. The offer on all the shares in DIR was made on 7 December 2021. Of the total votes cast, almost all of CTP’s shareholders were in favour of the merger and hive-down (99.79%, representing 89.19% of the Company’s share capital).

The next AGM will be held on Tuesday 25 April 2023.

Dividend

The final dividend for the 2022 financial year will be paid following the AGM’s adoption of the 2022 annual accounts and approval of the payment of the dividend. An interim dividend of €0.22 per share was made available in shares or in cash and paid out on 5 September 2022, bringing the total dividend over the 2022 financial year to €0.45 per share.

APPOINTMENT AND COMPOSITION OF THE BOARD

GRI 2-15 GRI 2-17

The Board is authorised to determine the number of Executive Directors and Non-Executive Directors, who are appointed by the General Meeting on a binding nomination of the Non-Executive Directors on behalf of the Board. The General Meeting may overrule a binding nomination for the appointment of a Director cast, representing more than one-third of the issued capital. The majority of the Directors must be Non-Executive Directors and one-third of the Non-Executive Directors must be female.

The Board may grant titles to Directors as the Board deems appropriate, including the title of Chief Executive Officer, Chief Financial Officer and Senior Independent Director.

The Chief Executive Officer acts as the Board's spokesperson and is primarily responsible for the Group’s strategic, risk and control issues. He is also responsible for convening General Meetings and calling Board meetings.

The responsibilities of the Senior Independent Director include ensuring that the Board and its Committees are composed in a balanced way and function properly. The Senior Independent Director chairs General Meetings of Shareholders and Board meetings, and ensures that Board decisions are made in accordance with the Articles and the Board Rules and supervises the implementation of adopted resolutions by the Board. The Senior Independent Director also acts on behalf of the Board as the main contact for shareholders and for General Meetings.

Introduction programme for Non-Executive Directors

There were no Non-Executive Directors appointed after March 2021. Therefore, no introduction programme was organised in 2022. Onboarding was provided to senior management joining in 2022.

Permanent education and evaluation

Education sessions are offered to the Non-Executive Directors throughout the year. In June 2022, CTP’s Group AML compliance officer updated the Non-Executive Directors on compliance issues (core CTP values, anti-bribery, anti-corruption and ethical market conduct, information protection, fair competition, insider trading, anti-money laundering programme and whistleblowing). In August, CTP’s ESG officer updated the Non-Executive Directors on ESG developments within the Group. Throughout the year, various members of the Board attended several senior management offsite meetings in various CTP countries.

Director’s competency table

Name	Years in board	Year of birth	Gender	General business management	strategy	Finance (balance & reporting)	Financial markets/ disclosure, communication	Audit, risk, compliance, legal & governance	Real estate	M&A	IT/Digital & Innovation	Social employment	ESG
Remon Vos	2	1970	M	X	X	X	X	X	X		X	X	X
Richard Wilkinson	2	1964	M	X	X	X	X	X	X		X	X	X
Barbara Knoflach	1	1965	F	X	X	X	X	X	X	X	X	X	X
Susanne Eickermann-Riepe	1	1960	F	X	X	X	X	X	X	X	X	X	X
Gerard Van Kesteren	1	1949	M	X	X	X	X	X	X
Pavel Trenka	1	1973	M	X	X	X	X	X	X	X	X

At the 9 August meeting, the Audit Committee was presented with internal control reports and discussed and approved amendments to the Group’s related-party transactions policy. KPMG presented their 2022 audit plan, and the Audit Committee discussed the Company’s interim 2022 dividend. The Committee also discussed non-financial data, the progress to embed an ESG/non-financial reporting structure within the Group, and the re-appointment of KPMG as external auditor for 2023.# Governance Report

5.1.4 AUDIT COMMITTEE REPORT

At the 8 November meeting, the Audit Committee discussed the Company’s tax policy; received an update on the application of ICT systems across the Company, including risks related to cybersecurity; and evaluated and proposed changes to the Audit Committee charter forming part of the Board Rules. The Committee also received non-financial data and ESG updates. At the 16 December meeting, the Audit Committee evaluated the Group’s risk management policy and was presented with and discussed the findings of an assessment of the effectiveness of the design and operation of the internal risk management and control systems, covering strategic, operational, reporting and compliance risks, as well as an assessment of the effectiveness of the internal and external audit processes. The outcome of this evaluation was that no major failings in the internal risk management and control systems were observed during the reporting year. CTP continuously strengthens its internal risk management and control systems via various improvement initiatives; in 2022 no major improvements were identified. The Audit Committee took note of the roll-out of the new ERP management system (Dynamics 365) and the plan to assess the impact of the new ERP system on the Company’s control framework and implement improvements where possible. The Audit Committee also discussed the budget for 2023, the effectiveness of and compliance with the Code of Conduct, the internal 2023 audit plan as well as material considerations regarding financial reporting, e.g., hedge accounting and valuation issues. The status of the best practice provisions of the Code was discussed as well as proposed amendments to the Group Insider Trading Policy. The Audit Committee met with the internal audit function and the CFO separately nine times during the year. At these meetings, inter alia, the progress of the internal audit plan was discussed, internal audit reports were shared, and deficiency reporting was tabled. The Audit Committee evaluated the functioning of the internal auditor and of KPMG as external auditor and advised the Board of the outcome thereof at the Board meeting on 2 March 2023. The Audit Committee met with KPMG outside of the presence of the Executive Directors on 8 March 2022.

The duties of the Audit Committee include supervising and monitoring as well as advising the Board and each Director regarding the integrity and quality of the Company's financial report and the effectiveness of the Company’s internal risk management and control systems. The Audit Committee advises the Board on the exercise of certain of its duties. It also supervises the submission of financial information by the Company, compliance with the recommendations of internal and external auditors, the Company’s policy on tax planning, and the Company’s financing arrangements. It assists the Board with the Company’s information and communications technology and maintains regular contact with and supervises the external accountant, and it prepares the nomination of an external accountant for appointment by the AGM. The Audit Committee also issues preliminary advice to the Board regarding the approval of the annual accounts, the annual budget and major capital expenditures. The charter of the Audit Committee is published on CTP’s website. The Audit Committee members are Mr. Van Kesteren (Chair) and Ms. Eickermann-Riepe. The information referred to in the Code is included in Section 5.1.12.

Meetings in 2022

The Audit Committee met five times in 2022; both members attended all meetings. Standard on the agenda of the Committee are the financial accounts of the period, the outlook and liquidity forecast (including funding and cash-flow forecast) and a review of the Company’s key performance indicators. The internal auditor updates the Committee on his own observations and on the status of control issues based on deficiencies identified by KPMG in the relevant yearly audit, presents the internal plan and gives regular updates on the status thereof. Heads of the Compliance department and Risk Management department provide updates (including a whistleblower analysis). In the event there are services performed by KPMG that are outside of the scope of the statutory audit, the Audit Committee approves these services on a separate note. The external auditor attended (part of) the meetings, amongst others to present its 2022 audit plan and findings. In addition to the above recurring items, other items discussed during the meetings are mentioned below. An additional meeting was held in January to finalise the Audit Committee report as part of the 2021 Annual Report and to discuss the draft 2021 Annual Report comments. At the 8 March meeting the Audit Committee extensively discussed the periodic and 2021 financial statements (including forecasts and outlook) as well as the draft letter of representation and the 2021 management letter and audit report by KPMG, in the presence of the Company’s CFO and internal auditor. The planning and control cycle was also discussed. At the 17 May meeting, the Audit Committee discussed Code of Conduct updates and the risk management control framework (including an evaluation of the risk management policy); the application of ICT systems, including risks related to cybersecurity; and the tender process for a new external auditor. The Audit Committee also evaluated the 2021 Annual Report.

At the 8 November meeting, the Audit Committee discussed the Company’s tax policy; received an update on the application of ICT systems across the Company, including risks related to cybersecurity; and evaluated and proposed changes to the Audit Committee charter forming part of the Board Rules. The Committee also received non-financial data and ESG updates.

At the 16 December meeting, the Audit Committee evaluated the Group’s risk management policy and was presented with and discussed the findings of an assessment of the effectiveness of the design and operation of the internal risk management and control systems, covering strategic, operational, reporting and compliance risks, as well as an assessment of the effectiveness of the internal and external audit processes. The outcome of this evaluation was that no major failings in the internal risk management and control systems were observed during the reporting year. CTP continuously strengthens its internal risk management and control systems via various improvement initiatives; in 2022 no major improvements were identified. The Audit Committee took note of the roll-out of the new ERP management system (Dynamics 365) and the plan to assess the impact of the new ERP system on the Company’s control framework and implement improvements where possible. The Audit Committee also discussed the budget for 2023, the effectiveness of and compliance with the Code of Conduct, the internal 2023 audit plan as well as material considerations regarding financial reporting, e.g., hedge accounting and valuation issues. The status of the best practice provisions of the Code was discussed as well as proposed amendments to the Group Insider Trading Policy. The Audit Committee met with the internal audit function and the CFO separately nine times during the year. At these meetings, inter alia, the progress of the internal audit plan was discussed, internal audit reports were shared, and deficiency reporting was tabled. The Audit Committee evaluated the functioning of the internal auditor and of KPMG as external auditor and advised the Board of the outcome thereof at the Board meeting on 2 March 2023. The Audit Committee met with KPMG outside of the presence of the Executive Directors on 8 March 2022.

5.1.5 NOMINATION AND REMUNERATION COMMITTEE REPORT

The duties of the Nomination and Remuneration Committee include proposing appointments and reappointments of Directors, preparing selection criteria and appointment procedures for Directors, and proposing and updating the composition profile for the Non-Executive Directors. It also periodically assesses the scope and composition of the Board and the functioning of the individual Directors. It supervises the Board’s policy on selection criteria and appointment procedures for Directors and senior management. Furthermore, the duties of the Nomination and Remuneration Committee include the preparation of proposals of the Board on the remuneration policy for the Executive Directors to be adopted by the AGM and on the remuneration of the individual Executive Directors to be determined by the Non-Executive Directors. The Nomination and Remuneration Committee prepares a remuneration report on the execution of the remuneration policy for the Board during the respective year. Depending on the nature of the amendments, the AGM has an annual advisory vote on the remuneration report. The charter for the Nomination and Remuneration Committee is published on CTP’s website. The Nomination and Remuneration Committee members are Mr. Trenka (Chair) and Ms. Knoflach.

At the 16 December meeting, the Committee discussed a (preliminary) proposal to the Non-Executive Directors for the 2023 targets of the CFO and the individual remuneration of the CEO and the CFO and the possible outcome of the 2022 targets based on preliminary numbers and data. Succession planning was tabled as well as self-evaluation in 2023. Training and education for 2023 were discussed. The Committee advised the Board to update the list of reference companies for the remuneration peer group to no longer include Dutch companies that delisted in 2022. Also, it advised to align the remuneration peer group for the Executive Directors and Non-Executive Directors (including AEX and AMX companies for both Executive Directors and Non-Executive Directors).

5.1.6 CTP N.V. 2022 REMUNERATION REPORT

GRI 2-19 GRI 2-20

In compliance with Article 2:135b of the Dutch Civil Code, the European shareholder rights directive (SRD II) and the Code, this report is split into two separate sections, containing:

• the Remuneration Policy section describing the overall approach to remuneration, and in particular, setting out the fixed and variable pay components of the Executive Directors and the fixed pay components of the Non-Executive Directors, including the background reflecting on the internal and external context surrounding remuneration outcomes for the reporting year; and
• a section on the implementation of the Remuneration Policy during the reporting year.

A copy of the report shall be available on CTP’s website for 10 years.

Overview of CTP's Remuneration Policy

The Remuneration Policy for the Executive Directors and the Non-Executive Directors of CTP N.V. was adopted by the AGM on 25 March 2021 (the ‘Remuneration Policy’). Remuneration reports are drafted annually from 29 March 2021 when CTP became a listed company. Consequently, this report provides for comparable figures available as from 29 March 2021. The design and implementation of CTP’s Remuneration Policy have been drafted to follow all applicable laws and corporate governance requirements. Decisions related to remuneration are made in the context of CTP’s values, purpose and strategy. Remuneration Policy changes are subject to shareholder approval. Furthermore, for voting rights exercised on remuneration related items, CTP undertakes to actively engage with dissenting shareholders in order to address all legitimate and reasonable objections and/or concerns. CTP invites its shareholders to engage with us regarding the Remuneration Policy and reporting. Based on the feedback received relating to the annual general meeting on 26 April 2022, the transparency of this remuneration report was further increased.

Philosophy and principles

CTP’s remuneration philosophy aligns with the way the Company operates, and that is helping CTP to grow the business and to grow the businesses of its clients. CTP is outcome focused, performance driven and rewards fairly and competitively with a focus on long-term value creation while supporting the ownership mentality and spirit of# Corporate Governance

Meetings in 2022

The Nomination and Remuneration Committee met seven times during 2022. One of the two members did not attend one meeting; all other meetings were attended by both members.

At its first meetings in January and February, the Committee discussed the achievement of the 2021 targets by the CFO. At the meeting on 8 March, the subjects of discussion were the level of the 2022 base salaries of the Executive Directors; defining and agreeing on the financial and non-financial 2022 targets; evaluation of the remuneration policy; and self-evaluation of the functioning of Non-Executive Directors, Executive Directors and the Board as a whole.

In addition to the above recurring items, other items discussed during the meetings are mentioned below.

At the 17 May meeting, the Nomination and Remuneration Committee discussed the voting behaviour of the shareholders during the AGM. The Board had a workshop relating to the self-evaluation process and discussed the profile of the Board and succession planning. Discussions on selection criteria for Directors, succession planning and an assessment of the size, composition and functioning of the Directors took place in the second half of 2022. The evaluation of the functioning of the Directors in April and May kick-started discussions on succession planning of the Directors as well as on selection criteria for becoming a Director. Entrepreneurial qualities as well as a background with a more regional spread were defined as being a good addition to the current composition.

On 9 August, the Committee discussed the size and composition of the Board; received an update on the Group’s internal organisation and governance; and discussed a mid-year update on the fulfilment of the 2022 Executive Directors targets.

On 8 November, the Committee evaluated the Company’s diversity policy and discussed succession planning and remuneration. The Committee evaluated its charter and proposed amendments, discussed benchmarking and marketing trends relating to remuneration, and evaluated the Group's remuneration policy.

When deemed necessary, the committee consulted outside experts for advice.

Engaging with stakeholders

CTP engages openly and often with its shareholders and institutional investors on their input regarding CTP’s Remuneration Policy and the implementation thereof. Taking this input into account and alongside the input from CTP’s other stakeholders allows the Company to make informed decisions going forward and to remain impactful on all fronts.

Remuneration of the Executive Directors

Total direct remuneration

The total direct remuneration of the Executive Directors consists of four components:

• fixed annual base salary;
• benefits;
• an annual cash incentive; and
• a long-term share-based incentives.

The total direct remuneration mix at target and maximum performance for the CEO and CFO is as follows:

CEO: Targets and Maximum Performance (in %)

Fig. 62

	Fixed Remuneration	100%

Entrepreneurship

CTP places an emphasis on variable remuneration to reflect its highly performance-orientated and entrepreneurial culture, its growth ambitions, and to ensure alignment with the expectations of shareholders.

The six principles that guide CTP’s approach to remuneration are:

1. remuneration should focus on long-term value creation for and be clearly linked to the delivery of superior and sustainable corporate results in line with CTP’s strategy;
2. remuneration outcomes should mirror the shareholder and wider stakeholder experience over the long term and be aligned with CTP’s long-term strategy and established risk appetite;
3. remuneration should be fair and competitive against companies of a similar size, scope and complexity with a strong emphasis on variable pay to reflect CTP’s high-performance culture but at the same time not paying more than necessary;
4. remuneration should be simple and transparent in terms of design and communication to internal and external stakeholders;
5. remuneration should adhere to principles of good corporate governance practice in line with the Dutch Corporate Governance Code and Dutch law;
6. remuneration frameworks should be sufficiently flexible to take into account changing business priorities over time.

In line with CTP’s remuneration philosophy and principles, its Remuneration Policy is to target base salary levels around the lower quartile of the peer group and total direct compensation levels (the sum of base salary, annual bonus and long-term incentive) around the upper quartile of Dutch listed companies. Again, this positioning policy reflects CTP’s performance-based culture with highly competitive levels of reward only being earned if outstanding performance is delivered.

Benchmarking and peer group

CTP’s remuneration should be fair and competitive against companies of a similar size, scope, and complexity. The reference points used to define market peers in terms of remuneration are Dutch listed companies that are of a similar size and complexity to CTP and where appropriate, sector comparisons, i.e., European real estate and logistics businesses. To ensure a balanced approach to benchmarking, remuneration levels of Dutch listed companies within a reasonable range of CTP’s market capitalization will be considered. This may comprise both Euronext AEX and AMX companies. CTP continuously reviews the market reference points used for benchmarking purposes as the Company grows.

Looking back

The Russian invasion of Ukraine in February 2022 created a significant disruption globally and in the industry. This also resulted in construction processes and prices being impacted. While this disruption provided challenges, CTP was able to respond quickly to these external circumstances and continued to perform well, as set out in the “2022 Year in Review” section of this report.

Looking ahead

Creating sustainable long-term value for CTP’s shareholders and other key stakeholders are the core of CTP’s business. Hence, the core performance measure which was assessed under the long-term incentive plan is Total Shareholder Return (“TSR”). TSR reflects the return received by a shareholder and captures both the change in share price and the value of dividend income, assuming dividends are reinvested. TSR is an appropriate measure, as it objectively measures CTP’s financial performance and assesses long-term value creation for shareholders.

Next to TSR the Company also measures achievements against sustainability KPI’s. CTP feels this is appropriate as it takes a hands-on approach to protecting the environment. With smart buildings, circular parks and solar-ready building plans, the aim is not only carbon-neutrality but to positively impact the communities in which CTP operates. CTP takes the environmental impact of its activities seriously. Equality, consistency, and transparency are embedded in CTP’s remuneration practices, as CTP believes that this is an imperative foundation towards building a thriving and inclusive workplace.

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Governance Report

Note that CTP’s CEO, Mr. Vos, has a substantial shareholding in the Company, meaning there is already a clear and direct link between his reward and the Company’s performance. Therefore, there are elements of the Remuneration Policy in which Mr. Vos currently does not participate, namely variable remuneration. While not receiving variable remuneration, the short- and long-term target setting of the Company including CTP’s strategy is applicable to the Executive Board, and this target setting is therefore also applicable to CTP’s CEO. Scenario analyses under different performance outcomes are carried out annually.

Fixed annual base salary

The fixed annual base salary is based on seniority and experience, reflecting the nature of the role and responsibilities, while considering relevant benchmarks. The base salary of the Executive Directors is currently set around the lower quartile of the Dutch listed peer group. Salaries are reviewed and approved by the Non-Executive Directors on an annual basis, or when there is a change in role and responsibility.

Benefits

Executive Directors do not participate in a pension plan, however, they are entitled to receive market standard benefits that could include: health insurance, life insurance, housing/car allowance, use of a company car, travel allowance, and workers’ compensation for illness. Additional benefits may be considered based as required, subject to business needs.

Annual cash incentive

The purpose of the annual cash incentive is to drive the achievement of annual performance targets supporting CTP’s shorter-term strategic goals. The Executive Directors are eligible for an “at target” annual bonus of 150% of the base salary and the maximum bonus for outstanding performance is capped at two times the target amount equal to 300% of base salary.

Performance measures are based on key performance indicators that relate to CTP’s strategy and business priorities for the year ahead:

• Financial measures could include cashflow, EBITDA, profit, gross lettable area, gross rental income, occupancy rate, rental collection, weighted average unexpired lease term (WAULT) and other similar financial measures;
• Non-financial measures could relate to environmental, social and governance targets, sustainability targets, corporate social responsibility targets and specific strategic milestones as considered appropriate by the Non-Executive Directors.

For the annual cash incentive, 70% of the performance measures are financial in nature and 30% are non-financial. The chosen performance measures have challenging yet realistic targets to encourage achievement in a sustainable manner.

At the Non-Executive Directors’ discretion, a portion of the annual cash incentive could be deferred into shares using the deferred incentive plan.

321# Governance Report

Deferred incentive plan

The deferred incentive plan (“DIP”) is a discretionary plan that may operate with one or more incentive plans operated by CTP and provides a mechanism for the deferral of part of a participant’s incentive into a deferred award of cash and/or a deferred award of shares (“DIP award”). The Non-Executive Directors, in circumstances they consider appropriate, may determine that Executive Directors are eligible for selection to participate in the DIP. The Non-Executive Directors reserve the right to defer a part of the annual cash bonus into shares in circumstances they consider appropriate. Deferral of shares would be under the terms of the DIP and therefore Executive Directors may receive DIP awards which are granted over shares. DIP awards that are granted over shares may be granted as nil cost awards and may take the form of options to acquire shares, conditional rights to acquire shares or an immediate award of shares subject to restrictions.

In line with the Code and unless the Non-Executive Directors determine otherwise, DIP awards over shares will be subject to a five-year holding period following the award date. During this period, sale of the shares is restricted, although shares may be sold to cover taxes due because of vesting. DIP awards are forfeited by Executive Directors who leave CTP unless and to the extent the Non-Executive Directors otherwise determine. DIP awards may vest early on certain corporate events and may be varied on variations of the Company’s share capital and certain corporate events. DIP awards may also entitle participants to dividend equivalents paid in cash or shares. The total number of shares that may be newly issued or transferred from treasury in satisfaction of awards under the LTIP and the DIP may in aggregate not exceed 5% of the Company’s issued and outstanding share capital from time to time. To mitigate dilution, the Company may repurchase shares to cover DIP Awards granted in the form of shares.

Minimum shareholding requirements

Executive Directors are encouraged to build or maintain (as appropriate) a minimum shareholding equivalent to 250% of their base salary over five years. Shares included in this calculation are any shares beneficially owned and any vested shares under the LTIP. Given Mr. Vos’ substantial shareholding in the Company, he already meets this requirement. The Non-Executive Directors may use their discretionary judgement to allow for a temporary deviation of this guideline in circumstances they consider to be appropriate, for example, in the case of new joiners. For the avoidance of doubt, in case of any shortfall under the share ownership requirement, Executive Directors will not be required to purchase shares from their own funds to satisfy the requirement.

Risk mitigation

Based on predefined trigger events, malus and claw back provisions may be applied to paid out annual cash incentive as well as the long-term share-based incentive.

Malus

The Non-Executive Directors, acting fairly and responsibly, may determine that the value of variable remuneration as granted would produce an unfair result due to extraordinary circumstances during the period in which the predetermined performance criteria have been or should have been applied. In such circumstances and prior to vesting, variable remuneration can be cancelled or reduced.

Long-term incentives plan

The purpose of the long-term incentive plan (“LTIP”) is to incentivise the achievement of long-term sustainable shareholder returns and the delivery of CTP’s long-term strategy. Under the LTIP, the Executive Directors may receive an annual award for shares, which shall normally vest after a three-year performance period, subject to the achievement of certain pre-determined corporate performance conditions including financial and shareholder return-based measures set by the Non-Executive Directors and remaining in service. LTIP awards may be granted as nil cost awards and may take the form of options to acquire shares, conditional rights to acquire shares or an immediate award of shares subject to restrictions. No payment is required for the grant of an LTIP award (unless the Non-Executive Directors determine otherwise). LTIP awards in the form of options that have vested will normally remain exercisable for a period determined at grant, which shall not exceed ten years from grant.

The LTIP award opportunity is set at 100% of the base salary for delivering “at target” performance. The maximum number of shares that can be delivered under the LTIP award for delivering outstanding performance is 1.5 times the number of shares granted (i.e., 150% of the LTIP award shares granted). Therefore, the maximum LTIP award opportunity is equal to 150% of base salary at grant and no vesting will occur for below-threshold performance. The LTIP award level reflects CTP’s high-performance culture and is in line with the principle that a greater portion of total remuneration should be based on variable remuneration.

In line with the Code and unless the Non-Executive Directors determine otherwise, LTIP awards granted to Executive Directors will be subject to a holding period of at least two years following vesting. During this period, sale of the shares is restricted, although shares may be sold to cover taxes due because of vesting. Each financial year the Non-Executive Directors will determine the most appropriate performance conditions for the LTIP award. Performance measures will be selected considering CTP’s long-term business strategy and will relate to pre-determined corporate performance conditions including financial and shareholder return-based measures. The performance measures and targets for the LTIP award were approved by the Non-Executive Directors. The core performance measure that was assessed under the LTIP is Total Shareholder Return (“TSR”). TSR reflects the return received by a shareholder and captures both the change in share price and the value of dividend income, assuming dividends are reinvested. TSR is an appropriate measure, as it objectively measures CTP’s financial performance and assesses long-term value creation for shareholders. LTIP awards will be subject to relative TSR and absolute TSR measures (both equally weighted at 50% each):

• A relative measure allows an assessment of the outperformance delivered by CTP compared to other companies. For this purpose, relative performance would be measured against an appropriate European real estate index.
• Absolute TSR will ensure that Executive Directors remain focused on CTP’s own performance by requiring growth in TSR over the measurement period, irrespective of market performance.

During the period of the Remuneration Policy and in the context of CTP’s long-term business strategy, the Non-Executive Directors will review performance conditions for each grant under the LTIP, in terms of the measures themselves, the ranges of targets and weightings applied to each element of the LTIP.

Claw back

Upon discovery that variable remuneration has been awarded based on incorrect financial or other data (“trigger event”), the Non-Executive Directors, acting fairly and responsibly, may recover such variable remuneration in part or in full. The claw back period is three years following the discovery of such a trigger event and applies during the holding period.

Executive service agreements

Executive service agreements are either for a permanent and indefinite period or a fixed-term period. Either way, a three-month notice period applies to executive service agreements.

Severance provisions

In the event of termination of employment, compensation is provided for the loss of income of up to six months of gross base salary in addition to a three-months’ notice period.

Loans

At the end of 2022, no loans, advances, or guarantees were outstanding to the Executive Directors.

REMUNERATION OF THE NON-EXECUTIVE DIRECTORS

Fee structure of the Non-Executive Directors

Non-Executive Directors receive an annual fixed base fee independent of the share price and performance of the Company and delivered in cash. The base fee is based on the ongoing nature of the responsibilities of the Non-Executive Directors as an independent body for effective control of the Company. In addition to a base fee, the Non-Executive Directors also receive committee fees and reimbursement of reasonable expenses contingent upon their activities and responsibilities (see Table 1). All remuneration is denominated and delivered in euros. Currency conversion risks are not covered by the Company. Non-Executive Directors do not qualify or receive any equity in terms of the Company’s variable pay incentive schemes, and they do not qualify to participate in any benefit programme, e.g., pension benefits or arrangements, loan programmes, etc.

Reimbursements

Non-Executive Directors are eligible to receive reimbursement of reasonable expenses incurred undertaking their duties. Non-Executive Directors are not entitled to any other compensation in relation to their duties. In particular, Non-Executive Directors do not accrue any pension benefits nor receive any pension compensation. The Company does not operate a stock option scheme.

Tenure

All Non-Executive Directors are subject to retirement and re-election by shareholders every three years, and the re-appointment of Non-Executive Directors is not automatic. During the tenure, annual self-evaluations are done by the Non-Executive Directors and their sub-committees.Loans

At the end of 2022, no loans, advances, or guarantees were outstanding to the Non-Executive Directors.

Table 1 Remuneration of Non-Executive Directors

Name of Non-Executive Director	Annual fixed fees received (in euro) 2022	Annual fixed fees received (in euro) 2021¹	Committee role	Total 2022	Total 2021¹
Barbara Knolach, Senior Independent Director	150,000	114,247	Member of the nomination and remuneration committee	160,000	121,863
Gerard van Kesteren	75,000	57,123	Chairperson of the audit committee	95,000	72,356
Pavel Trenka	75,000	57,123	Chairperson of the nomination and remuneration committee	90,000	68,548
Susanne Eickermann-Riepe	75,000	57,123	Member of the audit committee	90,000	68,548
Total	375,000	285,616		435,000	331,315

¹ Recognised by the Company for remuneration to Non-Executive Directors as from 29 March 2021.

Corporate Governance 324

2022 REMUNERATION OUTCOMES

Remuneration at a glance

The remuneration of the Executive Directors is determined by the Board, following a recommendation from the Nomination and Remuneration Committee with due observance of the Remuneration Policy. It comprises the following elements:

• fixed annual base salary (see Table 2);
• benefits;
• an annual cash incentive; and
• long-term share-based incentives.

The implementation of the Remuneration Policy provides for a structure that aligns the compensation of the Executive Directors with the successful delivery of CTP’s long-term strategy and shareholder value growth.

When designing the Remuneration Policy, the Board considered amongst others the pay ratio between the Executive Directors pay and average employee pay. When implementing the Remuneration Policy, and in particular in assessing the outcomes of variable remuneration components, scenario analyses have been taken into consideration by the Non-Executive Directors.

Given the Company’s performance, external circumstances and the developments surrounding the invasion of Ukraine, the Non-Executive Directors considered it was appropriate that the underlying performance targets set for the 2022 short-term incentive awarded to Mr. Wilkinson had to be normalised (see also below under Annual Cash Incentive). When approving these payments, the Non-Executive Directors considered whether they represented a fair reflection of the underlying performance of the business and were satisfied that they did.

As determined for the prior performance year 2021, the Non-Executive Directors took into consideration that Mr. Wilkinson agreed—in advance of the calculation of the performance conditions—that 50% of his 2021 annual cash incentive is contingent on and conditionally deferred until CTP Group achieves an additional GLA target.

Base salary

In 2022, the annual base salary of Mr. Vos and Mr. Wilkinson was as shown in Table 2.

Table 2 Base salary

Board Role	Annual Fixed Fees
CEO	500,000
CFO	380,000

Benefits

Executive Directors receive market standard benefits that can include: health insurance, life insurance, a housing/car allowance, use of a company car, travel allowance, laptop, iPad and mobile phone devices, and workers’ compensation for illness. Additional benefits may be considered as required, subject to business needs.

Mr. Wilkinson receives a housing allowance of (the local currency equivalent of) €1,500 per month. The details of the Executive Directors’ emoluments accrued or paid for in the 2022 reporting year are set out below. For the avoidance of doubt, no sign-on bonuses or allowances for pension were paid to the Executive Directors.

Mr. Vos holds a substantial shareholding in the Company, meaning there is already a clear and direct link between his reward and the Company’s performance. Therefore, Mr. Vos currently does not participate in the variable remuneration components described below. While not receiving variable remuneration, please note that the short- and long-term target setting of the Company based on CTP's strategy is applicable to the Executive Directors and this includes and is therefore also applicable to Mr. Vos.

Annual cash incentive

In 2022, the annual cash incentive payout for the Executive Directors was dependent on the performance against the following predetermined performance measures:

• Growth in completed new GLA
• EPRA earnings
• Loan-to-value
• ESG environmental index

The Non-Executive Directors have reviewed the actual performance of the Executive Directors against the set of performance targets to determine the extent to which the targets have been achieved. The annual cash incentive payout is 150% of the base salary based on an “at target” achievement of the performance conditions and the maximum bonus for outstanding performance is capped at two times the target amount equal to 300% of the base salary. The Loan-to-value and the ESG environmental index performance measures have downside impact on the cash bonus calculation in the form of a percentage reduction being 15% for each KPI.

The actual STI performance was assessed by the Nomination and Remuneration Committee in good faith in a reasonable manner. In this assessment external circumstances and the impact to the Company due to the Russian invasion of Ukraine have been specifically considered to determine the overall performance realised and whether the targets have been achieved. Considering the external circumstances, the impact to CTP due to the significant disruption in the construction processes and ability of the Company to react to and adopt these circumstances within the business, it was decided to apply a test of reasonableness in determining the 2022 STI performance achieved. In the application of this test of reasonableness, the initial targets, which did not include the impact of the Ukraine invasion, have been normalised.

Based on this assessment made by the Nomination and Remuneration Committee including the consideration and assessment of the EPRA earnings per share (“EPRA EPS") development, it was unanimously decided by the Non-Executive Directors that Mr. Wilkinson will be entitled to receive over the financial year 2022 a STI payout in cash of one-third (33%) of the maximum bonus opportunity set and representing an amount of EUR 380,000 based on the achievements realised during 2022. Mr. Vos was during 2022 not entitled to receive a STI bonus.

Goverance Report 325

Corporate Governance

The total annual cash incentive determined based on the actual performance assessment may be adjusted downwards based on the actual performance on the loan-to-value and the ESG environmental index performance measures. The Non-Executive Directors have reviewed and considered the actual performance on these targets and determined that a downward adjustment will not be imposed on the calculated annual incentive for 2022 (see Table 3).

Long-term incentive plan

The conditional share award made under the LTIP to Mr. Wilkinson on 15 January 2023 with an award date of 29 April 2022 may vest on 29 April 2025 and is subject to continuous services and meeting the predetermined performance targets. Outstanding conditional share awards will automatically lapse upon termination of services before the end of the vesting period. The shares must be held for a minimum of two years after vesting.

Mr. Vos was during 2022 not entitled to receive a LTIP award. The performance target for the LTIP award is divided into two elements:

• 50% of the award may vest depending on the Company’s absolute Total Shareholder Return (TSR) performance; and
• 50% of the award may vest depending on the Company’s relative TSR performance versus the FTSE EPRA/NAREIT Developed Europe Index (see Table 4).

Table 3 Performance measure	2021 Weight	Vesting levels (% of base salary)	Actual performance	Vested (% of base salary)	Payout amounts
Remon Vos, CEO
EPRA Earnings	35%	21% - 105%	Above target	105%	- 399,000
Growth in completed new GLA	65%	39% - 195%	Between target and maximum	130%	- 495,300
Total	100%	60% - 300%		235%	- 894,300
Deferred¹					- 447,150
Bonus Payable					- 447,150

¹ 50% of the annual cash incentive for Mr. Wilkinson is deferred and subject to CTP Group achieving 10 million sqm growth in completed new GLA (owned properties) no later than 31 December 2023.

Performance measure	2022 Weight	Vesting levels (% of base salary)	Actual performance	Vested (% of base salary)	Payout amounts
Remon Vos, CEO
EPRA Earnings	35%	21% - 105%	Below minimum target	0%	- 0
Growth in completed new GLA	65%	39% - 195%	Below minimum target	0%	- 0
Total	100%	60% - 300%		0%	- 0
Deferred					- 0
Bonus Payable²					- 380,000

² As discussed above, it has been unanimously decided by the Non-Executive Directors that Mr. Wilkinson will be entitled to receive a STI payout of 33% of the maximum bonus opportunity for 2022 based on the achievements realised during 2022.

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Adjustments to remuneration

In 2022, no application of the use to reclaim variable remuneration by means of either a claw back or malus within the meaning of article 2:135 (8) of the Dutch Civil Code was applied on any kind of variable payments for any Executive Director.

Minimum shareholding requirements

The minimum shareholding requirements amounts to 250% of the base salary, built up over five years. Given Mr. Vos’ substantial shareholding in the Company, he already exceeds the minimum shareholding requirement. Mr. Wilkinson did not meet the minimum shareholding requirement in 2022.# Goverance Report

Table 5 Remuneration and company performance

Name of Executive Director, position	2022	% change	2021
Remon Vos, CEO	500,000	0%	500,000
Richard Wilkinson, CFO	1,085,050	2%	1,061,200
Annual remuneration of all full-time employees (excluding CEO and CFO)	41,919,532	38%	30,418,320
Average FTE’s of employees (excluding CEO and CFO)	632	37%	461
Average total annual remuneration	66,328	0.5%	65,983
Pay ratio CEO	7.5	-0.5%	7.6
Pay ratio CFO	16.4	2%	16.1
EPRA earnings per share in EUR	0.61	26%	0.49
Gross lettable area in million SQM	10.5	22%	7.6

1 The 2% increase in pay ratio for the CFO is calculated based on the remuneration as recognized by CTP under IFRS, which represents higher remuneration elements compared to the actual remuneration payable for the year 2022. This is caused by the fact that the amounts recognised contain expenses for conditional 2021 and 2022 LTIP awards, which are still subject to a three-year performance period.

Table 4 Share awards 2022 based on at target award levels (100%)

Name of Director, position	The main conditions of share award plans	Opening balance	During the year	Closing balance	Performance period	Award date	Vesting date	End of holding period
		Shares outstanding 1 January 2022	Number of shares awarded	Shares vested	Shares subject to a performance condition	Shares awarded and unvested at year end
Remon Vos, CEO	N/A	---
Richard Wilkinson, CFO	2021-2023				30 Apr 2021	30 Apr 2024	30 Apr 2026
		27,142	-	-	27,142	27,142
Richard Wilkinson, CFO	2022-2024				29 Apr 2022	29 Apr 2025	29 Apr 2027
		27,130	-	-	27,130	27,130
		54,272	54,272	54,272

1 The Company granted the 2022 Award to the CFO on 15 January 2023 with an Award Date of 29 April 2022.

Pay ratio GRI 405-2

Pay differentials and the Executive Directors’ position within the Company have also been considered. In this respect, the internal pay ratio was also considered and discussed. Since the CEO only receives a fixed annual base salary, the pay ratio includes the CEO and the CFO (including expenses recognised by the Company in 2022 related to the annual bonus plan and the LTI plan). The average total annual remuneration for the reference group does not include the total annual remuneration of either the CEO or the CFO. Based on the above, in 2022 the internal pay ratio was 7.5 (7.6 for 2021) for the CEO and 16.4 (16.1 for 2021) for the CFO as articulated in Table 5. The increase of the internal pay ratio for the CFO compared to 2021 is mainly explained by higher share-based payment expenses recognised in 2022 for the conditional share awards made under the LTIP.

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Non-Executive Directors’ Remuneration

In 2022, the Non-Executive Director’s remuneration for participating in the Board and committees is presented in Table 6.

Compliance

CTP did not deviate from the Remuneration Policy for either the Executive or Non-Executive Directors. The Company has not granted any loans, advance payments or guarantees to Executive Directors or Non-Executive Directors.

Corporate Governance

Table 6 Remuneration of Non-Executive Directors

Name of Non-Executive Director	Annual fixed fees received (in euro) 2022	Annual fixed fees received (in euro) 2021¹	Committee role	Total 2022	Total 2021¹
Barbara Knoflach, Senior Independent Director	150,000	114,247	Member of the nomination and remuneration committee	160,000	121,863
Gerard van Kesteren	75,000	57,123	Chairperson of the audit committee	95,000	72,356
Pavel Trenka	75,000	57,123	Chairperson of the nomination and remuneration committee	90,000	68,548
Susanne Eickermann-Riepe	75,000	57,123	Member of the audit committee	90,000	68,548
Total	375,000	285,616	60,000	435,000	331,315

1 Recognised by the Company for remuneration to Non-Executive Directors as from 29 March 2021.

Table 7 Remuneration Executive Directors

Name of Executive Director, position	Fixed remuneration	Variable remuneration STI	Variable remuneration LTIP	Extraordinary items	Total remuneration	Proportion of fixed and variable remuneration Fixed	Proportion of fixed and variable remuneration Variable
Remon Vos, CEO	500,000	15,111	-	-	515,111	100%	0%
Richard Wilkinson, CFO	380,000	26,703	380,000	-	786,703	52%	48%

Table 8 Remuneration of Executive Directors – IFRS

Name of Executive Director, position	Base salary	Social security contributions	STI	LTIP	Other benefits	Total
Remon Vos, CEO	500,000	83,930	-	-	15,111	599,041
Richard Wilkinson, CFO	380,000	75,674	529,050	176,000	26,703	1,187,427
Total 2022¹	880,000	159,604	529,050	176,000	41,814	1,786,468
Remon Vos, CEO	380,822	51,556	-	-	10,971	443,349
Richard Wilkinson, CFO	289,425	30,884	596,200	85,000	19,822	1,021,331
Total 2021	670,247	82,440	596,200	85,000	30,793	1,464,680

1 Recognised by the Company under IFRS for remuneration to Executive Directors as of 29 March 2021. The 2022 STI amount recognised for CFO Richard Wilkinson (EUR 529,050) includes the deferred part of the STI for the financial year 2021 (see also under Remuneration at a Glance).

Total remuneration

The actual cash remuneration paid and the value of the vested equity remuneration of the Executive Directors by the Company for the financial year ending 31 December 2022, is presented in Table 7. Table 8 presents the Remuneration of the Executive Directors as recognised under IFRS by the Company for the financial year ending on 31 December 2022.

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5.1.7 SUSTAINABILITY COMMITTEE REPORT

The duties of the Sustainability Committee include amongst others advising the Board on a sustainable long-term vision, strategy and targets, monitoring of the sustainability initiatives and targets, overseeing of the overall climate risks and their consideration in the internal control system and all matters of corporate responsibility in general. The members are Ms. Eickermann-Riepe (Chair) and Ms. Knoflach (member).

Meetings in 2022

The Sustainability Committee was established on 8 November 2002 and met once in 2022. Discussed were household matters, agenda setting for 2023 and key items to focus on for the Committee. The Sustainability Committee members will receive a remuneration as of the date of the AGM on 25 April 2023, equal to the remuneration structure of the Nomination and Remuneration Committee.

5.1.8 BOARD MEETINGS GRI 2-18

The Board meets at least once every quarter, principally at CTP’s headquarters in Amsterdam. The Board met five times in 2022, and all Board members attended all Board meetings. Recurring topics of discussion were, amongst others, acquisition projects and the development pipeline, leasing activities and financial performance. Management reporting and financial reporting versus the budget were discussed, cash-flow forecasts and investor relations updates were provided, and risk management and compliance reports were discussed. When deemed necessary, the Board consulted outside experts for advice and training purposes.

At its 8 March meeting, the Board discussed the logistics market and business developments; the 2021 CEO report; the 2021 audit report and management letter and approved the internal audit plan; the 2021 annual accounts; the FY–2021 dividend distribution; an amendment to the Company’s Articles of Association; the AGM and EGM agendas; 2022 targets; and the base salary of the Executive Directors. The process of self-evaluation of its functioning as a Board, of the functioning of the Non-Executive Directors and of the Executive Directors was discussed and it was decided to engage an external expert. The Group's strategy was revised with the aim that it adapts and works well in the changing market environment.

At the 17 May meeting, an update was provided on the strategy. The merger between CTP and DIG and the first quarter results were approved and an ESG update was given. The Board evaluated its own functioning, that of its Committees and of its individual Non-Executive members in April and May. The evaluation was carried out with the assistance of an external expert, by first holding one-on-one interviews with the Executive Directors, the Non-Executive Directors and with two other (non-Board) employees. Discussion statements were gathered from the respective interviews and discussed during a plenary workshop, consisting of two parts—the first attended by all the members of the Board of Directors, and the second only by the Non-Executive Directors. The areas for further improvement relate to management development, succession planning and retirement of the Non-Executive Directors. Action was taken on all these points for improvement.

At the 9 August meeting, a non-financial data update was given. The first half-year financials, the interim dividend and the amended related-party transaction policy were approved. A half-year update of the CFO’s targets, evaluation of the profile of the Non-Executive Board members and the size and composition of the Board were discussed. An internal organisation and governance status update was given.

At its 8 November meeting, in view of the expected amendments in the provisions of the Dutch corporate governance code, the Board adopted amended Board Rules, including an amended Audit Committee charter and Nomination and Remuneration Committee Charter, and established a Sustainability Committee and its Charter. The Group’s bilateral contact policy and the diversity policy were amended and approved, a new rotation schedule for the Non-Executive Directors was adopted as well as a new profile. CTP’s energy business, non-financial data and ESG performance, including the GRESB report, were discussed.

At its 16 December meeting, the Board discussed with the Audit Committee the effectiveness of the design and operation of the internal risk management and control systems. The outcome of the assessment was that no major failings in the internal risk management and control systems were observed in the reporting year, and that no significant changes had to be made to these systems.# Goverance Report

Corporate Governance

5.1.9 POST-2022 EVENTS

The Executive Directors submitted the 2022 financial statements, the Letter of the CEO and the Letter of the CFO and the responsibility statement to the Non-Executive Directors with the recommendation to CTP's shareholders to adopt the 2022 financial statements on 25 April 2023. The financial statements were audited by KPMG, which issued an unqualified auditor’s opinion. The Board approved the ac- counts and signed the 2022 financial statements on 2 March 2023.

5.1.10 BOARD’S ROLE IN RISK OVERSIGHT

The Board is of the opinion that its current structure provides robust and highly effective oversight based on, among other factors:

• all four Non-Executive Directors and one of the Executive Directors are independent (the sole Board member who is not independent is the Chief Executive Officer);
• robust corporate governance principles are in place and are re- viewed throughout the year;
• the Chief Executive Officer and Senior Independent Director both have deep experience and knowledge of CTP’s business and indus- try and a demonstrated unique and successful strategic vision. Both of them continue to be actively focused on their role of providing the overall strategic leadership for CTP, consistent with Dutch law and the Company’s organisational documents and its one-tier board structure—a role that the Board believes remains critically impor- tant, as the industrial and logistics real estate sector continues to experience significant changes at a rapid rate;
• the Audit Committee, the Remuneration and Nomination Commit- tee and the Sustainability Committee are all entirely composed of independent Directors (within the meaning of the Code);
• approval of any appointment of members to the Audit Committee, Remuneration and Nomination Committee and Sustainability Com- mittee must include at least a majority of the independent Directors;
• all Board Committees operate pursuant to written charters;
• the independent Directors of the Board and its Committees engage in detailed discussion and analysis regarding matters put before them and consistently and actively engage in the development and approval of significant corporate strategies.

5.1.11 DIVERSITY AND INCLUSION

CTP is committed to an inclusive culture and aims for an increase of diversity in nationality and age as well as creating and maintaining a variation in education and experience. CTP continues to strive for an adequate and balanced composition of the Board in its future appoint- ments by considering relevant selection criteria such as executive and industry experience, skills and knowledge, personal capabilities, age, gender identity, nationality, cultural and other background qualities.

As of 1 January 2022, Dutch companies listed at Euronext Amster- dam must comply with quotas for supervisory boards and “large” com- panies (in accordance with section 2: 166 of the Dutch Civil Code) must formulate targets to achieve gender balanced boards and senior man- agement. A company’s gender balance targets must be reported to the Dutch Social and Economic Council (SER) annually and will be included in the management report for transparency purposes.

CTP amended its diversity policy in November 2022, renaming it the Diversity and Inclusion Policy and including gender balance targets for the Executive Directors that are ambitious but also—given the en- vironment CTP is operating in—realistic. The targets are formulated as follows: at least 25% of the Executive Directors jointly consist of men and at least 25% of the Executive Directors jointly consist of women. Of the Non-Executive Directors, at least 30% jointly consist of men and at least 30% jointly consist of women. In addition to CTP’s new targets mentioned above, additional tar- gets were set for the senior management: at least 30% of the senior management jointly consist of men and at least 30% jointly consist of women. With respect to nationality, cultural and other background the target is that a maximum of 50% of one nationality and/or cultural background will be represented in the Board.

CTP will put in place a plan to achieve at least two of the three tar- gets referred to above each year (two out the three are met at year- end 2022).

In 2022, the Board consisted of four male and two female mem- bers. The current composition of the Board therefore meets the gender target of having at least 30% female and 30% male Board members, which was CTP's diversity target for the Board until 7 November 2022. The current composition of the Executive Director seats is not evenly distributed amongst male and female persons, as the current two Executive Directors are male. Measures are being taken to address this divergence from CTP’s objectives relating to the senior manage- ment; the diversity within the ten jurisdictions in which CTP is active shows a more balanced distribution of seats. Of the total number of 20 senior management employees, six are female. Of the current four Non-Executive Directors, two are female and two are male. This is a balanced distribution of seats, but CTP stays alert on this distribution.

CTP’s employees come from the Czech Republic, Greece, Germany, Hungary, UK, Romania, Slovakia, Poland, Serbia, Bulgaria, Austria, the US and the Netherlands. The number of female and male employees throughout the year and within all functions in the Company, the age differences and other relevant information on gender can be found in Section 4.4.

Age brackets (%)	20 – 39	30 – 39	40 – 49	50 – 59	60 and older
	13	40	32	13	2

5.1.12 COMPLIANCE WITH THE CODE

The Board, which is responsible for the corporate governance struc- ture of CTP, is of the opinion that the principles and best-practice provisions of the Code are applied. Already before its start as a listed company in March 2021, CTP worked on improving its risk manage- ment and internal control systems, its compliance and governance, and its internal audit. In 2022 improvements were made in evaluating the functioning of the Board and its Directors, succession planning, rotation schedules, the profiles of Board members and senior manage- ment, and discussions on culture and values. This led to the success- ful implementation of 11 best practice provisions, which means at year end 2022 CTP deviates from five best practice provisions of the Code. Considering the Company’s specific shareholding structure, the Board remains committed to and continues to endeavour to comply with more provisions than it complies with today, but it also acknowledges that some best practice provisions will not be complied with in the current structure.

Deviations from the best-practice provisions are explained herein- after. The headings refer to the Code; the explanation relates to the CTP-specific situation.

Best-practice provision 2.2.1 Appointment and re-appointment peri- ods–management board members

This provision prescribes that a managing director is appointed for a maximum period of four years. The CEO has been appointed as Execu- tive Director and may be unlimitedly re-appointed considering his de- sire to continue an active role in the Board as long as possible in order to safeguard CTP’s long-term value creation strategy.

Best-practice provision 2.2.2 Appointment and re-appointment peri- ods supervisory board members

Non-Executive Directors have been appointed for three years, which is formally not in conformity with the four years stipulated by this pro- vision. The Board feels it is important to relate the period for re-ap- pointment to international standards and to be able to get new views and ideas on a more regular basis, but on the other hand realises that staggered terms are helpful to safeguard specific knowledge, skills, and expertise within CTP. Subject to AGM approval, for future ap- pointments the Board has decided to appoint Non-Executive Directors for either two, three or four years (including different second terms of office for possible re-appointment of Non-Executive Directors cur- rently in office).

Best-practice provision 2.2.4 Succession

The Non-Executive Directors discussed the succession of Executive Directors and Non-Executive Directors extensively in 2022, thereby taking into account the profile of the Non-Executive Directors. There is, however, no written plan for succession of members of the Board. CTP currently has a retirement schedule where all four members retire simultaneously, which will change upon the introduction of staggering, once (re-)appointments will be tabled at the AGM.

Best-practice provision 2.2.5 Duties of the selection and appointment committee

The Nomination and Remuneration Committee has not drawn up a plan for the succession of members of the Board.# CTP ANNUAL REPORT 2022

5.1.12 CORPORATE GOVERNANCE

However, the succession of Executive Directors and Non-Executive Directors was discussed numerous times by the Committee as well as by the Board during the year, whereby staggering and diversity requirements, expertise and expansion of resources, especially for the Audit Committee due to the increasing complexity of the business, were tabled. The policy of the Executive Directors on the selection criteria and appointment procedures for senior management was not discussed by the Non-Executive Directors. Such a policy has not been formulated in writing within CTP.

Best-practice provision 4.3.3 Cancelling the binding nature of a nomination or dismissal

The general meeting of a company not having the large company regime (in Dutch: structuurregime) may pass a resolution to nominate or dismiss a member of its managing board or its supervisory board by an absolute majority of the votes cast. It may be provided that this majority should represent a given proportion of the issued capital, the proportion of which may not exceed one-third.

CTP deviates from this provision to the extent that in the Articles and Board Rules it is stated that if a dismissal was not proposed by the Non-Executive Directors, the General Meeting can only dismiss a Director with a two-thirds majority of the votes cast, representing more than half of the issued share capital.

5.1.13 FURTHER INFORMATION PURSUANT TO THE DECREE TAKEOVER DIRECTIVE

Further to the Decree implementing section 10 of the Directive on takeover bids (in Dutch: Besluit artikel 10 overnamerichtlijn) (“Decree Takeover Directive”), CTP is required to report on, among other things: the Company’s capital structure; restrictions on voting rights and the transfer of securities; significant shareholding in CTP; the rules governing the appointment and dismissal of Directors and amendments to the Company's Articles; the powers of the Executive Directors (in particular the power to issue shares or to repurchase shares, together with the Non-Executive Directors); significant agreements to which CTP is a party and which are put into effect, changed or dissolved upon a change of control of CTP following a takeover bid; and any agreements between CTP and the Executive Directors or associates providing for compensation if their employment agreement ceases because of a takeover bid.

The information required by the Decree Takeover Directive is included in this chapter as well as in the subsequent events as part of the disclosure notes of the consolidated Financial Statements.

Capital structure

CTP has one class of shares: ordinary shares with a nominal value of €0.16 each. The shares are listed on Euronext Amsterdam and the issued share capital consists of 444,100,549 shares on 31 December 2022. The rights attached to the shares into which CTP’s capital is divided follow from the Articles and the Dutch Civil Code.

Limits on the transfer of shares

There are no limits on the transfer of CTP shares.

Substantial interests

Pursuant to the Dutch Financial Markets Supervision Act (“FMSA”) and the the Decree on disclosure of major holdings and capital interests in issuing institutions (in Dutch: Besluit melding zeggenschap en kapitaalbelang in uitgevende instellingen Wft) (“Decree Disclosure Major Holdings Issuing Institutions”), the Netherlands Authority for the Financial Markets (“AFM”) must be notified of substantial shareholdings (i.e., a threshold of 3% or more).

On 31 December 2022, CTP Holding BV held 75.58% of the shares in CTP, Multivest BV held 100% of the shares in CTP Holding BV and Stichting Administratiekantoor Multivest held 100% of the shares in Multivest BV. In Stichting Administratiekantoor Multivest the person with controlling interest is Mr. Vos.

Based on the information in the AFM register on 31 December 2022, Capital Research and Management Company has a shareholding of at least 3% of the shares in CTP.

Special control rights

The shares into which CTP’s equity is divided are not subject to any special control rights.

Share plans

CTP has a long-term incentive plan and a deferred incentive plan for Executive Directors and key employees of the Group.

Voting limitations

There are no voting limitations on CTP’s shares.

Agreements with shareholders that can limit the transfer of shares or voting rights

There are no agreements with shareholders that can limit the transfer of shares or voting rights.

Appointment and dismissal of directors, amendments to the Articles

The provisions regarding the appointment and dismissal of Directors are available on CTP’s website. The General Meeting may resolve to amend the Articles with an absolute majority of the votes cast, further to a proposal of the Board approved by a majority of the Non-Executive Directors. A proposal to amend the Articles must be stated in the notice of the AGM. A copy of the proposal, containing the verbatim text of the proposed amendment, must be made available to all shareholders.

Acquisition of own shares

The General Meeting may authorise the Board (i) to purchase shares in CTP’s own capital, and (ii) to issue and grant rights to subscribe for shares and to limit or exclude pre-emptive rights of shareholders in the event of issuing and granting rights to subscribe for shares. Further information can be found in the Articles.

Issue of shares

At the AGM on 26 April 2022, the General Meeting authorised the Board, until 26 October 2023, (i) to issue shares or to grant rights to acquire those shares up to a maximum of 15% of the Company’s share capital as per 26 April 2022, (ii) to issue shares up to the amount of shares reflected on by shareholders pursuant to an interim scrip dividend regarding the 2022 financial year, (iii) to exclude pre-emptive rights accruing to shareholders in connection with the aforementioned issuances, and (iv) to cause the Company to acquire shares in its share capital at a price of up to 110% of the opening price of the shares on Euronext Amsterdam stock exchange during five trading days prior to the date of the acquisition, provided that the Company and its subsidiaries will not at any time hold more than 10% of the issued capital of the Company as per 26 April 2022.

Change of control arrangements

The Company is not a party to material agreements that are in any way subject to or affected by a change of control over the Company following a public offer as referred to in section 5:70 of the FMSA. There are no agreements under which CTP is liable to make any payment to directors on resignation following a public offer as referred to in section 5:70 of the FMSA.

Special rights of control

CTP does not have any potential or existing takeover measures.

Agreements with Executive Directors or employees

The severance payments for the Executive Directors have been set at a maximum of 100% of their annual pay.

Conflict of interest and related party transactions

Under the Board Rules and the Related Party Transactions Policy, conflicts of interest must be reported to the Senior Independent Director. The Senior Independent Director must report any (potential) related-party transaction related to him/her to the vice-chair. In addition, a Director must report any related-party transaction to the (other) Directors and the Company Secretary. No such related-party transactions were reported. The Non-Executive Directors shall determine the consequences of a (potential) conflict of interest, if any. In case of a conflict of interest, the Director concerned is not allowed to participate in discussions or vote on such matter. If one or more Directors have a conflict of interest, the resolution concerned will be voted on if (i) the transaction is entered into on terms that are customary in the market and in compliance with the laws of the relevant jurisdiction, and (ii) the resolution is taken with the consent of at least the majority of the Non-Executive Directors, if the conflict of interest is of material significance to the Company or the relevant Director.

Mr. Vos serves as Chief Executive Officer and Executive Director, while he is also an (indirect) majority shareholder. Accordingly, Mr. Vos may through his (indirect) vote at General Meetings of shareholders support strategies and directions that are in his best interests, which may conflict with the interests of the Company and the other shareholders. Mr. Vos uses means of transportation provided by the Company for private purposes for which he pays a user fee.

The Group is carefully monitoring and assessing related-party transactions that are disclosed in detail in note 34 of the Notes to the Financial Statements.

Personal loans

Personal loans, guarantees, or the like may not be granted to the Executive Directors or to the Non-Executive Directors unless they are provided (i) as part of the normal course of the Company’s business (i.e., if CTP would qualify as a financial institution), (ii) on terms applicable to all Company personnel as a whole, and (iii) after approval of the Non-Executive Directors. No personal loans, guarantees or the like were granted by the Company in 2022.

5.1.14 CTP’S COMPLIANCE FUNCTION

Aiming to protect CTP against financial and other sanctions, criminal liability of legal entities, reputational risk and other negative impacts on the operation and business, CTP continued institutionalising the compliance function in 2022. The compliance function is within the competence of a designated Group AML compliance officer.# Governance Report

Among the main responsibilities of the compliance function are to build and manage compliance and AML programmes; maintain the necessary conditions for the Group’s corporate compliance policies to be effective; train and help the business understand the Group’s compliance policies and procedures; perform AML due diligence and compliance checks of third parties (business partners); act as Group whistleblowing and grievance contact; maintain the Company’s Gifts Register and provide guidance to Company staff; investigate incidents when required; implement new legislative requirements; provide information/evidence for internal/external analyses (e.g., evaluation by rating agencies); and prepare CTP’s Annual Compliance Report. As an integral part of good governance, compliance has its role within the three lines of defence as explained in Section 5.2.

Code of Conduct

CTP has always carried out its business ethically, with zero tolerance towards fraudulent behaviour. Prior to its IPO on Euronext Amsterdam, the Company took further steps to institutionalise its approach to compliance issues, not only by establishing the compliance role, but also by updating its Code of Conduct. CTP’s aim is to operate with 100% integrity, and the Company applies best practices in all countries of operation. CTP adheres to fairness, honesty and truthfulness in its relations with third parties and with CTP staff. CTP strives to be “a good neighbour” and engages in and supports activities that help positively impact communities and society. CTP’s Code of Conduct is reviewed and updated every year. Everyone at CTP is responsible for the Company’s successful journey to integrity. CTP has established adequate controls and procedures to monitor compliance with the Code of Conduct among its employees. To ensure compliance with the rules, all CTP staff certify their knowledge of and commitment to comply with the Code of Conduct and related compliance polices and associated documents, practices, and regulations on an annual basis.

No to corruption

CTP has zero tolerance for corruption or bribery in whatever form. Accordingly, compliance with the Group’s anti-bribery and corruption policy is required from all CTP staff. In the course of its business, CTP complies with the applicable laws, acts fairly and ethically, and expects the same conduct from all CTP staff and the parties with whom CTP does business. The Company identified an increased risk related to third parties in 2022 and implemented new controls and monitoring of potential conflicts of interest.

Trustworthy partners

As an integral part of its strategy, CTP has worked hard over many years to become a trusted, long-term partner for its clients. Fulfilment of this mission would be impossible without CTP’s suppliers and other partners, who play an essential role in CTP’s activities. CTP has had great success developing strong working—and ethical—relationships with its partners and suppliers, based on a shared set of values. As CTP is now a publicly listed company, the Company has taken steps to codify its values, as they underpin its commitment to environmental, social and governance efforts. CTP expects its suppliers and partners to act with care and in line with CTP’s values through the provision of materials, products, or services.

Supply-chain responsibility

CTP strives for environmentally and socially sustainable supply chains that act in line with its values. CTP has implemented for this purpose the CTP Suppliers’ Code of Conduct, based on the Group Code of Conduct, as well as other governance policies. The Suppliers’ Code of Conduct is available on CTP’s website. Each new supplier is checked by the Group AML compliance officer. CTP insists on an environmentally and socially sustainable supply chain that is safe and fair. CTP does not tolerate corruption, bribery, or any other kind of unethical behaviour, and that includes breaches of human rights, including forced labour. CTP invites its suppliers to join its journey to sustainability, as their full commitment and support is necessary.

Know your counterparties

As an AML-obliged entity, CTP applies the requirements set by anti-money laundering/combatting the financing of terrorism (“AML/CFT”) regulations. CTP conducts customer due diligence (“CDD”) procedures with the aim to detect and assess risks related to its customers or transactions and to apply appropriate measures in relation to possible detected risks to mitigate these. Initial CDD procedures in respect of every new customer before the conclusion of a business relationship and execution of the first transaction is done by the Group AML compliance officer. This includes risk rating of customers in accordance with the AML/CFT risk assessment of the respective CTP Group entity.

Whistleblowing

CTP believes whistleblowing is an effective tool to detect fraudulent behaviour. The Company has in place all possible means of whistleblowing and grievance. As part of CTP´s effort to secure a safe tool for raising concerns, the Company also uses an external, independent, secure, and easy to use whistleblowing solution called FaceUp. The solution is GDPR compliant, ISO 27001-certified and available in all CTP languages. CTP also promotes a Speak-Up culture internally and ensures the protection of whistleblowers. This is codified in CTP’s Whistleblower Policy.

Prevention of insider trading and market abuse

As a publicly listed company, CTP is subject to requirements of the Market Abuse Regulation and other securities laws. CTP has implemented mechanisms and rules to prevent insider trading or any other market abuse, such as no dealing in closed periods, keeping a list of persons who have or may have access to inside information (insider list), or additional rules for persons discharging managerial responsibilities. All this is codified in CTP’s Group Insider Trading Policy.

Governance Report

Conflicts of interest

CTP expects its staff to adopt the highest standards of professional ethics and condemns any form of bias, conflict of interest or inappropriate favouritism that could discredit the objectivity of any CTP staff, as stated in the Company’s Code of Conduct. CTP staff are thus prohibited from conducting any role or participating in decisions that might be considered a conflict of interest. Each conflict of interest must be reported and approved (or rejected) in writing by the Group AML compliance officer. The Group AML compliance officer regularly verifies the potential conflict of interest. Adequate safeguards for the protection of the interests of CTP and its shareholders are also in focus and the rules related to the Directors are set in the Related-Party Transactions Policy.

Tone at the top

CTP’s integrity efforts have the full support of CTP’s senior management, who demonstrate zero tolerance to non-ethical approaches and insist on a sustainable conduct of CTP’s business. The tone at the top is a critically important and integral part of CTP’s compliance programme. 100% of CTP Staff is trained on the Group's Code of Conduct, which is held annually.

5.1.15 CORPORATE GOVERNANCE STATEMENT

The Code requires Dutch companies to publish a statement concerning their approach to corporate governance and compliance with the Code. This is referred to in article 2a of the Decree Management Report. The information required to be included in this corporate governance statement as described in section 3 of the Decree Management Report, which is incorporated and repeated here by reference, can be found in the following sections of the Annual Report:

• The information regarding CTP’s risk management and control framework relating to the financial reporting process, as required by article 3a sub a of the Decree Management Report, is in Section 5.3.
• The information regarding the functioning of CTP’s General Meeting and the authority and rights of its shareholders, as required by article 3a sub b of the Decree Management Report, can be found in Section 5.1.2.
• The information regarding the composition and functioning of a (two-tier) management board, supervisory board and its committees, as required by article 3a sub c of the Decree Management Report, has been rephrased to fit a one-tier governance structure and can be found in Section 5.1.3.
• The information regarding CTP’s diversity & inclusion policy, as required by article 3a sub d of the Decree Management Report, can be found in Section 5.1.11.
• The information regarding the number of men and women on the Board and in the management positions below the Board, goals and plan to achieve these goals, as required by article 3d of the Decree Management Report, can be found in Section 5.1.11.
• The information concerning the inclusion of the information required by the Decree Takeover Directive, as required by article 3b of the Decree Management Report, can be found in Section 5.1.13.

The Board discusses annually with the Audit Committee the effectiveness of the design and operation of the internal risk management and control systems, the effectiveness of internal and external audit processes and the way material risks and uncertainties referred to in best-practice provision 1.4.3 of the Code are analysed. The head of risk management in co-operation with the head of internal audit carried out an assessment of the design and effectiveness of the internal risk management and control systems covering strategic, operations, reporting and compliance risks. The result was presented to the Audit Committee and to the Board, and the outcome of this assessment was that no major failings were observed in the internal risk management and control systems in the year under review, that ongoing improvements are needed, and that these will be implemented going forward.# 5.1.16 RESPONSIBILITY STATEMENT MADE BY THE EXECUTIVE DIRECTORS

CTP has identified the main risks it faces, including financial reporting risks. These risks can be found in Section 5.3. In line with the Code and the FMSA, CTP has identified and documented its principal risks and has put in place a system to identify new risks as they emerge. CTP has not provided an exhaustive list of all possible risks. Furthermore, developments that are currently unknown to the Executive Directors or considered to be unlikely may change the future risk profile of CTP. The design of CTP’s internal risk management and control systems is described in Section 5.2. The objective of these systems is to manage, rather than eliminate, the risk of failure to achieve business objectives and the risk of material errors to the financial reporting. Accordingly, these systems can only provide reasonable, but not absolute, assurance against material losses or material errors. CTP’s Executive Directors reviewed and analysed the main strategic, operational, financial and reporting, and compliance risks to which CTP is exposed and assessed the design and operating effectiveness of CTP’s risk management and internal control systems in 2022. The outcome of this review and analysis was that no major failings in the internal risk management and control systems were observed during the reporting year. The outcome of this assessment was shared with the Audit Committee and the Non-Executive Directors and was discussed with CTP’s internal and external auditors.

As required by best-practice provision 1.4.3 of the Code and section 5:25c(2)(c) of the FMSA and based on the foregoing and explanations contained in Section 5.2, the Executive Directors confirm that to their knowledge:

• The Annual Report provides sufficient insights into any failings in the effectiveness of the internal risk management and control systems in general;
• These systems provide reasonable assurance that the financial reporting does not contain any material inaccuracies;
• Based on the current situation, it is justified that the financial reporting is prepared on a going-concern basis;
• The Annual Report states those material risks and uncertainties that are relevant to the expectation of CTP’s continuity for the period of twelve months after the preparation of the Annual Report;
• The financial statements for 2022 provide, in accordance with IFRS as adopted by the European Union, a true and fair view of the consolidated assets, liabilities, the financial position and the profit or loss of the Company and its consolidated assets/companies as at 31 December 2022, and of the 2022 consolidated income statement and cash flows of CTP;
• The Annual Report presents a true and fair view of the situation as of 31 December 2022, the state of affairs during the 2022 financial year and the related entities included in its financial statements, together with a description of the main risks faced by the Group.

Remon L. Vos (CEO)
Richard J. Wilkinson (CFO)

Amsterdam, 3 March 2023

Corporate Governance 334

5.2 Risk Management and Internal Controls

5.2.3 ERM FRAMEWORK

CTP Group’s ERM framework is an integrated, risk-based system of functions, processes and methodologies and is constructed based on three pillars:

5.2.1 CTP GROUP APPROACH TO RISK MANAGEMENT

Exposure to risk arises in the normal course of the Company’s business. The CTP Group approach to risk management focuses on the principles of identification, understanding, quantification and control of the relevant sources of risk and on supporting senior management in the steering of the business and the investment portfolio. The Group’s Enterprise Risk Management (“ERM”) framework was designed to reflect these principles. For CTP’s exposure to credit risk, market risk, capital risk and liquidity risk, along with the possible impact on the Group's result and/or financial position in case of changes in assumptions, please refer to the sensitivity analysis in note [35] in the financial statements. Addressing climate risks is important part of CTP's ESG strategy. It concerns physical and transitional climate risks. The description can be found in Section 4.3.1.

5.2.2 RISK MANAGEMENT POLICY

CTP Group’s ERM framework is documented in the Group’s Risk Management Policy. This document evolves continuously and is reviewed annually by CTP’s Audit Committee, in line with the Dutch Corporate Governance Code. If necessary, it is updated by the CFO in conjunction with the Group Head of Risk Management. The policy is mandatory and applies to all CTP Group entities. The approach and principles described must be followed with respect to all approvals and controls by the Executive Directors and their delegated risk owners.

Corporate Governance

336

Risk Management and Internal Controls

Pillar 1 THREE LINES OF DEFENCE

To achieve clarity of responsibilities and accountabilities, the Group has adopted the “three lines of defence” model (3LoD), considered regulatory best practice. The three lines are business, risk management, and internal audit (with the supervisory functions of the Audit Committee and the Board of Directors). They work independently and sequentially to provide assurance that activities take place in line with business objectives and procedures. Business and operating units are accountable for all risk-taking decisions within the Group. They manage and mitigate risks in compliance with CTP’s risk policy requirements while operating within the risk appetite boundaries set and approved by CTP’s Board of Directors. The Risk Management department (together with Compliance) provides oversight of the risk management process and supports the Board of Directors to implement and operate the risk management process. Its role is not to manage risk, but to act as an enabler to the first line so that they can effectively manage risk. The Internal Audit department supports the Board of Directors in providing independent, objective assurance and advice about the quality, completeness and effectiveness of the Group's risk management framework.

Third Line of Defence
  INTERNAL AUDIT
Second Line of Defence
  RISK MANAGEMENT
First Line of Defence
  BUSINESS AND OPERATING UNITS

Board
Executive Directors
Board Audit Committee

337

Pillar 2 LIFECYCLE OF RISK FUNCTIONS

The Group has formulated a seven-step process that defines what actions need to be performed and when to ensure effectiveness and completeness in managing risks.

• Risk Identification – a systematic process to identify and document the Group’s principal risks.
• Risk Analysis – identified risks are analysed, and an assessment is formed regarding their nature, impact and frequency of occurrence.
• Risk Appetite – the amount of risk the Group is willing to accept in pursuit of its strategic objectives.
• Risk Mitigation – the Group may choose to avoid, limit, transfer, hedge or insure its risk.
• Risk Control – the design, implementation and maintenance of a Risk Control framework.
• Risk Reporting and Monitoring – the Board of Directors monitors the Group’s exposures as part of the reporting process.
• Assessment of Effectiveness – the lifecycle that is formed will be repeated as new risks emerge and the effectiveness of the existing controls may require improvement.

6. Risk Reporting and Monitoring
3. Risk Appetite
5. Risk Control
2. Risk Analysis
7. Assessment of Effectiveness
4. Risk Mitigation
1. Risk Identification

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Pillar 3 TAXONOMY OF RISKS

The risk universe was scanned to identify the unique risks that could materially impact the Group’s business strategy and objectives. The various risks that the Group has identified and analysed have been organised in three layers: risk areas, risk groups and unique risks. The 49 unique risks (Level 3) have been organised into 19 risk groups (Level 2) based on their similarity and ownership by different functions, and ultimately into four risk areas (Level 1).

• Strategic Risks are often risks that the Group may have to take to expand and thrive in the long term.
• Investment Risks are the Group’s main business risks, which are related to the management of the portfolio of the Group’s assets.
• Financial Risks capture the risk of having inadequate access to capital, funding and liquidity along with market, credit and tax risks.
• Operational Risks are the risks that actual losses, incurred for inadequate or failed internal processes, people and systems, or from external events, differ from expected losses.

Each risk area has been allocated to a different Executive Director (or to both Executive Directors) who is (are) the owner(s) of that risk and responsible for managing it. The responsibility for the management of each risk group has been allocated downstream to a different head of department. The reason for overlaying the risk taxonomy across the Company management structure is to ensure that integration and control happens naturally.

Risk Management and Internal Controls

Risk Areas	Risk Groups
INVESTMENT RISKS	Property Sector
	Portfolio
	Single Properties
STRATEGIC RISKS	Business Model
	Organisation
	Macroeconomic
	Geopolitical
	ESG
FINANCIAL RISKS	Capital, Funding, Liquidity
	Market
	Credit
	Tax
OPERATIONAL RISKS	HR
	IT
	Legal
	Compliance
	Insurance
	Climate Change
	Model

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5.2.4 IMPLEMENTATION OF THE RISK MANAGEMENT PROCESS

In 2022, CTP established its Group-wide risk management system, following on from the identification and quantification of Group risks and the creation of the Group’s Risk Policy and Inventory in 2021. CTP’s risk management system combines data from various sources on a single platform that enables monitoring and reporting of risks and identification of early warning signals.# 5.2.5 RISK MANAGEMENT SYSTEM

CTP’s risk management system is a single platform that enables monitoring the Group’s risk exposure and provides early warning signals through online dashboards. The use of the same financial data that is used for reporting provides an additional layer of control. The main components of CTP’s new risk management system are:
* financial and non-financial data;
* risk sensitivities;
* expected losses;
* comprehensive stress testing.

5.2.6 INTERNAL CONTROLS

The Company has created a controlled environment with:
* centralised approvals by the Executive Directors of investments, budgets and payments, which then flow into systems with controlled access rights;
* a risk management system that is integrated into the Company’s reporting ecosystem and uses the same financial data;
* consolidated financial statements that go through three levels of review;
* integration of the Risk Management department within the Company, with active participation in hedging, modelling, funding and liquidity management, and climate risk;
* Risk Management receives the same controlling information that senior management uses;
* regular risk monitoring meetings with various risk owners.
* major digitisation and automation projects are on-going.

5.2.7 RESPONSIBILITIES

• The Executive Directors, as a general principle, determine the Company’s risk appetite. They approve and verify the design of the controls, approve and review the implementation of the controls as well as the maintenance thereof, and manage and mitigate the risks.
• The Risk Management department identifies the risks, assesses the risk analysis and quantification, advises on the risk appetite, implements the controls, and monitors and reports on the risks.
• Country Heads, the business and operating unit leaders and all other risk owners manage, mitigate and inform about the relevant risks.
• Internal Audit reviews each step of the process to provide independent assurance. They report to the chair of the Audit Committee and the CFO.
• The Audit Committee reviews the risk identification, provides input about the design of the control mechanisms and supervision of their maintenance, and judges and advises the Board of Directors thereon.
• The Board of Directors reviews the risk identification, approves the risk appetite, supervises the implementation and maintenance of the controls, and approves the management and mitigation of the risks as well as risk reporting.

5.2.8 RISK APPETITE

Risk appetite is the amount of risk the Group is willing to accept in pursuit of its strategic objectives. The three levels of risk appetite currently used are:
* Manage – these are risks that the Group is taking to meet its investment objectives. They are mainly strategic and investment/property risks as appropriate for a real estate investment company. In this category valuation risk, capital risk and funding risk are also included as being integral to the investment process and the property market itself. The Group has the expertise to manage these risks to maximise its profit potential.
* Avoid – these are risks that the Group tries to avoid.
* Minimise – The Group’s tolerance for these risks is zero but some minimal risk is unavoidable. All operational risks are included in this category

5.2.9 RISK CONTROL FRAMEWORK

The Group’s risk control function is based on a centralised framework of approvals, systems and data. It starts with central approvals of investments and budgets by the Executive Directors, which then flow into systems, and then again with the central approval of payments by the Executive Directors, creating a closed “sandbox” environment outside of which no investment or payment can be approved. The control workflow has two components: ex-ante, controls are incorporated in periodic reporting and approval documentation for the risk owners to inform the Risk Management department and the Audit Committee/Board of Directors about the risks that are perceived to be most significant and the mitigation strategies that are used against them; and ex-post control, Risk Management independently aggregates all data to calculate risk measures from internal systems. This data is sourced from the same internal controlling and accounting systems that are used for financial reporting. The Risk Management department is responsible for periodic risk reporting to the Audit Committee and the Board of Directors, thereby incorporating information from the risk owners. An online dashboard is delivered quarterly for all the risks, with ad hoc updates in cases of bigger perceived macroeconomic risks.

5.2.10 UPDATE ON CTP’S PRINCIPAL RISKS IN 2022

War in Ukraine

CTP was largely unaffected by the war in Ukraine in 2022, as it has no assets with direct exposure in Ukraine or in Russia.

Inflation

An indirect effect of the war in Ukraine was a temporary price increase of construction materials at the beginning of the year due to supply disruptions. CTP acts as general contractor, with in-house teams taking full responsibility and control over the construction process. This, in combination with the central procurement of supplies directly from multiple sources, often by-passing distributors, protected the target YoC, which remained above 10%, also thanks to significant rental increases. Prices and delivery times decreased from their peaks but remained above 2021 levels throughout the year. CTP mitigates risk associated with high inflation via the use of double indexation clauses in 49% of its lease agreements, which defines that indexation is the higher of the Consumer Price Index or a fixed increase of 1.5%–2.5%. CTP expects the percentage of indexed lease agreements to increase over time, as new contracts have by default this double indexation clause included. The remaining part of the Group’s lease agreements have a fixed increase of 1.5%–2.5%; however, with market rents increasing significantly, these lease agreements have a significant built-in reversionary potential.

Energy

The increase in energy prices in 2022 had minimal direct effect on CTP, as its operations are not energy intensive. Going forward, CTP has ambitious plans to produce solar energy using photovoltaic panels installed on the rooftops of the Group’s properties. At year-end 2022, CTP had an installed capacity of 38 MWp and the Group plans to add an additional 100 MWp in 2023.

Interest rates

All financing for standing properties is fixed, so financing cost increase is to a certain extent limited by the Company’s average debt profile. During 2022, following developments on capital markets, CTP leadership decided that bank financing was significantly more attractive than bond financing. In February, the Company renegotiated one of its loan facilities, resulting in a reduction of the margin and extension of the maturity by an additional three years, until 15 February 2034. The Company was able to leverage its strong relationship with its banking partners and in September extended an existing loan facility with a syndicate of Czech banks, attracting €400 million of new financing, with a fixed interest rate of 4.71% and a maturity of nine years. In December, CTP signed a seven-year loan facility with two Dutch banks, obtaining €175 million for a fixed all-in cost of 4.27%. This funding, together with the Group’s 2023 cash flow, will be used to refinance the bond that is maturing in November 2023. Funding costs for the Group’s developments in 2023 have been fixed to a high degree through hedging of future needs.

Macroeconomic slowdown

Various leading indicators observed during 2022 point at the possibility of a recession in some European economies in 2023. At the same time, the market outlook is very supportive of CEE Logistic Real Estate, with very low vacancies, strong rental growth, expected doubling of e-commerce penetration, nearshoring and barriers to supply. At CTP, new projects start as a response to demand from existing tenants, which represents around two-thirds of new projects. If demand drops due to an economic slowdown, the Company can balance or adjust completions in line with demand.

Risk Management and Internal Controls 341

Principal Risks

| LEVEL 3 | LEVEL 2 | LEVEL 1 | DESCRIPTION | RISK OWNER | ESTIMATED IMPACT | ESTIMATED PROBABILITY | RISK APPETITE | MANAGEMENT & MITIGATION STRATEGIES # RISK OWNER: CFO ESTIMATED IMPACT: Signifiicant ESTIMATED PROBABILITY: Likely RISK APPETITE: Avoid MANAGEMENT & MITIGATION STRATEGIES: • All interest rate debt is fiixed; • High degree of pre-hedging future funding requirements; • Constant monitoring of interest rate market movements.

LEVEL 3 Inflation Risks

LEVEL 2 Market Risks

LEVEL 1 Financial Risks

DESCRIPTION: The Group’s business could be negatively affected by rising inflation, as some of the lease agreements the Group has entered into with its tenants still contain a fiixed adjustment of rent clause.
RISK OWNER: CFO ESTIMATED IMPACT: Signifiicant ESTIMATED PROBABILITY: Likely RISK APPETITE: Minimise
MANAGEMENT & MITIGATION STRATEGIES: • The Group's biggest cost is fiinancing, which is fiixed; • Operational costs constitute less than 20% of cash income and are thus considered manageable even in times of prolonged high inflation; • Increased construction costs are covered by the double indexation clauses (inflation adjustment with a minimum 1.5% in 49% of contracts by year-end 2022) as well as the higher rents of the new properties.

Corporate Governance 342

5#4

LEVEL 3 Funding – Issuance Risks

LEVEL 2 Capital, Funding & Liquidity Risks

LEVEL 1 Financial Risks

DESCRIPTION: Any additional debt or equity fiinancing the Group may need may not be available on terms favourable to the Group or at all, which could adversely affect the Group’s future plans.
RISK OWNER: CFO ESTIMATED IMPACT: Signifiicant ESTIMATED PROBABILITY: Possible RISK APPETITE: Manage
MANAGEMENT & MITIGATION STRATEGIES: • The Group’s senior management has extensive capital markets experience. • The Group has longstanding relationships with a diversifiied group of international investment banking partners • Regular monitoring of risks that could negatively affect the Group’s fiinancial partners.

LEVEL 3 Macroeconomic Environment Risks

LEVEL 2 Macroeconomic Environment Risks

LEVEL 1 Strategic Risks

DESCRIPTION: The Group is exposed to macroeconomic conditions and business-cycle risks that affect the markets in which the Group operates.
RISK OWNER: CFO ESTIMATED IMPACT: Material ESTIMATED PROBABILITY: Possible RISK APPETITE: Manage
MANAGEMENT & MITIGATION STRATEGIES: • The Group negotiates long lease terms; • Portfolio diversifiication across industries and single names; • Contracts with parent company guarantees; • Portfolio consists of high credit quality tenants, mainly large national and international companies; • Excellent location of properties, near major cities and transport arteries; • Constant monitoring of macro- economic trends and developments in major industries across the Group’s countries of operation; • Implemented fiinancial hedging programme; • Experienced in-house research department supported by independent research; • The Group receives market intelligence from investment banks; • Experienced local presence and an extensive network of market contacts, advisors and consultants; • New projects start as a response to demand from existing tenants with whom CTP does almost two-thirds of new projects; • If demand drops because of a slowdown, the Company can balance or adjust the completion schedule.

Principal Risks 343 344 345

Financial Statements 346

6 Financial Statements

CTP N.V. Consolidated financial statements for the year ended 31 December 2022
CTP N.V. Apollolaan 151 1077 AR Amsterdam The Netherlands

Financial Statements 347

Consolidated Financial Statements 349

Consolidated statement of profit and loss and comprehensive income	In EUR thousand
	Note	1.1.2022 - 31.12.2022		1.1.2021 - 31.12.2021
		Revenues	Attributable external expenses	Revenues	Attributable external expenses
Rental income	7	485,017	334,651
Service charge income	7	51,875	31,112
Property operating expenses	9	-84,758	-38,910
Net rental income		452,134	326,853
Hotel operating revenue	8	16,021	8,779
Hotel operating expenses	8	-12,280	-11,334
Net operating income from hotel operations		3,741	-2,555
Income from development activities	8	36,200	32,824
Expenses from development activities	8	-27,158	-23,459
Net income from development activities		9,042	9,365
Total revenues		589,113	407,366
Total attributable external expenses		-124,196	-73,703
Gross profit		464,917	333,663
Net valuation result on investment property	19	723,580	1,100,571
Other income	10	8,182	10,445
Amortisation and depreciation	20	-10,729	-8,447
Employee benefits	11	-43,706	-31,883
Impairment of financial assets		1,225	-1,078
Other expenses	12	-59,584	-26,463
Net other income/expenses		-104,612	-57,426
Profit/loss before finance costs		1,083,885	1,376,808
Interest income		4,235	1,993
Interest expense	13	-84,944	-70,883
Other financial expenses	14	-17,939	-38,120
Other financial gains/losses	15	2,031	6,892
Net finance costs		-96,617	-100,118
Profit/loss before income tax		987,268	1,276,690
Income tax expense	16	-190,743	-250,754
Profit for the period		796,525	1,025,936
Other comprehensive income
Items that will never be reclassified to profit and loss
Revaluation of PPE net of tax		-813	7,554
Items that are or may be reclassified to profit and loss
Cash flow hedge - effective portion of changes in fair value net of tax	23	23,727	--
Foreign currency translation differences net of tax		-6,169	-3,742
Total other comprehensive income net of tax		16,745	3,812
Total comprehensive income for the year		813,270	1,029,748
Profit attributable to:
Non-controlling interests	26	1,876	--
Equity holders of the Company		794,649	1,025,936
Total comprehensive income attributable to:
Non-controlling interests	26	1,876	--
Equity holders of the Company		811,394	1,029,748
Earnings per share
Basic earnings per share	25	1.83	2.68
Diluted earnings per share	25	1.83	2.68

The notes herein are an integral part of these consolidated financial statements. 351

Consolidated statement of financial position

In EUR thousand
	Note	31 December 2022	31 December 2021
Assets
Investment property	17	10,124,185	7,575,107
Investment property under development	18	1,193,343	774,203
Property, plant and equipment	20	168,905	110,967
Intangible assets		3,492	2,111
Trade and other receivables	21	18,014	100,739
Derivative financial instruments	31	9,165	126
Financial investments		459	445
Long-term receivables from related parties	34	45,245	47,124
Deferred tax assets	32	17,851	24,052
Total non-current assets		11,580,659	8,634,874
Trade and other receivables	21	235,584	144,082
Short-term receivables from related parties	34	332	528
Derivative financial instruments	31	41,881	46
Contract assets		3,404	7,039
Current income tax receivable	32	6,175	7,260
Cash and cash equivalents	22	660,631	892,816
Total current assets		948,007	1,051,771
Total assets		12,528,666	9,686,645
Equity
Issued capital	23	71,052	64,063
Translation reserve	23	4,547	10,716
Share premium	23	3,024,521	2,661,979
Cash flow hedge reserve	23	23,727	--
Retained earnings		2,142,267	1,350,856
Revaluation reserve		18,403	19,216
Total equity attributable to owners of the Company		5,284,517	4,106,830
Non-controlling interest	26	--	--
Total equity		5,284,517	4,106,830
Liabilities
Interest-bearing loans and borrowings from financial institutions	27	1,868,129	1,110,471
Bonds issued	28	3,563,788	3,368,202
Trade and other payables	29	103,952	64,591
Long-term payables to related parties	34	3	18
Derivative financial instruments	31	2,018	--
Deferred tax liabilities	32	913,855	746,773
Total non-current liabilities		6,451,745	5,290,055
Interest-bearing loans and borrowings from financial institutions	27	24,730	20,833
Bonds issued	28	417,562	13,490
Trade and other payables	29	320,917	237,148
Derivative financial instruments	31	12,677	--
Current income tax payables	32	16,518	18,289
Total current liabilities		792,404	289,760
Total liabilities		7,244,149	5,579,815
Total equity and liabilities		12,528,666	9,686,645

The notes herein are an integral part of these consolidated financial statements.# Financial Statements

Consolidated statement of changes in equity

Over the year In EUR thousand

	Issued capital	Translation reserve	Share premium	Cash flow hedge reserve	Revaluation reserve	Retained earnings	Total equity attributable to parent	Non-controlling interest	Total equity
1.1.2022 - 31.12.2022
Balance at 1 January 2022	64,063	10,716	2,661,979	--	19,216	1,350,856	4,106,830	--	4,106,830
Comprehensive income for the period
Profit for period	--	--	--	--	--	794,649	794,649	1,876	796,525
Other comprehensive income
Revaluation of Property, plant and equipment	--	--	--	--	-813	--	-813	--	-813
Cash-flow hedge	23	--	--	23,727	--	--	23,727	--	23,727
Foreign currency translation differences	--	-6,169	--	--	--	--	-6,169	--	-6,169
Comprehensive income for the period	--	-6,169	--	23,727	-813	794,649	811,394	1,876	813,270
Other movements
Issuance of shares related to acquisition of subsidiary with NCI	23	5,187	391,030	--	--	--	396,217	--	396,217
Acquisition of NCI without change in control	26	--	--	--	--	--	--	95,943	95,943
Issue of shares related to merger	23	1,226	96,593	--	--	--	97,819	-97,819	--
Treasury shares	23	-4	-541	--	--	--	-545	--	-545
Dividends	23	580	-124,540	--	--	--	-123,960	--	-123,960
Change of share without change of control	26	--	--	--	--	-2,247	-2,247	--	-2,247
Common control transactions	6	--	--	--	--	-1,082	-1,082	--	-1,082
Share based payment		--	--	--	--	91	91	--	91
Total other movements	6,989	--	362,542	--	--	-3,238	366,293	-1,876	364,417
Balance at 31 December 2022	71,052	4,547	3,024,521	23,727	18,403	2,142,267	5,284,517	--	5,284,517

1.1.2021 - 31.12.2021

	Issued capital	Translation reserve	Share premium	Cash flow hedge reserve	Revaluation reserve	Retained earnings	Total equity attributable to parent	Non-controlling interest	Total equity
Balance at 1 January 2021	53,760	14,458	1,858,460	--	11,662	324,862	2,263,202	1,031	2,264,233
Comprehensive income for the period
Profit for period	--	--	--	--	--	1,025,936	1,025,936	--	1,025,936
Other comprehensive income
Revaluation of Property, plant and equipment	--	--	--	--	7,554	--	7,554	--	7,554
Foreign currency translation differences	--	-3,742	--	--	--	--	-3,742	--	-3,742
Comprehensive income for the period	--	-3,742	--	--	7,554	1,025,936	1,029,748	--	1,029,748
Other movements
Share issuance	23	9,763	809,572	--	--	--	819,335	--	819,335
Dividends	23	540	-6,053	--	--	--	-5,513	--	-5,513
Share based payment	24	--	--	--	--	85	85	--	85
Increase of shares without change of control		--	--	--	--	-27	-27	-1,031	-1,058
Total other movements	10,303	--	803,519	--	--	58	813,880	-1,031	812,849
Balance at 31 December 2021	64,063	10,716	2,661,979	--	19,216	1,350,856	4,106,830	--	4,106,830

The notes herein are an integral part of these consolidated financial statements.

Consolidated statement of cash flows

Over the year In EUR thousand

	Note	1.1.2022 - 31.12.2022	1.1.2021-31.12.2021
Operating activities
Net result for the year		796,525	1,025,936
Adjustments for:
Net valuation result on investment property	19	-723,580	-1,100,571
Amortisation and depreciation	20	12,405	10,121
Net interest expense	13	80,709	68,890
Change in fair value of derivatives and associated closeout costs	31	-4,052	-12,127
Other changes		-12,527	1,262
Change in foreign currency rates		17,617	20,055
Income tax expense	16	190,743	250,754
		357,840	264,320
Decrease/(increase) in trade and other receivables and other items		-47,801	-56,442
Increase/(decrease) in trade and other payables and other items		78,372	3,349
Decrease/(increase) in contract assets		3,635	5,839
Cash generated from operations		34,206	-47,254
Interest paid	27	-64,697	-45,165
Interest received		3,785	223
Income taxes paid		-30,819	-33,066
Cash flows from operating activities		300,315	139,058
Investment activities
Acquisition of investment property		-228,433	-174,392
Acquisition of PPE and intangible assets		-43,909	-13,969
Advances paid for IP and PPE		-6,353	-96,526
Proceeds from disposal of investment property and PPE		11,146	4,312
Acquisition of subsidiaries, net of cash acquired	6	-112,522	-297,217
Pre-acquisition loans and borrowings provided to acquired subsidiaries	6	-194,843	-255,351
Loans and borrowings provided to related parties		-1,790	-15,000
Proceeds from loans and borrowings provided to related parties		2,398	3,512
Proceeds from loans and borrowings provided to third parties		80,184	--
Proceeds from disposal of subsidiaries, net of cash disposed	6	--	8,950
Development of investment property		-870,674	-599,566
Cash flows used in investing activities		-1,364,796	-1,435,247
Financing activities
Bonds issued	27	733,368	2,479,615
Repayment of interest-bearing loans and borrowings/bonds	27	-391,201	-2,119,968
Proceeds from interest-bearing loans and borrowings	27	628,987	677,468
Repayment of loans/liabilities to related companies	27	--	-35,968
Transaction costs related to loans and borrowings/bonds	27	-4,754	-45,344
Proceeds from the issue of share capital	23	--	854,238
Repayment of share premium	23	--	-34,904
Acquisition of NCI	26	-2,247	--
Dividends paid	27	-123,960	-5,513
Payment of lease liabilities	27	-3,010	-974
Cash flows from/used in financing activities		837,183	1,768,650
Cash and cash equivalents at 1 January		892,816	419,141
Net increase in cash and cash equivalents		-227,298	472,461
Change in foreign currency rates		-4,887	1,214
Cash and cash equivalents at 31 December	22	660,631	892,816

The notes herein are an integral part of these consolidated financial statements.

Notes to the consolidated financial statements

GRI 2-1 1. GENERAL INFORMATION

Company
CTP N.V. (the Company) is a Dutch-based real estate investor and developer, which develops and leases a portfolio of properties in Western Europe and Central and Eastern Europe (CEE).

Reporting entity
These consolidated financial statements comprise the Company and its subsidiaries (collectively referred to as the “Group”, “CTP Group”, “CTP” and individually as “Group companies”). Refer to Notes 6 and 33 of the consolidated financial statements for a list of significant Group entities and changes to the Group in 2022 and in 2021.

Principal activities
CTP is a full-service commercial real estate developer managing and delivering custom-built, high-tech business parks mainly in CEE, the Netherlands, Austria and Germany.

Registered office
The visiting address of CTP N.V. is Apollolaan 151, 1077 AR Amsterdam, the Netherlands. The corporate seat of the Company was approved on Annual general meeting held on 26 April 2022 and changed from Utrecht to Amsterdam, the Netherlands.

RSIN number: 860528091
Registration number: 76158233

CTP N.V. was incorporated on 21 October 2019 for an unlimited period. In March 2021, the Company’s shares were issued on the Amsterdam Stock Exchange (EURONEXT) and CTP has changed its legal form from B.V. to N.V.

Owner of the Company at 31 December 2022:

Shareholders	Number of shares	Share in registered capital	Share in voting rights
CTP Holding B.V.	335,644,164	75.58%	75.58%
Individual shareholders	108,456,385	24.42%	24.42%
Total	444,100,549	100.00%	100.00%

The Group’s ultimate parent company is Multivest B.V. (the Netherlands).

Board of Directors at 31 December 2022:

• Executive directors:
  • Remon L. Vos
  • Richard J. Wilkinson
  • Pavel Trenka
• Non-executive directors:
  • Susanne Eickermann-Riepe
  • Barbara Knoflach
  • Gerard van Kesteren

2. GOING CONCERN

CTP’s properties are leased to a wide range of tenants and there is no significant focus on a group or company. CTP closely monitors the financial stability of its tenants and believes that, in light of the current economic climate, its rental projections for the coming 12 months are realistic. CTP expects to settle its current liabilities as at 31 December 2022, during the financial year 2023, as follows:

In EUR thousand	2022
Current liabilities as at 31 December 2022	792,404
Current assets excluding cash and cash equivalents as at 31 December 2022	287,376
Funds required in 2022 to cover the short-term liquidity need	505,028
Available cash as at 31 December 2022	660,631
Expected net rental income available for repayment current
Interest-bearing loans and borrowings to be received in 2023	533,646
Expected drawdowns of loans and borrowings from financial institutions under existing loan facilities	95,000
Revolving facility *	--
Expected funds to be received in 2023 to cover the short-term liquidity need	1,289,277

• The Company has a EUR 400 million revolving credit facility (2021: EUR 400 million) for a three-year period. The Company does not expect a partial or full drawdown under this facility in 2023.

Based on cash-flow projections prepared for 2023, other development up to the date of approval of these consolidated financial statements, and the management assessment results (described above), the Directors and management of the Group have not identified significant going concern risks. They believe it is appropriate to prepare the consolidated financial statements on a going concern basis as at 31 December 2022, and no material uncertainty existed with respect to the going concern of the Group as at 31 December 2022.

3. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

a) Statement of compliance

These consolidated financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU-IFRSs) and with Section 2:362(9) of the Dutch Civil Code. The changes to significant accounting policies are described in Note 3d. The consolidated financial statements were authorised for issue by the Board on 3 March 2023.

b) Financial reporting and comparative period

CTP N.V. has a 12-month financial year ended on the balance sheet date of 31 December 2022 and 31 December 2021, respectively.

c) Common control transactions

There were no significant common control transactions in 2022 or in 2021. Please, refer to Note 6.d) CTP considered the following new and amended standards in 2022

For the preparation of the consolidated financial statements of the Group, the following new or amended standards and interpretations were considered for the first time for the financial year beginning 1 January 2022. The nature and the effect of these changes are disclosed below, however the impact on Consolidated financial statements is immaterial:

• Onerous contracts – Cost of Fulfilling a Contract (Amendments to IAS 37): The amendments specify what costs an entity includes in determining the cost of fulfilling a contract, to assess whether the contract is onerous. The amendments apply for annual reporting periods beginning on or after 1 January 2022 to contracts existing when the amendments are first applied.
• Annual Improvements to IFRS Standards 2018–2020: Amendments to IFRS1, IFRS9, IFRS 16 and IAS41.
• Property, Plant and Equipment: Proceeds before Intended use (Amendment to IAS 16): Under the amendments, proceeds from selling items before the related item of PPE is available for use should be recognised in profit or loss, together with the costs of producing those items. IAS 2 Inventories should be applied in identifying and measuring these production costs.
• Reference to the Conceptual Framework (Amendments to IFRS3).

e) Standards issued but not yet effective

A number of new standards took effect from the financial years beginning after 1 January 2022, although earlier application was permitted. The Group did not adopt the new or amended standards in preparing these consolidated financial statements. The following amended standards and interpretations are not expected to have a significant impact on the Group’s consolidated financial statements:

• Classification of Liabilities as Current and Non-current (Amendment to IAS 1): To clarify the requirements on determining if a liability is current or non-current, the International Accounting Standards Board (the Board) has amended IAS 1.
• Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2): The Board has issued amendments on the application of materiality to the disclosure of accounting policies.
• Definition of Accounting Estimates (Amendments to IAS 8): The amendment clarifies how companies should distinguish changes in accounting policies from changes in accounting estimates, focusing on the definition of and clarifications on accounting estimates.
• Deferred Tax related to Assets and Liabilities arising from single transaction (Amendment to IAS 12): The amendment clarifies how companies should account for deferred tax on certain transactions, e.g., leases and decommissioning provisions.
• IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts: IFRS 17 introduces a new measurement model for insurance contracts.

f) Functional and presentation currency

The presentation currency of the Group is euro (EUR), as the owners of the Company base their economic decisions on information expressed in this currency. All financial information presented in EUR is rounded to the nearest thousand. The Group analysed each entity level based on primary, secondary and other indicators, and concluded:

• Group entities focused on investing and development activities in specific countries (“development companies”) have a functional currency in the local currency:
  • where competitive forces and regulations mainly determine the sales prices of its goods and services rendered to other companies operating in the same country;
  • that primarily influences labour, material and other costs of providing goods and services;
  • in which receipts from operating activities are usually retained;
• other Group entities that operate industrial parks or dormant entities with future industrial parks development potential have EUR functional currency, as:
  • sales prices of services rendered to the tenants are in EUR;
  • funds from financing activities are generated in EUR;
  • activities of these companies are conducted as an extension of the reporting entity, with no significant degree of autonomy.

CTP Group’s development companies are:

• CTP Invest, spol. s r.o. — functional currency Czech koruna (CZK)
• CTP Invest Poland Sp. z o.o. — functional currency Polish zloty (PLN)
• CTP Invest d.o.o. Beograd-Novi Beograd — functional currency Serbian dinar (RSD)
• CTP Management Hungary Kft. — functional currency Hungarian forint (HUF)
• CTP Invest Bucharest SRL — functional currency Romanian leu (RON)
• CTP Invest SK, spol. s r.o. — functional currency euro (EUR)
• CTP Invest EOOD — functional currency Bulgarian lev (BGN)
• CTP Invest Immobilien GmbH – functional currency euro (EUR)
• CTP Invest B.V. – functional currency euro (EUR)
• CTP Invest Germany GmbH – functional currency euro (EUR)

All other Group companies have EUR as their functional currency.

g) Basis of measurement

The Group’s consolidated financial statements are prepared on a historical cost basis, except for the following items, which are measured on an alternative basis on each reporting date:

• derivative financial instruments are measured at fair value;
• investment property is measured at fair value;
• solar plants within property, plant and equipment are measured at fair value;
• hotels within property, plant and equipment are measured at fair value.

h) Use of estimates and judgments

The preparation of the consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that the management believes reasonable under the circumstances. The results of these form the basis of judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The actual results may differ from these estimates. The estimates and assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Information about significant areas of estimates, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amount recognised in the financial statements, are described in the following Notes:

• 4b) Investment property
• 4c) Investment property under development
• 4d) Property, plant and equipment
• 4i) Impairment
• 4g) Financial instruments

i) Measurement of fair values

Some of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. When measuring the fair value of an asset or a liability, the Group uses market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the following valuation techniques:

• Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities;
• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices);
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Further information about the assumption made in measuring fair values is included in the following notes:

• Note 17. Investment property
• Note 18. Investment property under development
• Note 20. Property, plant and equipment

• Note 31. Derivative financial instruments

• SIGNIFICANT ACCOUNTING POLICIES

The Group has consistently applied the following accounting policies to all periods presented in these consolidated financial statements.

a) Basis of consolidation

i. Subsidiaries

Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern the financial and operating policies of an entity to obtain benefits from its activities. In assessing control, potential voting rights that are exercisable or convertible are considered. The financial statements of subsidiaries are included in these consolidated financial statements from the date that control commences until the date that control ceases. If necessary, subsidiary accounting policies are changed to align with policies adopted by the Group.

The Group acquires subsidiaries that own real estate. At the time of acquisition, the Group considers whether each acquisition represents the acquisition of a business or the acquisition of an asset. The Group accounts for an acquisition as a business combination under IFRS 3, when an integrated set of activities is acquired in addition to the property. More specifically, consideration is made to the extent to which significant processes are acquired and the extent of services provided by the subsidiary. When the acquisition of subsidiaries does not represent a business, it is accounted for as an acquisition of a group of assets and liabilities. The cost of the acquisition is allocated to the assets and liabilities acquired based upon their relative fair values, and no goodwill and deferred tax is recognised.# Significant Accounting Policies

Acquisition of business from companies under common control

A business combination involving entities or businesses under common control is when all combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory. The assets and liabilities acquired under common control are recognised at the carrying amounts in the financial statements of the entities acquired. Any difference between consideration paid and the net book value of assets and liabilities acquired is recognised directly in equity. In the absence of more specific guidance, the Group consistently applies the book value method to account for all common control transactions. The assets and liabilities of the entities, and their income and expenses, for the period in which the common control transaction has occurred and for the comparative period disclosed, are included in the Group’s financial statements as if the common control transaction took place at the beginning of the comparative period.

iii. Business combinations

Business combinations, excluding those commenced between parties under common control, are accounted for by applying the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. The Group measures goodwill at the acquisition date as:
* the fair value of the consideration transferred; plus
* the recognised amount of any non-controlling interests in the acquiree; plus
* if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree; less
* the net amount of the identifiable assets acquired, and liabilities stated at fair value.

Goodwill is tested for impairment if events or changes in circumstances indicate that it might be impaired, and at least annually, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. When the excess is negative (bargain purchase), it is recognised immediately in the consolidated statement of comprehensive income. The Group applies recognition exemption of deferred tax that arises from the initial recognition of an asset or liability in a transaction that is not a business combination. Deferred tax from subsequent asset revaluation is recognised in the consolidated financial statements.

iv. Acquisition of assets via share-based payment

Transaction, where the Group acquires assets in exchange for its shares, is in scope of standard IFRS 2 Share-based payments. Assets received, and the corresponding increase in equity, are measured at the fair value of assets received. That fair value is measured at the date the entity obtains the assets.

v. Non-controlling interest

Non-controlling interests are measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

vi. Loss of control

When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any resulting gain or loss is recognised in profit or loss. If the Group retains any interest in the former subsidiary, such interest is measured at fair value at the date that control is lost.

vii. Changes in the ownership interests in existing subsidiaries

Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Company’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries.

viii. Asset acquisition

Asset acquisitions are the acquisitions of an asset or a group of assets (and liabilities) that do not constitute a business. The Group identifies and recognises individual identifiable assets acquired and liabilities assumed and allocates the cost of the group of the individual identifiable assets and liabilities, based on their relative fair values at the date of the acquisition.

ix. Transactions eliminated on consolidation

Intra-Group balances, and any gains and losses or income and expenses arising from intra-Group transactions, are eliminated in preparing the consolidated financial statements of the Group.

b) Investment property

Investment properties are those held to earn rental income, capital appreciation, or both. Investment property is initially measured at cost and subsequently at fair value, with any change recognised in profit or loss. Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss. An external, independent professional valuer values the investment property portfolio at least annually. The independent valuation report was obtained as at 31 December 2022 and was incorporated into the Group’s IFRS consolidated financial statements. Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. The fair value measurement for all the Group’s investment properties is categorised as Level 3 fair value.

c) Investment property under development

Property being constructed or developed for future use as investment property is classified as investment property under development. This is initially measured at cost and subsequently at fair value, with any change recognised in profit or loss. When construction or development is completed, property is reclassified and subsequently accounted for as investment property. The independent valuation report was obtained as at 31 December 2022. The value of investment property under development was determined by an external, independent professional property valuer. Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Borrowing costs are not capitalised to the value of investment property under development, as almost all development projects are finished within 12 months. The fair value measurement for all investment properties under development is categorised as Level 3 fair value.

d) Property, plant and equipment

(i) Revaluation model

Solar plants, which are completed solar plants that are generating income, and hotels, which represent a minority of the Group’s property portfolio, are classified under property, plant and equipment at revalued amounts, being the fair value at the reporting date. Any gain or loss arising on re-measurement of the Group’s solar plants and hotels is treated as a revaluation, with any gain recorded as part of other comprehensive income, except to the extent that it reverses a previous impairment on the same property, in which case it is recorded in profit or loss. A loss is an expense in profit or loss to the extent to which it is higher than previously recognised revaluation surplus. An external, independent valuer with appropriately recognised professional qualifications and recent experience in the location and category of the solar plant and hotel being valued, values the portfolio of solar plants and hotels at least annually. Depreciation of the solar plants is recognised into profit or loss on a straight-line basis over the estimated useful life of 20 years. Depreciation of the hotels is recognised into profit or loss on a straight-line basis over the estimated useful life of 40 years.

(ii) Cost model

All other buildings, property, plant and equipment are measured at cost less accumulated depreciation and impairment losses (see Note 4i). Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials, direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the initial estimate, where relevant, of the costs of dismantling and removing building items and restoring the building site at which they are located, and an appropriate proportion of production overheads. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance expenses are charged to the income statement during the financial period in which they are incurred. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. The Group recognises in the carrying amount of an item of property, plant and equipment, the cost of replacing part of such an item when that cost is incurred, and it is probable that the future economic benefits embodied with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replace item is derecognised. All other costs are in the statement of comprehensive income as incurred. Depreciation is recognised into profit or loss on a straight-line basis over the estimated useful life of the equipment. The estimated useful life for equipment varies from 3 years to 8 years, and for property and plant between 10 years and 20 years. The Group recognises as part of Property, plant and equipment acquired forests. Forests are considered as bearing plant and are initially measured at cost.Subsequently they are measured at cost less impairment losses.

(iii) Reclassification to Investment property

When the use of a property changes from owner-occupied to investment property, the property is remeasured to fair value and reclassified accordingly. Any gain arising from this remeasurement is recognised in profit or loss to the extent that it reverses a previous impairment loss on the specific property, with any remaining gain recognised in Other Comprehensive Income (“OCI”) and presented in the revaluation reserve. A loss is an expense in profit or loss to the extent to which it is higher than previously recognised revaluation surplus.

e) Assets held for sale

Non-current assets, or disposal groups comprising assets and liabilities, are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. Such assets, or disposal groups, are generally measured at the lower level of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit assets, or investment property, which continue to be measured in accordance with the Group’s other accounting policies. Impairment losses on initial classification as held for sale or held for distribution and subsequent gains and losses on remeasurement are recognised in profit or loss. Once classified as held for sale, intangible assets and property, plant and equipment are no longer amortised or depreciated, and any equity accounted investee is no longer equity accounted.

360 Financial Statements

f) Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a defined period, in exchange for consideration.

• As a lessee
  At the start of a contract, or when a contract change contains a lease component, the Group allocates the consideration in the contract to each lease component based on its relative stand-alone prices. However, for property leases, the Group has elected not to separate non-lease components and accounts for the lease and non-lease components as a single lease component. The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term, or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In such a case, the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by the impairment losses, if any. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of an asset leased. Lease payments included in the measurement of the lease liability comprise the following:

  • fixed payments, including in-substance fixed payments;
  • variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
  • the exercise price under a purchase option that the Group is reasonably certain to exercise;
  • lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and
  • penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.
    Subsequently, the lease liability is measured at amortised cost using an effective interest method. It is remeasured when there is a change in any of above-mentioned lease liability components. In such case, the corresponding adjustment is made to the carrying amount of the right-of-use asset or is posted in profit or loss, if the carrying amount of the right-of-use asset is reduced to zero. The Group presents right-of-use assets that do not meet the definition of investment property in the property, plant and equipment and lease liabilities in trade and other payables in the statement of financial position. The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

• As a lessor
  At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators, such as whether the lease is for a major part of the economic life of the asset. The Group recognises lease payments received under operating leases as income on a straight-line basis over the lease term as part of rental income. Property held under finance leases and leased out under operating leases was classified as investment property and stated at fair value (as described in Note 4b).

g) Financial instruments

(i) Financial assets

Initial recognition and measurement
The financial assets are classified at initial recognition at amortised cost, fair value through other comprehensive income, or fair value through profit or loss. The Group measures financial assets at amortised cost if both conditions below are met, and the financial asset is not designated at fair value through profit and loss:
* the financial asset is held within a business model with the objective to hold it to collect contractual cash flows; and
* the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
All financial assets not classified as measured at amortised cost as described above are measured at fair value through profit or loss. On initial recognition, the Group may irrevocably designate a financial asset, that otherwise meets the requirements to be classified and measured at amortised cost or at fair value through other comprehensive income, to be classified and measured at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise .

361 Financial Statements

Subsequent measurement
For purpose of subsequent measurement, the Group’s financial assets are classified in two categories:

• Financial assets at amortised cost (debt instruments)
  This category is most relevant to the Group and includes trade receivables and loans provided that are subsequently measured at amortised cost using the effective interest method, less any credit losses.

• Financial assets at fair value through profit and loss
  This category includes derivatives. Financial assets are classified as held for trading if they are acquired for the purposes of selling or repurchasing in the future. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value being recognised in the statement of profit or loss.

(ii) Non-derivative financial assets

The Group initially recognises loans and receivables when they are originated. All other financial assets are recognised initially on the trade date upon which the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset. Financial assets and liabilities are offset, and the net amount presented in the statement of financial position, when the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

Loans provided
Loans are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs.# h1 Financial Statements

h2 (iii) Financial liabilities

Financial liabilities are classified as measured at amortised cost or fair value through profit and loss. A financial liability is classified as at fair value through profit and loss if it is classified as held-for trading, it is a derivative, or it is designed as such on initial recognition. Financial liabilities at fair value through profit and loss are measured at fair value, and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.

h2 (iv) Non-derivative financial liabilities

The Group initially recognises debt securities issued and subordinated liabilities on the date they originated. All other financial liabilities (including liabilities designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes party to the contractual provisions of the instrument. The Group derecognises financial liability when its contractual obligations are discharged, cancelled or expire. Non-derivative financial liabilities comprise loans and borrowings, bonds, bank overdrafts, and trade and other payables. Such financial liabilities are recognised initially at fair value less any directly attributable transaction costs. After initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Group classifies as a current portion any part of long-term loans that is due within one year from the reporting date.

h2 (v) Derivative financial instruments

A derivative is a financial instrument or other contract that fulfils the following conditions:
a) its value changes in response to a change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract;
b) it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and
c) it is settled at a future date.

362 Financial Statements

Derivative financial instruments are initially recognised at fair value; attributable transaction costs are recognised in profit or loss as incurred. Following initial recognition, derivatives are measured at fair value, and changes therein are generally recognised in profit and loss. Fair values are obtained from quoted market prices or discounted cash flow models, as appropriate. The derivatives are carried as current (those that are expected to be settled in less than 12 months) or non-current assets when their fair value is positive, and as current (those that are expected to be settled in less than 12 months) or non-current liabilities when their fair value is negative. The principal types of derivative instruments used by the Group are interest rate swaps. Swaps are agreements between the Group and other parties to exchange future cashflows, based upon agreed notional amounts. Under interest rate swaps, the Group agrees with other parties to exchange, at specific intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed notional amount.

h2 (vi) Cash flow hedge

The Group designates certain derivatives as hedging instruments to hedge variability in cash flows associated with highly probable forecast transaction arising from changes in interest rates. At inception of designated hedging relationships, the Group documents the risk management objective and strategy for undertaking the hedge. The Group also documents the economic relationship between the hedged item and hedging instruments, including whether the changes in cash flows of the hedged item and hedging instrument are expected to offset each other. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognised in Other comprehensive income accumulated in the Cash flow hedge reserve. The effective portion of changes in the fair value of the derivative that is recognised in Other comprehensive income is limited to the cumulative change in fair value of the hedged item, determined on a present values basis, from inception of the hedge. Any ineffective portion of changes in the fair values of the derivative is recognised immediately in profit or loss. If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is terminated or is exercised, hedge accounting is discontinued prospectively. When hedge accounting for cash flow hedges is discontinued, the amount that has been accumulated in the Cash flow hedge reserve remains in equity until, for a hedge of a transaction resulting in the recognition of a non-financial item, it is included in the non-financial item’s cost on its initial recognition or, for the cash flow hedges, it is reclassified to profit or loss in the same period or periods as the hedged expected future cash flows affects profit or loss. If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in the Cash flow hedge reserve are immediately reclassified to profit or loss.

h2 h) Contract assets

Contract assets represent work in progress, which relates to the cost of development extras and specific fit-outs for tenants. Contract assets are stated at the lower of cost and net realisable value (being the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale). Where the net realisable value is below cost, contract assets are written down to the lower value and the impairment loss is recorded in the income statement. Costs of contract assets include the purchase price and related costs of acquisition (transport, customs duties, and insurance).

h2 i) Impairment

h3 (i) Non-financial assets

The carrying amounts of the Group’s assets, other than investment property, investment property under development and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. In respect of goodwill, the recoverable amount is estimated at each reporting date. An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. Impairment losses are recognised in profit or loss. An impairment loss in respect of a property, plant and equipment measured at fair value is reversed through profit and loss to the extent that it reverses an impairment loss on the same asset that was previously recognised in profit or loss. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating units (groups of units) and then to reduce the carrying amount of the other assets in the unit (group of units) on a pro-rata basis.

h3 (ii) Financial assets

A financial asset not carried at fair value through profit or loss, including an interest in an equity accounted investee, is assessed at each reporting date to determine whether there is objective evidence that it is credit impaired.# Objective evidence that financial assets are impaired can include default or delinquency by a debtor; restructuring of an amount due to the Group on terms that the Group would not consider otherwise; indications that a debtor will enter bankruptcy; the disappearance of an active market for a security; and observable data indicating that there is a measurable decrease in the expected cash flows from a group of financial assets. The Group considers evidence of impairment for financial assets at both the specific asset and collective level. All individually significant financial assets are assessed for specific impairment. Those found not to be impaired are then collectively assessed for any impairment incurred but not yet identified. Assets that are not individually significant are collectively assessed for impairment, by grouping together receivables with similar risk characteristics.

363 Financial Statements

The Group uses the expected credit loss model (ECLs) for the recognition and measurement of impairment losses. The Group measures loss allowance at an amount equal to lifetime ECLs, except for the following, which are measured at 12-month ECLs:
• provided loans and bank balances for which credit risk (i.e., the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition;
• debt securities that are determined to have low credit risk at the reporting date; and
• other debt securities and bank balances for which credit risk (i.e., the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowances for trade receivables are always measured at an amount equal to the lifetime ECLs. At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit impaired. Financial assets are credit impaired when one or more events have occurred that have a detrimental impact on the estimated future cash flows of the financial asset. Evidence that a financial asset is credit impaired includes the following observable data:
• significant financial difficulty of the borrower or issuer;
• a breach of contract such as a default or being more than 90 days past due;
• the restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise;
• it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
• the disappearance of an active market for a security because of financial difficulties.

The Group first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of credit impairment exists for an individually assessed financial assets, whether significant or not, it includes the assets in a group of financial assets with similar risk characteristics and collectively assesses them for credit impairment. Financial assets that are individually assessed for impairment, and for which an impairment loss is or continues to be recognised, are not included in a collective assessment of impairment.

A significant increase in credit risk represents a significant increase in the risk of default in respect of financial asset as at the reporting date, compared with the risk as at the date of initial recognition. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and informed credit assessment and including forward-looking information. The Group considers a financial asset to be in default when:
- the borrower is unlikely to pay their credit obligations to the Group in full, without recourse by the Group to actions such as realising security (if any is held); or
- the trade or other receivable is more than 365 days past due.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. Twelve-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or shorter period if the expected life of the instrument is less than 12 months). The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of cash shortfalls (i.e., the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

In some cases, the observable data required to estimate the amount of an impairment loss on a financial asset may be limited or no longer fully relevant to current circumstances. This may be the case when a borrower is in financial difficulties and there is little available historical data relating to similar borrowers. In such cases, the Group uses its experience and judgement to estimate the amount of any credit impairment loss. All impairment losses in respect of financial assets are recognised in profit or loss and are only reversed if a subsequent increase in a recoverable amount can be related objectively to an event occurring after the impairment loss was recognised. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount of the asset that would have been determined, net of amortisation, if no impairment loss was recognised. The write-off policy of the Group requires that the outstanding amount of a loan shall be written off if there is any instalment overdue for 730 or more days. However, the loan shall remain in the Group’s statement of financial position even after 730 days of non-payment if it is probable that the loan will be sold in the near future, or significant recoveries are expected. In such case, the outstanding loan amount shall be derecognised at sale, or later, as soon as no significant recoveries are expected. The Group allocates each financial asset’s exposure to a credit risk stage based on data that is determined to be predictive of the risk of loss (including but not limited to external ratings, audited financial statements, management accounts and cash flow projections and available press information about customers) and by applying experienced credit judgement.

j) Reversals of impairment

An impairment loss of non-financial assets is reversed if there is an indication that the loss has decreased or no longer exists and there is a change in the estimates used to determine the recoverable amount. An impairment loss is only reversed to the extent that the carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, had no impairment losses been recognised. Reversal of an impairment loss for goodwill is prohibited.

364 Financial Statements

k) Equity

Issued capital

Issued capital represents the amount of capital registered in the Shareholders Register and is classified as equity. External costs directly attributable to the issuance of share capital, other than upon a business combination, are shown as a deduction from the proceeds, net of tax, in equity.

Share premium

The share premium concerns income from the issuing of shares in so far as it exceeds the nominal value of the shares (above par income). Share premium is presented net of IPO costs incurred in the process of shares emission.

Translation reserve

The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements from the functional to the presentation currency (refer to Note 3f).

Revaluation reserve

Revaluation reserve comprise revaluation of solar plants and hotels, which are classified under property, plant and equipment at revaluated amounts, being the fair value at the reporting date (refer to Note 4d).

Cash flow hedge reserve

The Group has designated certain derivatives as hedging instruments in cash flow hedge relationships. These derivatives are recognised initially at fair value and reported subsequently at fair value in the consolidated statement of financial position. To the extent that the hedge is effective, changes in the fair value of derivatives designated as hedging instruments in cash flow hedges are recognised in other comprehensive income net of tax and included within the cash flow hedge reserve in equity.

Retained earnings

Consolidated retained earnings arise from accumulation of profits and losses of the consolidated activities.

Treasury shares

Treasury shares are deducted from Equity. Gains or losses from purchase, sale, issue or cancellation are recognised in Equity and do not affect profit or loss. The par value of treasury shares purchases is debited to Share capital. When treasury shares are sold or reissued, the par value of instruments is credited to Share capital. Any premium or discount to par value is shown as an adjustment to Share premium.

l) Earnings per share

Earnings per share (EPS) is an important financial indicator that measures the Group’s profitability. Basic EPS is calculated by dividing the net profit for the period attributable to equity holders of the Group by the weighted average number of ordinary shares outstanding during the year.Diluted EPS is calculated by dividing the net profit for the period attributable to equity holders of the Group by the weighted average number of ordinary shares outstanding during the period, plus the weighted average number of shares that would be issued if all dilutive potential ordinary shares were converted into ordinary shares. The denominator in the calculation of basic EPS for each period presented is the weighted average number of shares as at 31 December of the respective year.

m) Share-based payment
Under the CTP N.V. Long Term Incentive Plan (“LTIP”), CTP N.V. provides share-based benefits to Company Directors in the form of conditional share awards over the Company’s ordinary shares. The fair value of the awards granted under the LTIP is recognised as an employee benefits expense, with a corresponding increase in equity (retained earnings). The total amount to be expensed is determined by reference to the fair value of the awards granted, including the impact of any market performance conditions and non-vesting conditions. Service conditions and any non-market performance vesting conditions are considered when estimating the number of awards expected to vest. The total expense is recognised over the vesting period, which is the period over which all specified vesting conditions are to be satisfied. At the end of each period, the Company revises its estimates of the number of awards that are expected to vest, based on the service conditions and the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

n) Government Grants
The Group recognises government grants related to acquisition of solar plants. Grants are presented in the statement of financial position by deducting the grant in arriving at the carrying amount of the asset. The grant is recognised in profit and loss over the life of a depreciable asset as a reduced depreciation expense.

o) Provisions
A provision is recognised in the statement of financial position when the Group has a present legal or constructive obligation because of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

p) Rental income and service charge income
Rental income from leases is recognised as income in the statement of comprehensive income on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income. Park management income (service charge) is an integral, but separately identifiable, part of rental contracts. The Group has identified that park management services are distinct from rentals and are therefore accounted separately. The service charge is priced and contracted based on market prices relevant for the region of operation. The service charge income is recognised evenly over the time of the service rendered as the customer simultaneously receives and consumes the benefits from the provided service. Service and management charges are included in net rental income gross of the related costs. The Group determined that it controls the services before they are transferred to tenants and therefore that the Group acts as a principal in these arrangements.

q) Income from development activities
Revenues from customer specific fit-outs of rented facilities (development extras) are presented separately in the Statement of comprehensive income. Income from development activities includes the initial amount agreed in the contract plus any variations in contract work, claims and incentive payments to the extent that it is probable that they will result in revenue and can be measured reliably. Income from development activities is recognised at point in time.

r) Revenues from sale of properties
Revenue from sale of properties is recognised when the control has passed to the buyer at the amount to which the Group expects to be entitled, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing management involvement with the goods and the amount of revenue can be measured reliably, i.e., on the date on which the application is submitted to the Land Registry for the transfer of legal ownership title. Revenue is measured net of returns, trade discounts and volume rebates. When appropriate, revenue from such sales is deferred until the property is completed and the properties are ready for sale, including the necessary regulatory permissions.

s) Hotel revenues
Revenues from hotel operations represent room rental and sale of food and beverages. Hotel revenues are recognised in profit and loss at the moment, when the customer obtains control over the services provided.

t) Expenses
(i) Attributable external expenses
Attributable external expenses consist of property operating expenses (including service expenses), hotel operating expenses and expenses from development activities.

(ii) Property operating expenses
Property operating expenses (including service expenses) are expensed as incurred.

(iii) Finance income / finance expenses
The Group’s finance income and finance costs include:
* interest income;
* interest expense;
* dividend income;
* the net gain or loss on financial assets at fair value through profit or loss (other than investment property and investment property under development);
* the foreign currency gain or loss on financial assets and financial liabilities;
* the fair value loss on contingent consideration classified as a financial liability;
* impairment losses recognised on financial assets (other than trade receivables);
* the net gain or loss on hedging instruments that are recognised in profit or loss; and
* the reclassification of net gains previously recognised in Other Comprehensive Income.

Interest income or expense is recognised using the effective interest method.

u) Income tax
Income tax comprises current and deferred tax. Income tax is recognised in profit or loss, except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity or other comprehensive income.

Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted by the end of the reporting period, and any adjustment to tax payable in respect of previous years.

Deferred tax
Deferred tax is provided using the liability method on temporary differences arising between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rate enacted or substantially enacted at the reporting date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Corporate income tax rates for 2022 and 2021 were as follows:

Country	2022	2021
Austria	25.00%	25.00%
Czech Republic	19.00%	19.00%
Germany	15.83%	29.48%
Hungary	9.00%	9.00%
Netherlands	25.80%	25.00%
Poland	19.00%	19.00%
Romania	16.00%	16.00%
Serbia	15.00%	15.00%
Slovakia	21.00%	21.00%
Bulgaria	10.00%	10.00%
Slovenia	19.00%	19.00%

Deferred tax is not recognised from temporary differences on the initial recognition of assets and/or liabilities in a transaction that is not a business combination under IFRS 3 (asset deal). Deferred tax assets and liabilities are offset only if certain criteria are met. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes of one entity relate to the same fiscal authority.

v) Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate of local national banks at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into the functional currency at the exchange rate when the fair value was determined. Foreign currency differences are generally recognised in profit or loss. Non-monetary items that are measured based on historical cost in a foreign currency are not translated.

Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into euro at exchange rates at the reporting date. The income and expenses of foreign operations are translated into euros at the exchange rates at the dates of the transactions. Foreign currency differences are recognised in Other Comprehensive Income and accumulated in the translation reserve, except to the extent that the translation difference is allocated to non-controlling interest (“NCI”).w) Segment reporting

The Group has applied IFRS 8, “Operating Segments” to determine the number and type of operating segments. According to this standard, an operating segment is a component carrying out business operations whose operating income is evaluated regularly by the Group’s highest executive decision maker, and about which separate financial informa- tion is available. The results of the Group are reviewed by the CEO regularly on a weekly basis, by analysing KPIs of geographical segments where the Group operates. The Group’s operating segments were determined in connection with the nature of the business and how the operations are managed by the Group’s operating decision maker. The Group reports operating seg- ments based on geographical segmentation: the Czech Republic, Roma- nia, Hungary, Slovakia, the Netherlands, Germany and other areas. The hotel segment in the Czech Republic is presented separately. Segment results reported to the Board include items directly attributable to a segment. The operating segments are determined based on the Group’s man- agement and internal reporting structure. As required by IFRS 8, the Group provides information on the business activities in which it engag- es, including revenue and investment property split.

5. SEGMENT REPORTING

The principal operation of the Group is the lease of investment proper- ty in Western, Central and Eastern Europe, and development in these countries. The Group manages its activities based on geographical segmentation, as business activities are the same in each region where the Group operates. The Group’s principal activities are in the following operating segments: the Czech Republic, Romania, Hungary, Slovakia, the Netherlands, Ger- many, Other geographical segments and Hotel segment. The Group operates three hotels under the “Courtyard by Marriott” brand in the Czech Republic (Prague Airport, Pilsen and Brno), with management agreements with a third party, and presented in the Hotel segment.

Segment Description	Czech Republic	Hungary	Romania	Slovakia	Netherlands	Germany	Other segments	Hotel segment
	Industrial property, offices, retail, other	Industrial property	Industrial property	Industrial property, offices	Industrial property	Industrial property, offices	Other segments which do not meet criteria for segment reporting recognition	Operation of three hotels in the Czech Republic

367

Financial Statements

Segment results for the 12-month period ended 31 December 2022 are as follows:

In EUR thousand

Segment	Czech Republic	Hungary	Romania	Slovakia	Netherlands	Germany	Other	Hotel segment	Total Segments	Intersegment eliminations	Total
Rental income	230,301	48,978	84,013	37,118	2,990	58,512	23,105	--	485,017	--	485,017
Service charge income	17,816	6,400	10,747	4,407	--	11,121	1,384	--	51,875	--	51,875
Property operating expenses	-32,581	-7,150	-9,030	-5,174	-229	-27,714	-2,448	-432	-84,758	--	-84,758
Net rental income	215,536	48,228	85,730	36,351	2,761	41,919	22,041	-432	452,134	--	452,134
Hotel operating revenue	--	--	--	--	--	--	--	16,021	16,021	--	16,021
Hotel operating expenses	--	--	--	--	--	--	--	-12,280	-12,280	--	-12,280
Net operating income from hotel operations	--	--	--	--	--	--	--	3,741	3,741	--	3,741
Income from development activities	19,393	1,931	6,297	316	--	--	8,263	--	36,200	--	36,200
Expenses from development activities	-14,198	-1,680	-4,388	-175	--	--	-6,717	--	-27,158	--	-27,158
Net income from development activities	5,195	251	1,909	141	--	--	1,546	--	9,042	--	9,042
Total revenues	267,510	57,309	101,057	41,841	2,990	69,633	32,752	16,021	589,113	--	589,113
Total attributable external expenses	-46,779	-8,830	-13,418	-5,349	-229	-27,714	-9,165	-12,712	-124,196	--	-124,196
Gross profit	220,731	48,479	87,639	36,492	2,761	41,919	23,587	3,309	464,917	--	464,917
Net valuation result on investment property	394,372	46,434	67,238	18,412	14,761	-3,687	186,050	--	723,580	--	723,580
Other income	16,704	16	206	484	3,959	381	482	--	22,232	-14,050	8,182
Amortisation and depreciation	-9,010	-272	-413	-168	-52	-298	-516	--	-10,729	--	-10,729
Employee benefits	-21,010	-3,385	-5,803	-2,807	-4,561	-1,238	-4,902	--	-43,706	--	-43,706
Impairment of financial assets	314	--	--	19	875	59	-42	--	1,225	--	1,225
Other expenses	-23,135	-4,807	-9,138	-3,324	-14,353	-10,141	-8,703	-33	-73,634	14,050	-59,584
Net other income/expenses	-36,137	-8,448	-15,148	-5,796	-14,132	-11,237	-13,681	-33	-104,612	--	-104,612
Net profit/loss before finance costs	578,966	86,465	139,729	49,108	3,390	26,995	195,956	3,276	1,083,885	--	1,083,885
Interest income	1,351	196	--	166	90,718	733	112	42	93,318	-89,083	4,235
Interest expense	-36,092	-15,078	-29,967	-6,771	-56,074	-10,645	-18,531	-869	-174,027	89,083	-84,944
Other financial expenses	-54	-66	-75	-208	-16,098	-1,010	-274	-154	-17,939	--	-17,939
Other financial gains/losses	30,686	40,848	-183	--	-35,251	-899	-284	56	34,973	-32,942	2,031
Net finance costs	-4,109	25,900	-30,225	-6,813	-16,705	-11,821	-18,977	-925	-63,675	-32,942	-96,617
Profit/loss before income tax	574,857	112,365	109,504	42,295	-13,315	15,174	176,979	2,351	1,020,210	-32,942	987,268
Income tax expense	-115,700	-8,387	-20,549	-9,428	1,966	-5,841	-32,540	-264	-190,743	--	-190,743
Profit for the period	459,157	103,978	88,955	32,867	-11,349	9,333	144,439	2,087	829,467	-32,942	796,525
Profit attributable to:
Non-controlling interests	--	--	--	--	--	1,876	--	--	1,876	--	1,876
Equity holders of the Company	459,157	103,978	88,955	32,867	-11,349	7,457	144,439	2,087	827,591	-32,942	794,649

368

Financial Statements

Segment assets and liabilities as at 31 December 2022 are as follows:

In EUR thousand

Segment	Czech Republic	Hungary	Romania	Slovakia	Netherlands	Germany	Other	Hotel segment	Total Segments	Intersegment eliminations	Total
Assets
Investment property	5,181,043	946,437	1,577,581	660,873	148,430	918,110	691,711	--	10,124,185	--	10,124,185
Investment property under development	187,330	98,371	58,250	76,636	298,798	2,097	471,861	--	1,193,343	--	1,193,343
Property, plant and equipment	87,252	4,653	8,782	2,135	1,273	3,347	1,950	59,513	168,905	--	168,905
Intangible assets	3,274	--	4	--	199	--	8	7	3,492	--	3,492
Trade and other receivables	5,762	6,644	1,532	1,921	40	175	1,940	--	18,014	--	18,014
Derivative financial instruments	--	3,277	--	--	4,315	1,573	--	--	9,165	--	9,165
Financial investments	578,205	7	--	--	2,503,939	--	--	--	3,082,151	-3,081,692	459
Long-term receivables from related parties	4,046	--	--	--	3,841,866	--	--	--	3,845,912	-3,800,667	45,245
Deferred tax assets	8,151	2,116	13	--	4,874	--	2,473	224	17,851	--	17,851
Total non-current assets	6,055,063	1,061,505	1,646,162	741,565	6,803,734	925,302	1,169,943	59,744	18,463,018	-6,882,359	11,580,659
Trade and other receivables	52,897	23,327	40,509	9,954	6,268	13,952	86,789	1,888	235,584	--	235,584
Short-term receivables from related parties	1,001,384	64,765	--	--	42,286	--	--	--	1,108,435	-1,108,103	332
Derivative financial instruments	--	1,872	--	--	39,773	236	--	--	41,881	--	41,881
Contract assets	2,487	--	530	--	--	--	340	47	3,404	--	3,404
Current income tax receivable	4,510	239	653	--	23	88	662	--	6,175	--	6,175
Cash and cash equivalents	56,742	38,290	17,279	7,128	476,532	33,877	24,802	5,981	660,631	--	660,631
Total current assets	1,118,020	128,493	58,971	17,082	564,882	48,153	112,593	7,916	2,056,110	-1,108,103	948,007
Total assets	7,173,083	1,189,998	1,705,133	758,647	7,368,616	973,455	1,282,536	67,660	20,519,128	-7,990,462	12,528,666
Total equity	4,260,790	524,178	537,735	329,425	1,773,588	580,045	321,945	38,503	8,366,209	-3,081,692	5,284,517
Liabilities
Interest-bearing loans and borrowings from financial institutions	977,442	55,594	--	109,519	563,920	161,654	--	--	1,868,129	--	1,868,129
Bond issued	--	--	--	--	3,544,077	19,711	--	--	3,563,788	--	3,563,788
Trade and other payables	35,917	12,064	10,579	1,453	11,413	26,288	3,057	3,181	103,952	--	103,952
Long-term payables to related parties	1,074,646	540,371	1,018,690	237,486	--	113,950	798,720	16,807	3,800,670	-3,800,667	3
Derivative financial instruments	--	--	--	--	--	2,018	--	--	2,018	--	2,018
Deferred tax liabilities	684,746	36,586	80,402	55,852	6,303	3,991	43,649	2,326	913,855	--	913,855
Total non-current liabilities	2,772,751	644,615	1,109,671	404,310	4,125,713	327,612	845,426	22,314	10,252,412	-3,800,667	6,451,745
Interest-bearing loans and borrowings from financial institutions	9,453	2,794	--	--	148	12,335	--	--	24,730	--	24,730
Bonds issued	--	--	--	--	417,191	371	--	--	417,562	--	417,562
Trade and other payables	116,120	15,198	35,014	20,982	9,808	47,755	72,929	3,111	320,917	--	320,917
Short-term payables to related parties	10,574	1,857	21,292	3,153	1,028,052	1,701	37,787	3,687	1,108,103	-1,108,103	--
Derivative financial instruments	--	--	--	--	12,112	565	--	--	12,667	--	12,667
Current income tax payables	3,395	1,356	1,421	777	2,004	3,071	4,449	45	16,518	--	16,518
Total current liabilities	139,542	21,205	57,727	24,912	1,469,315	65,798	115,165	6,843	1,900,507	-1,108,103	792,404
Total liabilities	2,912,293	665,820	1,167,398	429,222	5,595,028	393,410	960,591	29,157	12,152,919	-4,908,770	7,244,149
Total equity and liabilities	7,173,083	1,189,998	1,705,133	758,647	7,368,616	973,455	1,282,536	67,660	20,519,128	-7,990,462	12,528,666

369

Financial Statements

Segment results for the## 370 Financial Statements

Segment revenues and expenses for the 12-month period ended 31 December 2021 are as follows:

In EUR thousand

	Czech Republic	Hungary	Romania	Slovakia	Netherlands	Germany	Other	Hotel segment	Total Segments	Intersegment eliminations	Total
Rental income	204,345	31,110	60,491	25,821	--	708	12,176	--	334,651	--	334,651
Service charge income	15,691	3,888	7,957	2,802	--	--	774	--	31,112	--	31,112
Property operating expenses	-20,563	-5,955	-6,679	-4,240	-115	-49	-1,110	-199	-38,910	--	-38,910
Net rental income	199,473	29,043	61,769	24,383	-115	659	11,840	-199	326,853	--	326,853
Hotel operating revenue	--	--	--	--	--	--	--	8,779	8,779	--	8,779
Hotel operating expenses	--	--	--	--	--	--	--	-11,334	-11,334	--	-11,334
Net operating income from hotel operations	--	--	--	--	--	--	--	-2,555	-2,555	--	-2,555
Income from development activities	22,250	1,104	--	720	--	--	8,750	--	32,824	--	32,824
Expenses from development activities	-15,733	-738	--	-386	--	--	-6,602	--	-23,459	--	-23,459
Net income from development activities	6,517	366	--	334	--	--	2,148	--	9,365	--	9,365
Total revenues	242,286	36,102	68,448	29,343	--	708	21,700	8,779	407,366	--	407,366
Total attributable external expenses	-36,296	-6,693	-6,679	-4,626	-115	-49	-7,712	-11,533	-73,703	--	-73,703
Gross profit	205,990	29,409	61,769	24,717	-115	659	13,988	-2,754	333,663	--	333,663
Net valuation result on investment property	733,943	123,310	110,458	100,271	-8,360	-2,886	43,835	--	1,100,571	--	1,100,571
Other income	16,836	120	440	264	1,560	27	333	21	19,601	-9,156	10,445
Amortisation and depreciation	-7,622	-160	-329	-62	-18	--	-256	--	-8,447	--	-8,447
Employee benefits	-13,415	-3,335	-4,529	-1,955	-6,083	--	-2,566	--	-31,883	--	-31,883
Impairment of financial assets	-466	--	-691	79	--	--	--	--	-1,078	--	-1,078
Other expenses	-13,732	-3,858	-5,681	-1,761	-3,272	-2,064	-5,234	-17	-35,619	9,156	-26,463
Net other income/expenses	-18,399	-7,233	-10,790	-3,435	-7,813	-2,037	-7,723	4	-57,426	--	-57,426
Net profit/loss before finance costs	921,534	145,486	161,437	121,553	-16,288	-4,264	50,100	-2,750	1,376,808	--	1,376,808
Interest income	36	3	--	--	63,513	--	--	78	63,630	-61,637	1,993
Interest expense	-46,528	-8,400	-25,623	-5,897	-39,260	-32	-6,082	-698	-132,520	61,637	-70,883
Other financial expenses	-14,082	-2,451	-3,924	-229	-17,220	-12	-128	-74	-38,120	--	-38,120
Other financial gains/losses	-2,142	12,410	1,065	-8	-3,592	--	-936	95	6,892	--	6,892
Net finance costs	-62,716	1,562	-28,482	-6,134	3,441	-44	-7,146	-599	-100,118	--	-100,118
Profit/loss before income tax	858,818	147,048	132,955	115,419	-12,847	-4,308	42,954	-3,349	1,276,690	--	1,276,690
Income tax expense	-183,169	-13,743	-21,868	-24,636	5,692	105	-13,661	526	-250,754	--	-250,754
Profit for the period	675,649	133,305	111,087	90,783	-7,155	-4,203	29,293	-2,823	1,025,936	--	1,025,936
Profit attributable to:
Non-controlling interests	--	--	--	--	--	--	--	--	--	--	--
Equity holders of the Company	675,649	133,305	111,087	90,783	-7,155	-4,203	29,293	-2,823	1,025,936	--	1,025,936

371 Financial Statements

Segment assets and liabilities as at 31 December 2021 are as follows:

In EUR thousand

	Czech Republic	Hungary	Romania	Slovakia	Netherlands	Germany	Other	Hotel segment	Total Segments	Intersegment eliminations	Total
Total Assets
Investment property	4,517,045	758,453	1,326,691	595,995	62,091	8,813	306,019	--	7,575,107	--	7,575,107
Investment property under development	201,175	89,334	62,950	48,621	285,095	--	87,028	--	774,203	--	774,203
Property, plant and equipment	46,280	662	659	223	219	2,725	944	--	59,255	110,967	110,967
Intangible assets	2,038	--	1	--	41	--	27	4	2,111	--	2,111
Trade and other receivables	51,494	10,745	1,123	2,763	242	--	34,372	--	100,739	--	100,739
Derivative financial instruments	--	126	--	--	--	--	--	--	126	--	126
Financial investments	373,742	--	--	--	1,487,691	--	--	--	1,861,433	-1,860,988	445
Long-term receivables from related parties	4,458	--	--	--	3,523,976	--	--	--	3,528,434	-3,481,310	47,124
Deferred tax assets	10,709	71	2,008	1,368	7,595	--	1,858	443	24,052	--	24,052
Total non-current assets	5,206,941	859,391	1,393,432	648,970	5,366,950	11,538	430,248	59,702	13,977,172	-5,342,298	8,634,874
Trade and other receivables	44,137	19,631	24,680	12,282	17,701	485	24,053	1,113	144,082	--	144,082
Short-term receivables from related parties	7,337	--	--	1,881	24,535	--	--	--	33,753	-33,225	528
Derivative financial instruments	--	46	--	--	--	--	--	--	46	--	46
Contract assets	7,011	--	--	--	--	--	--	28	7,039	--	7,039
Current income tax receivable	5,732	73	1,046	159	10	--	240	--	7,260	--	7,260
Assets held for sale	--	--	--	--	--	--	--	--	--	--	--
Cash and cash equivalents	30,721	59,545	6,302	5,386	772,807	2,061	11,665	4,329	892,816	--	892,816
Total current assets	94,938	79,295	32,028	19,708	815,053	2,546	35,958	5,470	1,084,996	-33,225	1,051,771
Total assets	5,301,879	938,686	1,425,460	668,678	6,182,003	14,084	466,206	65,172	15,062,168	-5,375,523	9,686,645
Total equity	2,379,119	350,842	473,608	275,803	2,383,634	671	69,435	34,706	5,967,818	-1,860,988	4,106,830
Liabilities
Interest-bearing loans and borrowings from financial institutions	587,663	58,380	--	89,385	373,077	1,966	--	--	1,110,471	--	1,110,471
Bond issued	--	--	--	--	3,368,202	--	--	--	3,368,202	--	3,368,202
Trade and other payables	24,047	10,462	11,829	1,169	10,762	--	2,941	3,381	64,591	--	64,591
Long-term payables to related parties	1,566,880	467,679	841,305	232,174	15	7,786	346,677	18,812	3,481,328	-3,481,310	18
Derivative financial instruments	--	--	--	--	--	--	--	--	--	--	--
Deferred tax liabilities	579,754	29,526	65,597	50,329	2,581	899	15,820	2,267	746,773	--	746,773
Total non-current liabilities	2,758,344	566,047	918,731	373,057	3,754,637	10,651	365,438	24,460	8,771,365	-3,481,310	5,290,055
Interest-bearing loans and borrowings from financial institutions	3,587	2,780	--	3,926	10,088	452	--	--	20,833	--	20,833
Bonds issued	--	--	--	--	13,490	--	--	--	13,490	--	13,490
Trade and other payables	152,248	13,853	25,078	14,237	16,707	594	12,691	1,740	237,148	--	237,148
Short-term payables to related parties	--	4,152	7,450	787	--	505	16,139	4,192	33,225	-33,225	--
Derivative financial instruments	--	--	--	--	--	--	--	--	--	--	--
Current income tax payables	8,581	1,012	593	868	3,447	1,211	2,503	74	18,289	--	18,289
Provisions	--	--	--	--	--	--	--	--	--	--	--
Total current liabilities	164,416	21,797	33,121	19,818	43,732	2,762	31,333	6,006	322,985	-33,225	289,760
Total liabilities	2,922,760	587,844	951,852	392,875	3,798,369	13,413	396,771	30,466	9,094,350	-3,514,535	5,579,815
Total equity and liabilities	5,301,879	938,686	1,425,460	668,678	6,182,003	14,084	466,206	65,172	15,062,168	-5,375,523	9,686,645

371 Financial Statements

6. CHANGES IN GROUP STRUCTURE

Current financial year

Acquisitions

In 2022, the Group acquired the following subsidiaries:

Subsidiary	Country	Acquisition date
Deutsche Industrie Grundbesitz AG	Germany	3 February 2022
KONČINY SPV, s.r.o.	Czech Republic	14 March 2022
CTP Tau Poland sp. z o.o. (formerly Dafne 23 sp. z o.o)	Poland	9 May 2022
CTP Chi Poland sp. z o.o. (formerly 7R Projekt 37 sp. z o.o.)	Poland	9 May 2022
CTP Omega Poland sp. z o.o. (formerly 7R Projekt 31 sp. z o.o.)	Poland	9 May 2022
CTP Property Alpha Poland sp. z o.o. (formerly 7R Projekt 68 sp. z o.o.)	Poland	9 May 2022
CTP Property Beta Poland sp. z o.o. (formerly 7R Projekt 64 Sp. z o.o.)	Poland	9 May 2022
CTP Property Gamma Poland sp. z o.o. (formerly 7R Projekt 30 sp. z o.o.)	Poland	9 May 2022
CTPARK CHITILA SRL (formerly Eglast Investment SRL)	Romania	20 May 2022
CTPARK PITESTI SRL (formerly Dani Global Development SRL)	Romania	20 May 2022
CTP Property Delta Poland sp. z o.o. (formerly 7R Projekt 41 sp. z o.o.)	Poland	7 June 2022
CTP Property Epsilon Poland sp. z o.o. (formerly 7R Projekt 44 sp. z o.o.)	Poland	14 June 2022
Banovac projekat d.o.o. Beograd-Novi Beograd	Serbia	5 July 2022
CTPark Sofia Ring Road EOOD (formerly Transcapital Ring Road EOOD)	Bulgaria	17 August 2022
CTPark Sofia EOOD (formerly Transcapital Airport EOOD)	Bulgaria	17 August 2022
LEVANTE LOGISTICS DRUŠTVO SA OGRANIČENOM ODGOVORNŠĆU BEOGRAD	Serbia	31 August 2022
KRMELÍNSKÁ I, s.r.o.	Czech Republic	30 September 2022
CTP Property Eta Poland sp. z o.o. (formerly 7R Projekt 56 sp. z o.o.)	Poland	20 October 2022
CTP Property Zeta Poland sp. z o.o. (formerly 7R Projekt 24 sp. z o.o.)	Poland	20 October 2022

These acquisitions impacted Group financial statements as follows:

In EUR thousand

	Deutsche Industrie Grundbesitz AG	Germany	Czech Republic	Poland	Romania	Serbia	Bulgaria	Total
Total assets	973,126	8,801	170,461	13,059	1,115	64,082	1,230,644
Investment property	850,291	8,754	111,604	12,416	1,056	62,004	1,046,125
Investment property under development	--	--	42,427	18	--	696	43,141
Property, plant & equipment	245	--	22	--	--	--	267
Intangible assets	3	--	--	--	--	1	4
Cash and cash equivalents	11,031	17	2,828	554	57	1,090	15,577
Deferred tax asset	--	--	--	--	--	59	59
Financial derivatives	125	--	--	--	--	--	125
Asset held for sale	7,300	--	--	--	--	--	7,300
Trade and other receivables	104,131	30	13,580	71	2	232	118,046
Total assets	973,126	8,801	170,461	13,059	1,115	64,082	1,230,644
Total liabilities	-403,353	-310	-8,628	-299	-13	-926	-413,529
Interest-bearing loans and borrowings from financial institutions	-232,991	--	--	--	--	--	-232,991
Bond issued	-140,026	--	--	--	--	--	-140,026
Financial derivatives	-36	--	--	--	--	--	-36
Trade and other liabilities	-30,300	-310	-8,628	-299	-13	-926	-40,476
Non-controlling interest	-95,943	--	--	--	--	--	-95,943
Net assets acquired	473,830	8,491	161,833	12,760	1,102	63,156	721,172
Consideration paid *	-77,612	-8,491	-159,820	-12,760	-1,102	-63,156	-322,941
Consideration not settled till period end	--	--	-2,013	--	--	--	-2,013
Consideration settled by shares of CTP N.V.	-396,217	--	--	--	--	--	-396,217
Net cash outflow	-66,581	-8,474	-156,992	-12,206	-1,045	-62,066	-307,364

• Consideration paid includes also the loans and borrowings provided to acquired subsidiaries of EUR 194,843 thousand.The acquisitions were recognised as a property asset acquisition, as acquired companies do not represent a business as defined by IFRS 3.

Financial Statements

In 2022, the only significant acquisition was acquisition of Deutsche Industrie REIT-AG in Germany, described in detail below.

Acquisition of Deutsche Industrie REIT-AG (subsequently renamed to Deutsche Industrie Grundbesitz AG)

On 28 January 2022, the Group received 98.17% shareholder support for its voluntary public takeover and delisting offer (the “Offer”) for and contemplated merger with Deutsche Industrie REIT-AG (currently CTP Gemany B.V.) (“DIR”). The total number of DIR Shares tendered in the Offer was in aggregate 25,951,833 DIR Shares, corresponding to approximately 80.90% of the outstanding share capital in DIR.

Closing and settlement of the Offer, in which CTP offered either a cash consideration of EUR 17.12 or a share consideration of 1.25 shares in the share capital of CTP (the “CTP Shares”) for each tendered DIR Share (the “Share Consideration”), took place on 3 February 2022. During the acceptance period, a total of 25,937,060 tendered DIR Shares were settled in form of the Share Consideration. Accordingly, a total of 32,421,325 CTP Shares were issued.

Acquisition of DIR is not considered to be a business combination, but acquisition of assets in exchange for shares of CTP N.V. and therefore, this transaction is in scope of IFRS 2. Assets and liabilities acquired are measured at fair value and are equal to the related increase in equity.

On 23 August 2022, CTP N.V. and Deutsche Industrie Grundbesitz AG entered into a transaction for a cross-border merger. Assets and liabilities of Deutsche Industrie Grundbesitz AG were transferred to CTP N.V. under universal succession of title, and Deutsche Industrie Grundbesitz AG ceased to exist without liquidation. In accordance with the agreed exchange ratio, CTP allotted for each issued and outstanding DIR share, 1.25 shares in CTP’s share capital to each holder of shares, resulting in the allotment of 7,659,590 new shares. Shares of DIR in ownership of non-controlling interest, were transferred into shares of CTP N.V. For detail refer to Note 23.

On 1 November 2022, all assets and liabilities of former Deutsche Industrie Grundbesitz AG were transferred through a hive down by way of legal partial division from CTP N.V. to a new subsidiary, CTP Germany B.V.

Changes within the Group

On 1 January 2022, the entities CTPark Bor II, spol. s r.o. and CTPark Bor III, spol. s r.o. were incorporated by spin-off from CTP Alpha, spol. s r.o. Part of the assets were transferred from CTP Alpha, spol, s r.o., to these entities according to the project prepared on 16 November 2021. CTPark Bor III, spol. s r.o. was transferred from CTP Industrial Property, spol. s r.o., to CTPark Bor, spol. s r.o. on 21 February 2022. Subsequently CTPark Bor III, spol. s r.o. was merged into CTPark Bor, spol. s r.o. on 23 September 2022. RENWON a.s. was transferred from CTP Bohemia North, spol. s r.o. to CTP Property B.V. and was renamed to CTPark Chrastava a.s. on 22 August 2022.

In 2022, the Group wound up subsidiaries CTP Property Serbia, spol. s.r.o., CTP Beta, spol. s r.o. v likvidaci and CTP I, spol. s r.o. v likvidaci.

In September 2022, assets and liabilities of CTP Germany III GmbH and CTP Germany IV GmbH & Co. KG were transferred to CTP Germany II GmbH via a merger transaction, and both entities ceased to exist without liquidation. The transaction was common control transaction with impact on Equity of EUR 1,082 thousand.

In November 2022, newly acquired entity Banovac projekat d.o.o. Beograd-Novi Beograd was merged into CTP Omicron d.o.o. Beograd-Novi Beograd.

In December 2022, newly acquired entity LEVANTE LOGISTICS DRUŠTVO SA OGRANIČENOM ODGOVORNŠĆU BEOGRAD was merged into CTP Tau d.o.o. Beograd-Novi Beograd.

All above changes within the Group does not have material impact on consolidated financial statements.

Prior financial year

In 2021, the Group acquired the following subsidiaries:

Subsidiary	Country	Acquisition date
Amsterdam Logistic Cityhub B.V.	Netherlands	12 August 2021
CTP Mu B.V.	Netherlands	29 December 2021
CTPark Námestovo, spol. s r.o.	Slovakia	22 December 2021
Office Campus Real Estate Kft.	Hungary	23 June 2021
CTPark Twenty Three Kft.	Hungary	25 November 2021
CTPark Twenty Five Kft.	Hungary	23 December 2021
CTPark Twenty Six Kft.	Hungary	23 December 2021
CTPark Twenty Seven Kft.	Hungary	23 December 2021
CTPark Twenty Four Kft.	Hungary	31 December 2021
CTPark Oradea North SRL	Romania	9 September 2021
CTPark Arad North SRL	Romania	9 September 2021
CTPark Sibiu East SRL	Romania	9 September 2021
CTPark Craiova East SRL	Romania	9 September 2021
CTPark Bucharest South II SRL	Romania	30 September 2021
CTPark Brasov West SRL	Romania	30 September 2021
CTPark Timisoara East SRL	Romania	30 September 2021
CTPark Brasov SRL	Romania	30 September 2021
Project Vrajdebna EOOD	Bulgaria	2 August 2021
CTPark Kappa EOOD	Bulgaria	9 August 2021
CTPark Lambda EOOD	Bulgaria	30 September 2021
PŘÍDÁNKY SPV, s.r.o.	Czech Republic	29 June 2021
RENWON a.s.	Czech Republic	16 August 2021
CTP Property Alpha d.o.o. Beograd-Novi Beograd	Serbia	3 March 2021

Financial Statements

These acquisitions impacted Group financial statements as follows:

In EUR thousand	Netherlands	Slovakia	Romania	Hungary	Bulgaria	Czech Republic	Serbia	Total
Investment property	37,285	80,795	147,120	111,949	38,046	25,257	20,031	460,483
Investment property under development	213,131	1,130	10,522	19,255	--	--	--	244,038
Property, plant & equipment	--	--	1	--	--	--	--	1
Intangible assets	12	--	--	--	--	--	--	12
Cash and cash equivalents	1,422	906	57,422	5,935	880	467	11	67,043
Deferred tax asset	12	1,368	--	--	24	--	--	1,404
Trade and other receivables	64	4,358	5,978	2,649	226	326	2	13,603
Total assets	251,926	88,557	221,043	139,788	39,176	26,050	20,044	786,584
Interest-bearing loans and borrowings from financial institutions	--	-26,292	-39,575	--	--	--	--	-65,867
Deferred tax liability	-2,121	--	--	--	--	--	--	-2,121
Trade and other liabilities	-9,684	-1,531	-20,282	-2,471	-67	-170	-22	-34,227
Total liabilities	-11,805	-27,823	-59,857	-2,471	-67	-170	-22	-102,215
Net assets acquired	240,121	60,734	161,186	137,317	39,109	25,880	20,022	684,369
Consideration paid *	-199,107	-60,734	-138,582	-137,317	-39,109	-24,740	-20,022	-619,611
Consideration not settled till period end	-41,014	--	-22,604	--	--	-1,140	--	-64,758
Net cash outflow	-197,685	-59,828	-81,160	-131,382	-38,229	-24,273	-20,011	-552,568

* Consideration paid includes also the loans and borrowings provided to acquired subsidiaries of EUR 255,351 thousand.

The following significant transactions took place in 2021:

In EUR thousand	Amsterdam Logistic Cityhub B.V. (NL)	CTP Mu B.V. (NL)	CTPark Námestovo, spol. s r.o. (SK)
Investment property	--	37,285	80,795
Investment property under development	213,131	--	1,130
Property, plant & equipment	--	--	--
Intangible assets	12	--	--
Cash and cash equivalents	1,422	--	906
Deferred tax asset	12	--	1,368
Trade and other receivables	65	--	4,358
Total assets	214,641	37,285	88,556
Interest-bearing loans and borrowings from financial institutions	--	--	-26,292
Deferred tax liability	--	-2,121	--
Trade and other liabilities	-9,521	-163	-1,530
Total liabilities	-9,521	-2,284	-27,822
Net assets acquired	205,120	35,001	60,734
Consideration paid	-164,106	-35,001	-60,734
Consideration not settled till period end	-41,014	--	--
Net cash outflow	-162,685	-35,001	-59,827

The acquisitions were recognised as a property asset acquisition, as acquired companies do not represent a business as defined by IFRS 3.

During 2021, the subsidiaries CTPark České Budějovice, spol. s r.o. and CTPark České Budějovice II, spol. s r.o. were disposed of for a EUR 8,950 thousand consideration.

Financial Statements

7. GROSS RENTAL INCOME

In EUR thousand	2022	2021
Industrial	424,727	287,328
Office	32,923	32,531
Retail	1,062	568
Other	26,305	14,224
Total rental income	485,017	334,651
Service charge income	51,875	31,112
Total gross rental income	536,892	365,763

CTP leases out its investment property under operating leases. The operating leases are generally for 5 to 15 years. Other gross rental income represents termination fees, rental income from rent of parking slots, garages, yards, porches and cloakrooms. Service charge income represents fixed contractual income receivable from tenants for maintenance, cleaning, security, garbage management and usage of infrastructure.

Revenues were generated in the following countries where CTP operates:

In EUR thousand	2022	2021
Czech Republic	248,117	220,036
Romania	94,760	68,448
Germany	69,633	708
Hungary	55,378	34,998
Slovakia	41,525	28,623
Serbia	13,064	8,560
Bulgaria	7,117	1,729
Poland	4,122	2,510
Netherlands	2,990	--
Austria	152	151
Slovenia	34	--
Total gross rental income	536,892	365,763

Financial Statements

8. REVENUES FROM CONTRACTS WITH CUSTOMERS

According to IFRS 15 requirements, revenues related to contracts with customers are as follows:

In EUR thousand	2022	2021
	Revenues	Attributable external expenses
Hotel operating revenue	16,021	8,779
Hotel operating expenses	-12,280	-11,334
Net operating income from hotel operations	3,741	-2,555
Income from development activities	36,200	32,824
Expenses from development activities	-27,158	-23,459
Net income from development activities	9,042	9,365
Total revenues from contract with customers	52,221	41,603
Total external expenses related to contract with customers	-39,438	-34,793
Net income from contract with customers	12,783	6,810

Net operating income from hotel operations

Net operating income from hotel operations is represented by revenues and expenses from the operation of three hotels in the Czech Republic. All hotels are operated under the “Courtyard by Marriott” brand.9. PROPERTY OPERATING EXPENSES

In EUR thousand	2022	2021
Maintenance and repairs	-41,314	-21,383
Park Management expenses	-27,673	-8,424
Real estate tax	-10,450	-6,143
Insurance	-5,064	-2,342
Other	-257	-618
Total property operating expenses	-84,758	-38,910

Park management expenses represent expenses for utilities, park maintenance, cleaning, security and garbage management provided by external suppliers. These expenses are covered by service charges charged to the tenants.

In 2022, the increase in Park management expenses represents mainly increase in utilities, facility management and other external services, such as cleaning, security services and other. In 2022, the significant increase in repairs and maintenance is connected mainly with the German and Czech portfolios.

1. OTHER INCOME

In EUR thousand	2022	2021
Gains from sale of assets	881	2,963
Income from sale of electricity	4,301	3,236
Other income	3,000	4,246
Total other income	8,182	10,445

Other income was mainly from reverse charge from property insurance and income from assigned receivables.

1. EMPLOYEE BENEFITS

In EUR thousand	2022	2021
Wages and salaries	-32,395	-24,140
Social security contributions	-5,878	-4,604
Other personnel expenses	-5,433	-3,139
Total employee benefits	-43,706	-31,883

The average full-time equivalent of employees in 2022 was 634 (2021 – 463); all except 15 (2021 – 7) are working outside the Netherlands.

Weighted average number of employees per segments	2022	2021
Czech Republic	298	258
Romania	95	75
Hungary	66	55
Slovakia	70	36
Netherlands	15	7
Germany	11	--
Other	79	32
Total employee number	634	463

The number of full-time equivalent employees as at 31 December 2022 was 699 (2021 – 520).

1. OTHER EXPENSES (INCLUDING ADMINISTRATIVE EXPENSES)

In EUR thousand	2022	2021
Legal, tax and audit	-13,081	-7,788
Donations	-11,196	-1,842
Travel expenses	-6,826	-3,938
Advertising and promotion expenses	-5,394	-2,454
Fee for real estate consultants and brokers	-4,719	-1,872
Telecommunication expenses	-3,023	-2,008
Taxes and charges	-2,831	-582
Energy and material consumption	-2,439	-1,642
Loss from sale of Property, plant and equipment	-2,259	-217
Receivables written off	-1,659	-1,133
Rent	-1,336	-379
Penalties	-474	-516
Loss from sale of Investment property	-11	-730
Other	-4,336	-1,362
Total other expenses	-59,584	-26,463

The Group donated EUR 10,000 thousand to the UN refugee agency UNHCR (United Nations High Commissioner for Refugees) to provide humanitarian support for the more than one million people, who have fled the war in Ukraine into neighboring countries. In 2022, Legal, tax and audit services includes advisory fees related to DIR transactions of EUR 4,511 thousand.

1. INTEREST EXPENSES

In EUR thousand	2022	2021
Bank interest expense	-31,245	-25,386
Interest expense from liabilities due from related parties	--	-385
Interest expense from financial derivative instruments	-288	-5,469
Arrangement fees	-3,956	-13,523
Interest expense from bonds issued	-49,455	-26,120
Interest expense	-84,944	-70,883

In 2022, arrangement fees include one off release of arrangement fee related to repaid bank loans of EUR 2,691 thousand (2021 – EUR 12,385 thousand).

1. OTHER FINANCIAL EXPENSES

in EUR thousand	2022	2021
Bank fees	-2,808	-4,563
Financing fees	-15,022	-33,061
Other financial expenses	-109	-496
Other financial expenses	-17,939	-38,120

In 2022, financing fees include prepayment fee of EUR 1,465 thousand (2021 – EUR 16,629 thousand) for premature loan repayments and fee for early repayment of bonds of EUR 10,381 thousand (2021 - EUR 12,080 thousand), (refer to Note 28).

1. OTHER FINANCIAL GAINS/(LOSSES)

In EUR thousand	2022	2021
Change in FMV of derivatives	4,052	12,127
Foreign exchange gains/(losses)	-2,208	-5,306
Other financial gains/ (losses)	187	71
Other financial gains/(losses)	2,031	6,892

In 2021, premature terminated derivatives connected with the refinancing of interest-bearing loans and borrowings from financial institutions with money raised from the issuing of bonds were settled in form of cash and amounted to EUR 22,599 thousand.

1. INCOME TAX EXPENSES

In EUR thousand	2022	2021
Current tax income/(expense) related to Current year	-30,211	-25,735
Prior period	-1,121	-2,669
Total	-31,332	-28,404
Deferred tax expense	-159,411	-222,350
Total	-159,411	-222,350
Total income tax expense in statement of profit and loss and other comprehensive income	-190,743	-250,754

The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. The income tax rate is valid for 2022 and is as well valid for future periods when the Group expects to utilise the tax impacts from previous years.

Reconciliation of effective tax rate

In EUR thousand | 2022 | 2021
---|---|---|---|---
| Tax base | Tax | Tax base | Tax
Profit / Loss before income tax | 987,268 | 254,715 | 1,276,690 | 319,172
Company's domestic tax rate | 25.8% | | 25.0% |
Tax non-deductible expenses | 45,478 | 11,733 | 26,701 | 6,675
Tax exempt income | -2,444 | -630 | -9,439 | -2,360
Income tax adjustment for prior years | 4,345 | 1,121 | 10,676 | 2,669
Effect of unrecognised deferred tax asset related to tax losses (including current year losses) | -2,108 | -544 | 123 | 31
Effect of tax rates in foreign jurisdictions | -- | -83,351 | -- | -98,410
Other items | 29,842 | 7,699 | 91,905 | 22,977
Tax base | 1,062,381 | 190,743 | 1,396,656 | 250,754
Effective income tax rate | 19.3% | | 19.6% |

Tax non-deductible expenses represent receivables written off, representation expenses, tax non-deductible accruals (legal, advisory), financial expenses, penalties and gifts provided. Other items result mainly from the translation of transactions in foreign currencies to the functional currency of the Group’s entities.

1. INVESTMENT PROPERTY

In EUR thousand	2022	2021
Buildings and related land and Right-of-use assets	9,361,260	7,048,269
industrial	8,764,194	6,445,781
office	549,520	549,300
retail and other	47,546	53,188
Landbank and related Right-of-use assets	762,925	526,838
Total	10,124,185	7,575,107

In EUR thousand	Owned buildings and land	Landbank	Right-of-use assets Land and buildings	Right-of-use assets Landbank	Total
Balance at 1 January 2021	5,058,268	325,945	2,017	--	5,386,230
Transfer from/to investment property under development	655,601	-13,144	--	--	642,457
Transfer from/to owned buildings and land	22,548	-22,548	--	--	--
Acquisitions	495,376	87,625	--	--	583,001
Additions / Disposals	48,793	105,536	--	--	154,329
Net valuation result	765,666	43,424	--	--	809,090
Balance at 31 December 2021	7,046,252	526,838	2,017	--	7,575,107
Balance at 1 January 2022	7,046,252	526,838	2,017	--	7,575,107
Transfer from/to investment property under development	814,394	-74,955	501	--	739,940
Transfer from/to owned buildings and land	18,395	-18,395	--	--	--
Acquisitions	976,436	322,111	25,615	4,746	1,328,908
Additions / Disposals	63,658	--	--	--	63,658
Net valuation result	413,992	2,580	--	--	416,572
Balance at 31 December 2022	9,333,127	758,179	28,133	4,746	10,124,185

Owned buildings and land represent assets in CTP’s legal ownership. The landbank comprises the plots of land in CTP’s ownership available for development of new projects. Right-of-use assets comprise leased land in Germany under the buildings acquired as a part of DIR acquisition of EUR 25,615 thousand; landbank in the Czech Republic of EUR 4,746 thousand (2021 – EUR 0 thousand); land in the Czech Republic of EUR 2,017 thousand (2021 – EUR 2,017 thousand); and land in Romania of EUR 501 thousand (transferred from investment property under development in 2022). Investment property comprises a number of commercial properties that are leased to third parties. Part of owned buildings and land are subject to bank collateral (refer to Note 27). Acquisitions represent asset deals under the acquisition of subsidiaries (refer to Note 6) and acquisitions of properties under asset deal agreements. The most significant changes in investment property in 2022 relate to completed construction of industrial properties in Bor, Brno and Ostrava in the Czech Republic; in Budapest in Hungary; in Beograd in Serbia; in Bucharest in Romania; and in Illowa in Poland. In 2022, the Group also made landbank acquisitions, mainly in the Czech Republic, Poland, Romania, Austria, the Netherlands, Serbia and Slovakia. Investment property disposal in 2022 relates to the sale of properties in the Czech Republic to external partners. The most significant changes in investment property in 2021 relate to the completed construction of industrial properties in Plzeň, Žatec, Ostrov u Tachova and Nošovice in the Czech Republic; Trnava, Nitra and Košice in Slovakia; and in Turda and Sibiu in Romania; office premises in Brno in the Czech Republic and in Bucharest in Romania; and industrial premises in Budapest and Vecses in Hungary and in Kragujevac in Serbia. Investment property disposal in 2021 relates to the sale of properties in the Czech Republic to external partners.

Fair value hierarchy
The fair value measurement for investment property is categorised as Level 3 recurring fair value based on the inputs to the valuation technique used in accordance with IFRS 13. There were no transfers between Levels during the year.# Management’s adjustments made in respect of valuations appraisals

CTP management did not make any adjustments to valuation prepared by an independent external valuer as at 31 December 2022 and 31 December 2021. The table below presents the portion of the investment property portfolio as at 31 December 2022 and 2021, valued by an independent external valuer:

In EUR thousand	2022	2021
Investment property portfolio valued by external valuer	10,025,620	7,364,990
Investment property portfolio at acquisition value	98,565	210,117
Total	10,124,185	7,575,107

381

Financial Statements

Valuation

Building valuation

To value investment property, external valuers adopt a traditional valuation method, specifically the hard-core method. Within the hardcore method, income considered sustainable (e.g., all income at or below market levels) is capitalised at a certain level, and any over-rented elements are capitalised at a separate rate until lease expiry. This enables a separate risk profile to be attached to the “riskier” over-rented element, as appropriate. The capitalisation rates applied are implicit in terms of rental growth and most other risks, although external valuers are explicit in their calculations in terms of voids and costs. Valuations reflect, where appropriate: the type of tenants in occupation; those responsible for meeting the lease commitments; those likely to be in occupation after letting vacant accommodation; the market’s general perception of tenants’ creditworthiness; the allocation of maintenance and insurance responsibilities between lessor and lessee; and the remaining economic life of the property. It is assumed that whenever rent reviews or lease renewals are pending with anticipated reversionary increases, all notices and, where appropriate, counter notices, have been served validly and within the appropriate time.

Assumptions by the independent valuer for the year ended 31 December 2022 and 31 December 2021 were as follows:

Core yield	2022			2021
Country	Average	Lower	Upper	Average	Lower
Czech Republic	5.52%	4.05%	10.70%	5.09%	3.75%
Hungary	6.23%	5.50%	8.00%	6.32%	5.50%
Romania	7.25%	6.85%	8.25%	7.45%	7.00%
Slovakia	6.07%	5.50%	9.25%	5.85%	3.50%
Germany	7.11%	2.46%	14.39%	--	--
Other	6.93%	3.50%	9.50%	7.81%	5.20%
All	6.13%	2.46%	14.39%	5.76%	3.50%

Core yield	2022			2021
Sector	Average	Lower	Upper	Average	Lower
Offices	6.71%	4.45%	9.70%	6.19%	5.75%
Industrial/other	6.10%	2.46%	14.39%	5.73%	3.50%

Average ERV per sqm and month (EUR)	2022	2021
Country
Czech Republic	6.7	5.6
Hungary	4.9	4.6
Romania	4.0	3.9
Slovakia	4.2	4.1
Germany	3.8	--
Other	4.5	5.0
All	5.1	4.9

Average ERV per sqm and month (EUR)	2022	2021
Sector
Offices	13.1	13.3
Industrial/other	4.9	4.6

Structural vacancy was applied in few cases, mainly to office and ancillary areas.

382

Financial Statements

Landbank valuation

The landbank comprises the plots of land in CTP’s ownership, on which development projects are to be carried out. The landbank was valued by a registered independent valuer with an appropriately recognised professional qualification and with up–to–date knowledge and understanding of the location and category of the property. For land assets, the valuer applied the residual or the market comparison method or both, as appropriate. The residual method assumes the property’s value equates to the end value of the property once developed, less the costs of realisation, which may include site assembly and purchase, demolition, build costs, professional fees, planning, finance and marketing costs and developer’s profit. The market comparison uses sales information from sites of a similar type, size and in a similar location, where a similar development is possible. Sale prices of the properties that are judged to be most comparable tend to indicate a range in which the value indication for the subject property will fall. The valuer estimated the degree of similarity or difference between the subject property and the comparable sales by considering various elements of comparison.

Independent valuer assumptions for the year ended 31 December were based on analysis of comparable evidence and adopted the following average market values per square meter:

In EUR	2022	2021
Czech Republic	55	48
Slovakia	49	42
Hungary	49	76
Serbia	38	57
Romania	33	32
Poland	62	39
Bulgaria	50	42
Slovenia	78	78
Germany	123	--
Netherlands	31	26
Austria	86	--

Investment property is in the following countries where CTP operates:

In EUR thousand	2022	2021
Czech Republic	5,181,043	4,517,045
Romania	1,577,581	1,326,691
Hungary	946,437	758,453
Germany	918,110	8,813
Slovakia	660,873	595,995
Poland	320,326	83,103
Serbia	212,060	155,916
Netherlands	148,430	62,091
Bulgaria	132,865	57,620
Austria	20,260	3,180
Slovenia	6,200	6,200
Total	10,124,185	7,575,107

383

Financial Statements

Sensitivity analysis on changes in assumptions of investment property valuation

CTP performed a sensitivity analysis on changes in investment property valuations, except for landbank investment property as it is valued by a comparable method. The table below presents the sensitivity of profit and loss before tax as at 31 December 2022 and 31 December 2021 due to changes in assumptions:

Completed investment properties as at 31 December 2022	in EUR thousand
Current average initial yield	6.45%
Current market value	9,328,340
Increased yield by 25bp	6.70%
FMV based upon increased yield	8,980,367
Effect of increase in yield by 25bp	-347,973

Completed investment properties as at 31 December 2022	in EUR thousand
Current average initial yield	6.45%
Current market value	9,328,340
Decreased yield by 25bp	6.20%
FMV based upon decreased yield	9,704,366
Effect of decrease in yield by 25bp	376,026

Completed investment properties as at 31 December 2022	in EUR thousand
Current rental income including ERV from vacant space	601,858
Changed rental income
Increase of 500bp in estimated rental income	631,950
FMV based upon changed rental income	9,794,757
Change in FMV	466,417

Completed investment properties as at 31 December 2022	in EUR thousand
Current rental income including ERV from vacant space	601,858
Changed rental income
Decrease of 500bp in estimated rental income	571,765
FMV based upon changed rental income	8,861,923
Change in FMV	-466,417

Completed investment properties as at 31 December 2021	in EUR thousand
Current average initial yield	6.36%
Current market value *	6,866,252
Increased yield by 25bp	6.61%
FMV based upon increased yield	6,606,673
Effect of increase in yield by 25bp	-259,578

Completed investment properties as at 31 December 2021	in EUR thousand
Current average initial yield	6.36%
Current market value *	6,866,252
Decreased yield by 25bp	6.11%
FMV based upon decreased yield	7,147,062
Effect of decrease in yield by 25bp	280,811

• In 2021, sensitivity analysis is calculated on standing portfolio of the Group excluding fair market values of commercial element of hotels operated in the Czech Republic of EUR 20,140 thousand.

Completed investment properties as at 31 December 2021	in EUR thousand
Current rental income including ERV from vacant space	436,892
Changed rental income
Increase of 500bp in estimated rental income	458,737
FMV based upon changed rental income	6,522,939
Change in FMV	-343,313

Completed investment properties as at 31 December 2021	in EUR thousand
Current rental income including ERV from vacant space	436,892
Changed rental income
Decrease of 500bp in estimated rental income	415,047
FMV based upon changed rental income	6,522,942
Change in FMV	-343,310

384

Financial Statements

18. INVESTMENT PROPERTY UNDER DEVELOPMENT

In EUR thousand	IPUD	Right-of-use assets	Total
Balance at 1 January 2021	387,347	--	387,347
Additions/disposals	433,795	1,251	435,046
Acquisitions	285,796	16,990	302,786
Transfer from/to Investment property	-642,457	--	-642,457
Net valuation result	291,481	--	291,481
Balance at 31 December 2021	755,962	18,241	774,203
Balance at 1 January 2022	755,962	18,241	774,203
Additions/disposals	807,016	--	807,016
Acquisitions	45,056	--	45,056
Transfer from/to Investment property	-739,439	-501	-739,940
Net valuation result	307,008	--	307,008
Balance at 31 December 2022	1,175,603	17,740	1,193,343

The investment property under development (IPUD) comprises pipeline projects in several stages of completion and of land with planning permits in place, which are still to be constructed but where pre-agreements with future tenants are available. The management estimates that a significant majority of the pipeline projects will be completed within 12 months. Right-of-use assets in investment property under development comprise leased land in the Netherlands under the acquired project CTP ALC B.V. of EUR 16,990 thousand (2021 – EUR 16,990 thousand), and land in Romania of EUR 750 thousand (2021 – EUR 1,251 thousand) in CTPARK IOTA SRL (leased land of EUR 501 thousand was transferred to investment property).

Investment property under development is located in the following countries where CTP operates:

In EUR thousand	2022	2021
Poland	308,217	37,735
Netherlands	298,798	285,095
Czech Republic	187,330	201,175
Hungary	98,371	89,334
Slovakia	76,636	48,621
Austria	72,752	31,714
Serbia	60,980	10,727
Romania	58,250	62,950
Bulgaria	29,912	6,852
Germany	2,097	--
Total	1,193,343	774,203

Fair value hierarchy

The fair value measurement for investment property under development is categorised as Level 3 recurring fair value based on the inputs to the valuation technique used in accordance with IFRS 13. There were no transfers between Levels during the year.

Valuation

Development assets are valued through a combination of traditional and residual methods. The traditional method is applied to determine a gross development value (GDV), which is a component of the residual method that is ultimately applied to determine fair value. This approach assumes the property’s value equates to the end value of the property once developed, less the costs of realisation, which may include site assembly and purchase, demolition, build costs, professional fees, planning, finance and marketing costs and developer’s profit.

385

Financial Statements

In assessing the GDV, the independent valuer adopted a market approach by estimating the market rental values for the accommodation to be developed and the appropriate capitalisation rate which a potential investor would require to arrive at the fair value of the completed and leased building.The assumptions used by the independent valuer for the year ended 31 December were as follows:

	2022			2021
	Average	Lower	Upper	Average	Lower	Upper
Capitalisation rates	6.01%	4.25%	9.10%	5.64%	4.25%	9.00%
Monthly ERV per sqm (EUR)
– Industrial premises	5.96	3.50	10.98	5.21	3.50	8.33
– Office properties	17.16	16.66	18.69	15.18	15.00	15.50
Soft costs	5.14%	2.50%	15.00%	6.76%	3.00%	15.00%
Finance costs	4.58%	3.00%	6.00%	3.51%	3.50%	5.00%
Profit allowance	14.56%	5.00%	25.00%	15.59%	5.00%	30.00%

Structural vacancy was applied in a very few cases, and mainly to office and ancillary areas.

Sensitivity analysis on changes in assumptions of investment property under development valuation

CTP performed a sensitivity analysis on changes in investment property under development valuation. The table below presents the sensitivity of profit and loss before tax as at 31 December 2022 and 31 December 2021:

Investment properties under development as at 31 December 2022 (in EUR thousand)

		Current market value at completion	Increased yield by 25bp	FMV based upon increased yield	Effect of increase in yield by 25bp	Increase of 25bp in yield
Current average yield	6.38%	1,921,913	6.63%	1,849,395	-72,518
			Decreased yield by 25bp	FMV based upon decreased yield	Effect of decrease in yield by 25bp	Decrease of 25bp in yield
Current average yield	6.38%	1,921,913	6.13%	2,000,349	78,436
			Changed rental income	FMV based upon changed rental income	Effect of change in rental income
Current rental income including ERV from vacant space	122,535		128,662	2,018,008	96,095	Increase of 500bp in estimated rental income
	122,535		116,408	1,825,817	-96,096	Decrease of 500bp in estimated rental income

Investment properties under development as at 31 December 2021 (in EUR thousand)

		Current market value at completion	Increased yield by 25bp	FMV based upon increased yield	Effect of increase in yield by 25bp	Increase of 25bp in yield
Current average yield	6.14%	1,102,406	6.39%	1,059,289	-43,117
			Decreased yield by 25bp	FMV based upon decreased yield	Effect of decrease in yield by 25bp	Decrease of 25bp in yield
Current average yield	6.14%	1,102,406	5.89%	1,145,523	43,117
			Changed rental income	FMV based upon changed rental income	Effect of change in rental income
Current rental income including ERV from vacant space	67,710		71,096	1,157,526	55,120	Increase of 500bp in estimated rental income
	67,710		64,324	1,047,286	-55,120	Decrease of 500bp in estimated rental income

An increase of developers’ profit mark-up by 2% in valuers’ assumptions will increase the developers’ profit and as a consequence will decrease the valuation as at 31 December 2022 by EUR 12,202 thousand (31 December 2021 – EUR 7,591 thousand) provided all other variables remain constant.

19. NET VALUATION RESULT

Reconciliation of valuation gains/losses recognised in statement of comprehensive income:

In EUR thousand	2022	2021
Valuation gains	906,194	1,189,211
out of which:
Investment Property	571,638	885,510
Investment Property under development	334,556	303,701
Valuation losses	-182,614	-88,640
out of which:
Investment Property	-155,066	-76,420
Investment Property under development	-27,548	-12,220
Net valuation gains (losses) on investment property	723,580	1,100,571

20. PROPERTY, PLANT AND EQUIPMENT

In EUR thousand	Hotels	Leased Property	Plant	Plant under construction	Forests	Equipment	Total
2022
Balance at 1 January	55,254	4,436	25,054	--	4,332	21,891	110,967
Acquisitions	--	--	--	--	--	162	162
Additions/Disposals	--	5,277	2,077	13,776	--	46,882	68,012
Valuation gain/loss on solar plants and hotels	--	--	-1,004	--	--	--	-1,004
Depreciation	-1,579	-877	-1,204	--	--	-7,397	-11,057
Reversal of impairment loss	1,825	--	--	--	--	--	1,825
Balance at 31 December	55,500	8,836	24,923	13,776	4,332	61,538	168,905

In EUR thousand	Hotels	Leased Property	Plant	Forests	Equipment	Total
2021
Balance at 1 January	55,400	3,814	17,761	717	21,192	98,884
Acquisitions	--	--	--	--	6	6
Additions/Disposals	3,248	1,296	--	3,615	5,768	13,927
Valuation gain/loss on solar plants and hotels	378	--	8,462	--	--	8,840
Depreciation	-1,539	-674	-1,169	--	-5,075	-8,457
Impairment loss	-2,233	--	--	--	--	-2,233
Balance at 31 December	55,254	4,436	25,054	4,332	21,891	110,967

Under “Plant” are the solar plants installed on the roofs of several buildings. The value of EUR 24,923 thousand represents the fair value of the solar panels based upon the independent valuation report of EUR 22,881 thousand (2021 – EUR 25,054 thousand) and solar panels of EUR 2,042 thousand valued at costs. The value of EUR 55,500 thousand (2021 – EUR 55,254 thousand) represents revalued amount in accordance with IAS 16 based upon the independent valuation report. The valuation is prepared on the basis of fair value in accordance with IFRS 13 and is primarily derived using the discounted cashflow methodology, as well as an income capitalisation approach, and comparable recent market transactions on arm’s length terms. Forests are considered as bearing plant and are included in Property, plant and equipment of EUR 4,332 thousand (2021- EUR 4,332 thousand).

Valuation

In view of the nature of the solar plants and the bases of valuation, the valuer adopted the income approach based on the discounted cash flow technique for a 20-year period. The cash flow is based on the income receivable under the license provided by the government. For the calculation of the market value of solar energy power panels, the valuer capitalised solar revenues at a yield of 10% for a fixed period of 20 years (2021 - 9%). In view of the nature of the hotels and the bases of valuation, the valuer adopted the discounted cash flow method. Under this method the projected adjusted net operating income for the hotel over 10 years is discounted back to present day using an appropriate discount rate. The value of the hotel derived from the capitalised earnings in the 10th year is also brought back to present values. Capital expenditure is built into the cash flow if appropriate. Capitalisation rates used in hotel valuations range from 7.5% to 9.0% (2021 - from 6.75% to 7.25%).

Sensitivity analysis on changes in assumptions of hotel valuation

CTP performed a sensitivity analysis on changes in fair value to changes in revenues per available room. The table below presents the sensitivity of fair value as at 31 December 2022, due to changes in assumptions:

In EUR thousand	Current FV	Effect of decrease in RevPAR by 5 %	Effect of increase in RevPAR by 5 %	5% Change in RevPAR
	55,500	-10,131	10,131

CTP performed a sensitivity analysis on changes in fair value to changes in revenues per available room. The table below presents the sensitivity of fair value as at 31 December 2021, due to changes in assumptions:

In EUR thousand	Current FV	Effect of decrease in RevPAR by 5 %	Effect of increase in RevPAR by 5 %	5% Change in RevPAR
	55,254	-11,609	11,609

Real estate infrastructure (such as roads, greenery and energy transformers), including related equipment and means of transport, of EUR 61,538 thousand (2021 – EUR 21,891 thousand) is presented under Equipment. Property, plant and equipment include also right-of-use assets of EUR 8,836 thousand (2021 – EUR 4,436 thousand) relating to leased properties that do not meet CTP’s definition of investment property (refer to Note 30).

21. TRADE AND OTHER RECEIVABLES

Non-current

In EUR thousand	2022	2021
Long term advances paid	14,674	97,014
Restricted cash	1,341	1,086
Other assets	1,999	2,639
Total trade and other receivables	18,014	100,739

Non-current trade and other receivables consist primarily of long-term advances paid for land and tangible assets. CTP paid in 2021 an advance payment of EUR 1.9 million for assistance and advisory services related to potential future land acquisitions in Hungary from a third party. CTP conducted standard compliance check including an AML check, due diligence and evaluated risks of this potential transaction (including all risks for the case of involvement of former / current government official in relation to the third party), in order to conclude whether the commission fee is according to CTP’s standards and agreed transaction price for the land is at arm’s length and to have sufficiently evaluated risks in accordance with CTP internal policies.

Current

In EUR thousand	2022	2021
Trade receivables	54,537	36,417
Other assets	113,201	61,771
Other tax receivables	67,846	45,894
Total trade and other receivables	235,584	144,082

Trade receivables consist primarily of receivables from rent and rent related income. Other assets consist primarily of deferrals of EUR 10,067 thousand (2021 – EUR 5,110 thousand), advance payments and accrued income of EUR 69,173 thousand (2021 – EUR 35,182 thousand) and prepayments of EUR 33,961 thousand (2021 – EUR 21,479 thousand). Short-term receivables overdue more than six months total EUR 5,245 thousand (2021 – EUR 3,143 thousand). Total expected credit losses are EUR 5,580 thousand (2021 – EUR 4,137 thousand). Other tax receivables consist primarily of value added tax receivables of EUR 67,023 thousand (2021 – EUR 45,692 thousand). Trade receivables can be analysed as follows, whereas the weighted average loss rate is determined as actual credit losses over the past two years.| as at 31 December 2022 | Weighted average loss rate | Gross carrying amount | Loss allowance | Net carrying amount | Credit- impaired |
| :--------------------- | :------------------------- | :-------------------- | :------------- | :------------------ | :---------------- |
| Current (not past due) | 0.83% | 39,610 | -331 | 39,279 | No |
| 1 - 30 days past due | 1.84% | 10,559 | -194 | 10,365 | No |
| 31 - 60 days past due | 7.30% | 1,651 | -120 | 1,531 | No |
| 61 - 90 days past due | 10.33% | 1,597 | -165 | 1,432 | No |
| 91 - 182 days past due | 36.36% | 1,455 | -529 | 926 | No |
| 184 - 365 days past due| 65.06% | 2,874 | -1,870 | 1,004 | Yes |
| Paid in more than 365 days past due | 100.00% | 2,371 | -2,371 | -- | Yes |
| Balance at 31 December 2022 | | 60,117 | -5,580 | 54,537 | |

as at 31 December 2021	Weighted average loss rate	Gross carrying amount	Loss allowance	Net carrying amount	Credit- impaired
Current (not past due)	0.93%	27,034	-252	26,782	No
1 - 30 days past due	3.22%	8,140	-262	7,878	No
31 - 60 days past due	17.92%	904	-162	742	No
61 - 90 days past due	38.85%	592	-230	362	No
91 - 182 days past due	46.83%	741	-347	394	No
184 - 365 days past due	73.71%	985	-726	259	Yes
Paid in more than 365 days past due	100.00%	2,158	-2,158	--	Yes
Balance at 31 December 2021		40,554	-4,137	36,417

22. CASH AND CASH EQUIVALENTS

Cash and cash equivalents of EUR 660,631 thousand (2021 – EUR 892,816 thousand) consist primarily of short-term deposits of EUR 221,224 thousand (2021 – EUR 700,000 thousand) and cash at bank accounts of EUR 439,292 thousand (2021 – EUR 192,682 thousand). Restricted cash amounts to EUR 1,341 thousand (2021 – EUR 1,086 thousand) and is presented under non-current trade and other receivables. Restricted cash represents balances on debt service reserve accounts.

23. EQUITY

Issued capital and Share premium

As at 31 December 2022, the issued capital comprised of the following:

Type of shares	No. of shares	Nominal value of share	Issued capital in EUR
Ordinary shares	444,100,549	EUR 0.16	71,056,088

Movements in Issued capital and Share premium

In thousands of EUR

	Nr. of shares	Issued capital	Share premium
Balance at 1 January 2022	400,392,810	64,063	2,661,979
3 February 2022 Share issuance connected with DIR acquisition	32,421,325	5,187	391,030
9 June 2022 Dividends paid in form of shares	763,581	122	-68,064
23 August 2022 Share issuance connected with merger of DIR and CTP N.V.	7,659,590	1,226	96,593
5 September 2022 Dividends paid in form of shares	2,863,243	458	-56,476
Balance at 31 December 2022	444,100,549	71,056	3,025,062
Treasury shares		-27,976	-4
Total balance at 31 December 2022	444,072,573	71,052	3,024,521

On 3 February 2022, the Group acquired Deutsche Industrie REIT-AG (currently CTP Germany B.V.). CTP offered either a cash consideration of EUR 17.12 or a share consideration of 1.25 shares in the share capital of CTP (the “CTP Shares”) for each tendered DIR Share (the “Share Consideration”). The transaction resulted in the issuance of 32,421,325 new shares of CTP N.V. For details refer to Note 6.

Following its Annual General Meeting on 26 April 2022, CTP N.V. announced a final 2021 dividend of EUR 0.18 per ordinary share. Shareholders were given the choice to receive the final dividend either in cash or in shares, with the stock fraction for the dividend based on the volume-weighted average price (VWAP) of the Company’s shares on Euronext Amsterdam of the last three trading days of the election period, ending on 18 May 2022. The number of dividend rights that entitles to one new ordinary share was set at 72.5. Shareholders representing approximately 88% of the total number of outstanding ordinary shares chose to receive the dividend in cash, while shareholders representing 12% of the total number of outstanding ordinary shares opted for payment in stock. Based on the conversion ratio and after delivery of the ordinary shares due to the conversion of dividend rights, the total number of issued and outstanding ordinary shares increased by 763,581 to a total of 433,577,716 ordinary shares. The payment date for the dividend payment in cash and delivery of the ordinary shares was 9 June 2022.

On 23 August 2022 CTP N.V. completed the merger with Deutsche Industrie Grundbesitz AG (acquired on 3 February 2022). As a result of the merger, CTP N.V. acquired shares from former shareholders of Deutsche Industrie Grundbesitz AG. CTP offered a share consideration of 1.25 shares in the share capital of CTP (the “CTP Shares”) for each tendered DIR Share. The transaction resulted in issuance of 7,659,590 new shares of CTP N.V.

On 10 August 2022, an interim dividend of EUR 0.22 per share for the first half of 2022 was announced. Shareholders were given the choice to receive the final dividend either in cash or in shares, with the stock fraction for the dividend based on the volume-weighted average price (VWAP) of the Company’s shares on Euronext Amsterdam of the last three trading days of the election period, ending on 29 August 2022. The number of dividend rights that entitles to one new ordinary share was set at 62.5. Shareholders representing approximately 59% of the total number of outstanding ordinary shares chose to receive the interim dividend in cash, while shareholders representing approximately 41% of the total number of outstanding ordinary shares opted for payment in stock. Based on the conversion ratio and after delivery of the ordinary shares due to the conversion of dividend rights, the total number of issued and outstanding ordinary shares increased by 2,863,243 to a total of 444,100,549 ordinary shares. The payment date for the dividend payment in cash and delivery of the ordinary shares was 5 September 2022.

As at 31 December 2021, the issued capital comprised of the following:

Type of shares	No. of shares	Nominal value of share	Issued capital in EUR
Ordinary shares	400,392,810	EUR 0.16	64,062,850

Movements in Issued capital and Share premium

In thousands of EUR

	Nr. of shares	Issued capital	Share premium
Balance at 1 January 2021	336,000,000	53,760	1,858,460
29 March 2021 Share issuance connected with IPO	61,017,000	9,763	809,572
9 June 2021 Dividends paid in form of shares	3,375,810	540	-6,053
Balance at 31 December 2021	444,100,549	71,056	3,025,062

As at 29 March 2021, an additional 61,017,000 shares were issued, with nominal value of EUR 0.16 per share. On 29 March 2021, the Company issued new shares on Amsterdam’s stock exchange.

On 17 August 2021, CTP N.V. announced an H1 2021 interim dividend of EUR 0.17 per share. Shareholders were given the choice to receive the interim dividend either in cash or shares. The number of dividend rights that entitles to one new ordinary CTP share was set at 108. The conversion ratio was based on the volume-weighted average price of the CTP share during the period from 26 August 2021 up to and including 30 August 2021. Shareholders representing 92% of the total number of outstanding ordinary shares chose to receive the dividend in stock, while shareholders representing 8% of the total number of outstanding ordinary shares opted for payment in cash. Based on the conversion ratio and after delivery of the ordinary shares, due to the conversion of dividend rights, the total number of outstanding ordinary shares increased by 3,375,810 to a total of 400,392,810 shares. The payment date for the dividend payment in cash and delivery of the ordinary shares was 22 September 2021.

Cash flow hedge reserve

Changes in the fair value of derivatives designated as hedging instruments and recognised in the cash flow hedge reserve in equity reached EUR 23,727 thousand net of tax as at 31 December 2022 (2021 – EUR 0 thousand).

Translation reserve

The translation reserve of EUR 4,547 thousand (2021 – EUR 10,716 thousand) comprises all foreign exchange differences arising from the translation of the financial statements from the functional to the presentation currency (refer to Note 3f).

Profit distribution

In June 2022, the Group paid final dividends for the year 2021 of EUR 77,907 thousand, out of which EUR 67,942 thousand were paid in cash and the rest of dividends were paid in form of new shares. In September 2022, the Group has paid interim dividends for the year 2022 of EUR 95,387 thousand, out of which EUR 56,018 thousand were paid in cash and the rest of dividends were paid in form of new shares. In 2021, the Group paid dividends of EUR 67,492 thousand, of which EUR 5,513 thousand were paid in cash and the rest in new shares.

24. SHARE-BASED PAYMENTS

On 30 April 2021 and 30 April 2022, the Company granted a conditional share award under the LTIP to a Director. This award has a vesting period of three years, and vesting is subject to continued services up to vesting and depends on the Company’s total shareholder return (“TSR”). Vesting of 50% of the number of awards granted is subject to an Absolute TSR condition, and 50% is subject to a Relative TSR condition. The number of awards that will vest is between 0% and 150% of the target number of awards granted. The vesting percentage is allocated linearly between the threshold level and the maximum level. The fair value of the awards is expensed on a straight-line basis over the three-year vesting period. In 2022, the total share-based payment expense recognised for the equity-settled awards was EUR 176 thousand (2021 – EUR 85 thousand).

25. EARNINGS PER SHARE

Basic earnings per share (“EPS”) Basic EPS calculations are based on the following profit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding.# Financial Statements

Earnings per share

In EUR thousand
| | 1.1.2022 - 31.12.2022 | 1.1.2021 - 31.12.2021 |
| :-------------------------------------------------------------- | :-------------------- | :-------------------- |
| Profit/(loss) attributable to Equity holders of the Company | 794,649 | 1,025,936 |
| Dividends on non-redeemable preference shares | -- | -- |
| Profit/(loss) attributable to ordinary shareholders | 794,649 | 1,025,936 |

In EUR thousand
| | 1.1.2022 - 31.12.2022 | 1.1.2021 - 31.12.2021 |
| :-------------------------------------------------------------- | :-------------------- | :-------------------- |
| Issued ordinary shares at 1 January | 400,392,810 | 336,000,000 |
| Effect of shares issued related to a business combination | -- | -- |
| Effects of shares issued in 2022/2021 | 33,588,692 | 47,407,350 |
| Weighted-average number of ordinary shares at 31 December | 433,981,502 | 383,407,350 |
| Earnings per share | 1.83 | 2.68 |

The denominator in the calculation of basic EPS for the years 2022 and 2021 is the weighted average number of ordinary shares less treasury shares as at 31 December 2022 and 31 December 2021, respectively.

Diluted earnings per share

The calculation of diluted EPS is based on the following profit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares.

In EUR thousand
| | 1.1.2022 - 31.12.2022 | 1.1.2021 - 31.12.2021 |
| :-------------------------------------------------------------- | :-------------------- | :-------------------- |
| Profit (loss) attributable to Equity holders of the Company (basic) | 794,649 | 1,025,936 |
| Interest expense on convertible notes, net of tax | -- | -- |
| Profit/(loss) attributable to ordinary shareholders | 794,649 | 1,025,936 |

	2022	2021
Weighted-average number of ordinary shares (basic)	433,981,502	383,407,350
Effect of conversion of convertible notes	--	--
Effect of share options on issue	--	--
Long-term incentive plan	28,913	10,202
Weighted-average number of ordinary shares (diluted) at 31 December	434,010,416	383,417,553
Earnings per share (diluted)	1.83	2.68

26. NON-CONTROLLING INTEREST

On 3 February 2022, the Group acquired 80.9 % ownership interest in Deutsche Industrie REIT-AG (currently CTP Germany B.V.). For details refer to Note 6. Share of non-controlling interest as at date of acquisition corresponds to 19.1% of the outstanding share capital in Deutsche Industrie Grundbesitz AG.

In EUR thousand
| | 3 February 2022 |
| :---------------------------- | :-------------- |
| NCI percentage | 19.10% |
| Non-current assets | 850,539 |
| Current assets | 122,587 |
| Non-current liabilities * | -373,054 |
| Current liabilities | -97,757 |
| Net assets | 502,315 |
| Net assets attributable to NCI | 95,943 |

• Non-current liabilities also include the pre-acquisition loan of EUR 67,458 thousand provided by CTP N.V. to DIR.

On 23 August 2022, CTP N.V. completed the merger with Deutsche Industrie Grundbesitz AG. As a result of the merger, the legal integration of Deutsche Industrie Grundbesitz AG into the CTP group was completed. CTP acquired 100% ownership of Deutsche Industrie Grundbesitz AG and the entity ceased to exist without liquidation. For details refer to Note 6.

As at date of cross border merger and acquisition of additional 19.1% of ownership interest in DIR, the information related to acquired share are as follows:

Net assets attributable to NCI as at date of acquisition	95,943
Revenue	35,763
Profit	9,822
Other comprehensive income	--
Total comprehensive income	9,822
Other Adjustment in profit loss allocated to NCI	--
Profit/(loss) allocated to NCI	1,876
OCI allocated to NCI	--
Net assets attributable to NCI as at date of merger/demerger	97,819

In 2022, the Group acquired additional 9.9% ownership interest in CTP Delta B.V. with impact on Equity of EUR 2,247 thousand. As at 31 December 2021 non-controlling interest (NCI) in the consolidated companies of the Group was EUR 0 thousand. In 2021, the Group has acquired additional 10% ownership interest in its subsidiary from CTP Holding B.V. In 2021, the Group has acquired 90.1% ownership interest in CTP Delta B.V. Net asset value as at 31 December 2021 was of EUR 2 thousand and non-controlling interest was EUR 0 thousand.

27. INTEREST-BEARING LOANS AND BORROWINGS FROM FINANCIAL INSTITUTIONS

In EUR thousand
| | 2022 | 2021 |
| :-------------------------------------------------------------- | :------------ | :------------ |
| Non-current liabilities | | |
| Interest-bearing loans and borrowings from financial institutions | 1,874,481 | 1,115,412 |
| Accrued arrangement fees | -6,352 | -4,941 |
| Balance at 31 December | 1,868,129 | 1,110,471 |
| Current liabilities | | |
| Interest-bearing loans and borrowings from financial institutions | 24,672 | 23,186 |
| Accrued interest | 640 | -- |
| Accrued arrangement fees | -582 | -2,353 |
| Balance at 31 December | 24,730 | 20,833 |
| Total balance at 31 December | 1,892,859 | 1,131,304 |

In EUR thousand
| | 2022 | 2021 |
| :-------------------------------------------------------------- | :---------------- | :---------------- |
| | Nominal value | Fair value | Nominal value | Fair value |
| Interest-bearing loans and borrowings from financial institutions | 1,899,153 | 1,545,444 | 1,138,598 | 1,138,598 |

The valuation model of fair value of bank loans considers the present value of expected payments, discounted using risk adjusted discount rate. The Group has determined that all of its Interest-bearing loans and borrowings from financial institutions are classified within Level 2 of the fair value hierarchy. To determine the fair value of such instruments, management used a valuation technique in which all significant inputs were based on observable market data. All of the Group’s interest-bearing loans and borrowings from financial institutions have loan-to-value and debt service coverage ratio covenants. As at 31 December 2022, there was no breach of covenant conditions.

All interest-bearing loans and borrowings from financial institutions are secured for 2022 and 2021. Bank loans are secured over investment property with a carrying amount of EUR 4,332,358 thousand (2021 – 2,492,295 EUR thousand) and investment property under development with a carrying amount of EUR 295,307 thousand (2021 – EUR 19,970 thousand). Bank loans are secured also by pledges of shares, receivables, future receivables and other assets in some of the subsidiaries. Share pledges related to interest-bearing loans are described in Note 37.

Residual maturity of loans and borrowings from financial institutions as at 31 December 2022 and 31 December 2021 was as follows:

In EUR thousand
| Balance as at 31 December 2022 | Due within 1 year | Due in follow. years | | | Total |
| :------------------------------------------ | :---------------- | :------------------- | :---- | :---- | :-------- |
| | | 2 years | 3-5 years | | |
| Interest-bearing loans and borrowings from financial institutions | 24,671 | 29,170 | 130,681 | 1,714,631 | 1,899,153 |

In EUR thousand
| Balance as at 31 December 2021 | Due within 1 year | Due in follow. years | | | Total |
| :------------------------------------------ | :---------------- | :------------------- | :---- | :---- | :-------- |
| | | 2 years | 3-5 years | | |
| Interest-bearing loans and borrowings from financial institutions | 23,186 | 26,710 | 111,998 | 976,704 | 1,138,598 |

Bank loans with nominal value of EUR 267,207 thousand have interest rate based on EURIBOR, plus margin that vary from 0.623% to 2.174% (2021 – EUR 29,659 thousand, interest rate from 0.53% to 1.60%). The rest of bank loans have fixed interest rates from 0.75% to 4.71% (2021 – from 1.1% - 1.90%).

In September 2022, the Group received a syndicated bank loan of EUR 445,000 thousand, with fixed interest rate of 4.71%, due in 2029. In December 2022, the Group received bank loan of EUR 175,000 thousand, with variable interest rate of 3M EURIBOR with margin 1.80%, due in 2031.

Bank loans of EUR 1,971,259 thousand were repaid in 2021 from bonds issued in the years 2020 and 2021. In September 2021, the Group received a syndicated bank loan of EUR 600,000 thousand, with fixed interest rate of 1.55%, due in 2031.

In 2021, the Company replaced a revolving credit facility from the year 2020 with a new revolving credit facility of EUR 400,000 thousand for a three-year period. The Company does not expect a drawdown, either partial or for the full amount, under this facility in 2023.

No significant changes to estimation techniques or assumptions were made during the reporting period.

Reconciliation of movements of assets, liabilities and equity to cash flows arising from financing activities:

In EUR thousand
| | Bank loans | Related party loans | Bonds | Lease liabilities | IRS - assets | IRS - liabilities | Issued capital | Share premium | Retained earnings | Non-controlling interest | Total |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Balance as at 1 January 2022 | 1,131,304 | 18 | 3,381,692 | 13,833 | -172 | -- | 64,063 | 2,661,979 | 1,350,856 | -- | 8,603,573 |
| Changes from financing cash flows | | | | | | | | | | | |
| Proceeds from bonds | -- | -- | 733,368 | -- | -- | -- | -- | -- | -- | -- | 733,368 |
| Proceeds from loans and borrowings | 628,987 | -- | -- | -- | -- | -- | -- | -- | -- | -- | 628,987 |
| Transaction costs related to loans and borrowings, bonds and issue of shar capital | -2,554 | -- | -2,200 | -- | -- | -- | -- | -- | -- | -- | -4,754 |
| Acquisition of NCI | -- | -- | -- | -- | -- | -- | -- | 1,226 | 96,593 | -2,247 | -2,247 |
| Repayment of the loans and borrow-ings and bonds | -101,637 | -- | -289,564 | -- | -- | -- | -- | -- | -- | -- | -391,201 |
| Dividend in cash | -- | -- | -- | -- | -- | -- | 580 | -124,540 | -- | -- | -123,960 |
| Payment of lease liabilities | -- | -- | -- | -3,010 | -- | -- | -- | -- | -- | -- | -3,010 |
| Total changes in financing cash flows | 524,796 | -- | 441,604 | -3,010 | -- | -- | 1,806 | -27,947 | -2,247 | -97,819 | 837,183 |
| Change in fair value | -- | -- | -- | -- | -6,600 | 2,548 | -- | -- | -- | -- | -4,052 |
| Other adjustment | -1,002 | -16 | 2,552 | 12,084 | -44,149 | 12,111 | -- | -- | -991 | -- | 19,411 |
| Share issuance related to DIR | -- | -- | -- | -- | -- | -- | 5,183 | 390,489 | 395,671 | -- | 791,343 |
| Acquisition of subsidiaries | 232,991 | -- | 140,026 | 25,623 | -125 | 36 | -- | -- | -- | 95,943 | 494,494 |
| Profit for the period | -- | -- | -- | -- | -- | -- | -- | -- | 794,649 | 1,876 | 796,525 |
| Interest expense incl. | | | | | | | | | | | |# Financial Statements

28. BONDS

In EUR thousand
| | 2022 | 2021 |
| :----------- | :---------- | :---------- |
| Non-current bonds | 3,563,788 | 3,368,202 |
| Current bonds | 417,562 | 13,490 |
| Total | 3,981,350 | 3,381,692 |

Current period

Bond Issuance Date	ISIN	Nominal value of total bonds issued in EUR	Nominal value of each bond in EUR	Currency	Type	Fix interest rate per annum ("p.a")	Maturity date	Fair value of bonds (In TEUR)
1 July 2022	XS2390546849	49,500,000	100,000	EUR	senior unsecured	1.500%	27 Sept 2031	29,991
20 Jan 2022	XS2434791690	700,000,000	100,000	EUR	senior unsecured	0.875%	20 Jan 2026	571,942
27 Sept 2021	XS2390530330	500,000,000	100,000	EUR	senior unsecured	0.625%	27 Sept 2026	382,910
27 Sept 2021	XS2390546849	500,000,000	100,000	EUR	senior unsecured	1.500%	27 Sept 2031	302,935
21 June 2021	XS2356029541	500,000,000	100,000	EUR	senior unsecured	0.500%	21 June 2025	419,930
21 June 2021	XS2356030556	500,000,000	100,000	EUR	senior unsecured	1.250%	21 June 2029	330,200
18 Feb 2021	XS2303052695	500,000,000	100,000	EUR	senior unsecured	0.750%	18 Feb 2027	374,595
27 Nov 2020	XS2264194205	400,000,000	100,000	EUR	senior unsecured	0.625%	27 Nov 2023	379,784
1 Oct 2020	XS2238342484	331,813,000	100,000	EUR	senior unsecured	2.125%	1 Oct 2025	286,813
Total		3,981,313,000						3,079,100

Bonds acquired	ISIN	Nominal value of total bonds issued (In EUR)	Currency	Fix interest rate per annum ("p.a")	Maturity date
9 June 2021	DE000A3E5L07	20,000,000	EUR	3.300%	9 June 2031
Total Bonds		4,001,313,000

On 1 July 2022, the CTP N.V. issued EUR 49.5 million unsecured bonds with a nominal value of EUR 100,000 each under emission from 27 September 2021 with ISIN number XS2390546849. The bonds are issued as subordinated, with a fixed interest rate of 1.5% per annum (“p.a.”), and the bonds are due on 27 September 2031. There are no covenants related to the bonds.

On 24 January 2022, the Group repaid bonds from the emission with ISIN XS2238342484 in a nominal value of EUR 168,189 thousand. On 20 January 2022, the Group has issued new bond with the emission ISIN XS2434791690 in the nominal value of EUR 700,000 thousand.

On 3 February 2022, the Group acquired the subsidiary Deutsche Industrie Grundbesitz AG, where bonds with a nominal value of EUR 138,000 thousand were acquired as follows:

ISIN	Nominal value of total bonds issued (In EUR)	Currency	Fix interest rate per annum ("p.a")	Maturity date
DE000A3E5L07	20,000,000	EUR	3.300%	9 June 2031
DE000A2GS3T9	118,000,000	EUR	4.000%	30 August 2022
Total	138,000,000

On 17 May 2022, the Group repaid bonds from the emission with ISIN DE000A2GS3T9 (acquired within Deutsche Industrie Grundbesitz AG) with a nominal value of EUR 118,000 thousand.

Prior period

Bond Issuance Date	ISIN	Nominal value of total bonds issued	Nominal value of each bond	Currency	Type	Fix interest rate per annum ("p.a")	Maturity date	Fair value of bonds (In TEUR)
27 Sept 2021	XS2390530330	500,000,000	100,000	EUR	senior unsecured	0.625%	27 Sept 2026	494,545
27 Sept 2021	XS2390546849	500,000,000	100,000	EUR	senior unsecured	1.500%	27 Sept 2031	485,270
21 June 2021	XS2356029541	500,000,000	100,000	EUR	senior unsecured	0.500%	21 June 2025	498,545
21 June 2021	XS2356030556	500,000,000	100,000	EUR	senior unsecured	1.250%	21 June 2029	490,725
18 Feb 2021	XS2303052695	500,000,000	100,000	EUR	senior unsecured	0.750%	18 Feb 2027	486,940
27 Nov 2020	XS2264194205	400,000,000	100,000	EUR	senior unsecured	0.625%	27 Nov 2023	404,296
1 Oct 2020	XS2238342484	500,002,000	100,000	EUR	senior unsecured	2.125%	1 Oct 2025	524,842
Total		3,400,002,000						3,385,163

On 29 September 2021, the Group repaid bonds from the first issuance that occurred in October 2020 with a nominal value of EUR 149,998 thousand.

In EUR thousand
| | 2022 | 2021 |
| :----------------------- | :---------- | :---------- |
| Non-current liabilities | | |
| Bonds issued - nominal value | 4,299,500 | 3,550,000 |
| Repayment of bonds – nominal value | -318,187 | -149,998 |
| Nominal value after repayment | 3,981,313 | 3,400,002 |
| Bonds acquired | 140,026 | -- |
| Repayment of bonds acquired | -120,026 | -- |
| Interest liability | 18,957 | 13,490 |
| Discount applied | -43,206 | -27,878 |
| Amortisation of applied discount | 10,163 | 3,796 |
| Bond issuance costs | -8,869 | -9,200 |
| Amortisation of bond issuance costs | 2,992 | 1,482 |
| Total | 3,981,350 | 3,381,692 |

Transaction costs paid in cash as at 31 December 2022 was EUR 2,200 thousand (2021 – EUR 18,076 thousand). There are no financial covenants related to the bonds.

29. TRADE AND OTHER PAYABLES

Non-current

In EUR thousand
| | 2022 | 2021 |
| :------------------------ | :------- | :------- |
| Non-current trade payables and other liabilities | 57,907 | 51,525 |
| Liabilities from operating leases | 46,045 | 13,066 |
| Balance at 31 December | 103,952 | 64,591 |

Current

In EUR thousand
| | 2022 | 2021 |
| :-------------------- | :------ | :------ |
| Trade payables and other liabilities | 318,432 | 236,331 |
| Liabilities from operating leases | 2,485 | 817 |
| Balance at 31 December | 320,917 | 237,148 |

In 2022, trade payables and other liabilities consist primarily of liabilities for constructions works. In 2021, trade payables and other liabilities consisted primarily of liabilities for constructions works and liabilities from the acquisition of subsidiaries (refer to Note 6).

30. LEASES

Leases as lessee

The Group leases various types of assets: offices, parking places, plots of land and other small assets. For short-term leases and leases of low-value items, the Group has elected not to recognise right-of-use assets and related lease liabilities. The leasing period of the offices varies significantly, from one to 17 years. Some leases provide for additional rent payments that are based on changes in local price indices, with an option to terminate the contract within less than twelve months. Parking places are leased for a period of several months up to an indefinite period, with an option to terminate the leasing within several days up to three months. Plots of land to operate Group premises are leased from a nineteen-year period to indefinitely.

Information about leases for which the Group is a lessee is presented below. Right-of-use assets related to leased assets that do not meet the definition of investment property are presented as property, plant and equipment (refer to Note 20).

In EUR thousand
| | Property, plant and equipment | Investment property | Investment property under development | Total |
| :------------------------------- | :---------------------------- | :------------------ | :------------------------------------ | :----- |
| Balance at 1 January 2022 | 4,436 | 2,017 | 18,241 | 24,694 |
| Acquisitions | -- | 30,361 | -- | 30,361 |
| Additions | 5,277 | -- | -- | 5,277 |
| Transfer from investment property under development | -- | -- | -501 | -501 |
| Transfer to owned buildings and land | -- | 501 | -- | 501 |
| Depreciation | -877 | -- | -- | -877 |
| Balance at 31 December 2022 | 8,836 | 32,879 | 17,740 | 59,455 |

In EUR thousand
| | Property, plant and equipment | Investment property | Investment property under development | Total |
| :------------------------------- | :---------------------------- | :------------------ | :------------------------------------ | :----- |
| Balance at 1 January 2021 | 3,814 | 2,017 | -- | 5,831 |
| Additions | 1,296 | -- | 18,241 | 19,537 |
| Depreciation | -674 | -- | -- | -674 |
| Balance at 31 December 2021 | 4,436 | 2,017 | 18,241 | 24,694 |

Amounts recognised in profit or loss
In EUR thousand
| | 2022 | 2021 |
| :-------------------------- | :---- | :--- |
| Interest on lease liabilities | 1,832 | 103 |
| Expenses relating to short-term leases | 167 | 160 |
| Expenses relating to leases of low-value assets | 13 | 10 |
| Balance at 31 December | 2,012 | 273 |

Amounts recognised in profit or loss
In EUR thousand
| | 2022 | 2021 |
| :-------------------- | :--- | :--- |
| Total cash outflows for leases | 3,000 | 974 |

The remaining performance obligations as at 31 December 2022 are as follows:
In EUR thousand
| | < 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | > 5 years | Total |
| :------------ | :------- | :-------- | :-------- | :-------- | :-------- | :-------- | :----- |
| Lease payments | 2,397 | 1,383 | 1,294 | 1,254 | 1,168 | 41,034 | 48,530 |

The remaining performance obligations as at 31 December 2021 are as follows:
In EUR thousand
| | < 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | > 5 years | Total |
| :------------ | :------- | :-------- | :-------- | :-------- | :-------- | :-------- | :----- |
| Lease payments | 942 | 1,652 | 227 | 222 | 195 | 10,645 | 13,883 |

Leases as lessor

The Group leases out its own investment property. All leases are classified as operating leases from a lessor perspective because they do not transfer substantially all the risks and rewards incidental to the ownership of the assets. Rental income recognised by the Group during 2022 was EUR 485,017 thousand (2021 – EUR 334,651 thousand).The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting period. In EUR thousand

	< 1 year	2-5 years	> 5 years	Total
Lease payments	588,915	1,802,345	1,812,739	4,203,999

31. DERIVATIVE FINANCIAL INSTRUMENTS

In EUR thousand

	2022	2021
Fair value of derivatives - non-current asset	9,165	126
Fair value of derivatives - current asset	41,881	46
Fair value of derivatives - assets	51,046	172
Fair value of derivatives - non-current liability	-2,018	-
Fair value of derivatives - current liability	-12,677	-
Fair value of derivatives - liabilities	-14,695	-
Total	36,351	172
Accrued interest on derivatives	-	-
Total derivatives	36,351	172

All financial derivatives were stated at fair value as at 31 December 2022 and 31 December 2021, respectively, and classified to Level 2 in the fair value hierarchy. A market comparison technique was used to determine fair value. The Group has designated certain derivatives as hedging instruments in cash flow hedge relationships. These derivatives are recognised initially at fair value and reported subsequently at fair value in the consolidated statement of financial position. To the extent that the hedge is effective, changes in the fair value of derivatives designated as hedging instruments in cash flow hedges are recognised in other comprehensive income and included within the cash flow hedge reserve in equity (refer to Note 23).

400 Financial Statements

As at 31 December 2022

CTP held the following derivative financial instruments:

Derivative financial instruments - assets

	Due within maturity date	Mandatory break	Receiving leg	Paying leg	Currency	Nominal amount	Fair value (in EUR thousand)
Interest rate swaps – cash flow hedge	2028 –2053	2023	3M Euribor	6M Euribor	EUR	725,000	44,088
Interest rate swaps	2025 –2030	--	3M Euribor from -0.295% to 0.21%		EUR	69,990	6,958
Total receivables from derivatives							51,046

Derivative financial instruments - liabilities

	Due within maturity date	Mandatory break	Receiving leg	Paying leg	Currency	Nominal amount	Fair value (in EUR thousand)
Interest rate swaps – cash flow hedge	2030 – 2053	2023	6M Euribor from 2.609% to 2.652%		EUR	375,000	-12,112
Interest rate swaps	2025 – 2028	--	3M Euribor from 04% to 0.2%		EUR	23,476	-2,583
Total liabilities from derivatives							-14,695

As at 31 December 2021

CTP held the following derivative financial instruments:

Derivative financial instruments

	Due within maturity date	Receiving leg	Paying leg	Currency	Nominal amount	Fair value (in EUR thousand)
Interest rate swaps	2025 – 2026	3M Euribor from -0.295% to -0.11%		EUR	61,303	172
Total receivables from derivatives						172

32. INCOME TAXES

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets against current income tax liabilities and when the deferred income taxes relate to the same fiscal authority.

Deferred tax assets and liabilities

The recognised deferred tax assets and liabilities are attributable to the following:

In EUR thousand

	2022	2021
	Assets Liability Net	Assets Liability Net
Investment property	11,688 -892,612 -880,924	8,722 -734,501 -725,779
Tax losses	10,987 -- 10,987	9,510 -- 9,510
Property, plant and equipment	35 -- 35	1,153 -- 1,153
Other (receivables, hedge accounting etc.)	16,599 -42,701 -26,102	16,913 -24,518 -7,605
Tax asset/(liabilities)	39,309 -935,313 -896,004	36,298 -759,019 -722,721
Set- off of tax	-21,458 21,458 --	-12,246 12,246 --
Net tax assets/ (liabilities)	17,851 -913,855 -896,004	24,052 -746,773 -722,721

Movement in Deferred tax during the year recognised in profit and loss, in equity and in OCI

In EUR thousand

	Balance as at 1 January 2022	Change in temporary differences	Change through business combination	Deferred tax recognised in OCI	Effect of changes in FX rates	Balance as at 31 December 2022
Investment property	-725,779	-149,348	99	--	-5,896	-880,924
401 Financial Statements
Tax losses	9,510	1,400	--	--	77	10,987
Property, plant and equipment	1,153	-1,318	--	191	9	35
Other (receivables, hedge accounting etc.)	-7,605	-10,145	-40	-8,250	-62	-26,102
Total	-722,721	-159,411	59	-8,059	-5,872	-896,004

In EUR thousand

	Balance as at 1 January 2021	Change in temporary differences	Change through business combination	Deferred tax recognised in OCI	Effect of changes in FX rates	Balance as at 31 December 2021
Investment property	-500,129	-217,223	-753	--	-7,674	-725,779
Tax losses	10,321	-1,005	36	--	158	9,510
Property, plant and equipment	-2,189	5,148	--	-1,772	-34	1,153
Other (receivables, hedge accounting etc.)	1,640	-9,270	--	--	25	-7,605
Total	-490,357	-222,350	-717	-1,772	-7,525	-722,721

Unrecognised deferred tax assets

Deferred tax assets were not recognised in respect of the following items, as it is improbable that future taxable profit will be available against which the Group can use the benefits.

In EUR thousand

	2022	2021
	Gross amount Tax effect	Gross amount Tax effect
Tax losses	24,319 4,222	26,427 4,257
Total	24,319 4,222	26,427 4,257

Tax losses carried forward

Tax losses for which no deferred tax asset was recognised expire as follows.

In EUR thousand

	2022	2021
	Expiry date	Expiry date
Expire	24,319	26,427
2023-2028		2022 - 2027
Never expire	--	--
Total	24,319	26,427

Amounts recognised in OCI

In EUR thousand

	2022	2021
	Gross amount Tax effect Net of tax	Gross amount Tax effect Net of tax
Items that will not be reclassified to profit or loss
Revaluation of PPE	-1,004	191
Items that are or may be reclassified to profit or loss
Change in Cash flow hedge reserve	31,977	-8,250
Change in Translation reserve	-7,465	1,296
402 Financial Statements

Current income tax assets and payables

The current income tax asset of EUR 6,175 thousand (2021 – EUR 7,260 thousand) represents the amount of income tax recoverable in respect of current and prior periods (i.e., the amount by which the advance payments made exceed income tax payable). The current income tax liabilities of EUR 16,518 thousand (2021 – EUR 18,289 thousand) represent payables in respect of current or prior periods (i.e., the amount by which the income tax payable exceeds advance payments made).

33. SUBSIDIARIES

The Company had the following investments in subsidiaries as at 31 December 2022 and 31 December 2021 respectively:

Subsidiaries	Country	2022	2021	Note
CTP Alpha GmbH	Austria	100%	100%
CTP Beta GmbH	Austria	100%	100%
CTP Delta GmbH	Austria	100%	100%
CTP Epsilon GmbH	Austria	100%	100%
CTP Eta GmbH	Austria	100%	0%	2/
CTP Gamma GmbH	Austria	100%	100%
CTP Invest Immobilien GmbH	Austria	100%	100%
CTP Iota GmbH	Austria	100%	0%	2/
CTP Theta GmbH	Austria	100%	0%	2/
CTP Zeta GmbH	Austria	100%	100%
CTP Invest EOOD	Bulgaria	100%	100%
CTPark Beta EOOD	Bulgaria	100%	100%
CTPark Delta EOOD	Bulgaria	100%	100%
CTPark Epsilon EOOD	Bulgaria	100%	100%
CTPark Eta EOOD	Bulgaria	100%	100%
CTPark Gamma EOOD	Bulgaria	100%	100%
CTPark Iota EOOD	Bulgaria	100%	100%
CTPark Kappa EOOD	Bulgaria	100%	100%
CTPark Lambda EOOD	Bulgaria	100%	100%
CTPark Sofia EOOD (formerly Transcapital Airport EOOD)	Bulgaria	100%	0%	1/
CTPark Sofia Ring Road EOOD (formerly Transcapital Ring Road EOOD)	Bulgaria	100%	0%	1/
CTPark Theta EOOD	Bulgaria	100%	100%
CTPark Zeta EOOD	Bulgaria	100%	100%
Project Vrajdebna EOOD	Bulgaria	100%	100%
Clubco, spol. s r.o.	Czech Republic	100%	100%
CTP Alpha, spol. s r.o.	Czech Republic	100%	100%
CTP Barrandov, spol. s r.o.	Czech Republic	100%	100%
CTP Beta, spol. s r.o. v likvidaci	Czech Republic	0%	100%	3/
CTP Bohemia North, spol. s r.o	Czech Republic	100%	100%
CTP Bohemia South, spol. s r.o.	Czech Republic	100%	100%
CTP Bohemia West, spol. s r.o.	Czech Republic	100%	100%
CTP Borská Pole, spol. s r.o.	Czech Republic	100%	100%
CTP CEE Properties, spol. s r.o.	Czech Republic	100%	100%
CTP CEE Sub Holding, spol. s r.o.	Czech Republic	100%	100%
CTP Domeq Brno, spol. s r.o.	Czech Republic	100%	100%
CTP Energy CZ, spol. s r.o. (formerly CTP VII, spol. s r.o.)	Czech Republic	100%	100%
CTP Forest, spol. s r.o.	Czech Republic	100%	100%
CTP Hotel Operations Brno, spol. s r.o.	Czech Republic	100%	100%
CTP Hotel Operations Pilsen, spol. s r.o.	Czech Republic	100%	100%
CTP Hotel Operations Prague spol. s r.o.	Czech Republic	100%	100%
CTP Hotel Pilsen, spol. s r.o.	Czech Republic	100%	100%
CTP Hotel Prague, spol. s r.o.	Czech Republic	100%	100%
CTP I, spol. s r.o. v likvidaci	Czech Republic	0%	100%	3/
403 Financial Statements
Subsidiaries	Country	2022	2021	Note
CTP II, spol. s r.o.	Czech Republic	100%	100%
CTP III, spol. s r.o.	Czech Republic	100%	100%
CTP Industrial Property CZ, spol. s.r.o.	Czech Republic	100%	100%
CTP Invest, spol. s r.o.	Czech Republic	100%	100%
CTP IQ Ostrava, spol. s r.o.	Czech Republic	100%	100%
CTP IV, spol. s r.o.	Czech Republic	100%	100%
CTP Moravia North, spol. s r.o.	Czech Republic	100%	100%
CTP Moravia South, spol. s r.o.	Czech Republic	100%	100%
CTP Pilsen Region, spol. s r.o.	Czech Republic	100%	100%
CTP Ponávka Business Park, spol. s r.o.	Czech Republic	100%	100%
CTP Portfolio Finance CZ, spol. s r.o.	Czech Republic	100%	100%
CTP Property Czech, spol. s r.o	Czech Republic	100%	100%
CTP Property Romania, spol. s r.o. v likvidaci	Czech Republic	0%	100%	3/
CTP Property Serbia, spol. s r.o. v likvidaci	Czech Republic	0%	100%	3/
CTP Solar I, a. s.	Czech Republic	100%	100%
CTP Solar II, a. s.	Czech Republic	100%	100%
CTP Solar III, spol. s r.o.	Czech Republic	100%	100%
CTP Solar, a.s. v likvidaci	Czech Republic	0%	100%	3/
CTP V, spol. s r.o.	Czech Republic	100%	100%
CTP VI, spol. s r.o.	Czech Republic	100%	100%
CTP VIII, spol. s r.o.	Czech Republic	100%	100%
CTP Vlněna Business Park, spol. s r.o.	Czech Republic	100%	100%
CTP Vysočina, spol. s r.o.	Czech Republic	100%	100%
CTP X, spol. s r.o.	Czech Republic	100%	100%
CTP XI, spol. s r.o.	Czech Republic	100%	100%
CTP XII, spol. s r.o.	Czech Republic
## Financial Statements

Subsidiaries

Country	2022	2021	Note
CTP XIII, spol. s r.o.	Czech Republic	100%	100%
CTP XIV, spol. s r.o.	Czech Republic	100%	100%
CTP XV, spol. s r.o.	Czech Republic	100%	100%
CTP XVI, spol. s r.o.	Czech Republic	100%	100%
CTP XVII, spol. s r.o.	Czech Republic	100%	100%
CTP XVIII, spol. s r.o.	Czech Republic	100%	100%
CTP XXII, spol. s r.o.	Czech Republic	100%	100%
CTP XXIII, spol. s r.o.	Czech Republic	100%	100%
CTP XXIV, spol. s r.o.	Czech Republic	100%	100%
CTPark Aš II, spol. s r.o.	Czech Republic	100%	100%
CTPark Blučina, spol. s r.o. (formerly CTP XXI, spol. s r.o.)	Czech Republic	100%	100%
CTPark Bor II, spol. s r.o.	Czech Republic	100%	100%
CTPark Bor III, spol. s r.o.	Czech Republic	0%	0%
CTPark Bor, spol. s r.o.	Czech Republic	100%	100%
CTPark Brno I, spol. s r.o.	Czech Republic	100%	100%
CTPark Brno II, spol. s r.o.	Czech Republic	100%	100%
CTPark Brno III, spol. s r.o.	Czech Republic	100%	100%
CTPark Brno Líšeň East, spol. s r.o.	Czech Republic	100%	100%
CTPark Brno Líšeň II, spol. s r.o.	Czech Republic	100%	100%
CTPark Brno Líšeň West, spol. s r.o.	Czech Republic	100%	100%
CTPark Brno Retail, spol. s r.o.	Czech Republic	100%	100%
CTPark České Velenice, spol. s r.o.	Czech Republic	100%	100%
CTPark Hranice, spol. s r.o.	Czech Republic	100%	100%
CTPark Chrastava a.s. (formerly RENWON a.s.)	Czech Republic	100%	100%
CTPark Lysá nad Labem, spol. s r.o.	Czech Republic	100%	100%
CTPark Mladá Boleslav, spol. s r.o.	Czech Republic	100%	100%
CTPark Modřice, spol. s r.o.	Czech Republic	100%	100%
CTPark Ostrava Poruba, spol. s r.o.	Czech Republic	100%	100%
CTPark Ostrava, spol. s r.o.	Czech Republic	100%	100%
CTPark Plzeň, spol. s r.o.	Czech Republic	100%	100%
CTPark Prague Airport, spol. s r.o.	Czech Republic	100%	100%
CTPark Prague East, spol. s r.o.	Czech Republic	100%	100%
CTPark Prague North II, spol. s r.o.	Czech Republic	100%	100%
CTPark Prague North III, spol. s r.o.	Czech Republic	100%	100%
CTPark Prague West, spol. s r.o.	Czech Republic	100%	100%
CTPark Stříbro, spol. s r. o.	Czech Republic	100%	100%
CTPersonnel Bor, spol. s r.o. v likvidaci	Czech Republic	0%	100%
CTZone Ostrava, spol. s r.o.	Czech Republic	100%	100%
KONČINY SPV, s.r.o.	Czech Republic	0%	0%
KRMELÍNSKÁ I s.r.o.	Czech Republic	100%	0%
Multidisplay s.r.o. v likvidaci	Czech Republic	0%	100%
PŘÍDANKY SPV, s.r.o.	Czech Republic	0%	100%
Spielberk Business Park II, spol. s r.o.	Czech Republic	100%	100%
Spielberk Business Park, spol. s r.o.	Czech Republic	100%	100%
CTP Invest	Egypt	100%	100%
CTP Real Estate	Egypt	100%	100%
CTP Real Estate Development	Egypt	100%	100%
Samesova OÜ	Estonia	100%	100%
Vojtova OÜ	Estonia	100%	100%
Zemankova OÜ	Estonia	100%	100%
CTP Alpha	France	100%	100%
CTP Beta	France	100%	100%
CTP France	France	100%	100%
CTP Germany GmbH	Germany	100%	100%
CTP Germany GmbH B.V. (formerly Deutsche Industrie Grundbesitz AG)	Germany	100%	0%
CTP Germany II GmbH	Germany	100%	100%
CTP Germany IV GmbH & Co. KG	Germany	0%	100%
CTP Germany III GmbH	Germany	0%	100%
CTP Germany IX GmbH	Germany	100%	100%
CTP Germany V GmbH	Germany	100%	100%
CTP Germany VI GmbH	Germany	100%	100%
CTP Germany VII GmbH	Germany	100%	100%
CTP Germany VIII GmbH	Germany	100%	100%
CTP Germany X GmbH	Germany	100%	100%
CTP Invest Germany GmbH	Germany	100%	100%
CTP Energy Hungary Kft (formerly CTP Solar Hungary Kft)	Hungary	100%	100%
CTP Management Hungary Kft.	Hungary	100%	100%
CTPark Alpha Kft.	Hungary	100%	100%
CTPark Arrabona Kft.	Hungary	100%	100%
CTPark Beta Kft.	Hungary	100%	100%
CTPark Biatorbágy Kft.	Hungary	100%	100%
CTPark Delta Kft.	Hungary	100%	100%
CTPark Eight Kft.	Hungary	100%	100%
CTPark Eighteen Kft.	Hungary	100%	100%
CTPark Eleven Kft.	Hungary	100%	100%
CTPark Fifteen Kft.	Hungary	100%	100%
CTPark Fourteen Kft	Hungary	100%	100%
CTPark Gamma Kft.	Hungary	100%	100%
CTPark Nine Kft.	Hungary	100%	100%
CTPark Nineteen Kft.	Hungary	100%	100%
CTPark Seven Kft.	Hungary	100%	100%
CTPark Seventeen kft.	Hungary	100%	100%
CTPark Sixteen Kft.	Hungary	100%	100%
CTPark Ten Kft.	Hungary	100%	100%
CTPark Thirteen Kft	Hungary	100%	100%
CTPark Thirty Kft.	Hungary	100%	0%
CTPark Thirty One Kft.	Hungary	100%	0%
CTPark Twelve Kft.	Hungary	100%	100%
CTPark Twenty Eight Kft.	Hungary	100%	0%
CTPark Twenty Five Kft.	Hungary	100%	100%
CTPark Twenty Four Kft.	Hungary	100%	100%
CTPark Twenty Kft.	Hungary	100%	100%
CTPark Twenty Nine Kft.	Hungary	100%	0%
CTPark Twenty One Kft.	Hungary	100%	100%
CTPark Twenty Seven Kft.	Hungary	100%	100%
CTPark Twenty Six Kft.	Hungary	100%	100%
CTPark Twenty Three Kft.	Hungary	100%	100%
CTPark Twenty Two Kft.	Hungary	100%	100%
Office Campus Real Estate Kft.	Hungary	100%	100%
CTP Alpha S.r.l.	Italy	100%	100%
CTP Beta S.r.l.	Italy	100%	100%
CTP Italy S.r.l.	Italy	100%	100%
Samesova SIA	Latvia	100%	100%
Vojtova SIA	Latvia	100%	100%
Zemankova SIA	Latvia	100%	100%
UAB Samesova	Lithuania	100%	100%
UAB Vojtova	Lithuania	100%	100%
UAB Zemankova	Lithuania	100%	100%
CTP ALC B.V. (formerly Amsterdam Logistic Cityhub B.V.)	Netherlands	100%	100%
CTP Alpha B.V.	Netherlands	100%	100%
CTP Baltic Holding B.V.	Netherlands	100%	100%
CTP Beta B.V.	Netherlands	100%	100%
CTP Energy B.V. (formerly CTP Iota B.V.)	Netherlands	100%	100%
CTP Epsilon B.V.	Netherlands	100%	100%
CTP Eta B.V.	Netherlands	100%	100%
CTP Gamma B.V.	Netherlands	100%	100%
CTP Invest B.V.	Netherlands	100%	100%
CTP Kappa B.V.	Netherlands	100%	100%
CTP Lambda B.V.	Netherlands	100%	100%
CTP Mediterranean Holding B.V.	Netherlands	100%	100%
CTP Mu BV.	Netherlands	100%	100%
CTP Portfolio Finance Czech B.V.	Netherlands	100%	100%
CTP Property B.V.	Netherlands	100%	100%
CTP Theta B.V.	Netherlands	100%	100%
CTP Turkish Holding B.V.	Netherlands	100%	100%
CTP Zeta B.V.	Netherlands	100%	100%
CTPark Bremen B.V. (formerly CTP Delta B.V.)	Netherlands	100%	100%
Multifin B.V.	Netherlands	100%	100%
CTP Beta Poland Sp. z o.o.	Poland	100%	100%
CTP Delta Poland Sp. z o.o.	Poland	100%	100%
CTP Energy Poland Sp. z o.o. (formerly CTP Omicron Poland Sp. z o.o.)	Poland	100%	100%
CTP Epsilon Poland Sp. z o.o.	Poland	100%	100%
CTP Eta Poland Sp. z o.o.	Poland	100%	100%
CTP Gamma Poland Sp. z o.o.	Poland	100%	100%
CTP Chi Poland Sp. z o.o. (formerly 7R Projekt 37 Sp. z o.o.)	Poland	100%	0%
CTP Invest Poland Sp. z o.o.	Poland	100%	100%
CTP Iota Poland Sp. z o.o.	Poland	100%	100%
CTP Kappa Poland Sp. z o.o.	Poland	100%	100%
CTP Lambda Poland Sp. z o.o.	Poland	100%	100%
CTP Mu Poland Sp. z o.o.	Poland	100%	100%
CTP Nu Poland Sp. z o.o.	Poland	100%	100%
CTP Omega Poland Sp. z o.o. (formerly 7R Projekt 31 Sp. z o.o.)	Poland	100%	0%
CTP Pi Poland Sp. z o.o.	Poland	100%	100%
CTP Property Alpha Poland Sp. z o.o. (formerly 7R Projekt 68 Sp. z o.o.)	Poland	100%	0%
CTP Property Beta Poland Sp. z o.o. (formerly 7R Projekt 64 Sp. z o.o.)	Poland	100%	0%
CTP Property Delta Poland Sp. z o.o. (formerly 7R projekt 41 Sp. z o.o.)	Poland	100%	0%
CTP Property Epsilon Poland Sp. z o.o. (formerly 7R projekt 44 Sp. z o.o.)	Poland	100%	0%
CTP Property Eta Poland Sp. z o.o. (formerly 7R Projekt 56 Sp. z o.o.)	Poland	100%	0%
CTP Property Gamma Poland Sp. z o.o. (formerly 7R Projekt 30 Sp. z o.o.)	Poland	100%	0%
CTP Property Zeta Poland Sp. z o.o. (formerly 7R Projekt 24 Sp. z o.o.)	Poland	100%	0%
CTP Rho Poland Sp. z o.o.	Poland	100%	100%
CTP Sigma Poland Sp. z o.o.	Poland	100%	100%
CTP Tau Poland Sp. z o.o. (formerly Dafne 23 Sp. z o.o.)	Poland	100%	0%
CTP Theta Poland Sp. z o.o. w likwidacji	Poland	100%	100%
CTP Xi Poland Sp. z o.o.	Poland	100%	100%
CTP Zeta Poland Sp. z o.o.	Poland	100%	100%
CTPark Iłowa Sp. z o.o.	Poland	100%	100%
CTPark Opole Sp. z o.o.	Poland	100%	100%
CTPark Zabrze Sp. z o.o.	Poland	100%	100%
CTP CONTRACTORS SRL	Romania	100%	100%
CTP INVEST BUCHAREST SRL	Romania	100%	100%
CTP SOLAR SRL	Romania	100%	100%
CTPARK ALPHA SRL	Romania	100%	100%
CTPARK ARAD NORTH SRL	Romania	100%	100%
CTPARK BETA SRL	Romania	100%	100%
CTPARK BRASOV SRL	Romania	100%	100%
CTPARK BRASOV WEST SRL	Romania	100%	100%
CTPARK BUCHAREST A1 SRL	Romania	100%	100%
CTPARK BUCHAREST II SRL	Romania	100%	100%
CTPARK BUCHAREST SOUTH II SRL	Romania	100%	100%
CTPARK BUCHAREST SRL	Romania	100%	100%
CTPARK BUCHAREST UPSILON SRL	Romania	100%	100%
CTPARK BUCHAREST WEST I SRL	Romania	100%	100%
CTPARK BUCHAREST WEST II SRL	Romania	100%	100%
CTPARK CRAIOVA EAST SRL	Romania	100%	100%
CTPARK DELTA SRL	Romania	100%	100%
CTPARK DEVA II SRL	Romania	100%	100%
CTPARK EPSILON SRL	Romania	100%	100%
CTPARK ETA SRL	Romania	100%	100%
CTPARK GAMMA SRL	Romania	100%	100%
CTPARK CHITILA SRL (formerly Eglast Investment SRL)	Romania	100%	0%
CTPARK IOTA SRL	Romania	100%	100%
CTPARK KAPPA SRL	Romania	100%	100%
CTPARK KM23 NORTH SRL	Romania	100%	100%
CTPARK LAMBDA SRL	Romania	100%	100%
CTPARK MANAGEMENT AFUMATI SRL	Romania	100%	100%
CTPARK MANAGEMENT TURDA SRL	Romania	100%	100%
CTPARK MIU SRL	Romania	100%	100%
CTPARK OMEGA SRL	Romania	100%	100%
CTPARK OMICRON SRL	Romania	100%	100%
CTPARK ORADEA NORTH SRL	Romania	100%	100%
CTPARK PHI SRL	Romania	100%	100%
CTPARK PITESTI SRL (formerly Dani Global Development SRL)	Romania	100%	0%
CTPARK PSI SRL	Romania	100%	100%
CTPARK RHO SRL	Romania	100%	100%
CTPARK SIBIU EAST SRL	Romania	100%	100%
CTPARK SIGMA SRL	Romania	100%	100%
CTPARK TAU SRL	Romania	100%	100%
CTPARK THETA SRL	Romania	100%	100%
CTPARK TIMISOARA EAST SRL	Romania	100%	100%
CTPARK ZETA SRL	Romania	100%	100%
FOREST PROPERTY INVEST SRL	Romania	100%	100%
Universal Management SRL	Romania	100%	100%
Banovac projekat d.o.o. Beograd-Novi Beograd	Serbia	0%	0%
CTP Alpha d.o.o. Beograd-Novi Beograd	Serbia	100%	100%
CTP Beta d.o.o. Beograd-Novi Beograd	Serbia	100%	100%
CTP Delta d.o.o. Beograd-Novi Beograd	Serbia	100%	100%
CTP Energy d.o.o. Beograd-Novi Beograd (formerly CTP Iota d.o.o.	Serbia
```## 407 Financial Statements

Subsidiaries

Subsidiaries	Country	2022	2021	Note
CTP Epsilon d.o.o.	Serbia	100%	100%
CTP Gamma d.o.o.	Serbia	100%	100%
CTP Invest d.o.o.	Serbia	100%	100%
CTP Kappa d.o.o.	Serbia	100%	100%
CTP Lambda d.o.o.	Serbia	100%	100%
CTP Omega d.o.o.	Serbia	100%	100%
CTP Omicron d.o.o.	Serbia	100%	100%
CTP Phi d.o.o.	Serbia	100%	100%
CTP Property Alpha d.o.o.	Serbia	100%	100%
CTP Property Beta d.o.o.	Serbia	100%	0%	2/
CTP Property Delta d.o.o.	Serbia	100%	0%	2/
CTP Property Gamma d.o.o.	Serbia	100%	0%	2/
CTP Rho d.o.o.	Serbia	100%	100%
CTP Sigma d.o.o.	Serbia	100%	100%
CTP Tau d.o.o.	Serbia	100%	100%
CTP Zeta d.o.o.	Serbia	100%	100%
Levante Logistics d.o.o.	Serbia	0%	0%	6/
CTP Alpha SK, spol. s r.o.	Slovakia	100%	100%
CTP Dunaj s.r.o.	Slovakia	100%	100%
CTP Invest SK, spol. s r.o.	Slovakia	100%	100%
CTP Slovakia, s.r.o.	Slovakia	100%	100%
CTP Solar SK, spol. s r.o.	Slovakia	100%	100%
CTPark Banská Bystrica, spol. s r.o.	Slovakia	100%	100%
CTPark Bratislava East, spol. s r.o.	Slovakia	100%	100%
CTPark Bratislava, spol. s r.o.	Slovakia	100%	100%
CTPark Čierny Les, spol. s r.o.	Slovakia	100%	100%
CTPark Hlohovec, spol. s r.o.	Slovakia	100%	100%
CTPark Košice, spol. s r. o.	Slovakia	100%	100%
CTPark Krásno nad Kysucou, spol. s r.o.	Slovakia	100%	100%
CTPark Land SK 1, spol. s r.o.	Slovakia	100%	100%
CTPark Land SK 2, spol. s r.o.	Slovakia	100%	100%
CTPark Námestovo, spol. s r.o.	Slovakia	100%	100%
CTPark Nitra, spol. s r. o.	Slovakia	100%	100%
CTPark Nove Mesto, spol. s.r.o.	Slovakia	100%	100%
CTPark Prešov North, spol. s r.o. (formerly CTP Gama s. r. o.)	Slovakia	100%	100%
CTPark Prešov s. r. o.	Slovakia	100%	100%
CTPark Trnava II, spol. s r.o.	Slovakia	100%	100%
CTPark Žilina Airport II, spol. s r.o.	Slovakia	100%	100%
CTPark Žilina Airport, spol. s r. o.	Slovakia	100%	100%
CTP Ljubljana d.o.o.	Slovenia	100%	100%
CTPark Alpha, d.o.o.	Slovenia	100%	100%
Global Guanaco, S.L.U.	Spain	100%	100%	5/
CTP ALPHA GAYRİMENKUL VE İN AAT LİMİTED İRKETİ	Turkey	100%	100%	5/
CTP BETA GAYRİMENKUL VE İN AAT LİMİTED İRKETİ	Turkey	100%	100%	5/
CTP GAMMA GAYRİMENKUL VE İN AAT LİMİTED İRKETİ	Turkey	100%	100%	5/
CTP Alpha Ltd	United Kingdom	100%	100%	5/
CTP Beta Ltd	United Kingdom	100%	100%	5/
CTP Invest Ltd	United Kingdom	100%	100%	5/

1/ Newly acquired/consolidated subsidiaries in 2022
2/ Newly established subsidiaries in 2022
3/ Disposed subsidiaries in 2022
4/ Newly established subsidiaries in 2022 not consolidated due to their limited size/activities
5/ Not consolidated subsidiaries
6) Newly acquired/established subsidiaries, subsequently merged with existing company in the Group during 2022
7) Subsidiaries merged with existing subsidiary in 2022

408 Financial Statements

34. RELATED PARTIES

CTP has a related party relationship with its Directors, Executives and other companies of which Multivest B.V. is an equity holder. This entity is the ultimate parent of CTP. In 2022 and 2021, CTP had the following interest income and interest expense with related parties:

In EUR thousand	2022 Revenues	2022 Expenses	2021 Revenues	2021 Expenses
CTP Holding B.V.	1,712	--	1,707	--
CTP Germany IV GmbH	23	--	--	--
CTP Germany II GmbH	--	--	234	--
CTP Germany III GmbH	--	--	35	--
Multivest B.V.	601	--	500	-383
CTP Solar, a.s.	--	--	9	-2
Other	5	--	5	--
Total	2,341	--	2,490	-385

As at 31 December 2022 and 2021, CTP had the following short-term receivables/payables from/to related parties:

In EUR thousand	2022 Receivables	2022 Payables	2021 Receivables	2021 Payables
Remon Vos	322	--	--	--
CTP Invest Ltd.	7	--	--	--
Multivest B.V.	3	--	515	--
CTP Holding B.V.	--	--	13	--
Total	332	--	528	--

As at 31 December 2022 and 2021, CTP had the following long-term receivables/payables from/to related parties:

In EUR thousand	2022 Receivables	2022 Payables	2021 Receivables	2021 Payables
CTP Holding B.V.	44,853	-3	46,776	-3
CTP Invest Ltd.	292	--	--	--
CTP Alpha Ltd.	60	--	--	--
CTP Germany III GmbH	--	--	348	--
CTP Germany IV GmbH	--	--	--	-15
Other	40	--	--	--
Total	45,245	-3	47,124	-18

Other non-current non-trade receivables from related parties and non-trade liabilities to related parties are interest-bearing and bear an arm’s length interest in the range of 1.2% to 5.6%, depending on maturity, collateralisation, subordination, country risk and other specifics.

Key management personnel compensation

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly, including any director. Average headcount per year of key management is 7 for 2022 (2021 – 5).

Key management personnel compensation comprises the following:

In EUR thousand	2022 Personnel compensation	2021 Personnel compensation
Short-term employee benefits	3,175	1,365
Total	3,175	1,365

The Company granted for 2022 and 2021 a conditional share award under LTIP to a Director (refer to Note 24). As at 31 December, Board Directors held shares in CTP N.V. as follows (directly or through other entities):

	Nr. of shares	Price per 1 share	Value in EUR thousand
2022	335,804,718	11.04	3,707,284
2021	332,911,079	18.70	6,225,437

In the Number of shares held by Board of Directors are included also shares held by CTP Holding B.V.

409 Financial Statements

35. FINANCIAL INSTRUMENTS RISK MANAGEMENT OBJECTIVES AND POLICIES

Exposure to various risks arises in the normal course of CTP’s business. These risks include credit risk, capital risk, operational risk, market risk including foreign currency risk, interest rate and liquidity risk.

Credit risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a financial loss to CTP. The Group has a credit policy in place and the exposure to credit risk is monitored on an on-going basis. Credit evaluations are performed for all customers requiring credit over a certain amount. CTP usually does not require collateral from its tenants. For most of the tenants, a parent company guarantee, or a solvent tenant group company guarantee is in place. Investments can be made only in liquid securities and only with counterparties that have a credit rating equal to or better than CTP. Given their high credit ratings, the management does not expect any counterparty to fail to meet its obligations. As at the reporting date there were no significant concentrations of credit risk towards third parties. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position. CTP has bank accounts with prestigious banking institutions, where no risk is expected. CTP monitors regularly the financial position of the related parties and the related credit risk.

Credit risk concentration:

In EUR thousand	2022	2021
Amounts due from banks	661,972	893,902
Amounts due from financial derivatives	51,046	172
Amounts due from related parties	45,577	47,652
Amounts due from third parties	54,537	36,417
Amounts due from tax institutions	74,021	53,154
Total	887,153	1,031,297

Amounts due from banks include cash and cash equivalents, including restricted cash reported under non-current trade and other receivables, as at 31 December of the respective year. CTP discloses significant amounts of receivables to related parties. Receivables towards related parties are partly covered by the liabilities to related parties and assets held by the related parties. If the related parties breach the repayment of CTP receivables, and CTP is not able to set off receivables against liabilities, CTP will be exposed to significant credit risk. CTP does not expect breach of repayment. Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s receivables from customers. The carrying amounts of financial assets and contract assets represent the maximum credit exposure.

Impairment losses on financial assets recognised in profit or loss were as follows:

In EUR thousand	2022	2021
Impairment to trade receivables	5,580	4,137
Total	5,580	4,137

The movement in the allowance for impairment in respect of trade receivables during the year was as follows:

In EUR thousand	2022	2021
Balance as at 1 January	4,137	3,257
Net remeasurement of loss allowance	1,443	880
Balance at 31 December	5,580	4,137

The following table provides information about the exposure to credit risk and ECLs for financial assets as at 31 December 2022 and 2021 respectively:

In EUR thousand for the year 2022

Stage	Weighted average loss rate	Gross amount	Impairment loss allowance	Net amount
Cash and cash equivalents	Low risk	0%	660,631	--
Restricted cash	Low risk	0%	1,341	--
Receivables due from related parties	Low risk	0%	45,577	--
Trade receivables *	Low to Fair risk	9%	60,117	-5,580
Total			767,666	-5,580

In EUR thousand for the year 2021

Stage	Weighted average loss rate	Gross amount	Impairment loss allowance	Net amount
Cash and cash equivalents	Low risk	0%	892,816	--
Restricted cash	Low risk	0%	1,086	--
Receivables due from related parties	Low risk	0%	47,652	--
Trade receivables *	Low to Fair risk	10%	40,554	-4,137
Total			982,108	-4,137

* Weighted average loss rate related to Trade receivables is calculated in Note 21.

Capital risk

CTP’s policy is to maintain a strong capital base, to maintain creditor and market confidence and to sustain future development of the business.

410 Financial Statements

411 Financial StatementsCTP manages its capital to ensure that entities in CTP will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. CTP’s overall strategy remains unchanged compared to 2021. CTP as property investor is mainly influenced by the fact that it leverages its project financing by using bank debts or bonds. There is no real seasonality impact on its financial position, but the volatility of financial markets might positively or negatively influence CTP’s financial position. The capital structure of CTP consists of a debt, which includes the borrowings disclosed in Note 27 and bonds disclosed in Note 28. The Group has secured bank loans that contain loan covenants. Under the agreements, the covenants are monitored on a regular basis to ensure compliance with these agreements.

Net gearing ratio

The gearing ratio calculated below compares debt to equity, where a debt is defined to be the sum of long- term and short-term liabilities, and equity includes all capital and reserves of the Group excluding non-con- trolling interests.

In EUR thousand	2022	2021
Debt	7,244,149	5,579,815
Equity	5,284,517	4,106,830
Gearing ratio	137%	136%

The net loan to value (value is the fair value of the properties) ratio of CTP properties (calculated as a share of interest-bearing loans from financial institutions and bonds issued adjusted for cash and cash equiva- lents available as at 31 December of the respective year on investment property, investment property under construction and plant and equipment) is approximately 45% at 31 December 2022 (2021 – 43%), which is seen as appropriate within CTP’s financial markets. As the properties are leased for a long period and CTP agrees long-term financing with its financial institu- tions. CTP expects to fulfill financial covenants in the future.

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect CTP’s income or the value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimising returns.

Foreign currency risk

Currency risk is managed mainly by making, when possible, investments in the same currency as the financ- ing sources used. The currency risk during the period of repayment of liabilities to third parties is usually offset by generating revenues denominated in the same underlying currency. CTP pays for construction of buildings in local currency and therefore has foreign currency risk during the construction period. As at 31 December 2022, CTP analysed the impact of the foreign exchange rate variances on its assets and liabilities and on its statement of comprehensive income. The impact was judged insignificant, as most financial instruments are denominated in EUR. Foreign currency exchange risk is limited and arises from recognised monetary assets and liabilities. Curren- cy risk disclosed is based on the functional currency (EUR) of the Group’s operating subsidiaries.

412 Financial Statements

In EUR thousand	2022	CZK	RON	PLN	HUF	RSD	BGN	Total
Trade and other receivables		38,419	42,774	43,490	21,184	19,145	17,273	182,285
Cash and cash equivalents		10,766	14,302	16,379	7,894	4,471	3,270	57,082
Loans provided to third parties		--	--	--	--	69	--	69
Trade and other receivables from related parties		322	--	--	--	--	--	322
Total financial assets		49,507	57,076	59,869	29,078	23,685	20,543	239,758
Trade and other payables		-86,996	-44,723	-13,176	-13,968	-12,918	-8,543	-180,324
Total financial liabilities		-86,996	-44,723	-13,176	-13,968	-12,918	-8,543	-180,324
Net position		-37,489	12,353	46,693	15,110	10,767	12,000	59,434
FX hedge		--	--	--	--	--	--	--
Net position after FX hedge		-37,489	12,353	46,693	15,110	10,767	12,000	59,434

In EUR thousand	2021	CZK	RON	PLN	HUF	USD	Total
Trade and other receivables		33,981	24,934	12,901	13,455	33,900	119,171
Cash and cash equivalents		12,940	5,385	240	7,205	--	25,770
Financial derivatives		--	--	--	129	--	129
Total financial assets		46,921	30,319	13,141	20,789	33,900	145,070
Trade and other payables		-76,842	-38,471	-1,928	-7,845	--	-125,086
Total financial liabilities		-76,842	-38,471	-1,928	-7,845	--	-125,086
Net position		-29,921	-8,152	11,213	12,944	33,900	19,984
FX hedge		--	--	--	--	--	--
Net position after FX hedge		-29,921	-8,152	11,213	12,944	33,900	19,984

Sensitivity analysis

A strengthening/(weakening) of EUR, as indicated below, against other currencies at the reporting date would have increased/(decreased) the equity by the amounts shown in the following table. This analysis is based on foreign currency exchange rate variances that the Group considers reasonably likely at the end of the reporting period. The analysis assumes that all other variables remain constant, including interest rates.

	2022	2021
Net position on financial assets and liabilities denominated in EUR	59,434	19,984
Effect on profit or loss and on equity of:
CZK weakening by 5%	-1,874	-1,496
CZK strengthening by 5%	1,874	1,496
RON weakening by 5%	618	-408
RON strengthening by 5%	-618	408
PLN weakening by 5%	2,335	561
PLN strengthening by 5%	-2,335	-561
HUF weakening by 5%	756	647
HUF strengthening by 5%	-756	-647
RSD weakening by 5%	538	--
RSD strengthening by 5%	-538	--
BGN weakening by 5%	600	--
BGN strengthening by 5%	-600	--
USD weakening by 5%	--	1,695
USD strengthening by 5%	--	-1,695

413 Financial Statements

Interest rate risk

The interest rate risk arises mainly from the floating interest rates applicable to debt financing. Bank loans usually have flexible interest rates based on EURIBOR rates for the reference period from one month to six months increased by a fixed margin. In 2022 and 2021, CTP entered transactions with financial institutions to hedge the interest rate risk (refer to Note 31). CTP mitigated the interest rate risk by holding interest rate swaps in 2022 and 2021. The interest rate profile of the Group’s interest-bearing financial instruments is as follows.

Fixed-rate instruments	2022	2021
Receivables due from related parties	45,577	47,652
Loans owed to related parties	-3	-18
Bonds issued	-3,981,350	-3,381,692
Bank loans with fixed interest rate	-1,631,946	-1,047,636
Bank loans covered by IRS	-267,207	-61,303

Variable-rate instruments	2022	2021
Loans not covered by IRS	--	-29,659

Sensitivity analysis

A reasonably possible change of 0.25% in the interest rates at the reporting date would have increased (decreased) profit by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.

1.1.2022 - 31.12.2022

Interest rate sensitivity analysis of bank loans and borrowings	In EUR thousand	Bank loans	Covered by interest rate swaps and fixed rate % hedge	Loans with variable interest	Effect on result in case of interest rate increase by 25bp	Effect on result in case of interest rate decrease by 25bp
Interest-bearing loans and borrowings	1,899,153	1,899,153	100%	--	--	--
Total	1,899,153	1,899,153	100%	--	--	--

1.1.2021 - 31.12.2021

Interest rate sensitivity analysis of bank loans and borrowings	In EUR thousand	Bank loans	Covered by interest rate swaps and fixed rate % hedge	Loans with variable interest	Effect on result in case of interest rate increase by 25bp	Effect on result in case of interest rate decrease by 25bp
Interest-bearing loans and borrowings	1,138,598	1,108,939	97.4%	29,659	-74	74
Total	1,138,598	1,108,939	97.4%	29,659	-74	74

414 Financial Statements

Cash flow hedges

At 31 December 2022, the Group held the following instruments to hedge exposures to changes in interest rates.

	2022	1-6 months	6 - 12 months	More than one year
Interest rate swaps
Net exposure (in EUR thousand)	--	750,000	--	--
Average fixed interest rate	--	2.322%	--	--

At 31 December 2021, the Group did not hold any hedging instruments. The amounts at the reporting date relating to items designated as hedged items were as follows.

31 December 2022	Change in value used for calculating hedge ineffectiveness
Cash flow hedge reserve
Costs of hedging hedge reserve
Balances remaining in the cash flow hedge reserve from hedging relationships for which hedge accounting is no longer applied
Interest rate risk
Variable-rate instruments	--

The amounts relating to items designated as hedging instruments and hedge ineffectiveness were as follows.

	2022	Nominal amount	Carrying amount	Change in the value of the hedging instrument recognised in OCI	Hedge ineffectiveness recognised in profit or loss	Cost of hedging recognised in OCI	Amount reclassified from hedging reserve to profit or loss	Amount reclassified from costs of hedging reserve to profit or loss
In EUR thousand
Interest rate risk
Interest rate swaps	1,100,000	44,088	-12,111	31,977	--	--	--	--

The following table provides the reconciliation by risk category of components of equity and analysis of OCI items, net of tax, resulting from cash flow hedge accounting.

In EUR thousand	2022	Hedging reserve	Cost of hedging reserve	Cash flow hedges – interest rate risk
Balance at 1 January 2022		--	--
Changes in fair value		31,977	--
Amount reclassified to profit or loss		--	--
Tax on movements on reserves during the year		-8,250	--
Balance at 31 December 2022		23,727	--

415 Financial Statements

Hedged risk

The Company’s risk management strategy is to hedge variability in interest payments due to changes in EURIBOR resulting from future issuance of series of consecutive bonds/loans expected to be issued in the period defined per individual hedging relationship. Credit margin on the bonds is not subject to this hedge.

Hedge effectiveness measurement

Cumulative change in fair value of the hedged item will be measured by a so-called hypothetical derivative. This hypothetical derivative has a zero fair value at the hedge inception and represents hedged risk with- in the hedged item.# Fair value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair values are obtained, as appropriate, from quoted market prices, discounted cash-flow projections and other valuation models. To estimate the fair value of individual classes of financial instruments, the following methods and assumptions are used:

Cash and cash equivalents, short-term investments

The book value of cash and other short-term investments approximates their fair value, as these financial instruments have a relatively short maturity.

Receivables and payables

The book value of short-term receivables and payables approximates their fair value, as these financial instruments have a short maturity.

Short-term loans

The book value approximates their fair value, as these instruments have a floating interest rate and a short maturity.

Long-term loans

The fair value of long term loans as at 31 December 2022 is EUR 1,545,444 thousand (2021 – EUR 1,138,598 thousand). For details refer to Note 27.

Bonds

The fair value of bonds issued as at 31 December 2022 is EUR 3,093,340 thousand (2021 – EUR 3,385,163 thousand). For details refer to Note 28.

Derivatives

The fair value of derivatives is based on fair value quotes from counterparties which are compared to the results of the internal valuation model using market data from an independent recognized market data agency.

Investment property and investment property under development

Investment property and investment property under development are stated at fair value (refer to Note 17 and Note 18).

Impact of war conflict in Ukraine

CTP group was largely unaffected by the war in Ukraine in 2022, as it has no assets with direct exposure in Ukraine or in Russia and the Group’s expansion plans are for properties distant from these conflict areas. Nevertheless, the Group monitors development to mitigate any actual or potential undirect impacts of the conflict, such as geopolitical risk, inflation or energy prices. As part of appropriate risk management measures, and identifying and managing risk, the Directors have considered possible events and conditions for the purpose of identifying whether these events and conditions affect or may affect the future performance of the Group. In making this assessment, the following periods were considered:

• the period up to 12 months after the end of the reporting period;
• the period up to 12 months after the date of this report.

The following risks were assessed:

• Increased geopolitical risk as a result of Russia’s invasion of Ukraine, have forced occupiers to review where and how they manufacture the goods they produce, as well as the ability of their supply chains to maintain efficiency whilst withstanding disruption and supply side shocks. This enduring occupational demand from a wide range of occupiers, is coupled with the constrained supply of appropriate assets situated in sought after locations. With fewer vacant buildings that meet the needs of modern occupiers, the limited availability of land suitable for the development of urban assets in densely populated areas, together with the increasing resistance from municipalities and local communities to consent to large, ad hoc big box assets result in persistent barriers to entry in terms of developing new stock.
• The increase in energy prices in 2022 had minimal direct effect on CTP, as its operations are not energy intensive. Going forward, CTP has ambitious plans to produce solar energy using photovoltaic panels installed on the rooftops of the Group’s properties. They are much more strongly embedding ESG considerations into real estate decisions with regards to every aspect of the property, from building certification to work conditions and from CSR to governance. Following the war in Ukraine and the exponential energy price increases, energy security and efficiency is an increasing consideration with 76% of occupiers confirming that they are willing to pay rent premium to switch to green sources of energy in current locations. This in turn continues to support growing demand for modern, highly sustainable and energy efficient warehouse space, with green building certifications along with surrounding green space and employee amenities all well integrated into surrounding landscapes.
• Signals of deterioration of credit risk and debtor payment behaviour
  CTP experienced no material delays in rental collection. Majority of receivables were paid within the contracted payment period + 2 weeks. tenant payment discipline kept its normal pattern, no sign of deterioration.
• Disruptions in the Company’s core processes (such as construction/property management/offices/ work force)
  An indirect effect of the war in Ukraine was a temporary price increase of construction materials at the beginning of the year due to supply disruptions. CTP acts as general contractor, with in-house teams taking full responsibility and control over the construction process. This, in combination with the central procurement of supplies directly from multiple sources, often by-passing distributors, protected the target YoC, also thanks to significant rental increases. Prices and delivery times decreased from their peaks but remained above 2021 levels throughout the year. CTP mitigates risk associated with high inflation via the use of indexation clauses in roughly 50% of its lease agreements. CTP expects the percentage of indexed lease agreements to increase over time, as new contracts have by default this double indexation clause included. Apart from initial minor delays in construction activities due to temporarily increased costs, construction resumed to normal pace quickly. When reviewing its full effect, no material disruptions were recorded.
• Issues with providers of financing, loan covenants and credit facilities
  CTP Group continuously and successfully renegotiates matured loans and bonds. This provided another indicator of CTP’s sound financial position and trust by investors. CTP’s business profile is resilient, as it benefits from a diversified portfolio (in terms of geographical location and tenants) and does not depend on any single individual tenant or location in isolation. The independent valuers of the industrial portfolio did not include a material valuation uncertainty statement in the valuations as at 31 December 2022, which confirms that the appraiser has sufficient market evidence and the estimation uncertainty is comparable to the period before the war in Ukraine. As at the date of publication of these financial results, CTP has not experienced any material operational or financial impact on its business. The Group will continue to monitor the situation and revise its approach to minimise any negative effects as events unfold. Management is convinced that current uncertainties related to war in Ukraine do not impact the presented consolidated financial statements as at 31 December 2022.

36. CONTINGENT LIABILITIES

Contracted work

As at 31 December 2022, the Group had contracted work with external suppliers relating to realising a construction project, which was not performed as at the year end, with a value of EUR 398,794 thousand (2021 – EUR 314,240 thousand).# GUARANTEE AGREEMENTS AND PLEDGES

Guarantee provided Under Guarantee agreements concluded following the sale of a portfolio A, CTP Invest, spol. s r.o. and CTP CEE Properties, spol. s r.o. provided specific guarantees to the buyer of the entities being the companies established by Deka Immobilien Investment GmbH and WestInvest Gesellschaft für Investmentfonds GmbH. The specific guarantees include (i) Rental Guarantee (Vacant Premises, Rent Shortfall, Outstanding Tenant Incentives) and (ii) Tenant Guarantees (Default, Break Options, Non-Solicitation). The duration of the guar- antees is until 15 November 2028, unless they terminate earlier pursuant to the agreement.

In 2022, CTP N.V. issued guarantee in favor of Coöperatieve Rabobank U.A. connected with financing of development activities of CTP ALC B.V. Guaranteed obligations represents:

• any amount due by the CTP ALC B.V. under and in connection with the Finance Documents for a max- imum amount of the Commitment minus the Reserve Amount,
• any interest, fees (including for the avoidance of doubt any default interest) and any amount paya- ble under any Hedging Agreement due by the CTP ALC B.V. under and in connection with the Facility Agreement.

Facility agreement is agreed of EUR 175,000,000 between ABN AMRO Bank N.V., Coöperatieve Rabobank U.A. and CTP ALC B.V.

In 2021, the Company had no off-balance sheet assets, nor liabilities to be presented in these financial statements.

419 Financial Statements

37. PLEDGES

Shares, receivables, future receivables and other assets in some of the subsidiaries are pledged in favour of the financing institutions for securing the bank loans received by them (refer to Note 27). As at the date of these financial statements, the assets in the following companies are pledged:

Company	Pledge in favour of
CTP ALC B.V.	COOPERATIEVE RABOBANK U.A. (as agent) + others
CTP Bohemia North, spol. s r.o.	Komerční banka, a.s. (as agent) + others
CTP Bohemia West, spol. s r.o.	Komerční banka, a.s. (as agent) + others
CTP Germany II GmbH	Volksbank Jever eG
CTP Moravia South, spol. s r.o.	Komerční banka, a.s. (as agent) + others
CTP Slovakia, s. r. o.	Tatra banka, a.s.
CTP Vysočina, spol. s r.o.	Komerční banka, a.s. (as agent) + others
CTPark Alpha Kft.	Unicredit Bank Hungary Zrt.
CTPark Arrabona Kft.	Unicredit Bank Hungary Zrt.
CTPark Bor, spol. s r.o.	Aareal Bank AG
CTPark Brno I, spol. s r.o.	Komerční banka, a.s. (as agent) + others
CTPark Brno II, spol. s r.o.	Komerční banka, a.s. (as agent) + others
CTPark Modřice, spol. s r.o.	Aareal Bank AG
CTPark Námestovo spol. s r.o.	Tatra banka, a.s.
CTPark Ostrava, spol. s r.o.	Komerční banka, a.s. (as agent) + others
CTPark Prague East, spol. s r.o.	Komerční banka, a.s. (as agent) + others
CTPark Seven Kft.	Unicredit Bank Hungary Zrt.
	Deutsche Industrie Grundbesitz AG
	Austrian Anadi Bank AG
	Deutsche Industrie Grundbesitz AG
	Berliner Sparkasse
	Deutsche Industrie Grundbesitz AG
	Berliner Volksbank
	Deutsche Industrie Grundbesitz AG
	Hypo Vorarlberg Bank AG
	Deutsche Industrie Grundbesitz AG
	Kreissparkasse Ostalb
	Deutsche Industrie Grundbesitz AG
	Kreissparkasse St. Wendel
	Deutsche Industrie Grundbesitz AG
	Landessparkasse zu Oldenburg
	Deutsche Industrie Grundbesitz AG
	Sparkasse Düren
	Deutsche Industrie Grundbesitz AG
	Sparkasse Esslingen-Nürtingen
	Deutsche Industrie Grundbesitz AG
	Sparkasse Hildesheim Goslar Peine
	Deutsche Industrie Grundbesitz AG
	Sparkasse Ingolstadt Eichstätt
	Deutsche Industrie Grundbesitz AG
	Sparkasse Neubrandenburg-Demmin
	Deutsche Industrie Grundbesitz AG
	Sparkasse UnnaKamen
	Deutsche Industrie Grundbesitz AG
	Stadtsparkasse Düsseldorf
	Deutsche Industrie Grundbesitz AG
	VerbundVolksbank OWL eg
	Deutsche Industrie Grundbesitz AG
	Volksbank Main-Tauber
	Deutsche Industrie Grundbesitz AG
	Volksbank Mittweida eG
	Deutsche Industrie Grundbesitz AG
	Volksbank Thüringen Mitte eG
	Deutsche Industrie Grundbesitz AG
	VR Bank eG Region Aachen
	Deutsche Industrie Grundbesitz AG
	VR Bank eG Rosenheim
	Deutsche Industrie Grundbesitz AG
	VR Bank Mecklenburg

420 Financial Statements

38. SUBSEQUENT EVENTS

In February, CTP N.V. increased agreed revolving credit facility to EUR 500,000 thousand. The Company does not expect a partial or full drawdown under this facility in 2023.

In February, the Group received bank loans of EUR 95,000 thousand with due date in 2023 and variable in- terest rate 3 M EURIBOR + 1,95% margin.

CTP is not aware of any other events that have occurred since the statement of financial position date that would have a material impact on these financial statements as at 31 December 2022.

Amsterdam, 3 March 2023

Remon L. Vos
Richard J. Wilkinson
Barbara Knoflach
Gerard van Kesteren
Susanne Eickermann-Riepe
Pavel Trenka

421 Company Financial Statements

Company Financial Statements

422 Company income statement

Over the year	In EUR thousand	Note	2022	2021
Other income		11	22,560	15,681
Administration costs		12	-34,808	-21,164
Net other income/expenses			-12,248	-5,483
Net loss before financing costs			-12,248	-5,483
Interest income			91,617	53,463
Interest expense			-55,224	-32,198
Other financial expense			-51,406	-20,016
Net finance income/expenses		13	-15,013	1,249
Result from participating interest		4	817,679	1,025,147
Result before income tax			790,418	1,020,913
Income tax expense		14	4,231	5,023
Result for the year			794,649	1,025,936

423 Company balance sheet

As at 31 December

	In EUR thousand	Note	31 December 2022	31 December 2021
Assets
Property, plant & equipment		32	35	30
Intangible assets			28	29
Investments in group companies		4	5,011,518	3,424,436
Derivative financial instruments		7	--	--
Long-term receivables due from related parties		15	4,036,942	3,281,737
Deferred tax assets		14	9,279	5,049
Total non-current assets			9,057,799	6,711,287
Trade and other receivables			4,810	2,777
Derivative financial instruments		7	39,049	--
Trade and other receivables from related parties		15	17,899	28,059
Cash and cash equivalents		10	466,410	766,674
Total current assets			528,168	797,510
Total assets			9,585,967	7,508,797
Issued capital		5	71,052	64,063
Share premium reserve		5	3,024,521	2,661,979
Cash flow hedge reserve		5	19,988	--
Legal reserve on participating interest		5	3,166,406	2,488,095
Translation reserve		5	4,547	10,716
Retained earnings		5	-1,796,646	-2,143,959
Result for the year		5	794,649	1,025,936
Total Equity		5	5,284,517	4,106,830
Liabilities
Long-term payable due from related parties		15	207,949	--
Long-term payables			2,035	3,615
Bonds issued		6	3,544,292	3,368,202
Derivative financial instruments		7	--	--
Deferred tax liabilities		14	6,950	--
Total non-current liabilities			3,761,226	3,371,817
Bonds issued		6	416,976	13,490
Derivative financial instruments		7	12,112	--
Trade and other payables to related parties		15	109,597	15,280
Trade and other payables		9	1,539	1,380
Total current liabilities			540,224	30,150
Total liabilities			4,301,450	3,401,967
Total equity and liabilities			9,585,967	7,508,797

424 Financial Statements

Notes to the Company financial statements

1. GENERAL INFORMATION

The Company financial statements are part of the 2022 financial statements of CTP N.V. (the Company). CTP N.V. (the Company) is a Dutch-based real estate developer, which develops and leases a portfolio of properties in Western, Central and Eastern Europe (CEE).

2. PRINCIPLES FOR MEASUREMENT OF ASSETS AND LIABILITIES AND DETERMINATION OF RESULT

The Company financial statements are prepared in accordance with Title 9, Book 2 of the Dutch Civil Code. For setting the principles for the recognition and measurement of assets and liabilities and determination of results for the Company financial statements, the Company makes use of the option provided in section 2:362(8) of the Dutch Civil Code. This means that the principles for the recognition and measurement of assets and liabilities and determination of the result (hereinafter referred to as principles for recognition and measurement) of the Company financial statements are the same as those applied for the consolidated EU-IFRS financial statements. These principles also include the classification and presentation of financial instruments, being equity instruments or financial liabilities. In case no other principles are mentioned, refer to the accounting principles as described in the consolidated financial statements. For an appropriate inter- pretation of these financial statements, the separate financial statements should be read in conjunction with the consolidated financial statements.

All amounts in the Company financial statements are presented in EUR thousand, unless stated otherwise.

Participating interests in Group companies

Participating interests in Group companies are accounted for in the Company financial statements accord- ing to the equity method. Refer to the basis of consolidation accounting policy in the consolidated financial statements.

Result of participating interests

The share in the result of participating interests consists of the share of the Company in the result of these participating interests.# Financial Statements

Results on transactions, where the transfer of assets and liabilities between the Company and its participating interests and mutually between participating interests themselves, are not incorporated insofar as they can be deemed to be unrealised.

Impairment

The Company applies an ECL (expected credit loss) model. Under this approach, all financial assets in the scope of the impairment model of the Company generally carry a loss allowance – even those that are newly originated or acquired. Under the general approach, the measurement basis of Company’s assets, other than investment property, investment property under development and deferred tax assets, depends on whether is a significant in- crease in credit risk since initial recognition.

425 Financial Statements

The Company bases the impairment calculation on its historical, observed default rates, and considers ad- justments of forward-looking estimates that include the probability of a worsening economic environment within the next years. At each reporting date, the Company updates the observed default history and for- ward-looking estimates.

Loans provided

Loans are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Loans provided are subsequently measured at amortised cost using the effective interest method, less any impair- ment losses. The Company classifies as a current portion any part of long-term loans that is due within one year from the reporting date.

Derivate financial instruments

The Company designates certain derivatives as hedging instrument to hedge variability in cash flows asso- ciated with highly probable forecast transaction arising from changes interest rates. At inception of designated hedging relationships, the Company documents the risk management objective and strategy for undertaking the hedge. The Group also documents the economic relationship between the hedged item and hedging instruments, including whether the changes in cash flows of the hedged item and hedging instrument are expected to offset each other.

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognised in Other comprehensive income accumulated in the Cash flow hedge reserve. The effective portion of changes in the fair value of the derivative that is recognised in Other comprehensive income is limited to the cumulative change in fair value of the hedged item, determined on a present values basis, from inception of the hedge. Any ineffective portion of changes in the fair values of the derivative is recognised immediately in profit or loss.

If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is terminated or is exercised, then hedge accounting is discontinued prospectively. When hedge accounting for cash flow hedges is discontinued, the amount that has been accumulated in the Cash flow hedge reserve re- mains in equity until, for a hedge of a transaction resulting in the recognition of a non-financial item, it is in- cluded in the non-financial item’s cost on its initial recognition or, for the cash flow hedges, it is reclassified to profit or loss in the same period or periods as the hedge expected future cash flows affects profit or loss. If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumu- lated in the Cash flow hedge reserve are immediately reclassified to profit or loss.

3. FINANCIAL REPORTING PERIOD AND COMPARATIVE FIGURES

CTP N.V. was incorporated on 21 October 2019 for an unlimited period. CTP N.V. has a 12 month financial year ended on the balance sheet date of 31 December 2022 and 31 Decem- ber 2021, respectively.

426 Financial Statements

4. INVESTMENTS IN GROUP COMPANIES

As at 31 December, the Company has the following financial interests in Group companies:

	In EUR thousand	Share in issued capital in %	Amount
		31 December 2022	31 December 2021
		31 December 2022	31 December 2021
Participating interests	100.0%	100.0%	5,011,518

The company holds 100% ownership interests in the following subsidiaries: CTP Invest spol. s r.o., with statutory seat in the Czech Republic, CTP Property B.V. and CTP Germany B.V., with their statutory seats in the Netherlands.

Acquisition of Deutsche Industrie REIT-AG (subsequently renamed to Deutsche Industrie Grundbesitz AG)

On 3 February 2022, the Group has received 98.17% shareholder support for its voluntary public takeover and delisting offer (the “Offer”) for and contemplated merger with Deutsche Industrie REIT-AG (currently CTP Germany B.V.) (“DIR”). The total number of DIR shares tendered in the Offer was in aggregate 25,951,833 DIR Shares, correspond- ing to approximately 80.90% of the outstanding share capital in DIR. Closing and settlement of the Offer, in which CTP offered either a cash consideration of EUR 17.12 or a share consideration of 1.25 shares in the share capital of CTP (the “CTP Shares”) for each tendered DIR Share (the “Share Consideration”), has taken place on 3 February 2022. During the acceptance period, a total of 25,937,060 tendered DIR Shares opted for the Share Considera- tion. Accordingly, a total of 32,421,325 CTP Shares were issued.

Acquisition of DIR is not considered to be a business combination, but acquisition of assets in exchange for shares of CTP N.V and therefore, this transaction is in scope of IFRS 2. Assets acquired and corresponding increase in equity are measured at fair value.

On 23 August 2022, CTP N.V. and Deutsche Industrie Grundbesitz AG entered transaction of cross-border merger. Assets and liabilities of Deutsche Industrie Grundbesitz AG were transferred to CTP N.V. under universal succession of title and Deutsche Industrie Grundbesitz AG ceased to exist without liquidation. In accordance with agreed exchange ratio, CTP allotted for each issued and outstanding DIR share, 1.25 shares in CTP’s share capital to each holder of shares, resulting in the allotment of 7,659,590 new shares. Shares of DIR in ownership of non-controlling interest, were transferred into shares of CTP N.V.

On 1 November 2022, all assets and liabilities of former Deutsche Industrie Grundbesitz AG were transferred through a hive down by way of legal partial division from CTP N.V. to a new subsidiary CTP Germany B.V. Transaction of the merger and the demerger have been intended to perform simultaneously from initial start of the acquisition of Deutsche Industrie Grundbesitz AG. In accordance with legal requirements of Dutch Law on the processing of a (legal) merger and demerger and Company’s intentions we prepared these standalone financial statements under the assumption that merger and hive down of DIR is processed in one moment on 23 August 2022.

427 Financial Statements

The movements of the investment in Group companies are as follows:

Participating interests in Group companies	2022	Participating interests in Group companies	2021
Balance at 1 January	3,424,436		2,262,021
Acquisitions	572,871		--
Increase in investment - capital contribution	203,105		133,483
Share in result of participating interest - OCI	-6,573		3,785
Share in result of participating interest	817,679		1,025,147
Balance at 31 December	5,011,518		3,424,436

The most significant impact of merger and hive down of DIR on the Company’s financial statements is the following:

Investment property

In EUR thousand	Investment property
Balance at 1 January 2022	--
Impact of merger of DIR	892,055
Impact of demerger of DIR	-892,055
Balance at 31 December 2022	--

Interest bearing loans and borrowings

Movement in Interest bearing loans and borrowings

In EUR thousand	Bank loan
Balance at 1 January 2022	--
Impact of merger of DIR	188,744
Impact of demerger of DIR	-188,744
Balance at 31 December 2022	--

428 Financial Statements

5. SHAREHOLDERS’ EQUITY

In EUR thousand	Issued capital	Share premi- um reserve	Cash flow hedge reserve	Legal reserve for participat- ing interest	Translation reserve	Retained earnings	Net profit for the period	Total equity
Balance at 1 January 2022	64,063	2,661,979	--	2,488,095	10,716	-2,143,959	1,025,936	4,106,830
Issue of shares / acquisition	5,187	391,030	--	--	--	--	--	396,217
Issue of shares / merger	1,226	96,593	--	--	--	--	--	97,819
Dividends	580	-124,540	--	--	--	--	--	-123,960
Increase of other legal reserve	--	--	--	678,311	--	-679,125	--	-814
Cash-flow hedge	--	--	19,988	--	--	--	--	19,988
Other	--	--	--	--	--	502	--	502
Treasury shares	-4	-541	--	--	--	--	--	-545
Translation reserve	--	--	--	--	-6,169	--	--	-6,169
Appropriation of profit	--	--	--	--	--	1,025,936	-1,025,936	--
Net result for the year	--	--	--	--	--	--	794,649	794,649
Balance at 31 December 2022	71,052	3,024,521	19,988	3,166,406	4,547	-1,796,646	794,649	5,284,517

In EUR thousand	Issued capital	Share premium reserve	Legal re- serve for participating interest	Translation reserve	Retained earnings	Net profit for the period	Total equity
Balance as at 1 January 2021	53,760	1,858,460	1,586,323	14,458	-1,676,396	426,597	2,263,202
Increase of share capital	9,763	809,572	--	--	--	--	819,335
Dividends	540	-6,053	--	--	--	--	-5,513
Increase of other legal reserve	--	--	901,772	--	-894,218	--	7,554
Other	--	--	--	--	85	--	85
Increase in share without change in control	--	--	--	--	-27	--	-27
Translation reserve	--	--	--	-3,742	--	--	-3,742
Appropriation of profit	--	--	--	--	426,597	-426,597	--
Net result for the year	--	--	--	--	--	1,025,936	1,025,936
Balance as at 31 December 2021	64,063	2,661,979	2,488,095	10,716	-2,143,959	1,025,936	4,106,830

Issued capital

Issued capital and Share premium

As at 31 December 2022, the issued capital comprised of the following:

Type of shares | No.# Financial Statements

Movements in Issued capital and Share premium

Nr. of shares	Issued capital In thousands of EUR	Share premium In thousands of EUR
Balance at 1 January 2022	400,392,810	64,063
3 February 2022	Share issuance connected with DIR acquisition	32,421,325
9 June 2022	Dividends paid in form of shares	763,581
23 August 2022	Share issuance connected with merger of DIR and CTP N.V.	7,659,590
5 September 2022	Dividends paid in form of shares	2,863,243
Balance at 31 December 2022	444,100,549	71,056
	Treasury shares	-27,976
Total balance at 31 December 2022	444,072,573	71,052

On 3 February 2022, the Group acquired Deutsche Industrie REIT-AG (currently CTP Germany B.V.). CTP offered either a cash consideration of EUR 17.12 or a share consideration of 1.25 shares in the share capital of CTP (the “CTP Shares”) for each tendered DIR Share (the “Share Consideration”). The transaction re- sulted in issuance of 32,421,325 new shares of CTP N.V. For details refer to Note 4.

Following its Annual General Meeting on 26 April 2022, CTP N.V. announced a final 2021 dividend of EUR 0.18 per ordinary share. Shareholders were given the choice to receive the final dividend either in cash or in shares, with the stock fraction for the dividend based on the volume-weighted average price (VWAP) of the Company’s shares on Euronext Amsterdam of the last three trading days of the election period, ending on 18 May 2022. The number of dividend rights that entitles to one new ordinary share was set at 72.5. Shareholders representing approximately 88% of the total number of outstanding ordinary shares chose to receive the dividend in cash, while shareholders representing 12% of the total number of outstanding ordi- nary shares opted for payment in stock. Based on the conversion ratio and after delivery of the ordinary shares due to the conversion of dividend rights, the total number of issued and outstanding ordinary shares increased by 763,581 to a total of 433,577,716 ordinary shares. The payment date for the dividend payment in cash and delivery of the ordi- nary shares was 9 June 2022.

On 23 August 2022 CTP N.V. completed the merger with Deutsche Industrie Grundbesitz AG (acquired on 3 February 2022). As a result of the merger, CTP N.V. acquired shares from former shareholders of Deutsche Industrie Grundbesitz AG. CTP offered a share consideration of 1.25 shares in the share capital of CTP (the “CTP Shares”) for each tendered DIR Share. The transaction resulted in issuance of 7,659,590 new shares of CTP N.V.

On 10 August 2022, an interim dividend of EUR 0.22 per share for the first half of 2022 was announced. Shareholders were given the choice to receive the final dividend either in cash or in shares, with the stock fraction for the dividend based on the volume-weighted average price (VWAP) of the Company’s shares on Euronext Amsterdam of the last three trading days of the election period, ending on 29 August 2022. The number of dividend rights that entitles to one new ordinary share was set at 62.5. Shareholders representing approximately 59% of the total number of outstanding ordinary shares chose to receive the interim dividend in cash, while shareholders representing approximately 41% of the total number of outstanding ordinary shares opted for payment in stock. Based on the conversion ratio and after delivery of the ordinary shares due to the conversion of dividend rights, the total number of issued and outstanding ordinary shares increased by 2,863,243 to a total of 444,100,549 ordinary shares. The payment date for the dividend payment in cash and delivery of the ordi- nary shares was 5 September 2022.

As at 31 December 2021, the Issued capital and Share premium comprised of the following:

Type of shares	No. of shares	Nominal value of share	Issued capital in EUR
Ordinary shares	400,392,810	EUR 0.16	64,062,850

Movements in Issued capital and Share premium

Nr. of shares	Issued capital In thousands of EUR	Share premium In thousands of EUR
Balance at 1 January 2021	336,000,000	53,760
29 March 2021	Share issuance connected with IPO	61,017,000
9 June 2021	Dividends paid in form of shares	3,375,810
Balance at 31 December 2021	400,392,810	64,063

As at 29 March 2021, an additional 61,017,000 shares were issued, with nominal value of EUR 0.16 per share. On 29 March 2021, the Company issued its new shares on Amsterdam’s stock exchange.

On 17 August 2021, CTP N.V. announced a H1 2021 interim dividend of EUR 0.17 per share. Shareholders were given the choice to receive the interim dividend either in cash or shares. The number of dividend rights for one new ordinary CTP share was set at 108. The conversion ratio was based on the volume-weighted average price of the CTP share during the period from 26 August up to and including 30 August 2021. Shareholders representing 92% of the total number of outstanding ordinary shares chose to receive the dividend in stock, while shareholders representing 8% of the total number of outstanding ordinary shares opted for payment in cash. Based on the conversion ratio and after delivery of the ordinary shares due to the conversion of dividend rights, the total number of outstanding ordinary shares increased by 3,375,810 to a total of 400,392,810 shares. The payment date for the dividend payment in cash and delivery of the ordinary shares was 22 Sep- tember 2021.

Legal reserves for participating interests

Other legal reserves for participating interests of EUR 3,166,406 thousand (2021 – EUR 2,488,095 thou- sand) existed at 31 December 2022, accounted for according to the equity accounting method. The reserves represented the difference between the participating interests’ retained profit and direct changes in equity, as determined on the basis of the Company’s accounting policies, and the share thereof that the Company may distribute. The shares the Company may distribute take into account any profits that may not be distributable by participating interests of Dutch limited companies based on the distribution tests to be performed by the management of those companies. The legal reserves are determined on an individual basis.

Net result for the year

The net result for the year consists of share as a result of participating interest, administration cost and net finance expense. At the 2023 Annual General Meeting, the following appropriation of the 2022 result will be proposed: EUR 794,649 thousand addition to retained earnings.

6. BONDS ISSUED

Current period

Bond Issuance Date	ISIN	Nominal value of total bonds issued (In EUR)	Nominal value of each bond	Currency	Type	Fix interest rate per annum ("p.a")	Maturity date	Fair value of bonds (In TEUR)
1 Jul 2022	XS2390546849	49,500,000	100,000	EUR	senior unsecured	1.500%	27 Sept 2031	29,991
20 Jan 2022	XS2434791690	700,000,000	100,000	EUR	senior unsecured	0.875%	20 Jan 2026	571,942
27 Sept 2021	XS2390530330	500,000,000	100,000	EUR	senior unsecured	0.625%	27 Sept 2026	382,910
27 Sept 2021	XS2390546849	500,000,000	100,000	EUR	senior unsecured	1.500%	27 Sept 2031	302,935
21 June 2021	XS2356029541	500,000,000	100,000	EUR	senior unsecured	0.500%	21 June 2025	419,930
21 June 2021	XS2356030556	500,000,000	100,000	EUR	senior unsecured	1.250%	21 June 2029	330,200
18 Feb 2021	XS2303052695	500,000,000	100,000	EUR	senior unsecured	0.750%	18 Feb 2027	374,595
27 Nov 2020	XS2264194205	400,000,000	100,000	EUR	senior unsecured	0.625%	27 Nov 2023	379,784
1 Oct 2020	XS2238342484	331,813,000	100,000	EUR	senior unsecured	2.125%	1 Oct 2025	286,813
Total		3,981,313,000						3,079,100

On 20 January 2022, the Group has issued new bond with the emission ISIN XS2434791690 in the nominal value of EUR 700,000 thousand. On 24 January 2022, the Group has repaid bonds from the emission with ISIN XS2238342484 in the nom- inal value of EUR 168,189 thousand. On 1 July 2022, the Company CTP N.V. issued EUR 49.5 million unsecured bonds with a nominal value of EUR 100,000 each under emission from 27 September 2021 with ISIN number XS2390546849. The bonds are issued as subordinated, with fix interest rate 1.5% per annum (“p.a.”), and bonds are due on 27 September 2031. There are no covenants related to the bonds.

Prior period

Bond Issuance Date	ISIN	Nominal value of total bonds issued (In EUR)	Nominal value of each bond	Currency	Type	Fix interest rate per annum ("p.a")	Maturity date	Fair value of bonds (In TEUR)
27 Sept 2021	XS2390530330	500,000,000	100,000	EUR	senior unsecured	0.625%	27 Sept 2026	494,545
27 Sept 2021	XS2390546849	500,000,000	100,000	EUR	senior unsecured	1.500%	27 Sept 2031	485,270
21 June 2021	XS2356029541	500,000,000	100,000	EUR	senior unsecured	0.500%	21 June 2025	498,545
21 June 2021	XS2356030556	500,000,000	100,000	EUR	senior unsecured	1.250%	21 June 2029	490,725
18 Feb 2021	XS2303052695	500,000,000	100,000	EUR	senior unsecured	0.750%	18 Feb 2027	486,940
27 Nov 2020	XS2264194205	400,000,000	100,000	EUR	senior unsecured	0.625%	27 Nov 2023	404,296
1 Oct 2020	XS2238342484	500,002,000	100,000	EUR	senior unsecured	2.125%	1 Oct 2025	524,842
Total		3,400,002,000						3,385,163

On 29 September 2021, the Group repaid bonds from the first issuance in October 2020 in the nominal value of EUR 149,998 thousand.432

Financial Statements

In EUR thousand
| | 31 December 2022 | 31 December 2021 |
| :--------------------------------------------------------------- | :--------------- | :--------------- |
| Non-current and current liabilities | | |
| Bonds issued - nominal value | 4,299,500 | 3,550,000 |
| Repayment of bonds - nominal value | -318,187 | -149,998 |
| Nominal value after payment | 3,981,313 | 3,400,002 |
| Impact of merger of DIR | 19,851 | -- |
| Impact of demerger of DIR | -19,851 | -- |
| Interest expense | 18,586 | 13,490 |
| Discount applied | -42,766 | -27,878 |
| Amortisation of applied discount | 10,012 | 3,796 |
| Bond issuance costs | -8,870 | -9,200 |
| Amortisation of bond issuance costs | 2,993 | 1,482 |
| Balance at 31 December | 3,961,268 | 3,381,692 |

In 2021, the Company replaced a revolving credit facility from the year 2020, with a new revolving credit facility of EUR 400,000 thousand for a three-year period. The Company does not expect a drawdown either partial or for the full amount under this facility in 2023.

1. FINANCIAL INSTRUMENTS

Derivative financial instruments

In EUR thousand
| | 2022 | 2021 |
| :----------------------------------------- | :----- | :----- |
| Fair value of derivatives - non-current asset | -- | -- |
| Fair value of derivatives - current asset | 39,049 | -- |
| Fair value of derivatives - assets | 39,049 | -- |
| Fair value of derivatives - non-current liability | -- | -- |
| Fair value of derivatives - current liability | -12,112 | -- |
| Fair value of derivatives - liabilities | -12,112 | -- |
| Total | 26,937 | -- |

The Group has designated certain derivatives as hedging instruments in cash flow hedge relationships. These derivatives are recognised initially at fair value and reported subsequently at fair value in the consolidated statement of financial position. To the extent that the hedge is effective, changes in the fair value of derivatives designated as hedging instruments in cash flow hedges are recognised in other comprehensive income and included within the cash flow hedge reserve in equity.

Derivate financial instruments
| Due within maturity date | Mandatory break | Receiving leg | Paying leg | Currency | Nominal value (In thousand EUR) | Fair Value (In thousand EUR) |
| :----------------------- | :-------------- | :------------ | :--------- | :------- | :------------------------------ | :--------------------------- |
| Interest rate swaps – cash flow hedge | | | | | | |
| 2028 –2053 | 2023 | 6M Euribor | From 2.1265% to 2.4385% | EUR | 550,000 | 39,049 |
| Total assets from derivates | | | | | | 39,049 |

Derivate financial instruments
| Due within maturity date | Mandatory break | Receiving leg | Paying leg | Currency | Nominal value (In thousand EUR) | Fair Value (In thousand EUR) |
| :----------------------- | :-------------- | :------------ | :--------- | :------- | :------------------------------ | :--------------------------- |
| Interest rate swaps – cash flow hedge | | | | | | |
| 2030 – 2053 | 2023 | 6M Euribor | from 2.609% to 2.652% | EUR | 375,000 | -12,112 |
| Total liabilities from derivates | | | | | | -12,112 |

433

Financial Statements

General

The Group has exposure to the following risks from its use of financial instruments:

Credit risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations, resulting in a financial loss to CTP.

Credit risk concentration:
In EUR thousand
| | 2022 | 2021 |
| :--------------------------- | :------- | :------- |
| Amounts due from banks | 466,410 | 766,674 |
| Amounts due from related parties | 4,054,841 | 3,309,796 |
| Amounts due from third parties | 4,810 | 2,777 |
| Total | 4,526,061 | 4,079,247 |

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. With respect to the nature of its business and its assets, the Company is naturally exposed to a certain amount of liquidity risk.

2022 Contractual cash flows
In EUR thousand
| | Until 3 months | 3 - 12 Months | Between 1 -5 years | Over 5 years | Total |
| :--------------------------- | :------------- | :------------ | :----------------- | :----------- | :------------ |
| Bonds issued | 9,875 | 429,669 | 2,612,954 | 1,102,436 | 4,154,934 |
| Derivative financial instruments | -- | 12,430 | -- | -- | 12,430 |
| Trade and other payables incl. corporate income tax liability | 111,136 | -- | 251,574 | -- | 362,710 |
| Total | 121,011 | 442,099 | 2,864,528 | 1,102,436 | 4,530,074 |

2021 Contractual cash flows
In EUR thousand
| | Until 3 months | 3 - 12 Months | Between 1 -5 years | Over 5 years | Total |
| :--------------------------- | :------------- | :------------ | :----------------- | :----------- | :------------ |
| Bonds issued | 3,750 | 32,500 | 1,994,359 | 1,547,978 | 3,578,587 |
| Trade and other payables incl. corporate income tax liability | 16,660 | -- | 3,615 | -- | 20,275 |
| Total | 20,410 | 32,500 | 1,994,674 | 1,547,978 | 3,598,862 |

Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect CTP’s income or the value of its holding of financial instruments. Market risk management aims to manage and control market risk exposure within acceptable parameters, while optimising the return. CTP N.V. is not subject to interest rate risk, nor foreign currency risks, as all loans provided are with fixed interest rate and in functional currency of the Group – EUR. In the Notes to the consolidated financial statements information is included about the Group’s exposure to the above risks, the Group’s objectives, policies and processes for measuring and managing risk, and the Group’s management of capital.

434

Financial Statements

1. OFF-BALANCE SHEET ASSETS AND LIABILITIES

In 2022, CTP N.V. issued guarantee in favor of Coöperatieve Rabobank U.A. connected with financing of development activities of CTP ALC B.V. Guaranteed obligations represents:
- any amount due by the CTP ALC B.V. under and in connection with the Finance Documents for a maximum amount of the Commitment minus the Reserve Amount,
- any interest, fees (including for the avoidance of doubt any default interest) and any amount payable under any Hedging Agreement due by the CTP ALC B.V. under and in connection with the Facility Agreement.

Facility agreement is agreed of EUR 175,000,000 between ABN AMRO Bank N.V., Coöperatieve Rabobank U.A. and CTP ALC B.V. In 2021, the Company had no off-balance sheet assets, nor liabilities to be presented in these financial statements.

1. TRADE AND OTHER PAYABLES

Trade and other payables consist of arrangement fees, accruals for legal, tax and audit services.

1. CASH AND CASH EQUIVALENTS

Cash and cash equivalents of EUR 446,410 thousand (2021 – EUR 766,674 thousand) consist of petty cash, cash at bank balances, including cash acquired from bond issuance, and cash on deposit account.

1. OTHER INCOME

Other income of EUR 22,560 thousand represents the management fee and license fee invoiced to the companies in the Group.

1. OPERATIONAL EXPENSES
   In EUR thousand
   | | 31 December 2022 | 31 December 2021 |
   | :------------------ | :--------------- | :--------------- |
   | Management fee | 18,094 | 13,743 |
   | Donations | 10,000 | -- |
   | Consultancy fees | 2,151 | 1,571 |
   | Wages | 2,684 | 5,266 |
   | Other | 1,879 | 584 |
   | Total | 34,808 | 21,164 |

435

Financial Statements

For details related to audit fees, refer to the audit fee table below. Only audit services were provided to the Group. The Company donated EUR 10,000 thousand to the UN refugee agency UNHCR (United Nations High Commissioner for Refugees) to provide humanitarian support for the more than one million people, who have fled the war in Ukraine into neighboring countries.

Audit fees

The following fees were charged by KPMG Accountants N.V. to the Company, its subsidiaries and other consolidated companies, as referred to in Section 2:382a of (1) and (2) of the Dutch Civil Code:

In EUR thousand for 2022
| | KPMG Accountants N.V. | Other KPMG Network | Total KPMG |
| :-------------- | :-------------------- | :----------------- | :------------- |
| Audit fees | 644 | 964 | 1,608 |
| Other services | 123 | -- | 123 |
| Total | 767 | 964 | 1,731 |

In EUR thousand for 2021
| | KPMG Accountants N.V. | Other KPMG Network | Total KPMG |
| :-------------- | :-------------------- | :----------------- | :------------- |
| Audit fees | 198 | 778 | 976 |
| IPO costs | 413 | -- | 413 |
| Other services | 94 | -- | 94 |
| Total | 705 | 778 | 1,483 |

1. NET FINANCE INCOME/EXPENSE
   In EUR thousand
   | | 31 December 2022 | 31 December 2021 |
   | :-------------------------- | :--------------- | :--------------- |
   | Interest income from related parties | 91,617 | 53,463 |
   | Finance income | 91,617 | 53,463 |
   | Bond interest expenses | -39,075 | -26,120 |
   | Bond issuance costs amortization | -8,337 | -3,954 |
   | Interest expense to related parties | -5,575 | -- |
   | Bank interest expense | -2,237 | -2,124 |
   | Other financial expenses | -51,406 | -20,016 |
   | Finance costs | -106,630 | -52,214 |
   | Net finance income/expense | -15,013 | 1,249 |

Other financial expenses consist of bank fees of EUR 1,946 thousand (2021 – EUR 1,732 thousand), financing fees of EUR 13,578 thousand (2021 – EUR 14,777 thousand) and exchange rate differences of EUR 35,881 thousand (2021 – EUR 3,507 thousand).

436

Financial Statements

1. INCOME TAXES

Income tax

In 2022, the Company recognized deferred tax asset of EUR 9,279 thousand (2021 – EUR 5,049 thousand) and deferred tax liabilities of EUR 6,950 thousand arisen from cash flow hedge and recognized in Equity (2021 – EUR 0 thousand).

In EUR thousand
| | 2022 | 2021 |
| :----------------- | :----- | :----- |
| Deferred tax | | |
| Deferred tax expense/income | 4,231 | 5,049 |
| Total | 4,231 | 5,049 |

Withholding tax

In 2022, the Company paid withholding dividend tax of EUR 2,832 thousand paid in respect of final dividend 2021 and interim dividend 2022. Impact if reflected in Share premium, please refer to Note 5.

1. RELATED PARTIES

As of 31 December 2022 and 31 December 2021, the Group had the following interest income and interest expense with related parties:

In EUR thousand
| | 2022 Revenues | 2022 Expenses | 2021 Revenues | 2021 Expenses |
| :----------------------------------------------------------------- | :------------ | :------------ | :------------ | :------------ |
| CTP Industrial Property CZ, spol. s r.o. | 8,660 | -- | 6,880 | -- |
| CTP Invest, spol. s r.o. | 6,390 | -- | 2,577 | -- |
| CTPark Eighteen Kft | 3,818 | -- | 212 | -- |
| Spielberk Business Park, spol. s r.o. (formerly Spielberk Office Center, spol. s.r.o.) | 2,645 | -- | 2,875 | -- |
| CTPARK ETA SRL | 2,598 | -- | 1,850 | -- |
| CTP Germany B.V. | 2,385 | -- | -- | -- |
| CTPARK GAMMA SRL | 2,280 | -- | 1,329 | -- |
| CTPARK ZETA SRL | 2,192 | -- | 1,149 | -- |
| CTPARK BUCHAREST WEST I SRL | 2,063 | -- | 2,215 | -- |
| CTPARK BUCHAREST SRL | 1,870 | -- | 1,669 | -- |
| CTPARK MIU SRL | 1,738 | -- | 240 | -- |
| CTPark Bucharest A1 SRL | 1,734 | -- | 1,483 | -- |
| CTPark Twelve Kft. | 1,732 | -- | 545 | -- |
| CTP Vlněna Business Park, spol. s r.o. (formerly CTP Property XVII, spol. s.r.o.) | 1,709 | -- | 1,147 | -- |
| CTPark Eleven Kft. | 1,645 | -- | 694 | -- |
| CTP Holding B.V. | 1,614 | -- | 1,588 | -- |
| CTPARK PHI SRL | 1,464 | -- | 1,156 | -- |
| CTPARK PSI SRL | 1,428 | -- | 568 | -- |
| CTPark Bratislava, spol. s r.o. | 1,393 | -- | 1,385 | -- |
| CTPARK BETA SRL | 1,277 | -- | 1,215 | -- |
| CTP CONTRACTORS SRL | 1,222 | -- | 724 | -- |
| CTP Beta B.V. | 1,083 | -- | 510 | -- |
| CTPARK THETA SRL | 1,048 | -- | 347 | -- |
| CTP ALC B.V. | 1,024 | -- | 103 | -- |
| CTP Invest Poland Sp. z o.o. | 1,012 | -- | 157 | -- |
| CTPARK ALPHA SRL | 984 | -- | 729 | -- |
| CTPark Košice, spol. s r. o. | 936 | -- | 808 | -- |
| Spielberk Business Park II, spol. s r.o. (formerly CTP INVEST V, spol. s.r.o.) | 926 | -- | 1,094 | -- |

437

Financial Statements

In EUR thousand
| | 2022 Revenues | 2022 Expenses | 2021 Revenues | 2021 Expenses |
| :----------------------------------------------------------------- | :------------ | :------------ | :------------ | :------------ |
| CTPark Nine Kft. | 908 | -- | 803 | -- |
| CTPark Brno Líšeň East, spol. s r.o. | 897 | -- | 213 | -- |
| CTPARK BUCHAREST WEST II SRL (formerly H.E.E. | | | | |(MERCURY) PRO-PRIETATI SRL) 854 -- 875 -- CTPark Fourteen Kft 822 -- 519 -- CTPARK TAU SRL 811 -- 514 -- CTP Property B.V. (formerly CTP Invest B.V.) 795 -- 675 -- CTPARK OMEGA SRL 793 -- 438 -- CTP Alpha SK, spol. s r.o. 760 -- 582 -- CTPark Nineteen Kft 715 -- 38 -- CTPARK BUCHAREST UPSILON SRL 694 -- 563 -- CTPark Žilina Airport, spol. s r. o. 656 -- 717 -- CTPark Sixteen Kft 622 -- 118 -- CTPark Delta Kft. 607 -- 467 -- CTPark Eta EOOD 591 -- 219 -- CTP Zeta d.o.o. Beograd-Novi Beograd 583 -- 575 -- CTPark Biatorbágy Kft. 581 -- 735 -- CTP LAMBDA POLAND SP Z O.O. 545 -- -- -- CTP IQ Ostrava, spol. s r.o. 536 -- -- -- CTPark Opole Sp. Z o.o. (formerly CTP Alpha Poland Sp. Z.o.o. ) 535 -- -- -- CTP Alpha B.V. 508 -- -- -- CTPARK IOTA SRL 506 -- -- -- CTPark Delta EOOD 506 -- -- -- CTP Slovakia, s.r.o. 485 -- -- -- CTPARK KAPPA SRL 473 -- -- -- CTPark Prague North III, spol. s r.o. (formerly DUNSTAR a.s.) 471 -- 543 -- CTP Bohemia North, spol. s r.o -- -1,186 -- -- CTP Vysočina, spol. s r.o. -- -1,157 -- -- CTPark Ostrava, spol. s r.o. -- -730 -- -- CTPark Brno I, spol. s r.o. -- -525 -- -- CTPark Brno II, spol. s r.o. -- -455 -- -- CTP Moravia South, spol. s r.o. -- -455 -- -- CTPark Prague East, spol. s r.o. -- -413 -- -- CTPark Námestovo -- -371 -- -- CTP Bohemia West, spol. s r.o. -- -275 -- -- CTP Mu BV. -- -8 -- -- Other 16,493 -- 9,621 -- Total 91,617 -5,575 53,463 --

The revenues comprise interest on loan and borrowings provided to the subsidiaries.

Financial Statements

As at 31 December 2022 and 31 December 2021, the Group had the following long-term receivables due from related parties:

In EUR thousand	2022	2021
CTP Property B.V. (formerly CTP Invest B.V.)	299,087	34,502
CTP Invest, spol. s r.o.	158,903	144,285
CTPark Eighteen Kft.	136,121	133,266
CTP Industrial Property CZ, spol. s r.o.	94,004	824,173
CTP Invest Poland sp. Z o.o.	93,236	25,304
CTP Germany B.V.	87,890	--
CTPARK ETA SRL	87,662	89,685
CTP Vlněna Business Park, spol. s r.o. (formerly CTP Property XVII, spol. s r.o.)	83,539	57,480
Spielberk Business Park, spol. s.r.o. (formerly Spielberk Office Center, spol. s.r.o.)	79,653	81,847
CTPark Bratislava, spol. s r.o.	74,421	64,488
CTP Pilsen Region, spol. s r.o.	67,685	--
CTPARK BUCHAREST WEST I SRL	67,124	70,251
CTPark Miu SRL	64,554	10,826
CTPARK THETA SRL	64,140	43,881
CTP Moravia North, spol. s r.o.	59,986	--
CTPark Eleven Kft.	56,801	57,180
CTPARK GAMMA SRL	55,382	56,042
CTPARK BUCHAREST SRL	55,143	58,224
CTPark Twelve Kft.	55,069	44,600
CTPARK ZETA SRL	54,872	49,460
CTP CONTRACTORS SRL	52,101	49,099
CTP Beta B.V.	50,788	54,560
CTPark Košice, spol. s r. o.	49,195	45,730
CTP Ponávka Business Park, spol. s r.o.	49,067	--
CTPark Bucharest A1 SRL	46,775	46,721
CTPARK PHI SRL	42,404	43,671
CTPark Mladá Boleslav, spol. s r.o.	42,181	--
CTP Property Beta Poland Sp. z o.o.	41,016	--
CTP Holding B.V.	40,807	42,318
CTP LAMBDA POLAND SP Z O.O.	39,578	23,848
CTPARK PSI SRL	38,496	31,142
CTPARK ALPHA SRL	38,443	42,289
CTP Alpha SK, spol. s r.o.	38,116	35,005
CTPark Sixteen Kft.	37,050	13,718
CTP Alpha B.V.	36,410	18,222
CTPark Brno Líšeň East, spol. s r.o. (formerly CTP Invest XX, spol. s r.o.)	36,228	44,841
CTPark Hranice, spol. s r.o.	35,937	--
CTPARK BETA SRL	33,230	35,033
CTP Alpha GmbH	32,708	8,474
CTPark Nine Kft.	30,383	35,855
CTPark Iłowa Sp. z o.o.	28,679	101
CTPark Eta EOOD	28,638	31,219
CTPark Fourteen Kft	28,513	31,184
Olympian East Bucharest SA	28,211	--
CTP Property Alpha d.o.o. Beograd-Novi Beograd	27,774	202
CTPARK IOTA SRL	27,318	82
CTPark Opole Sp. Z o.o. (formerly CTP Alpha Poland Sp. Z.o.o. )	27,291	26,597
CTPark Nineteen Kft.	27,179	19,036
Spielberk Business Park II, spol. s r.o. (formerly CTP INVEST V, spol. s r.o.)	27,018	28,791
CTP Tau Poland sp. z o.o.	26,968	--
CTPARK KM23 NORTH SRL	25,871	12,502
CTPark Craiova East SRL	24,929	--
CTPark Gamma EOOD	24,250	7,617
CTP Gamma Poland Sp. z o.o.	23,497	9,057
CTPark Seventeen kft.	23,287	7,067
CTPark Biatorbágy Kft.	22,914	22,808
CTP IQ Ostrava, spol. s r.o.	22,751	24,319
CTP Property Delta Poland Sp. z o.o.	22,652	--
NETWORK WIDE LOGISTICS SRL	22,213	--
CTPark Prague Airport, spol. s r.o.	22,065	--

In EUR thousand	2022	2021
CTPARK BUCHAREST WEST II SRL (formerly H.E.E. (MERCURY) PROPRIETATI SRL)	21,848	21,034
CTPark Delta Kft.	21,333	23,178
CTP Zeta doo Beograd-Novi Beograd	21,141	19,228
CTPARK TAU SRL	21,022	19,111
CTPark Twenty Four Kft.	21,004	--
CTPark Prešov s.r.o. (formerly ABL Slovakia s.r.o.)	20,951	8,039
CTPark Čierny Les, spol. s r.o. (formerly CTPark Žilina, spol. s.r.o.)	20,569	8,406
CTPARK OMEGA SRL	20,480	19,987
CTP Sigma doo Beograd-Novi Beograd	19,716	3,959
CTPARK DELTA SRL	18,929	12,339
CTPARK KAPPA SRL	18,555	14,062
CTP Slovakia, s.r.o.	18,495	17,564
CTPARK BUCHAREST UPSILON SRL	18,006	19,072
CTPark Bremen B.V.	17,280	--
CTPark Žilina Airport, spol. s r. o.	17,273	31,017
CTPark Delta EOOD	17,009	10,643
CTP Rho doo Beograd-Novi Beograd	16,875	380
CTP Management Hungary Kft.	15,853	4,786
CTPARK ZABRZE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA	15,800	5,590
CTP Delta Poland Sp. z o.o.	15,675	15,779
CTPark Brno III, spol. s r.o. (formerly Bor Logistics, spol. s.r.o.)	15,262	15,023
CTPark Thirteen Kft	15,078	18,115
CTP Property Beta d.o.o. Beograd-Novi Beograd	14,424	--
CTPark Beta EOOD	13,605	8,517
CTPark Timisoara East SRL	13,103	--
CTP Omega Poland Sp. z o.o.	12,910	--
CTP Zeta GmbH	12,636	9,109
CTP Property Alpha Poland Sp. z o.o.	12,549	--
CTPARK SIGMA SRL	12,547	12,323
CTP Bohemia South, spol. s r.o.	11,892	--
CTP Delta doo Beograd-Novi Beograd	11,777	11,678
CTPark Hlohovec, spol. s r.o. (formerly CTPark Nitra, s.r.o.)	11,635	12,743
CTP XXI, spol. s r.o. (formerly CTP Invest XXVIII, spol. s.r.o.)	11,484	18,445
CTPark Prague North III, spol. s r.o. (formerly CTPark Prague North III, a.s.)	11,137	8,495
CTPark Eight Kft.	11,016	2,703
CTPark Brno Líšeň West, spol. s r.o.	10,949	--
CTPARK RHO SRL	10,374	6,837
CTP Eta Poland Sp. z o.o.	10,349	1,792
Olympian Brasov Logistic SRL	10,156	--
CTP Invest doo Beograd-Novi Beograd	10,033	9,743
CTP Mu Poland Sp. z o.o.	9,874	7,069
Olympian Brasov SA	9,469	--
CTPark Gamma Kft.	9,455	11,598
CTPark Plzeň, spol. s r.o. (formerly CTP Invest XIX, spol. s.r.o.)	8,871	8,392
CTP Property Epsilon Poland sp. z o.o.	8,721	--
CTPark Arrabona Kft.	8,640	9,566
CTPARK EPSILON SRL	8,484	4,996
CTP Borská Pole, spol. s r.o.	8,460	--
CTP Hotel Prague, spol. s r.o.	8,320	8,128
CTPark Beta Kft.	8,035	10,649
CTP Property Gamma Poland sp. z o.o.	7,867	--
CTP Delta GmbH	7,443	7,189
CTP Gamma doo Beograd-Novi Beograd	7,356	7,793
CTP Chi Poland sp. z o.o.	7,339	--
CTP Property Czech, spol. s r.o	7,256	6,083
CTPark Sofia EOOD	6,988	--
CTPARK Zeta EOOD	6,690	6,573
CTPARK LAMBDA SRL	6,639	7,234
CTP Invest SK, spol. s r.o.	6,638	1,956
CTPark Prague West, spol. s r.o.	6,520	--
CTP VIII, spol. s r.o. (formerly CTP Property XXXII, spol. s.r.o.)	6,309	11,751
CTP Omicron doo Beograd-Novi Beograd	6,039	10

In EUR thousand	2022	2021
CTP Zeta Poland	5,897	--
CTPark Trnava II, spol. s r.o. (formerly CTP Land SK, spol. s.r.o.)	5,818	3,844
CTPark Aš II, spol. s r.o. (formerly CTP XIX, spol. s r.o.)	5,754	4,437
CTPark Ostrava Poruba, spol. s r.o.	5,704	--
CTP Phi doo Beograd-Novi Beograd	5,625	3,915
CTP Gamma B.V.	5,568	5,558
CTP Hotel Pilsen, spol. s r.o. (formerly 2P , s.r.o.)	5,345	5,938
CTPark Nove Mesto, spol. s.r.o.	4,940	5,647
CTPark Iota EOOD	4,772	--
CTPark Krásno nad Kysucou, spol. s r.o. (formerly CTP Beta SK, spol. s r.o.)	4,465	4,971
CTP Invest B.V.	4,293	4,888
CTP Invest Immobilien GmbH	4,160	--
CTPark Alpha Kft.	4,100	8,359
CTPark Seven Kft.	4,055	9,884
CTPARK BUCHAREST II SRL (formerly CENTURA PROPERTY HOLDINGS S.A.)	3,980	4,305
CTP Solar SRL	3,783	--
CTP Alpha doo Beograd-Novi Beograd	3,699	3,885
CTPark Oradea North SRL	3,647	--
CTPark Ten Kft.	3,410	4,887
CTP Forest, spol. s r.o. (formerly CTP Invest XXVI, spol. s.r.o.)	3,331	3,812
CTPark Sofia Ring Road EOOD	3,207	--
CTP Beta doo Beograd-Novi Beograd	2,755	3,067
CTPark Theta EOOD	2,612	--
CTP XVII, spol. s r.o. (formerly CTP Invest XXII, spol. s.r.o.)	2,420	2,162
CTPark Banská Bystrica, spol. s r.o.	2,094	2,350
CTPark Brno Líšeň II, spol. s r.o. (formerly CTP Invest XXIV, spol. s r.o.)	2,093	2,244
CTP XXIII, spol. s r.o.	1,821	--
CTPark Fifteen Kft	1,690	1,918
CTP Gamma GmbH	1,600	20,819
CTP Omega doo Beograd-Novi Beograd	1,502	--
CTP Invest EOOD	1,404	--
CTP Beta Poland Sp. z o.o.	1,383	1,341
CTP XXII, spol. s r.o.	1,366	1,355
Border Logistics SRL	1,143	--
CTPark Nitra, spol. s r. o.	1,094	--
CTPARK DEVA II SRL (formerly DEVA LOGISTIC CENTER S.A.)	938	2,065
CTP ALC B.V.	--	24,793
CTPark Epsilon EOOD	--	2,213
Valkenburg s.r.o.	--	1,924
Other	5,128	5,869
Total	4,036,942	3,281,737

Interest rate on long-term receivables due from related parties is 1.25% - 8% p.a., depending on purpose and country-specific conditions.

Financial Statements

Movement schedule of the loans provided to related parties:

In EUR thousand	2022	2021
Balance of the loans provided as at 1 January	3,281,737	737,922
Loans granted to the related parties	2,320,660	4,149,928
Repayment of loans	-1,456,102	-1,471,669
Settlement of loans with the Increase in Equity of subsidiaries	-136,873	-143,411
Impact of merger DIR AG	4,114	--
Impact of demerger of DIR AG	-4,114	--
Interest accrued	93,883	53,463
Interest received	-65,858	-41,955
Other	-505	-2,541
Balance at 31 December	4,036,942	3,281,737

As at 31 December 2022 and 31 December 2021, the Group had the following long-term payables due to re- lated parties:

In EUR thousand	2022	2021
CTPark Ostrava, spol. s r.o.	-37,006	--
CTPark Námestovo	-35,511	--
CTPark Brno I, spol. s r.o.	-30,223	--
CTPark Brno II, spol. s r.o.	-28,723	--
CTP Moravia South, spol. s r.o.	-26,570	--
CTPark Prague East, spol. s r.o.	-24,167	--
CTP Vysočina, spol. s r.o.	-18,804	--
CTP Bohemia West, spol. s r.o.	-5,987	--
CTP Mu BV.	--	---958 -- Total -207,949 -- Interest rate on long-term payables due to related parties is 2% - 5.2% p.a., depending on purpose and country-specific conditions. In EUR thousand Total Balance of the loans provided as at 1 January 2022 -- Loans granted to the related parties -205,498 Repayment of loans 290 Interest accrued -2,745 Interest received 4 Balance at 31 December 2022 -207,949 442 Financial Statements As at 31 December 2022 and 31 December 2021, the Group had the following trade and other receivables due from related parties, and trade and other payables to related parties: In EUR thousand 2022 2021 Receivables Payables Receivables Payables CTP INVEST BUCHAREST SRL 7,818 -- 3,033 -- CTP Management Hungary Kft. 2,125 -- 1,030 -- CTP Invest doo Beograd-Novi Beograd 1,449 -- 522 -- CTP Invest Poland Sp. z o.o. 828 -- 392 -- CTP Invest EOOD (formerly CTPark Alpha, EOOD) 332 -- 488 -- CTP Invest Immobilien GmbH 134 -- 213 -- CTP Invest B.V. 232 -48 374 -1 CTPark Brno II, spol. s r.o. 22 -184 -- -- CTPark Prague East, spol. s r.o. 7 -206 -- -- CTPark Brno I, spol. s r.o. 28 -239 -- -- CTP Bohemia West, spol. s r.o. 4 -303 -- -- CTP Solar I, a. s. -- -472 -- -- CTP Industrial Property CZ, spol. s r.o. -- -529 -- -- Amsterdam Logistic Cityhub B.V. -- -843 -- -- CTP Bohemia North, spol. s r.o 19 -1,183 -- -- CTP Vysočina, spol. s r.o. 19 -1,375 -- -- CTP Invest, spol. s r.o. 3,861 -10,097 21,491 -14,981 CTP Moravia South, spol. s r.o. 17 -26,519 -- -- CTPark Ostrava, spol. s r.o. 35 -67,599 -- -- Other 969 -- 516 -298 Total 17,899 -109,597 28,059 -15,280 16. PERSONNEL The Company employed 12 employees in 2022 (2021 – 9 employees). 17. EMOLUMENTS OF DIRECTORS In 2022, the emoluments, as defined in Section 2:383(1) of the Dutch Civil Code, charged in the financial year to the Company, its subsidiaries and consolidated other companies amounted to EUR 2,959 thousand (2021 – EUR 1,365 thousand), out of which EUR 2,490 thousand (2021 – EUR 1,025 thousand) relates to emolument of Executive Directors and EUR 469 thousand (2021 – EUR 340 thousand) to Non-Executive Directors. Share based payment In 2021 and 2022, the Company granted a conditional share award under the LTIP to a Director. This award has a vesting period of three years, subject to continued services up to vesting, and depends on the Company’s total shareholder return (TSR). Vesting of 50% of the number of awards granted is subject to an absolute TSR condition and 50% is subject to a relative TSR condition. The number of awards that will vest is between 0% and 150% of the target number of awards granted. The vesting percentage is allocated linearly between the threshold level and the maximum level. 443 Financial Statements The fair value of the awards is expensed on a straight-line basis over the three-year vesting period. In 2022, the total share-based payment expense recognized for the equity-settled awards amounted to EUR 176 thousand (2021 – EUR 85 thousand). 18. SUBSEQUENT EVENTS For subsequent events, see Note 38 of the consolidated financial statements. 19. SUBSIDIARIES The Company has 100% ownership interest in CTP Property B.V., CTP Invest, spol. s r.o. and CTP Germany B.V., which owns subsidiaries with operational activities in the Czech Republic, Hungary, Romania, Poland, Slovakia, Austria, Germany, Serbia, the Netherlands and Bulgaria. For the structure of the Group as at 31 December 2022, refer to Appendix 1 – Group Structure. Amsterdam, 3 March 2023 The Board of Directors Remon L. Vos Richard J. Wilkinson Barbara Knoflach Gerard van Kesteren Susanne Eickermann-Riepe Pavel Trenka 444 Other information Provisions in the Articles of Association governing the appropriation of profit: According to Article 22 of the Company’s Articles of Association, the profit is at the disposal of the General Meeting of Shareholders, which can allocate the profit wholly or partly to the general or specific reserve funds. The Board must approve the appropriation of profit before the decision of the General Meeting takes effect. The Company can only make payments to shareholders and other parties entitled to the distributable profit if the amount the shareholders’ equity is greater than the paid-up and called-up part of the capital plus the legally required reserves. Other information 445 Financial Statements Independent Auditor's Report Financial Statements 446 Independent Auditor's Report KPMG Accountants N.V., a Dutch limited liability company registered with the trade register in the Netherlands under number 33263683, is a member firm of the global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. Independent auditor's report To: the General Meeting of Shareholders of CTP N.V. Report on the audit of the financial statements 2022 included in the annual report Our opinion In our opinion: • the accompanying consolidated financial statements give a true and fair view of the financial position of CTP N.V. as at 31 December 2022 and of its result and its cash flows for the year then ended, in accordance with International Financial Reporting Standards as adopted by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil Code. • the accompanying company financial statements give a true and fair view of the financial position of CTP N.V. as at 31 December 2022 and of its result for the year then ended in accordance with Part 9 of Book 2 of the Dutch Civil Code. What we have audited We have audited the financial statements 2022 of CTP N.V. (‘the Company’) based in Amsterdam. The financial statements include the consolidated financial statements and the company financial statements. The consolidated financial statements comprise: 1 the consolidated statement of financial position as at 31 December 2022; 2 the following consolidated statements over the year 1 January 2022 up to and including 31 December 2022: the statements of profit and loss and comprehensive income, changes in equity and cash flows; and 3 the notes comprising a summary of the significant accounting policies and other explanatory information. The company financial statements comprise: 1 the company income statement for the year ended 31 December 2022; 2 the company balance sheet as 31 December 2022; and 3 the notes comprising a summary of the accounting policies and other explanatory information. KPMG Accountants N.V., a Dutch limited liability company registered with the trade register in the Netherlands under number 33263683, is a member firm of the global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. Independent auditor's report To: the General Meeting of Shareholders of CTP N.V. Report on the audit of the financial statements 2022 included in the annual report Our opinion In our opinion: • the accompanying consolidated financial statements give a true and fair view of the financial position of CTP N.V. as at 31 December 2022 and of its result and its cash flows for the year then ended, in accordance with International Financial Reporting Standards as adopted by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil Code. • the accompanying company financial statements give a true and fair view of the financial position of CTP N.V. as at 31 December 2022 and of its result for the year then ended in accordance with Part 9 of Book 2 of the Dutch Civil Code. What we have audited We have audited the financial statements 2022 of CTP N.V. (‘the Company’) based in Amsterdam. The financial statements include the consolidated financial statements and the company financial statements. The consolidated financial statements comprise: 1 the consolidated statement of financial position as at 31 December 2022; 2 the following consolidated statements over the year 1 January 2022 up to and including 31 December 2022: the statements of profit and loss and comprehensive income, changes in equity and cash flows; and 3 the notes comprising a summary of the significant accounting policies and other explanatory information. The company financial statements comprise: 1 the company income statement for the year ended 31 December 2022; 2 the company balance sheet as 31 December 2022; and 3 the notes comprising a summary of the accounting policies and other explanatory information. 447 Financial Statements 2 Basis for our opinion We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the ‘Our responsibilities for the audit of the financial statements’ section of our report. We are independent of CTP N.V. in accordance with the ‘Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten’ (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore, we have complied with the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics). We designed our audit procedures in the context of our audit of the financial statements as a whole and in forming our opinion thereon. The information in respect of going concern, fraud and non-compliance with laws and regulations, climate related risks and the key audit matters were addressed in this context, and we do not provide a separate opinion or conclusion on these matters. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

16. PERSONNEL

The Company employed 12 employees in 2022 (2021 – 9 employees).

17. EMOLUMENTS OF DIRECTORS

In 2022, the emoluments, as defined in Section 2:383(1) of the Dutch Civil Code, charged in the financial year to the Company, its subsidiaries and consolidated other companies amounted to EUR 2,959 thousand (2021 – EUR 1,365 thousand), out of which EUR 2,490 thousand (2021 – EUR 1,025 thousand) relates to emolument of Executive Directors and EUR 469 thousand (2021 – EUR 340 thousand) to Non-Executive Directors.

Share based payment

In 2021 and 2022, the Company granted a conditional share award under the LTIP to a Director. This award has a vesting period of three years, subject to continued services up to vesting, and depends on the Company’s total shareholder return (TSR). Vesting of 50% of the number of awards granted is subject to an absolute TSR condition and 50% is subject to a relative TSR condition. The number of awards that will vest is between 0% and 150% of the target number of awards granted. The vesting percentage is allocated linearly between the threshold level and the maximum level.

The fair value of the awards is expensed on a straight-line basis over the three-year vesting period. In 2022, the total share-based payment expense recognized for the equity-settled awards amounted to EUR 176 thousand (2021 – EUR 85 thousand).

18. SUBSEQUENT EVENTS

For subsequent events, see Note 38 of the consolidated financial statements.

19. SUBSIDIARIES

The Company has 100% ownership interest in CTP Property B.V., CTP Invest, spol. s r.o. and CTP Germany B.V., which owns subsidiaries with operational activities in the Czech Republic, Hungary, Romania, Poland, Slovakia, Austria, Germany, Serbia, the Netherlands and Bulgaria. For the structure of the Group as at 31 December 2022, refer to Appendix 1 – Group Structure.

Amsterdam, 3 March 2023
The Board of Directors
Remon L. Vos
Richard J. Wilkinson
Barbara Knoflach
Gerard van Kesteren
Susanne Eickermann-Riepe
Pavel Trenka

Other information

Provisions in the Articles of Association governing the appropriation of profit: According to Article 22 of the Company’s Articles of Association, the profit is at the disposal of the General Meeting of Shareholders, which can allocate the profit wholly or partly to the general or specific reserve funds. The Board must approve the appropriation of profit before the decision of the General Meeting takes effect. The Company can only make payments to shareholders and other parties entitled to the distributable profit if the amount the shareholders’ equity is greater than the paid-up and called-up part of the capital plus the legally required reserves.

Financial Statements

Independent Auditor's Report

KPMG Accountants N.V., a Dutch limited liability company registered with the trade register in the Netherlands under number 33263683, is a member firm of the global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

Independent auditor's report
To: the General Meeting of Shareholders of CTP N.V.

Report on the audit of the financial statements 2022 included in the annual report

Our opinion

In our opinion:
* The accompanying consolidated financial statements give a true and fair view of the financial position of CTP N.V. as at 31 December 2022 and of its result and its cash flows for the year then ended, in accordance with International Financial Reporting Standards as adopted by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil Code.
* The accompanying company financial statements give a true and fair view of the financial position of CTP N.V. as at 31 December 2022 and of its result for the year then ended in accordance with Part 9 of Book 2 of the Dutch Civil Code.

What we have audited

We have audited the financial statements 2022 of CTP N.V. (‘the Company’) based in Amsterdam. The financial statements include the consolidated financial statements and the company financial statements.

The consolidated financial statements comprise:
1. the consolidated statement of financial position as at 31 December 2022;
2. the following consolidated statements over the year 1 January 2022 up to and including 31 December 2022: the statements of profit and loss and comprehensive income, changes in equity and cash flows; and
3. the notes comprising a summary of the significant accounting policies and other explanatory information.

The company financial statements comprise:
1. the company income statement for the year ended 31 December 2022;
2. the company balance sheet as 31 December 2022; and
3. the notes comprising a summary of the accounting policies and other explanatory information.

2 Basis for our opinion

We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the ‘Our responsibilities for the audit of the financial statements’ section of our report. We are independent of CTP N.V. in accordance with the ‘Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten’ (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore, we have complied with the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics). We designed our audit procedures in the context of our audit of the financial statements as a whole and in forming our opinion thereon. The information in respect of going concern, fraud and non-compliance with laws and regulations, climate related risks and the key audit matters were addressed in this context, and we do not provide a separate opinion or conclusion on these matters. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.# Information in support of our opinion

Summary

Materiality of EUR 90 million

• 0.72% of Total Assets

Group audit

• Audit coverage of 98% of investment property and investment property under development
• Audit coverage of 96% of total assets
• Audit coverage of 71% of rental income

Fraud/Noclar, Going concern and climate related risks

• Fraud & Non-compliance with laws and regulations (Noclar) related risks: the presumed fraud risk on management override of controls and a fraud risk related to possible conflict of interest in real estate transactions.
• Going concern related risks: no significant going concern risks identified.
• Climate related risks: the response of the Board of Directors to possible future effects of climate change and their anticipated outcomes have been disclosed in chapter 4.3.1 of the annual report. We have considered the impact of climate-related risks on the financial statements and described our approach and observations in the section ‘Audit response to climate-related risks’.

Key audit matters

• Valuation of investment property and investment property under development
• Real estate transactions
• Application of hedge accounting

Opinion

Unqualified

Materiality

Based on our professional judgement we determined the materiality for the financial statements as a whole at EUR 90 million (2021: EUR 82 million). The materiality is determined with reference to total assets 0.72% (2021: 0.85%). We consider total assets as the most appropriate benchmark because of the nature of the business, the level of activities and asset value is likely the primary focus of the users of the financial statements evaluating CTP N.V.’s financial performance. Materiality significantly changed compared to last year due to increase of total assets. We have also taken into account misstatements and/or possible misstatements that in our opinion are material for the users of the financial statements for qualitative reasons. We agreed with the Board of Directors that misstatements identified during our audit in excess of EUR 4.5 million would be reported to them, as well as smaller misstatements that in our view must be reported on qualitative grounds.

Scope of the group audit

CTP N.V. is at the head of a group of components. The financial information of this group is included in the financial statements of CTP N.V. Our group audit scoping was mainly based on the accounts investment property and investment property under development. We determined the significant components based on the relative size and risk profile of the accounts investment property and investment property under development where we assigned a full scope audit (audit of the complete reporting package). Additionally, we included certain components in the scope of our group audit where specified audit procedures are performed on the valuation of investment property and investment property under development in order to obtain sufficient audit coverage. Because we are ultimately responsible for the audit opinion, we are also responsible for directing, supervising and performing the group audit. In this respect we have determined the nature and extent of the audit procedures to be carried out for operating companies and issued audit instructions to local auditors. As group auditor we were involved in the full-scope audits performed by local auditors.

Our involvement included, amongst others the following:
* issuing audit instructions to component auditors prescribing the scope of the audit procedures to be performed, our risk assessment, materiality to be applied and reporting requirements;
* participation in planning discussions with component auditors;
* attending meetings with the local auditors to discuss the results of local audits and discussions on the valuation of investment property with independent appraisers engaged by the company;
* follow up on reported audit findings;
* review of the component audit files and verification that the audit work had been carried out in accordance with our instructions.

For the residual population not in scope we performed analytical procedures in order to corroborate that our scoping remained appropriate throughout the audit. By performing the procedures mentioned above at group components, together with additional procedures at group level, we have been able to obtain sufficient and appropriate audit evidence about the group’s financial information to provide an opinion about the financial statements.

The audit coverage as stated in the section summary can be further specified as follows:

Investment property and investment property under development
Audit of the complete reporting package	62%
Specified audit procedures	36%
Total Assets
Audit of the complete reporting package	63%
Specified audit procedures	33%

Rental income
Audit of the complete reporting package	71%

Audit response to the risk of fraud and non-compliance with laws and regulations

In the chapter Risk management, internal controls and compliance of the annual report, the Board of Directors describes its procedures in respect of the risk of fraud and non-compliance with laws and regulations. As part of our audit, we have gained insights into the Company and its business environment, and assessed the design and implementation of the Company’s risk management in relation to fraud and non-compliance. Our procedures included, among other things, assessing the Company’s code of conduct, whistleblowing policy, KYC & AML screening policy, anti-bribery policy, anti-fraud policy, incidents register and its procedures to investigate indications of possible fraud and non-compliance. Furthermore, we performed relevant inquiries with the Board of Directors and other relevant functions, such as Internal Audit and Compliance.

As part of our audit procedures, we:
* assessed other positions held by the Board of Directors and other employees and paid special attention to procedures and compliance in view of possible conflicts of interest;
* evaluated correspondence with regulators (e.g. the AFM) as well as legal confirmation letters.

In addition, we performed procedures to obtain an understanding of the legal and regulatory frameworks that are applicable to the Company and identified the following areas as those most likely to have a material effect on the financial statements:
* anti-money laundering laws and regulations; and
* anti-bribery and corruption laws and regulations.

We evaluated the fraud and non-compliance risk factors to consider whether those factors indicate a risk of material misstatement in the financial statements. Further, we assessed the presumed fraud risk on revenue recognition as irrelevant, because the Company’s main form of revenue relates to rental income which involves limited judgement as the revenue related to rental income is contractually agreed and with various individual tenants.

Based on the above and on the auditing standards, we identified the following two fraud risks that are relevant to our audit, including the relevant presumed risk laid down in the auditing standards, and responded as follows:

• Management override of controls (a presumed risk)
• Risk: Management is in a unique position to manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively
  • Responses:
    • We evaluated the design and the implementation of internal controls that mitigate fraud and non-compliance risks, such as processes related to journal entries and estimates.
• We performed a data analysis of high-risk journal entries (adjustments to initially recorded changes in fair value of investment property and investment property under development above a threshold) which were subject of the examination and evaluated the key estimates valuation of investment property and investment property under development and judgments for bias by the Board of Directors including retrospective reviews of prior years’ estimates. Where we identified instances of unexpected journal entries or other risks through our data analytics, we performed additional audit procedures to address each identified risk, including testing of transactions back to source information.

• We incorporated elements of unpredictability in our audit, including performing procedures on an early-stage development project and review the tender process related to selection of a construction company (e.g., multiple quotes obtained, documentation around selection of the party) and selection of advisory fees paid in the period just before a construction permit is obtained and to perform procedures on whether the services are in accordance with the fees paid.

• Fraud risk related to conflict of interest in the real estate transactions

• Risk: A fraud risk is identified in relation to corruption in the context of the use of agents and/or business partners as part of the acquisition of investment property and investment property under development and related potential conflicts of interest.
• Responses: We refer to our key audit matter. Our evaluation of procedures performed related to fraud did not result in an additional key audit matter. We communicated our risk assessment, audit responses and results to the Board of Directors.

Our audit procedures did not reveal actual indications or reasonable suspicion of fraud and non- compliance that are considered material for our audit.

Audit response to going concern

As explained in note 2 to the financial statements, the Board of Directors has performed its going concern assessment and has not identified any going concern risks.# Independent Auditor's Report

To assess the Board of Directors’ assessment, we have performed, inter alia, the following procedures:

• We considered whether the assessment of the going concern risks performed by the Board of Directors included all relevant information of which we are aware of as a result of our audit;
• We considered whether the developments in share prices indicate a significant going concern risk;
• We analysed the financial position of the Group as at year end and compared it to the previous financial year in terms of indicators that could identify significant going concern risks.

The outcome of our risk assessment procedures did not give reason to perform additional audit procedures on management’s going concern assessment.

Audit response to climate-related risks

The Company has set out its ambitions relating to climate change in chapter 4.3.1. “Striving to be Climate Positive” of the Annual Report 2022. The Company’s ambition is in line with the Paris Agreement to become carbon neutral by 2050 in all scopes as defined by the Greenhouse Gas Protocol Corporate Standard through the reduction of the Group’s GHG emissions and water consumption, the production of renewable energy and support for biodiversity.

The Board of Directors has assessed, against the background of the Company’s business and operations, how climate-related risks and the company’s own ambitions could have a significant impact on its business or could impose the need to adapt its strategy and operations. The Board of Directors has considered the impact of physical risks extensively and transition risks high level on the financial statements under the requirements of EU-IFRS. The Board of Directors particularly considered the implications on the valuation of investment property, as described in chapter 4.3.1. of the Annual Report 2022. The Board of Directors prepared the financial statements, including considering whether the implications from climate-related risks and ambitions have been appropriately accounted for and disclosed.

As part of our audit we performed a risk assessment of the impact of climate-related risk on the financial statements and our audit approach. We performed the following procedures:

• Understanding the Company’s processes: we held inquiries with the Board of Directors, the Group Head of ESG and other relevant employees for Environmental, Social, and Governance who are responsible for climate risk assessment within the Company. The purpose is to understand the client’s risk assessment and the climate roadmap to become carbon neutral in all scopes by 2050. The Company has performed a physical climate risk assessment including scenario analysis, but a climate roadmap is still in progress. Further, we inquired how this ambition was translated into investment decisions and the related potential impact of climate-related risks and ambitions on the company’s annual report and financial statements.
• We evaluated climate-risk related fraud risk factors such as pressure from remuneration and expectations from external stakeholders to meet ESG/climate risk related targets. We concluded that the factors do not result in an event or condition that would indicate a risk of material misstatement in the financial statements.
• We have inquired with the external appraiser on how climate-risk factors are considered in the external appraisal process and inspected the external valuation reports on potential climate related impact on fair value of investment property.
• We involved KPMG climate change subject matter experts, to assist in understanding how climate-related risks and ambitions may affect the entity and its accounting in the current year’s financial statements.

Based on the procedures performed above we found that climate related risks have no material impact on the 2022 financial statements under the requirements of EU-IFRS and no material impact on our key audit matters. Furthermore, we have read the ‘Other information’ with respect to climate-related risks as included in the annual report and considered the material consistency with the financial statements, our knowledge obtained through the audit, in particular as described above and our knowledge obtained otherwise.

Our key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements. We have communicated the key audit matters to the Board of Directors. The key audit matters are not a comprehensive reflection of all matters discussed. Compared to last year the key audit matter with respect to application of hedge accounting has been added.

Valuation of investment property and investment property under development

Description

Investment property and investment property under development (hereafter ‘investment property’) amounts to EUR 11.3 billion and represent 90% of the Group’s total assets as at 31 December 2022. Investment property is valued at fair value; therefore, the Group has to make estimates and use assumptions to determine those fair values. The fair value is, as explained in notes 17 and 18 to the financial statements, determined by the Board of Directors based on appraisal reports by an independent appraiser (98%) or on the acquisition price of investment property as a proxy for the fair value when acquired close to the reporting date (2%). Because the valuation of investment property and investment properties under development is complex and highly dependent on estimates and significant assumptions (such as estimated rental value and yield/discount rate, and specifically for investment property under development the development margin) and the availability of comparable transactions, we consider the valuation of investment property as a key audit matter in our audit.

Our response

We have evaluated the competence, capabilities and objectivity of the external appraiser. We have evaluated the appropriateness of the information and assumptions used in the valuations. This includes the estimates made by the Board of Directors supported by the external appraisal firms. We focused on the significant assumptions, such as: estimated rental value, yield/discount rate and specifically for investment property under development the development margin. We analysed the results of the valuation process and discussed the abovementioned factors that determine the valuations with the Board of Directors and the external appraiser. For that purpose we used the expertise of our own internal property valuation specialists. These specialists have supported us with our assessment of the (significant) assumptions, methods and developments in the valuations. Finally, we verified whether the disclosures in notes 17 and 18 to the financial statements in respect of investment property are in conformity with EU-IFRS.

Our observation

Overall, we assess that the assumptions and methodologies used, and related estimates resulted in a valuation of investment property which is deemed reasonable and concur with the related disclosures in the financial statements.

Real estate transactions

Description

As part of the normal course of business real estate transactions take place. Acquisitions of investment property and investment property under development are significant transactions which are subject to error due to the nature of these transactions. Transactions often involve a variable consideration (earn outs, rental guarantees, etc.) and are structured as asset deals or share deals (depending on tax considerations). The risk of error has been specifically allocated to the acquisition of Deutsche Industrie Grundbesitz AG (hereafter ‘CTP Germany’) in February 2022 due to the significance and complexity of the transaction due to the acquisition in exchange for shares of CTP N.V. The acquisition is recorded as acquisition of assets and liabilities as the Board of Directors concluded that CTP Germany does not represent a business as defined by IFRS 3. Therefore IFRS 2 Share-based payments is applied as disclosed in note 6 of the financial statements. In addition to the risk of error, a fraud risk is identified in relation to corruption in the context of the use of agents and/or business partners as part of the acquisition of investment property and investment property under development and related potential conflicts of interest. The fraud risk has been allocated to specific transactions/properties (i.e. entities within the group that are involved in acquisition of real estate) mainly to screen whether fraud risk factors in transactions are present.

Our response

We performed audit procedures in respect of the acquisition of CTP Germany to ensure the transaction is accurately accounted for. These procedures included obtaining an understanding of the transaction agreement and testing of the accounting entries to record the initial purchase. Further we verified whether the disclosure in note 6 to the financial statements is in conformity with EU-IFRS. In respect of fraud risks related to transactions with investment property and investment property under development, we obtained an understanding of management’s anti-fraud controls (for example, counterparty due diligence, four-eyes principle, procurement procedures for development/construction contracts). Further we selected specific transactions to verify whether any fraud risk factors are present especially in the view of a possible of conflict of interest. At group level, we also inspected minutes of Board meetings in which these transactions are discussed to verify that the governance around the transactions is appropriate, and the required approvals are obtained.

Our observation

Overall, we assess that the acquisition of CTP Germany is adequately accounted for and disclosed in the financial statements.# Independent Auditor's Report

Application of hedge accounting

Description

During 2022 CTP has entered into new hedging relationships and designated certain derivatives as hedging instruments to hedge variability in cashflows associated with interest rates. At inception of the designated hedging relationships the Company prepared hedge documentation.

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As at the 31 December 2022 the Company has recognized derivative financial instruments at fair value with a debit amount of EUR 51.0 million and a credit amount of EUR 14.7 million. The fair value is, as explained in note 31 and 35 to the financial statements, based on fair value quotes from counterparties which are compared to the results of the internal valuation model using market data from an independent recognized market data agency. As the requirements for hedge accounting under IFRS 9 are complex and the Company entered into new hedging relationships in 2022 this topic has been considered a key audit matter in our audit.

Our response

We have inspected the hedge documentation at inception and the hedge effectiveness test to ensure that the accounting requirements of IFRS 9 have been applied. For that purpose we used the expertise of our hedge accounting specialist. We also used our valuation specialists to independently calculate the fair value of the derivatives and compared the outcome to the values calculated by the Company and evaluated the assessment of counterparty non-performance risk (or credit valuation adjustment / debit valuation adjustment). Finally, we verified whether the disclosure in notes 31 and 35 to the financial statements in respect of hedge accounting are in conformity with EU-IFRS.

Our observation

Overall, we assess that the requirements for application of hedge accounting are adequately applied, and the valuation of derivatives resulted in a neutral valuation when compared with our own valuations. Furthermore we determined that the related disclosures are in accordance with EU-IFRS.

Report on the other information included in the annual report

In addition to the financial statements and our auditor’s report thereon, the annual report contains other information. Based on the following procedures performed, we conclude that the other information:

• is consistent with the financial statements and does not contain material misstatements; and
• contains the information as required by Part 9 of Book 2 of the Dutch Civil Code for the management report and other information.

We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements.

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By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is less than the scope of those performed in our audit of the financial statements. The Board of Directors is responsible for the preparation of the other information, including the information as required by Part 9 of Book 2 of the Dutch Civil Code.

Report on other legal and regulatory requirements and ESEF Engagement

We were engaged by the General Meeting of Shareholders as auditor of CTP N.V. on 16 March 2021 as of the audit for the year 2021 and have operated as statutory auditor ever since that financial year.

No prohibited non-audit services

We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on specific requirements regarding statutory audits of public-interest entities.

European Single Electronic Format (ESEF)

CTP N.V. has prepared its annual report in ESEF. The requirements for this are set out in the Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single electronic reporting format (hereinafter: the RTS on ESEF). In our opinion the annual report prepared in XHTML format, including the (partly) marked-up consolidated financial statements as included in the reporting package by CTP N.V., complies in all material respects with the RTS on ESEF.

The Board of Directors is responsible for preparing the annual report including the financial statements in accordance with the RTS on ESEF, whereby the Board of Directors combines the various components into one single reporting package. Our responsibility is to obtain reasonable assurance for our opinion whether the annual report in this reporting package complies with the RTS on ESEF. We performed our examination in accordance with Dutch law, including Dutch Standard 3950N ’Assurance-opdrachten inzake het voldoen aan de criteria voor het opstellen van een digitaal verantwoordingsdocument’ (assurance engagements relating to compliance with criteria for digital reporting).

Our examination included among others:

• Obtaining an understanding of the entity's financial reporting process, including the preparation of the reporting package;
• Identifying and assessing the risks that the annual report does not comply in all material respects with the RTS on ESEF and designing and performing further assurance procedures responsive to those risks to provide a basis for our opinion, including:

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• Obtaining the reporting package and performing validations to determine whether the reporting package containing the Inline XBRL instance document and the XBRL extension taxonomy files have been prepared in accordance with the technical specifications as included in the RTS on ESEF;
• Examining the information related to the consolidated financial statements in the reporting package to determine whether all required mark-ups have been applied and whether these are in accordance with the RTS on ESEF.

Description of responsibilities regarding the financial statements

Responsibilities of the Board of Directors for the financial statements

The Board of Directors is responsible for the preparation and fair presentation of the financial statements in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code. Furthermore, the Board of Directors is responsible for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. In that respect the Board of Directors is responsible for the prevention and detection of fraud and non-compliance with laws and regulations, including determining measures to resolve the consequences of it and to prevent recurrence. As part of the preparation of the financial statements, the Board of Directors is responsible for assessing the Company’s ability to continue as a going concern. Based on the financial reporting frameworks mentioned, the Board of Directors should prepare the financial statements using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors should disclose events and circumstances that may cast significant doubt on the company’s ability to continue as a going concern in the financial statements.

Our responsibilities for the audit of the financial statements

Our objective is to plan and perform the audit engagement in a manner that allows us to obtain sufficient and appropriate audit evidence for our opinion. Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect all material errors and fraud during our audit. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion. A further description of our responsibilities for the audit of the financial statements is included in appendix of this auditor's report. This description forms part of our auditor's report.

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Amstelveen, 3 March 2023

KPMG Accountants N.V.

H.D. Grönloh RA

Appendix: Description of our responsibilities for the audit of the financial statements

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Appendix

Description of our responsibilities for the audit of the financial statements

We have exercised professional judgement and have maintained professional scepticism throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit included among others:

• identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.# 461 Financial Statements 16

The risk of not detecting a material misstatement resulting from fraud is higher than the risk resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; • obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control; • evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors; • concluding on the appropriateness of the Board of Directors’ use of the going concern basis of accounting, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause a company to cease to continue as a going concern; • evaluating the overall presentation, structure and content of the financial statements, including the disclosures; and • evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We are solely responsible for the opinion and therefore responsible to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the financial statements. In this respect we are also responsible for directing, supervising and performing the group audit. We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control that we identify during our audit. In this respect we also submit an additional report to the audit committee in accordance with Article 11 of the EU Regulation on specific requirements regarding statutory audits of public-interest entities. The information included in this additional report is consistent with our audit opinion in this auditor’s report.

We provide the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the Board of Directors, we determine the key audit matters: those matters that were of most significance in the audit of the financial statements. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, not communicating the matter is in the public interest.

462 7 Appendices

7.1 Group Structure

7.2 EPRA Financial Performance Metrics

7.3 EPRA Sustainability Performance Mesures

7.4 EU Taxonomy

7.5 TCFD Index

7.6 GRI Index

7.7 Portfolio Property List 2022

7.8 Glossary

7.7 Disclaimer

463

Remon Leonard Vos Stichting  Administratiekantoor  Multivest CTP Invest, spol. s r.o. Person with  significant control 100% 100% 100% Czech Republic CTP Property Czech, spol. s r.o. 100% CTP X, spol. s r.o. 100% CTPark Brno Retail, spol. s r.o. 100% CTPark Brno III, spol. s r.o. 100% CTPark Prague North II, spol. s r.o. 100% CTP XIII, spol. s r.o. 100% CTP XIV, spol. s r.o. 100% CTP Vlněna Business Park, spol. s r.o. 100% CTPark Plzeň, spol. s r.o. 100% CTP II, spol. s r.o. 100% CTPark Prague North III, spol. s r.o. 100% CTP III, spol. s r.o. 100% CTPark Stříbro, spol. s r.o. 100% CTP XV, spol. s r.o. 100% CTP XVI, spol. s r.o. 100% Serbia ➜ CTP Lambda d.o.o. Beograd 100% CTP XVIII, spol. s r.o. 100% CTPark Brno Líšeň II, spol. s r.o. 100% CTP Forest, spol. s r.o. 100% Clubco, spol. s r.o. 100% CTPark Blučina, spol. s r.o. 100% CTP Barrandov, spol. s r.o. 100% CTP XXII, spol. s r.o. 100% CTPark Lysá nad Labem, spol. s r.o. 100% CTP Domeq Brno, spol. s r.o. 100% CTP XII, spol. s r.o. 100% CTP XXIV, spol. s r.o. 100% CTP Hotel Pilsen, spol. s r.o. 100% ➜ CTP Hotel Operations Pilsen, spol. s r.o. 90%, 10% CTP Invest, spol. s r.o. Czech Republic CTP Hotel Prague, spol. s r.o. 100% ➜ CTP Hotel Operations Prague, spol. s r.o. 90%, 10% CTP Invest, spol. s.r.o. CTP CEE Properties, spol. s r.o. 100% CTP V, spol. s r.o. 100% CTP IQ Ostrava, spol. s r.o. 100% CTP XI, spol. s r.o. 100% CTP IV, spol. s r.o. 100% CTP VI, spol. s r.o. 100% Spielberk Business Park, spol. s r.o. 100% CTZone Ostrava, spol. s r.o. 100% CTP Energy CZ, spol. s r.o. 100% CTP VIII, spol. s r.o. 100% KRMELÍNSKÁ I, s.r.o. 100% Spielberk Business Park II, spol. s r.o. 100% ➜ CTP Hotel Operations Brno, spol. s r.o. 100% Romania CTP INVEST BUCHAREST SRL 100% ➜ Universal Management SRL 100% ➜ CTPARK MANAGEMENT TURDA SRL 100% ➜ CTPARK MANAGEMENT AFUMATI SRL, 100% CTPARK THETA SRL 100% CTPARK PSI SRL 100% CTPARK ZETA SRL 100% CTPARK EPSILON SRL 100% CTPARK IOTA SRL 100% CTPARK MIU SRL 100% CTPARK OMICRON SRL 100% CTPARK RHO SRL 100% CTPARK KM23 NORTH SRL 100% FOREST PROPERTY INVEST SRL 100% Romania CTP SOLAR SRL 100% CTPARK ARAD NORTH SRL 100% CTPARK SIBIU EAST SRL 100% CTPARK CRAIOVA EAST SRL 100% CTPARK ORADEA NORTH SRL 100% CTPARK TIMISOARA EAST SRL 100% CTPARK BRASOV SRL 100% CTPARK BRASOV WEST SRL 100% CTPARK BUCHAREST SOUTH II SRL 100% CTPARK CHITILA SRL 100% CTPARK PITESTI SRL 100% Poland CTP Invest Poland Sp. z o.o. 100% CTP Eta Poland Sp. z o.o. 100% CTP Theta Poland Sp. z o.o. w likwidacji 100% CTPark Iłowa Sp. z o.o. 100% CTPark Zabrze Sp. z o.o. 100% CTP Beta Poland Sp. z o.o. 100% CTP Delta Poland Sp. z o.o. 100% CTP Gamma Poland Sp. z o.o. 100% CTP Zeta Poland Sp. z o.o. 100% CTP Epsilon Poland Sp. z o.o. 100% CTP Iota Poland Sp. z o.o. 100% CTP Kappa Poland Sp. z o.o. 100% CTP Lambda Poland Sp. z o.o. 100% CTP Mu Poland Sp. z o.o. 100% CTP Nu Poland Sp. z o.o. 100% CTP Xi Poland Sp. z o.o. 100% CTP Energy Poland Sp. z o.o. 100% Poland CTP Pi Poland Sp. z o.o. 100% CTP Rho Poland Sp. z o.o. 100% CTP Omega Poland Sp. z o.o. 100% CTP Chi Poland Sp. z o.o. 100% CTP Property Beta Poland Sp. z o.o. 100% CTP Property Alpha Poland Sp. z o.o. 100% CTP Tau Poland Sp. z o.o. 100% CTP Property Gamma Poland Sp. z o.o. 100% CTP Property Delta Poland Sp. z o.o. 100% CTP Property Epsilon Poland Sp. z o.o. 100% CTP Property Eta Poland sp. z o.o. 100% CTP Property Zeta Poland sp. z o.o. 100% Hungary CTP Management Hungary Kft. 100% CTPark Eleven Kft. 100% CTPark Twelve Kft. 100% CTPark Thirteen Kft. 100% CTPark Fourteen Kft. 100% CTPark Fifteen Kft. 100% CTPark Sixteen Kft. 100% CTPark Seventeen Kft. 100% Offi ce Campus Real Estate Kft. 100% CTP Energy Hungary Kft. 100% CTPark Eighteen Kft. 100% CTPark Nineteen Kft. 100% CTPark Twenty Kft. 100% CTPark Twenty One Kft. 100% CTPark Twenty Two Kft. 100% Hungary CTPark Twenty Three Kft. 100% CTPark Twenty Four Kft. 100% CTPark Twenty Five Kft. 100% CTPark Twenty Six Kft. 100% CTPark Twenty Seven Kft. 100% CTPark Twenty Eight Kft. 100% CTPark Twenty Nine Kft. 100% CTPark Thirty Kft. 100% CTPark Thirty One Kft. 100% Slovakia CTPark Čierny Les, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Prešov s.r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTP Prešov North, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Trnava II, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTP Dunaj s.r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Žilina Airport II, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTP Solar SK, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Bratislava East, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTP Invest SK, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Banská Bystrica, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Land SK 1, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Land SK 2, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Námestovo, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. Netherlands Multifi n B.V. 100% Germany ➜ CTP Germany II GmbH 100% CTP Baltic Holding B.V. 100% Latvia ➜ Samesova SIA 100% ➜ Vojtova SIA 100% ➜ Zemankova SIA 100% Lithuania ➜ UAB Samesova 100% ➜ UAB Vojtova 100% ➜ UAB Zemankova 100% Estonia ➜ Samesova OŰ 100% ➜ Vojtova OŰ 100% ➜ Zemankova OŰ 100% CTP Turkish Holding B.V. 100% Turkey ➜ CTP ALPHA GAYRİMENKUL VE İNŞAAT LİMİTED ŞİRKETİ, 100% ➜ CTP BETA GAYRİMENKUL VE İNŞAAT LİMİTED ŞİRKETİ, 100% ➜ CTP GAMMA GAYRİMENKUL VE İNŞAAT LİMİTED ŞİRKETİ 100% CTP Mediterranean Holding B.V. 100% Egypt ➜ CTP Real Estate 90%, 10% CTP Baltic Holding B.V. ➜ CTP Real Estate Development 90%, 10% CTP Baltic Holding B.V. ➜ CTP Invest 90%, 10% CTP Baltic Holding B.V. CTP Invest B.V. 100% CTP Alpha B.V. 100% CTP Beta B.V. 100% CTP Gamma B.V. 100% CTPark Bremen B.V. 100% CTP Epsilon B.V. 100% CTP Germany B.V. Multivest B.V. CTP Holding B.V. CTP N.V. 100% >75% 100% CTPPropertyB.V. 100% Netherlands CTP Theta B.V. 100% CTP Eta B.V. 100% CTP Zeta B.V. 100% CTP Energy B.V. 100% CTP Kappa B.V. 100% CTP Lambda B.V. 100% CTP ALC B.V. 100% CTP Mu B.V. 100% Serbia CTP Invest d.o.o. Beograd‐Novi Beograd, 100% CTP Zeta d.o.o. Beograd‐Novi Beograd, 100% ➜ CTP Property Alpha d.o.o. Beograd‐Novi Beograd, 100% CTP Energy d.o.o. Beograd-Novi Beograd 100% CTP Sigma d.o.o. Beograd‐Novi Beograd 100% CTP Omicron d.o.o. Beograd‐Novi Beograd 100% CTP Phi d.o.o.# 7.1 Group Structure as at 31 December 2022

Country	Entity	Ownership
Serbia	CTP Alpha d.o.o. Beograd‐Novi Beograd	100%
Serbia	CTP Rho d.o.o. Beograd‐Novi Beograd	100%
Serbia	CTP Tau d.o.o. Beograd‐Novi Beograd	100%
Serbia	CTP Property Beta d.o.o.Beograd‐Novi Beograd	100%
Serbia	CTP Property Gamma d.o.o. Beograd‐ Novi Beograd	100%
Serbia	CTP Property Delta d.o.o. Beograd‐Novi Beograd	100%
Bulgaria	CTP Invest EOOD	100%
Bulgaria	CTPark Beta EOOD	100%
Bulgaria	CTPark Gamma EOOD	100%
Bulgaria	CTPark Delta EOOD	100%
Bulgaria	CTPark Epsilon EOOD	100%
Bulgaria	➜ Project Vrajdebna EOOD	100%
Bulgaria	CTPark Zeta EOOD	100%
Bulgaria	➜ CTPark Kappa EOOD	100%
Bulgaria	CTPark Eta EOOD	100%
Bulgaria	➜ CTPark Lambda EOOD	100%
Bulgaria	CTPark Theta EOOD	100%
Bulgaria	CTPark Iota EOOD	100%
Bulgaria	CTPark Sofia Ring Road EOOD	100%
Bulgaria	CTPark Sofia EOOD	100%
Austria	CTP Invest Immobilien GmbH	100%
Austria	CTP Alpha GmbH	100%
Austria	CTP Beta GmbH	100%
Austria	CTP Gamma GmbH	100%
Austria	CTP Delta GmbH	100%
Austria	CTP Epsilon GmbH	100%
Austria	CTP Zeta GmbH	100%
Austria	CTP Eta GmbH	100%
Austria	CTP Theta GmbH	100%
Austria	CTP Iota GmbH	100%
Germany	CTP Invest Germany GmbH	100%
Germany	CTP Germany GmbH	100%
Germany	➜ CTP Germany V GmbH	90%, 10% CTP Invest, spol. s r.o.
Germany	➜ CTP Germany VI GmbH	90%, 10% CTP Invest, spol. s r.o.
Germany	CTP Germany VII GmbH	100%
Germany	CTP Germany VIII GmbH	100%
Germany	CTP Germany IX GmbH	100%
Germany	CTP Germany X GmbH	100%
Slovenia	CTP Ljubljana, d.o.o.	100%
Slovenia	CTPark Alpha, d.o.o.	100%
Spain	Global Guanaco, S.L.U.	100%
France	CTP France	100%
France	CTP Alpha France	100%
France	CTP Beta France	100%
Italy	CTP Italy S.r.l.	100%
Italy	CTP Alpha S.r.l.	100%
Italy	CTP Beta S.r.l.	100%
United Kingdom	CTP Invest Ltd	100%
United Kingdom	CTP Alpha Ltd	100%
United Kingdom	CTP Beta Ltd	100%
Czech Republic	CTP CEE Sub Holding, spol. s r.o.	100%
Czech Republic	CTPark České Velenice, spol. s r.o.	100%
Czech Republic	CTPark Aš II, spol. s r.o.	100%
Czech Republic	CTPark Chrastava, a.s.	100%
Czech Republic	CTPark Prague West, spol. s r.o.	100%
Czech Republic	CTP Borská Pole, spol. s r.o.	100%
Czech Republic	CTP Vysočina, spol. s r.o.	100%
Czech Republic	CTPark Ostrava, spol. s r.o.	100%
Czech Republic	CTP Moravia South, spol. s r.o.	100%
Czech Republic	CTPark Mladá Boleslav, spol. s r.o.	100%
Czech Republic	CTP Bohemia North, spol. s r.o.	100%
Czech Republic	CTPark Brno Líšeň West, spol. s r.o.	100%
Czech Republic	CTP Moravia North, spol. s r.o.	100%
Czech Republic	CTP Pilsen Region, spol. s r.o.	100%
Czech Republic	CTP Bohemia West, spol. s r.o.	100%
Czech Republic	CTPark Ostrava Poruba, spol. s r.o.	100%
Czech Republic	CTPark Hranice, spol. s r.o.	100%
Czech Republic	CTP XXIII, spol. s r.o.	100%
Czech Republic	CTPark Prague Airport, spol. s r.o.	100%
Czech Republic	CTPark Prague East, spol. s r.o.	100%
Czech Republic	CTP Ponávka Business Park, spol. s r.o.	100%
Czech Republic	CTP Solar I, a.s.	100%
Czech Republic	CTP Bohemia South, spol. s r.o.	100%
Czech Republic	CTP Alpha, spol. s r.o.	100%
Czech Republic	CTP Solar II, a.s.	100%
Czech Republic	CTP Solar III, spol. s r.o.	100%
Czech Republic	CTPark Brno Líšeň East, spol. s r.o.	100%
Czech Republic	CTP XVII, spol. s r.o.	100%
Czech Republic	CTP Portfolio Finance CZ, spol. s r.o.	100%
Czech Republic	➜ CTP Industrial Property CZ, spol. s r.o.	100%
Czech Republic	➜ CTPark Brno I, spol. s r.o.	100%
Czech Republic	➜ CTPark Brno I, spol. s r.o.	100%
Romania	CTP CONTRACTORS SRL	100%
Romania	CTPARK ALPHA SRL	100%
Romania	CTPARK BETA SRL	100%
Romania	CTPARK GAMMA SRL	100%
Romania	CTPARK DELTA SRL	100%
Romania	CTPARK BUCHAREST SRL	100%
Romania	CTPARK BUCHAREST WEST I SRL	100%
Romania	CTPARK DEVA II SRL	100%
Romania	CTPARK BUCHAREST WEST II SRL	100%
Romania	CTPARK KAPPA SRL	100%
Romania	CTPARK BUCHAREST II SRL	100%
Romania	CTPARK LAMBDA SRL	100%
Romania	CTPARK OMEGA SRL	100%
Romania	CTPARK PHI SRL	100%
Romania	CTPARK SIGMA SRL	100%
Romania	CTPARK TAU SRL	100%
Romania	CTPARK ETA SRL	100%
Romania	CTPARK BUCHAREST A1 SRL	100%
Romania	CTPARK BUCHAREST UPSILON SRL	100%
Hungary	CTPark Alpha Kft.	100%
Hungary	CTPark Beta Kft.	100%
Hungary	CTPark Gamma Kft.	100%
Hungary	CTPark Delta Kft.	100%
Hungary	CTPark Biatorbágy Kft.	100%
Hungary	CTPark Arrabona Kft.	100%
Hungary	CTPark Seven Kft.	100%
Hungary	CTPark Eight Kft.	100%
Hungary	CTPark Ten Kft.	100%
Hungary	CTPark Nine Kft.	100%
Slovakia	CTP Alpha SK, spol. s r.o.	90%, 10% CTP CEE Sub Holding, spol. s r.o.
Slovakia	CTPark Krásno nad Kysucou, spol. s r.o.	90%, 10% CTP CEE Sub Holding, spol. s r.o.
Slovakia	CTP Slovakia, s. r. o.	90%, 10% CTP CEE Sub Holding, spol. s r.o.
Slovakia	CTPark Bratislava, spol. s r.o.	90%, 10% CTP CEE Sub Holding, spol. s r.o.
Slovakia	CTPark Hlohovec, spol. s r.o.	90%, 10% CTP CEE Sub Holding, spol. s r.o.
Slovakia	CTPark Nitra, spol. s r.o.	90%, 10% CTP CEE Sub Holding, spol. s r.o.
Slovakia	CTPark Nove Mesto, spol. s.r.o.	90%, 10% CTP CEE Sub Holding, spol. s r.o.
Slovakia	CTPark Košice, spol. s r.o.	90%, 10% CTP CEE Sub Holding, spol. s r.o.
Slovakia	CTPark Žilina Airport, spol. s r.o.	90%, 10% CTP CEE Sub Holding, spol. s r.o.
Serbia	CTP Alpha d.o.o. Beograd‐Novi Beograd	100%
Serbia	CTP Beta d.o.o. Beograd‐Novi Beograd	100%
Serbia	CTP Gamma d.o.o. Beograd‐Novi Beograd,	100%
Serbia	CTP Delta d.o.o. Beograd‐Novi Beograd,	100%
Serbia	CTP Epsilon d.o.o. Beograd‐Novi Beograd,	100%
Serbia	➜ CTP Omega d.o.o. Beograd‐Novi Beograd,	100%
Serbia	CTP Kappa d.o.o. Beograd‐Novi Beograd	100%
Poland	CTPark Opole Sp. z o.o.	100%
Poland	CTP Sigma Poland Sp. z o.o.	100%
Netherlands	CTP Portfolio Finance Czech B.V.	100%
Czech Republic	➜ CTPark Modřice, spol. s r.o.	100%
Czech Republic	➜ CTPark Bor, spol. s r.o.	100%
Czech Republic	➜ CTPark Bor II, spol. s r.o.	100%
Appendices	GRI 2-2	464
	Remon LeonardVos Stichting Administratiekantoor Multivest
	CTPInvest,spol.sr.o.	Personwith significantcontrol
Czech Republic	CTP Property Czech, spol. s r.o.	100%
Czech Republic	CTP X, spol. s r.o.	100%
Czech Republic	CTPark Brno Retail, spol. s r.o.	100%
Czech Republic	CTPark Brno III, spol. s r.o.	100%
Czech Republic	CTPark Prague North II, spol. s r.o.	100%
Czech Republic	CTP XIII, spol. s r.o.	100%
Czech Republic	CTP XIV, spol. s r.o.	100%
Czech Republic	CTP Vlněna Business Park, spol. s r.o.	100%
Czech Republic	CTPark Plzeň, spol. s r.o.	100%
Czech Republic	CTP II, spol. s r.o.	100%
Czech Republic	CTPark Prague North III, spol. s r.o.	100%
Czech Republic	CTP III, spol. s r.o.	100%
Czech Republic	CTPark Stříbro, spol. s r.o.	100%
Czech Republic	CTP XV, spol. s r.o.	100%
Czech Republic	CTP XVI, spol. s r.o.	100%
Serbia	➜ CTP Lambda d.o.o. Beograd	100%
Czech Republic	CTP XVIII, spol. s r.o.	100%
Czech Republic	CTPark Brno Líšeň II, spol. s r.o.	100%
Czech Republic	CTP Forest, spol. s r.o.	100%
Czech Republic	Clubco, spol. s r.o.	100%
Czech Republic	CTPark Blučina, spol. s r.o.	100%
Czech Republic	CTP Barrandov, spol. s r.o.	100%
Czech Republic	CTP XXII, spol. s r.o.	100%
Czech Republic	CTPark Lysá nad Labem, spol. s r.o.	100%
Czech Republic	CTP Domeq Brno, spol. s r.o.	100%
Czech Republic	CTP XII, spol. s r.o.	100%
Czech Republic	CTP XXIV, spol. s r.o.	100%
Czech Republic	CTP Hotel Pilsen, spol. s r.o.	100%
Czech Republic	➜ CTP Hotel Operations Pilsen, spol. s r.o.	90%, 10% CTP Invest, spol. s r.o.
Czech Republic	CTP Hotel Prague, spol. s r.o.	100%
Czech Republic	➜ CTP Hotel Operations Prague, spol. s r.o.	90%, 10% CTP Invest, spol. s.r.o.
Czech Republic	CTP CEE Properties, spol. s r.o.	100%
Czech Republic	CTP V, spol. s r.o.	100%
Czech Republic	CTP IQ Ostrava, spol. s r.o.	100%
Czech Republic	CTP XI, spol. s r.o.	100%
Czech Republic	CTP IV, spol. s r.o.	100%
Czech Republic	CTP VI, spol. s r.o.	100%
Czech Republic	Spielberk Business Park, spol. s r.o.	100%
Czech Republic	CTZone Ostrava, spol. s r.o.	100%
Czech Republic	CTP Energy CZ, spol. s r.o.	100%
Czech Republic	CTP VIII, spol. s r.o.	100%
Czech Republic	KRMELÍNSKÁ I, s.r.o.	100%
Czech Republic	Spielberk Business Park II, spol. s r.o.	100%
Czech Republic	➜ CTP Hotel Operations Brno, spol. s r.o.	100%
Romania	CTP INVEST BUCHAREST SRL	100%
Romania	➜ Universal Management SRL	100%
Romania	➜ CTPARK MANAGEMENT TURDA SRL	100%
Romania	➜ CTPARK MANAGEMENT AFUMATI SRL,	100%
Romania	CTPARK THETA SRL	100%
Romania	CTPARK PSI SRL	100%
Romania	CTPARK ZETA SRL	100%
Romania	CTPARK EPSILON SRL	100%
Romania	CTPARK IOTA SRL	100%
Romania	CTPARK MIU SRL	100%
Romania	CTPARK OMICRON SRL	100%
Romania	CTPARK RHO SRL	100%
Romania	CTPARK KM23 NORTH SRL	100%
Romania	FOREST PROPERTY INVEST SRL	100%
Romania	CTP SOLAR SRL	100%
Romania	CTPARK ARAD NORTH SRL	100%
Romania	CTPARK SIBIU EAST SRL	100%
Romania	CTPARK CRAIOVA EAST SRL	100%
Romania	CTPARK ORADEA NORTH SRL	100%
Romania	CTPARK TIMISOARA EAST SRL	100%
Romania	CTPARK BRASOV SRL	100%
Romania	CTPARK BRASOV WEST SRL	100%
Romania	CTPARK BUCHAREST SOUTH II SRL	100%
Romania	CTPARK CHITILA SRL	100%
Romania	CTPARK PITESTI SRL	100%
Poland	CTP Invest Poland Sp. z o.o.	100%
Poland	CTP Eta Poland Sp. z o.o.	100%
Poland	CTP Theta Poland Sp. z o.o. w likwidacji	100%
Poland	CTPark Iłowa Sp. z o.o.	100%
Poland	CTPark Zabrze Sp. z o.o.	100%
Poland	CTP Beta Poland Sp. z o.o.	100%
Poland	CTP Delta Poland Sp. z o.o.	100%
Poland	CTP Gamma Poland Sp. z o.o.	100%
Poland	CTP Zeta Poland Sp. z o.o.	100%
Poland	CTP Epsilon Poland Sp. z o.o.	100%
Poland	CTP Iota Poland Sp. z o.o.	100%
Poland	CTP Kappa Poland Sp. z o.o.	100%
Poland	CTP Lambda Poland Sp. z o.o.	100%
Poland	CTP Mu Poland Sp. z o.o.	100%
Poland	CTP Nu Poland Sp. z o.o.	100%
Poland	CTP Xi Poland Sp. z o.o.	100%
Poland	CTP Energy Poland Sp. z o.o.	100%
Poland	CTP Pi Poland Sp. z o.o.	100%
Poland	CTP Rho Poland Sp. z o.o.	100%
Poland	CTP Omega Poland Sp. z o.o.	100%
Poland	CTP Chi Poland Sp. z o.o.	100%
Poland	CTP Property Beta Poland Sp. z o.o.	100%
Poland	CTP Property Alpha Poland Sp. z o.o.	100%
Poland	CTP Tau Poland Sp. z o.o.	100%
Poland	CTP Property Gamma Poland Sp. z o.o.	100%
Poland	CTP Property Delta Poland Sp. z o.o.	100%
Poland	CTP Property Epsilon Poland Sp. z o.o.	100%
Poland	CTP Property Eta Poland sp. z o.o.	100%
Poland	CTP Property Zeta Poland sp. z o.o.	100%
Hungary	CTP Management Hungary Kft.	100%
Hungary	CTPark Eleven Kft.	100%
Hungary	CTPark Twelve Kft.	100%
Hungary	CTPark Thirteen Kft.	100%
Hungary	CTPark Fourteen Kft.	100%
Hungary	CTPark Fifteen Kft.	100%
Hungary	CTPark Sixteen Kft.	100%
Hungary	CTPark Seventeen Kft.	100%
Hungary	Offi ce Campus Real Estate Kft.	100%
Hungary	CTP Energy Hungary Kft.	100%
Hungary	CTPark Eighteen Kft.	100%
Hungary	CTPark Nineteen Kft.	100%
Hungary	CTPark Twenty Kft.	100%
Hungary	CTPark Twenty One Kft.	100%
Hungary	CTPark Twenty Two Kft.	100%
Hungary	CTPark Twenty Three Kft.	100%
Hungary	CTPark Twenty Four Kft.	100%
Hungary	CTPark Twenty Five Kft.	100%
Hungary	CTPark Twenty Six Kft.	100%
Hungary	CTPark Twenty Seven Kft.	100%
Hungary	CTPark Twenty Eight Kft.	100%
Hungary	CTPark Twenty Nine Kft.	100%
Hungary	CTPark Thirty Kft.	100%
Hungary	CTPark Thirty One Kft.	100%
Slovakia	CTPark Čierny Les, spol. s r.o.	90%, 10% CTP Property Czech, spol. s r.o.
Slovakia	CTPark Prešov s.r.o.	90%, 10% CTP Property Czech, spol. s r.o.
Slovakia	CTP Prešov North, spol. s r.o.	90%, 10% CTP Property Czech, spol. s r.o.
Slovakia	CTPark Trnava II, spol. s r.o.	90%, 10% CTP Property Czech, spol. s r.o.
Slovakia	CTP Dunaj s.r.o.	90%, 10% CTP Property Czech, spol. s r.o.
Slovakia	CTPark Žilina Airport II, spol. s r.o.	90%, 10% CTP Property Czech, spol. s r.o.
Slovakia	CTP Solar SK, spol. s r.o.	90%, 10% CTP Property Czech, spol. s r.o.
Slovakia	CTPark Bratislava East, spol. s r.o.	90%, 10% CTP Property Czech, spol. s r.o.
Slovakia	CTP Invest SK, spol. s r.o.	90%, 10% CTP Property Czech, spol. s r.o.
Slovakia	CTPark Banská Bystrica, spol. s r.o.	90%, 10% CTP Property Czech, spol. s r.o.
Slovakia	CTPark Land SK 1, spol. s r.o.	90%, 10% CTP Property Czech, spol. s r.o.
Slovakia	CTPark Land SK 2, spol. s r.o.	90%, 10% CTP Property Czech, spol. s r.o.
Slovakia	CTPark Námestovo, spol. s r.o.	90%, 10% CTP Property Czech, spol. s r.o.
Netherlands	Multifi n B.V.	100%
Germany	➜ CTP Germany II GmbH	100%
Netherlands	CTP Baltic Holding B.V.	100%
Latvia	➜ Samesova SIA	100%
Latvia	➜ Vojtova SIA	100%
Latvia	➜ Zemankova SIA	100%
Lithuania	➜ UAB Samesova	100%
Lithuania	➜ UAB Vojtova	100%
Lithuania	➜ UAB Zemankova	100%
Estonia	➜ Samesova OŰ	100%
Estonia	➜ Vojtova OŰ	100%
Estonia	➜ Zemankova OŰ	100%
Netherlands	CTP Turkish Holding B.V.

465 Appendices

EPRA Financial Performance Metrics

The purpose of these indicators, as recommended by the European Public Real Estate Association (EPRA), is to enable easier comparison with similar real estate businesses. EPRA performance indicators are calculated in accordance with the EPRA Best Practices Recommendations (BPR) Guidelines.

Indicator	Definition	2022	2021
1. Company specific Adjusted EPS	A key measure of a company’s underlying operating results and an indication of the extent to which current dividend payments are supported by earnings.	€0.61	€0.49
2. EPRA NAV Metrics	EPRA NAV metrics makes adjustments to the NAV per IFRS financial statements to provide stakeholders with the most relevant information on the fair value of the assets and liabilities of a real estate investment company, under different scenarios.
a. EPRA Net Tangible Assets	Assumes that company buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax.	€13.81	€12.06
b. EPRA Net Reinstatement Value	Assumes that company never sell assets and aims to represent the value required to rebuild the company.	€13.94	€12.09
c. EPRA Net Disposal Value	Represents the shareholders’ value under a disposal scenario, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax.	€14.60	€10.25
3. EPRA Yield Metrics	A comparable measure for portfolio Valuations.
a. EPRA Net Initial Yield (NIY)	Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property, increased with (estimated) purchasers’ costs.	5.5%	5.2%
b. EPRA ‘topped-up’ NIY	This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods (or other unexpired lease incentives such as discounted rent periods and step rents).	5.6%	5.6%

7.2 EPRA 466 EPRA Financial Performance Metrics

EPRA Earnings

Amounts in € '000	2022	2021
Earnings per IFRS income statement	794,649	1,025,936
Adjustments to calculate EPRA Earnings, exclude:
(i) Changes in value of investment properties, development properties held for investment and other interests	723,580	1,100,571
(ii) Profits or losses on disposal of investment properties, development properties held for investment and other interests	870	2,233
(iii) Profits or losses on sales of trading properties including impairment charges in respect of trading properties.
(iv) Tax on profits or losses on disposals	-168	-146
(v) Negative goodwill / goodwill impairment
(vi) Changes in fair value of financial instruments and associated close-out costs	4,052	12,126
(vii) Acquisition costs on share deals and non-controlling joint venture interests	-1,648
(viii) Deferred tax in respect of EPRA adjustments	-161,385	-227,903
(ix) Adjustments (i) to (viii) above in respect of joint ventures (unless already included under proportional consolidation)
(x) Non-controlling interests in respect of the above	-1,301
EPRA Earnings	229,001	140,703
Average number of shares	433,982	383,407
EPRA Earnings per Share (EPS)	0.53 €	0.37 €
Company specific adjustments:
(a) Impairment/depreciation on property, plant and equipment	-5,657
(b) FX related to company restructuring, intra-group transfer of SPV's	-2,208	-5,306
(c) Costs associated with establishment of capital market and financing structure	-16,125	-41,094
(d) Non recurring items unrelated to operational performance (gifts, transaction advisory,…)	-24,512
(e) Deferred tax in respect of Company specific adjustments	6,339	6,654
Company specific Adjusted Earnings	265,507	186,106
Company specific Adjusted EPS	€0.61	€0.49

467 Appendices EPRA NAV Metrics

Amounts in € '000	31 December 2022	31 December 2022	31 December 2022	31 December 2021	31 December 2021	31 December 2021
EPRA Net Asset Value Metrics	EPRA NTA	EPRA NRV	EPRA NDV	EPRA NTA	EPRA NRV	EPRA NDV
IFRS Equity attributable to shareholders	5,284,517	5,284,517	5,284,517	4,106,830	4,106,830	4,106,830
Include / Exclude:
i) Hybrid instruments
Diluted NAV	5,284,517	5,284,517	5,284,517	4,106,830	4,106,830	4,106,830
Include:
ii. a) Revaluation of IP (if IAS 40 cost option is used)
ii. b) Revaluation of IPUD (if IAS 40 cost option is used)

100% Turkey ➜ CTP ALPHA GAYRİMENKUL VE İNŞAAT LİMİTED ŞİRKETİ, 100% ➜ CTP BETA GAYRİMENKUL VE İNŞAAT LİMİTED ŞİRKETİ, 100% ➜ CTP GAMMA GAYRİMENKUL VE İNŞAAT LİMİTED ŞİRKETİ 100% CTP Mediterranean Holding B.V. 100% Egypt ➜ CTP Real Estate 90%, 10% CTP Baltic Holding B.V. ➜ CTP Real Estate Development 90%, 10% CTP Baltic Holding B.V. ➜ CTP Invest 90%, 10% CTP Baltic Holding B.V. CTP Invest B.V. 100% CTP Alpha B.V. 100% CTP Beta B.V. 100% CTP Gamma B.V. 100% CTPark Bremen B.V. 100% CTP Epsilon B.V. 100% CTP Germany B.V. Multivest B.V. CTP Holding B.V. CTP N.V. 100% >75% 100% CTPPropertyB.V. 100% Netherlands CTP Theta B.V. 100% CTP Eta B.V. 100% CTP Zeta B.V. 100% CTP Energy B.V. 100% CTP Kappa B.V. 100% CTP Lambda B.V. 100% CTP ALC B.V. 100% CTP Mu B.V. 100% Serbia CTP Invest d.o.o. Beograd‐Novi Beograd, 100% CTP Zeta d.o.o. Beograd‐Novi Beograd, 100% ➜ CTP Property Alpha d.o.o. Beograd‐Novi Beograd, 100% CTP Energy d.o.o. Beograd-Novi Beograd 100% CTP Sigma d.o.o. Beograd‐Novi Beograd 100% CTP Omicron d.o.o. Beograd‐Novi Beograd 100% CTP Phi d.o.o. Beograd‐Novi Beograd 100% CTP Rho d.o.o. Beograd‐Novi Beograd 100% CTP Tau d.o.o. Beograd‐Novi Beograd 100% CTP Property Beta d.o.o.Beograd‐Novi Beograd 100% CTP Property Gamma d.o.o. Beograd‐ Novi Beograd 100% CTP Property Delta d.o.o. Beograd‐Novi Beograd 100% Bulgaria CTP Invest EOOD 100% CTPark Beta EOOD 100% CTPark Gamma EOOD 100% CTPark Delta EOOD 100% CTPark Epsilon EOOD 100% ➜ Project Vrajdebna EOOD 100% CTPark Zeta EOOD 100% ➜ CTPark Kappa EOOD 100% CTPark Eta EOOD 100% ➜ CTPark Lambda EOOD 100% CTPark Theta EOOD 100% CTPark Iota EOOD 100% CTPark Sofi a Ring Road EOOD 100% CTPark Sofi a EOOD 100% Austria CTP Invest Immobilien GmbH 100% CTP Alpha GmbH 100% CTP Beta GmbH 100% CTP Gamma GmbH 100% CTP Delta GmbH 100% CTP Epsilon GmbH 100% CTP Zeta GmbH 100% CTP Eta GmbH 100% CTP Theta GmbH 100% CTP Iota GmbH 100% Germany CTP Invest Germany GmbH 100% CTP Germany GmbH 100% ➜ CTP Germany V GmbH 90%, 10% CTP Invest, spol. s r.o. ➜ CTP Germany VI GmbH 90%, 10% CTP Invest, spol. s r.o. CTP Germany VII GmbH 100% CTP Germany VIII GmbH 100% CTP Germany IX GmbH 100% CTP Germany X GmbH 100% Slovenia CTP Ljubljana, d.o.o. 100% CTPark Alpha, d.o.o. 100% Spain Global Guanaco, S.L.U. 100% France CTP France 100% CTP Alpha France 100% CTP Beta France 100% Italy CTP Italy S.r.l. 100% CTP Alpha S.r.l. 100% CTP Beta S.r.l. 100% United Kingdom CTP Invest Ltd 100% CTP Alpha Ltd 100% CTP Beta Ltd 100% Czech Republic CTP CEE Sub Holding, spol. s r.o. 100% CTPark České Velenice, spol. s r.o. 100% CTPark Aš II, spol. s r.o. 100% CTPark Chrastava, a.s. 100% CTPark Prague West, spol. s r.o. 100% CTP Borská Pole, spol. s r.o. 100% CTP Vysočina, spol. s r.o. 100% CTPark Ostrava, spol. s r.o. 100% CTP Moravia South, spol. s r.o. 100% CTPark Mladá Boleslav, spol. s r.o. 100% CTP Bohemia North, spol. s r.o. 100% CTPark Brno Líšeň West, spol. s r.o. 100% CTP Moravia North, spol. s r.o. 100% CTP Pilsen Region, spol. s r.o. 100% CTP Bohemia West, spol. s r.o. 100% CTPark Ostrava Poruba, spol. s r.o. 100% CTPark Hranice, spol. s r.o. 100% CTP XXIII, spol. s r.o. 100% CTPark Prague Airport, spol. s r.o. 100% CTPark Prague East, spol. s r.o. 100% CTP Ponávka Business Park, spol. s r.o. 100% CTP Solar I, a.s. 100% CTP Bohemia South, spol. s r.o. 100% CTP Alpha, spol. s r.o. 100% CTP Solar II, a.s. 100% CTP Solar III, spol. s r.o. 100% CTPark Brno Líšeň East, spol. s r.o. 100% CTP XVII, spol. s r.o. 100% CTP Portfolio Finance CZ, spol. s r.o. 100% ➜ CTP Industrial Property CZ, spol. s r.o. 100% ➜ CTPark Brno I, spol. s r.o. 100% ➜ CTPark Brno I, spol. s r.o. 100% Romania CTP CONTRACTORS SRL 100% CTPARK ALPHA SRL 100% CTPARK BETA SRL 100% CTPARK GAMMA SRL 100% CTPARK DELTA SRL 100% CTPARK BUCHAREST SRL 100% CTPARK BUCHAREST WEST I SRL 100% CTPARK DEVA II SRL 100% CTPARK BUCHAREST WEST II SRL 100% CTPARK KAPPA SRL 100% CTPARK BUCHAREST II SRL 100% CTPARK LAMBDA SRL 100% CTPARK OMEGA SRL 100% CTPARK PHI SRL 100% CTPARK SIGMA SRL 100% CTPARK TAU SRL 100% CTPARK ETA SRL 100% CTPARK BUCHAREST A1 SRL 100% CTPARK BUCHAREST UPSILON SRL 100% Hungary CTPark Alpha Kft. 100% CTPark Beta Kft. 100% CTPark Gamma Kft. 100% CTPark Delta Kft. 100% CTPark Biatorbágy Kft. 100% CTPark Arrabona Kft. 100% CTPark Seven Kft. 100% CTPark Eight Kft. 100% CTPark Ten Kft. 100% CTPark Nine Kft. 100% Slovakia CTP Alpha SK, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Krásno nad Kysucou, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTP Slovakia, s. r. o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Bratislava, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Hlohovec, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Nitra, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Nove Mesto, spol. s.r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Košice, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Žilina Airport, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. Serbia CTP Alpha d.o.o. Beograd‐Novi Beograd 100% CTP Beta d.o.o. Beograd‐Novi Beograd 100% CTP Gamma d.o.o. Beograd‐Novi Beograd, 100% CTP Delta d.o.o. Beograd‐Novi Beograd, 100% CTP Epsilon d.o.o. Beograd‐Novi Beograd, 100% ➜ CTP Omega d.o.o. Beograd‐Novi Beograd, 100% CTP Kappa d.o.o. Beograd‐Novi Beograd 100% Poland CTPark Opole Sp. z o.o. 100% CTP Sigma Poland Sp. z o.o. 100% Netherlands CTP Portfolio Finance Czech B.V. 100% Czech Republic ➜ CTPark Modřice, spol. s r.o. 100% ➜ CTPark Bor, spol. s r.o. 100% ➜ CTPark Bor II, spol. s r.o. 100%# EPRA Financial Performance Metrics

EPRA Yield Metrics

EPRA NIY and 'Topped-up' NIY

Amounts in € '000

	December 2022	December 2021
Investment property – wholly owned	10,554,602	7,822,472
Investment property – share of JVs/Funds	11,313,112.10	185,746.50
Trading property (including share of JVs)	5,228.78	3,807,430.70
Less: developments	2,448,729.72	1,899
Completed property portfolio	39,882,714.20	5,389,510.64
Allowance for estimated purchasers’ costs	4,794.17	8.0
Gross up completed property portfolio valuation	384	289,000.00
Annualised cash passing rental income	248,000.00	5,592.00
Property outgoings	270,000.00	No District Heating reported
Annualised net rents	2,345,000.00	No data shared
Add: notional rent expiration of rent free periods or other lease incentives	1,543.00	No data shared
Topped-up net annualised rent
EPRA NIY	5.5%	5.2%
EPRA “topped-up” NIY	5.6%	5.6%

Appendices

EPRA Performance Measures

7.3 EPRA Sustainability Performance Measures – Environment

	2022	2021	Notes
Definition	Elec-Abs: The total amount of electricity consumed. It includes electricity from renewable and non-renewable sources, whether imported or generated on site. Of which renewable On-site solar energy generation: The total amount of indirect energy consumed from district heating or cooling systems. In this instance, ‘indirect’ means energy generated off site and typically bought from an external energy supplier. DH&C-Abs: The total amount of fuel used from direct (renewable and non-renewable) sources (‘direct’ meaning that the fuel is combusted on site). Fuels-Abs: The total amount of direct and indirect energy used by renewable and non-renewable sources in a building, normalised by number of employees. Energy-Int: The total amount of direct greenhouse gas emissions generated (‘direct’ meaning that GHG emissions are generated on site through combustion of the energy source/ fuel). In this calculation, CTP includes use of natural gas in the offices, car fuel, as well as jet fuel. GHG-Dir-Abs: The total amount of indirect greenhouse gas emissions generated (‘indirect’ meaning that GHG emissions are generated off site during combustion of the energy source). GHG-Indir-Abs: The total amount of water consumed within the corporate offices over the full reporting year. Water-Abs: The total amount of water consumption within our buildings, normalised by number of employees. Water-Int: Total number of assets that have formally obtained sustainability certification, rating, or labelling at the end of the reporting year. Cert-Tot:	Elec-Abs: 2022 Scope 2 only, corporate and landlord controlled parts of parks and portfolio 2021 data was only for corporate offices of 4 core countries Both numbers in kWh DH&C-Abs: Both numbers in kWh Fuels-Abs: Both years in MWh Energy-Int: 2022 Scope 2 only, corporate and landlord controlled parts of parks and portfolio 2021 data was only for corporate offices of 4 core countries 2022 numbers in kWh GHG-Dir-Abs: 2022 Scope 1 only, buildings in corporate and landlord controlled parts of parks and portfolio 2021 data was only for corporate offices of 4 core countries Both numbers in kWh GHG-Indir-Abs: Only energy used in offices, kWh per FTE as a weighted average 2022 Scope 1, includes all fuel consumed: Offices, portolio, company cars, company aeroplanes 2021 data was only for corporate offices of 4 core countries, and was scope 1 and 2 together Numbers are in kgCO 2 e Water-Abs: 2022 Scope 2, this includes all energy from offices and landlord controlled parts of parks and portfolio Numbers are in kgCO 2 e Water-Int: 2022 numbers: Water consumption in offices only, German and Serbia did not provide data, Poland left out one office. 2021 data was only for corporate offices of 4 core countries Both numbers are in m 3 Cert-Tot: Only water used in offices, per FTE as a weighted average: Corporate water consumption devided by 598 FTE	Total number of assets that have formally obtained sustainability certification, rating, or labelling at the end of the reporting year.
Amounts in € '000	5,284,517	4,106,830
CapEx	4,106,830	4,106,830
Net Property Income	-880,924	-725,779
Net Debt	27,516	172
Total Equity	3,492	2,111
Goodwill	1,199,594	-3,471
Intangibles	50,864	6,595
NAV	6,134,433	6,188,789
Fully diluted number of shares	444,093	400,408
NAV per share	13.81	13.94

7.3 EPRA Sustainability Performance Measures – Social

	2022	2021	Notes
Definition	BODs gender: The percentage of male and female employees in the organisation’s governance bodies and other significant employee categories. Diversity-Emp: The ratio of the basic salary and/or remuneration of men to women. The number shown gives women’s basic salary compared men’s. Diversity-Pay: The average hours of training for the organisation's employees. Emp-Training: The percentage of total employees who received regular performance and career development reviews during the reporting period. Emp-Dev: The total number and rate of new employee hires and employee turnover. Emp-Turnover: The occupational health and safety performance with relation to the Group's direct employees. H&S-Emp: The composition of the highest governance body. Gov-Board:	BODs gender: Female member: 33% Male members: 66% Employees: Total organisation: Female employees: 271 (49%) Male Employees: 282 (51%) Under 30: Female employees: 76 (67%) Male Employees: 38 (33%) 30-50 Female employees: 167 (46%) Male Employees: 199 (54%) 50 and over Female employees: 28 (38%) Diversity-Emp: Total organisation: 67% Under 30: 70% 30-50: 78% 50 and over: 42% Diversity-Pay: No data available Emp-Training: No data available Emp-Dev: New hires: 105 Dismissals: 23 Voluntary leave: 82 Turnover rate: 20.2% Emp-Turnover: Absentee rate: 2.6% H&S-Emp: Number of Executive members: 2. Number of Non-executive member: 4 Gov-Board:	BODs gender: Female member: 33% Male members: 66% Employees: Total organisation: Female employees: 306.41 Male employees: 360.55 Under 30 Female employees: 76.03 Male employees: 37.75 30-50 Female employees: 198.87 Male employees: 268.8 50 and over Female employees: 31.51 Male employees: 54 Diversity-Emp: Total organisation: 69% Under 30: 70% 30-50: 75% 50 and over: 60% Diversity-Pay: 3 hours per employees on average Emp-Training: No data available Emp-Dev: New hires: 248.8 Dismissals: 47.48 Voluntary leave: 61.45 Turnover rate: 18.22% Emp-Turnover: Absentee rate: 6.4% H&S-Emp: Number of Executive members: 2. Number of Non-executive member: 4 Gov-Board:

7.4 EU Taxonomy

EU Taxonomy eligibility and alignment – Proportion of Turnover

Economic activity (1)	Code(s) (2)	Absolute turnover (3) (kEUR)	Proportion of turnover (4) [%]	Climate change mitigation (5) [%]	Climate change adaptation (6) [%]	Water and marine resources (7) [%]	Circular economy (8) [%]	Pollution (9) [%]	Biodiversity and ecosystems (10) [%]	Climate change mitigation (11) [%]	Climate change adaptation (12) [%]	Water and marine resources (13) [%]	Circular economy (14) [%]	Pollution (15) [%]	Biodiversity and ecosystems (16) [%]	Minimum safeguards (17) [Y/N]	Taxonomy aligned proportion 2022 (18) [%]	Taxonomy aligned proportion 2021 (19) [%]	Category (enabling activity) (20)	Category (transitional activity (21)
A. Taxonomy eligible activities
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Acquisition and ownership of buildings	7.7	273,424	46.4%	46.4%												Y	46.4%		E
Turnover of environmentally sustainable activities (Taxonomy aligned) (A.1)		273,424	46.4%	46.4%													46.4%
A.2 Taxonomy eligible but not environmentally sustainable activities (not Taxonomy aligned activities)
Construction of new buildings	7.1	36,200	6.1%																E
Acquisition and ownership of buildings	7.7	279,489	47.4%																E
Turnover of Taxonomy eligible but not environmentally sustainable activities (not Taxonomy aligned activities (A.2)		315,689	53.6%
Total (A.1 + A.2)		589,113	100%
B. Taxonomy-non eligible activities
Turnover of Taxonomy non- eligible activities (B)		0	00%
Total (A+B)		589,113	100%

EU Taxonomy eligibility and alignment – Proportion of CapEx

Economic activity (1)	Code(s) (2)	Absolute CapEx (3) (kEUR)	Proportion of CapEx (4) [%]	Climate change mitigation (5) [%]	Climate change adaptation (6) [%]	Water and marine resources (7) [%]	Circular economy (8) [%]	Pollution (9) [%]	Biodiversity and ecosystems (10) [%]	Climate change mitigation (11) [%]	Climate change adaptation (12) [%]	Water and marine resources (13) [%]	Circular economy (14) [%]	Pollution (15) [%]	Biodiversity and ecosystems (16) [%]	Minimum safeguards (17) [Y/N]	Taxonomy aligned proportion 2022 (18) [%]	Taxonomy aligned proportion 2021 (19) [%]	Category (enabling activity) (20)	Category (transitional activity (21)
A.

EU Taxonomy eligibility and alignment – Proportion of OpEx

Substantial contribution criteria	Significantly Harm	DSNH criteria (Do Not	Economic activity (1)	Code(s) (2)	Absolute OpEx (3) (kEUR)	Proportion of OpEx (4) [%]	Climate change mitigation (5) [%]	Climate change adaptation (6) [%]	Water and marine resources (7) [%]	Circular economy (8) [%]	Pollution (9) [%]	Biodiversity and ecosystems (10) [%]	Climate change mitigation (11) [%]	Climate change adaptation (12) [%]	Water and marine resources (13) [%]	Circular economy (14) [%]	Pollution (15) [%]	Biodiversity and ecosystems (16) [%]	Minimum safeguards (17) [Y/N]	Taxonomy aligned proportion 2022 (18) [%]	Taxonomy aligned proportion 2021 (19) [%]	Category (enabling activity) (20) [E/T]	Category (transitional activity (21) [E/T]
			A. Taxonomy eligible activities
			A.1 Environmentally sustainable activities (Taxonomy-aligned)
			Acquisition and ownership of buildings	7.7	11,611	13.7%	13.7%												Y	13.7%		E
			OpEx of environ- mentally sustainable activities (Taxonomy aligned) (A.1)		11,611	13.7%
			A.2 Taxonomy eligible but not environmentally sustainable activities (not Taxonomy aligned activities)
			Acquisition and ownership of buildings	7.7	57,376	67.7%
			OpEx of Taxonomy eligible but not envi- ronmentally sustain- able activities (not Taxonomy aligned activities (A.2)		57,376	67.7%
			Total (A.1 + A.2)		68,987	81.4%
			B. Taxonomy-non eligible activities
			OpEx of Taxonomy non-eligible activities (B)		15,771	18.6%
			Total (A+B)		84,758	100%

474

EU Taxonomy / TCFD Index

TCFD Index	Theme	Recommendations Section	Section
7.5	Governance	Disclose the organisation’s governance around climate-related risks and opportunities.
		A. Describe the board’s oversight of climate related risks and opportunities	4.1
		B. Describe management’s role in assessing and managing climate- related risks and opportunities.	4.1, 4.3.1
	Strategy	Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation's businesses, strategy, and financial planning where such information is material.
		A. Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long-term.	4.3.1
		B. Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning.	4.3.1
		C. Describe the resilience of the organisation’s strategy, taking into consideration different climate related scenarios, including a 2˚C or lower scenario.	4.3.1
	Risk management	Disclose how the organisation identifies, assesses, and manages climate-related risks.
		A. Describe the organisation’s process for identifying and assessing climate-related risks	4.3.1
		B. Describe the organisation’s process for managing climate-related risks.	4.3.1
		C. Describe how processes for identifying, assessing, and managing climate- related risks are integrated into the organisation’s overall risk management.	4.3.1, 5.2.9
	Metrics and targets	Disclose the metrics and targets used to assess and manage relevant climate- related risks and opportunities where such information is material.
		A. Disclose the metrics used by the organisation to assess climate related risks and opportunities in line with its strategy and risk management process	4.3.1, 4.6
		B. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks.	4.3.1, sBPR EPRA
		C. Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets.	4.3.1

475

Appendices

GRI Index

GRI Standard	Location	Comments/Other references
7.6
2 General Disclosures
1. The organisation and its reporting practices
2-1 Organisational details	3.5 Group Level Insights, p. 96 Notes to the consolidated financial statements, p. 355
2-2 Entities included in the organisation’s sustainability reporting	Chapter 7.1 Appendix (group chart) p. 464
2-3 Reporting period, frequency, and contact point	Sustainability Report
2-4 Restatement of information	Sustainability Report
2-5 External assurance	Sustainability Report
2. Activities and workers
2-6 Activities, value chain, and other business relationships	1.1 Business decription; model and strategy, p. 4
2-7 Employees	4.4 Company Culture and employees, p. 278; Sustainability Report
2-8 Workers who are not employees	Sustainability Report
3. Governance
2-9 Governance structure and composition	5.1.1 CTP´s governance struture, 5.1.3 Appointment and composition of the board, p.317
2-10 Nomination and selection of the highest governance body	5.1.3 Appointment and composition of the board , p. 317
2-11 Chair of the highest governance body	5.1.3 Appointment and composition of the board, p. 317
2-12 Role of the highest governance body in overseeing the management of impacts	4.1 Highlights of 222, p. 258; Sustainability report
2-13 Delegation of responsibility for managing impacts	4.1 Highlights of 2022, p. 258, Sustainability report
2-14 Role of the highest governance body in sustainability reporting	Sustainability Report
2-15 Conflicts of interest	5.1.3 Appointment and composition of the board, p. 317
2-16 Communication of critical concerns	Sustainability Report
2-17 Collective knowledge of the highest governance body	5.1.3 Appointment and the composition of the board (Directors competency table), p. 318
2-18 Evaluation of the performance of the highest governance body	5.1.8 Board meetings, p. 329
2-19 Remuneration policies	5.1.6 CTP N.V. Remuneration report, p. 320
2-20 Process to determine remuneration	5.1.6 CTP N.V. Remuneration report, p. 320, 321
2-21 Annual total compensation ratio	Sustainability Report
4. Strategy, policies, and practices
2-22 Statement on sustainable development strategy	Sustainability Report
2-23 Policy commitments	4.3.4 Conducting Business with Integrity, p. 277
2-24 Embedding policy commitments	Sustainability Report, 4.3.4 Conducting Business with Integrity, p. 277
2-25 Processes to remediate negative impacts	Sustainability Report
2-26 Mechanisms for seeking advice and raising concerns	Sustainability Report
2-27 Compliance with laws and regulations	Sustainability Report
2-28 Membership associations	Sustainability Report
5. Stakeholder engagement
2-29 Approach to stakeholder engagement	Sustainability Report
2-30 Collective bargaining agreements	CTP has no employees covered by collective bargaining agreements

476

GRI Index

GRI Standard	Location	Comments/Other references
Material Topics
3-1 Process to determine material topics	Sustainability Report, 4.1 Highlights on 2022, p. 258
3-2 List of material topics	Sustainability Report, 4.2 Double Materiality Assessment, p. 261
3-3 Management of material topics	4.3 ESG Strategy, p. 263
GRI Material Topic Standards
201: Economic Performance	2016
201-1 Direct economic value generated and distributed	3.2 Operational performance, p. 74; 3.3 Financial performance, p.84; 3.4 Funding and hedging, p.87
201-2 Financial implication and other risks and opportunities due to climate change	Sustainability Report, 4.3.1 Striving to be climate positive, p. 265
201-4 Financial assistance received from government	Sustainability Report
202: Market Presence	2016
202-1 Ratios and standard entry level wage by gender compared to local minimum wage	Sustainability Report
202-2 Proportion of senior management hired from local community	Data not available
203: Indirect Economic Impact
203-1 Infrastructure investments and services supported	Sustainability Report, 4.3.3 Stimulating Social Impact and Wellbeing, p. 275
203-2 Significant indirect economic impacts	Data not available
204: Procurement practices - 2016
204-1 Proportion of spending on local providers	Sustainability Report
205: Anti-Corruption – 2016
205-1 Operations assessed for risks related to corruption	Sustainability Report, 4.3.4 Conducting Business with Integrity, p. 277
205-2 Communication and training about anticorruption policies and procedures	Sustainability Report
205-3 Confirmed incidents of corruption and actions taken	Sustainability Report
206: Anti-competitive behaviour – 2016
206-1 Legal actions for anticompetitive behaviour, anti-trust, and monopoly practices	Sustainability Report, 4.3.4 Conducting Business with Integrity, p. 277
207: Tax - 2019
207-1 Approach to tax	Sustainability Report, 4.3.4 Conducting Business with Integrity, p. 277
207-2 Tax Governance, control, and risk management	Sustainability Report, 4.3.4 Conducting Business with Integrity, p. 277
207-3 Stakeholder engagement and management of concerns related to tax	Sustainability Report, 4.3.4 Conducting Business with Integrity, p.

301: Materials - 2016

301-1 Materials used by weight or volume

Data not available

301-2 Recycled input materials used

Data not available

301-3 Reclaimed products and their packaging materials

Data not available

302: Energy 2016

302-1 Energy consumption within the organisation

Sustainability Report

302-2 Energy consumption outside of the organisation

Sustainability Report

302-3 Energy Intensity

Sustainability Report

303: Water and Effluents 2018

303-1 Interactions with water as a shared resource

Sustainability Report 477 Appendices GRI Standard Location Comments/Other references

303-2 Management of water discharge-related impact

Sustainability Report

303-3 Water Withdrawal

Sustainability Report

GRI 305: Emissions – 2016

305-1 Direct (Scope 1) GHG emissions

Sustainability report, 4.3.1 Striving to be climate positive, p. 265

305-2 Energy indirect (Scope 2) GHG emissions

Sustainability report, 4.3.1 Striving to be climate positive, p. 265

305-3 Other indirect (Scope 3) GHG emissions

Sustainability report, 4.3.1 Striving to be climate positive, p. 265

305-4 GHG emissions intensity

Sustainability report, 4.3.1 Striving to be climate positive, p. 265

306: Waste - 2020

306-1 Waste generation and significant waste-related impacts

Sustainability Report

306-2 Management of significant waste-related impacts

Sustainability Report

306-3 Waste generated

Sustainability Report

306-4 Waste diverted from disposal

Sustainability Report

306-5 Waste directed to disposal

Sustainability Report

308: Supplier environmental assessment – 2016

308-1 New suppliers/providers that were screened using environmental criteria

Sustainability Report

308-2 Negative environmental impacts in the supply chain and actions taken

Sustainability Report

401: Employment - 2016

401-1 New Employee hires and employee turnover

4.4 Company culture and employees, p. 278, Sustainability report 3.4.3 CTPs employees

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

Full-time and part-time employees receive the same benifits

402: Labour/Management Relations - 2016

402-1 Minimum notice periods regarding operational changes

Data not available

403: Occupational Health and Safety 2018

403-1 Occupational health and safety system

Sustainability Report, 4.3.3 Stimulating social impact and wellbeing, p. 275

403-2 Hazard Identification, risk assessment, and incident investigation

Sustainability Report, 4.3.3 Stimulating social impact and wellbeing, p. 275

403-3 Occupational health services

Sustainability Report, 4.3.3 Stimulating social impact and wellbeing, p. 275

403-4 Worker participation, consultation, and communication on occupational health and safety

Sustainability Report, 4.3.3 Stimulating social impact and wellbeing, p. 275

403-5 Worker training on occupational health and safety

Sustainability Report, 4.3.3 Stimulating social impact and wellbeing, p. 275

403-6 Promotion of worker health

Sustainability Report, 4.3.3 Stimulating social impact and wellbeing, p. 275

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

Sustainability Report, 4.3.3 Stimulating social impact and wellbeing, p. 275

403-8 Worker covered by an occupational health and safety management system

Sustainability Report

403-9 Work-related injuries

Sustainability Report

403-10 Work-related ill health

Sustainability Report

404: Training and education - 2016

404-1 Average hours of training per year per employee

Sustainability Report

404-2 Programs for upgrading employee skills and transition assistance programs

Sustainability Report

404-3 Percentage of employees receiving regular performance and career development reviews

Data not available

405: Diversity and Equal Opportunity 2016

405-1 Diversity of governance bodies and employees

4.4 Company culture and employees, p. 278, 4.3.4 Conducting Business with Integrity, p. 277, Sustainability report

405-2 Ratio of basic salary and remuneration of women to men

5.1.6 CTP N.V. 2022 Remuneration report (Pay Ratio) p. 327, Sustainability Report

406: Non-discrimination – 2016

406-1 Incidents of discrimination and corrective actions taken

No incidents were reported

407: Freedom of association and collective bargaining - 2016

407-1 Operations and providers in which the right to freedom of association and collective bargaining may be at risk

4.3.4 Conducting business with integrity, p. 277, Sustainability Report

410-1 Security personnel trained in human rights policies or procedures

Not Applicable. CTP does not hire security staff

412: Human rights assessment - 2016

412-1 Operations that have been subject to human rights reviews or impact assessments

Sustainability Report

412-2 Employee training on human rights policies or procedures

4.3.4 Conducting business with integrity, p. 277, Sustainability report

412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

Sustainability Report

413: Local communities - 2016

413-1 Operations with local community engagement, impact assessments, and development programs

Sustainability Report

413-2 Operations with significant actual and potential negative impacts on local communities

Sustainability Report

414: Supplier social assessment - 2016

414-1 New suppliers that were screened using social criteria

4.3.4 Conducting business with integrity, p. 277, Sustainability report

414-2 Negative social impacts in the supply chain and actions taken

4.3.4 Conducting business with integrity, p. 277, Sustainability report

415: Public Policy - 2016

Sustainability Report

418: Customer privacy - 2016

418-1 Substantiated complaints concerning breaches of customer privacy and losses of data

CTP did not identify any issues, also during cybersecurity tests, nor was such a breach announced to the Company.

Portfolio Property List 2022

Rank	Country	Park	GLA	Type	Ownership
1	Romania	CTPark Bucharest West	767	Industrial	Own
2	Czech	CTPark Bor	640	Industrial	Own
3	Romania	CTPark Bucharest	547	Industrial	Own
4	Czech	CTPark Brno	504	Industrial	Own
5	Czech	CTPark Ostrava	390	Industrial	Own
6	Hungary	CTPark Budapest West	292	Industrial	Own
7	Czech	CTPark Plzeň	250	Industrial	Mixed
8	Czech	CTPark Modřice	205	Industrial/Office	Own
9	Romania	CTPark Bucharest North	198	Industrial	Own
10	Hungary	CTPark Budapest East	191	Industrial	Own
11	Slovakia	CTPark Trnava	162	Industrial	Own
12	Slovakia	CTPark Námestovo	144	Industrial	Own
13	Romania	CTPark Timisoara	144	Industrial	Own
14	Czech	CTPark Hranice	134	Industrial	Own
15	Slovakia	CTPark Bratislava	130	Industrial	Own
16	Germany	Wilhelmshaven West	124	Industrial	Own
17	Czech	CTPark Brno Líšeň	121	Industrial	Own
18	Czech	CTPark Pohořelice	119	Industrial	Own
19	Netherlands	CTPark Gorinchem	104	Industrial	Own
20	Czech	CTPark Prague North	102	Industrial	Third party AUM
21	Serbia	CTPark Belgrade North	101	Industrial	Own
22	Czech	CTPark Teplice	96	Industrial	Third party AUM
23	Poland	CTPark Ilowa	95	Industrial	Own
24	Czech	Spielberk	92	Office/Hotel	Own
25	Czech	CTPark Žatec	92	Industrial	Own
26	Czech	CTPark Prague East	89	Industrial	Own
27	Hungary	CTPark Budapest Vecsés	86	Industrial	Own
28	Czech	Ponávka	85	Industrial/Office	Own
29	Hungary	CTPark Komárom	80	Industrial	Own
30	Slovakia	CTPark Košice	80	Industrial	Own
31	Czech	CTPark Kadaň	76	Industrial	Own
32	Czech	CTPark Mladá Boleslav	74	Industrial	Own
33	Romania	CTPark Pitesti	72	Industrial	Own
34	Germany	Hannover North	72	Industrial	Own
35	Czech	CTPark Nový Jičín	69	Industrial	Own
36	Czech	CTPark Humpolec	68	Industrial	Own
37	Czech	Vlněna	66	Office	Own
38	Bulgaria	CTPark Sofia	64	Industrial	Own
39	Hungary	CTPark Budapest South	64	Industrial	Own
40	Serbia	CTPark Belgrade West	59	Industrial	Own
41	Poland	CTPark Opole	59	Industrial	Own
42	Czech	CTPark Prague Airport	59	Industrial	Own
43	Romania	CTPark Brasov West	57	Industrial	Own
44	Romania	CTPark Craiova	54	Industrial	Own
45	Czech	CTPark Aš	54	Industrial	Own
46	Czech	CTPark Brno South	53	Industrial	Own
47	Slovakia	CTPark Žilina	53	Industrial	Own
48	Romania	CTPark Bucharest South II	53	Industrial	Own
49	Hungary	CTPark Tatabánya	52	Industrial	Own
50	Serbia	CTPark Kragujevac	51	Industrial	Own
51	Serbia	CTPark Novi Sad	51	Industrial	Own
52	Germany	Munchen North	49	Industrial	Own
53	Hungary	CTPark Budapest North	48	Industrial	Own
54	Czech	CTPark Mladá Boleslav II	47	Industrial	Own
55	Germany	Lohne	47	Industrial	Own

Portfolio Property List 2022

Rank	Country	Park	GLA	Type	Ownership
56	Romania	CTPark Bucharest Chitila	47	Industrial	Own
57	Germany	Bad Waldsee	46	Industrial	Own
58	Romania	CTPark Arad	46	Industrial	Own
59	Germany	Bad Salzdetfurth	46	Industrial	Own
60	Slovakia	CTPark Žilina Airport	45	Industrial	Own
61	Germany	Freisen	44	Industrial	Own
62	Germany	Euskirchen	44	Industrial	Own
63	Romania	CTPark Sibiu East	43	Industrial	Own
64	Czech	CTPark Hlubočky	43	Industrial	Own
65	Czech	CTPark Divišov	43	Industrial	Own
66	Germany	Emden	42	Industrial	Own
67	Czech	CTPark Karviná	42	Industrial	Own
68	Hungary	CTPark Arrabona II	41	Industrial	Own
69	Czech	CTPark Cerhovice	41	Industrial	Own
70	Germany	Duren	41	Industrial	Own
71	Slovakia	CTPark Prešov South	40	Industrial	Own
72	Czech	CTPark Ostrava Poruba	40	Industrial	Own
73	Romania	CTPark Sibiu	39	Industrial	Own
74	Germany	Rostock	38	Industrial	Own
75	Czech	CTPark Pardubice	37	Industrial	Own
76	Czech	CTPark Přeštice	37	Industrial	Own
77	Germany	Remscheid West	36	Industrial	Own
78	Czech	Europort
---	---	---	---	---	---
36	Czech	CTPark Cheb	36	Industrial	Own
35	Bulgaria	CTPark Sofia East	35	Industrial	Own
81	Germany	Neubrandenburg	35	Industrial	Own
82	Slovakia	CTPark Nitra	35	Industrial	Own
83	Romania	CTPark Bucharest Mogosoia	34	Industrial	Own
85	Germany	Gevelsberg South	32	Industrial	Own
86	Czech	CTPark Planá	32	Industrial	Own
87	Poland	CTPark Kobyłka	31	Industrial	Own
88	Germany	Treuenbrietzen	31	Industrial	Own
89	Czech	CTPark Jihlava	31	Industrial	Own
90	Germany	Munchen South	30	Industrial	Own
91	Poland	CTPark Warsaw South (Mszczonów)	30	Industrial	Own
92	Germany	Wiesmoor, Germany	30	Industrial	Own
93	Bulgaria	CTPark Sofia Airport	30	Industrial	Own
94	Slovakia	CTPark Hlohovec	29	Industrial	Own
95	Romania	CTPark Cluj	29	Industrial	Own
96	Germany	Hannover West	28	Industrial	Own
97	Czech	CTPark Blatnice	28	Industrial	Own
98	Czech	CTPark Česká Lípa	28	Industrial	Own
99	Germany	Dortmund East	27	Industrial	Own
100	Germany	Solingen	27	Industrial	Own
101	Hungary	CTPark Szombathely East	26	Industrial	Own
102	Hungary	CTPark Székesfehérvár	26	Industrial	Own
103	Slovakia	CTPark Voderady	26	Industrial	Own
104	Romania	CTPark Deva II	26	Industrial	Own
105	Romania	CTPark Oradea Airport	26	Industrial	Own
106	Romania	CTPark Timisoara South	25	Industrial	Own
107	Romania	CTPark Targu Mures	25	Industrial	Own
108	Germany	Villingen-Schwenningen	25	Industrial	Own
109	Germany	Eisenach	25	Industrial	Own
110	Czech	CTPark Nošovice	25	Industrial	Own
481
Appendices	Rank	Country	Park	GLA	Type
111	Czech	IQ Ostrava	24	Office	Own
112	Germany	Drei Gleichen	24	Industrial	Own
113	Germany	Gevelsberg East	24	Industrial	Own
114	Germany	Duisburg North	23	Industrial	Own
115	Romania	CTPark Salonta	23	Industrial	Own
116	Netherlands	CTPark Rotterdam	23	Industrial	Own
117	Romania	CTPark Turda	23	Industrial	Own
118	Germany	Goslar East	22	Industrial	Own
119	Romania	CTPark Ineu	22	Industrial	Own
120	Romania	CTPark Oradea North	22	Industrial	Own
121	Germany	Ingolstadt North	21	Industrial	Own
122	Hungary	CTPark Budapest Ullő	21	Industrial	Own
123	Romania	CTPark Deva	21	Industrial	Own
124	Czech	CTPark Okříšky	21	Industrial	Own
125	Germany	Wittingen	21	Industrial	Own
126	Hungary	CTPark Szombathely	21	Industrial	Own
127	Germany	Simmern/Hunsruck	21	Industrial	Own
128	Czech	CTPark Kvasiny	21	Industrial	Own
129	Germany	Schwabisch Hall South	20	Industrial	Own
130	Czech	CTPark Prague West	20	Industrial	Own
131	Czech	CTPark Chrastava	20	Industrial	Own
132	Germany	Regensburg	20	Industrial	Own
133	Germany	Aalen West	19	Industrial	Own
134	Germany	Schwerin South	19	Industrial	Own
135	Czech	CTPark Zákupy	19	Industrial	Own
136	Czech	CTPark Lipník nad Bečvou	19	Industrial	Own
137	Germany	Zella-Mehlis East	19	Industrial	Own
138	Hungary	CTPark Mosonmagyaróvár	18	Industrial	Own
139	Czech	Hotel Plzeň	18	Hotel	Own
140	Czech	CTPark Blučina	18	Industrial	Own
141	Germany	Bremen North	17	Industrial	Own
142	Romania	CTPark Bucharest South	17	Industrial	Own
143	Germany	Lichtenfels	16	Industrial	Own
144	Germany	Remscheid North	16	Industrial	Own
145	Germany	Duisburg West	16	Industrial	Own
146	Germany	Aalen East	16	Industrial	Own
147	Czech	CTPark Most	15	Industrial	Own
148	Germany	Numbrecht	15	Industrial	Own
149	Germany	Magdeburg West	15	Industrial	Own
150	Germany	Berlin South	14	Industrial	Own
151	Slovakia	CTPark Nové Mesto	14	Industrial	Own
152	Germany	Dusseldorf West	13	Industrial	Own
153	Germany	Kloster Lehnin	13	Industrial	Own
154	Czech	CTZone Ostrava	13	Industrial	Own
155	Germany	Bocholt	13	Industrial	Own
156	Germany	Reutlingen North	13	Industrial	Own
157	Czech	CTPark Chomutov	13	Industrial	Own
158	Germany	Bad Oeynhausen	13	Industrial	Own
159	Hungary	CTPArk Budapest Campus	13	Industrial	Own
160	Germany	Wolfsburg East	13	Industrial	Own
161	Germany	Bielefeld South	12	Industrial	Own
162	Germany	Magdeburg East	12	Industrial	Own
163	Germany	Sonneberg	12	Industrial	Own
164	Germany	Bremen West	12	Industrial	Own
165	Czech	CTPark Ostrava - Poruba	12	Industrial	Own
482	Portfolio Property List 2022
Rank	Country	Park	GLA	Type	Ownership
166	Czech	CTPark Louny	12	Industrial	Own
167	Germany	Wismar	12	Industrial	Own
168	Germany	Zella-Mehlis Süd	12	Industrial	Own
169	Bulgaria	CTPark Plovdiv Airport	12	Industrial	Own
170	Hungary	CTPark Arrabona	11	Industrial	Own
171	Germany	Neustadt-Glewe	11	Industrial	Own
172	Hungary	CTPark Kecskemét	11	Industrial	Own
173	Slovakia	CTPark Krásno nad Kysucou	11	Industrial	Own
174	Germany	Magdeburg North	10	Industrial	Own
175	Germany	Kaiserslautern North	10	Industrial	Own
176	Romania	CTPark Arad North	10	Industrial	Own
177	Germany	Linthe	10	Industrial	Own
178	Czech	CTPark Kutná Hora	10	Industrial	Own
179	Germany	Wittenberg	10	Industrial	Own
180	Germany	Wuppertal	10	Industrial	Own
181	Germany	Aalen South	10	Industrial	Own
182	Czech	CTPark Ústí nad Labem	10	Industrial	Own
183	Bulgaria	CTPark Plovdiv North	10	Industrial	Own
184	Germany	Bonn North	9	Industrial	Own
185	Germany	Nurtingen South	9	Industrial	Own
186	Germany	Gera East	9	Industrial	Own
187	Romania	CTPark Caransebes	9	Industrial	Own
188	Bulgaria	CTPark Sofia Ring Road	9	Industrial	Own
189	Czech	CTPark Liberec	8	Industrial	Own
190	Germany	Bochum South	8	Industrial	Own
191	Germany	Berlin East	8	Industrial	Own
192	Germany	Schleiz	8	Industrial	Own
193	Slovakia	Dunaj	8	Office	Own
194	Germany	Gustrow	7	Industrial	Own
195	Germany	Rosenheim	7	Industrial	Own
196	Germany	Meschede	7	Industrial	Own
197	Germany	Eschenbach in der Oberpfalz	7	Industrial	Own
198	Romania	CTPark Arad West	6	Industrial	Own
199	Czech	CTPark Hradec Králové	6	Industrial	Own
200	Czech	CTPark Lysá nad Labem	5	Industrial	Own
201	Germany	Bielefeld East	4	Industrial	Own
202	Germany	Dortmund West	4	Industrial	Own
203	Germany	Bochum West	3	Industrial	Own
204	Czech	CTPark České Velenice	3	Industrial	Own
205	Germany	Ulm East	3	Industrial	Own
206	Germany	Würzburg South	3	Industrial	Own
207	Czech	CTPark Žatec II	3	Industrial	Own
208	Hungary	CTPark Ecser	3	Industrial	Own
209	Germany	Munster	3	Industrial	Own
210	Germany	Erfurt-Nord, Germany	3	Industrial	Own
211	Germany	Syke, Germany	3	Industrial	Own
212	Germany	Schwerin North	3	Industrial	Own
213	Germany	Hattingen	3	Industrial	Own
214	Germany	Müllrose, Germany	3	Industrial	Own
215	Germany	Kulmbach	2	Industrial	Own
216	Germany	Halberstadt	2	Industrial	Own
217	Austria	Deuchendorf, Austria	1	Industrial	Own
218	Germany	Weimar, Germany	1	Industrial	Own
219	Germany	Fehrbellin	0	Industrial	Own
220	Germany	Lauda-Konigshofen	0	Industrial	Own
483	Appendices	Rank	Country	Park	GLA
221	Germany	Schenkendöbern, Germany	-	Industrial	Own
222	Germany	Karith, Germany	-	Industrial	Own
223	Germany	Bernau, Germany	-	Industrial	Own
224	Germany	Untermaßfeld, Germany	-	Industrial	Own
Total	10,867	Owned	10,467	Third Party AUM	400
484	7.8	Glossary	2021 Annual Report	The Company’s annual report that was published over the financial year 2021
Adjusted EBITDA	EBITDA adjusted for items that are not indicative of the Group’s on-going operating performance, such as net valuation result on investment property, other financial expens- es, other financial gains and losses, profit (loss) on disposal of investment properties and the net result from the turn-key development project in Stříbro in the Czech Republic
Administrative and operating costs	Employee benefits and Other expenses
AFM	The Netherlands Authority for the Financial Markets
AMX Index	The stock market index composed of Dutch midcap companies that trade on Euronext Amsterdam
Annual General Meeting or AGM	The meeting in which the shareholders and all other persons with meeting rights annually assemble no later than 30 June of a specific year
Annualised Rental Income	Rent roll as per the end of period, including service-charge income (base rent plus other rental income plus extras for above-standard technical improvement plus services minus rent fees)
Articles	Articles of association of CTP N.V.
Audit Committee	The audit committee of the Company
Average Cost of Debt	The total of bank interest expense, interest expense from financial deriva- tives and interest expense from bonds issued for the reporting period divided by the average total balance of inter- est-bearing loans and borrowings from financial institutions and bonds issued for that same period
Board	The Board of Directors of the Company
Board of Directors or Board	The Company’s board of directors
Board Rules	The rules of procedure governing the internal proceedings of the Board
BREEAM	Building research establishment environmental assessment method
Business	The Company’s business and the busi- ness of its affiliates
BW	Dutch civil code (Burgerlijk Wetboek)
CAGR	Compound annual growth rate
CDD	Customer due diligence
CEE	The Central and Eastern Europe region
CET	Central European Time
Chief Executive Officer or CEO	The chief executive officer of the Company
Chief Financial Officer or CFO	The chief financial officer of the Company
CITA	The Dutch Corporate Income Tax Act 1969 (Wet op de vennootschapsbelast- ing 1969)
Code	The Dutch Corporate Governance Code (as amended from time to time)
Code of Conduct	The code of conduct of the Company
Company	CTP N.V.
Company specific Adjusted Earnings	EPRA Earnings adjusted for the after (deferred) tax effect from the adjustment for rental income for sold portfolio, impairment/depreciation on hotel portfolio and acquisitions, foreign exchange gains/losses related to company restructuring and associ- ated costs with establishment capital market structure
Company specific Adjusted Earnings per Share	Company specific Adjusted Earnings based upon the number of shares as of end of period
Core markets	Czech Republic, Hungary, Romania, Slovakia
Corporations Act	Corporations Act 2001 of the Commonwealth of Australia
COVID-19	Strain of a coronavirus disease SARS-CoV-2
CPI	Consumer Price Index
CSA	S&P Global Corporate Sustainability Assessment
CTP Invest	CTP Invest, spol. s.r.o.

CTP or Company: CTP N.V.

CTP Property Sub-Group: CTP Property B.V. with its consolidated subsidiaries as the holding entities of the income producing property portfolio of the Group.

CTP staff: All CTP employees, including executives and external staff (contractors).

CW: Cushman & Wakefield

DCC: The Dutch Civil Code (Burgerlijk Wetboek)

Decree Disclosure Major Holdings Issuing Institutions: The Decree on disclosure of major holdings and capital interests in issuing institutions (Besluit melding zeggenschap en kapitaalbelang in uitgevende instellingen Wft).

Decree Management Report: The Decree on the content of the management report (Besluit inhoud bestuursverslag).

Decree Takeover Directive: The Decree implementing Section 10 of the Directive on takeover bids (Besluit artikel 10 overnamerichtlijn).

Deed of Amendment: A notarial deed of conversion and amendment of the articles of association of the Company in accordance with an adopted resolution of the General Meeting in matter of conversion of the Company to a public limited liability company (naamloze vennootschap).

DEKA Guarantees: Specific guarantees to Deka Immobilien and Westinvest provided by the Group including (i) a rental guarantee regarding vacant premises, rent shortfall and outstanding tenant incentives, (ii) tenant guarantees regarding defaults, break options and non-solicitation, and (iii) a technical guarantee for the repairs of the buildings.

Portfolio Property List 2022 / Glossary 485

Appendices

Deka Immobilien: DEKA Immobilien Investment GmbH

Delegated Regulation: Commission Delegated Regulation (EU) No. 2019/980

DIP: A discretionary plan which may operate with one or more incentive plans operated by CTP and providing a mechanism for the deferral of part of a participant’s incentive to a deferred award of cash and/or a deferred amount of shares.

DIP Award: A deferred award of cash and/or a deferred award of Shares.

DIR or DIG: Deutsche Industrie REIT AG

Director: An Executive Director or a Non-Executive Director.

Dutch Resident Corporate Entities: Entities or enterprises that are subject to the CITA and are resident or deemed to be resident in the Netherlands.

Dutch Resident Individuals: Individuals who are resident or deemed to be resident in the Netherlands.

Dutch SRD Act: The Dutch act to implement the Shareholder Rights Directive II (bevordering van de langetermijn- betrokkenheid van aandeelhouders).

DWTA: Dutch Dividend Withholding Tax Act.

EBITDA: Profit or loss for the period attributable to parent excluding Income tax expenses, interest income, interest expense and depreciation and amortisation.

EEA: European Economic Area.

EGM: The meeting in which the shareholders and all other persons with meeting rights assemble for a specific agenda item.

EMTN Programme: EUR 8,000,000,000 Euro Medium Term Note Programme established by the Company in September 2020 with the latest supplement from January 2022. Morgan Stanley & Co. International plc acted as arranger, Erste Group Bank AG, J.P. Morgan Securities plc, Morgan Stanley & Co. International plc, Raiffeisen Bank International AG, Société Générale and UniCredit Bank AG as dealers, Citicorp Trustee Company Limited as trustee, Citibank, N.A., London Branch as principal paying agent and transfer agent and Citigroup Global Markets Europe AG as registrar.

EPRA BPR: EPRA best practice reporting.

EPRA Earnings: The profit for the period adjusted for the after (deferred) tax effect from the exclusion of the net valuation result, the change in the fair value of financial instruments and associated close-out costs, result from disposals of investment properties and other interests and foreign currency translation result.

EPRA Earnings per Share: EPRA Earnings based upon the weighted average number of shares as of end of period.

EPRA Net Initial Yield: Annualised rental income based upon the cash passing rent at balance sheet date less non recoverable property operating expenses divided by the market value of income generating investment property.

EPRA NTA or EPRA Net Tangible Assets: Total equity attributable to owners of the Company excluding deferred tax in relation to net valuation result of investment property and investment property under development with intention to hold and not sell in the long run, excluding fair value of financial instruments and excluding of goodwill as a result of deferred tax.

EPRA Topped-up Net Initial Yield: Annualised rental income based upon the cash passing rent at balance sheet date less non-recoverable property operating expenses adjusted notional rent expiration of for rent free periods and other lease incentives divided by the market value of income generating investment property.

ERM: Enterprise Risk Management, an integrated risk-based system of functions, processes and methodologies of identifying and addressing methodically the potential events that represent risks to the achievement of strategic objectives, or to opportunities to gain competitive advantage.

ERP: Enterprise Resource Planning, a business process management software that manages and integrates a company's financials, supply chain, operations, commerce, reporting, manufacturing, and human resource activities.

ERV: Estimated Rental Value.

ESG: Environmental, Social, and Corporate Governance; an evaluation of a firm’s collective conscientiousness for social and environmental factors.

ESMA: European Securities and Market Authority.

EU: European Union.

EU Taxonomy: European Union classification system that allows to classify business activities as sustainable – https://finance. ec.europa.eu/sustainable-finance/ tools-and-standards/eu-taxono- my-sustainable-activities_en

EUR or euro or €: The lawful currency of the European Economic and Monetary Union.

Euroclear Nederland: Nederlands Centraal Instituut voor Giraal Effectenverkeer B.V.

Euronext Amsterdam: Euronext Amsterdam N.V.

Exchange Act: US Securities Exchange Act of 1934, as amended.

Executive Committee: Executive Committee of the Company constituted of The Executive Directors and other certain appointed key officers.

Executive Committee Members: The members of the Executive Committee who are not also Executive Directors.

Executive Director: a director of the Company appointed as executive director.

Expansion or growth markets: Poland, Serbia, Bulgaria.

Financial Statements: Audited consolidated financial statements of the Company for the period from 1 January 2022 to 31 December 2022, which comprise the consolidated statements of financial position as of 31 December 2022 and 2021 and the related consolidated statements of profit and loss and comprehensive income, changes in equity, and cash flows for the period 1 January 2022 to 31 December 2022 and the year ended 31 December 2021, and the related notes to the consolidated financial statements. These financial statements are a reproduction of the statutory financial statements of the Company and have been provided with an audit opinion by the external auditor.

FMSA: Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).

Founder: Mr. Remon Vos.

FTEs: Full time equivalent personnel.

GAV: The gross asset value calculated as the aggregate of investment property, investment property under development and property, plant and equipment as presented in the financial statements in accordance with IFRS.

GDP: Gross domestic product.

General Meeting: The corporate body that consists of shareholders and all other persons with voting rights, or the meeting in which the shareholders and all other persons with meeting rights assemble.

GFC: Global Financial Crisis.

GHG: Greenhouse Gases. Gases which emissions contribute to greenhouse effect. Systemized approach is described by Greenhouse Gas Protocol – https://ghgprotocol.org/

GLA: Gross lettable area.

Green Asset Pool: The selected pool of new and existing assets that promote the transition to low-carbon and climate resilient growth and which meet the criteria in the Green Bond Framework.

Green Bond Framework: The Group’s framework developed according to the Green Bond Principles 2018, administrated by the International Capital Market Association.

GRI: Global Reporting Initiative – framework for transparent disclosure of non-financial data – https://www.globalreporting.org/

Gross Development Value: Has the meaning given to it in “Important Information”.

Gross Rental Income or GRI: Rental income for the relevant period.

Gross Yield: Percentage of annual rental income not reflecting any expenses (i.e. property operating expenses, maintenance costs, stamp duty) divided by market value of investment property.

Group: The Company and all entities included in the group (groep, within the meaning of article 2:24 b DCC) headed by it.

Group Companies: The Company’s subsidiaries within the meaning of article 2:24b DCC.

Group Insider Trading Policy: The insider trading policy of the Group.

I&L: Industrial & Logistics.

IAS: International Accounting Standards.

ICR: The ratio of the Group’s total interest expense to Adjusted EBITDA.

IFRS: The International Financial Reporting Standards as adopted by the European Union.

486

Indebtedness: Interest-bearing loans and borrowings from financial institutions.

ISIN: International securities identification number.

JLL: Jones Lang LaSalle, s.r.o.

KPI: Key performance indicator.

KPMG: KPMG Accountants N.V.

Leasing Activity: Sum of new contracts or amendments for either newly leased or prolonged premises in given period.# Glossary

LEI - Legal Entity Identifier
Like-for-Like Rental Income Growth - The like-for-like gross rental growth compares the growth of the gross rental income of the portfolio that has been consistently in operation (not under development) during the two preceding 12-month periods that are described
LTIP - A long-term incentive plan to incentivize the achievement of long-term sustainable shareholder returns and the delivery of CTP’s long-term strategy
LTIP Awards - Awards of shares granted by Non-Executive Directors or Executive Directors as appropriate
Market Abuse Regulation - Regulation (EU) No 596/2014 on market abuse, as amended
Multivest - Multivest B.V., the parent company of the Group
MWp - Megawatt peak
NET DEBT - Aggregate amount of interest-bearing loans and borrowings from financial institutions plus bonds issued after deduction of cash and cash equivalents
Net LTV - Net loan-to-value ratio, which is the aggregate amount of interest-bearing loans and borrowings from financial institutions plus bonds issued after deduction of cash and cash equivalents as a percentage of GAV
NOI - Net Operating Income
Nomination and Remuneration Committee - The nomination and remuneration committee of the Company
Non-Dutch Resident Corporate Entities - Entities that are not resident and not deemed to be resident in the Netherlands
Non-Dutch Resident Individuals - Individuals who are not resident and not deemed to be resident in the Netherlands
Non-Executive Directors - The Company’s non-executive directors
NRI Margin - Net Rental Income Margin is the rental income plus service charge income minus property operating expenses, divided by the total rental income
Occupancy Rate - Proportion of the aggregate GLA of the properties (whether or not capable of being let) which is subject to tenancies at that point in time. For the avoidance of doubt, the aggregate GLA includes areas designated as structurally vacant or under refurbishment. Any development to create new lettable area at any property shall only be included when the relevant space or development is complete and available to generate income
Operating profit (excl. valuation results) - Profit for the period less Net valuation result on investment property
PV - Photovoltaic
Red Book - The Royal Institute of Chartered Surveyors Valuation – (incorporating the International Valuation Standards) – January 2020
Related Party Transactions Policy - The related-party transactions policy of the Group
Relevant Member State - Each member state of the EEA
Remuneration Policy - A remuneration policy for CTP adopted by the AGM on 25 March 2021 applying to the Executive Directors and the Non-Executive Directors
Rental Collection - Trade receivable more than 15 days overdue as a percentage of the last 12 month’s billings including rent, service charges, extra’s and tenant direct re-charges
Restructuring - The CTP Property Sub-Group transferred to the Company on 31 October 2019 and the CTP Invest Sub-Group transferred to the Company on 27 January 2020 in order to form the Group as it exists as of the date of the Prospectus
Retention Rate - The part of total rental income that expires in one year and is prolonged with existing clients, as part of the total rental income of leases which expire in the same year.
Revolving Credit Facility Agreement - Revolving Credit Facility Agreement dated 18 December 2020 between the Company as borrower and a syndicate of banks including Raiffeisen Bank International AG, Československá obchodní banka, a.s., Erste Group Bank AG, ING Bank N.V., Komerční Banka, a.s., and Unicredit Bank Czech Republic and Slovakia, a.s which provides for an unsecured revolving credit facility in the aggregate amount of EUR 400 million (as at 31 December 2022)
Senior Independent Director - The Non-Executive Director with the title Senior Independent Director, in accordance with the Board Rules
Senior Management - Employees of CTP in a managerial position as referred to in article 2:166 DCC
Shareholder(s) - A holder of shares
Sustainability Committee - The sustainability committee of the Company
TCFD - Task Force on Climate related Financial Disclosures – non-public initiative that developed guidance of disclosure of impact of climate changes on financial performance of companies – https://www.fsb-tcfd.org/
The Netherlands - The part of the Kingdom of the Netherlands located in Europe
TSR - Total Shareholder Return
UNHCR - UN Refugee Agency
US dollars or US$ or USD or $ - The US Dollar, the lawful currency in the US
Valuation Yield - Annualised rental income as a percentage of investment property owned by the Group, excluding the value of the Group’s land bank
WAULT - Weighted average unexpired lease term
Western European or Start-up markets - Austria, Netherlands, Germany
Westinvest - Westinvest Gesellschaft fur Investmentfonds mbH
Yield on Cost - Average contracted rental value divided by development cost including land and excluding financing, marketing, rent free periods and project management costs

Appendices / Disclaimer

7.9 Disclaimer

Forward-looking Statements

To the extent that this annual report contains forward-looking statements, such statements do not represent facts and are characterised by the words “expect”, “believe”, “estimate”, “intend”, “aim”, “assume” or similar expressions. The forward-looking statements contained herein speak only as of the date they are made and CTP does not assume any obligation to update such statements, except as required by law. Forward-looking statements express the intentions, opinions or current expectations and assumptions of CTP and the persons acting in conjunction with CTP, for example with regard to the the Outlook section of the “CEO and CFO letter”, or the Outlook and Priorities for 2022 section in the “2021 in Review.” Such forward-looking statements are based on current plans, estimates and forecasts which CTP and the persons acting in conjunction with CTP have made to the best of their knowledge, but which may not be correct in the future. Forward-looking statements are subject to risks and uncertainties that are difficult to predict and usually cannot be influenced by CTP or the persons acting in conjunction with CTP. Please see in this respect chapter Risk Management. It should be kept in mind that the actual events or consequences may differ materially from those contained in or expressed by such forward-looking statements.

Market Data

Statements regarding market share, market data, industry statistics and industry forecasts, contained in this annual report are based on publicly available sources such as research institutes and analyst coverage in combination with CTP’s own management estimates.

Colophon

CTP Yearbook 2022
Prepared by CTP
Published by CTP
March 2023

Content - CTP
Graphic design - Simon Gray, Jan Svoboda
Three-dimensional artwork - Marek Slovák
Dtp - Monika Vojáčková
Photography - Goran Tačevski, Kryštof Antůšek, Lukáš Pelech, Oldřich Hrb, Tomáš Slavík, Wim Beelen and CTP Archive
Print production - KFG, s.r.o.

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CTP
CTPark Humpolec 1571
396 01 Humpolec
Czech Republic
+420 565 535 565

Czech Republic
CTP Invest spol. s r.o.
Národní 135/14
110 00 Prague 1
Czech Republic
+420 220 511 444

Romania
CTP Invest Bucharest SRL
5A Ion Raiu Street
Bolintin Deal Commune
Giurgiu County
077096 Romania
+40 21 9149

Hungary
CTP Management Hungary Kft
Verebély László utca 2
2051 Biatorbágy
Hungary
+36 30 164 3414

Slovakia
CTP Invest SK, spol. s r.o.
Laurinská 18
811 01 Bratislava
Slovakia
+421 904 174 157

Serbia
CTP Invest doo
Starine Novaka 23
11000 Belgrade
Serbia
+381 66 8772 860

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CTP Regional Offices

Poland
CTP Invest Poland Sp. z o.o.
Rondo ONZ 1
00-124 Warsaw
Poland
+48 600 037 740

Bulgaria
CTP Invest EOOD
247, Botevgradsko shosse Blvd.
Administrative building, loor 7
1517 Soia
Bulgaria
+359 884 65 22 38

Netherlands
CTP Invest BV
Apollolaan 151
1077 AR Amsterdam
The Netherlands
+31 85 27 31 294

Germany
CTP Deutschland B.V.
Lietzenburger Strasse 75
107 19 Berlin
Germany
+49 (0) 331 74 00 76 -529

Austria
CTP Invest Immobilien GmbH
Donaustadtstraße 1/3
1220 Vienna
Austria
+43 664 3483608