"Despite the continuing uncertainty in the market, CPI Property Group continues to achieve excellent results, mainly due to the high quality of its assets and teams in individual countries. In addition to the good condition of our markets, the results for the third quarter also show that the ongoing covid-19 pandemic had only a small effect on business results in the period under review," said CPIPG CEO Martin Němeček.
The main data on the Group's operations in the third quarter of 2020 include:The value of the CPIPG real estate portfolio increased by 8% to EUR 9.9 billion compared to the end of 2019, mainly due to the acquisition of six office properties in Warsaw and a stake in Globalworth Real Estate Investments Limited of 29.4%. The growth in the value of the portfolio was partly negatively affected by the revaluation of EUR 293 million for the period since the end of 2019, of which only EUR 41 million fell in the third quarter; Total assets increased by 6% to EUR 11.3 billion compared to the end of 2019 due to an increase in the value of the real estate portfolio, partially offset by a decrease in cash and cash equivalents; Net rental income increased by 15% to EUR 251 million compared to the first three quarters of 2019 due to new acquisitions, stable occupancy at 94% and growth in gross rental income from comparable properties (like-for-like) by 1.9%; The value of consolidated adjusted EBITDA increased by 15% to EUR 257 million compared to the first three quarters of 2019 due to an increase in rental income, a contribution from new acquisitions and cost-saving austerity measures. This result is particularly valuable given the situation of hotels in the period under review; Compared to the first three quarters of 2019, net trading income and funds from operations (FFO) remained stable at EUR 260 million and EUR 260 million, respectively EUR 173 million; The net interest coverage ratio (net ICR) of 5.6× and the net debt-to-value ratio (Net LTV) of 41.0% reflect the increase in net debt related to acquisitions. However, both parameters remain safe within the limits set by the group's financial policy. In addition, CPI Property Group was able to reduce the value of the Net LTV indicator by 1.5 percentage points as of June 30, 2020; During the third quarter of 2020, the company issued ten-year green bonds worth HUF 30 billion (equivalent to EUR 86 million) and hybrid bonds worth EUR 525 million, which could be called in 2026. The proceeds of the issues were partly used to refinance hybrid bonds in EUR 328 million due in 2023 and senior unsecured bonds worth EUR 12 million due in 2022; In June 2020, CPI Property Group increased the loan financing of the Berlin portfolio by EUR 259 million to a total of EUR 750 million. The first tranche of EUR 138 million was drawn as part of this increase during the third quarter and the second, of EUR 121 million, in October 2020, ie after the end of the reference period; In addition to refinancing part of the hybrid bonds maturing in 2023 and senior unsecured bonds maturing in 2022, the Group also repaid Schuldschein debt instruments in the amount of EUR 39.5 million maturing in 2023; At the end of the third quarter of the year, the Group's total available liquidity amounted to more than EUR 1.1 billion. In November 2020, the Group further strengthened its liquidity by signing a new revolving loan of EUR 700 million valid until 2026, in which a group of ten international banks is participating. The new agreement replaces a revolving loan of EUR 510 million, which expires in 2022. The Group's available liquidity now exceeds EUR 1.3 billion.
"CPI Property Group can be justifiably proud of its results so far in 2020, and we are also optimistic at the end of the year. We have no doubt that in the future the group's portfolio and its capital structure are in a very good position," said CPIPG CFO David Greenbaum.
About CPI Property Group
CPI Property Group is a leading long-term owner of for-profit real estate in the Czech Republic, Berlin and the region of Central and Eastern Europe. The group's headquarters are located in Luxembourg and its shares are listed on the Frankfurt Stock Exchange.
The CPI Property Group (“CPIPG” or the “Group”) owns and operates an extensive, diversified and high-quality real estate portfolio valued at € 9.8 billion as of June 30, 2020.
The Group's portfolio is highly diversified. The Group's largest segment consists of offices (42%, mainly in Prague, Berlin, Warsaw and Budapest), followed by retail facilities (22%, mainly dominant regional shopping centers and retail parks mainly in the Czech Republic, Poland and Hungary). CPIPG also owns hotels and resorts (7%), residential real estate (7%), land bank (7%), construction real estate (2%) and industry