DGAP-News

CPI PROPERTY GROUP - Update on the Second Wave of COVID-19 - Seite 2

In contrast to the lockdown in early 2020, the borders of the Czech Republic remain open and business travel (and related hotel stays) are permitted. The Group continues to carefully manage hotel operating expenses and is pleased that the Czech government will cover 100% of salaries for hotel employees who are not working during the emergency period.

The vast majority of CPIPG's office, residential and other properties are unaffected by recent COVID-19 developments. In total, 85% of CPIPG's portfolio across the Czech Republic, Berlin, Warsaw, and other locations is open and operating normally.
"Recent leasing activity across our platforms is encouraging as tenants look to the future," said Tomas Salajka, Director of Acquisitions, Asset Management & Sales. "The quality of CPIPG's assets and the strength of our local teams remain distinct advantages relative to our competition."

Rent Collection Rates
The initial outbreak of COVID-19 had a mild effect on CPIPG's rent collections during the first nine months of 2020. The Group collected 94% of H1 rent and 89% of Q2 rent before the effect of any discounts provided mostly to retail tenants. Notably, Q2 rent collections improved by nearly 3% since data was last reported by the Group on 31 August. Q3 collections were strong at 95% before discounts, reflecting the strength of CPIPG's tenant base.

Total discounts agreed by CPIPG during H1 2020 amounted to €7.8 million, or 4.4% of the Group's H1 gross rental income.

The table below summarizes the Group's collection rates for Q2, H1 and Q3 2020. CPIPG will provide regular updates on collections in the coming months.

	Q2 2020		H1 2020		Q3 2020
	before discounts	after discounts	before discounts	after discounts	before discounts	after discounts
Group	89%	96%	94%	98%	95%	97%
Office	97%	97%	99%	99%	98%	98%
Retail	76%	94%	87%	97%	90%	95%
Residential	99%	99%	99%	99%	98%	98%