EQS-News
CPI PROPERTY GROUP publishes half-year financial results for 2023
- CPI Property Group publishes half-year financial results for 2023
- Total assets were €23.1 billion, EPRA NRV grew to €8.1 billion
- Net rental income increased to €399 million, net business income rose to €437 million
- Net Loan-to-Value (LTV) decreased to 49.9%, net debt reduced by over €500 million
EQS-News: CPI PROPERTY GROUP / Key word(s): Half Year Results
CPI Property Group |
- Total assets were €23.1 billion, and EPRA NRV (NAV) grew to €8.1 billion.
- CPIPG’s property portfolio was €20.3 billion (versus €20.9 billion at year-end 2022).
- The Group completed €657 million of disposals during H1 2023. In total, more than €900 million of disposals have been executed since CPIPG’s €2 billion disposal plan was announced in August 2022.
- Contracted gross rent was €907 million.
- Net rental income increased to €399 million and net business income rose to €437 million.
- Hotels reported net income of €29 million, reflecting the recovery of travel across Europe.
- Consolidated adjusted EBITDA was €394 million, while FFO1 was €209 million.
- Rental income grew 8.3% on a like-for-like basis. A high proportion of the Group’s rents are indexed, and CPIPG has faced no difficulty to date passing inflation on to our tenants.
- Net Loan-to-Value (LTV) decreased to 49.9%, down 1 p.p. from year-end 2022. CPIPG remains confident in our target LTV range of 45-49% by year-end 2023.
- Net Debt was reduced by more than €500 million.
- The Group signed multiple secured bank loans and continued to raise senior unsecured debt, contributing to a total of more than €850 million in fresh external financing year to date.
- Total available liquidity was €2 billion as of 30 June.
- In April, the Group repurchased €335 million of bonds due in 2026, 2027, and 2028. CPIPG expects to continue utilising our liquidity resources to repurchase bonds and optimise financing costs over time.
- Unencumbered assets decreased to 51%, reflecting the completion of new secured loans during H1 2023.
- Net ICR was 2.6x, reflecting the relatively higher cost of the Group’s temporary bridge financing arrangements.
Update on Bridge Financing
In connection with the acquisitions of IMMOFINANZ and S IMMO in 2022, CPIPG borrowed €2.7 billion through bridge loans from our relationship banks. As of 31 August 2023, about €1.7 billion of the bridge loans have been repaid through disposals, fresh external financing, and existing liquidity resources, for a current balance of about €1 billion.
CPIPG expects to make additional bridge repayments during September and October, further reducing the balance.
On 30 August 2023, CPIPG signed a new €635 million 3-year bridge loan provided by Santander, Société Générale, Komerční banka, Raiffeisen, SMBC, Barclays, and Erste Bank. The new bridge loan, which includes an accordion feature of up to €1 billion to accommodate potential additional lending interest from our relationship bank group, is expected to be drawn by the end of October and will replace the existing bridge arrangements.
Half-year results webcast
CPIPG will host a webcast in relation to its financial results for the six-month period ended 30 June 2023. The webcast will be held on Thursday, 7 September 2023, at 11:00 am CET / 10:00 am UK.
Please register for the webcast in advance via the link below:
https://edge.media-server.com/mmc/p/wjzps3y3
FINANCIAL HIGHLIGHTS
Performance | H1 2023 | H1 2022 | Change | |||||
Total revenues | € million | 831 | 511 | 62.7% | ||||
Gross rental income (GRI) | € million | 457 | 306 | 49.7% | ||||
Net rental income (NRI) | € million | 399 | 263 | 51.4% | ||||
Net hotel income | € million | 29 | 8 | 289.5% | ||||
Net business income (NBI) | € million | 437 | 276 | 58.2% | ||||
Consolidated adjusted EBITDA | € million | 394 | 261 | 50.8% | ||||
Funds from operations (FFO) | € million | 209 | 171 | 22.5% | ||||
Net profit for the period | € million | (50) | 751 | (106.7%) | ||||
Assets | 30-Jun-2023 | 31-Dec-2022 | Change | |||||
Total assets | € million | 23,066 | 23,521 | (1.9%) | ||||
Property portfolio | € million | 20,256 | 20,855 | (2.9%) | ||||
Gross leasable area | sqm | 6,530,000 | 6,784,000 | (3.7%) | ||||
Share of green certified buildings* | % | 33.2 | 32.1 | 1.1 p.p. | ||||
Occupancy | % | 92.3 | 92.8 | (0.5 p.p.) | ||||
Like-for-like gross rental growth** | % | 8.3 | 7.6 | 0.7 p.p. | ||||
Total number of properties*** | No. | 748 | 855 | (12.5%) | ||||
Total number of residential units | No. | 14,101 | 16,767 | (15.9%) | ||||
Total number of hotel rooms**** | No. | 8,061 | 7,810 | 3.2% | ||||
* According to GLA ** Based on gross rent, CPIPG standalone *** Excluding residential properties in the Czech Republic, Germany and Austria **** Including hotels operated, but not owned by the Group |
||||||||
Financing structure | 30-Jun-2023 | 31-Dec-2022 | Change | |||||
Total equity | € million | 9,308 | 9,263 | 0.5% | ||||
EPRA NRV (NAV) | € million | 8,051 | 8,005 | 0.6% | ||||
Net debt | € million | 10,117 | 10,625 | (4.8%) | ||||
Net Loan-to-value ratio (Net LTV) | % | 49.9 | 50.9 | (1.0 p.p.) | ||||
Net debt/EBITDA | x | 12.9x | 17.5x | (4.6x) | ||||
Secured consolidated leverage ratio | % | 21.2 | 19.5 | 1.7 p.p. | ||||
Secured debt to total debt | % | 43.0 | 38.9 | 4.1 p.p. | ||||
Unencumbered assets to total assets | % | 50.9 | 54.4 | (3.5 p.p.) | ||||
Unencumbered assets to unsecured debt | % | 183% | 179% | 4.0 p.p. | ||||
Net ICR | x | 2.6× | 3.2x | (0.6×) | ||||
CONSOLIDATED INCOME STATEMENT
Six-month period ended | ||
(€ million) | 30 June 2023 | 30 June 2022 |
Gross rental income | 457.5 | 305.7 |
Service charge and other income | 219.0 | 122.1 |
Cost of service and other charges | (200.2) | (107.7) |
Property operating expenses | (77.7) | (56.8) |
Net rental income |
398.6 | 263.3 |
Development sales | - | 0.4 |
Development operating expenses | - | (0.4) |
Net development income | - | - |
Hotel revenue | 103.5 | 49.0 |
Hotel operating expenses | (74.0) | (41.4) |
Net hotel income Revenues from other business operations |
29.5 | 7.6 |
Other business revenue | 50.7 | 33.4 |
Other business operating expenses | (42.0) | (28.2) |
Net other business income | 8.7 | 5.2 |
Total revenues | 830.7 | 510.6 |
Total direct business operating expenses | (393.9) | (234.5) |
Net business income | 436.8 | 276.1 |
Net valuation gain/ (loss) | (217.2) | 287.2 |
Net gain on disposal of investment property and subsidiaries | (1.2) | 32.3 |
Amortization, depreciation and impairment | (34.9) | (45.5) |
Administrative expenses | (64.5) | (55.1) |
Other operating income | 7.9 | 290.9 |
Other operating expenses | (15.2) | (5.5) |
Operating result | 111.7 | 780.4 |
Interest income | 15.4 | 6.6 |
Interest expense | (165.5) | (81.3) |
Other net financial result | 28.3 | 76.1 |
Net finance costs | (121.8) | 1.4 |
Share of gain of equity-accounted investees (net of tax) | (5.4) | 33.7 |
Profit before income tax | (15.5) | 815.5 |
Income tax expense | (34.6) | (64.7) |
Net profit from continuing operations | (50.1) | 750.8 |
Net rental income
Net rental income increased by €135.3 million (51%) to €398.6 million in H1 2023 primarily due to the acquisitions of IMMOFINANZ and S IMMO and strong like-for-like rental growth.
Net hotel income
Net hotel income increased from €7.6 million in H1 2022 to €29.5 million in H1 2023 as travel demand improved significantly across Europe and due to the acquisition of S IMMO.
Net valuation loss
Net valuation loss of €217.2 million in H1 2023 primarily relates to IMMOFINANZ (€119 million) and S IMMO (€80 million), mainly lower-yielding office and residential portfolios in Germany and offices in Austria.
Other operating income
Other operating income decreased in H1 2023 as there was a one-off bargain purchase from the acquisition of IMMOFINANZ and S IMMO of €285.9 million recognised in H1 2022.
Interest expense
Interest expense increased by €84.2 million in H1 2023 compared to H1 2022 primarily due to the acquisition of IMMOFINANZ (€9.2 million) and S IMMO (€18.2 million), the overall increase of cost of new financing and the relatively higher cost of the Group’s temporary bridge financing.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(€ million) | 30 June 2023 | 31 December 2022 |
NON-CURRENT ASSETS | ||
Intangible assets and goodwill | 129.1 | 126.7 |
Investment property | 18,201.0 | 18,486.2 |
Property, plant and equipment | 1,105.4 | 1,100.0 |
Deferred tax assets | 160.4 | 176.8 |
Equity accounted investees | 729.5 | 732.3 |
Other non-current assets | 714.2 | 668.5 |
Total non-current assets | 21,039.6 | 21,290.5 |
CURRENT ASSETS | ||
Inventories | 40.5 | 23.5 |
Trade receivables | 197.1 | 197.8 |
Cash and cash equivalents | 1,167.4 | 1,033.2 |
Assets linked to assets held for sale | 192.7 | 596.5 |
Other current assets | 429,1 | 379.7 |
Total current assets | 2,026.8 | 2,230.7 |
TOTAL ASSETS | 23,066.4 | 23,521.2 |
EQUITY | ||
Equity attributable to owners of the Company | 6,611.2 | 6,579.8 |
Perpetual notes | 1,619.2 | 1,584.4 |
Non-controlling interests | 1,077.1 | 1,098.8 |
Total equity | 9,307.5 | 9,263.0 |
NON-CURRENT LIABILITIES | ||
Bonds issued | 4,262.4 | 4,680.4 |
Financial debts | 6,573.5 | 6,165.6 |
Deferred tax liabilities | 1,700.0 | 1,727.9 |
Other non-current liabilities | 222.6 | 208.2 |
Total non-current liabilities | 12,758.5 | 12,782.1 |
CURRENT LIABILITIES | ||
Bonds issued | 277.9 | 405.8 |
Financial debts | 170.6 | 360.4 |
Trade payables | 167.5 | 232.2 |
Other current liabilities | 384.4 | 477.7 |
Total current liabilities | 1,000.4 | 1,476.1 |
TOTAL EQUITY AND LIABILITIES | 23,066.4 | 23,521.2 |
Total assets
Total assets decreased by €454.8 million (1.9%) to €23,066.4 million as of 30 June. The decrease was driven primarily by revaluation of investment property of negative €217.2 million and property disposals of €657 million, offset by value-enhancing CapEx investments of €155 million.
Total liabilities
Total liabilities decreased by €548.3 million (3.8%) to €13,709.9 million as at 30 June 2023 compared to
31 December 2022, largely due to the repurchase of bonds issued by CPIPG of €345.2 million and the repayment of IMMOFINANZ bonds of €197.5 million. Further, there was a decrease of liabilities due
to disposals of €121.4 million. On the other hand, financial debts increased by €218.1 million due to new loans.
EQUITY AND EPRA NRV
Total equity increased by €44.6 million to €9,307.5 million as at 30 June 2023. The movements of equity components were primarily as follows:
- Decrease due to the loss for the period of €50.1 million (loss to the owners of €69.2 million);
- Decrease in revaluation and hedging reserve in total of €8.5 million;
- Increase in translation reserve of €109.2 million;
EPRA NRV was €8,051 million as at 30 June 2023, representing increase of 0.6% compared to 31 December 2022. The increase of EPRA NRV was driven by the above changes in the Group’s equity attributable to the owners (translation reserve).
30 June 2023 | 31 December 2022 | |
Equity attributable to the owners (NAV) | 6,611 | 6,580 |
Effect of exercise of options, convertibles and other equity interests | - | - |
Diluted NAV | 6,611 | 6,580 |
Fair value of financial instruments | (211) | (243) |
Deferred tax on revaluations | 1,694 | 1,711 |
Goodwill as a result of deferred tax | (43) | (43) |
EPRA NRV (€ million) | 8,051 | 8,005 |
For disclosures regarding Alternative Performance Measures used in this press release please refer to our Half-year Management Report 2023, chapters Glossary of terms, Key ratio reconciliations
and EPRA performance; accessible at http://cpipg.com/reports-presentations-en.
Unaudited documents will be available tonight at the following link:
http://www.cpipg.com/reports-presentations-en
Half-year 2023 unaudited financial statements
Half-year 2023 unaudited management report
For further information please contact:
Investor Relations
David Greenbaum
Chief Financial Officer
d.greenbaum@cpipg.com
Moritz Mayer
Manager, Capital Markets
m.mayer@cpipg.com
For more on CPI Property Group, visit our website: www.cpipg.com
Follow us on Twitter (CPIPG_SA) and LinkedIn
31.08.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
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Language: | English |
Company: | CPI PROPERTY GROUP |
40, rue de la Vallée | |
L-2661 Luxembourg | |
Luxemburg | |
Phone: | +352 264 767 1 |
Fax: | +352 264 767 67 |
E-mail: | contact@cpipg.com |
Internet: | www.cpipg.com |
ISIN: | LU0251710041 |
WKN: | A0JL4D |
Listed: | Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart |
EQS News ID: | 1716547 |
End of News | EQS News Service |
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1716547 31.08.2023 CET/CEST