Update CTP Germany

Regulatory News:

CTP, Europe’s largest listed developer, owner, and manager of industrial and logistics properties by gross lettable area (GLA), has entered the next phase of growth in Germany, following the acquisition of Deutsche Industrie REIT-AG (“DIR”) nearly two years ago, for which the acquisition accounting will be amended. The impact of this amendment, which is described below, leads to an improvement of the Group’s overall indebtedness.

After building up the organization during 2022 and 2023, CTP has been able to achieve strong operational and financial results in 2023 across its German portfolio.

In 2023, CTP relet 155,000 sqm within the former DIR portfolio, with an average monthly rent of €5.1 per sqm, 57% above the average monthly rent that was in place at the FY-2022. The FY-2023 average monthly rent of €3.5 per sqm continues to offer a very significant reversion opportunity, with nearly 50% of the portfolio’s leases due to expire over the next 3-years.

The Groups ability to increase rents on a consistent basis has been also recognized by the independent appraisers, who increased the ERV of the former DIR portfolio by 12% in 2023, while there was no material yield widening.

CTP’s total German rent roll has increased from €59.7 million at the time of underwriting the DIR acquisition to €69.7 million at year-end 2023.

CTP’s German team now has 53 employees, with all activities ranging from procurement, construction, leasing, property management to accounting now being in-house, in-line with CTP’s business model. This also resulted in a reduction of property operating expenses across the German portfolio, improving the NRI to GRI margin from 71.6% in 2022 to 83.7% in 2023, with further improvement expected in 2024.

CTP Germany’s strong platform and financial position means it is set to enter its next phase of growth. It plans to develop new parks using CTP’s tried and tested formula for developing business parks with vibrant business eco-systems.

In the spring of 2023 CTP announced a €300 million multi-year investment plan to grow its CTPark network in Germany. During 2023, CTP acquired in total 781,000 sqm of land with an opportunity to develop around 370,000 sqm of GLA over the coming years. CTP has already started work on refurbishing and extending CTPark Weiden where Heineken is a tenant, which will increase the park’s GLA to 60,000 sqm. CTP has also begun the construction of 32,400 sqm GLA of new space at CTPark Bremen.