Highlights H1-2021

- On top of enjoying strong tailwinds for the logistics real estate sector, CTP further increased its leading market share by capturing nearly a third of all new leases to hold 25% market share (in terms of GLA) by the end of the first half 2021 in Czech Republic, Romania, Hungary and Slovakia.

- Solid increase in income-producing portfolio to 6.6 million m². Net rental income in the first half year increased by 17% to €160.3 million from €136.5 million in the first half of 2020.

- Net valuation result from development activities increased to €146.0 million. No revaluation took place on CTP’s income-producing portfolio during H1. Company specific adjusted EPRA Earnings increased to €0.25 per share.

- Interim dividend 2021 of €0.17 per share; pay-out ratio of 75%.

- Independent ESG rating by Sustainalytics Inc., ranking CTP in top 1.5% of companies worldwide; carbon neutrality of operations being verified by external agency.

Highlights Q2-2021

- Total land bank increased to 14.7 million m² at the end of Q2 from 13.0 million m² at the end of Q1 2021, thereby extending potential for profitable development pipeline.

- Yield-on-Cost increased to 11.8% compared to 11.5% in the first quarter 2021, on a development pipeline of 1.2 million m², despite increased construction costs and shortages in building materials.

- Value of Owned Assets stands at €6.4 billion at the end of the second quarter 2021, an increase of 5.3% compared to €6.1 billion as of 31 March 2021.

- Finalised €1 billion Green Bond issue (two tranches) to refinance banking facility. Cost of Debt decreased to 1.22% as of 30 June 2021 from 1.6% as of 31 March 2021.

Outlook FY 2021

- IPO proceeds to be further used to accelerate land bank acquisition, fund profitable pipeline development, and acquire income-producing properties at attractive conditions.

- GLA target revised upwards to over 7.7 million m² for year-end 2021 (including 390,000 m2 assets under management for Deka).

- Outlook Company specific adjusted EPRA EPS for full year 2021 expected to be around €0.50 (2020: €0.44).

Remon Vos, CEO: “Our performance over the first half of 2021 shows the quality of our business parks, attracting high-quality tenants that drive our profitable growth. Demand in our markets continues to grow, and our CTParks are well positioned to benefit from the trends of e-commerce, supply chain optimization, last mile delivery and demand for parks designed to minimize environmental impact. Vacancy is at historic lows, and our strong customer relations has led to high retention rates with our annualised rent roll increasing 4% quarter-on-quarter to €380 million. Our execution power is strong: we successfully started as a listed company, significantly accelerated the expansion of our landbank, launched operations in the Netherlands and built up capacity in Austria, Bulgaria and Poland. We strive to expand our market leading position in the CEE countries, while we bring our park makers vision to new markets where we see great potential for further growth.”

Richard Wilkinson, CFO: “We continue to see strong growth in profitability driven by rental growth, while the profitability of new developments continues to exceed the planned target of >10% Y-o-C. We made an excellent profit of € 188.3 million while not having any revaluation of our investment portfolio, which underlines the strength of our business model. Our financial position is very strong, having realised the IPO, finalised the move to the unsecured funding platform and increased our liquidity position. IPO proceeds are sensibly used to accelerate our expansion, with the acquisition of income-producing assets in Romania and Hungary to solidify our market leading positions in these markets. We have grown of our land bank to 14.7 million m² and are on track to exceed the previous target of 7.5 million m² GLA target per year-end, driving rental income growth in the years to come.”

Operational performance

Annualised rental income4 in the second quarter increased to €380 million from €366 million as of 31 March 2021, a quarter-on-quarter increase of 4%. The total leasing activity increased to 613,000 m² in the first half of 2021, up 30% from the first half of 2020. The pre-let rate for properties under construction and delivery in 2021 increased to 73%, compared to 70% on 31 March 2021.

CTP’s Yield-on-Cost for these developments stayed strong at 11.8% (Q1 2021: 11.5%), well above the target of >10%. The occupancy rate increased to 95% from 94% in Q1 2020, with a strong retention rate and WAULT at 6.5 year per 30 June 2021, up from 6.4 year per 31 March 2021. Company specific Adjusted EPRA Earnings increased by 8.7% Y-o-Y to €0.25 per share.

CTP continues to gain market share in Czech Republic, Romania, Hungary and Slovakia, as it captured 30.8% of all take up in the second quarter of 2021.5 By doing so CTP continues to increase its leading market share in GLA terms, now holding approximately 25% of the total market share in these markets. The outlook for the CEE-region remains very positive, as we see the logistics sector enjoying strong tailwinds and European manufacturers continue to shift light-industrial activities to Eastern Europe, benefiting from its low-cost production opportunities.

In the second quarter, CTP has grown to 444 FTE’s from 422 in the last quarter. In September 2021, CTP will open its new offices in Amsterdam, to where it will move its statutory seat, and will continue to expand with new hires for senior positions at group level.

Landbank

CTP has also accelerated the acquisition of new land and extended its total landbank to 14.7 million m² per 30 June 2021 (9.6 million m² owned land bank and 5.1 million square metres under exclusive option), from 13 million m² in the first quarter of 2021 (9.3 million m² owned land bank and 3.7 million square metres under exclusive option). The growth acceleration underscores its ability to secure attractive land transactions across markets. On the basis of a build ratio of 45%, its current landbank offers a development potential beyond 6.6 million m² GLA, or more than doubling our existing GLA. In the second quarter of 2021 CTP announced two successful new landbank acquisitions in Bulgaria and began construction on a 18,600 m² new land plot near Warsaw, Poland. The company is expanding its position as a pan-European park maker, with the construction of a 23,000 m² facility near Rotterdam the Netherlands, the acquisition of 580,000 m² land in the Dutch logistics hub Waalwijk, and landbank acquisitions around Vienna, Austria, totalling 360,000 m²

CTP is a top five industrial property developer and developer in Europe and the largest in CEE, with over 6.6 million m² of logistics space and operations in nine countries. The company is on target to expand its portfolio to 10 million m² by year-end 2023. With its entire portfolio BREEAM certified,

CTP claims the position of the most sustainable developer in the region and is on track to reach carbon neutrality this year. At the end of March 2021 CTP listed on the Euronext Amsterdam stock exchange, issuing 397,017,000 shares priced at €14 per share, which implied a market capitalisation for the company of €5.6 billion at listing.