CPI Europe (CPI) Q2 2024 earnings summary

Executive summary

• Rental income rose 13.0% to €292.5M, asset management results up 15.2%, and results from operations up 88.0% to €221.9M.

• Net profit reached €43.0M, reversing a prior year loss of €144.5M; FFO 1 after tax increased 46.6% to €149.9M.

• Equity ratio at 47.7% and net LTV at 41.6% reflect a robust financial position.

• Portfolio comprises 491 properties valued at €8.2B, with a 92.2% occupancy rate and 3.8 years WAULT.

• Strategic focus on retail growth, office asset sales, and ongoing integration with S IMMO and CPIPG.

Financial highlights

• Rental income increased 13.0% year-over-year to €292.5M; like-for-like rental income (excl. S IMMO) up 5.1% YTD.

• Results of operations surged 88.0% to €221.9M; net profit improved to €43.0M from a €144.5M loss.

• FFO 1 after tax reached €149.9M, up 46.6% year-over-year.

• Revaluation losses of €82.5M reflect challenging market conditions, mainly in office assets in Warsaw, Bucharest, and Prague.

• Financing costs rose due to higher volumes, but positive derivative settlements and interest income supported results.

Outlook and guidance

• Volatile market environment expected to persist in 2024, with recovery anticipated in H2.

• Focus on resilient retail and innovative office properties, with continued portfolio optimization and selective acquisitions.

• Integration of S IMMO and further cooperation with CPI Property Group to drive synergies and efficiency.

• Preparations underway for a squeeze-out of S IMMO minority shareholders, with completion targeted for end-2024.

• ESG targets include a 32.4% GHG intensity reduction by 2030 and exclusive use of renewable electricity by end-2024.