CPI Europe (CPI) Q3 2024 earnings summary

Executive summary

• Rental income increased 11.9% year-over-year to €435.6M, driven by retail acquisitions and higher like-for-like rents.

• FFO 1 after tax rose 24.8% to €230.9M, reflecting stronger asset management and standardised calculation.

• Net profit reached €50.9M, reversing a prior-year loss of €105.9M, mainly due to improved valuation results.

• Strategic property sales totaled €641M, including major transactions in Austria, Germany, Croatia, Poland, and Romania.

• S IMMO acquisition increased group exposure, reduced non-controlling interests, and integration is ongoing.

Financial highlights

• EBIT improved to €244.7M, driven by strong operations and less negative revaluations.

• Financial result was -€153.9M, impacted by non-cash derivative valuation effects and volatile markets.

• Equity ratio at 42.2%, net LTV at 48.7%, and liquidity of €613.9M provide a robust financial base.

• Earnings per share at €0.18, up from -€0.48 year-over-year.

• Cash from disposals and a €500M CPIPG loan supported the S IMMO share acquisition.

Outlook and guidance

• Volatile market conditions expected to persist in Q4 2024; potential positive impact from ECB rate cuts.

• Anticipated market recovery in H2 2024; continued focus on resilient retail and innovative office properties.

• S IMMO squeeze-out of minority shareholders expected to complete in December 2024, consolidating group structure.

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

• Focus remains on optimizing the property portfolio, strategic sales, and selective acquisitions.