In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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CTP NV (XPRA:CTP) reported a 15.9% year-on-year increase in gross rental income, reaching 182.5 million.
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The company achieved a 4.2% like-for-like rental growth in Q1 2025, driven by indexation and strong rent reversion.
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CTP NV (XPRA:CTP) signed 416,000 square meters of leases in Q1 2025, marking a 25% increase compared to the previous year.
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The company maintains a stable occupancy rate of 93% and a high retention rate of 90%, indicating strong tenant satisfaction.
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CTP NV (XPRA:CTP) successfully raised 1.2 billion of debt to improve its liquidity position, including a 1 billion bond issuance and a JPY30 billion samurai loan.
Negative Points
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The company's EPS growth for 2025 is expected to face a slight headwind due to the repricing of its debt stack in 2024.
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Despite strong leasing activity, the vacancy rate remains at 93%, with specific challenges in newer market entries like Poland and Germany.
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The company's average cost of debt stands at 2.9%, with a marginal cost of funding around 4% for 5-year money, indicating potential pressure on future profitability.
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CTP NV (XPRA:CTP) faces geopolitical and economic uncertainties in markets like Romania, which could impact future demand.
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The company's development pipeline is heavily reliant on existing business parks, which may limit diversification and expansion into new markets.
Q & A Highlights
Q: Can you comment on the leasing trends in the second quarter and any changes in occupier intentions in Romania due to political headlines? A: (Unidentified_6) Political volatility is common across Europe and often doesn't impact business significantly. In Romania, we haven't seen changes in tenant behavior despite political headlines. Consumer spending remains strong, driving demand. (Unidentified_7) Q2 leasing is positive and looks better than Q1. Leasing offers flexibility, which is appealing in uncertain times, and we continue to see strong demand in Romania, particularly in Bucharest as a regional logistics hub.
Q: Are the investment opportunities from churn in private equity funds more value-add type assets? A: (Unidentified_6) Yes, similar to our strategy in Germany, we focus on value-add opportunities where we can enhance properties through our in-house teams. This approach aligns with our cost of capital and ability to add value, making it more appealing than stable assets.