CBRE Pan European Core Fund

Overview Key strengths Key risks Diversified and high quality €7.0 billion property portfolio as of Sept. 30, 2024, constituting mainly logistics premises (33.7% of the portfolio's assets under management [AUM]), offices (22.3%), retail (15.6%), residential assets (21.8%) and others (6.6%) located across 12 countries. Continuing, although moderating, macroeconomic headwinds. High-quality portfolio in the main European city centers for the company's retail, office, and residential assets (which account for close to 60% of the portfolio's AUM as of Sept. 30, 2024). Some exposure to the office sector where the supply/demand balance is still challenged by the work-from-home trend, although this is mitigated by CBRE's prime office locations. Moderate S&P Global Ratings-adjusted debt-to-debt-plus-equity ratio expected at 23%-24% in 2024-2025; strong debt-servicing capacity

...CBRE Open-Ended Funds S.C.A SICAF-SIF Pan European Core Fund (CBRE PEC Fund) should maintain sufficient ratings headroom in terms of S&P Global Ratings-adjusted debt to debt plus equity, supported by stabilizing property valuations. In the previous three quarters ending Sept. 30, 2024, valuations gradually moved into positive territory for the first time after two years of negative revaluations, which resulted in a reduction of asset value by around 1.1 billion. In the quarter ending Sept. 30, 2024, portfolio value was up by 1% quarter-on-quarter (0.8% excluding foreign exchange [FX] effects) on a like-for-like basis, largely supported by stabilizing yields. The value of CBRE's office assets increased 1.9% quarter-on-quarter (1.5% excluding FX effects), and its retail assets appreciated by 1.0% (0.6% excluding FX). Geographically, valuations moved upward in all countries excluding the U.K., where the disposal price of a single asset (Atlantic House) led to a 3.2% value depreciation (excluding...

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