CTP N.V.

This report does not constitute a rating action. Overview Key strengths Key risks A focus on the logistic segment, which benefits from strong market fundamentals, with demand outpacing supply in many European countries. Smaller and less diversified portfolio than other European logistics players, such as Logicor or Prologis European Logistics Fund. CTP N.V.'s has a high-quality property portfolio in the key logistics hubs of Central and Eastern Europe (CEE). It has also increased its focus on becoming a pan European logistics player with its recent entry in Netherlands and Germany. Almost 100% exposure to CEE markets, which we view as less resilient than other Western Europe markets, such as France and Germany. Long track record of good operating performance and

...We expect that CTP will continue to post solid rental income growth for the next 12-24 months, mainly supported by high exposure to the logistic segment, which continues to perform well on robust structural fundamentals. Like-for-like rental income increased by 1.6% in the first nine months of 2021 and occupancy improved to 95% from 94% for the same period. Overall net rental income increased by 18% for the first nine months of 2021 (v/s year-to-date third-quarter 2020), mainly supported by assets acquisitions and pre-let project deliveries. We expect like-for-like net rental income growth of 1.5%-2.0% over the next 12-24 months, mainly based on positive lease indexation and occupancy, which we expect to be stable at around 95%. We expect a positive like-for-like increase in the overall portfolio's market valuation, of 4%-5% in 2021, mainly supported by further yield compression (greater than 50 basis points) in the first nine months of 2021, as stated by CTP publicly in October 2021, and...

Full Report