CTP N.V.

Overview Key strengths Key risks A high-quality standing property portfolio worth about €9.8 billion as of Sept. 30, 2022, mainly located in key logistics hubs in Central and Eastern Europe (CEE). More active in property development (about 10% of the total property portfolio) and a less diverse portfolio than other European logistics players, such as Prologis European Logistics Fund (PELF) and Logicor Financing S.a.r.l. (Logicor). A long track record of good operating performance, with an average occupancy rate of about 95% and a high rent-collection rate of about 98% as of Sept. 30, 2022. A possible negative impact on the long-term growth trend from macroeconomic uncertainties and rising interest rates, which will likely pressurize portfolio valuations and demand over the

...We expect CTP N.V.'s (CTP's) operating performance to be supported by index-linked rental contracts and rent reviews, but its EBITDA margins to remain under pressure due to the weaker operating performance of Deutsche Industrie REIT-AG's (DIR's) assets. Like-for-like growth in gross rental income (GRI) remained strong, at 4.3% in the first nine months of 2022, mainly thanks to indexation and positive re-leasing spreads (the change in rent per square foot between new and expiring leases). Average occupancy also remained stable, at around 95%, with a tenant retention rate of 91% in the same period. Overall, we remain cautious in our expectations for like-for-like rental growth and occupancy levels because of the uncertain macroeconomic conditions, which represent a major threat to operational growth for real estate landlords, including CTP. Therefore, we expect like-for-like GRI growth of 2.5%-3.0% in 2023 and 1.5%-2.0% in 2024, mainly based on positive lease indexation (45% of the portfolio...

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