CTP N.V.

Overview Key strengths Key risks High-quality standing property portfolio worth about €10.9 billion as of June 30, 2023 (€12.1 billion including developments), mainly located in key logistics hubs in Central and Eastern Europe (CEE). More active in property development (about 15% of the total property portfolio) than other European logistics players, such as Prologis European Logistics Fund (PELF) and Logicor Financing S.a.r.l. (Logicor). Long track record of good operating performance, with an average occupancy rate of about 93%-94% and a high rent-collection rate of about 99% as of June 30, 2023. Possible negative impact on the long-term growth trend from macroeconomic uncertainties and rising interest rates, which may pressurise portfolio valuations over the next six to 12 months. We expect

...S&P Global Ratings expects CTP N.V. (CTP)'s operating performance to remain resilient over the next 12-24 months, on the back of the revenue contribution from developments deliveries and positive indexation. The company reported like-for-like net rental income growth of 7.5% in first-half 2023, mainly driven by indexation applied on 58% of its portfolio and rent reviews. Demand for logistics assets in the CEE region is still very strong and we expect this to continue with the continued growth of e-commerce in European markets (see chart) and the trend toward nearshoring by multinational firms. However, our expectations for like-for-like growth and occupancy levels remain conservative, since market uncertainties and economic headwinds are still a concern over the next 12-24 months. We expect occupancy to remain at about 93%- 94%, since the leasing phase of Amsterdam city will close by year-end 2024, and conservatively assume like-for-like rental growth of about 3.5%-4.5% in 2023, and 2.0%-2.5%...

Full Report