CTP N.V.

Overview Key strengths Key risks High-quality standing property portfolio worth about €12 billion as of June 30, 2024 (€14.5 billion including developments and landbank), mainly in key logistics hubs in central and eastern Europe (CEE). More active in property development (about 15% of the total property portfolio, including landbank) than other European logistics players, such as Prologis European Logistics Fund (PELF) and Logicor Financing S.a.r.l. Long record of good operating performance, with an average occupancy rate of 93%-94% and a high rent-collection rate of about 99% as of June 30, 2024. Moderate leverage relative to peers', with our forecast of S&P Global Ratings-adjusted debt to EBITDA of 12-13x (13.6x as of June 30, 2024) and debt to debt plus equity

...CTP N.V.'s operating performance to remain resilient over the next 12-24 months. The company will benefit from the revenue contribution from developments deliveries and continued rental growth. CTP reported like-for-like net rental income growth of 4.8% in the first half of 2024, mainly driven by indexation applied on 69% of its portfolio and positive reversion on lease renewals. Demand for logistics assets in the CEE region is still strong and we expect this to continue with the increasing adoption of e-commerce in European markets and the trend of nearshoring by multinational firms. During the first half of the year, leasing activity remained...

Full Report