CTPrecorded Rental Income of €488.4 million in the first 9 months of the year, up 15.9 percent y-o-y. Like-for-like y-o-y rental growth of 4.4 percent, mainly driven by indexation and reversion on renegotiations and expiring leases. As of 30 September 2024, the annualised rental income came to €702.0 million and occupancy came to 93 percent.
In the first 9 months, CTP delivered 545,000 sqm at a Yield on Cost (“YoC”) of 10.1 percent and 95 percent let at completion, bringing the Group’s standing portfolio to 12.6 million sqm of GLA, while the Gross Asset Value (“GAV”) increased by 11.8% to €15.2 billion. EPRA NTA per share increased by 10.1 percent in the first half of the year to €17.52.
Company-specific adjusted EPRA earnings increased by 13.2 percent y-o-y to €269.8 million. CTP’s company-specific adjusted EPRA EPS amounted to €0.60, an increase of 11.7 percent. The Group confirms its €0.80 – €0.82 Company-specific adjusted EPRA EPS guidance for 2024.
As of 30 September 2024, projects under construction totalled 1.9 million sqm, with a potential rental income of €142 million when fully leased and an expected YoC of 10.4 percent. A substantial part of this will be delivered in 2024, as CTP expects to deliver between 1.2 – 1.3 million sqm this year.
The Group’s landbank increased to 27.1 million sqm, of which 20.9 million sqm is owned and on-balance sheet, and secured substantial future growth potential for CTP. With its industry-leading YoC, CTP expects to be able to continue to generate double-digit NTA growth in the years to come.
Remon Vos, CEO, comments: “We leased 1.5 million sqm in the first 9 months of 2024, 4 percent more than in the same period last year. This illustrated the continued strong demand in CEE and the robust nature of the business-smart region in Europe. As the supply-demand balance remains healthy, we realised robust rental growth in the year’s first half. Looking ahead, we also signed more HoTs than last year, and have with that a strong lead-list for leasing into the fourth quarter of 2024 and 2025. Those leasing levels allow us to continue to develop over 10 percent of new GLA per year and continue to win market share.
The annualised rental income amounted to €702 million, illustrating our standing portfolio’s strong cash flow generation with a rent collection rate of 99.8 percent. While the next growth phase is already locked in with our 1.9 million sqm of GLA under construction and a landbank of over 27 million sqm, we will continue to generate double-digit NTA growth. In addition to the pre-letting for the current pipeline, we had another 177,000 sqm of leases signed for future projects, which we plan to start shortly.
Demand for industrial and logistics real estate in the CEE region is driven by structural demand drivers, such as the professionalization of supply chains by 3PLs, e-commerce, and occupiers nearshoring and friend-shoring, as the CEE region offers the best-cost location in Europe. We have now over 10 percent of our portfolio leased to Asian tenants which are producing in Europe for Europe, making up around 20 percent of our overall leasing activity in 2024.”
