• CTP Group remains the market leader in its sector in Central Europe, and top 5 in Europe
• During the first six months of the year, CTP Group added nearly 270 000 sqm of lettable area to its portfolio, and plans to grow by additional 595,000 sqm by year-end
• The pandemic has transformed the nature of demand, but rental incomes increased in the second quarter
In the first half of this year, CTP Group recorded a profit of EUR 99 million with gross rental income reaching EUR 152 million during the period .
Despite the coronavirus pandemic, in the second quarter of this year CTP Group recorded an increase in rental income, which reached EUR 72 million, a 16% year-on-year increase. CTP Group was also able to sign new long-term leases for 345 thousand sqm signed in 1H 2020.
CTP Group founder, owner, and CEO Remon Vos said: “For the last three years, our focus has been on expanding our portfolio at sites in proximity to the most important cities in the region. This strategy has been vindicated by the performance during the pandemic. Doing so has enabled us to respond immediately to the increased demands of logistics and e-commerce companies. What is more, the trend of nearshoring in some sectors, evident even before the onset of the pandemic, was merely accelerated by it.”
Richard Wilkinson, CTP Group CFO, added: “The rental income of the group is increasing despite the coro-navirus pandemic, and the occupancy rate remains at 94% as we continue to grow. In addition, our space is leased on a long-term basis. I consider these very positive indicators of the performance of our group, which plays an integral role in the Czech economy.“
The area of CTP Group‘s leased premises increased by over 268,000 sqm in the first half of the year. The CTP Group’s portfolio under management in Central and Eastern Europe currently amounts to 5.8 million sqm of lettable space. Demand for such premises was strong in the first six months of 2020, especially in Romania, where the Group expects to grow by further 389,000 sqm by the end of the year, primarily through new construction. The Group now has 46 projects under construction across the Central and Eastern European region. Therefore, by the end of 2020, it expects its property AUM portfolio to reach 6.5 million sqm. CTP Group plans to continue expanding mostly in the industrial real estate, in the Central and Eastern European region.
Rental income has remained high, and more than 97% of rent was collected in Q2. Occupancy levels of individual halls also remained high, at 94%, with very strong demand from existing clients – especially in the fast-moving goods and e-commerce sectors.
CTP Group has over 80% of its portfolio BREEAM certified and targets operational carbon neutrality by 2023. In September 2019, CTP Group announced its goal to certify its entire portfolio of industrial buildings according to the BREEAM standard, and in January began the certification process in six countries with local appraisers.