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Introduction & Market Context
CTP NV, a leading owner, developer, and manager of industrial and logistics real estate across Central and Eastern Europe, released its Q1 2025 financial results on May 8, 2025. The Amsterdam-listed company ( AMS (VIE:AMS2):CTPNV) reported strong growth in rental income and adjusted earnings, supported by its expanding portfolio and robust development pipeline. The stock closed at €16.22, down 0.86% on the day of the announcement, reflecting a slightly cautious market reaction despite the positive results.
The logistics real estate sector continues to benefit from structural tailwinds including e-commerce growth, supply chain reconfiguration, and nearshoring trends, particularly in Central and Eastern Europe where CTP has its strongest presence.
Quarterly Performance Highlights
CTP delivered impressive financial results for Q1 2025, with gross rental income reaching €183 million, representing a 15.9% increase compared to Q1 2024. Net rental income grew even faster at 16.8% year-over-year to €179.4 million. The company’s adjusted EPRA earnings rose 12.9% to €98.7 million, while adjusted EPRA earnings per share increased 6.9% to €0.21.
As shown in the following comprehensive overview of key financial and operational metrics:
The company’s property portfolio continued to expand, with investment property value increasing 1.3% to €14.8 billion since December 31, 2024. The EPRA Net Tangible Asset (NTA) value per share grew 2.8% to €18.58 over the same period, reflecting CTP’s continued value creation through development activities.
CTP has maintained strong operational metrics, with portfolio occupancy stable at 93% and the weighted average unexpired lease term (WAULT) slightly improved to 6.5 years. Like-for-like rental growth accelerated to 4.2% in Q1 2025, up from 4.0% for the full year 2024, demonstrating the company’s pricing power in a tight market.
The company’s growth trajectory since its IPO in March 2021 has been remarkable, as illustrated in this chart showing expansion across multiple metrics:
Since going public, CTP has more than doubled its gross leasable area (GLA) from 5.9 million sqm to 13.4 million sqm, representing a 128% increase. Investment property value has grown even more dramatically, up 179% from €5.8 billion to €16.1 billion, while annualized rental income has increased 148% from €302 million to €748 million.
Development and Leasing Activity
CTP’s development pipeline remains robust, with 1.9 million sqm under construction as of March 31, 2025, up from 1.8 million sqm at the end of 2024. The company delivered 95,000 sqm of new space in Q1 2025, which was 100% leased at delivery, generating €5.9 million in contracted rental income at an attractive yield on cost of 10.0%.
The company’s business model focuses on developing properties in existing parks or new parks with significant growth potential, as shown in this illustration:
Leasing activity accelerated in Q1 2025, with 416,000 sqm of new leases signed, representing a 24% increase compared to the same period last year. Average monthly rents on new leases increased to €6.17 per sqm, up 3% year-over-year when adjusted for country mix.
CTP’s tenant base remains well-diversified across sectors, with a strong representation from manufacturing companies that are benefiting from nearshoring trends. The following chart illustrates the tenant mix in CTP’s portfolio:
Manufacturing and automotive tenants together account for 46% of CTP’s portfolio, with third-party logistics (3PL) providers representing 28%. The company noted that over 10% of its portfolio is leased to Asian clients producing in Europe for European markets, a trend that is expected to accelerate due to increasing tariffs and competitive labor costs in Central and Eastern Europe.
Financial Position and Capital Strategy
CTP maintains a strong financial position with €3.1 billion in liquidity as of March 31, 2025, up significantly from €2.2 billion at the end of 2024. The company’s loan-to-value (LTV) ratio remained stable at 45.3%, at the upper end of its 40-45% target range.
The following slide highlights CTP’s robust liquidity position and key debt metrics:
The company successfully raised €1.2 billion in new financing during Q1 2025, including a €1 billion dual-tranche green bond (with 6-year and 10-year maturities) and a JPY 30 billion (€185 million equivalent) Samurai loan facility with a consortium of 13 Asian banks. These transactions demonstrate CTP’s strong access to diverse capital markets and support its ambitious growth plans.
CTP’s debt profile remains conservative, with an average cost of debt of 2.9%, 99.9% of debt being hedged or fixed, and an average debt maturity of 5.1 years. The company has a well-balanced debt maturity profile with no significant maturities in the near term.
The company’s gross asset value has shown consistent growth over the years, reaching €16.3 billion as of March 31, 2025:
Forward-Looking Statements
CTP maintained its development target for 2025 at 1.2-1.7 million sqm of new deliveries. The company also provided earnings guidance for 2025, targeting company-specific adjusted EPRA earnings per share of €0.86-€0.88, with a dividend policy of 70-80% payout.
Looking further ahead, CTP outlined ambitious growth targets as shown in this long-term projection:
The company aims to reach €1 billion in rental income by 2027 and expand to 20 million sqm of GLA with €1.2 billion in rental income by the end of the decade. This growth will be driven by CTP’s substantial landbank of 26.4 million sqm, which provides capacity to more than double its current portfolio.
Management noted that leasing dynamics remain strong, with robust occupier demand and decreasing new supply supporting ongoing rental growth. The company’s development pipeline, with its industry-leading yield on cost of 10.3%, is expected to drive double-digit NTA growth in the coming years.
With its focused strategy, strong balance sheet, and substantial development pipeline, CTP appears well-positioned to capitalize on the continued demand for modern logistics facilities across Central and Eastern Europe, particularly as nearshoring trends accelerate manufacturing investment in the region.
Full presentation:
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