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Investing.com -- S&P Global Ratings has upgraded CTP N.V. to ’BBB’ from ’BBB-’ with a stable outlook, citing the company’s strengthened business positioning and maintained financial discipline.
The logistics property company has nearly tripled its portfolio gross asset value to €17.1 billion as of June 2025 from €5.9 billion in 2020, while expanding its geographical footprint across 10 European markets. CTP has maintained a leading position in Central and Eastern Europe with a market share of approximately 26%-28%.
The company’s portfolio now spans 13.5 million square meters across 260 assets, with properties distributed in the Czech Republic (42%), Romania (15%), Germany (11%), Hungary (8%), Slovakia (8%), Poland (7%), Serbia (4%), the Netherlands (3%), Bulgaria (2%), and Austria (1%).
S&P highlighted CTP’s well-diversified tenant base of multinational corporations and large logistics providers, with no single tenant contributing more than 2.5% of gross rental income. The company maintains a high tenant retention rate of about 85% and a weighted-average unexpired lease duration of 6.2 years.
Despite significant expansion, CTP has demonstrated financial discipline with a loan-to-value ratio of 40%-45%. The company received a €300 million equity injection in September 2024, which S&P noted reaffirmed shareholders’ commitment to balance sheet growth and financial discipline.
In the first half of 2025, CTP reported positive like-for-like rental income growth of about 5%, driven by indexation and positive reversion on lease renewals. The company signed leases for 1,015,000 square meters at increasing monthly rents of €5.98 per square meter compared to €5.59 in the first half of 2024.
S&P expects CTP’s like-for-like rental growth to progressively slow to about 2.5%-3.0% in 2025 and 2.0%-3.0% in 2026, supported by 70% consumer price index-linked leases. Occupancy is projected to remain stable at 93%-94%.
The rating agency forecasts that CTP will maintain its adjusted debt-to-debt-plus-equity ratio at 50%-51% and debt-to-EBITDA at about 11.0x-13.0x over the next 12-24 months. EBITDA interest coverage is expected to gradually recover toward 2.5x-2.6x.
CTP’s liquidity position is considered adequate with cash balances of about €850 million as of June 30, 2025, and a €1,300 million revolving credit facility maturing in 2029. The company has already secured funding to cover its maturities for the next 12 months through the issuance of two €500 million bonds in March 2025.
S&P could lower the rating if CTP fails to keep its debt-to-debt-plus-equity ratio below 55%, if EBITDA interest coverage falls below 2.4x on a sustained basis, or if the debt-to-EBITDA ratio increases sustainably above 13.0x in the next 12-24 months.
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