CPI PROPERTY GROUP – Publication of Profit and Credit Estimates

CPI PROPERTY GROUP (hereinafter “CPIPG”, the “Company” or together with its subsidiaries the “Group”), the largest real estate group in the CEE region, hereby publishes an unaudited profit estimate for the financial year ended 31 December 2017. While the publication of the Company’s fully audited annual financial report is expected to occur on 29 March 2018, the Company decided to proceed with this disclosure in order to keep our investors and stakeholders informed of our positive progress during the year.

“In 2017, CPIPG began a new chapter as an internationally investment grade rated company and continued executing our long-term strategy focused on our core markets of Czechia, Berlin and the CEE region.” said Martin Nemecek, CEO and member of the board. “CPIPG has built a large, diversified and actively managed portfolio, with total assets of nearly EUR 7.5billion and an operating result approaching EUR 1billion for 2017. We continue to see positive trends in our core segments for 2018.”

The Company estimates the following preliminary results for the financial year ended 31 December 2017:

  • Total assets of nearly EUR 7.5billion (an increase of over 30% versus 2016) driven by acquisitions, valuation uplifts in our strong underlying markets and our successful long-term asset management strategy.

  • Property portfolio of nearly EUR 6.7billion, versus 4.9billion in 2016.

  • Operating result of about EUR 990million and net business income of about EUR 270million, an increase of 14% versus 2016.

  • Net profit for the period amounted to EUR 660million, versus 460 million in 2016.

  • Gross debt of approximately EUR 3.3billion, and net debt of approximately EUR 3billion. Gross LTV was about 45%, relative to 48% at the end of 2016.

  • EPRA NAV close to EUR 3.9billion versus 2.7billion in 2016.

  • Total secured debt was EUR 1.9billion at the end of 2017, a decrease of 7% relative to 2016. Our ratio of unencumbered assets to total assets increased from about 22% to about 42%. These developments reflect the impact of our successful unsecured bond transactions in 2017, which were primarily used to refinance secured and priority debt and also for acquisitions.

  • Net interest coverage ratio (ICR) was 2.6, relative to 2.4 at the end of 2016.

“I congratulate the Company on a successful year” commented Edward Hughes, chairman of the board of CPI PROPERTY GROUP. “In addition to investing in good assets, and establishing a strong capital structure, the Company has also developed a superb team which can continue to execute our strategy.”

CPI PROPERTY GROUP intends to continually update investors and stakeholders on our progress.

CPI PROPERTY GROUP further publishes its 2018 financial calendar:
Publication of 2017 annual results – 29 March 2018
Annual general meeting – 31 May 2018
Publication of 2018 first quarter results – 31 May 2018
Publication of 2018 half year results – 31 August 2018Publication of 2018 third quarter results – 30 November 2018
Publication of 2018 annual results – 29 March 2019

DISCLAIMER: All data contained in this presentation are unaudited best estimates, solely for information purposes. CPI PROPERTY GROUP makes no representation or warranty as to the accuracy, fairness or integrity of this information and shall, in this respect, have no liability. The final audited 2017 annual results will be in the Company’s full audited annual financial report is expected to occur on 29 March 2018.

This notice may not be published, distributed or transmitted, directly or indirectly, in the United States (including its territories and possessions) or any other jurisdiction where such an announcement would be unlawful. The distribution of this announcement may be restricted by law in certain jurisdictions and persons into whose possession this document or other information referred to herein should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This publication does not constitute an offer of securities for sale or a solicitation of an offer to purchase the above mentioned securities in the United States or any other jurisdiction.

The securities of CPI PROPERTY GROUP have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act.

For further information, please contact:
CPI Property Group
David Greenbaum
Chief Financial Officer

Kirchhoff Consult AG
Andrew Stammler
1 20459 Hamburg
T +49 40 60 91 86 18
F +49 40 60 91 86 60
E andrew.stammler@kirchhoff.d