CTP Net Rental Income Increases by 20.1% in 2023 – CEE Region Offers Best Cost Location in Europe

Industrial developer CTP recorded a 20.1% gain of net rental income to EUR 543.2 million in 2023 compared to the previous year. Last year, CTP delivered 1.2 million square meters and its portfolio of industrial spaces climbed to 11.8 million square meters. Its gross asset value soared 18.7% to EUR 13.6 billion.

This year, CTP aims to deliver between 1 and 1.5 million square meters, depending on tenant demand.

– As the supply-demand balance remains healthy we are able to drive strong rental growth, with the rental levels of new leases in 2023 up 18% compared to last year. We expect to see further market rent growth in the coming years – said Remon Vos, CTP’s CEO.

He added that demand of industrial and logistics real estate in the CEE region was driven by structural demand drivers, such as professionalization of supply chains and e-commerce.

– Occupiers seek to enhance the resilience of their supply chains through nearshoring and friendshoring, as the CEE region offers the best cost location in Europe. We have now nearly 10% of our portfolio leased to Asian tenants which are producing in Europe for Europe – he added.

In 2023, CTP signed leases for 1.97 million square meters, with contracted annual rental income of EUR 135 million, and an average monthly rent per square meter of EUR 5.69. Around two-thirds of the lease deals were closed with existing tenants.

Among the biggest lease deals were those closed with Raben for 115,000 square meters in Poland, and with Mercator for 67,000 square meters in Serbia.

The company’s average market share in the Czech Republic, Romania, Hungary, and Slovakia stands at 27.4% as of December 31, 2023, and it remains the largest owner and developer of industrial and logistics real estate assets in those markets. The group is also the market leader in Serbia and Bulgaria.

Furthermore, some of the main deliveries closed in 2023 were in CTPark Belgrade City (84,000 m2), CTPark Bucharest West (65,000 m2) and in CTPark Vienna East (51,000 m2).

At the same time, the group’s development pipeline totals 2 million square meters with a potential rental income of EUR 142 million.

On the funding side, the group raised EUR 1.6 billion during 2023. In early 2024, the group’s liquidity position pro-forma for the bond issuance and facilities totaled EUR 1.9 billion.

CTP has proposed a final 2023 dividend payment of EUR 0.275 per ordinary share, which will take the total payment for last year to EUR 0.525.

CTP invest d.o.o.

Mercator-S d.o.o Beograd

CTP

Mercator

Raben

CTPark Belgrade City

CTPark Bucharest West

CTPark Vienna East

Remon Vos

space lease

business space

industrial real estate

nearshoring

friendshoring