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CPI Property {CPIPGR: Ba1 neg /BB+ neg): Conf Call Highlights

REAL ESTATE
  • European real estate sentiment is improving and financing conditions are better
  • Governance & Transparency: Apollo is now a 3rd party with a board seat
  • White & Case independent investigation was comprehensive and showed no wrongdoing. All recommendations for improvement will be implemented.
  • Corporate Structure: will be simplified by sale of S-IMMO to Immofinanz.
  • Liquidity: EUR 1.7b at end 1H24. EUR 370m at CPIPGR, EUR 450m at Immofinanz, EUR 350m at S-IMMO
  • Next 2 years sees EUR 2bn debt maturing, half is secured loans. Mainly in 2026, next 18mth is light.
  • Liquidity covers 2.6x debt maturities due next 18 months.
  • Disposals: EUR980m ytd reduced gross debt by 800m.
  • Disposals: 300m-400m in coming months. 2bn is planned overall in current programme.
  • Sold EUR250m of stake in Poland to Sona Asset.
  • Wants to be BBB again.
  • Portfolio valuation EUR18.6b with gross contracted rent EUR939m. Valuation stabilising with -0.8% decline in H1.
  • LTV 50% in H1 down from 52% in Q1
  • Occupancy 91.3% group-wide
  • 46% is offices, Retail next, then hotels
  • Moody’s has reclassified Hybrids as 100% debt. Company hopes portfolio valuation stability will keep Moody’s on-side given that Moody’s had been factoring mid-single digit declines.
  • Hybrids: exploring options but focus is on Senior debt for now.

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