CPI PROPERTY GROUP publishes financial results for Q3 2022
November 30, 2022 at 02:25 pm EST
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EQS-News: CPI PROPERTY GROUP
/ Key word(s): Quarter Results
CPI PROPERTY GROUP publishes financial results for Q3 2022
30.11.2022 / 20:23 CET/CEST
The issuer is solely responsible for the content of this announcement.
CPI Property Group
(société anonyme)
40, rue de la Vallée
L-2661 Luxembourg
R.C.S. Luxembourg: B 102 254
Press Release - Corporate News
Luxembourg, 30 November 2022
CPI PROPERTY GROUP publishes financial results for Q3 2022
CPI PROPERTY GROUP (hereinafter “CPIPG”, the “Company” or together with its subsidiaries the “Group”), a leading owner of income-generating European real estate, hereby publishes unaudited financial results for the nine-month period ended 30 September 2022.
“CPIPG’s results reflect much of the positive impact from our acquisitions in 2022,” said Martin Nemecek, CEO. “The combined Group’s power to generate income is truly amazing, which reflects the quality of our assets, markets, tenants, and local teams.”
Highlights for the third quarter of 2022 include:
CPIPG’s property portfolio was €21.2 billion (vs. €13.1 billion at year-end 2021) as the Group consolidated the property portfolios of IMMOFINANZ and S IMMO, partially offset by disposals of more than €700 million during the first three quarters of 2022. Total assets reached €23.7 billion.
Income statement figures (gross and net rental income, hotel income, etc.) include seven months contribution from IMMOFINANZ and three months contribution from S IMMO due to the dates of consolidation.
Gross rental income was €529 million (+79% vs. Q3 2021), net rental income was €441 million (+67%) and consolidated adjusted EBITDA was €437 million (+61%) driven by acquisitions, stable occupancy at 93.3% and a strong 7.9% like-for-like growth in gross rental income.
The Group believes we have the potential to achieve €1 billion in revenues in 2022. As of H1 2022, total contracted rent was €865 million.
Hotels reported a net income of €34 million (similar to the same period in 2019) because of a strong recovery in demand and improvement in operational performance.
Net business income rose to €479 million (+70% vs. Q3 2021) while FFO was €280 million (+34%).
EPRA NRV (NAV) grew by 22% to €8.6 billion.
Total liquidity was €2 billion, including €915 million of undrawn revolving credit facilities.
Net Loan-to-Value (LTV) increased to 48.6%, reflecting cash spent on acquisitions in Q3. The Group’s current top priority is to reduce LTV via disposals and other possible measures.
Net ICR stood at 3.4x.
Unencumbered assets decreased to 54%, reflecting the high proportion of secured debt at IMMOFINANZ and S IMMO.
“The Group is highly focused on preserving liquidity, reducing leverage and making disposals, but we realise the process could take 12 to 24 months depending on the market,” said David Greenbaum, CFO. “The good news is that CPIPG continues to obtain attractive bank financing and execute significant sales despite a tough market backdrop.”
Notable Events Occurring during and after Q3
In September, the United States Court of Appeals for the Second Circuit affirmed in total the judgement of the United States District Court for the Southern District of New York, dismissing the lawsuit filed in April 2019 against CPIPG, Radovan Vitek (the “CPIPG Defendants”), and other parties. The lawsuit concerned a group of Kingstown companies, Investhold LTD and Verali Limited (together, the “Kingstown Plaintiffs”) who filed a claim against the CPIPG Defendants and other parties alleging violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”) in the United States. The Court of Appeals considered the Kingstown Plaintiffs’ arguments and found them without merit.
In November, CPIPG refinanced and upsized a portion of our €750 million secured bank loan in Berlin, which matures in 2024. The new loan was signed for €515 million, with an additional €200 million of proceeds received, and matures in 2029. The loan was concluded with the existing lender (BerlinHyp) at terms similar to the original loan in 2017.
Secured bank loans remains available across CPIPG’s core markets at pricing which is hundreds of basis points tighter than the unsecured bond markets. Because of CPIPG’s proactive approach to refinancing in past years, we are confident that debt maturities in 2023 and 2024 can be managed via cash flow, bank financing, and disposals.
On 21 November, CPIPG announced the results of the additional acceptance period for the S IMMO tender offer, wherein we achieved a final direct and indirect stake equal to 88.37% of the share capital of S IMMO. Together with the acquisition of IMMOFINANZ (of which CPIPG owns 76.87%), the Group achieved our strategic objective of creating one of Europe’s largest landlords, owning the best real estate platforms in Central and Eastern Europe.
The purchase of S IMMO shares was funded via CPIPG’s bridge financings, which have final maturity dates in H1 2025. The current bridge balance is approximately €1.65 billion. CPIPG expects to repay the bridge primarily via disposals, along with bank financing. In total, CPIPG spent €3.4 billion to purchase our stakes in IMMOFINANZ and S IMMO, of which €2.7 billion was funded with bridge drawings. About €925 million of the bridges have already been repaid via capital markets transactions, secured loans and disposals.
In November, CPIPG conducted our annual distribution via share buybacks, but reduced the payout ratio from 65% to 55% of FFO 1.
Since H1 results were announced at the end of August, CPIPG made further significant progress on the disposal pipeline, closing sales with gross proceeds exceeding €300 million. Net proceeds from the €300 million of sales (after repayment of associated secured debt) were approximately €190 million.
The Group’s disposal pipeline still exceeds €2 billion, excluding the recent successful closed disposals. Currently, more than half of our disposal pipeline has received letters of intent from one or more buyers outlining the transaction parameters. A meaningful portion of these transactions are in advanced stages of due diligence and documentation, and the Group hopes to announce additional significant disposals before year-end and during Q1 2023.
FINANCIAL HIGHLIGHTS*
Performance
Q1-Q3 2022
Q1-Q3 2021
Change
Gross rental income
€ million
520
291
79.0%
Net rental income
€ million
441
265
66.5%
Net hotel income
€ million
34
10
252.8%
Total revenues
€ million
885
474
86.7%
Net business income
€ million
479
282
69.6%
Consolidated adjusted EBITDA
€ million
437
272
60.6%
Funds from operations (FFO)
€ million
280
208
34.4%
Net profit for the period
€ million
977
801
22.0 %
Assets
30-Sep 2022
31-Dec 2021
Change
Total assets
€ million
23,723
14,369
65.1%
Property portfolio
€ million
21,172
13,119
61.4%
Gross leasable area
sqm
6,759,000
3,667,000
84.3%
Occupancy
%
93.3
93.8
(0.5 p.p.)
Like-for-like gross rental growth*
%
7.9
3.3
4.6 p.p.
Total number of properties**
No.
888
367
142.0%
Total number of residential units
No.
17,233
11,755
46.6%
Total number of hotel rooms***
No.
7,992
7,025
13.8%
* Based on gross rent, excluding one-time discounts, CPIPG standalone
** Excluding residential properties in the Czech Republic
*** Including hotels operated, but not owned by the Group
Financing structure
30-Sep 2022
31-Dec 2021
Change
Total equity
€ million
9,949
7,695
29.3%
EPRA NRV (NAV)
€ million
8,554
7,039
21.5%
Net debt
€ million
10,282
4,682
119.6%
Net Loan-to-value ratio (Net LTV)
%
48.6
35.7
12.9 p.p.
Net debt/EBITDA
x
17.6x
12.7x
4.9x
Secured consolidated leverage ratio
%
18.1
9.8
8.3 p.p.
Secured debt to total debt
%
37.6
27.0
10.6 p.p.
Unencumbered assets to total assets
%
54.4
70.4
(16.0 p.p.)
Unencumbered assets to unsecured debt
%
182
267
(85 p.p.)
Net ICR
x
3.4x
4.6x
(1.2x)
* Income statement figures (GRI, NRI, net hotel income, net business income etc.) include seven months contribution from IMMOFINANZ and three months contribution from S IMMO due to the dates of consolidation.
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT*
Nine-month period ended
(€ million)
30 September 2022
30 September 2021
Gross rental income
520.1
290.6
Service charge and other income
208.6
93.7
Cost of service and other charges
(185.9)
(74.4)
Property operating expenses
(101.4)
(44.8)
Net rental income
441.4
265.1
Development sales
0.4
12.1
Development operating expenses
(0.5)
(9.3)
Net development income
(0.1)
2.8
Hotel revenue
116.1
47.8
Hotel operating expenses
(82.1)
(38.2)
Net hotel income
Revenues from other business operations
34.0
9.6
Other business revenue
39.8
29.9
Other business operating expenses
(36.4)
(25.1)
Net other business income
3.4
4.8
Total revenues
885.0
474.1
Total direct business operating expenses
(406.3)
(191.8)
Net business income
478.7
282.3
Net valuation gain
298.0
790.7
Net gain on disposal of investment property and subsidiaries
39.5
1.2
Amortization, depreciation and impairment
(59.5)
(22.4)
Administrative expenses
(91.5)
(40.1)
Other operating income
292.3
4.7
Other operating expenses
(5.0)
(3.7)
Operating result
952.5
1,012.7
Interest income
9.5
16.4
Interest expense
(136.6)
(69.0)
Other net financial result
225.6
1.1
Net finance income/ (costs)
98.5
(51.5)
Share of gain of equity-accounted investees (net of tax)
33.1
3.9
Profit before income tax
1,084.1
965.1
Income tax expense
(107.3)
(164.2)
Net profit from continuing operations
976.8
800.9
* The presented financial statements do not represent a full set of interim financial statements as if prepared in accordance with IAS 34
Gross rental income
Gross rental income increased by €229.5 million (79.0%) to €520.1 million in Q1-Q3 2022 primarily due to rental income generated by IMMOFINANZ (€163.7 million) and S IMMO (€38.4 million), the contribution of other acquisitions, and strong like-for-like growth.
Property operating expenses
In Q1-Q3 2022, property operating expenses increased by €56.6 million to €101.4 million primarily due to the acquisitions of IMMOFINANZ and S IMMO.
Net hotel income
In Q1-Q3 2022, hotel revenues increased by €24.4 million to €34.0 million due to the recovery in travel demand and the lifting of COVID-19 restrictions after Q1 2022.
Net gain on disposal of investment property and subsidiaries
Net gain on the disposal of investment property and subsidiaries of €39.5 million resulted from sales of certain Czech subsidiaries and other investment property.
Amortization, depreciation and impairment
Amortization, depreciation and impairment increased by €37.1 million to €59.5 million in Q1-Q3 2022 due to impairment of receivables of €20.6 million, which are largely driven by the full write-off of purchase price receivables (€12.9 million) from Russia by IMMMOFINANZ. Impairments of property, plant and equipment (€6.0 million) which were negative in H1 2021 (release of impairment of €10.8 million).
Administrative expenses
In Q1-Q3 2022, administrative expenses increased by €51.4 million to €91.5 million primarily relating to IMMOFINANZ and S IMMO acquisitions (€37.3 million and €2.8 million, respectively) including associated one-off costs.
Other operating income
In Q1-Q3 2022, other operating income represented primarily bargain purchases resulting from the acquisitions of IMMOFINANZ and S IMMO for a total of €285.9 million.
Interest expense
Interest expense increased by €67.6 million to €136.6 million in Q1-Q3 2022 due to the acquisitions of IMMOFINANZ and S IMMO (€43.7 million and €6.9 million, respectively) and an increase in the volume of bonds issued (€17.0 million).
Other net financial result
In Q1-Q3 2022, other net financial result of €225.6 million reflects predominantly the changes in the fair values of financial derivatives (gain of €181.6 million) and foreign exchange gains.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION*
(€ million)
30 September 2022
31 December 2021
NON-CURRENT ASSETS
Intangible assets and goodwill
115.7
114.0
Investment property
18,765.2
10,275.8
Property, plant and equipment
1,163.9
854.6
Deferred tax assets
174.7
164.1
Equity accounted investees
722.4
1,216.1
Other non-current assets
573.0
338.0
Total non-current assets
21,514.9
12,962.6
CURRENT ASSETS
Inventories
27.0
11.8
Trade receivables
156.0
105.7
Cash and cash equivalents
1,080.6
501.8
Assets linked to assets held for sale
551.1
588.5
Other current assets
393.6
198.6
Total current assets
2,208.3
1,406.4
TOTAL ASSETS
23,723.2
14,369.0
EQUITY
Equity attributable to owners of the Company
6,992.5
5,991.8
Perpetual notes
1,636.2
1,611.6
Non-controlling interests
1,320.3
91.2
Total equity
9,949.0
7,694.6
NON-CURRENT LIABILITIES
Bonds issued
4,876.4
3,693.7
Financial debts
5,736.3
1,164.4
Deferred tax liabilities
1,749.8
1,082.4
Other non-current liabilities
192.2
96.2
Total non-current liabilities
12,554.7
6,036.7
CURRENT LIABILITIES
Bonds issued
285.2
41.1
Financial debts
356.2
233.5
Trade payables
143.1
116.2
Other current liabilities
435.0
246.9
Total current liabilities
1,219.5
637.7
TOTAL EQUITY AND LIABILITIES
23,723.2
14,369.0
* The presented financial statements do not represent a full set of interim financial statements as if prepared in accordance with IAS 34
Total assets
Total assets increased by €9.4 billion (65%) to €23.7 billion as at 30 September 2022 compared to 31 December 2021. The increase was driven by the acquisitions of IMMOFINANZ and S IMMO (investment property increased by €8.0 billion and cash and cash equivalents by €780 million), partly offset by a decrease in assets held for sale due to disposals in the period.
Total liabilities
Total liabilities increased by €7.1 billion (106%) to €13.8 billion as at 30 September 2022 compared to
31 December 2021, primarily due to the acquisitions of IMMOFINANZ and S IMMO. The Group also drew two new bridge facilities with €1.5 billion outstanding at 30 September 2022.
Equity and EPRA NRV
Total equity increased from €7.7 billion as at 31 December 2021 to €9.9 billion as at 30 September 2022
(by €2.2 million). The movements of equity components were as follows:
Increase due to the profit for the period of €976.8 million (profit to the owners of €850.8 million);
Increase of non-controlling interests (NCI) by €1.8 billion through the acquisitions of IMMOFINANZ and S IMMO;
Decrease in translation reserve of €38.4 million; and
Increase in revaluation, hedging and legal reserve of €60.4 million.
EPRA NRV was €8.6 million as at 30 September 2022, representing an increase of 21.5% compared to 31 December 2021. The increase of EPRA NRV was driven by the above changes in the Group’s equity attributable to the owners (increase of retained earnings, other reserves and decrease of translation reserve) and changes in deferred tax (primarily due to the acquisitions of IMMOFINANZ and S IMMO and revaluations).
30 September 2022
31 December 2021
Equity attributable to the owners (NAV)
6,993
5,992
Diluted NAV
6,993
5,992
Revaluation of trading property and PPE
-
-
Fair value of financial instruments
(134)
Deferred tax on revaluations
1,738
1,090
Goodwill as a result of deferred tax
(43)
(43)
EPRA NRV (€ million)
8,554
7,039
GLOSSARY
Alternative Performance Measures (APM)
Definition
Rationale
Consolidated adjusted EBITDA
Net business income as reported deducting administrative expenses as reported.
This is an important economic indicator showing a business’s operating efficiency comparable to other companies, as it is unrelated to the Group’s depreciation and amortisation policy and capital structure or tax treatment. It is one of the fundamental indicators used by companies to set their key financial and strategic objectives.
Consolidated adjusted total assets
Consolidated adjusted total assets is total assets as reported deducting intangible assets and goodwill as reported.
EPRA Net Reinstatement Value (NRV)
EPRA NRV assumes that entities never sell assets and aims to represent the value required to rebuild the entity.
Makes adjustments to IFRS NAV to provide stakeholders with
the most relevant information on the fair value of the assets and
liabilities within a true real estate investment company with a
long-term investment strategy.
Funds from operations or FFO
It is calculated as net profit for the period adjusted by non-cash revenues/expenses (like deferred tax, net valuation gain/loss, impairment, amortisation/depreciation, goodwill etc.) and non-recurring (both cash and non-cash) items. Calculation also excludes accounting adjustments for unconsolidated partnerships and joint ventures.
Funds from operations provide an indication of core recurring earnings.
Net debt/EBITDA
It is calculated as Net debt divided by Consolidated adjusted EBITDA.
A measure of a company’s ability to pay its debt. This ratio measures the amount of income generated and available to pay down debt before covering interest, taxes, depreciation and amortisation expenses.
Net ICR
It is calculated as Consolidated adjusted EBITDA divided by a sum of interest income as reported and interest expense as reported.
This measure is an important indicator of a firm´s ability to pay interest and other fixed charges from its operating performance, measured by EBITDA.
Net Loan-to-Value or Net LTV
It is calculated as Net debt divided by fair value of Property Portfolio.
Loan-to-value provides a general assessment of financing risk undertaken.
Secured consolidated leverage ratio
Secured consolidated leverage ratio is a ratio of a sum of secured financial debts and secured bonds to Consolidated adjusted total assets.
This measure is an important indicator of a firm´s financial flexibility and liquidity. Lower levels of secured debt typically also means lower levels of mortgage debt - properties that are free and clear of mortgages are sources of alternative liquidity via the issuance of property-specific mortgage debt, or even sales.
Secured debt to total debt
It is calculated as a sum of secured bonds and secured financial debts as reported divided by a sum of bonds issued and financial debts as reported.
This measure is an important indicator of a firm´s financial flexibility and liquidity. Lower levels of secured debt typically also means lower levels of mortgage debt - properties that are free and clear of mortgages are sources of alternative liquidity via the issuance of property-specific mortgage debt, or even sales.
Unencumbered assets to total assets
It is calculated as total assets as reported less a sum of encumbered assets as reported divided by total assets as reported.
This measure is an important indicator of a commercial real estate firm´s liquidity and flexibility. Properties that are free and clear of mortgages are sources of alternative liquidity via the issuance of property-specific mortgage debt, or even sales. The larger the ratio of unencumbered assets to total assets, the more flexibility a company generally has in repaying its unsecured debt at maturity, and the more likely that a higher recovery can be realized in the event of default.
Unencumbered assets to unsecured debt
It is calculated as unencumbered assets as reported divided by a sum of unsecured bonds and unsecured financial debts as reported.
This measure is an additional indicator of a commercial real estate firm’s liquidity and financial flexibility.
Non-financial definitions
Definition
Company
CPI Property Group S.A.
Property Portfolio value or PP value
The sum of value of Property Portfolio owned by the Group
Gross Leasable Area or GLA
Gross leasable area is the amount of floor space available to be rented. Gross leasable area is the area for which tenants pay rent, and thus the area that produces income for the property owner.
Group
CPI Property Group S.A. together with its subsidiaries
Net debt
Net debt is borrowings plus bank overdraft less cash and cash equivalents.
Occupancy
Occupancy is a ratio of estimated rental value regarding occupied GLA and total estimated rental value, unless stated otherwise.
Property Portfolio
Property Portfolio covers all properties and investees held by the Group, independent of the balance sheet classification, from which the Group incurs rental or other operating income.
APM RECONCILIATION*
EPRA NRV reconciliation (€ million)
30-Sep 22
31-Dec 21
Equity attributable to owners of the company
6,993
5,992
Effect of exercise of options, convertibles and other equity interests
0
0
Diluted NAV, after the exercise of options, convertibles and other equity interests
6,993
5,992
Revaluation of trading property and property, plant and equipment
0
0
Fair value of financial instruments
(134)
0
Deferred tax on revaluation
1,738
1,090
Goodwill as a result of deferred tax
(43)
(43)
EPRA NRV
8,554
7,039
Net LTV reconciliation (€ million)
30-Sep 22
31-Dec 21
Financial debts
6,093
1,398
Bonds issued
5,162
3,735
Net debt linked to assets held for sale
108
51
Cash and cash equivalents
(1,081)
(502)
Net debt
10,282
4,682
Total property portfolio
21,172
13,119
Net LTV
48.6%
35.7%
Net ICR reconciliation (€ million)
Q1-Q3 2022
FY 2021
Interest income
9
18
Interest expense
(137)
(97)
Consolidated adjusted EBITDA
437
368
Net Interest coverage ratio
3.4x
4.6x
Secured debt to total debt reconciliation (€ million)
30-Sep 22
31-Dec 21
Secured bonds
0
0
Secured financial debts
4,278
1,398
Total debts
11,367
5,187
Secured debt to total debt
37.6%
27.0%
* Totals might not sum exactly due to rounding differences.
Unencumbered assets to total assets reconciliation (€ million)
Funds from operations (FFO) reconciliation (€ million)*
Q1-Q3 2022
Q1-Q3 2021
Net profit/(loss) for the period
977
801
Deferred income tax
(77)
(155)
Net valuation gain or loss on investment property
298
791
Net valuation gain or loss on revaluation of derivatives
182
2
Net gain or loss on disposal of investment property and subsidiaries
40
1
Net gain or loss on disposal of PPE/other assets
(1)
0
Amortization, depreciation and impairments
(60)
(22)
Other non-cash items
76
11
GW/Bargain purchase
286
0
Other non-recurring items
(47)
(21)
Share on profit of equity accounted investees/JV adjustments
33
4
Other effects
32
17
Funds from operations
280
208
Secured consolidated leverage ratio reconciliation (€ million)
30-Sep 22
31-Dec 21
Secured bonds
0
0
Secured financial debts
4,278
1,398
Consolidated adjusted total assets
23,607
14,255
Secured consolidated leverage ratio
18.1%
9.8%
Unencumbered assets to unsecured debtreconciliation (€ million)
30-Sep 22
31-Dec 21
Total assets
23,723
14,369
Bonds collateral
0
0
Bank loans collateral
10,811
4,255
Total debts
11,367
5,187
Secured bonds
0
0
Secured financial debts
4,278
1,398
Unencumbered assets to unsecured debt
182%
267%
* Includes pro-rata EBITDA/FFO for Q1-Q3 2022 and Q1-Q3 2021 of Equity accounted investees.
Property portfolio reconciliation (€ million)
30-Sep 22
31-Dec 21
Investment property – Office
9,149
5,165
Investment property - Retail
4,737
2,351
Investment property - Residential
2,159
1,134
Investment property - Land bank
1,983
1,396
Investment property - Development
433
77
Investment property - Hotels rented
140
--
Investment property - Agriculture
112
109
Investment property - Other
29
22
Investment property - Industry & Logistics
24
22
Property, plant and equipment - Hospitality
1,032
757
Property, plant and equipment - Mountain resorts
40
51
Property, plant and equipment - Office
29
12
Property, plant and equipment - Residential
14
6
Property, plant and equipment - Agriculture
14
13
Property, plant and equipment - Retail
10
2
Property, plant and equipment - Other
7
1
Property, plant and equipment - Land bank
2
1
Property, plant and equipment - Hotels rented
1
--
Equity accounted investees
722
1,216
Other financial assets
--
199
Inventories – Other
9
--
Inventories – Land bank
6
2
Inventories - Development
2
2
Assets held for sale
516
581
Total
21,172
13,119
Net debt/EBITDA reconciliation (€ million)
30-Sep 22
31-Dec 21
Net debt
10,282
4,682
Net business income*
638
385
Administrative expenses*
(122)
(58)
Other effects*
67
41
Net debt/EBITDA
17.6x
12.7x
*Annualised.
For further information please contact:
Investor Relations
David Greenbaum
Chief Financial Officer d.greenbaum@cpipg.com
Moritz Mayer
Manager, Capital Markets m.mayer@cpipg.com
For more on CPI Property Group, visit our website: www.cpipg.com
30.11.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.
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Language:
English
Company:
CPI PROPERTY GROUP
40, rue de la Vallée
L-2661 Luxembourg
Luxemburg
Phone:
+352 264 767 1
Fax:
+352 264 767 67
E-mail:
contact@cpipg.com
Internet:
www.cpipg.com
ISIN:
LU0251710041
WKN:
A0JL4D
Listed:
Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart
CPI Property Group SA, formerly GSG Group SA, is a Luxembourg-based company active in real estate sector with operations in Germany, the Czech Republic, Hungary, Poland, Russia, Croatia, Switzerland and Slovakia. The Company is principally engaged in leasing out investment properties and developing properties for its own portfolio. It has two segments: Property Investments, its core segment, and Development. The core segment comprises investment in commercial properties through acquisition, rental of properties and property portfolios, especially in long-term ownership of the properties. The Development segment focuses on commercial projects and the conversion of some Kreuzberg commercial assets into residential units to be sold; this includes property acquisition, planning and obtaining building rights, project implementation and sale/rental of the realized projects to investors and tenants. The Company operates Remontees Mecaniques Crans Montana Aminona SA as a subsidiary.