DGAP-News: CPI PROPERTY GROUP / Key word(s): Preliminary Results 
CPI PROPERTY GROUP - Profit and Credit Estimates for 2020 
2021-02-15 / 19:43 
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, 15 February 2021 
CPI PROPERTY GROUP - Profit and Credit Estimates for 2020 
CPI PROPERTY GROUP ("CPIPG," the "Company" or together with its subsidiaries the "Group"), the leading owner of 
income-generating real estate in the Czech Republic, Berlin, Warsaw and the CEE region, hereby publishes unaudited 
profit and credit estimates for the financial year ended 31 December 2020. While publication of the Company's audited 
annual financial report is scheduled for 31 March 2021, the Company is proceeding with this unaudited disclosure so 
that our investors and stakeholders are updated about the Group's performance. 
"In 2020, CPIPG demonstrated the quality and resilience of our diversified property portfolio," said Martin Nemecek, 
CEO. "COVID-19 remains a short-term factor, but we expect a more positive environment for 2021 and beyond." 
The Company estimates the following preliminary financial and operating results for the financial year ended 31 
December 2020: 
- CPIPG's property portfolio increased to EUR10.3 billion, (+13% versus 2019), as the Group completed more than EUR1 
billion of income-generating acquisitions. Notably, CPIPG became the leading office landlord in Warsaw and the largest 
shareholder in Globalworth Real Estate Investments Limited ("Globalworth"). 
- Total assets increased to EUR11.8 billion (+11% versus 2019), primarily due to the increase in the property portfolio. 
Property valuations were slightly positive in offices (particularly in Berlin), positive in residential, and slightly 
to modestly negative in retail and hotels. 
- At the end of 2020, the share of office properties in the Group's property portfolio increased to 53%, while retail 
declined to 21%. Residential and hotels & resorts represented 8% and 7%, respectively. 
- Net rental income increased to EUR338 million (+15% versus 2019) given the contribution from acquisitions in Q4 2019 
and during 2020, +0.8% like-for-like growth in gross rental income (driven by Berlin), resilient occupancy at 93.7%, 
and the limited impact of one-time discounts provided to tenants (less than 4% of Group net rental income). 
- The Group collected 95% of contracted rent before the impact of one-time COVID-19 discounts, and 98% including 
discounts. 
- Net business income was EUR344 million (unchanged versus 2019), reflecting the impact of increased net rental income, 
offset by a drop in income from hotels, which was the segment most affected by the COVID-19 pandemic. 
- Consolidated adjusted EBITDA increased to EUR337 million (+16% versus 2019), driven by the increase in net rental 
income, contribution from Globalworth, and sharp cost control. These factors combined offset the lower income from 
hotels in 2020. 
- Funds from operations (FFO) was stable at EUR219 million versus 2019, mainly reflecting increased levels of EBITDA 
offset by higher interest costs primarily due to increased borrowings during 2019 and 2020. 
- Net Loan-to-Value (LTV) at 40.7% and Net Interest Coverage Ratio (Net ICR) at 5.4x remain comfortably within the 
Group's financial policy. Net LTV temporarily increased from 36.2% at year-end 2019 primarily due to the impact of 
strategic acquisitions, in accordance with our financial policy which aims to enhance the Group's scale, income 
generation and credit ratings profile. Following the end of the period, in early January 2021 the Group issued 
additional hybrid capital which further reduced LTV. 
- EPRA NRV (NAV) at EUR5.1 billion (unchanged versus 2019). 
- Average cost of funding was 1.7% p.a. at the end of 2020, relative to 1.6% p.a. at the end of 2019. The increase 
mainly reflects the Group's issuance of longer-dated debt in 2020 and repayment of shorter-dated maturities. During 
2020, the Group repaid more than EUR1.2 billion of senior unsecured bonds, Schuldschein and hybrid bonds well in advance 
of the scheduled maturity or call date. So far in 2021, the group has also refinanced almost EUR700 million of senior 
unsecured and undated subordinated bonds which are callable or mature between 2022-2024. 
- Unencumbered assets as a percentage of total assets remained stable at 70%. 
- Secured debt slightly increased to 29% of total debt versus 25% at the end of 2019, primarily due to the impact of 
the refinancing and increase of the loan facility in Berlin. 
- Total available liquidity (comprising cash and undrawn revolving credit facilities) at the end of 2020 exceeded EUR1.3 
billion, comparable to 2019. Cash balances decreased slightly compared to the prior year in light of the refinancing 
and increase in size of the Group's RCF in November 2020 to EUR700 million, which remained fully undrawn. 
"CPIPG sees 2021 as an opportunity to grow our portfolio and further strengthen our capital structure," said David 
Greenbaum, CFO. "The Group is investing across our platforms and has a long-term focus." 
Additional Information 
Estimated 2020 Rent Collections by Segment 
Segment       Before Discounts  After Discounts 
Office              98.3%            98.8% 
Retail              89.0%            97.0% 
Residential         99.2%            99.2% 
Logistics           99.1%            99.6% 
Total group         95.1%            98.2% The Group's strong collection rates reflect the quality of our properties and asset management. Currently more than 80% of the Group's properties (excluding hotels) are open and operating normally. Non-essential shops remain closed in the Czech Republic; fortunately, more than 50% of the Group's units remain open and the Czech government has provided support to local retailers. In general, the Group sees pent-up savings in the system and believes that people are eager to shop and travel. CPIPG also believes that people in our region will be glad to return to the office, even as working styles evolve.

Acquisition of NOVA RE

On 26 January 2021, CPIPG announced the conclusion of a mandatory takeover offer for Nova RE. The Group currently owns about 92.62% of NOVA RE shares; CPIPG continues to see NOVA RE as a platform for the Group's future investments and partnerships in Italy.

Shareholder Distributions

CPIPG's policy is to retain at least about 50% of the Group's annual FFO. The Group intends to make distributions primarily via share repurchase.

In 2019, the Group distributed 50% of FFO through share repurchases. In 2020, the Group did not conduct any share repurchases given the uncertainties around COVID-19. With a more confident backdrop in 2021, the Group expects to shortly announce a repurchase of up to 650 million shares. The effect of the repurchase will be primarily non-cash: Radovan Vitek is expected to tender shares and will apply cash received towards repayment of shareholder loans. The total distribution to Mr. Vitek plus any third parties would be less than 50% of the Group's expected FFO for 2020 and 2021. The Group's subsidiary, CPI FIM SA, also holds shares and may participate in the offer, which would also be non-cash for the Group and continues to simplify the overall capital structure. The offer will be open to all shareholders.

Further information and analysis will be disclosed in the Group's 2020 Annual Report, which will be published on 31 March 2021. An investor webcast will also be conducted on 6 April 2021, with details to be provided in due course.

CPI PROPERTY GROUP's 2021 financial calendar Publication of 2020 annual results - 31 March 2021 Annual general meeting - 28 May 2021 Publication of 2021 first quarter results - 31 May 2021 Publication of 2021 half year results - 31 August 2021 Publication of 2021 third quarter results - 30 November 2021 Publication of 2021 annual results - 31 March 2022

DISCLAIMER: BASIS OF PREPARATION OF ESTIMATES: THE GROUP HAS BEEN PREPARING ITS CONSOLIDATED FINANCIAL STATEMENTS IN ACCORDANCE WITH IFRS AS ADOPTED BY THE EU. THE SAME ACCOUNTING POLICIES, EXCEPT WITH RESPECT TO NEWLY ADOPTED IFRS MEASURES, AND METHODS OF COMPUTATION HAVE BEEN FOLLOWED IN THE PROPER PREPARATION OF THE ESTIMATES CONTAINED IN THIS PRESS RELEASE.

THE GROUP'S OBJECTIVES AND POLICIES FOR MANAGING CAPITAL, CREDIT RISK AND LIQUIDITY RISK WERE THE SAME AS THOSE THAT APPLIED TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019. THESE ESTIMATES HAVE BEEN PREPARED ON A BASIS COMPARABLE WITH THE BASIS UPON WHICH THE HISTORICAL FINANCIAL INFORMATION OF THE GROUP HAS BEEN PREPARED. THESE ESTIMATES HAVE NOT BEEN AUDITED. FACTORS AND ASSUMPTIONS - WITHIN THE CONTROL OF MANAGEMENT: THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS AS WELL AS THESE ESTIMATES REQUIRES MANAGEMENT TO MAKE JUDGEMENTS, ESTIMATES AND ASSUMPTIONS THAT AFFECT THE APPLICATION OF ACCOUNTING POLICIES AND THE REPORTED AMOUNTS OF ASSETS AND LIABILITIES, INCOME AND EXPENSES. THE ESTIMATES AND ASSOCIATED ASSUMPTIONS ARE BASED ON HISTORICAL EXPERIENCE, INTERNAL CALCULATIONS AND VARIOUS OTHER FACTORS THAT MANAGEMENT BELIEVES TO BE REASONABLE UNDER THE CIRCUMSTANCES, THE RESULTS OF WHICH FORM THE BASIS OF JUDGEMENTS ABOUT THE CARRYING VALUES OF ASSETS AND LIABILITIES THAT ARE NOT READILY APPARENT FROM OTHER SOURCES. THE ACTUAL RESULTS MAY DIFFER FROM THESE ESTIMATES. IN PREPARING THESE ESTIMATES, THE SIGNIFICANT JUDGEMENTS MADE BY MANAGEMENT IN APPLYING THE GROUP'S ACCOUNTING POLICIES AND THE KEY SOURCES OF ESTIMATION UNCERTAINTY WERE THE SAME AS THOSE THAT APPLIED TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019.

(MORE TO FOLLOW) Dow Jones Newswires

February 15, 2021 13:45 ET (18:45 GMT)