CPI PROPERTY GROUP Net debt EUR million 4,716 4,194 12.4% Net Loan-to-value ratio (Net LTV) % 41.9 40.7 1.2 p.p. Net debt/EBITDA 13.7x 12.4x 1.3x Secured consolidated leverage ratio % 12.3 12.0 0.3 p.p. Secured debt to total debt % 28.9 29.0 (0.1 p.p.) Unencumbered assets to total assets % 69.0 70.0 (1.0 p.p.) Net ICR 4.8x 5.4x (0.6x)
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT*
Six-month period ended
(EUR million) 30 June 2021 30 June 2020
Gross rental income 188.1 172.8
Service charge and other income 62.4 60.5
Cost of service and other charges (48.8) (44.1)
Property operating expenses (26.5) (25.2)
Net rental income 175.2 164.0
Development sales 12.0 8.8
Development operating expenses (9.8) (8.1)
Net development income 2.2 0.7
Hotel revenue 15.7 19.8
Hotel operating expenses (19.6) (24.6)
Net hotel income (3.9) (4.8)
Revenues from other business operations
Other business revenue 22.2 29.3
Other business operating expenses (17.9) (21.1)
Net other business income 4.3 8.2
Total revenues 300.4 291.2
Total direct business operating expenses (122.6) (123.1)
Net business income 177.8 168.1
Net valuation gain (loss) 222.0 (11.0)
Net gain on disposal of investment property and subsidiaries 0.5 0.6
Amortization, depreciation and impairment (10.6) (54.9)
Administrative expenses (24.5) (24.9)
Other operating income 2.9 3.9
Other operating expenses (3.1) (2.3)
Operating result 365.0 79.5
Interest income 11.3 8.9
Interest expense (47.3) (38.8)
Other net financial result (22.1) (6.0)
Net finance costs (58.1) (35.9)
Share of gain (loss) of equity-accounted investees (net of tax) 3.3 (14.9)
Profit before income tax 310.2 28.7
Income tax expense (56.8) (26.5)
Net profit from continuing operations 253.4 2.2 * 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 EUR15.3 million (8.9%) to EUR188.1 million in H1 2021 primarily due to growth of rental income generated by the office portfolios in Berlin (EUR4.3 million) and Warsaw (EUR3.5 million) and acquisitions in Italy (EUR3.8 million).
Net hotel income
In H1 2021, hotel revenues decreased by EUR4.1 million (20.7%) to EUR15.7 million due to COVID-19 affecting hospitality for much of the period. On the other hand, because the Group operates nearly all its hotels, hotel operating expenses were reduced by EUR5.0 million (19.9%) to EUR19.6 million in H1 2021.
Net valuation gain
In H1 2021, the valuation gain reflected primarily an increase of the fair value of newly acquired assets in Rome, Italy (EUR135.1 million), and the residential portfolio in the Czech Republic (EUR71.5 million).
Amortization, depreciation and impairment
Amortization, depreciation and impairment decreased by EUR44.3 million to EUR10.6 million in H1 2021 due to positive revaluations of the hotel portfolio (EUR8.5 million). In H1 2020 there was an impairment loss from the revaluation of the hotel portfolio (EUR34.4 million).
Interest expense
Interest expense increased by EUR8.5 million to EUR47.3 million in H1 2021 due to the increase in total bonds issued. Other net financial result
The negative other net financial result in H1 2021 relates primarily to transaction costs of EUR18.1 million attributed to refinancing of bonds including payments of premiums above par.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION*
(EUR million) 30 June 2021 31 December 2020 NON-CURRENT ASSETS Intangible assets and goodwill 108.5 107.1 Investment property 9,714.8 8,792.6 Property, plant and equipment 826.4 779.4 Deferred tax assets 153.4 155.6 Equity accounted investees 656.9 658.1 Other non-current assets 215.1 330.9 Total non-current assets 11,675.1 10,823.7 CURRENT ASSETS Inventories 29.4 38.8 Trade receivables 115.1 85.4 Cash and cash equivalents 241.7 632.3 Cash escrow deposit 338.6 - Assets linked to assets held for sale 34.4 37.7 Other current assets 152.1 183.5 Total current assets 911.3 977.7 TOTAL ASSETS 12,586.4 11,801.4 EQUITY Equity attributable to owners of the Company 4,416.4 4,320.8 Perpetual notes 1,553.8 1,369.6 Non-controlling interests 73.9 96.1 Total equity 6,044.1 5,786.5 NON-CURRENT LIABILITIES Bonds issued 3,430.5 3,195.2 Financial debts 1,413.9 1,269.6 Deferred tax liabilities 903.1 842.2 Other non-current liabilities 102.8 116.9 Total non-current liabilities 5,850.3 5,423.9 CURRENT LIABILITIES Bonds issued 84.2 108.8 Financial debts 367.9 253.0 Trade payables 70.2 70.6 Other current liabilities 169.7 158.6 Total current liabilities 692.0 591.0 TOTAL EQUITY AND LIABILITIES 12,586.4 11,801.4
* 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 EUR785 million (6.7%) to EUR12,586.4 million at 30 June 2021 compared to 31 December 2020. The increase was driven primarily by acquisitions, offset by a slight decrease of loans provided.
Cash escrow deposit
Cash escrow deposit of EUR338.6 million as at 30 June 2021 represents the Company's cash deposit held by Barclays in connection with the mandatory tender offer for Globalworth shares. The transaction completed following the end of the period, at which point excess funds of EUR321.1 million were returned to the Company on 26 July 2021.
Total liabilities
Total liabilities increased by EUR527.4 million (8.8%) to EUR6,542.3 million at 30 June 2021 compared to 31 December 2020, largely due to incremental debt issuance. The Group issued senior unsecured bonds of EUR673.1 million and additionally drawn secured debts of EUR245.0 million, while EUR464.0 million of bonds and EUR115.0 million of secured debts were repaid in H1 2021. As at 30 June 2021, the Group had drawn EUR200 million of the EUR700 million revolving credit facility in connection with the amounts placed in escrow for the Globalworth mandatory tender offer. Once excess funds were returned to the Company on 26 July 2021, the amount drawn under the revolving credit facility was fully repaid.
EQUITY AND EPRA NRV
Total equity increased by EUR257.6 million from EUR5,786.5 million as at 31 December 2020 to EUR6,044.1 million as at 30 June 2021. The movements of equity components were as follows:
- Increase due to the profit for the period of EUR253.4 million (profit to the owners of EUR212.0 million);
- Decrease due to share buy-back of EUR239.9 million;
- Increase in translation reserve of EUR83.3 million;
- Increase from derecognition of financial liability in respect of mandatory public offer for Nova RE shares of EUR3.9 million;
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