CPI PROPERTY GROUP STATEMENT OF COMPREHENSIVE INCOME
Three-month period ended
(EUR million) 31 March 2021 31 March 2020
Gross rental income 93.5 90.0
Service charge and other income 32.9 32.2
Cost of service and other charges (24.9) (23.1)
Property operating expenses (13.1) (15.4)
Net rental income 88.4 83.7
Development sales 9.5 2.6
Development operating expenses (9.0) (1.8)
Net development income 0.5 0.8
Hotel revenue 5.0 16.9
Hotel operating expenses (7.5) (17.9)
Net hotel income (2.5) (1.0)
Revenues from other business operations
Other business revenue 16.8 22.0
Other business operating expenses (11.2) (14.3)
Net other business income 5.6 7.7
Total revenues 157.7 163.7
Total direct business operating expenses (65.7) (72.5)
Net business income 92.0 91.2
Net valuation gain* 56.2 0.2
Net gain on disposal of investment property and subsidiaries 0.1 0.0
Amortization, depreciation and impairment (4.1) (5.1)
Administrative expenses (11.8) (13.5)
Other operating income 1.4 1.3
Other operating expenses (2.1) (1.4)
Operating result 131.7 72.7
Interest income 5.1 4.5
Interest expense (21.2) (17.9)
Other net financial result* 3.6 9.5
Net finance costs (12.5) (3.9)
Share of profit of equity-accounted investees (net of tax) 5.5 1.3
Profit before income tax 124.7 70.1
Income tax expense (13.5) (7.9)
Net profit from continuing operations 111.2 62.2 * Comparative financial information adjusted due to change in accounting policy, for more information refer to note 2.4 of the consolidated financial statements as at 31 December 2020.
Gross rental income
Gross rental income increased by EUR3.5 million (+4%) to EUR93.5 million in Q1 2021. The increase was driven by office acquisitions in Warsaw completed during 2020 (EUR1.4 million) along with continued growth in like-for-like rental income, especially in the Berlin office portfolio (EUR1.8 million).
Net development income
Development sales increased by EUR6.9 million to EUR9.5 million and development operating expenses increased by EUR7.2 million to EUR9.0 million due to sales of apartments and homes in Prague.
Net hotel income
In Q1 2021, primarily due to the COVID-19 pandemic, hotel revenues decreased by EUR11.9 million (71%) to EUR5 million compared to Q1 2020. However, tight cost control led to a reduction in hotel operating expenses by EUR10.4 million (58%) to EUR7.5 million.
Net valuation gain
Net valuation gain of EUR56.2 million in Q1 2021 reflected positive trends in the Czech residential portfolio and the effect of properties in Italy which were acquired at a significant discount to fair value.
Interest expense
Interest expense increased by EUR3.3 million to EUR21.2 million in Q1 2021 primarily due to the increase in total bonds outstanding.
Other net financial result
Other net financial result in Q1 2021 comprises the net foreign exchange gain on investment property of EUR15.2 million, intra-group loans of EUR10.8 million and financial expenses connected with early repayment of bonds of EUR18.0 million.
BALANCE SHEET
(EUR million) 31 March 2021 31 December 2020 NON-CURRENT ASSETS Intangible assets and goodwill 106.3 107.1 Investment property 8,998.7 8,792.6 Property, plant and equipment 784.9 779.4 Deferred tax assets 154.0 155.6 Equity accounted investees 653.8 658.1 Other non-current assets 247.1 330.9 Total non-current assets 10,944.8 10,823.7 CURRENT ASSETS Inventories 29.2 38.8 Trade receivables 103.9 85.4 Cash and cash equivalents 641.1 632.3 Assets linked to assets held for sale 31.7 37.7 Other current assets 103.3 183.5 Total current assets 909.2 977.7 TOTAL ASSETS 11,854.0 11,801.4 EQUITY Equity attributable to owners of the Company 4,197.4 4,320.8 Perpetual notes 1,535.8 1,369.6 Non-controlling interests 68.2 96.1 Total equity 5,801.4 5,786.5 NON-CURRENT LIABILITIES Bonds issued 3,431.8 3,195.2 Financial debts 1,192.5 1,269.6 Deferred tax liabilities 849.0 842.2 Other non-current liabilities 98.7 116.9 Total non-current liabilities 5,572.0 5,423.9 CURRENT LIABILITIES Bonds issued 102.6 108.8 Financial debts 182.2 253.0 Trade payables 61.6 70.6 Other current liabilities 134.2 158.6 Total current liabilities 480.6 591.0 TOTAL EQUITY AND LIABILITIES 11,854.0 11,801.4
Total assets
Total assets increased by EUR52.6 million (0.4%) to EUR11,854.0 million at 31 March 2021 compared to 31 December 2020. The increase was driven primarily by acquisitions (EUR95.9 million), offset by a decrease in shareholder loans.
Total liabilities
Total liabilities increased by EUR37.7 million (0.6%) to EUR6,052.6 million at 31 March 2021 compared to 31 December 2020, mostly due to additional bonds issued during the quarter. However, this was partially offset by the repayment of Schuldschein loans.
EQUITY AND EPRA NRV
Total equity increased by EUR14.9 million from EUR5,786.5 million to EUR5,801.4 million as at 31 March 2021. The main drivers of the change were the following:
- An increase in profit for the period attributable to the owners including non-controlling interests ("NCI") of EUR93.6 million;
- An increase of issued hybrids by EUR390.7 million;
- An increase due to the acquisition of Nova RE in NCI of EUR7.0 million;
- A decrease in revaluation and hedging reserve of EUR8.8 million;
- A decrease in translation reserve of EUR3.2 million;
- A decrease due to share buy-backs of EUR239.9 million;
- A decrease due to refinancing of hybrids including interest of EUR224.0 million.
EPRA NRV was EUR5,004 million as at 31 March 2021, versus EUR5,118 million as at 31 December 2020. The small decrease of EPRA NRV was driven by the above changes in the Group's equity attributable to the owners.
31 March 2021 31 December 2020
Equity attributable to the owners (NAV) 4,197 4,321
Effect of exercise of options, convertibles and other equity interests - -
Diluted NAV 4,197 4,321
Revaluation of trading property and PPE 2 2
Fair value of financial instruments 0 0
Deferred tax on revaluations 847 837
Goodwill as a result of deferred tax (43) (43)
EPRA NRV (EUR million) 5,004 5,118 GLOSSARY
Alternative
Performance Definition Rationale
Measures
(APM)
Consolidated Net business income as reported deducting This is an important economic indicator showing a
adjusted administrative expenses as reported. business's operating efficiency comparable to other
EBITDA companies, as it is unrelated to the Group's
depreciation and amortization 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 Consolidated adjusted total assets is total
adjusted assets as reported deducting intangible assets
total assets and goodwill as reported.
EPRA Net EPRA NRV assumes that entities never sell assets The objective of the EPRA NRV is to highlight the value (MORE TO FOLLOW) Dow Jones Newswires
May 31, 2021 02:31 ET (06:31 GMT)
