Press Release

Luxembourg, 29 May 2020

                                                                                                                            

CPI FIM SA reports financial results for the first quarter of 2020

CPI FIM SA (hereinafter “CPI FIM”, the “Company” or together with its subsidiaries the “Group“), a real estate group with a property portfolio primarily located in the Czech Republic and Poland, hereby publishes unaudited financial results for the first quarter of 2020.

As at 31 March 2020, CPI PROPERTY GROUP S.A. (hereinafter also the “CPIPG”, and together with its subsidiaries the “CPIPG Group”) directly owns 97.31% of the Company shares (97.31% voting rights).

Financial highlights

Performance Q1-2020Q1-2019Change
     
Gross rental income€ thousands8,8973222,661%
Total revenues€ thousands16,6087,583119%
     
Operating result€ thousands10,0413,258208%
     
Net profit/(Loss) for the period€ thousands(80,658)14,166(669%)
     
  
     
Assets 31-Mar-2031-Dec-19Change
     
Total assets€ thousands5,707,6185,244,0469%
EPRA NAV€ thousands713,498864,644(17%)
     
Property Portfolio€ thousands1,171,0001,193,000(2%)
     
Gross leasable areasqm174,000174,0000%
Occupancy in %%91.5%93.0%(1.5 p.p.)
     
Land bank areasqm18,068,00018,068,0000%
Total number of propertiesNo.880%
     
  
     
Financing structure 31-Mar-2031-Dec-19Change
     
Total equity€ thousands855,700997,878(14%)
Equity ratio%15%19%(4 p.p.)
     


Income statement

 € thousands31-Mar-2031-Mar-19 
 Gross rental income8,897322 
 Sale of services7,7117,261 
 Cost of service charges(2,749)(892) 
 Property operating expenses(2,060)(260) 
 Net service and rental income11,7996,431 
 Total revenues16,6087,583 
 Total direct business operating expenses(4,809)(1,152) 
 Net business income11,7996,431 
 Net valuation gain on investment property (net of foreign exchange)-- 
 Net gain/(loss) on the disposal of investment property and subsidiaries(2)248 
 Amortization, depreciation and impairments1,039(277) 
 Administrative expenses(2,403)(3,179) 
 Other operating income229 
 Other operating expenses(394)6 
 Operating result10,0413,258 
 Interest income38,63134,424 
 Interest expense(32,107)(15,188) 
 Other net financial result*(96,460)(4,844) 
 Net finance income/(cost)(89,936)14,392 
 Profit/(Loss) before income tax(79,895)17,650 
 Income tax expense(763)(3,484) 
 Net Profit/(Loss) for the period(80,658)14,166 

* Including net foreign exchange gains and losses (including valuation gains classified within valuation gain under IFRS), share of profit of equity accounted investees and other financial gains and losses.

Gross rental income

In 2020, gross rental income increased due to the Group’s acquisition of offices in Warsaw, Poland during 2019. Similarly, there was an increase in cost of service charges and property operating expenses.

Interest income and expense

Interest income increased from €34.4 million to €38.6 million in the three months period ended 31 March 2020. The increase reflects the increase of loans provided by the Group to related parties. Interest expense increased from €15.2 million to €32.1 million the three months ended 31 March 2020. The increase reflects the increase of loans received by the Group primarily from the parent company.

Other net financial result

Other net financial result in the three-months ended 31 March 2020 represented primarily:

  • foreign exchange losses of €147.6 million from retranslation of the loans provided to related parties in foreign currencies; and
  • the valuation gain of €51.4 million due to retranslation of the Group’s portfolio valued in EUR but denominated in foreign currencies (CZK, HUF and PLN).

Balance sheet

 € thousands    
 31-Mar-2031-Dec-19 
 NON-CURRENT ASSETS   
 Intangible assets121,123 
 Investment property1,169,5011,191,435 
 Property, plant and equipment660662 
 Equity accounted investees3,4813,672 
 Other investments184,183188,293 
 Loans provided3,724,3053,442,619 
 Trade and other receivables1212 
 Deferred tax assets153,116153,126 
 Total non-current assets5,235,2704,980,942 
 CURRENT ASSETS   
 Inventories423341 
 Income tax receivables20336 
 Trade receivables10,2337,175 
 Loans provided120,854103,908 
 Cash and cash equivalents165,448129,447 
 Other current assets173,78920,693 
 Assets held for sale1,3981,504 
 Total current assets472,348263,104 
 TOTAL ASSETS5,707,6185,244,046 
 EQUITY   
 Equity attributable to owners of the Company675,210826,356 
 Non-controlling interests180,490171,522 
 Total equity855,700997,878 
 NON-CURRENT LIABILITIES   
 Financial debts4,435,9063,886,792 
 Deferred tax liabilities36,25738,200 
 Provisions1,4821,594 
 Other financial liabilities10,19410,794 
 Total non-current liabilities4,483,8393,937,380 
 CURRENT LIABILITIES   
 Financial debts317,117252,538 
 Trade payables4,86610,543 
 Income tax liabilities612747 
 Other current liabilities45,46544,939 
 Liabilities held for sale1921 
 Total current liabilities368,079308,788 
 TOTAL EQUITY AND LIABILITIES5,707,6185,244,046 

Total assets and total liabilities

Total assets increased by €463.6 million (8.8%) to €5,707.6 million as at 31 March 2020, the majority of which was due to an increase of long-term loans provided to CPIPG.

Total liabilities increased by €605.8 million (14.3 %) to €4,851.9 million as at 31 March 2020. The increase was driven by additional drawdowns of loans to CPIPG of €549.0 million.

EPRA Net Asset Value

The EPRA Net Asset Value per share as at 31 March 2020 is €0.54 compared to €0.66 as at 31 December 2019.

The EPRA Triple NAV as at 31 March 2020 is €0.51 per share compared to €0.63 as at 31 December 2019.

The calculation is in compliance with the EPRA (European Public Real Estate Associations) “Triple Net Asset Value per share”.

  31-Mar-20 31-Dec-19
     
Consolidated equity 675,210 826,356
Deferred taxes on revaluations 38,288 38,288
EPRA Net asset value 713,498 864,644
Existing shares (in thousands) 1,314,508 1,314,508
Net asset value in EUR per share 0.54 0.66
EPRA Net asset value 713,498 864,644
Deferred taxes on revaluations (38,288) (38,288)
EPRA Triple Net asset value 675,210 826,356
Fully diluted shares 1,314,508 1,314,508
Triple net asset value in EUR per share 0.51 0.63

In 2020, the consolidated equity decreased by €151 million. The main driver of the decrease was a loss for the period of €90 million and decrease of translation and revaluation reserve of €61 million.

For more information please refer to our website at www.cpifimsa.com.

Investors contact:
David Greenbaum, Managing Director
Tel: + 352 26 47 67 1
Fax: + 352 26 47 67 67
Email: generalmeetings@cpifimsa.com

GLOSSARY

The Group presents alternative performance measures (APMs). The APMs used in this press release are commonly referred to and analysed amongst professionals participating in the Real Estate Sector to reflect the underlying business performance and to enhance comparability both between different companies in the sector and between different financial periods. APMs should not be considered as a substitute for measures of performance in accordance with the IFRS. The presentation of APMs in the Real Estate Sector is considered advantageous by various participants, including banks, analysts, bondholders and other users of financial information:

  • APMs provide additional helpful and useful information in a concise and practical manner.
  • APMs are commonly used by senior management and Board of Directors for their decisions and setting of mid and long-term strategy of the Group and assist in discussion with outside parties.
  • APMs in some cases might better reflect key trends in the Group’s performance which are specific to that sector, i.e. APMs are a way for the management to highlight the key value drivers within the business that may not be obvious in the consolidated financial statements.

•
EPRA Net Asset Value per share
EPRA Net Asset Value per share is defined as EPRA NAV divided by the diluted number of shares at the end of period.

EPRA NAV
EPRA NAV is a measure of the fair value of net assets assuming a normal investment property company business model. Accordingly, there is an assumption of owning and operating investment property for the long term. For this reason, deferred taxes on property revaluations and the fair value of deferred tax liabilities are excluded as the investment property is not expected to be sold and the tax liability is not expected to materialize. In addition, the fair value of financial instruments which the company intends to hold to maturity is excluded as these will cancel out on settlement. All other assets including trading property, finance leases, and investments reported at cost are adjusted to fair value. The performance indicator has been prepared in accordance with best practices as defined by EPRA (European Public Real Estate Association) in its Best Practices Recommendations guide, available on EPRA’s website (www.epra.com).

Equity ratio
Equity Ratio provides a general assessment of financial risk undertaken. It is calculated as Total Equity divided by Total Assets.

Gross Leasable Area
Gross leasable area (GLA) 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.

Occupancy rate
The ratio of leased premises to total GLA.

Property Portfolio
Property Portfolio covers all properties held by the Group, independent of the balance sheet classification, from which the Group incurs rental or other operating income.

APM reconciliation

Equity ratio reconciliation (€ thousands)31-Mar-2031-Dec-19
Total equity855,700997,878
Total assets5,707,6185,244,046
Equity ratio15%19%

Attachment

  • PR_CPI_FIM_Q1_2020_Results

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