CPI Property Group (O5G) Q4 2024 earnings summary

Executive summary

• Achieved significant progress on operational excellence, capital structure, business streamlining, and governance improvements in 2024.

• Portfolio remains diversified across CEE, with strong office and retail performance, and solid hotel and residential segments.

• Completed EUR 1.6 billion in disposals, repaid over EUR 1 billion in debt, and ended the year with EUR 1.5 billion in liquidity.

• Implemented governance changes and streamlined group structure, including the squeeze-out of S IMMO by Immofinanz.

Financial highlights

• Total assets at year-end 2024 were EUR 20.6 billion; property portfolio valued at EUR 18.2 billion.

• EBITDA was EUR 747 million, FFO EUR 357 million; EBITDA declined slightly due to disposals but was offset by 3% like-for-like rental growth.

• Occupancy steady at 92.1% year-over-year; contracted gross rent exceeded EUR 900 million.

• LTV reduced to 49.6%, below 50% for the first time since H1 2022.

• EPRA topped-up net initial yield at 5.6%, up 20 bps year-over-year.

Outlook and guidance

• Targeting EUR 1 billion of disposals in 2025 and EUR 500 million per year in 2026 and 2027.

• Confident in achieving EUR 2 billion in disposals over the next few years, with scope to outperform.

• Focus on further reducing leverage and restoring investment-grade rating within 1-2 years.

• Expecting stable EBITDA in 2025, with rental growth offsetting disposal impacts.