Higher valuations backed by growing income
(+) Higher revenues and NPI driven by pivot to logistics and light industrial
- 1H22 revenues increased 8.5% y-o-y to EUR107.4m
- Mainly driven by new acquisitions over the past year, and partially offset by disposals and redevelopments
- Acquired four light industrial and logistics properties in 1H22 that were valued at c.EUR92m
- Divestments of c.EUR19m in 1H22
- NPI of EUR67.3m was 4.7% higher y-o-y, also driven mainly by acquisitions
- On a like-for-like basis, NPI would have been flat y-o-y
- NPI for the logistics property segment grew at the highest rate, at 24.3% y-o-y
- Strong NPI growth driven by pivot to logistics with c.EUR212.6m in acquisitions in FY21 and a further c.EUR92.0m in 1H22
- NPI for the office segment was down 3% y-o-y, mainly due to the absence of income contribution from Via Nervesa 21 in Italy that is currently being redeveloped
(+) 1H22 DPU of 8.695 Ects; slightly above our estimates
- 1H22 DPU of 8.695 Ects was 2.3% higher y-o-y
- Forming slightly more than 51% of our FY22 DPU estimates
- Distributable income of EUR48.9m was 5.9% higher y-o-y
- Includes EUR1.1m of capital gains distribution in lieu of the redevelopment of Via Nervesa 21
- CERT expected to continue tapping into capital gains distribution in lieu of properties that are taken off for redevelopment
- An estimated c.EUR8m in capital gains remain
(+) Higher occupancies of 95.4% and positive rental reversions
- CERT’s overall portfolio occupancy inched up 0.6ppt q-o-q to 95.4%
- Higher occupancies were reported for both its office and logistics/light industrial portfolios
- Office portfolio reported a slight improvement in occupancies for France and Finland, partially offset by a slight dip in occupancies in the Netherlands and Poland
- Light industrial/logistics portfolio reported a pickup in occupancies across the board, with the only dip in occupancies reported in the Czech Republic
- Positive rental reversions of 2.9% in 1H22
- Office portfolio: +3.4%
- Light industrial/logistics portfolio: +2.7%
- Remaining leases due to expire in FY22 are well spread out across its office and light industrial/logistics assets
- Strong leasing demand and rental rates for light industrial/logistics portfolio expected to be more than sufficient to offset any weakness in the office portfolio
