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

29.05.2020 klo 19:52 CPI FIM SA reports financial results for the first quarter of 2020

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   Q1-2020 Q1-2019 Change           Gross rental income € thousands 8,897 322 2,661% Total revenues € thousands 16,608 7,583 119%           Operating result € thousands 10,041 3,258 208%           Net profit/(Loss) for the period € thousands (80,658) 14,166 (669%)                         Assets   31-Mar-20 31-Dec-19 Change           Total assets € thousands 5,707,618 5,244,046 9% EPRA NAV € thousands 713,498 864,644 (17%)           Property Portfolio € thousands 1,171,000 1,193,000 (2%)           Gross leasable area sqm 174,000 174,000 0% Occupancy in % % 91.5% 93.0% (1.5 p.p.)           Land bank area sqm 18,068,000 18,068,000 0% Total number of properties No. 8 8 0%                         Financing structure   31-Mar-20 31-Dec-19 Change           Total equity € thousands 855,700 997,878 (14%) Equity ratio % 15% 19% (4 p.p.)          

Income statement

  € thousands 31-Mar-20 31-Mar-19     Gross rental income 8,897 322     Sale of services 7,711 7,261     Cost of service charges (2,749) (892)     Property operating expenses (2,060) (260)     Net service and rental income 11,799 6,431     Total revenues 16,608 7,583     Total direct business operating expenses (4,809) (1,152)     Net business income 11,799 6,431     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 impairments 1,039 (277)     Administrative expenses (2,403) (3,179)     Other operating income 2 29     Other operating expenses (394) 6     Operating result 10,041 3,258     Interest income 38,631 34,424     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; andthe 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-20 31-Dec-19     NON-CURRENT ASSETS         Intangible assets 12 1,123     Investment property 1,169,501 1,191,435     Property, plant and equipment 660 662     Equity accounted investees 3,481 3,672     Other investments 184,183 188,293     Loans provided 3,724,305 3,442,619     Trade and other receivables 12 12     Deferred tax assets 153,116 153,126     Total non-current assets 5,235,270 4,980,942     CURRENT ASSETS         Inventories 423 341     Income tax receivables 203 36     Trade receivables 10,233 7,175     Loans provided 120,854 103,908     Cash and cash equivalents 165,448 129,447     Other current assets 173,789 20,693     Assets held for sale 1,398 1,504     Total current assets 472,348 263,104     TOTAL ASSETS 5,707,618 5,244,046     EQUITY         Equity attributable to owners of the Company 675,210 826,356     Non-controlling interests 180,490 171,522     Total equity 855,700 997,878     NON-CURRENT LIABILITIES         Financial debts 4,435,906 3,886,792     Deferred tax liabilities 36,257 38,200     Provisions 1,482 1,594     Other financial liabilities 10,194 10,794     Total non-current liabilities 4,483,839 3,937,380     CURRENT LIABILITIES         Financial debts 317,117 252,538     Trade payables 4,866 10,543     Income tax liabilities 612 747     Other current liabilities 45,465 44,939     Liabilities held for sale 19 21     Total current liabilities 368,079 308,788     TOTAL EQUITY AND LIABILITIES 5,707,618 5,244,046  

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


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 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-20 31-Dec-19 Total equity 855,700 997,878 Total assets 5,707,618 5,244,046 Equity ratio 15% 19%