CTP reports EUR 1.1 billion profit for 2024, driven by rental growth and development expansion

CTP N.V. (CTP) has reported a record profit of €1.1 billion for 2024, reflecting strong rental growth, high occupancy rates, and an expanding development pipeline. The company’s net rental income increased by 19% year-on-year to €646.8 million, while company-specific adjusted EPRA earnings rose 12.5% to €364 million.

Gross rental income grew by 16.1% to €664.1 million, supported by a 4% like-for-like rental increase driven by indexation and lease renegotiations. As of 31 December 2024, the company’s annualised rental income stood at €742.6 million, with a 93% occupancy rate across its portfolio.

Development and Portfolio Growth

CTP completed 1.3 million square meters of new developments in 2024, with a yield on cost of 10.1% and 92% of the space leased upon completion. This brought the company’s total gross lettable area (GLA) to 13.3 million square meters. The group’s total asset value increased by 17.2% to €16 billion, while its EPRA NTA per share grew by 13.6% to €18.08.

At the end of 2024, CTP had 1.8 million square meters under construction, with an expected rental income of €142 million once fully leased and a yield on cost of 10.3%. The company also expanded its landbank to 26.4 million square meters, securing long-term growth opportunities.

Market Demand and Leasing Activity

CTP signed leases for 2.1 million square meters in 2024, a 7% increase from the previous year. The company reported a rent collection rate of 99.8%, highlighting the stability of its tenant base. Rental income was further supported by the nearshoring trend, with Asian manufacturers producing in Europe for the European market accounting for 20% of CTP’s leasing activity in 2024.

CEO Remon Vos noted the continued demand for industrial and logistics real estate in Central and Eastern Europe (CEE), driven by supply chain modernization, e-commerce growth, and nearshoring. “We have a strong leasing pipeline for 2025, which will allow us to maintain our development pace of over 10% of new GLA per year,” he said.

Financial Performance and Outlook

CTP maintained a solid balance sheet with a loan-to-value (LTV) ratio of 45.3%, down from 46% in 2023. The company successfully raised €300 million in equity through an oversubscribed accelerated bookbuild, allowing it to fund further developments and acquisitions, including an 830,000-square-meter brownfield redevelopment in Düsseldorf.

The company has set a 2025 guidance for company-specific adjusted EPRA EPS between €0.86 and €0.88. It expects to continue delivering double-digit NTA growth, supported by development completions and rental income expansion.

CTP has proposed a final 2024 dividend of €0.30 per share, bringing the total annual dividend to €0.59 per share, a 12.4% increase from the previous year. The default dividend option is scrip, though shareholders can opt for cash payment.

Future Developments and Investment Strategy

Looking ahead, CTP plans to deliver between 1.2 million and 1.7 million square meters of new developments in 2025, with 35% of this space already pre-leased. The company aims to reach €1 billion in rental income by 2027 and 20 million square meters of GLA by the end of the decade.

CTP continues to focus on tenant-led development, with 80% of its projects under construction located in existing parks. The company is also expanding its renewable energy initiatives, with 138 MWp of installed photovoltaic capacity and a target yield on cost of 15% for energy investments.

With a strong financial position, high occupancy rates, and a growing development pipeline, CTP expects to maintain its market leadership in the industrial and logistics real estate sector across Central and Eastern Europe.