CTP 1Q25 results show good progress despite tariff war

Gross Rental income grew 15.9% yoy to EUR 182.5m vs. 178.6m expected (KBCS) and benefited from strong 4.2% like-for-like growth. The EPRA EPS of 0.21 came slightly above our expectation of 0.20. New leases signed increased 24% yoy at 3% higher rent. The FY25 EPS outlook is maintained at 0.86-0.88. The LTV% was flat at 45.3% vs. FY24 end. The Cost of Debt declined to 2.94% vs. 3.09% at FY24-end. The occupancy on standing assets was flat at 93% vs. FY24 end. CTP maintained its development pipeline to a record high GLA of 1.9m sqm at 10.3% YoC. CTP still expects to deliver 1.2-1.7m sqm GLA over FY25. The pre-let% in the pipeline for FY25 deliveries increased to 45% from 35% at FY24 end. As long as it can reach 80-90% let% at completion, its FV increases faster than the additional debt. CTP started the year well on delivering new leases at higher rent. We maintain our TP at 19.30, a 4% premium to latest NTA at 18.58.