CTP 9m24 Results, Pre-let is progressing, big 4Q24 ahead

Net Rental income grew 15.9% to EUR 488.4m vs. 491.0m expected (KBCS) and benefited from 4.4% lfl growth. The EPRA EPS of 0.60 also comes in line with our expectation of 0.61. The FY24 EPS outlook is confirmed at 0.80-0.82, but now at the lower end due to the ABB in September. The LTV decreased to 44.9% from 46.0% at FY23 end. The Cost of Debt rose to 2.73% from 1.95% (FY23). The occupancy on standing assets decreased 1% to 93% vs FY23 end. Despite 545k sqm deliveries (95% let) over 3Q24, CTP maintained its development pipeline to a record high GLA of 1.9m sqm (at 10.3% YoC). The pre-let% in the pipeline for FY24 increased to 64% vs. 51% at 1H24. CTP still expects to deliver 1.2-1.3m sqm GLA over FY24, that is a big 4Q24. As long as it can reach 80-90% at completion and realize its industry leading yield on cost > 10%, its FV increases faster than the additional debt. We maintain our TP at 19.30, 10% premium to NTA at 17.52.