CTP A more rational development and accounting strategy

CTP shares took a beating after the FY25 results as the consensus probably expected a higher completion number and the capitalisation of interests clouds the outlook comparability. We actually like both trends. Firstly, there is no point for more completions and speculative investments in CEE as it would destroy value for all logistic developers in the market. Capitalising interest also make sense as it increases the comparability with the pure REITS, but EPRA accounting still overlooks the large value creation from its development activity as the unrealised gains from converting land into parks are not counted. This explains why our target price remains unchanged at 10% above NTA. However, we were slightly disappointed by the unrealised gains of €422m despite still completing 1.33m sqm GLA. This could be related to relatively low pre-let level of the current pipeline of 30%. Every year CTP starts at a low level and needs to get to 80-90% by completion.