CPI Property : Earnings Document

Investor Presentation (April 2024)

FY 2023

CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023

Financial highlights for 2023

• One of Europe's largest landlords
• Substantial recurring income and cashflows
• High occupancy and strong rental growth
• Leverage above target at year end, offset by significant sales in Q1
• Firmly committed to reaching our financial policy targets
• €1.4 billion of available liquidity

TOTAL ASSETS	PROPERTY PORTFOLIO
€21.9	€19.5
billion	billion

CONSOLIDATED	FUNDS FROM
ADJUSTED EBITDA	OPERATIONS (FFO)
€778	€390
million	million

UNENCUMBERED ASSETS	WAULT
3.5
48%

NET LTV

52.3/49.8%

pro-forma for

signed disposals

OCCUPANCY

92.1%

NET ICR

2.5/3.3×

CONTRACTED GROSS RENT

€929

million

LIKE-FOR-LIKE

RENTAL GROWTH

7.9% 2

EPRA NRV (NAV)

€7.0

years

excluding bridge

financing

billion

Group overview

Property portfolio by segment (as at 31 December 2023)

Ofce	€3,274m
Retail		17%	€8,808m
Residential			45%
€1,121m		Property
	6%
Hotels & Resorts		portfolio
		€19.5 billion
		7%
Complementary Assets
€1,464m
			25%
		€4,864m

Property portfolio by geography (as at 31 December 2023)

	Czech Republic	€878 m			€5,375m
	Germany
	€1,455m	4%		28%
	Austria
	7%
	Poland	€1,325m		Property
	7%
	Romania			portfolio
	Italy	8%	€19.5 billion	18%
	€1,571m
				€3,563m
	Hungary		8%		6%
	Other CEE	€1,614m		13%
					€1,249m
	Other		€2,502m

CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023

myhive S-Park, Bucharest, Romania

3

Scale, diversification and quality

Property portfolio (€ million)

Ofce		€20.9bn
Retail		€19.5bn
	2,965
Residential			3,274
Hotels & Resorts		995
Complementary Assets		2,112	1,121
	€13.1bn	4,773	1,464
	4,864
	2,031
€10.3bn
823
1,121
1,214	10,010
749	2,697		8,808
889
2,220
5,336	6,354
2020	2021	2022	2023

Like-for-like rental income continues to grow*

		7.6%	7.9%
	3.3%
0.8%
2020	2021	2022	2023

CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023

Gross and net rental income (€ million)

Gross rental income

Net rental income

% YoY change

						934
				749		+25%	796
						+26%
				+86%	632
					+74%
		402	363
		+13%
356	338	+7%
2020	2021	2022*	2023	4

* Rental income in 2022 reflects ten months of contribution from IMMOFINANZ and six months of contribution from S IMMO.

Consolidated adjusted EBITDA (€ million)

Net Business Income

Consolidated adjusted EBITDA

% YoY change

						874
						+29% 778*
				676	608*	+28%
				+75%
					+65%
		385	368*
344	338*	+12%	+9%
2020	2021	2022	2023

* CPIPG standalone

* Includes pro-rata EBITDA of Equity accounted investees.

CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023

Update on financing activities

More than €2.5 billion raised in 2023, including €1.2 billion of fresh cash

Q4 2023

€50 million secured loan

• Refinancing of existing loan against Czech office assets
• 5-yearmaturity at 195 bps spread

€404 million secured loan

Q3 2023

€65 million secured loan

• New loan secure against a property in Berlin; drawdown in two stages
• 6-yearmaturity at 144 bps spread

Q2 2023

€489 million secured loans

• Four new secured loans across the Group's portfolio in June
• 3.5- up to 7-year maturity at 210-280 bps spread

Einsteinova, Bratislava, Slovakia

• Refinancing of existing loan that was scheduled to mature in October 2024
• 7-yearmaturity with attractive margin unchanged to previous financing

€122 million secured loans

• Three new secured loans across retail and office properties in the Czech Republic
• 5-yearmaturity at 200-220 bps spread

Total liquidity

€1.4bn

€635 million bridge loan

• Refinancing of existing bridge loan intended to be drawn by the end of October
• 3-yearmaturity signed with a group of relationship banks

€75 million green bond

• Senior unsecured green bond issued by S IMMO in July
• 5-yearmaturity at 5.5% fixed coupon

€100 million RCF

• Prolongation of existing undrawn €100 million senior unsecured revolving credit facility
• Margin linkage to ESG rating

€170 million secured loan

• Refinancing and upsizing (+33 m) of secured loan in Germany in May

• 5-year maturity at 170 bps

spread

Q1 2023	5
€100 million sustainable
bilateral loan

• Senior unsecured loan signed in March
• 5-yearmaturity at 210 bps spread

€110 million secured loan

• Senior secured loan signed at the end of March
• 10-yearmaturity at 290 bps spread against Hungarian office assets

Disposal pipeline: €2 billion target achieved, further €2 billion in execution

Granularity and diversification of pipeline is a significant advantage

• At the end of August 2022, CPIPG announced a disposal pipeline exceeding €2 billion over 12 to 24 months. With more than €2 billion of disposals signed, the pipeline is nearly complete.
• The Group's disposal strategy focuses on low-yielding mature assets, single tenant properties and non-strategic assets outside of the Group's core markets.
• Disposals have been, on average, at book value and the buyers are predominantly local investors, including family offices, local real estate companies, funds and asset managers.
• The Group continues to have a sizable disposal pipeline and aims to dispose an additional €2 billion over the next 12 to 24 months.

Germany Crans Montana Ski Resort, Switzerland

CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023

Overview of recently disposed properties

Adlerhof, Residential, Vienna, Austria

Disposals by geography*

Germany

34%

Austria

Czech Republic	10%
Croatia	4%	18%

Italy

16%

Other

38%

Disposals by segment*

Ofce

Residential		4%
Landbank	33%	21%
Hotel
Other		6%

36%

Residential Apartments, Leipzig, Germany Residential Apartments, Berlin,

Sunčani Hvar Hotels, Hvar, Croatia

Concept Tower, Warsaw, Poland

6

*split based on main usage

CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023

Modest valuation declines due to good-yielding diversified portfolio

In 2023, the valuation result was a loss of €1.1 billion, equivalent to a 5.1% decline

• Varying results across segments and geographies, with lower-yielding segments such as German offices being the most impacted.
• Since the start of 2023, the average portfolio's EPRA topped-up net initial yield has increased by 0.7% to 5.4%.

EPRA topped-up net initial yield

5.4%
	4.2%
CPIPG	Peers average

Note: Peer Group consisting of Merlin Properties, Aroundtown, CA Immo, Alstria, Colonial, Gecina

Like-for-like valuation movement by segment

Valuation movement of investment properties by geography

Other^

7

-€740m

-€160m

-€144m

+€129m

-€229m

Note: Others includes Landbank, Industrial, Development, Agriculture, Hotels rented * Owner-operated hotels only

^ Includes Austria, Romania, other CEE and other Western Europe

-9.4%

Office

-0.6%

Retail

-0.7%

Residential

+7.0%

Hotels*

-5.4%

Others

Focused on leverage, coverage and liquidity

Pro-forma impact from disposals on net LTV	Bridge loan effect on the Group's net ICR
		LTV	Disposals

CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023

Liquidity coverage for the next 24 months (€ bn)

Total liquidity YE 2023

Net proceeds from signed disposals

-2.5% impact on leverage from signed disposals

52.3%

49.8%

FY 2023

Pro-forma

The Group signed nearly €900 million of disposals in 2023 and Q1 2024 that were not reflected in the Group's year-end results due to the timing gap between signing and closing. While the disposal agreements are binding, closings are subject to antitrust approval, tax confirmations and other subsequent conditions.

Key signed disposals not included in the year-end figures are:

• Sunčani Hvar Hotels
• The sale of a 50% stake in a subsidiary owning a portfolio of eight hotel properties in the Czech Republic
• The sale of the mountain resort in Crans Montana

0.8×

3.3×

2.5×

0.8×

FY 2023

Impact of bridge loan

Net ICR excluding bridge

The Group's interest coverage declined over the last 24 months largely because of costs associated with bridge loans related to the acquisitions of IMMOFINANZ and S IMMO.

As of 28 March 2024, CPIPG has repaid over €2.1 billion of bridge loans; the current balance of €530 million is intended to be fully repaid around the end of H1 2024, despite a stated final maturity of October 2026.

Debt maturities 2024 & 2025
	2×
0.7	Liquidity
	coverage
1.4	8
	1.1
Total liquidity	Debt maturities 2024 & 2025

Net proceeds from disposals (after repayment of debt attached to certain properties and fees) will further enhance the Group's liquidity position, which is expected to improve by about

€700 million once all signed disposals are closed and proceeds are received.

Business update

9

Balance Hall, Budapest, Hungary

CPI PROPERTY GROUP INVESTOR PRESENTATION - FY 2023

High occupancy reflects tenant and asset quality

• Strong like-for-like rental growth of 7.9% supported by a high occupancy rate of 92.1% across the portfolio. Retail remains virtually fully occupied at 97.5%, offices are at 88.7%, and the residential segment at 92.0%.
• The Group's lease maturity profile is well balanced, with a stable WAULT of 3.5 years; on average, 16% of our leases expire annually through 2028.
• Top 10 tenants are high-quality international and regional companies, and only represent 9% of rental income. No individual tenant is over 1%.

Occupancy rate (%)*

		Ofce		Retail			Residential*	X% Group
93.7%	93.8%		92.8%	92.1%
96.7%			97.0%		97.9%	97.5%
92.4% 92.9%	91.9%	95.5%			92.0%
89.9%	92.8%	88.7%

2020

2021

2022

2023

Top 10 tenants by rental income

	€ million	Rent as	WAULT**
	% of GRI*	(years)
	9.5	1.0%	2.7
	9.2	1.0%	5.6
	8.8	0.9%	2.5
	8.7	0.9%	3.4
	8.7	0.9%	2.8
	8.6	0.9%	9.2
	8.3	0.9%	2.6
	8.3	0.9%	5.3
	7.6	0.8%	6.0
	7.2	0.8%	3.1
Total	84.9	9.1%	4.3

89%

Office

occupancy

97%

Retail

occupancy

10

3.5 years

average

WAULT

5.4%

EPRA topped-up

net initial yield

* Occupancy based on rented units.

* Based on annualised headline rent. ** WAULT reflecting the first break option.