DGAP-News: CPI PROPERTY GROUP
/ Key word(s): Miscellaneous
CPI PROPERTY GROUP CPI PROPERTY GROUP ("CPIPG" or the "Group") has prepared an update for our stakeholders following the recent surge in COVID-19 cases and the reintroduction of government restrictions across Europe. "CPIPG gained tremendous experience from the initial outbreak of COVID-19 and took many steps to prepare our business and capital structure for a second wave," said Martin Nemecek, CEO. "Our local teams are already engaged with tenants to minimize the impact of any new restrictions." Recent COVID-19 Measures In conjunction with the new restrictions, the Czech government has announced support for retail tenants affected by the closures in the form of a subsidy covering 1.5 months of rent. While the new support package resembles the highly effective measures enacted during H1 2020, in the latest version landlords are not required to provide discounts as a precondition to the government subsidies. Occupancy in CPIPG's Czech retail portfolio was 97% as of H1 2020. The Group continues to work with tenants to preserve a high level of occupancy and an optimal shopping experience across our Czech shopping centres and retail parks. Recent data has proven that Czech shoppers respond swiftly when government restrictions are eased: while hygiene measures and social distancing resulted in slightly lower footfall in Q3 relative to 2019, tenant sales rebounded to 2019 levels. In contrast to the lockdown in early 2020, the borders of the Czech Republic remain open and business travel (and related hotel stays) are permitted. The Group continues to carefully manage hotel operating expenses and is pleased that the Czech government will cover 100% of salaries for hotel employees who are not working during the emergency period. The vast majority of CPIPG's office, residential and other properties are unaffected by recent COVID-19 developments. In total, 85% of CPIPG's portfolio across the Czech Republic, Berlin, Warsaw, and other locations is open and operating normally. Rent Collection Rates Total discounts agreed by CPIPG during H1 2020 amounted to €7.8 million, or 4.4% of the Group's H1 gross rental income. The table below summarizes the Group's collection rates for Q2, H1 and Q3 2020. CPIPG will provide regular updates on collections in the coming months.
In May, the Group repaid €800 million of bonds due in 2022, 2023 and 2024 and issued a €750 million green bond maturing in 2026. In September, CPIPG issued €525 million of hybrid bonds which are callable in 2026 and used the proceeds to repay bonds maturing in 2022 and hybrid bonds which are callable in 2023. As a result, CPIPG has substantially cut near-to-medium term bond maturities while reducing gross debt. The Group currently has more than €500 million in cash and a €510 million revolving credit facility, which has remained undrawn throughout the COVID-19 outbreak. "CPIPG cares deeply about the health of our tenants, employees, communities and capital structure," said David Greenbaum, CFO. "We are confident in our response to the current challenges and will continue to invest and prepare for life after COVID-19." For more on CPI PROPERTY GROUP, visit our website: www.cpipg.com. For further information please contact: INVESTORS CPI PROPERTY GROUP CPI PROPERTY GROUP MEDIA/PR Kirchhoff Consult AG
26.10.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | CPI PROPERTY GROUP |
40, rue de la Vallée | |
L-2661 Luxembourg | |
Luxemburg | |
Phone: | +352 264 767 1 |
Fax: | +352 264 767 67 |
E-mail: | contact@cpipg.com |
Internet: | www.cpipg.com |
ISIN: | LU0251710041 |
WKN: | A0JL4D |
Listed: | Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart |
EQS News ID: | 1142922 |
End of News | DGAP News Service |