CPI PROPERTY GROUP Releases 2023 Financial Report

CPI PROPERTY GROUP, a prominent European real estate player, announced its audited financial outcomes for the year ending 31 December 2023. Highlighted by CEO David Greenbaum, the company's performance underscores the resilience of the CEE region's real estate market. Greenbaum also outlined the 2024 goals, focusing on operational excellence, leverage reduction, and simplifying operations.

Key figures from the 2023 financial snapshot include a total asset value of €21.9 billion and a property portfolio worth €19.5 billion after accounting for disposals and revaluations. The company achieved a net rental income of €796 million, marking a 25.9% increase. Hotel revenues also surged to €76 million, evidencing a 66% growth compared to the previous year. Despite these gains, the company faced a net valuation loss of €1.1 billion, primarily affecting its Berlin offices and assets in the IMMOFINANZ and S IMMO portfolio.

In 2023, CPI PROPERTY GROUP successfully signed and advanced on €2 billion worth of property disposals and secured more than €2.5 billion in external financing, enhancing its liquidity and reducing net debt by over €400 million. This financial maneuvering aims to further bolster its strategic plan to divest an additional €2 billion in assets over the next 12 to 24 months.

The company also disclosed ongoing negotiations for an equity investment deal worth up to €450 million with Apollo Funds, aiming to strengthen its balance sheet while maintaining its credit ratings. As part of its financial strategy, CPI PROPERTY GROUP reduced its annual distributions to conserve cash and lower leverage, with plans to revise these policies in light of market conditions.