CPI Property Group (XETRA:C9Q) announced first‑half 2026 results on September 7, showing a modest decline in core earnings and a 2.04% fall in its share price to $0.72, near the lower end of its 52‑week range of $0.675‑$0.82.
Total assets stood at €19.9 billion, with the property portfolio valued at €17.5 billion, a roughly 2% dip from the end of 2025. Consolidated leverage was recorded at 49.3%, leaving an 18% cushion before hitting the 60% covenant limit – equivalent to about €3.6 billion of potential valuation loss. The group reported an overall occupancy of 92.4%.
Adjusted EBITDA fell 7% year‑on‑year to €341 million, while net rental income declined 5% to €375 million and net business income dropped 7% to €372 million. Funds from operations (FFO) amounted to €145 million.
Disposals remained a central theme. Gross proceeds from sales closed or signed in 2026 reached €542 million, roughly 5% above book value, and the pipeline now exceeds €2 billion, with more than €330 million already under letters of intent or advanced due‑diligence. The company aims to meet the upper bound of its 2026 target of €500‑€750 million and expects disposal activity to stay above €500 million annually through 2028.
The portfolio is weighted toward office (44% or €7.8 billion) and retail (28% or €5.0 billion) assets, with hotels (17% or €3.0 billion) and complementary assets (7% or €1.2 billion) making up the remainder. Geographically, the Czech Republic accounts for 30% of value, followed by Germany (17%) and Poland (14%). Retail occupancy is high at 98% and generated €190 million of net rental income, while office occupancy sits at 88% overall, delivering €188 million of net rental income.
Hotel operations contributed €10 million of net income, with an average daily rate of €89.9 and a gross operating profit margin of 32.6%. New hotel openings in Budapest and Brno added 350 rooms and €1 million of incremental gross operating profit.
Capital expenditure in the period totaled €226 million, split between maintenance (€80 million), refurbishment (€69 million), new yielding‑asset development (€41 million) and development for sale (€35 million). Seven projects are under construction, all showing yields above 7% and pre‑letting rates near 90%.
Liquidity remains robust, with €1.6 billion in total cash and undrawn facilities, covering all debt maturities to Q1 2028 and unsecured bond obligations to Q3 2030. The debt mix is evenly split between secured (€4.996 billion) and unsecured (€4.771 billion) borrowings, with an average cost of 3.73% and 96% of debt at fixed rates. Interest coverage stands at 2.2‑times, comfortably above the 1.9‑times covenant floor, and secured leverage is 24.1%, well under the 45% limit.
On the ESG front, the group reduced Scope 1+2 greenhouse‑gas intensity by 51.6% versus its 2025 target and increased green‑certified buildings to 52.3% of portfolio value. MSCI upgraded its ESG rating to “A,” and Sustainalytics assigned a “Low Risk” score of 13.7, placing CPI in the top 8% globally.
CEO David Greenbaum highlighted that disposals are now aimed at reshaping the portfolio toward higher‑return assets, while noting that the firm does not plan to return to the bond market in the near term, given its strong liquidity position and favorable bank financing terms.
