CTP NV does not meet the 2025 profit guidance, announces change in interest capitalization policy

Investing.com - CTP NV (EURONEXT:CTPNV) announced on Thursday that its adjusted EPRA earnings for 2025 are €405 million, an 11% increase year-over-year.

However, earnings per share of €0.85 fell short of the company’s guidance range of €0.86 to €0.88, representing a 6.3% increase from last year.

The company attributed the earnings shortfall to delays in completing development projects until the first quarter of 2026.

In 2025, CTP delivered 1.325 million square meters, with a cost-to-income ratio of 10.4%, below the initial guidance of 1.3 to 1.6 million square meters. The pre-lease rate in the fourth quarter worsened to 79%, with an overall occupancy rate of 88% for delivered properties.

Starting in 2026, CTP will capitalize interest expenses based on its average debt cost. The company issued a 2026 EPS guidance of €1.01 to €1.03, representing a 9% to 11% increase over 2025 on a normalized basis.

Gross rental income reached €760 million, up 14.4% year-over-year, with like-for-like growth of 4.5%. The company expects like-for-like growth of 4% in 2026.

Occupancy remains stable at 93%, with CTP signing leases for 2.325 million square meters, a 10% increase from 2.113 million square meters in 2024.

The company’s rental reversion potential is 14.1%, compared to 13.7% over nine months and 14.9% in the first half of 2025.

CTP’s total investment portfolio grew 16% year-over-year to €18.5 billion, with a net revaluation gain of €1.139 billion. Like-for-like property valuations increased by 4.4%. The group’s EPRA net tangible assets grew 12.8% to €20.39 per share, up from €18.08 in 2024.

The company currently has 2 million square meters of projects under construction, targeting a 10% cost-to-income ratio. Its land reserves total 33.8 million square meters, up from 26.4 million in 2024.

CTP plans to deliver 1.4 to 1.7 million square meters in 2026.

The group’s loan-to-value ratio reached 46.1%, above its internal target of 45%, compared to 45.3% in 2024. The interest coverage ratio is 2.5x, and the normalized net debt to EBITDA ratio is 9.3x, higher than 9.1x in 2024.

The average cost of debt increased from 3.1% in 2024 to 3.3%.

CTP will propose a dividend of €0.63 per share for 2025, a 7% increase year-over-year.

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