CTP (CTPNV NA) Netherlands
Real Estate
Green Street initiates coverage with a Buy rating. This €13bn-GAV Industrial PropCo listed in 2021 and has weathered the rise in real rates unscathed. They highlight CTP’s 1) strong internal growth (5-yr LFL NRI CAGR of 4.6%, ~100 bps above Continental peers), 2) voracious appetite for development-led growth (targets doubling GLA by 2030), 3) development profit margins have stabilised at ~30%; >9% yield-on-cost is achievable, 4) vanilla corporate structure, palatable balance sheet metrics and sufficient liquidity, 5) CEO’s c.75% holding warrants GAV discount, but skin-in-the-game placates fears, 6) offers the highest risk-adjusted five-year REIT returns across Europe at >11% p.a.
Edition: 165
- 21 July, 2023