CTP sees net profit down, rental income up in 2023

CTP, a developer of industrial and logistics real estate in the Czech Republic, saw its net profit fall by 16 percent to about CZK 12.3bn (EUR 483.8m) last year, according to the company's press release and its representatives' statements for CTK.

On the other hand, the firm's rental income, which makes up a significant part of the company's revenue, rose by around 7 percent yr/yr to some CZK 6.2bn (EUR 247m).

CTP manages four million square metres of leasable space and holds a 27 percent share of the Czech industrial real estate market. In addition to industrial premises, it also leases offices, mainly in Brno and Ostrava.

"We are registering changes in demand. Logistics and e-commerce may not be growing as in the past, but they still have their place and potential for growth. We are building over 400,000 square metres of new space in the Czech Republic, which demonstrates our confidence in this region, which offers a favourable geographic location, an educated workforce and a well-developed network of services and infrastructure," said Jakub Kodr, CTP executive and sales director in the Czech Republic.

CTP has over 600 tenants in the Czech Republic, and two-thirds of the new contracts were concluded with existing clients last year. In total, 550,000 square metres were taken up, of which approximately 350,000 square metres were new space.

One of the largest transactions was the lease of 53,000 square metres in CTPark Blucina, where the Czech branch of Taiwanese electronics manufacturer and developer Inventec has settled. In Ostrava Hrusov Park, the company leased 40,000 square metres to Vitesco Technologies, a manufacturer of drives and electrification in the automotive industry. The largest transaction, however, was the renewal of contracts with an unnamed information technology distributor in the Bor park, who leases 54,000 square metres there.

According to the press release, the group is currently the largest owner of offices in Brno, where it is also continuing their further construction.

The company's most significant transaction in administrative space was the lease of 5,000 square metres in the Vlnena complex in Brno to multinational IT company Kyndryl.

CTP also moved its operations to Ostrava, where it leased over 2,000 square metres in the IQ building to the Clubco coworking centre.

CTP was founded by Dutchman Remon Vos in the Czech Republic in 1998. Seven years ago, the group entered other markets in the region. In addition to the Czech Republic, where the developer has the largest presence, it operates in Slovakia, Hungary, Serbia, Romania and Poland. It leases 11.8 million square metres of space in ten countries.

In the first half of 2023, CTP's overall profit fell 4.2 percent to EUR469.6m (CZK 11.3bn). Its net rental income increased by 26.8 percent to EUR 268.3m (CZK 6.4bn).

Source: CTK and CTP