Thursday, 29 October 2026
CTP recorded a 23% increase in leasing activity during the first nine months of 2026, supported by demand from manufacturers, logistics operators and retailers across Central and Eastern Europe. The industrial and logistics property developer signed agreements covering 1.94 million sqm between January and September, compared with 1.58 million sqm during the corresponding period last year. Gross rental income increased by 12.5% to €632 million, although reported net profit declined substantially as property valuation gains fell from the previous year’s levels.
Of the total leasing volume, approximately 1.16 million sqm involved new agreements, while 779,000 sqm represented renewals and expansions. Existing customers accounted for 63% of new leasing activity, reflecting continued expansion within CTP’s established industrial parks. Leasing was particularly strong during the first half of the year, with 762,000 sqm signed in the first quarter and 813,000 sqm in the second, before activity moderated to 368,000 sqm during the third quarter.
Demand continues to be influenced by companies reorganising European supply chains, expanding regional manufacturing capacity and strengthening distribution networks. According to CTP, manufacturers producing goods closer to European customers, third-party logistics providers and businesses serving domestic consumption remain important sources of occupier activity. The company maintains a significant presence in the Czech Republic, Romania, Hungary and Slovakia, where it reports an average market share of 28.3%, alongside operations in several other European markets.
Rental performance remained positive, with net rental income increasing by 12.8% to €619 million. Like-for-like rental growth reached 4.8%, supported by contractual indexation and adjustments when leases were renewed or renegotiated. Approximately 73% of portfolio rental income was covered by inflation-linked provisions at the end of September. Occupancy remained unchanged at 93%, while the weighted average unexpired lease term increased to 6.3 years. Annualised rental income reached €871 million, compared with €858 million at the end of June.
CTP completed 561,000 sqm of industrial and logistics developments during the reporting period, with 93% of the space leased upon delivery. The projects achieved a reported yield on cost of 10%, generating €23.4 million in contracted annual rental income. These completions increased the company’s operational portfolio to 15.1 million sqm of gross lettable area, reinforcing its position among Europe’s largest listed industrial and logistics property owners.
At the end of September, approximately 1.68 million sqm remained under construction, representing potential additional annual rental income of €130 million once completed and leased as anticipated. The development pipeline carries an expected yield on cost of 10%, with most projects located within existing industrial parks. However, CTP now expects its 2026 completions to fall towards the lower end of its previously announced range of 1.4 million to 1.7 million sqm, reflecting adjustments to construction schedules and the timing of tenant commitments.
The company’s landbank totalled 33.4 million sqm, providing capacity for an estimated 16.7 million sqm of additional industrial and logistics space under its development assumptions. CTP estimates that its existing land holdings could generate more than €7 billion in potential development valuation gains over time. This projection is based on assumptions concerning construction costs, development density and completed property valuations, rather than income already realised or guaranteed future returns.
Despite stronger leasing and rental income, reported profit for the first nine months fell by 62.9% to €320.1 million, compared with €862.8 million in the corresponding period of 2025. The decline was largely attributable to substantially lower property revaluation gains, which decreased from €774.4 million to €56 million. The latest valuation result included positive adjustments of €215.3 million on properties under development, partly offset by negative adjustments of €150.3 million on completed assets and €9 million on land holdings. In contrast, company-specific adjusted EPRA earnings, which provide an alternative measure of recurring property-related performance, increased by 9.8% to €365.2 million.
CTP’s property portfolio continued to expand in value, with gross asset value reaching €19.4 billion at the end of September, an increase of 5% since December 2025. Investment properties accounted for approximately €17.4 billion, while properties under development represented a further €1.68 billion. EPRA net tangible assets per share increased to €20.78, up 1.9% since the beginning of the year. Nevertheless, the company’s cash flow statement showed net cash generated from operating activities declining to €235.9 million from €314.7 million, while cash and cash equivalents fell to €404.5 million from €708.4 million at year-end 2025.
The group reported available liquidity of €2.1 billion and completed approximately €2.2 billion of financing and refinancing transactions during the first nine months. Its average borrowing cost stood at 3.3%, with 99.9% of debt carrying fixed interest rates or benefiting from hedging arrangements. The leverage ratio reached 46.6%, remaining above CTP’s medium-term target range of 40% to 45%. The company also reported a normalised net debt-to-EBITDA ratio of 9.5 times and an interest coverage ratio of 2.5 times. In October, CTP announced a share repurchase programme of up to €100 million, introducing an additional capital allocation commitment alongside its development expenditure.
Looking ahead, CTP maintains its objective of reaching €1 billion in annualised rental income during 2027, supported by the completion of projects currently under construction, contractual rental increases and the leasing of additional space. The company also reiterated its guidance for company-specific adjusted EPRA earnings per share of €1.01 to €1.03 in 2026, representing expected annual growth of approximately 9% to 11% on its restated comparative basis. While the leasing figures indicate continued occupier demand across its European markets, the slower pace of third-quarter transactions, lower valuation gains and leverage above the company’s preferred range remain important considerations as CTP pursues further expansion.
Source: CTP N.V., Q3 2026 Results, published 29 October 2026.
