CA Immo reports solid first-quarter performance in 2025 despite ongoing portfolio streamlining

CA Immo has reported a strong start to the year, delivering improved operational results in the first quarter of 2025, despite a continued strategy of disposing non-core assets. The company recorded growth across key performance indicators, supported by higher rental income and disciplined cost management.

Net rental income rose by 12% year-on-year to €54.1 million, largely due to increased income from investment properties and the successful completion of development projects. Recurring earnings (FFO I) reached €34.2 million, representing a 28% increase compared to the same period last year. EBITDA was up 33% to €49.1 million, while consolidated net profit rose by 40% to €22.5 million.

The occupancy rate for CA Immo’s investment portfolio increased slightly to 93.5% by the end of March, up from 93.1% at the end of 2024. Leasing activity totalled around 35,000 sqm in the quarter, with achieved rents averaging approximately 16% above estimated rental values. Around 22% of the vacant space at the reporting date has already been leased with future occupancy scheduled.

The company’s development pipeline progressed in line with expectations. Two office buildings are under construction near Berlin’s main train station—Upbeat, which is fully pre-let and on track for completion in early 2026, and Anna Lindh Haus, which broke ground in late 2024. Preparations for additional projects in central Berlin are underway, including two new developments and a refurbishment of an existing asset.

Three properties were sold in the first quarter: one office property each in Budapest and Warsaw, and a parking garage in Cologne. These sales were part of a broader capital rotation strategy aimed at focusing on core assets. Since the reporting date, CA Immo has sold its final asset in Serbia and a hotel property in Berlin, and has signed agreements to sell five additional assets, including land plots in Munich, a logistics asset in Berlin, and an office property in Vienna.

Despite these disposals, rental income rose by 7.1% to €68.5 million. This increase was attributed to gains from retained investment properties, which offset the impact of sales and asset reclassifications. Indirect expenses declined by over 21% to €8.8 million, primarily due to reduced personnel costs.

The company’s total property assets amounted to approximately €4.9 billion at the end of March, compared with €5.0 billion at year-end 2024. Investment properties represent 85% of the total, with the remainder in developments or held for sale. Germany continues to account for the largest share of the portfolio at 69%, followed by Central and Eastern Europe at 26%, and Austria at 5%.

CA Immo’s balance sheet remains strong, with an equity ratio of 42.3%, net loan-to-value (LTV) of 34.7%, and cash and deposits totaling €897.9 million. The IFRS NAV per share rose to €26.65, while EPRA NTA per share reached €32.22.

Looking ahead, the company is closely monitoring market conditions amid elevated interest rates and political uncertainty, including trade policies affecting European economic performance. CA Immo anticipates further divergence in office market performance, with central, high-quality assets expected to retain value better than peripheral or ageing stock.

The company is also exploring unsolicited interest in its CEE portfolio and may consider a full or partial exit from Austria and CEE depending on pricing and investor appetite. While no final decision has been made, CA Immo remains committed to selling assets that do not align with its long-term strategic focus.

Strategic priorities for 2025 include simplifying the business model, scaling in core markets, continuing development of income-producing assets in Berlin and Munich, maintaining financial discipline, and returning capital to shareholders. The company’s full-year FFO I target will be published with the second-quarter results.

PORR reports strong first quarter in 2025, boosted by order growth and stable earnings

PORR began the year with a solid performance, driven by a significant rise in new orders and a stable operating result. The company reported an EBIT of EUR 12.6 million for the first quarter, marking an 11.7% year-on-year increase. Total production output amounted to EUR 1.27 billion, with revenue holding steady at EUR 1.26 billion.

The order intake reached EUR 1.54 billion in the first quarter, up 17.4% compared to the same period in 2024. The order backlog grew to EUR 8.81 billion, reflecting a 4.4% increase and providing a positive outlook for the coming quarters. PORR attributes the growth primarily to new large-scale projects, particularly in Germany, where order intake in the DE segment rose by over 80%. Key projects include a school in Berlin, residential developments in several German cities, a rail link in the Czech Republic, and a hospital extension in Warsaw.

The civil engineering sector remains a central growth area, supported by investment in transportation and energy infrastructure. In building construction, demand continues in healthcare, data centres, and industrial facilities. PORR has positioned itself in these sectors as an integrated service provider.

Despite a slight decline in production volume due to seasonal conditions, core segments performed well. The AT/CH region grew by 10.4%, while the International Infrastructure segment posted a 24.9% increase. The EBIT margin improved from 0.9% to 1.0%, supported by cost controls that offset rising personnel expenses.

PORR’s equity increased to EUR 833.7 million, and the equity ratio rose slightly to 19.8%, despite hybrid capital repayment. Net debt rose to EUR 259.5 million, largely due to strategic acquisitions, including a majority stake in Germany’s Knape Bahnbau GmbH, and the repurchase of treasury shares.

The company’s stock also showed strong growth, closing at EUR 26.25 at the end of March—an increase of nearly 85% compared to the previous year. PORR’s market capitalisation reached approximately EUR 1.0 billion, and the company was awarded first place in the Mid Cap category at the Vienna Stock Exchange Prize 2025.

Looking ahead, PORR’s Executive Board expects a moderate increase in performance and earnings for the full year. The company is targeting an EBIT margin of 2.8% to 3.0% for 2025 and aims to reach 3.5% to 4.0% by 2030. While current global trade uncertainties may pose challenges, PORR believes its strategy—focused on deglobalisation, decarbonisation, digitalisation, and demographic change—positions it well for long-term resilience and growth. The company notes that further business development will depend on economic and geopolitical conditions in its key markets.

Prague Office Market: IT in Karlín, finance in city centre, manufacturing in Vysočany

The Prague office market has evolved into twelve established business districts, each shaped by the industries they attract and the pace of their development, according to the latest Prague Office Hubs 2025 report by Savills. The analysis outlines how distinct business sectors have contributed to the character and function of each location, highlighting the impact of corporate tenancy on the urban environment.

Three districts — Karlín & Invalidovna, Pankrác & Budějovická, and the City Centre — stand out for their volume of high-quality (Grade A) office space. These areas also led the city in new leasing activity between 2022 and 2024, recording the highest number of lease transactions.

From 2022 to 2024, the Technology and IT sector accounted for 23% of all net office take-up in Prague, with significant leasing activity in Karlín, Pankrác, and Holešovice. Financial companies ranked second, showing a preference for locations in the City Centre and Vinohrady. Manufacturing firms tended to lease space in districts such as Vysočany, Butovice, and Stodůlky, drawn by available floor space and logistical access.

In Radlice and Jinonice, most new leases were signed by companies in the energy and extractive sectors, while Dejvice saw a concentration of pharmaceutical and medical tenants.

Pavel Novák, Head of Office Agency at Savills, notes that location choices increasingly reflect the operational and employee needs of tenants. “Companies are no longer only looking for office space — they’re selecting environments that align with their brand and staff expectations,” he said. Factors such as district reputation, transport access, and amenities are shaping leasing decisions.

Novák also points out that the type of business in a district influences its development. “In tech-focused districts like Karlín or Holešovice, there’s been a rise in cafés and bistros catering to younger workforces. In areas with manufacturing or logistics firms, such as Vysočany or Butovice, facilities tend to prioritise parking and traditional dining options,” he added.

The report identifies Karlín & Invalidovna as the top location for new Grade A leases between 2022 and 2024, accounting for 19% of total volume, followed by Pankrác & Budějovická at 15%, and the City Centre at 14%. These areas combine strong transport links, modern buildings, and comprehensive services.

Looking ahead, new developments are likely to extend the city’s technology business zones beyond the established hubs. Areas such as Roztyly, Chodov & Opatov, Libeň & Palmovka, and Anděl & Smíchovské nádraží are emerging as potential new locations for fast-growing firms, supported by ongoing infrastructure investment and office construction.

The report concludes that Prague’s office market continues to reflect broader economic trends, with district specialisation shaping the city’s business landscape and creating diverse environments suited to a range of industries.

New section of Galeria Twierdza Kłodzko retail park opens to the Public

Galeria Twierdza Kłodzko, managed by EPP, has expanded its retail offering with the opening of a new section of its retail park on 15 May 2025. The extension adds nearly 4,200 square metres of space and was fully commercialised several weeks ahead of the opening.

The expanded tenant mix includes the regional debuts of TK Maxx and the dm drugstore chain. TK Maxx’s entry into the Kłodzko Valley is particularly notable, as the brand does not currently operate in neighbouring Czech markets. The dm drugstore also marks its first presence in the region, enhancing the centre’s health and beauty offer.

Reserved, a brand from the LPP Group, has moved into a larger space within the new section, where it has launched an expanded store concept. The former Reserved unit is scheduled to be taken over by Sinsay later in the year.

According to Magdalena Małycha, Asset Manager at EPP, the expansion supports two key strategic objectives: introducing previously unavailable brands to the region and adapting space to better suit tenant needs. She noted that the development benefits both local customers and those from neighbouring regions, including cross-border visitors.

Galeria Twierdza Kłodzko comprises more than 27,000 square metres of retail space and includes a traditional shopping centre with a Carrefour hypermarket and dining area, as well as a retail park. The complex features over 60 stores, among them CCC, H&M, Mohito, Martes Sport, Douglas, Rossmann, Apart, YES, Pandora, home&you, Leroy Merlin, and JYSK. Food and service options include KFC, Sushi dla Mnie, and Bello pizzeria. Entertainment amenities include the Kids Play interactive zone and a three-screen Multikino cinema with a combined capacity of over 750 seats.

Located near the northern bypass of Kłodzko, the centre offers approximately 1,050 parking spaces. It has also received the “Barrier-Free Facility” certification from the Integration Foundation, recognising its accessibility for individuals with reduced mobility.

Dekpol Budownictwo to construct logistics centre for Żabka near Łódź

Dekpol Budownictwo has been selected as the general contractor for a new logistics facility for the Żabka Group, to be located near Łódź. The project will be delivered under a ‘Design and Build’ contract and will cover an area of approximately 42,000 square metres.

The scope of the investment includes a high-bay warehouse, freezer and cold storage units, an automated picking area, and office and social facilities. Dekpol will also be responsible for constructing supporting infrastructure, including part of the adjacent public road.

The logistics centre will be Żabka’s ninth such facility in Poland. Its central location is intended to improve network efficiency in the region and reduce the load on existing logistics infrastructure. The new site also aligns with Żabka’s expansion plans, which include the launch of around 1,000 new outlets across the country this year.

The building is being prepared to meet BREEAM certification standards. Completion is scheduled for the second half of 2026.

Dekpol Budownictwo, part of the Dekpol Group, has operated in the Polish construction market for over three decades. The company provides general contracting services in sectors such as industrial, logistics, commercial, residential, and hospitality construction. It has operational offices in Gdańsk, Pinczyn, and Poznań, with a sales office in Gliwice.

The company also operates its own machinery fleet for earthworks and infrastructure construction and uses prefabricated elements produced at group facilities located in Pinczyn, Działdowo, Lubawa, and Toruń.

Murapol majority shareholder sells 8.16 million shares through accelerated bookbuilding

AEREF V PL Investments, the majority shareholder of residential developer Murapol, has completed the sale of 8.16 million shares through an accelerated bookbuilding (ABB) process. The final sale price was set at PLN 38 per share, the company confirmed.

The transaction was increased in size following strong interest from both domestic and international investors. As a result, the number of shares sold was raised from an initially planned 15% of the company’s share capital to 20%.

Following the completion and settlement of the transaction, AEREF V PL Investments will retain approximately 19.6 million shares, representing around 48.04% of Murapol’s share capital and voting rights.

The shareholder has committed to a 180-day lock-up period for the remaining shares, with certain exceptions outlined in the placement agreement. These include private sales conducted outside the regulated market.

Murapol is one of Poland’s largest residential developers, with a project portfolio covering more than 20 cities. The company listed on the Warsaw Stock Exchange in December 2023 and is currently part of the sWIG80 index.

Photo: Murapol Parki Krakowa

CEVA Logistics to acquire Borusan Tedarik in $440 million deal, expands presence in Turkey

CEVA Logistics, a subsidiary of the CMA CGM Group, has signed a binding agreement to acquire 100% of the shares in Borusan Tedarik Zinciri Çözümleri ve Teknoloji Anonim Şirketi, a longstanding logistics provider in Turkey. The transaction, valued at USD 440 million, remains subject to regulatory approvals and customary closing conditions.

Under the terms of the agreement, CEVA will acquire Borusan Tedarik from Borusan Holding and Borusan Yatırım, which currently hold 69.47% and 30.53% of the company’s shares respectively. The deal includes Borusan Tedarik’s subsidiaries in Germany, Bulgaria, Hong Kong, and China.

Borusan Tedarik has operated in Turkey for over five decades, offering a wide range of services including contract logistics, finished vehicle logistics (FVL), full truckload and less than truckload road transport, air and sea freight, and customs services. In 2024, the company reported gross revenues of USD 567 million. It serves both domestic firms and multinational clients.

Approximately 4,000 Borusan Tedarik employees will join CEVA as part of the acquisition. The move will strengthen CEVA’s existing footprint in Turkey across key service areas such as air, ocean, and road transport, as well as logistics and vehicle distribution services.

Following the acquisition, CEVA’s warehouse and distribution capacity in Turkey will nearly double, adding approximately 570,000 square meters to its existing 620,000 square meters of space. The expanded land transport capabilities are expected to support nearly one million domestic shipments annually. Borusan Tedarik’s established operations are also expected to reinforce CEVA’s connectivity between Turkey and European markets.

The transaction is projected to position CEVA among the top three finished vehicle logistics providers in Turkey. Additionally, CEVA’s maritime transport capacity in the country will rise by 25%, and its air freight volume will place it within the top five market operators.

CEVA’s expansion in Turkey is part of its broader growth strategy, following several global acquisitions since joining the CMA CGM Group in 2019. The company has previously acquired businesses such as Ingram Micro’s Commerce & Lifecycle Services division, GEFCO, and Bolloré Logistics, alongside multiple local deals and joint ventures.

Commenting on the agreement, CEVA Logistics CEO Mathieu Friedberg said Turkey represents a key market for the company’s long-term growth strategy. “Adding Borusan Tedarik’s operations and team to our business in Turkey enhances the value we offer to customers and supports accelerated growth in the region,” he said.

Erkan Kafadar, CEO of Borusan Group, noted the significance of the transaction for both the company and Turkey. “Transferring Borusan Tedarik, which began as an internal logistics provider over 50 years ago, to a global logistics group reflects strong international interest in the Turkish market,” he stated. “We will continue to pursue new investments aligned with our portfolio strategy to support economic and social development.”

The acquisition reinforces CEVA’s regional and global position as it continues to expand its logistics operations in line with evolving market demands.

YIT completes shell construction of Tampere apartment building in Prague’s Suomi Hloubětín project

YIT has completed the structural phase of the tenth stage of its Suomi Hloubětín residential development in Prague 9. The newly built apartment building, known as Tampere, includes 68 residential units and five ground-floor commercial spaces. Completion of the building is expected by the end of 2025, with residents anticipated to move in during the first half of 2026.

The rough construction includes the building’s load-bearing framework, roofs, and exterior walls. Current work focuses on internal systems such as electrical wiring, plumbing, and sewage infrastructure. Interior finishing, including plastering, is also underway.

Tampere represents the penultimate stage of the Suomi Hloubětín project. The final phase, Rosala, is set to follow. YIT also plans to complete the nearby Lappi Hloubětín development, which will introduce further amenities to the area, including a supermarket.

The Tampere building offers apartments ranging in size from 35 to 104 square meters, with layouts from 1+kk to 4+kk. All units include either a balcony or terrace. The development includes features such as triple-glazed windows, preparation for external blinds, and indoor monitors for door entry. Some apartments are pre-fitted for air conditioning. Parking will be provided in underground garages—equipped with charging stations for electric vehicles—as well as outdoor spaces. Additional facilities include cellars, storage rooms, a pram room, a bike and dog wash station, and a large lobby.

Located at the end of a redesigned central square, the building’s commercial spaces will face the square. The architecture comprises a 13-story high-rise section and a connected four-story wing, with two underground levels beneath the entire structure.

The development prioritizes environmental considerations. Construction uses green concrete containing recycled materials, while efforts are made to minimize and monitor waste. Certified environmentally friendly materials are being used, and energy-efficient LED lighting will be installed in common areas. Planned environmental features include green roofs, habitats for birds and insects, and rainwater management systems designed to reuse nearly all captured rainfall for irrigation.

Situated at the boundary of Vysočany and Hloubětín, the site benefits from strong transport links. A tram stop is located directly next to the complex, and nearby metro stations provide easy access to the rest of Prague. The Prague Ring Road is also easily accessible for drivers. The area includes a variety of services such as shops, medical facilities, schools, and recreational amenities, many of which were developed during earlier phases. The nearby Rokytka River and adjacent park offer green spaces and cycling paths, contributing to the area’s appeal for future residents.

Gulf Cooperation Counci inflation remains stable amid global economic volatility

Inflation across the Gulf Cooperation Council (GCC) countries remained largely contained in the first quarter of 2025, despite ongoing global trade disruptions and inflationary concerns in other regions. According to the latest GCC Inflation Update by Kamco Invest, only Saudi Arabia and the United Arab Emirates recorded annual inflation rates exceeding 2% as of March 2025, reinforcing the region’s relative price stability.

The report highlights that while global inflation pressures are easing—supported by stabilizing energy prices, supply chains, and diplomatic breakthroughs in trade—the GCC’s subdued inflation is further anchored by currency pegs to the US dollar and government subsidies in essential sectors like food, housing, and energy.

GCC vs. Global Trends

Compared to broader trends across the Middle East and North Africa (MENA), where average inflation remains significantly higher, the GCC bloc is expected to maintain its disinflationary trajectory through 2025. However, Kamco Invest warns that protectionist trade policies—particularly recently introduced US tariffs—pose risks that could reintroduce upward pressure on prices, particularly in import-dependent economies.

In the United States, inflation eased slightly to 2.3% in April 2025, aided by postponed tariffs and declining service sector price growth. The Eurozone recorded steady inflation at 2.2%, but core inflation rose to 2.7%, indicating continued pressure in goods and services. A similar pattern is visible in the GCC, where inflation data reflects stable price levels but sectoral variations remain.

Country-Specific Highlights
• Kuwait reported an annual inflation rate of 2.3% in April 2025. Key drivers included a 4.6% rise in food and a 4.9% increase in services and miscellaneous goods. Transport costs fell 1.1% year-on-year, helping to moderate overall inflation. Monthly inflation growth was a modest 0.1%.
• Saudi Arabia saw inflation rise to 2.3%, primarily driven by an 8.1% increase in housing-related expenses, notably apartment rents, which jumped nearly 12% year-on-year. Meanwhile, prices for furniture, clothing, and transportation declined.
• United Arab Emirates (Dubai) recorded inflation at 2.3% in April, down from 2.8% in March. The housing group saw a sharp 7% increase, while transport prices declined by 7.6% year-on-year. The IMF projects UAE inflation to average 2.1% in 2025.
• Qatar reported one of the lowest inflation rates at just 0.3% year-on-year in March 2025. Price declines in housing and food offset increases in communication and education. The monthly inflation rate declined by 0.8%.
• Bahrain experienced near-zero inflation at 0.1% in March, making it the lowest among GCC peers. Price drops in housing, recreation, and food were only partially offset by rising communications costs. The IMF expects Bahrain’s inflation to average just 1.0% in 2025.
• Oman recorded 0.5% inflation in March 2025, with notable declines in food prices, especially vegetables and seafood. On a monthly basis, Oman’s CPI fell by 0.4%, supported by ongoing fiscal discipline and rising non-oil exports.

Outlook and Policy Trends

The report underscores that while inflation is a key driver of monetary policy, recent trade tensions could disrupt global expectations. Although both the US Federal Reserve and the European Central Bank had initiated rate cuts in early 2025 in response to softening inflation, uncertainty around global tariffs could delay further easing. While the Fed has kept interest rates steady at 4.25–4.5%, the ECB reduced its rates in April to stimulate demand in a sluggish Eurozone economy.

In the context of food prices, the FAO Food Price Index rose by 1.0% year-on-year in April, though it remains substantially below 2022 peaks. A decline in palm oil prices, due to seasonal factors and increased exports from Southeast Asia, played a key role in moderating global food price pressures.

Regional Inflation Forecasts

Kamco Invest projects that inflation across the GCC will average 1.9% in 2025, consistent with 2024 levels. This compares favorably with the broader Arab world, where inflation is forecasted to drop from 11.4% in 2024 to 7.7% in 2025. Within the GCC, Bahrain, Qatar, and Oman are expected to maintain the lowest inflation rates, ranging from 1.0% to 1.5%.

Conclusion

The report concludes that while inflation in the GCC remains under control for now, external factors—particularly trade frictions and potential shifts in energy prices—will need close monitoring. Policymakers are expected to maintain a cautious stance, balancing the need for economic stimulus with long-term price stability objectives. For now, GCC economies continue to benefit from their relative insulation from global inflationary shocks, a trend that could prove vital amid an increasingly uncertain international environment.

Cheaper mortgages drive return of young buyers, fuel real estate recovery in Slovakia

After a period of stagnation in 2022 and 2023, Slovakia’s housing market is showing clear signs of recovery, driven primarily by falling interest rates and renewed interest from young buyers. According to analysts, the return of buyers under 35 is helping to usher in a new phase of residential real estate activity.

The revival comes as mortgage interest rates continue to decline. Figures from the National Bank of Slovakia show that the average mortgage rate dropped to 3.7 percent in March, with some banks offering rates as low as 3.2 percent. This marks a notable improvement from the 4.2 percent average seen a year earlier.

This shift in financing conditions has translated into a sharp increase in loan activity. In the first quarter of 2025 alone, Slovak banks issued €1.3 billion in new mortgages – a 53 percent increase compared to the same period in 2024. Notably, this figure excludes refinancing, underscoring the strength of new lending and its influence on market demand.

Banks are responding to the renewed interest by simplifying and accelerating the loan approval process, creating a more accessible environment for first-time buyers. As a result, activity among younger clients is on the rise.

“We’re seeing more interest from young people looking to purchase their first home,” said Zuzana Klačanová, owner of UPgreat HOME real estate agency. “Lower mortgage rates have made financing viable for many who were previously excluded from the market.”

These buyers are typically seeking smaller, more affordable homes—such as one- or two-room flats or compact family houses. In contrast to wealthier segments of the market, their purchasing decisions are driven by practical considerations and a need for predictable, long-term affordability.

While demand for larger properties remains subdued, real estate experts expect that could change later in the year if rates continue to stabilise and income levels improve.

However, the positive outlook is tempered by a number of ongoing challenges. Demographic trends point to a shrinking pool of younger buyers over the long term, meaning the current surge in demand may reflect delayed purchases rather than sustained growth.

Another major obstacle is the continued rise in housing prices. The average price of apartments rose by 11.4 percent year-on-year to reach a record €3,041 per square metre, according to NBS data. This increase threatens to outpace the financial capacity of first-time buyers, particularly those without significant savings.

Michal Kremnický, CEO of Finvia Holding, warned that the market could become increasingly dominated by older buyers. “Those in the 35 to 45 age group have more stable incomes, stronger credit profiles, and often apply jointly with a partner. Their preparedness will allow them to remain the driving force behind demand,” he noted.

One notable trend in early 2025 is the growing preference for older apartments over new-builds. Older flats saw a price increase of 6 percent compared to just 3.4 percent for new constructions. This indicates a shift in buyer behaviour toward quicker transactions and properties located in well-established urban areas with existing infrastructure.

“There is a clear preference for affordability,” said Vladimír Kubrický, analyst at the Real Estate Union of the Slovak Republic. “Even buyers with sufficient means often choose older apartments because they offer better value and location benefits.”

Kubrický added that while interest rates may continue to fall modestly, significant further reductions are unlikely. Only smaller banks competing for market share may offer below-average rates.

Although developers and sellers are benefiting from the market’s renewed momentum, the outlook remains cautious. Any sustained revival will hinge on maintaining credit accessibility and curbing the pace of price increases. At the same time, demographic pressures and limited affordable supply may constrain long-term growth.

For now, however, young buyers are once again active in the market, reshaping demand and prompting new considerations for both developers and financial institutions. Whether this momentum can be sustained will depend on how the market adapts to evolving economic and social conditions in the months ahead.

Source: Trend.sk
Photo: ZWIRN, YIT

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