CTP N.V.: Capitalizing on European Logistics Demand with Strong H1 2025 Performance

The European logistics real estate sector is undergoing a structural transformation, driven by the relentless growth of e-commerce, the reconfiguration of global supply chains, and the urgent need for climate-resilient infrastructure. At the heart of this shift stands CTP N.V., a Dutch real estate company that has consistently demonstrated its ability to align operational excellence with macroeconomic tailwinds. The company's first-half 2025 results underscore its strategic positioning, with robust asset valuation growth, occupancy resilience, and a disciplined delivery pipeline reinforcing its status as a prime beneficiary of the long-term logistics boom.

Asset Valuation Growth: A Reflection of Market Confidence

CTP's H1 2025 performance reveals a compelling narrative of value creation. Gross Rental Income surged by 14.4% year-over-year to €367.2 million, with like-for-like rental growth of 4.9% driven by indexation and lease renegotiations. This outperformance is not accidental but a product of CTP's tenant-centric approach, which prioritizes long-term partnerships and flexible space solutions. The 5% year-over-year increase in average monthly rent for new leases further highlights the company's pricing power in a sector where demand for high-quality logistics assets remains outstripping supply.

The company's Net Tangible Asset (NTA) growth is equally impressive. With a landbank of 26.1 million square meters—58% in existing parks and 31% in or adjacent to new parks—CTP has the raw material to sustain double-digit NTA growth through the decade. This landbank, combined with an industry-leading yield on cost (YoC) of 10.3% for completed developments, positions CTP to capitalize on Europe's premium for modern, energy-efficient logistics assets.

Occupancy Resilience: A Testament to Operational Discipline

Occupancy rates of 93% in H1 2025, matched by a 99.7% rent collection rate, speak volumes about CTP's operational discipline. In an era of economic uncertainty, such metrics are not merely defensive—they are offensive. The 85% client retention rate, while slightly lower than the previous year's 87%, remains exceptional in a sector where tenant churn can erode margins. This resilience is underpinned by CTP's diversified tenant base, where no single entity accounts for more than 2.5% of annual rent.

The weighted average unexpired lease term (WAULT) of 6.2 years provides a buffer against cyclical volatility, ensuring a stable cash flow stream. This is particularly critical in a low-interest-rate environment, where long-dated cash flows are increasingly valued. CTP's ability to secure 53% pre-leasing for 2025 deliveries—up from 35% in FY-2024—further demonstrates its capacity to lock in demand ahead of construction, reducing exposure to market fluctuations.

Strategic Delivery Pipelines: Building for the Future

CTP's development pipeline is a masterclass in strategic foresight. The 2.0 million square meters of gross leasable area (GLA) under construction, with an expected YoC of 10.3%, will generate €160 million in contracted rental income when fully leased. Notably, 79% of these projects are located in existing parks, leveraging CTP's established infrastructure to accelerate returns. The remaining 9% in new parks, however, are equally significant: these sites have the potential to expand into over 100,000 square meters of GLA, creating new hubs for logistics activity in underserved regions.

The company's in-house construction expertise and tenant-led development model further enhance its competitive edge. By aligning development timelines with tenant needs, CTP minimizes idle periods and ensures that assets are optimized for current and future demand. This agility is crucial in a sector where technological advancements—such as automation and last-mile delivery solutions—continuously redefine requirements.

Investment Implications: A Prime Position in a Structural Trend

For investors, CTP N.V. represents a rare combination of defensive qualities and growth potential. The company's disciplined capital allocation, coupled with its ability to generate consistent cash flows and high YoC, makes it a compelling addition to portfolios seeking exposure to the European logistics boom. The strategic landbank and strong delivery pipeline provide a clear path to NTA growth, while the diversified tenant base and long WAULT offer downside protection.

In a market where asset managers are increasingly prioritizing sustainability and resilience, CTP's focus on energy-efficient developments and climate-ready infrastructure adds another layer of appeal. The company's ability to adapt to regulatory shifts—such as the EU's Green Deal—while maintaining profitability underscores its long-term viability.

Conclusion: A Model for the New Normal

CTP N.V.'s H1 2025 results are more than a quarterly update; they are a blueprint for success in the new normal of global supply chains. By leveraging asset valuation growth, occupancy resilience, and a strategic delivery pipeline, the company has positioned itself as a prime beneficiary of the European logistics tailwind. For investors with a medium- to long-term horizon, CTP offers a rare opportunity to participate in a sector that is not only growing but redefining the rules of value creation. In an era of uncertainty, such clarity of vision and execution is invaluable.