Stock Markets February 26, 2026

CTP NV Falls Short of 2025 EPS Guidance, Shifts to Interest Capitalization Policy

Adjusted EPRA earnings rise, but EPS misses guidance as some developments roll into 2026; company sets new accounting approach for interest and issues 2026 EPS outlook

By Avery Klein
CTP NV Falls Short of 2025 EPS Guidance, Shifts to Interest Capitalization Policy

CTP NV reported adjusted EPRA earnings of €405 million for 2025, an 11% increase year-over-year, but posted earnings per share of €0.85, missing the company’s guidance range of €0.86 to €0.88. The shortfall was attributed to development completions that moved into the first quarter of 2026. The group announced it will begin capitalizing interest at its average cost of debt from 2026 and provided 2026 EPS guidance of €1.01 to €1.03 per share, implying 9% to 11% underlying growth. Key operational and balance-sheet metrics—gross rental income, occupancy, portfolio value, and leverage ratios—were also reported.

Key Points

  • Adjusted EPRA earnings rose to €405 million in 2025, an 11% year-over-year increase, while EPS of €0.85 missed the company's guidance range of €0.86 to €0.88.
  • CTP will start capitalizing interest at its average cost of debt from 2026 and issued 2026 EPS guidance of €1.01 to €1.03 per share, implying 9% to 11% underlying growth.
  • Operationally, gross rental income increased to €760 million (up 14.4% year-over-year), occupancy held at 93%, and the portfolio grew to €18.5 billion with EPRA NTA rising to €20.39 per share.

CTP NV reported adjusted EPRA earnings of €405 million for 2025, reflecting an 11% increase versus the prior year. Despite that top-line EPRA gain, the company’s earnings per share came in at €0.85, below management’s previously stated guidance band of €0.86 to €0.88. The firm said the variance was driven by development completions that shifted into the first quarter of 2026.

Operational delivery in 2025 totaled 1,325,000 square meters, produced at a 10.4% yield on cost. The company noted this delivery figure fell below its initial guidance range of 1.3 million to 1.6 million square meters. Pre-letting momentum softened late in the year, with the pre-letting ratio slipping to 79% in the fourth quarter, while the overall letting ratio for properties delivered during the period stood at 88%.

One notable accounting change announced alongside the results is that, beginning in 2026, CTP will capitalize interest expenses at its average cost of debt. The company also issued earnings guidance for 2026 of €1.01 to €1.03 per share, which it characterized as equivalent to 9% to 11% underlying growth relative to 2025.


Revenue and portfolio metrics

Gross rental income rose to €760 million in 2025, an increase of 14.4% year-over-year. On a like-for-like basis, rental income grew by 4.5%, and the company is projecting approximately 4% like-for-like growth for 2026. Occupancy across CTP's portfolio remained steady at 93% at year-end.

Lease activity was robust in absolute terms: CTP signed leases covering 2,325,000 square meters during 2025, a 10% increase from the 2,113,000 square meters recorded in 2024. The group’s reversionary potential was reported at 14.1%, compared with 13.7% in the nine-month period and 14.9% in the first half of 2025.

CTP's total portfolio value increased by 16% year-over-year, reaching €18.5 billion. Net revaluation gains amounted to €1,139 million, and valuations rose 4.4% like-for-like. The group's EPRA net tangible assets per share climbed 12.8% to €20.39, up from €18.08 in 2024.


Development pipeline, land bank and delivery plans

At the end of 2025, CTP reported 2 million square meters under construction, with projects targeting a 10% yield on cost. The company’s land bank expanded to 33.8 million square meters, up from 26.4 million square meters in 2024. For 2026, management plans to deliver between 1.4 million and 1.7 million square meters.


Leverage and interest metrics

CTP's reported loan-to-value ratio was 46.1%, marginally above the group’s internal target of 45% and higher than the 45.3% recorded in 2024. The interest coverage ratio was reported at 2.5 times. Normalized net debt to EBITDA rose to 9.3 times, from 9.1 times in 2024. The company’s average cost of debt increased to 3.3%, up from 3.1% a year earlier.


Capital return

CTP will recommend a dividend of €0.63 per share for 2025, a 7% increase year-over-year according to the figures provided.

The company’s financial results combine growth in key rental and valuation metrics with modest deterioration in some delivery and pre-letting measures. In addition to operational results, management’s decision to capitalize interest from 2026 represents a notable accounting policy update that will affect how financing costs are reflected in future project returns and reported earnings.

Risks

  • Development timing risk - several development completions shifted into Q1 2026 and contributed to the 2025 EPS miss, indicating sensitivity of reported earnings to delivery schedules.
  • Pre-letting and letting risk - the pre-letting ratio declined to 79% in Q4, which could affect near-term cashflow and leasing assumptions for newly delivered assets.
  • Leverage and interest rate pressure - loan-to-value rose to 46.1% and normalized net debt to EBITDA increased to 9.3 times while the average cost of debt rose to 3.3%, exposing the company to refinancing and interest-cost volatility.

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