CPI PROPERTY GROUP – Year-End Message

CPI Property Group
(société anonyme)
40, rue de la Vallée
L-2661 Luxembourg
R.C.S. Luxembourg: B 102 254

Press Release – Corporate News

Luxembourg, 31 December 2025

CPI PROPERTY GROUP – Year-End Message

CPI Property Group (“CPIPG” or, together with our subsidiaries, the “Group”) has prepared the following update for our stakeholders on recent developments and our outlook for 2026.

Real estate market improving
CPIPG sees a positive backdrop for major CEE real estate markets during 2026, following a modest recovery in 2025. Rents and occupancy are generally stable across the CEE region. Retail properties continue to perform well, office sentiment has improved, and construction activity is limited. Appetite for residential properties is exceptionally strong, benefiting landlords and developers. Secured financing is plentiful and pricing margins continue to decline, while unsecured bond markets have fully reopened.

Update on disposals and investments
In 2025, CPIPG continued recalibrating our portfolio to focus on our best income-generating properties and development opportunities. Our activities have primarily centered on sales of non-core and low-yielding assets, but the Group has also invested to ensure that our portfolio is well-positioned for the future.

CPIPG exceeded our €1 billion disposal target in 2025, achieving €1.1 billion of gross sales proceeds across office, retail, land, hotels and residential assets in Austria, Germany, Hungary, Slovakia, Romania, the Czech Republic, Poland, Italy and the UK. Almost 30% of the property portfolio sold by the Group was non-yielding, including land plots and development sites in the Czech Republic, Romania, Italy, and the UK.

Sales of non-yielding assets are expected to continue. In late December, the Group established a 50/50 joint venture with Dušan Palcr, a founder of J&T Real Estate, relating to our Bubny landbank in Prague. The joint venture acquired the land at book value and will bring additional capital, expertise and perspective to the long-term goal of realising the huge potential of the Bubny site.

Another €65 million of disposals are signed and are expected to close in early 2026. In addition, more than €600 million of disposals (including three transactions of more than €100 million) have signed letters of intent including assets in the Czech Republic, Poland, Italy and the UK. Therefore, CPIPG sees disposals in the range of €500 to €750 million for 2026. Notably, CPIPG believes that sales from residential developments in Dubai and the Czech Republic could alone generate nearly €750 million of disposal proceeds between 2026 and 2028.

While the Group continues to use proceeds from disposals to repay debt, in 2025 CPIPG also engaged in proactive asset rotation. In total, the Group invested about €350 million in office, retail, residential land for development and energy assets across the Czech Republic, Germany, Italy, and Serbia.

Capital structure matters
On 23 December 2025, Moody’s Investors Service (“Moody’s”) lowered CPIPG’s rating from Ba1 to Ba2 with a stable outlook. The primary reason for the rating change was the Group’s interest coverage ratio (ICR) and the expected timeframe for improvement. Other key rating metrics, including leverage and liquidity, improved while Moody’s noted positive operational performance and the Group’s potential to achieve a higher rating.

CPIPG sees three effective ways to address the Group’s ICR. First, through disposals and debt repayment, prioritising non-yielding assets and higher cost debt wherever possible. Second, through reinvestment in our yielding portfolio, residential development sales and selective acquisitions to increase profitability and cash generation. Third, by optimising operations and overhead costs. The Group anticipates that 2026 and 2027 will be important years for achieving meaningful improvement in the ICR and strengthening our credit ratings.

The Group has €378 million of debt maturing in 2026, the majority of which is secured, and the Group’s next notable unsecured bond maturity is in April 2027 (€317 million). While the Group is confident that secured debt will continue to be rolled over with relative ease, and disposals and deleveraging are expected to continue, liquidity at year-end can cover nearly 18 months of all debt maturities and 36 months of unsecured debt maturities.

CPIPG plans to continue proactively repaying and extending maturities wherever possible, maintaining our prudent and bondholder friendly stance on both senior and hybrid bonds. In December 2025, the Group repaid €70 million of Schuldschein loans maturing in 2026.

Distributions
On 5 December, CPIPG’s board of directors approved a change to the Group’s distribution policy. Going forward, CPIPG will set a maximum limit for shareholder distributions via annual share buybacks at 50% of the most recently reported full-year FFO1, a reduction from the 65% target set in 2021.

CPIPG decided not to proceed with distributions in 2025 and instead plans to make one buyback in early Q1 2026, at a level below the 50% target.

For further information, please contact:

Investor Relations

Moritz Mayer
Manager, Capital Markets
m.mayer@cpipg.com

For more on CPI Property Group, visit our website: www.cpipg.com
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Disclaimer: This communication contains certain forward-looking statements with respect to the financial condition, results of operations and business of CPIPG. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “targets”, “may”, “aims”, “likely”, “would”, “could”, “can have”, “will” or “should” or, in each case, their negative or other variations or comparable terminology. Forward-looking statements may and often do differ materially from actual results. CPIPG’s business is subject to a number of risks and uncertainties that could also cause a forward-looking statement, estimate or prediction to differ materially from those expressed or implied by the forward-looking statements contained in this communication. The information, opinions and forward-looking statements contained in this communication speak only as at its date and are subject to change without notice. As a result, undue influence should not be placed on any forward-looking statement.