CPI Group - comment

CPI’s cost of debt has risen, like everyone else’s. Despite a 250bp rise of the 2.75% coupon on the SUNs that are being called, the private placement yield is below the EPRA topped-up net initial yield of 5.6% on CPI’s property portfolio.

We estimate the addition to the 4.75% 2030 SUNs was placed at around 5.5%. The Suns fell 2 points last week before trading back to a mid-price of 98c€.