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  "documentTitle": "CPI Property Group (CPIPGR)",
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  "authorName": "Muddy Waters Research",
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  "presentationDate": "2024-01-22 00:00:00",
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  "notes": "This slide serves as an introduction to 'Part 2' of the activist report, focusing on asset valuation and occupancy discrepancies.",
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      "text": "We show that CPI PG seems to significantly inflate the reported vacancy rates in its Prague and Warsaw office portfolios, which seemingly is used to justify inflated asset values.",
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      "text": "investment property value: €19.2 billion",
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      "text": "As illustrated by the preceding slide on the Berlin portfolio, we believe the overvaluation issues are far more pervasive than just these properties. We selected these properties because assessing whether, and to what extent, they are overvalued is significantly less subjective than with most of the rest of the portfolio. Three of these properties are land that was undeveloped at the time CPI PG took seemingly egregious gains. Additionally, one building in Berlin for which CPI PG has doubled the carrying value stands out as an obvious overstatement because the capex CPI PG has invested pales in comparison.",
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      "kind": "paragraph",
      "text": "Muddy Waters is short the credit of CPI Property Group (\"CPI PG\"). As shown on the preceding slide, CPI PG's Berlin office portfolio appears significantly overvalued based on the divergence in its valuation from overall German market trends. This Part 2 addresses CPI PG's valuations of its purported €19.2 billion investment properties and hotels is significantly inflated. We show that CPI PG seems to significantly inflate the reported vacancy rates in its Prague and Warsaw office portfolios, which seemingly is used to justify inflated asset values. To illustrate the brazenness of CPI PG's valuation results and techniques, this report focuses on four granular examples of properties that CPI PG carries at a combined value of €627 million.",
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      "text": "We also show that CPI PG seems to significantly mislead investors about the states of its Prague and Warsaw occupancy levels. Prague and Warsaw purportedly have the highest and third highest occupancy levels in its office portfolios. These apparent overstatements imply that the valuations for properties in these markets (€2.8 billion) are inflated.",
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      "text": "4 CPI PG H1 2023 Management Report, Pg. 16.",
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      "text": "CPI Property Group S.A.",
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