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  "docSlug": "3112e2e7b808",
  "documentTitle": "CPI Property Group (CPIPGR)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Muddy Waters Research",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-01-22 00:00:00",
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  "notes": "The slide uses a specific asset to illustrate a broader thesis of accounting manipulation.",
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      "kind": "callout",
      "text": "Reuchlinstraße 10-11 seems to be a prime example of how CPI PG manipulates its Berlin office portfolio valuations.",
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      "kind": "image",
      "text": "Reuchlinstraße 10-11, Rest-West",
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      "text": "valuation gain: €87 million",
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      "text": "Reuchlinstraße 10-11 nearly doubled in reported value between June 2018 and December 2021; however, we find no plausible explanation for the dramatic increase in value. Our investigators found the complex in a state of disrepair, implying that is has not even been maintained properly, let alone improved. Notably, there has been no expansion of gross lettable area.",
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      "text": "CPI PG seems to have taken obvious improper fair value gains on at least one office property in its Berlin portfolio. Several other German properties' valuations also produced red flags associated with their condition, vacancies, and/or aggressive timing of new gains and lack of negative adjustments as the property market cools; however, assessing overvaluations on these is more subjective in our view.",
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      "kind": "paragraph",
      "text": "As shown supra, while German office property valuations have declined -10% since mid-2022, CPI PG's Berlin office valuations remain unchanged. Reuchlinstraße 10-11 seems to be a prime example of how CPI PG manipulates its Berlin office portfolio valuations.",
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      "text": "At Reuchlinstraße 10-11, we identify ~€87 million, or ~84% of the property's valuation gains recent, as seemingly unjustified. We arrive at this figure after deducting reasonable local gains from the total valuation gain over the same period.",
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      "kind": "source-note",
      "text": "Below: From CPI PG's 1H 2023 Interim Report",
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      "kind": "title",
      "text": "Reuchlinstraße 10-11 Overview",
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      "evidence": "The deck presents detailed critiques of specific assets, including Reuchlinstraße 10-11, Prague & Warsaw Office Vacancies, and Berlin's Vacancy Issues.",
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