Inmobiliaria Colonial SOCIMI (COL) investor relations material

Strategic positioning and market outlook

• Positioned as a dominant pan-European platform in prime city center office assets, focusing on Paris, Madrid, and Barcelona, with a €12 billion portfolio and 96% of assets in city centers.

• Urbanization, talent concentration, and polarization trends in European cities drive demand for Grade A office space, with chronic supply shortages and high entry barriers supporting rental growth and value creation.

• Active management and urban transformation projects, including mixed-use, healthcare, and student housing developments, enhance returns and flexibility.

• Expansion into new European gateway cities, such as Germany, is considered to widen the opportunity set and maintain high return standards.

• Maintains a dominant position in trophy assets, especially in Paris CBD, leveraging a proven track record in large-scale urban transformation and attracting top-tier clients.

Business model and operational execution

• Operates on three strategic pillars: proactive management of prime assets, value creation through Alpha X projects, and disciplined capital recycling.

• Consistent above-market and above-inflation rental growth, with landmark projects like Madnum and Velázquez demonstrating successful urban transformation.

• Portfolio is nearly fully occupied, diversified, and designed for evolving occupier needs, emphasizing large, flexible floorplates and sustainability certifications.

• Capital recycling strategy includes over €3 billion in disposals and €5 billion in prime acquisitions since 2015, focusing on non-core assets and capital-light investment structures.

• Embedded growth to be unlocked through occupancy ramp-up, project deliveries, and targeted disposals and acquisitions over the next three years.

Financial discipline and capital allocation

• Strong financial track record: EBITDA doubled and EPS nearly tripled over the past decade, with leverage maintained within investment-grade boundaries (BBB+ S&P, Baa1 Moody’s, Group LTV 37%).

• Liquidity covers maturities through 2029, with a low average cost of debt (1.9%) and 100% of net debt fixed or hedged in the near term.

• Capital allocation framework prioritizes recycling, financial discipline, and shareholder remuneration, with clear hurdle rates for new investments (7-10% unlevered IRR depending on risk profile).

• Deleveraging trend continues, with loan-to-value ratios below internal and rating agency thresholds, and further reductions expected.

• Shareholder returns supported by progressive dividends, share buybacks, and a transparent policy balancing reinvestment and capital returns.