Inmobiliaria Colonial SOCIMI (COL) Q2 2024 earnings summary

Executive summary

• Prime office assets in Paris, Madrid, and Barcelona delivered strong operational and financial outperformance, with high occupancy and rental growth driven by scarcity of top-quality supply and robust demand for premium locations.

• Recurring net profit rose 6% year-over-year to €92 million, with net profit up 125% to €86 million, driven by strong rental income and asset revaluation.

• Gross rental income reached €192 million, up 6.5% like-for-like, supported by 97% occupancy and prime asset positioning.

• Asset values stabilized, showing a 1% like-for-like increase in Gross Asset Value (GAV) to €11,267 million.

• Launch of Alpha X urban transformation pipeline and €622 million capital increase position the group for further value creation and organic growth.

Financial highlights

• Gross rental income for H1 2024 was €192 million, up 6.5% like-for-like and 5% year-over-year.

• EPRA earnings grew 6% to €92 million; EPRA EPS increased 6% to €0.17 per share.

• Net tangible assets per share at €9.66 pre-transaction, €9.3 post-transaction.

• Gross asset value stabilized at €11.3 billion (+0.7% like-for-like), with disposals totaling €201 million at an 11% premium to appraisals.

• Loan-to-value improved to 36.7% post-capital increase, with net debt reduced by €350 million.

Outlook and guidance

• EPS guidance for 2024 confirmed at €0.30–€0.32 per share, with performance trending toward the upper end.

• Alpha X project pipeline targets €380 million capex, >9% IRR, and €64 million in additional annual rents.

• Capital increase strengthens financial flexibility and supports growth strategy.

• Disposal program continues but will be more selective, adapting to market conditions and value stabilization.