Inmobiliaria Colonial SOCIMI (COL) Q2 2024 earnings summary

Executive summary

• Prime office assets in Paris, Madrid, and Barcelona delivered strong operational and financial results in H1 2024, with high occupancy and robust rental growth, outperforming broader office markets due to scarcity of top-quality supply and strong demand.

• Net profit reached €86 million in H1 2024, up 125% year-over-year, with recurring net profit at €92 million, up 6% year-over-year, driven by rental growth and asset revaluation.

• Asset values stabilized and showed slight growth, reversing the trend from 2023, with a 1% like-for-like increase in Gross Asset Value to €11,267 million.

• Strategic focus on prime assets led to value creation through urban transformation, including the launch of the Alpha X project pipeline and new mixed-use developments.

• Major contracts signed for 65,972 sqm, with Paris achieving 100% occupancy and Madrid at 96%.

Financial highlights

• Gross rental income rose to €192 million for H1 2024, up 6.5% like-for-like and 5% year-over-year; Paris +7% like-for-like, Barcelona +9% like-for-like.

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

• Net tangible assets (NTA) per share at €9.66 post-dividend; pro forma NTA post-Alpha X transaction at €9.3 per share.

• Gross asset value (GAV) at €11.3 billion, up 0.7% like-for-like from December 2023.

• Loan-to-value (LTV) improved to 36.7% post-Alpha X, with net debt reduced by €350 million to €4,542 million.

• Average cost of debt remains low at 1.74%, with 100% of debt fixed or hedged for the next four years.

Outlook and guidance

• EPS guidance for 2024 confirmed at €0.30–€0.32 per share, with acceleration toward the upper range due to strong H1 performance.

• Capital increase of €622 million under the Alpha X program to fund new investments and support growth strategy.

• Continued focus on prime assets, urban transformation, and mixed-use developments to drive future growth.

• Disposal program remains a priority but will be more selective and aligned with market conditions.