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.

• Net profit reached €86m in H1 2024, up 125% year-over-year, with recurring net profit at €92m, up 6% year-over-year.

• Asset values stabilized, showing a 0.7% like-for-like increase, and the gross asset value stands at €11.3 billion.

• The company executed €200m+ in disposals at an 11% premium to appraisal and completed a €622m capital increase, reducing loan-to-value to 36.7%.

• Launch of Alpha X urban transformation pipeline and new mixed-use developments position the group for further value creation and organic growth.

Financial highlights

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

• EPRA earnings grew 6% to €92m; 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 €11.3bn (+0.7% LFL), with disposals totaling €200m at an 11% premium to appraisals.

• Loan-to-value improved to 36.7% post Alpha X, with net debt reduced by €350m–€500m in six months.

Outlook and guidance

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

• Focus remains on prime assets, urban transformation, and mixed-use developments to drive organic growth.

• Disposal program continues, aligned with the real estate cycle and value stabilization.

• Alpha X project pipeline of 110,000 sqm with €380m capex and expected ungeared IRR >9%.