Inmobiliaria Colonial SOCIMI (COL) Q2 2025 earnings summary

Executive summary

• Attributable net profit for H1 2025 reached €249m, a 190% increase year-over-year, with EPRA Earnings up 17% to €107m, driven by strong rental growth and operational efficiency.

• Prime asset focus and urban transformation drive sustained cash flow and value growth, with robust performance in Paris, Madrid, and Barcelona.

• Major strategic moves include the merger with SFL, now in final regulatory stages, and the launch of a pan-European Science & Innovation platform with Stoneshield Capital.

• Market recovery is evident in transaction activity and capital values, especially in Paris, Madrid, and Barcelona.

• Office demand for high-quality, centrally located space is rising, while supply is shrinking due to conversions to residential, supporting rental growth.

Financial highlights

• Net rental income up 6% like-for-like year-over-year to €181m; EPRA earnings up 17% to €107m; EPRA EPS at €0.171 for H1 2025.

• Gross asset value up 5% year-over-year to €11,860m (+4% like-for-like); net tangible assets up 15% to €6,025m (€9.60/share).

• Rental growth: 7% in Paris, 9% in Madrid, 3% in Barcelona; group release spread 9%, 20% in Paris.

• Occupancy stable at 95%; like-for-like valuation growth 4% year-on-year, led by Madrid at 6%.

• Capital increase of 16% last year to support growth strategy.

Outlook and guidance

• Annual recurring EPRA EPS guidance confirmed at €0.32–0.35 per share, with confidence toward the upper end.

• Future growth to be driven by urban transformation projects, prime asset reversion, science and innovation initiatives, and capital recycling.

• Over €150 million in future rents expected from pipeline and reversion; short-term EPRA EPS to remain in guided range.

• Double-digit IRRs targeted for urban transformation and science & innovation projects.

• Asset value growth anticipated to continue as market conditions stabilize.