Inmobiliaria Colonial SOCIMI (COL) Q3 2024 earnings summary

Executive summary

• Prime office assets in Paris, Madrid, and Barcelona delivered strong performance, with high demand, tight supply, and full occupancy in premium locations, driving rental growth and robust results.

• Recurring net profit and EPRA earnings rose 15% year-over-year to €147m, with net profit reaching €156m, a €455m improvement from the previous year.

• Gross rental income increased to €293m, up 6.5% like-for-like, among the highest sector growth rates.

• The company’s strategy focuses on urban transformation, mixed-use projects, and ESG leadership.

• Expects to exceed the upper range of 2024 EPS guidance.

Financial highlights

• Gross rental income reached €293m, up 6.5% like-for-like and 5% year-over-year.

• EPRA earnings rose 15% year-over-year to €147m; EPRA EPS increased 9% to €0.26 per share.

• Net profit was €156m, reflecting a €455m improvement from the previous year.

• Net rental income reached €275m, up 5% year-over-year.

• EBITDA grew 4% year-over-year to €242m.

Outlook and guidance

• Full-year EPRA EPS is expected to exceed €0.32 per share, above the initial guidance range.

• Ongoing capital recycling and a robust project pipeline, including the Alpha X Project, are expected to drive future growth.

• Organic growth drivers could push gross rental income above €560m in the future, excluding capital recycling.

• Strong expectations for continued rental growth and asset value recovery, especially in prime markets.

• High double-digit earnings growth projected, supported by rental growth and project pipeline.