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.

• The company is highly diversified geographically, with 96% of assets in prime class and 91% benefiting from strong pricing power.

• Urban transformation projects, mixed-use developments, and ESG leadership are key strategic drivers.

• Paris portfolio was a key driver, showing outstanding operating results and above-average rental growth.

• Net profit reached €156m, a €455m improvement compared to the same period last year.

Financial highlights

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

• EPRA earnings for September 2024 were €147m, up 15% year-over-year; EPRA EPS was €0.26, a 9% increase.

• Net rental income was €275m, up 6% year-over-year.

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

• Paris GRI was €192m, up 7.4% like-for-like and 9% year-over-year.

Outlook and guidance

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

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

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

• Prime asset class expected to continue outperforming, with strong rental growth and asset valuations recovering faster than the broader market.

• Ongoing capital recycling and project pipeline expected to drive future growth.