Inmobiliaria Colonial SOCIMI (COL) Q3 2025 earnings summary

Executive summary

• Prime asset strategy and urban transformation projects drove strong rental growth and earnings, with high demand in core CBD locations and robust letting momentum in Paris, Madrid, and Barcelona.

• Merger with SFL completed, creating a leading pan-European prime real estate group with enhanced scale and visibility.

• Net profit reached €294m in Q3 2025, up 88% year-over-year, driven by operational efficiency and rental growth.

• Over 125,000 sqm leased, with annualized rents from new contracts up 26% to €54m.

• Sustainability leadership recognized by top GRESB and Sustainalytics rankings.

Financial highlights

• Gross rental income reached €296m, up 5% like-for-like year-over-year, with EPRA earnings at €156m (+6% YoY) and EPRA EPS at €25.9 cents.

• Recurring EBITDA at €244m, up 1% YoY; recurring earnings per share increased from 24.9 to 25.9 cents.

• Net profit: €294m (+88% year-over-year).

• Loan-to-value ratio at 38.1%, with strong liquidity of €2.8bn, covering debt maturities for the next three years.

• Cost of debt remains low at 1.89%, with 93% of debt hedged at fixed rates.

Outlook and guidance

• Full-year EPRA EPS guidance maintained at €0.33–0.34, with expectations to remain at the higher end of the range.

• More than €150m in future rents anticipated from pipeline and reversion, with €100m expected from project pipeline between 2025 and 2028.

• Double-digit IRR and additional EPS growth targeted over the next few years, driven by urban transformation, prime asset reversion, third-party capital initiatives, and capital recycling.

• €500m in disposals planned over the next 18–24 months, with high visibility on two-thirds of the target.

• Like-for-like revenue growth expected to remain in line with previous years.