real estate of Ibex-35, Colonialfirst quarter of the year 90 million euro revenueincreased by 11% compared to the same period of the previous year. Regular net profit increased by 5% to 38 million euros. “These are solid results in line with what we’ve done,” said Juan José Brugera, president of the company.
The company, which specializes in office purchase and rental, closed the first three months of the year. 25 contracts were signed, bringing together an area of 45,860 square meters., with 60% new tenants. “The number of square feet rented increased from 40,000 to 45,000 from one quarter to the next. This is important because we categorize 2022 as outstanding and improve an already good year with a 13% increase in business activity. Further and more, those interested in offices are looking for the best and this is Colonial’ It’s something that benefits the company,” said Pere Viñolas, the company’s CEO.
Real estate occupancy rate, which is accepted as ‘full occupancy’ in the sector, reaches 97% and is improving by 1.15% compared to the end of 2022. 99.6% of its buildings in Paris, 97% in Madrid and 84% in Barcelona are occupied.. Viñolas explains what happened to his assets in Barcelona: “These are temporary phenomena, but we think the combination of supply and demand is better in Paris and Madrid than in Barcelona. There is no supply in Paris, there is a lot of demand in Madrid.” strong and supply levels are higher in Barcelona. Despite the data, the trend is good because by the end of 2022 we were at 80%.”
In addition to the increase in the company’s total revenues, Colonial was also able to transfer inflation in contract updates, which increased by 6%. also happened rent increases on contract renewals (broadcast spreads) 6%. “They have been significant in the three markets in which the group operates and highlight the asset portfolio in Paris with a 10% increase”, standing out from the largest real estate company in Ibex-35 by market capitalization.
Company in new leases managed to sign leases 3% more expensive than the market average. In Madrid, for example, this figure rises to 8% as a result of the current demand for the rental of well-located office buildings in the capital at great advantage.
Colonial continued its asset sale plan in the first quarter of the year. The largest operation was liquidated three buildings in the center of the capital to businessman Rafael González-Vallinas To 300 million: Almagro 9, José Abascal 56 and Miguel Ángel 11th Colonial CEO stated that “there may be some operations in the coming weeks or months” although most of the sales have been completed.
Company divestitures, reduced its debt by 336 million. indebtedness by value of assets (loan to value) It fell 1.89% to 36.8%. Both the President and CEO wanted to emphasize that the latest Standard & Poor’s report gave the company a BBB+ credit rating, “the highest in the Spanish real estate industry,” they underlined in the concluding note.
there is a colony 2,473 million Euro liquidityBetween cash and unused lines of credit, it makes it possible to meet all of the group’s debt maturities up to 2026. All debts are flat rate and at an average annual cost of 1.67%.