Colonial updates the value of its assets in response to interest rate shifts. The Ibex-35 real estate company has reduced the value of its properties by 1,157 million euros, representing a 9% decrease from the previous year. All told, the portfolio of buildings stands at 11,336 million euros, a figure that drops to 5,372 million once net debt is subtracted.
Beyond the write-down, which produced a net loss of 1,019 million euros for 2023, this accounting result does not affect the company’s operations or cash flow. Colonial has achieved its strongest recurring profit in history, amounting to 172 million euros, and plans to raise its dividend by 8% to 144 million euros.
Led by chairman Juan José Brugera and chief executive Pere Viñolas, the past twelve months brought in rental income of 377 million euros, up 8%. “It has been an excellent year operationally, even in a market in adjustment,” stated the CEO after speaking with reporters. The rise in rents has helped Colonial partially offset the valuation impact on its portfolio.
Alquileres de oficinas, mejor tercer registro
Over the last year, Colonial finalized office lease deals totaling more than 158,000 square meters. “Our cruising speed is signing 100,000 square meters in a year. The 2023 figure ranks among the top three in our history. When a strong leasing year is achieved, it translates into results in the years ahead,” Viñolas explained.
The occupancy rate of Colonial’s portfolio stands at 97% of total available space. By city, Paris has full occupancy at 100% of its rentable space, Madrid reaches 96%, and Barcelona sits at 84%, where an overhang in the 22@ district leaves some spaces vacant.
Ventas para reducir deuda
In 2023, Colonial carried out several divestments to reduce leverage and strengthen the balance sheet. Earlier in the year, three central Madrid buildings were sold to entrepreneur Rafael González-Vallinas for 300 million euros, along with smaller peripheral properties. Since the start of this divestment plan, more than 700 million euros in assets have been sold, with plans for a second phase targeting another 500 million.
The real estate group is pursuing multiple reconversion projects. The Madnum mixed-use complex in Madrid’s Méndez Álvaro district was the first. The second project, as previously reported, involves converting the former T-Systems headquarters in Barcelona into a hospital. The future of the old IBM headquarters in Madrid, which Colonial has discussed repurposing for residential use, remains under consideration.
¿Regreso de la sede a Cataluña?
Colonial was among the Catalan companies that moved its headquarters to Madrid following the October 1 referendum. Earlier this year, the Spanish prime minister announced a plan to offer incentives for firms considering relocating back to Catalonia. Brugera indicated the company would study the forthcoming regulations closely. With those remarks, the leadership signaled a potential return to Barcelona could be on the table depending on policy details, market conditions, and strategic fit for Colonial.
The year has reinforced Colonial’s focus on liquidity and realignment of its portfolio toward higher-quality, flexible-use properties. The mix of disposals, selective acquisitions, and targeted reconversions aims to strengthen the balance sheet while preserving growth opportunities in key European markets.