This Colony Group delivered a strong first-quarter performance, delivering results of up to 28 million euros in revenue, a 32% rise over the same period the prior year. Net recurring profit reached 36 million euros, up 26%, while earnings per share increased by 19%. The group closed Q1 2022 with rental income of 82 million euros, a 4.1% year-on-year improvement.
Colonial’s chief executive, Pere Viñolas, described the first-quarter balance as very solid, driven by a favorable real estate market for offices. The segment achieved 95% occupancy and resulted in more than 51,000 square feet of new contracts during the first three months of the year. That figure represents half of the annual target and a 74% increase compared with the previous year.
Office revenues rose modestly, with a 4% gain, broadly aligned with pre-pandemic levels. The rise in signed contracts largely explains the improvement, while Viñolas noted that the uptick was supported by higher operating income from rents indexed to consumer price inflation, heightened activity on development projects such as Naturgy’s Barcelona headquarters and Goldman Sachs’s Parisian tower, improved financial results, and strategic acquisitions, including an additional 16.6% stake in Societe Foncière Lyonnaise in 2021.
Colonial maintains its strategy of focusing on prime properties in central locations across Paris, Madrid, and Barcelona. Viñolas argued that there is no substitute for a central city address when it comes to office demand. This approach has helped the group weather much of the pandemic downturn, delivering stable, high rent levels and nearly full occupancy.
Viñolas highlighted that Colonial, together with its French subsidiary Société Foncière Lyonnaise, completed a comprehensive debt restructuring in February 2022, converting all group bonds for a total of EUR 4.602 billion. The move positioned Colonial as the first Ibex-35 member to classify all its bonds as green, offering a clear competitive edge in debt markets and potentially more favorable financing terms than peers.
Current balances show cash and undrawn credit lines totaling EUR 2,601 million. This liquidity profile supports a BBB+ rating from Standard & Poor’s, among the strongest in the Spanish real estate sector, and a baa2 outlook from Moody’s, reflecting a positive trajectory for the group’s credit profile. The information presented reflects ongoing assessments of performance and financing strategy as of the latest quarterly disclosures and market conditions.
[Citations: Company filings and market commentary attribution]