Inmobiliaria Colonial has closed the third quarter of fiscal year 2024 with an increase in recurring results driven, in part, by the growth in income. With rental income of €293m, + 6% like for like vs. previous year, with a recurring net result of €147m, +15% vs. previous year and a recurring net result per share of €25.9cts, +9% vs. previous year.
A recurring net result that has increased based on an increase in revenue that has been recorded mainly due to two factors: income growth in all segments thanks to the prime positioning of the portfolio and the successful delivery of projects and rehabilitationshighlighting in particular the active Louvre Saint-Honoré leased to Cartier & Compagnie, as well as the new Adidas flagship store at Galeries des Champs-Elysées.
Efficient management of operating costs has resulted in an EBITDA growth that, together with controlled financial expenses, has allowed the recurring net result to increase by +15% to reach €147m.
These rent increases have made it possible to offset the impact of the loss of rent from the disinvested properties in 2023 and 2024. The net result of the Colonial Group amounts to €156 million at the end of the third quarter of the year, compared to the falls of €298.5 million in the same period of the previous year.
Besides, recurring earnings per share of €25.9Cts, +9% vs. previous yearwhile, as far as forecasts are concerned, Colonial expects to exceed the annual net profit per share target of €30-32 in 2024.
Colonial closes the third quarter of 2024 with strong hiring activity, capturing significant increases in income in the signed contracts.
In accumulated terms, we highlight the high volume signed in the Madrid market, which amounts to 69,920m², of which 76% (52.958m²) They are renovations and the rest (16,962m²) corresponds to new signed contracts. In the Barcelona market, 26,227m² have been signed, of which 80% (20,890 m²) correspond to contract renewals. In Paris, a total of 16,587m² have been signed.
At the end of the third quarter of the year, The signed rents have been made with an increase of +8% in relet areas (“release spread”) and exceed market rents by 5% as of 12/31/23, clearly showing the growth in rents for Colonial’s prime properties.