Colonial’s second quarter profits confirm the success of its strategy

10/08/2016

Colonial’s second quarter profits confirm the success of its strategy

The net profit attributable to the Group is € 230 million, a 13% increase compared to the same period last year

The profits made in the first six months of 2016 reflect the successful implementation of the Colonial Group’s growth strategy, which is based on an industrial approach for creating real estate value combined with a specialisation positioning in prime offices in the Barcelona, Madrid and Paris markets.

At the close of the first six months of 2016, the Company had increased its income from rent by 23%, a 10% increase in like for like comparable terms, to total €137 million with 97% of the company’s property portfolio occupied.

“The success of our specialisation strategy in the prime offices market with adequate geographical diversification in Barcelona, Madrid and Paris, enables us to offer a return to our shareholders that is higher than the sector’s average”, affirms Pere Viñolas, CEO of the Colonial Group.

In the first six months of 2016, Colonial entered into rental contracts for 64,800m2. It is worth noting that the Company has already carried out 75% of the objectives planned for 2016.

The immense volume of new contracts has given rise to an important increase in occupancy, reaching 97% for all properties. In Barcelona, occupancy totals 94%, 97% in Madrid and Paris has also reached an occupancy rate of 97%.

An increase in rental prices

The Colonial Group has achieved a 23% increase in income from rent. This increase is mainly due to:

1. A 10% increase in the like for like income, based on the prime portfolio’s capacity to attract, which has improved its occupancy by 829 basis points in 12 months.

2. It has also obtained a 13% increase in income through the successful completion of the Prime Factory projects and the new acquisitions. 

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