Third Quarter 2023
November 9th, 2023
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2
Agenda
01 Highlights - Pere Viñolas, CEO
02 Financial performance - Carmina Ganyet, CCO
03 Portfolio and Pipeline - Carlos Krohmer, CCDO
04 Future Growth & Conclusion - Pere Viñolas, CEO
Pere Viñolas | Carmina Ganyet | Carlos Krohmer |
Chief Executive Officer | Chief Corporate Officer | Chief Corporate |
Development Officer | ||
3
01 Highlights
Our Performance
1
Strong Growth in NRI,
EBITDA & EPS
2
Strong Letting Volume & Outstanding Occupancy
3
Rental Growth &
Pricing Power
4
Disciplined Capital
Structure
- +11% Net Rental income like for like, leading the sector
- +13% Recurring EBITDA growth reaching €233m (vs €207m in 09/2022)
- +8% growth of recurring EPS reaching €23.8cts per share
- More than 113,000 sq m signed YTD equivalent to €49m annualized rents
- Outstanding Group occupancy at 97%, with Paris fully let at 100%
- Professional services firms and luxury brands leading tenant demand
- Contracts signed in 3Q with +11% ERV Growth1 (Paris offices +12%)
- Acceleration of rental growth and solid capture of indexation
- Colonial's low carbon assets attracting high quality tenants at maximum rents
- Disposals of €100m in 3Q23 (2) with 12% premium to GAV
- Capital recycling through disposals: €574m sold YTD at appraisal value
- Liquidity of €2,733m, +€593m vs.09/22
- Hedging strategy ensuring interest rates below 2.5% in the long term
- Rents signed in 3Q 2023 vs 12/22 ERV
(2) Includes disposals signed in October | 4 |
01 Highlights
Solid tenant trends in prime European offices
Colonial's strategy is focused on prime CBD assets outperforming the market
Strong demand for prime assets in city center
Increasing European demand with positive momentum for grade A assets
Tenants in search of high-quality space
Move outs in older stock with tenants searching for better places
Large demands are back in Paris
It is the segment with better performance in volume & price Looking for quality and location with limited space reduction
Increased polarization based on quality of asset
Companies looking to increase productivity attracting users to new grade A quality offices
High ESG certification key for capturing take-up
Grade A vacancy at record levels in CBD
Paris with grade A vacancy in CBD 0.3%
Barcelona & Madrid with grade A vacancy in CBD < 2%
Tenant demand concentrated in prime assets
9M 2023 Letting performance
> 113,000 sqm | €49m | +11% ERV1 |
Signed | Ann. Rents | Growth |
Velazquez 86D:
Last floor signed at record rent of €41/sqm/month
Washington Plaza
Current tenant taking up additional space at €1,000/sqm/year
#Cloud.Paris:
12-year lease signed with a luxury goods company (>9,000 sqm)
Galerie des Champs-Elysées
7-yearnon-cancellable turnkey lease signed with Adidas (>3,400 sq m)
Sources: CBRE, JLL and CW 3Q23 reports for Europe France and Spiain
- Rents signed in 3Q 2023 vs 12/22 ERV
5
01 Highlights
The Best Office Product delivers outperformance on occupancy levels
- Colonial has one of the highest occupancy ratios in the sector thanks to its prime positioning
- Colonial's prime assets are fully benefitting from the polarization trend and scarcity of grade A product in the market
PARIS | MADRID (Inside M-30) | |
Occupancy by sub-market
Colonial | 100% | |||||||
100% | CBD Market1 | 98% | ||||||
100% | La Défense | |||||||
85% | ||||||||
Market1 | ||||||||
100% | 100% | |||||||
99% | ||||||||
100% | 100% | |||||||
100% | ||||||||
100% | 100% | |||||||
QCA | 100% | |||||||
100%
100%
100%
Occupancy by sub-market | ||
70% | Colonial | |
100% | 97% | |
91% | CBD Market1 | 95% |
Outer M-30 | 82% | |
100% | Market1 | |
100%
100%92%
93%100%
100% 92%
100% 100% | 89% |
93%
100%
100% 100%
100%
100%
100% | project 100%93% |
- Source of Market data: CBRE
6
01 Highlights
The Best Office Product delivers outperformance on rental growth
- Colonial's portfolio is achieving outstanding rental growth, setting the benchmark for prime rents
- High quality clients signing the maximum rents to secure low carbon destinations in the City Centre
PARISMADRIDBARCELONA
+12% | 1,000 | +8% | 41 | +2% | 29 | |
Rental | €/sqm/y | Rental | €/sqm/m | Rental | €/sqm/m | |
Growth in | max. rent | Growth in | max. rent | Growth in | max. rent | |
signed YTD | signed YTD | 2 | signed YTD | |||
3Q 231 | 3Q 231 | 3Q 231 | ||||
Place de l'Étoile
Place de la
Concorde
Musée du
TourLouvre
Eiffel
Plaza de
Colón
Nearly
Net-Zero
Building
Biome | Paris City Centre | Miguel Ángel 23 | Madrid CBD | Diagonal 525| Barcelona CBD | ||
(1) | Offices rents signed in Q3 2023 vs 12/22 ERV | 7 |
(2) | Signed in October 2023 |
02 Financial performance - Strong Cash Flow & Resilient Values
Strong top-line results driving profitable growth
02 Financial Performance - Strong Cash Flow & Resilient Values
The Best Office Product delivering outperformance
Strong Cash Flow
Solid Balance Sheet Strong Operations
Recurring Net Profit
€129m
+19%
+8% Continued
Operations1
Group Occupancy
97.4%
+168 bps
Vs. 12/22
S&P Credit rating
Confirmed2
- +
Stable Outlook
- +
- Adjusted for the impact of asset disposals
Recurring EPS
€23.8 Cts/sh
+19%
+8% Continued Operations1
Letting volume
113,285 sqm
Liquidity
€2.7bn
+€593m
Vs. 09/22
Recurring EBITDA
€233m
+19%
+13% Continued Operations1
Pricing Power -
Indexation
+5%
Group
Debt at Fixed Cost
100%
Revenues
€279m
+7% +8% LFL
Pricing Power -
Rental growth
+11%
ERV3
Vs. LY
Cost of Debt
1.72%
- Standard & Poors has confirmed its BBB+ Stable outlook credit rating for Colonial after its annual review in the 3Q 2023
- ERV Growth vs 12/22
9
02 Financial Performance - Solid Cash Flow Growth
Strong profitable growth on all metrics
STRONG INCREASE IN NET RENTAL INCOME DRIVING SOLID EPS GROWTH
GROSS RENTAL INCOME | NET RENTAL INCOME | RECURRING EBITDA |
€m | €m | €m | |||||
279 | +8% | +11% | |||||
262 | Like- | Like- | +19% | ||||
for-like | 261 | for-like | Continued | ||||
Operations1 | |||||||
237 | |||||||
233 | |||||||
207 | |||||||
+7% | +10% | ||||||
+13% | |||||||
9/ 22 | 9/ 23 | 9/ 22 | 9/ 23 | 9/ 22 | 9/ 23 |
RECURRING NET PROFIT
€m | +19% |
Continued | |
Operations1 | |
129 | |
119 | |
+8% | |
9/ 22 | 9/ 23 |
- Adjusted for the impact of asset disposals
- Recurring EPS
EARNINGS PER SHARE (EPS2)
€cts/share
+19%
Continued
Operations1
23.8 | |
22.1 | |
+8% | |
9/ 22 | 9/ 23 |
10
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Inmobiliaria Colonial SOCIMI SA published this content on 09 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 November 2023 12:01:56 UTC.