Colonial estimates impact of Covid-19 on rents to be 2%

Colonial estimates impact of Covid-19 on rents to be 2%

The information was announced to the Spanish press by the REIT’s own CEO Pere Viñolas after the shareholders’ general meeting this Tuesday. According to him, «the discussion and negotiation process is practically concluded», quoted El Confidencial.

Given the Covid-19’s impact on its tenants' businesses, the REIT spent the last few months analysing each case and negotiating the best formulas to face the crisis. «At the start of the crisis, we opened dialogues individually with our tenants to find solutions such as moratoriums or allowances», revealed the REIT’s CEO quoted at the time by newspaper Expansión.

The fact is that more than 80% of the REIT’s portfolio is constituted by office buildings, one of the segments which proved to be more resilient towards the crisis. And maybe this is one of the reasons behind this good result. «We are not active in the more impacted segments», highlighted Pere Viñolas at the time assuming that «we would need something extraordinary to take place, for there to be an impact higher than 2% this year».

This factor together with a 97% occupancy rate in the office segment might also be positive in terms of assessing the REIT’s portfolio. «We expect for Colonial to show the individual strength of its assets», believes the REIT’s CEO.  And not even the new remote work trend will affect it. «Remote work will not affect us much, due to the type of clients we have at Colonial», answered the REIT’s president Juan José Bruguera at the time.

It should be noted that the REIT closed the first quarter of the year with a net result of 39% higher yoy and 6% higher in terms of revenue. The good financial health is also made evident by the 2.100 million euro liquidity and the fact that debt only represents 36% of the value of its assets, which at the end of last year were estimated at 12.200 million euro.

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