The company also achieved a Total Shareholder Return of +21% due to an increase in the EPRA Net Asset Value per share of +19%. Pere Viñolas, Colonial CEO, says «this return is a consequence of a strategy of specialization on prime offices in the markets of Barcelona, Madrid and Paris, with an approach of real estate value creation – “Prime Factory” -, that priorities quality of return maintaining highest financial discipline».
The Group’s successful strategy is reflected in all aspects of the financial and operating results for 2017: an increase of +22% in recurring income, up to €83m, +14% on EPS, a +4% like-for-like increase in rental income driven by rental price increases, and an increase in asset value of +15% (+12% like-for-like), reaching €9,282m.
Also, solid operative parameters: 99 signed contracts corresponding to more than 134,000 sq m and €48m in annual rental income; EPRA vacancy at minimum levels of 4%.; an increase in the net attributable result of +149%, reaching €683m; and a robust capital structure with an LTV of 31%, €2,427m of liquidity and a solid investment grade rating by Standard & Poor’s and Moody’s.
The Colonial Group achieved a +4% like-for-like growth in rental income compared to the close of the previous year. This increase is among the highest in the sector. Rental revenues amounts to €283m In Spain, the rental revenues like-for-like increased by 5%, due to the significant positive growth of the Barcelona portfolio, which increased by 10% like-for-like. The Paris portfolio has increased by 4% like-for-like, mainly due to the contracts signed on the Edouard VII, #Cloud and Percier.
Colonial successfully executed a takeover bid on Axiare on 13 November 2017, reaching a stake of 87%. At the close of 2017, the asset value of the Colonial Group amounted to €9,282m (€9,741m including transfer costs), an increase of 12% like-for-like. Including the impact of the new acquisitions and the net sale of IN/OUT, the increase was 15% year-on-year.
The value of the assets in Spain increased by +11% like-for-like in the last 12 months. The portfolios in Madrid as well as Barcelona had +11% year-on-year growth each. The asset value of the Paris portfolio has increased +13% like-for-like in the last 12 months.
The growth strategy of the Colonial Group involves annual organic investments of around €400m in acquisitions of new assets, prioritizing off-market transactions, and identifying assets with value-added potential in market segments with solid fundamentals. During the first quarter of 2017, the Colonial Group executed the Alpha II acquisition program, corresponding to the purchase of four assets for a total investment volume of almost €400m.