Colonial’s portfolio devalues 0,2% due to the crisis

Colonial’s portfolio devalues 0,2% due to the crisis

T-Systems HQ in Barcelona, recently acquired by Colonial 

The impact the sanitary and economic crisis had on Colonial’s portfolio lowered its valuation, albeit slightly, to 12.164 million euro in June. It should be noted that Colonial’s portfolio consists mainly in offices – one of the segments which proved to be more resilient to the crisis –, located in large urban centres such as Madrid, Barcelona and Paris.

Juan José Brugera, Colonial’s president, considered that «the assets’ value remained stable during the first semester of 2020. Our bet on the CBD and a 60% exposure of our assets in Paris, allows us to benefit from a greater resilience and less volatility», he added.

As proof of the company’s resistance to the effects of the crisis, the total rental revenues until June increased 2% reaching 177 million euro. Despite this good result, the REIT maintains its predictions concerning the end of the year, which include a 2% drop on rental revenues. Negotiations with the tenants are behind this projection.

The EBITDA also grew around 5% during the first six months, reaching 165 million euro and its recurring income increased 20%, reaching 82 million euro, according to the REIT during its results presentation made available at the Madrid Stock Exchange.

Its «solid» balance sheet along with its 2.488 million euro liquidity cushion and the quality of its assets and tenants allow Colonial to face the crisis in a comfortable position and to follow its strategy, which, according to Pere Viñolas, the REIT’s managing director, «remains committed to the creation of value within the prime office segment on the long-term, focused on quality and revenues adjusted to risk, along with a strong credit and liquidity position».

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