Spanish real estate group Colonial reported a sharp increase in first-half net profit, reaching €249 million, nearly triple the figure recorded a year earlier (+190%). The surge was largely driven by the revaluation of its asset portfolio, CEO Pere Viñolas said on Thursday, while urging “caution” regarding the sector’s recovery. Recurring profit, excluding revaluation gains, rose 15% year-on-year to €107 million.
Rental income increased 5% on a like-for-like basis to €197 million, while EBITDA from rental activities rose 6% to €181 million. Colonial’s Paris portfolio accounted for 62% of total income and 65% of EBITDA, with the remainder split between Madrid and Barcelona.
The company highlighted strong leasing activity in the prime office segment, signing 48 rental contracts in the first half of the year – 40 of which were for office space – covering 87,438 sqm, up 33% year-on-year. The second quarter was particularly active, with 54,000 sqm leased (+69%).
Colonial also formalised its joint venture with Stoneshield Capital on 10 July to create a European platform focused on science and innovation buildings. The listed group aims to “double the size” of the vehicle as it seeks new projects and investors, Viñolas added.
In October, Colonial will complete the absorption of its French subsidiary Société Foncière Lyonnaise (SFL), after which the company will rebrand as Colonial SFL. Chairman Juan José Brugera said the change would leverage the “prestige” of the 185-year-old Parisian firm as Colonial positions itself as a leading pan-European property group.
