Colonial closed the 2024 financial year with a net profit of 307 million euros, an increase of 1,326 million euros compared to the previous year, driven by the 3% revaluation of its asset portfolio. In addition, recurring net profit reached 193 million, 12% higher than in 2023, due to rental growth of 6% on a like-for-like basis, the delivery of new projects and refurbishments.
At year-end, the value of its asset portfolio amounted to EUR 11,646 million (EUR 12,276 million including transfer costs). In comparable terms, the revaluation was 2.8%, with the Paris market standing out with an increase of 3.3%, followed by Madrid (2.4%) and Barcelona (1.3%). Net asset value (NTA) was EUR 6,036 million, EUR 664 million higher than in 2023, at EUR 9.62 per share.
Rental income amounted to EUR 391 million, up 4% in absolute terms and 6% on a like-for-like basis. This increase was underpinned by the portfolio's strong prime positioning, the indexation of contracts and the delivery of new projects, offsetting the loss of income from divestments and the entry into refurbishment of the Santa Hortensia asset.
Colonial's portfolio has captured a release spread of 8% in signed contracts, with rents 5% above market value at the end of 2023. Paris led the growth with a 20% increase in leased space, including a deal with a 30% increase over the previous rent and a 15% increase over the market. In Spain, Madrid and Barcelona recorded 4% growth in market rents.
In total, Colonial signed 90 contracts for 134,797 sqm, with annualised revenues of 52 million euros, of which 61% came from Madrid and Barcelona and 39% from Paris.
Occupancy and development of new projects
The occupancy rate of the office portfolio remains at 95%, with Paris at 100%, Madrid at 92% (98% in the CBD) and Barcelona at 96% in its CBD. In Barcelona, most of the available surface area corresponds to the refurbished Diagonal 197 asset and the Torre Marenostrum and Illacuna buildings, which have aroused a high level of interest in the market.
Colonial has also continued to drive forward its urban regeneration strategy, with the delivery of the Madnum Urban Campus in Madrid, a 60,000 sqm office and retail complex which is expected to achieve a yield on cost of 8%. In addition, it has launched the Alpha X Project, with an investment of EUR 380 million to transform 110,000 sqm of assets in Paris, Madrid and Barcelona, generating EUR 64 million in additional annual rents.
The plan includes the transformation of several strategic assets in Paris, Madrid and Barcelona. In the French capital, Scope will be converted into a 22,000 sqm business campus, while Condorcet will house a 24,000 sqm mixed-use complex. In Madrid, the Santa Hortensia project foresees the refurbishment of 47,000 sqm, and in Barcelona, Sancho de Ávila will add 18,000 sqm of development in the 22@ district, consolidating Colonial's commitment to urban regeneration in its main markets.
Asset management and financial structure
Colonial has carried out a 201 million euro divestment programme, at a premium of 11% over the last valuation, including the sale of Sagasta 31-33, Recoletos 27 and part of the Madnum residential development.
In the first half of 2024, Colonial carried out a capital increase of 622 million euros, structured as a contribution of 272 million euros in real estate assets and 350 million euros in cash, with Criteria Caixa as a reference investor.
The group closed the year with an LTV of 36%, liquidity of EUR 3,113 million and a net debt reduction of EUR 399 million to EUR 4,465 million. The cost of spot financing remained at 1.70%, with full maturity coverage until 2028.
In January 2025, Colonial issued green bonds for 500 million euros, maturing in 2030 and with a coupon of 3.25%, achieving an oversubscription of 8.1 times.
The group maintains a credit rating of Baa1 (Moody's) and BBB+ (S&P), both with a stable outlook, reflecting the soundness of its financial structure and its ability to attract investment in an environment of recovery in the European real estate market.
