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• Cash Flow Growth: EUR391 million for 2024.

• Like-for-Like Rental Growth: 6% overall, 6% in Paris.

• EPRA Earnings: EUR193 million, a 12% increase from 2023.

• EPS: EUR0.33, exceeding guidance.

• Rental Growth: 5% year-on-year, 8% spread for the group, 20% in Paris.

• Occupancy Rate: 95% overall.

• Gross Asset Value: EUR11.6 billion, with a 2.8% like-for-like growth.

• Net Tangible Assets: EUR6 billion, EUR9.62 per share.

• Credit Rating: BBB+, Moody's Baa1.

• Loan to Value: 36%.

• Interest Rate: 1.20% financial cost.

• Gross Rental Income Growth: 4% year-on-year, 6% like-for-like.

• Net Rental Income Growth: 7% for the group.

• Green Bond Issuance: EUR500 million, 3.25% coupon.

• Liquidity: EUR3 billion in cash and facilities.

• Vacancy Rate: 4.9% total, 2.8% like-for-like.

• Dividend Proposal: EUR0.30 per share for 2024.

• Warning! GuruFocus has detected 4 Warning Signs with WBO:COL.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Inmobiliaria Colonial SOCIMI SA (WBO:COL) reported a strong cash flow growth, finishing 2024 with EUR391 million and a 6% like-for-like rental growth.

• The company's EPRA earnings increased by 12% to EUR193 million, surpassing the guidance provided at the beginning of the year.

• Operational performance remains robust with a rental growth of 5% year on year, and occupancy levels at 95%.

• The gross asset value of the company stands at EUR11.6 billion, with a like-for-like growth of 2.8%, indicating stabilization and potential growth in asset values.

• Inmobiliaria Colonial SOCIMI SA maintains a solid capital structure with a BBB+ credit rating and a low financial cost of 1.20% interest rate.

Negative Points

• The office sector is experiencing polarization, with a clear performance gap between super prime office markets and secondary locations.

• There is a scarcity of prime office spaces due to urban planning changes and conversions of office spaces into residential properties.

• The company's dividend payout is high, potentially exceeding 100% of AFO, raising concerns about sustainability.

• Maintenance CapEx increased significantly from EUR28 million to EUR56 million, impacting financials.

• The investment market in Paris remains muted with low transactional volumes, affecting potential growth opportunities.

Q & A Highlights

Q: Can you clarify the discrepancy in the like-for-like revaluation numbers between your presentation and the report? A: The like-for-like revaluation is positive at 2.8% year-on-year, with 3.3% in Paris, 2.4% in Madrid, and 1.3% in Barcelona. The discrepancy may arise from the detailed operating portfolio in Madrid, which showed a slight correction in the first half of the year but is recovering in the second half.