The Colonial SOCIMI closed 2023 with losses of 1,019 million due to the accounting adjustment of the value of its assets derived from the rise in interest rates. According to its president, Juan José Brugera, the loss in portfolio value of 9% does not represent a cash outflow and is lower than the average for the sector in Europe, but it has absorbed the recurring profit, which was 172 million euros. , 7% higher than in 2022, and a record in the history of the firm.
Colonial increased the income it obtains from renting its offices by 8% to 377 million euros, with more than 158,000 m2 contracted, compared to an average of nearly 100,000 in previous years. The company has offices in Paris, Madrid and Barcelona, ??with a total value of 11,336 million euros, and closed the year with 97% occupancy in its buildings.
The CEO, Pere Viñolas, pointed out that the group has been supported by the market: last year it sold non-strategic assets for 723 million euros, at appraisal prices. Therefore, despite the valuation adjustments, the net book value of the shares is 9.95 euros per share, compared to the 5.02 euros at which it is listed on the stock market.
The group also plans to continue divestments this year, with the sale of properties for more than 500 million euros. The firm will use these income to reinforce the treasury, which is 2.9 billion euros, and to have more investment capacity. “The rate hike has dried up the market this year,” Viñolas acknowledged.
The CEO explained that his new urban transformation promotions will include properties with uses other than offices and that his purpose is to “patrimonize them. We have never said that we should only own offices,” said Viñolas.
Colonial explained that the gross operating result or ebitda grew by 12%, to 316 million. The firm will propose to the board an 8% increase in the dividend to 0.27 euros per share, which will distribute 144 million euros.
