Colonial earns 156 million in the midst of SOCIMI tax debate

Colonial ended the year’s third quarter with a profit of 156 million euros, up from red figures of 298.5 million a year ago. The reason was mainly due to a significant improvement in asset valuations and a 15% increase in recurring net result to 147 million.

The publication of these results comes in the midst of open conflict between Spain’s SOCIMI and the government over its decision to tighten the tax regime. Colonial itself said yesterday that it plans to move the company’s headquarters outside of Spain if this goes ahead. Company representatives declined to comment on the issue at a press conference on third-quarter data.

Read also

Fernando J. Valls, Ander Goyoaga

Rents rose 6% on a like-for-like basis to €293 million. This growth is driven by high occupancy and the ability of the core offering to generate high rents in the market, both in refurbishments and in new projects and refurbishments.

“The third quarter shows acceleration in revenue and profit growth, which will allow us to exceed our 2024 EPS target,” explains Juan José Bruguera, President of Colonial. “With a strengthened capital structure and new long-term partners, we have launched a new portfolio of projects and are poised to take advantage of new growth opportunities,” adds Bruguera.

“We are very pleased with the development of our business and the results. Our premium asset strategy allows us to deliver strong revenue growth, resulting in increased repeat performance,” explains Pere Viñolas, CEO of Colonial. “All this is within the framework of a strong capital structure, as evidenced by the recent rating upgrade from Moody’s,” adds Viñolas.