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Colonial closes 2019 with a record profit of €827M
02 March 2020 | Vanessa Sousa

For REIT Colonial, 2019 was a year of obvious growth. The company’s net profit reached 827 million euro, representing a 58% yoy increase.

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For Juan José Brugera, the REIT’s president, «2019 was an exceptional year for Colonial, we achieved the best results within the almost 75-year history of the company».

This was the financial indicator with the highest increase, but the report, issued last week, which shows the company’s results for 2019, presents other indicators which also had significant increases. The portfolio’s value is one of those indicators – it increased around 9% between 2018 and 2019 – reaching 12.196 million euro. The gross income also increased – 4% - reaching 353 million euro.

«The 2019 results reflect the successful execution of the company’s business plan and the solid fundamentals of the Barcelona, Madrid and Paris office markets», recognised Pere Viñolas, Colonial’s Managing Director.

In order to consolidate its focus on the office segment, Colonial carried out a series of divestments in non-strategic assets throughout the year, for a total 477 million euro – which include the sale of its remaining logistic portfolio which should be finalised by the end of this year’s first semester.

Amongst these sales are 11 logistic units with a total combined area of 314.000 sqm; the Hotel De Centro Norte (with 8.000 sqm); and also, the divestment in the terrain Parc Central during last year’s final quarter, revealed the report.

Pipeline estimated at around €1.000M

Despite its divestment route, Colonial did not discard the acquisition of strategic assets. That was the case of a 45% share of the Torre Marenostrum building in Barcelona for 45 million euro*, the Parc Glories II also in Barcelona (with a 17.860 sqm SBA) for 101 million and the Recoletos 27 building in Madrid for 14 million euro.

Along with these acquisitions, the REIT announced last October that it has a pipeline for new investments of around 1.000 million euro. Of this amount, Colonial has already invested 115 million euro in new acquisitions, mentioned the report.

*Implied asset value including the 45% share of the NAV.