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Colonial increases its net profit 39% during the first quarter
15 May 2020 |

Inmobiliaria Colonial achieved a 32 million euro net result during the first three months of the year, which represents a 39% increase when compared to the 23 million euro registered during the same period last year.

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According to the report sent to the Comisión Nacional del Mercado de Valores, the recurring net profit per share reached 7.17 cts €/share, which represents a 10% yoy increase.

The company’s president, Juan José Brugera, qualified the first quarter as «very good» and assured that the impact from the coronavirus crisis had been «limited» for the company. Managing director, Pere Viñolas, explained that «the company’s dynamic had been very satisfactory». He also assured that terrain contracting maintained the pace in April and May and that defaults «had been residual».

Colonial’s revenues from rents between January and March reached 86 million euro. This number represents a 6% yoy increase. During this period, the REIT closed fifteen new rental contracts representing a total 15.539 sqm and 4 million euro per year in rents.

The rents’ revenues from Grupo Colonial were affected, according to the company, by the sale of non-strategic assets carried out during 2019 (Hotel Centro Norte and part of the logistic portfolio) and the project portfolio rotation, as well as the start of the group’s renewal program, especially the project for the asset 83 Marceau and the renewal of the asset Grenelle in Paris which required a temporary reduction in terms of revenues.

The company’s activity «remains stable and the results from the first quarter reflect the strength of Colonial’s portfolio and the resilience of its business model». Nevertheless, he recognises that «these results do not yet reflect the potential impact of the crisis caused by the Covid-19 which started in mid-March».