Colonial Sfl Socimi Sa · BME:COL

Colonial Sfl Socimi Sa — Inmobiliaria Colonial, SOCIMI — Q1 2024 Earnings Presentation

39 slides from Colonial Sfl Socimi Sa's earnings presentation, May 13, 2024

  1. Slide 1: 2024 First Quarter Results

    Colonial #1 2024 First Quarter Results May 13th, 2024 Top 1.5% Global 1Q 2024 RESULTS | 1

  2. Slide 2: Disclaimer

    DISCLAIMER By attending this presentation and receiving this document, you are agreeing to be bound by the following limitations. Any failure to comply with these restrictions may constitute a violation of applicable securities laws and/or may result in civil, administrative or criminal liabilities.

  3. Slide 3: Agenda

    Agenda 01 1Q 2024 Highlights 02 Financial Performance 03 Portfolio Management 04 Future Growth 1Q 2024 RESULTS | 3

  4. Slide 4: Our Strategic approach to current market trends

    01 Highlights Our Strategic approach to current market trends Trends in our markets Our Value Proposition – Polarization of demand – Focus on premium space in prime locations 11. A top-quality prime portfolio in central urban areas ▪ CBD Prime locations with strong connectivity key ▪ Priority on hig

  5. Slide 5: Starting 2024 with outstanding results on the back of polarization

    01 Highlights Starting 2024 with outstanding results on the back of polarization 1 Double Digit EPRA EPS EPRA Earnings Group Net Profit €8.7Cts +25% €47m +25% €54.5m +96% Profit Growth 2 Strong Revenues GRI - Like for Like GRI growth from projects €96m | +6% +6.3% +6.0% Revenue Growth +18% in Paris

  6. Slide 6: The Best Prime Product delivers outperformance on occupancy

    01 Highlights The Best Prime Product delivers outperformance on occupancy Paris Madrid Barcelona Colonial 100% Colonial 97% Colonial CBD 97% CBD Market 98% CBD Market 96% Colonial 85% 94% La Défense Market1 86% Outside M-30 82% CBD Market Outside City Center 81% 100% 76% 91% 100% 100% 100% 90% 100%

  7. Slide 7: The Best Prime Product delivers outperformance in rental levels

    01 Highlights The Best Prime Product delivers outperformance in rental levels Paris Madrid Barcelona Maximun rent signed Maximun rent signed Maximun rent signed 1,100 €/sqm/year 40 €/sqm/month 28 €/sqm/month Rental +9% Rental +3% Rental +7% growth1 months In 3 growth1 months In 3 growth1 months In 3

  8. Slide 8: Market context | Office Markets bifurcation to Prime Assets in CBD

    01 Highlights Market context | Office Markets bifurcation to Prime Assets in CBD PARIS - Office rental market MADRID - Office rental market Market rents (€/sqm/y) Market rents (€/sqm/m) Colonial’s playing field Colonial’s playing field Prime Prime CBD CBD Future Outlook Future Outlook 1,070 42 1,070

  9. Slide 9: Financial Performance

    02 Financial Performance 1Q 2024 RESULTS | 9

  10. Slide 10: Colonial's Prime Strategy delivers strong growth in earnings

    02 Financial Performance Colonial’s Prime Strategy delivers strong growth in earnings Gross Rental Income EBITDA1 EPRA EPS2 €m €m €cts/share 96 76.8 90 +6.2% +8% +25% YoY 71.3 YoY 8.7 YoY +6.3% 7.0 Like- for-like 03/23 03/24 03/23 03/24 03/23 03/24 1 Recurring EBITDA 2 Earnings per share 1Q 2024 RES

  11. Slide 11: Gross Rental Income growth on the back of Core Portfolio & Project deliveries

    02 Financial Performance Gross Rental Income growth on the back of Core Portfolio & Project deliveries Gross Rental Income Variance Gross Rental Income Growth (%) €m Core Portfolio +6% Like for like Alpha +12% +6% +6% Delivery of +6% Like for like1 Delivery of Projects Projects 6 (5) Disposals & (6%

  12. Slide 12: Solid Gross Rental Income like for like growth through superior pricing power

    02 Financial Performance Solid Gross Rental Income like for like growth through superior pricing power Gross Rental Income Variance (%) Gross Rental Income Like for Like1 Variance €m Total Like-for-Like1 +6.3% +1.8% +3.2% +1.2% like for like Group +6.2% +6.3% 1 3 89 1 84 Paris +17.6% +7.9% Madrid (1

  13. Slide 13: Double-digit Growth on EPRA EPS

    02 Financial Performance Double-digit Growth on EPRA EPS EPRA Earnings €m EPRA EPS 3 (5) 11 €cts/share IBM 47 +25% 8.7 +25% 38 7.0 03/23 03/24 2024 EPS Guidance on track 03/23 Portfolio Financial Diposals & 03/24 Continued result 2 IBM Operations1 Rescission (1) Adjusted for the impact of asset disp

  14. Slide 14: Disposal program on track with +11% premium on appraisals

    02 Financial Performance Disposal program on track with +11% premium on appraisals Disposal of Sagasta 31 in Madrid Disposal Program II - €500m Target > Price with premium on 12/23 GAV €201m +11% Disposals Premium > Small sized vacant asset with small floor plants and inefficient YTD on GAV refurbis

  15. Slide 15: Significant liquidity increase with cost of debt under control

    02 Financial Performance Significant liquidity increase with cost of debt under control Significant net debt reduction in 3 months Enhanced liquidity & improved maturities Financial cost under control €m €m 4,864 2,944 2,903 4,766 1.5x Coverage 24-26 Debt Maturities 1.75% 1.74% 2026 2025 2024 Net De

  16. Slide 16: BBB+ Rating confirmed by S&P in April with financial structure fully hedged

    02 Financial Performance BBB+ Rating confirmed by S&P in April with financial structure fully hedged Colonial’s BBB+ Credit rating confirmed by S&P Debt fully hedged for the next 4 years • In April, S&P has confirmed Colonial & SFL Credit Rating at BBB+ Stable Fixed/Hedged 100% Debt1 • S&P valuing C

  17. Slide 17: Portfolio Management

    03 Portfolio Management 1Q 2024 RESULTS | 17

  18. Slide 18: Another Quarter with Outstanding Operations

    03 Portfolio Another Quarter with Outstanding Operations Strong letting performance1 Occupancy increased by +34bp in 3 months Barcelona Madrid +34 bps €12.5m In 3 months Signed Rents Paris 97.5% Paris 97.1% 99.8% Paris Madrid Barcelona Maximun rent signed Maximun rent signed Maximun rent signed 1,10

  19. Slide 19: Strong Pricing Power - letting performance at record rental levels

    03 Portfolio Strong Pricing Power - letting performance at record rental levels Solid Release ERV Indexation Spread3 growth4 +6% ERV Growth in 3 months Group +5% +12% +6% +6% Paris1 +6% +22% +9% +2% Madrid +3% (1%) +3% 1Q 2023 1Q 2024 Barcelona +3% (1%) +7% 1. These figures include 3 contracts negot

  20. Slide 20: Future Growth

    04 Future Growth 1Q 2024 RESULTS | 20

  21. Slide 21: Double digit EPS increase on the back of a multi-layer growth platform

    04 Future Growth Double digit EPS increase on the back of a multi-layer growth platform 1 Inflation hedge Revenue EBITDA EPRA EPS 2 Rental Growth €96m €72m €8.7 Cts./share 3 Project Pipeline +6.2% +10% +25% YoY YoY YoY 4 Acquisitions & Prime Factory 1Q 2024 RESULTS | 21

  22. Slide 22: Colonial is outperforming its Peers on rental growth

    04 Future Growth Colonial is outperforming its Peers1 on rental growth Paris Gross Rental Income Gross Rental Income YoY growth like for like growth +8% Like for like Colonial 6.2% Colonial 6.3% Peer 4.3% Peer 6.2% Peer 3.8% Peer 1.7% Colonial Paris +7.9% Peer Peer Colonial Paris Barcelona 2.5% 4.8%

  23. Slide 23: Project pipeline delivered with one of the highest yield on cost in the sector

    04 Future Growth Project pipeline delivered with one of the highest yield on cost in the sector GLA Yield PROJECT PIPELINE Project City Let Delivery (sqm) on Cost RETURN 1 Diagonal 525 Barcelona CBD 5,706 100% ✓ ≈ 5% ~ 7% ~17% Yield on Yield on 2 83 Marceau Paris CBD 9,600 100% ✓ ≈ 6% Cost Capex 3 V

  24. Slide 24: Additional growth from projects - Madnum with strong momentum

    04 Future Growth Additional growth from projects - Madnum with strong momentum Additional rental growth & Capital Value + €19m GRI High Rental €19m >8% Increase New Rents Yield On cost Almost 2H 2024 €25m Delivered Delivery Pending Capex Strong commercial interest prior to delivery Large Scale 56,00

  25. Slide 25: Colonial offers a solid multi-layer cash flow growth

    04 Future Growth Colonial offers a solid multi-layer cash flow growth Solid base for additional rental growth More than €100m of Revenue Growth to be captured Additional 2024 like for like growth Indexation Captured +5% YTD >539 Release Spread +12% YTD 49 Rental Growth1 +6% in 3 months 19 46 Occupan

  26. Slide 26: Strategy & Outlook

    04 Future Growth Strategy & Outlook Outlook & Guidance Confirmed guidance of EPS 2024E: 30–32€Cts/ share – subject to disposals DPS of €27cts/sh1 +8% YoY Disposal program II on track: €200m out of 500€m secured (40%) 2024 The year to reload Colonial’s Growth Profile 1. Real Estate & Capital Markets

  27. Slide 27: Thank You

    THANK YOU https://www.inmocolonial.com/en/shareholders-and-investors 1Q 2024 RESULTS | 27

  28. Slide 28: Appendices: Profit & Loss Account

    APPENDICES PROFIT & LOSS ACCOUNT GROSS RENTAL INCOME NET RENTAL INCOME Results analysis - €m 1Q 2024 1Q 2023 €m €m +6.3% Like- Gross Rents 96 90 96 for-like 90 +7% Recurring EBITDA 77 71 86 Like- +6.2% for-like Recurring financial result (20) (23) YoY 77 Income tax expense & others - recurring (0) (

  29. Slide 29: Colonial has one of the highest occupancy ratios in the sector

    APPENDICES Colonial has one of the highest occupancy ratios in the sector thanks to its prime positioning GROUP OCCUPANCY GROUP OFFICE OCCUPANCY BY MARKETS 12/23 3/24 Var 97.5% +224 97.1% bps +34 TOTAL GROUP 97.1% 97.5% bps 95.9% 95.7% 95.2% +33 TOTAL OFFICES 96.8% 97.1% bps PARIS +0 100% 100% bps +

  30. Slide 30: Strong Gross Rental Income increases throughout the portfolio

    APPENDICES Strong Gross Rental Income increases throughout the portfolio Gross Rental Income Variance (%) Gross Rental Income Like-for-Like Analysis ( %) Total Like-for-Like1 Like-for-Like1 Price Impact Occupancy Total of which Indexation GRI Total Increase +6.2% +6.3% Group LFL +6.3% +5% +3% +1% Pa

  31. Slide 31: Strategy - Additional future growth on the back of capital recycling

    APPENDICES Strategy - Additional future growth on the back of capital recycling More than €700m divested – 15 Assets Ongoing flight to quality through active capital allocation 2017 Alpha III 2018IV Alpha 2019 2020V Alpha 2021VI Alpha 2022VII Alpha 2023 2024 1,000 €300m 4Q23-2024 786 left Reloading

  32. Slide 32: 2024 indexation fully passed through

    APPENDICES Colonial’s Prime Positioning allows to fully capture additional cash flows from indexation 2024 INDEXATION FULLY PASSED THROUGH Indexation captured Cumulative Secured Indexation In 2024 Impact 03/24 to crystalize - Annualized GRI impact- P/L LFL in further P/L GROUP +5% +3% +2% BARCELONA

  33. Slide 33: Colonial has a healthy level of 2.5% availability of top-quality product

    APPENDICES Colonial has a healthy level of 2.5% availability of top-quality product Group EPRA Vacancy Paris Barcelona 100% 100% 90% 100% 88% 99% 100% 81% 100% 100% 100% 100% 100% 4 98% 100% 100% 100% 100% 100% 0.1% Paris CBD 100% 100% 100% 100% 100% Proje ct 4,3% 100% Plaza 0.4% Madrid CBD 100% Cat

  34. Slide 34: Extension of debt maturities - A Solid Financial Structure

    APPENDICES EXTENSION OF DEBT MATURITIES A Solid Financial Structure Maturity profile of debt facilities - €m 31/12/2023 31/03/2024 62%1 of debt €4,864m €4,766m Net Debt maturing >2027 39.5%2 39.1%2 LTV Drawn Facilities €105m €105m Maturities covered Unutilized Facilities €2,465m €2,465m by current l

  35. Slide 35: Significant growth profile at adjusted Risk Return

    APPENDICES Significant growth profile at adjusted Risk Return Rental losses from disposals offset by revenue growth Significant Additional Revenue Growth Annualized Topped-up GRI (€m) More than €100m of growth to be captured >539 49 19 46 47 426 426 411 (20) (12) Passing Rent 2023 Sta. Growth Passin

  36. Slide 36: Paris - Latest Market transactions

    APPENDICES Latest Market transactions Asset Area Price GLA Cap. Value 150 Champs-Elysées CBD €1,000m 18,000 sqm €55,556sqm (4Q 2023) 101 Champs-Elysées CBD €146m 4,300 sqm €34,000/sqm (2Q 2023) 10 Rue de Bassano PARIS CBD €48m 1,750 sqm €27,429/sqm (1Q 2024) 14-16 Rue Halevy CBD €219m 10,000 sqm €21

  37. Slide 37: Madrid - Latest Market transactions

    APPENDICES Latest Market transactions Asset Area Price GLA Cap. Value Francisco Gervás 10 City Center €60m 8,000 sqm €7,475/sqm (1Q 2024) MADRID Batalla del Salado 5 City Center €60m 8,100 sqm €7,407/sqm (1Q 2024) Source: public information, press and consultants 1Q 2024 RESULTS | 37

  38. Slide 38: Barcelona - Latest Market transactions

    APPENDICES Latest Market transactions Asset Area Price GLA Cap. Value Portal de l’Àngel 40* (4Q 2022) City Center €105m 4,400 sqm €23,683/sqm * Includes Office & Retail Units Diagonal 662** Transaction not completed CBD €240m 27,300 sqm €8,791sqm ** Sale price as of publishing date (1Q 2023) BARCELO

  39. Slide 39: www.inmocolonial.com

    www.inmocolonial.com © 2024 Colonial 1Q 2024 RESULTS | 39

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