Colonial Sfl Socimi Sa · BME:COL

Colonial Sfl Socimi Sa — Inmobiliaria Colonial SOCIMI — Q3 2024 Earnings Presentation

36 slides from Colonial Sfl Socimi Sa's earnings presentation, Nov 14, 2024

  1. Slide 1: 2024 Third Quarter Results

    Colonial #1 2024 Third Quarter Results November 14th, 2024 Top 1.5% Global 3Q 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 3Q 2024 Highlights 02 Financial Performance 03 Portfolio Management 04 Future Growth 3Q 2024 RESULTS | 3

  4. Slide 4: High demand and tight supply drives outperformance of prime asset class

    01 Highlights High demand and tight supply drives outperformance of prime asset class Prime Asset Class delivers the strongest performance Prime property with unique demand & supply We are positioned in the Prime Asset Class characteristics and delivering returns & rental growth ▪ Positive supply &

  5. Slide 5: Outstanding operating results enhanced by Paris' performance

    01 Highlights Outstanding operating results enhanced by Paris’ performance EPRA Earnings Revenues Release Spread1 Rental Growth2 EPRA Earnings GRI - Group Group Total Group Total €147m €293m Portfolio Portfolio +6.5% +15% Like for +8% +5% Like EPRA EPS GRI – Paris Paris Paris Total €26Cts €192m Port

  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 96% Colonial CBD 96% CBD Market 97% CBD Market 96% Colonial 79% CBD Market 94% La Défense Market 86% Outside M-30 84% Outside City Center 82% 90% 100% 99% 100% 88% 100% Project 99%

  7. Slide 7: Bifurcation – Prime CBD investment market with improved outlook

    01 Highlights Bifurcation – Prime CBD investment market with improved outlook Prime Capital Values are bottoming-out Recent market Transactions1 - 3Q2024 CBD Prime offices capital value (€/sqm base 100) 23,000 21,239 Paris CBD Paris CBD €/sqm €/sqm 2024-29 CBRE Forecasts 14 Halévy 11 Berenger 34,664

  8. Slide 8: Financial Performance

    02 Financial Performance 3Q 2024 RESULTS | 8

  9. Slide 9: 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 +5% Alpha +12% Project Deliveries Project Deliveries & +5% +6% & Acquisitions Acquisitions 1 Like for

  10. Slide 10: 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 +6.5% +3.5% +2.0% +1.1% like for like Group +5.1% +6.5% 3 27 9 2 3 Paris +12% +7.4% Madrid (11%)

  11. Slide 11: Strong growth in EPRA EPS - Acceleration towards upper range of guidance

    02 Financial Performance Strong growth in EPRA EPS - Acceleration towards upper range of guidance EPRA Earnings EPRA EPS €m €cts/share 4 11 147 26 3) +15% +9% YoY 7 YoY 24 129 09/23 09/24 ecurring Core eli ered isposals ecurring ull Year EP EP abo e €cts/share Profit Portfolio pro ects inancial Cost

  12. Slide 12: Colonial upgraded in Moody's debt rating up to Baa1

    02 Financial Performance Colonial as upgraded in Moody’s debt rating up to Baa1 TOP RATING AGENCIES ENDORSE COLONIAL’S PRIME ASSET LEADERSHIP 09/2024: Moody’s upgrade 05/2024: S&P Global update Rating review increased to Baa1 with stable outlook Credit Rating Confirmation • Scale: $12.5 – 13.5B gros

  13. Slide 13: Solid financial structure with hedged financial costs

    02 Financial Performance Solid financial structure with hedged financial costs Significant net debt reduction in 3 months Loan To Value Enhanced liquidity & Low cost of debt €bn € m of i uidity2 Of which €873m in Cash 4.9 40.5% 4.9 39.5% € . bn LTV incl. transf. costs 1.71% 1,75% 1.72% 4.4 Cost of 3

  14. Slide 14: Portfolio Management

    03 Portfolio Management 3Q 2024 RESULTS | 14

  15. Slide 15: Our premium assets deliver strong letting performance

    03 Portfolio Management Our premium assets deliver strong letting performance trong etting Performance… ... with prime properties capturing the highest rents in the market 3Q 2024 YTD 2024 >1,100 >1,000 >1,000 New €/sqm/y €/sqm/y €/sqm/y Paris lettings 3Q 2024 €43m CÉZANNE SH EDOUARD VII #CLOUD 47k

  16. Slide 16: High occupancy profile with attractive reversionary potential

    03 Portfolio Management High occupancy profile with attractive reversionary potential Group Epra Vacancy Attractive Reversion 1.4% Alpha X & renovation program > €6m Additional reversion 4.3% 4.1% 4.1% Future 1.4% Reversion 2.9% 2.7% Like for like 0.1% Prime Paris 0.5% Prime Madrid & Barcelona1 12/2

  17. Slide 17: Strong pricing power - letting performance continues at record rental levels

    03 Portfolio Management Strong pricing power - letting performance continues at record rental levels Solid Release ERV Spread1 Growth2 Paris Madrid Indexation Maximum rent signed Maximum rent signed 1,100 €/sqm/year 40 €/sqm/month Group +3% +8% +5% Paris +4% +19% +7% Madrid +2% +1% +4% Barcelona +2%

  18. Slide 18: Strong momentum on project delivery – MADNUM

    03 Portfolio Management Strong momentum on project delivery – MADNUM €19m New MADNUM - Mixed use approach leads to outperformance Rents >8% • 8,400 sqm signed with Gestamp, who will relocate its headquarters Yield On Cost • 2,300 sqm of retail, F&B & amenities spaces signed or in advanced conversati

  19. Slide 19: Clear Leadership on ESG & Decarbonization

    03 Portfolio Management Clear Leadership on ESG & Decarbonization 2024 GRESB STANDING INVESTMENTS BENCHMARK GRESB Score 92 /100 100% RATING Of portfolio RATING 99/100 score in Unparalleled Development in Europe Benchmark 2024 GRESB DEVELOPMENT BENCHMARK REPORT GRESB Score 99 /100 A 5.3 CLIMATE Top 0

  20. Slide 20: Future Growth

    04 Future Growth 3Q 2024 RESULTS | 20

  21. Slide 21: We deliver strong earnings growth on the back of a multi-layer growth platform

    04 Future Growth We deliver strong earnings growth on the back of a multi-layer growth platform HIGH DOUBLE-DIGIT EARNINGS GROWTH 1 Rental Growth €m > 187 +46% 2 Project Pipeline 172 161 +13% CAGR 128 3 Financial Hedging 2021 2022 2023 2024E 4 Capital Recycling EPS +9% & Acquisitions €cts/sh 24.6 29

  22. Slide 22: Demand for prime consistently outstrips supply driving rental growth

    04 Future Growth Demand for prime consistently outstrips supply driving rental growth PARIS Center West - Office rental market PARIS - Office rental market (k sqm) 69 59 62 56 Market rents (€/sqm/y) 48 44 40 Net 29 Absorption Colonial’s playing field Prime 13 17 CBD 9 6 0 0 0 0 0 Net 1,247 1,216 Add

  23. Slide 23: The Prime Asset Class delivers the highest rental growth

    04 Future Growth The Prime Asset Class delivers the highest rental growth PARIS - Office rental market IBERIA - Office rental market Market rents (€/sqm/m) Market rents (€/sqm/y) Paris City City Centre Colonial 99% Colonial’s playing field Colonial 88% Colonial’s playing field Paris Prime Madrid & B

  24. Slide 24: New projects - The start of a new cycle of Urban Transformation

    04 Future Growth New projects - The start of a new cycle of Urban Transformation Alpha X: substantial value creation from urban Option for mixed use enables us to deliver best financial and strategic outcomes mixed use pipeline > 9% > 9% Capital Value €1.4-1.6bn ungeared ungeared Life Science/ Urban

  25. Slide 25: Our asset management expertise provides rental growth & value creation

    04 Future Growth Our asset management expertise provides rental growth & value creation Alpha X - Office Portfolio Alpha X – Living Portfolio Haussmann St-Augustin Diagonal 197 Madrid & Barcelona – 20,000 sqm Spain – 55,000 sqm Prime CBD – 12,000 sqm Barcelona 22@ – 15,000 sqm Cash Flow & Cash Flow

  26. Slide 26: Acceleration of Rental Growth & Value Creation

    04 Future Growth Acceleration of Rental Growth & Value Creation Gross Rental Income1 Several sources of Cash Flow Growth & Value Creation €m I Projects 17.800 24.000 46.900 22.000 sqm sqm sqm sqm IV Sancho de Ávila Condorcet Santa Hortensia Scope Barcelona – 22@ Paris – City centre Madrid – City cen

  27. Slide 27: Strategy & Outlook

    04 Future Growth Strategy & Outlook Premium space in prime locations deliver profitable growth 1 Colonial delivers outstanding growth in EPRA Earnings Full Year EPRA EPS to beat upper-range of guidance Rental Growth & Project deliveries offsetting divestment impacts EPS & rental growth again among t

  28. Slide 28: Thank You

    THANK YOU https://www.inmocolonial.com/en/shareholders-and-investors 3Q 2024 RESULTS | 28

  29. Slide 29: Market disequilibrium to persist for Prime locations driving rent increases

    Appendices Market disequilibrium to persist for Prime locations driving rent increases PARIS Center West - Office rental market (k sqm) Total 8,809 8,809 8,809 8,809 8,809 8,815 8,832 8,861 8,900 stock 80 4.0% 69 3.5% 62 59 3.5% 60 3.2% 56 48 44 Net 40 3.0% Absorption 40 29 Net 2.5% Additions 20 17

  30. Slide 30: Paris Latest Market transactions

    Appendices Latest Market transactions Asset Area Price GLA Cap. Value EuroAthènes (Jul 2024) CBD €110m 5,123 sqm €21,472/sqm 14 Halévy (Sep 2024) CBD €230m 10,000 sqm €23,000/sqm 42 Montaigne (Sep 2024) CBD €250m 4,000 sqm €62,500/sqm 10 Bassano CBD €44m 1,750 sqm €25,143sqm (Sep 2024) PARIS 77 Rue

  31. Slide 31: Madrid and Barcelona Latest Market transactions

    Appendices Latest Market transactions Asset Area Price GLA Cap. Value Alcalá 44 (Jul 2024) City centre c.€100m 12,000 sqm €8,333/sqm Zurbarán 28 (Aug 2024) CBD €25m 3,000 sqm €33,333/sqm MADRID Ramírez de Prado 5 (Oct 2024) City centre €340m1 12,000 sqm n.a. Avda. Tenerife 4 (Oct 2024) Secondary c.€

  32. Slide 32: Appendices: Profit & Loss Account

    Appendices PROFIT & LOSS ACCOUNT GROSS RENTAL INCOME RECURRING EBITDA €m €m Results analysis - €m 3Q 2024 3Q 2023 293 +6% Like- Gross Rents 293 279 for-like 279 242 Net operting expenses & Overheads (51) (46) Recurring EBITDA 242 233 +5% +4% YoY 233 YoY Recurring financial result (58) (71) Income ta

  33. Slide 33: 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 30/09/2024 50%1 of debt € 86 m € 1 m Net Debt maturing >2028 39.5%2 36.5%2 LTV Total Facilities € 65m € 57 m Maturities covered Cash € 8m €87 m by current liquidity Liquidity € m €

  34. Slide 34: New Project Pipeline with an ungeared IRR of more than +9%

    Appendices New Project Pipeline with an ungeared IRR of more than +9% > 9% > 9% ungeared ungeared Life Science/ Urban Life Science/ Urban IRR IRR Healthcare Mixed use Healthcare Mixed use 11% 10% 61% 59% Business > 13% > 13% 30% levered2 levered2 Campus IRR at NTA IRR at NTA €1bn 29% €64m Business T

  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 €150m of growth to be captured >565 50 32 82 411 401 47 401 (20) (12) (25) Passing 2023 Sta. Condorcet & G

  36. Slide 36: www.inmocolonial.com

    www.inmocolonial.com © 2024 Colonial 3Q 2024 RESULTS | 36

Inmobiliaria Colonial SOCIMI — Q3 2024 Earnings Presentation on 6ix