The financial results support the road map set out by the management team. Axiare Patrimonio has obtained a net profit of €13.1m in Q1 2017, a 156% increase y-o-y. Gross rental income in Q1 2017 reached €13.4m, representing a 36% increase y-o-y. Like-for-like, rental growth has increased 4.9% against Q1 2016.
Axiare Patrimonio’s management team remains strongly committed to the investment plan. It continues to purchase high quality properties in established areas of Madrid and Barcelona at attractive prices with the aim of maximising shareholder returns. So far this year, the Socimi has acquired four properties for €158m, reaching a record property portfolio value of over €1,500m. In addition to the €93m raised via the share capital increase carried out on 8 March, Axiare Patrimonio has gained bank financing for €119m, capitalising on current low interest rates. The funds raised will allow Axiare to continue to develop its real estate investment strategy and provide strong value uplift.
Letting activity has been extremely active since the start of the year. Just in Q1 2017 the Company has signed 4,485 m² of new office lettings, which is a new record; in logistics it has signed two new leases totalling 26,165 m², taking occupancy in this sector up to 97% and has also renegotiated a further 23,456 m². Portfolio occupancy at 31 March therefore stands at 92.6%, a y-o-y increase of 1.516 bps. In addition to this, over 63,000 m² of new office and logistics leases have been signed to date since 31 March, including recently repositioned properties such as Manuel de Falla and Don Ramón de la Cruz.
The property repositioning strategy to transform properties into the best in their respective catchment areas is progressing perfectly to plan, both inside and outside of the CBD. Four of the five main repositionings in 2016 are now fully let and the Company is positive about the leasing outlook for the property repositionings currently underway.
Axiare Patrimonio’s CEO, Luis López de Herrera-Oria, confirmed: “These excellent financial and operational results are yet another demonstration of the capabilities of the management team to carry out the strategy applied when we first listed on the stock exchange”. López de Herrera-Oria added: “this quarter we have turned to the capital markets to continue to take advantage of the opportunities that we see in the market. We are currently in advanced negotiations valued at €350m.”