The reference company in the office market downtown Paris, Madrid and Barcelona shows its figures for the 1st half of 2004: Asset Value € 5,409 mm, N.A.V/Share: NAV € 34.12 (+2.2% vs. Dec.’03), NNAV € 29.99 (+2.1% vs. Dec.’03), Offices occupancy: 93% (vs. 84% Dec ’03), Sale assets: €11.6 mm (+15% w/o valuation), Committed 3Q04: €23.6 mm, Results 1H04, EBITDA: €86.6 mm (+21.6%), Net Profit: €39.2 mm (+0.9%).
June 2004 Colonial acquired 56% of French real state company Société Foncière Lyonnaise (SFL), percentage that rises up to 95% after the tender offer on July 16, 2004. The acquisition associated investment goes up to 1,554 million euros.
With this acquisition, Colonial is configured as a reference company in the Eurozone, with an assets value over 5,400 million euros, 84% of which are allocated to the rental business (4,561 millions), specialized in the offices market (88% of rental assets value) located in the most prestigious areas of Paris (57% of rental assets), Barcelona (25%) and Madrid (17%)
EBITDA grows 21.6%, powered by the good evolution of recurrent results. Rental income reach 51.4 millions (+6.5%), thanks to the improvement in office building’s occupancy (93% in June vs. 84% in December). Promotions and land sales EBITDA has tripled, with sales of flats gross margins up to 44%.
SFL acquisition has accounting effects starting June 30, 2004; therefore it is not reflected in the first half result of Colonial Group. This goes up to 39.2 million euro (+0.9% vs. 1 half 2003), basically due to the effect of the higher tax derived of the lesser sale of assets. SFL’s acquisition positive impact will manifest in the second half 2004, and will add up to the profit increase forecast in 2004 over 10% stated by Colonial before the acquisition of SFL.
Colonial foresees that the 2004 dividend accrued that the company is going to distribute in the next October and May will grow a minimum of 10 % compared with the dividend of 2003. This 10% forecast could increase, following a recurrence and sustainability criteria, once a consolidated business plan of the acquisition of SFL will be finished, and approved by a next Colonial Board of Directors.
Source: Inmobiliaria Colonial
