Intermoney | SFL, the French subsidiary of Inmobiliaria Colonial (COL) (Buy, Target Price €8.5/share), reported its H1 2025 figures on Wednesday after the market closed. Rental income rose by 1% in equivalent terms to €123 million, in line with Intermoney’s expectations for Colonial. Compared to the figure reported a year ago, rental income fell by 3% due to asset sales. The 1% growth is divided between a 5% decline due to the start of renovations on several properties, such as Condorcet, and 6% growth in rental income due to inflation and new contracts. SFL reported a 3% increase in its NTA to €85 per share and 99.7% occupancy in offices. Nominal rents reached €1,000 per square metre per year for the first time for SFL.
Assessment: Results were therefore unsurprising at SFL, which usually generates almost two-thirds of Colonial’s rents and EBITDA, which it reports today at the close. We expect Colonial’s rents to have grown by 3% to €197 million, helped by Madrid (up 19%), due to the incorporation of the portfolio of buildings from CriteraCaixa, while Barcelona (up 4%) would record more moderate increases. The REIT’s EBITDA would also have risen by 3% to €158 million. We remain positive on Colonial, which is being unfairly punished for its exposure to office assets in view of the current downturn in the US, something we do not see happening in Europe, especially at Colonial.
