Intermoney | Colonial (Hold, Target Price 9,5 euros) celebrated its Capital Markets Day (CMD) in Paris on Monday. The socimi confirmed its main strategic points, such as focus on its three markets, maintaining a stable financial structure, asset rotation policy and reinforcing ESG policy.
In the face of doubts from some investors, Colonial confirmed the high occupancy levels in its portfolio in service, and in the one where it will be soon. With regard to the progress in results, the company also maintained double digit BPA adjusted growth this year. In addition, it gave guidance on rental income of 510 million euros in 2025, compared to the 344 million generated in 2021.
Valuation:
A CMD without any major news, on a stock which has been penalised quite a bit of late. Particularly due to the doubts of some investors about the occupancy performance in office assets after the pandemic. We believe that, if anything, there would be greater demand for the assets in CBD at the cost of those located outside of it. So Colonial, ceteris paribus, would benefit. On the other hand, in almost all cases, the increase in inflation could impact on tenants via their contracts. Our estimate for Colonial’s revenues in 2025e comes in at a conservative 465 million euros, 9% lower than the socimi’s guidance. In our next note, coinciding with the Q2 forecast, we will revise, if need be, the parameters of our coverage of the stock.
