Colonial gives CriteriaCaixa largest stake in its shareholding through €622 million capital increase

Link Securities | The REIT approved yesterday at the General Shareholders’ Meeting the entry of CriteriaCaixa in its capital through a capital increase of €622 million, Expansión reports. Pere Viñolas, CEO of Colonial, told shareholders that the company’s indebtedness will be consolidated at the levels achieved with this capital injection (leverage of 36.3% vs. 39.9% previously), while he expects earnings per share and the dividend to grow. With this capital…


Several American funds and proxy advisors to vote against two CriteriaCaixa directors entering Colonial after raising their stake from 3% to 17%

Link Securities | Many international investors take a dim view of the formation of hard core shareholder groups in Spanish companies as they believe that shareholders with a minority stake can exercise almost total control thanks to their weight on the boards of directors, as reported today by Expansión. Thus, several large US funds, with the support of their corporate governance advisors (proxy advisors), are going to vote against Colonial’s…

Property sector

Leverage remains key for property sector; Colonial (EW, T.P. from 7,5 to 6,2 euros/share);Merlin (OW, T.P. from 11 to 10 euros/share)

MS | Bart Gysens (analyst) has this Thursday published a report reviewing his preferences within the European property market, positioning himself for a transition from an environment of rising rates to one of recession. Leverage is still the determining factor which the team uses to see where the value is and is not. But as we enter 2023, where the macros see a potential recession, thus driving a greater importance…


The Socimis are already trading at big discounts of 55%-65% to NAV due to rate hikes: BUY Colonial

Bankinter |The Spanish Socimis are facing a more than foreseeable downward adjustment to the value of their assets (GAV), in light of the hike in interest rates in the last few months and the potential recession. This decrease in the valuation of their portfolios will have an impact on accounting profit and on leverage, which could already be reflected in certain areas at end-year. Our analyst team’s view: Negative news,…


Fear (exaggerated) of a fall in office demand affecting Colonial’s share price

Intermoney | The figures from consultancy firm Cushman & Wakefield (C&W) indicate that investment in property in Spain during the first 9 months of this year stood at 12.718 billion euros. This is already more than that for the whole of 2021, which stood at 11.926 billion, according to the daily Expansión. The data to September also beats the total figure for both 2017 and 2018. It is worth highlighting that…


Colonial has nearly 2.6 billion euros war chest for possible acquisitions

Spanish property firm Colonial has 2.557 billion euros in liquidity, which can be earmarked for acquisitions amongst other things, according to the daily Cinco Dias, citing the company’s recent H1 accounts presentation. Colonial has 467 million euros in cash and 2.090 billion in credit lines which have not yet been used, Cinco Dias said. The newspaper flagged that the Ibex 35-listed Socimi’s management has been saying since last year that…


Colonial confirms main strategic points: rental income of €510 M in 2025

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…

Merlin Properties

The big Socimis, Merlin, Colonial and Lar España, will pass the CPI rise on to tenants

Bankinter | Merlin, Colonial and Lar España foresee passing inflation on to their rents. They give assurances they will enforce contracts, just as they did when inflation was zero or in negative territory. Bankinter’s opinion: Good news for the sector, although it should be viewed with caution. We do not think the increase in inflation is going to be applied across the board. There will be some assets requiring negotiation with…


Office rentals Socimi Colonial Recorded No “Significant” Rental Defaults In April And May

Colonial has limited the impact of the coronavirus crisis to 2% of the total rent it charges for its office buildings. Depending on how the situation evolves, this percentage could rise to a maximum of 6% for the year as a whole, according to chairman Juan José Brugera. This rate is equivalent to about 21 million euros, in virtue of the 352 million euros in rental income recorded in 2019.