21 July 2017 – Diario Vasco
The real estate company Renta Corporación has seen its profits soar by 255% during the first half of this year, to €7.1 million, up by €5 million compared to the same period last year.
During the first six months of 2017, the company closed operations in Barcelona and Madrid amounting to €142 million and launched a Socimi – listed real estate investment company – together with the Dutch pension fund APG containing residential rental assets.
In declarations to Efe, the CEO at Renta Corporación, David Vila, assessed these results “very positively”, since they confirm the strong performance of the real estate company over the last few years and allow us to forecast that the company will achieve its goal of earning €13 million in 2017 as a whole.
“Renta Corporación closed 2016 with a solid business portfolio, which gave us good visibility for this year”, explained Vila.
Specifically, the business portfolio amounted to €210.2 million at the end of June, a very similar figure to that registered in December 2016.
According to Vila, this quantity is “optimal” for its business model, given that they tend to move between €200 million and €250 million to properly carry out their activity.
During the first half of the year, the operating margin amounted to €9.5 million, double the figure recorded in the same period last year (€4.8 million).
Similarly, the real estate company has closed operations in Barcelona and Madrid amounting to €142 million, cities that Vila considers to be “the most import and most liquid” for the real estate sector and which “are leading” the recovery process.
In Barcelona, Renta Corporación closed the sale of Edificio Mercurio for €30 million as well as that of an office building on Avenida Diagonal for €7 million.
In Madrid, the company sold an office building on Calle General Moscardó for €5.6 million as well as that of a residential property on Calle Jorge Juan for €8.4 million.
The director also highlighted the good results obtained by the Socimi that Renta Corporación has created together with APG, which has committed share capital of €130 million.
He said that the company has recorded “strong activity”, given that it has made its first purchases amounting to €25 million in the Madrilenian municipalities of Navalcarnero and Rivas-Vaciamadrid and will undertake new acquisitions over the next few weeks.
The CEO forecasts that the Socimi will make “significant” contributions as its activity increases, even though it currently represents a small proportion in comparison to the real estate company’s overall result.
Renta Corporación closed the first half of the year with a share price of €2.84, which represents a 55% increase compared to the figure recorded at the end of last year (€1.84).
Original story: Diario Vasco
Translation: Carmel Drake