Tag: Dutch pension fund

Renta Corporación’s Profits Rose By 255% In H1 To €7M

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

Renta Corporación Secures Investor For Socimi Launch

21 April 2017 – Ok Diario

Renta Corporación, the real estate company chaired by Luis Hernández de Cabanyes, created a Socimi back in October 2016, which has remained completely inactive until now. The vehicle was constituted with the aim of sounding out the market – which is why its launch was barely publicised – and in the event of finding opportunities, taking advantage of them. Nevertheless, according to market sources, a Dutch pension fund is now going to invest €125 million in the Socimi’s real estate portfolio.

The aforementioned Dutch pension fund has already signed a 10-year contract with Renta Corporación, through which it will pay the real estate company around €3 million per annum to manage the fund. (…).

With this move, Renta Corporación, which will hold its General Shareholders’ Meeting next Wednesday (26 April), hopes to benefit from the progressive recovery of the real estate sector, following the major crisis that property, in general, has suffered since 2008. In fact, the company has seen its share price rise by 8% (cumulative) so far this year.

And that increase has come despite the fact that the company’s results for 2016 were not as good as had been expected. Renta Corporación generated profits of €4 million last year, less than half the figure recorded a year earlier. Moreover, its revenues decreased by 46% and its margins fell by 8%. Furthermore, its debt balance rose to exceed €21 million.

In this regard, it is worth remembering that Renta Corporación emerged from bankruptcy just three years ago, a status that prevented it from trading its shares from almost a year and a half. (…).

Original story: Ok Diario (by Borja Jiménez)

Translation: Carmel Drake