Colonial’s Profits Fell by 23% in 2018 to €525M

26 February 2019 – El Confidencial

Colonial closed 2018 with revenues from rental income of €347 million, up by 23% compared to a year earlier. Nevertheless, the Socimi’s profit decreased by 23% to €525 million, given that in 2017, the firm recorded a gain from the sale of a building in Paris – In & Out – for €445 million and was converted into a Socimi. The buildings contributed by the merger with Axiare generated €56 million, equivalent to 16.1% of the total.

These are Colonial’s first results following the completion of its merger with Axiare, the Socimi over which it launched a €1.45 billion takeover in November 2017, and in a year in which it also increased its stake in the French firm Société Foncière Lyonnaise (SFL).

In a relevant fact sent to the CNMV, the Socimi also announced that it ended the year with assets worth €11.3 billion – distributed across the centres of Paris, Barcelona and Madrid – up by 22%, following the integration of Axiare onto its balance sheet. Excluding the effect of that integration, the increase would have amounted to 8% (…).

“Following an excellent year, we are confident of achieving a very satisfactory performance in the market and of generating rental income of €500 million over the next three or four years”, explained the CEO of Colonial, Pere Viñolas, who added that the company’s recurring profit, after excluding extraordinary items and asset revaluations, amounted to €101 million and represented an increase of 22%.

In operational terms, last year, Colonial signed 103 rental contracts, spanning a total surface area of 175,000 m2, which will generate rental income of €43 million p.a. (…).

In financial terms, at the end of 2018, Colonial recorded net debt of €4.7 billion at the end of 2018, up by 52% with respect to 2017 (€3.1 billion) before the purchase of Axiare. That liability accounts for 39% of the firm’s asset value (…).

Original story: El Confidencial (by E.S.)

Translation: Carmel Drake

Grupo Barceló’s Profits Rose By 25% To €125M In 2016

28 April 2017 – Expansión

Grupo Barceló earned €125 million in 2016, which represented an increase of 25% compared to the previous year. Moreover, the hotel group expects to record a net profit of €150 million this year thanks to improvements in management and investments undertaken. The company obtained a gross operating profit (EBITDA) of €338.6 million in 2016, up by 12% and spent more than €140 million improving its hotel stock, of which €110 million was invested in a dozen establishments in Latin America, according to its annual report.

Grupo Barceló closed 2016 with turnover of €2,855 million, up by 15.1%, and net sales of €1,979.7 million (+23.7%), having managed to reduce its net financial debt by 8.3% to €495 million. At the next General Shareholders’ Meeting, which will be held on 2 June, the Board of Directors will propose the distribution of a dividend amounting to €12.5 million. Last July, the firm distributed a dividend amounting to €10 million, which was charged against the results for 2015.

Forecasts

Looking ahead to this year, the company expects to generate EBITDA of almost €388 million. “This year, we expect to see improvements in all of the countries in which we have a presence. The data for the first few months of 2017 show an improving trend in terms of occupancy rates, tariffs and RevPar (average revenue per available room).

Moreover, Barceló underlined that the soundness of its balance sheet will allow it to have access to “interesting” investment projects and to continue growing across all of its divisions. The company currently has 229 hotels in 21 countries, with almost 50,500 rooms, including 112 hotels from the US manager Crestline, which it consolidates 100% after purchasing the 60% stake that it did not control from AR Global in April last year. Overall, the group owns 39 of its hotels, leases 57 of them and manages the remaining 133.

In addition, the firm stated that in January, the Mercantile Court of Palma dismissed the claim against Barceló filed by the bankruptcy administration of Orizonia, which amounted to €59.6 million. In a letter, the Co-Presidents, Simón Barceló Tous and Simón Pedro Barceló highlighted the “record” results obtained both in terms of EBITDA and net profit, with double-digit growth in both parameters as well as in turnover, all as a result of its ordinary activity.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Neinor Recorded Losses of €8.2M In Q1

28 April 2017 – Fianzas

The real estate company Neinor Homes recorded losses of €8.2 million during the first quarter of the year, according to a statement filed with Spain’s National Securities and Exchange Commission (CNMV).

Neinor, which debuted on the stock market on 29 March 2017, is the former real estate arm of the Basque bank Kutxabank, which was acquired by Lone Star; that fund that is still the entity’s main shareholders with 39.5% of its share capital.

The real estate company recorded revenues of €72 million during the first quarter and a gross margin of €10.8 million.

The firm’s debt amounted to €314 million, the same as last year, although the company highlighted the strong generation of cash flow – €106 million – which reduced its net debt balance to €208 million, i.e. 28% lower than the figure last year (€291 million).

That left the ratio between net debt and net equity at 29%, compared with 46% last year. (…).

Original story: Fianzas

Translation: Carmel Drake

Quabit’s Losses Decreased By 45% In H1 2016

16 August 2016 – Expansión

Quabit has closed the first half of the year with a net loss of €3.29 million, representing a reduction of 45% compared with H1 2015. The firm chaired by Félix Abándades has multiplied its revenues five-fold, to €21.1 million, and has reduced its net debt by 4% to €216.8 million as at the end of June.

The real estate group recorded gross operating losses of €3.45 million, which represents a reduction of 41% with respect to the negative balance recorded during the same period in 2015.

Quabit – which is in the middle of a five year business plan – underlined the fact that both the generation of revenues as well as of profits will “happen gradually” as its residential projects progress. They have a maturity period of between 24 to 36 months, which means that, during the first two years of the plan, the company’s EBITDA will remain negative.

The group added that, during this period, it will be possible to obtain profits through discounts on its debt and the gradual activation of tax credits. Quabit has agreed payment conditions on its debt that will allow it to register profits from discounts on its debt amounting to €55 million. It also has unregistered tax credits on its balance sheet amounting to €183 million.

On Friday, the company’s share price fell by 0.31% on the stock exchange to €1.74.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Meliá Generates Profits Of €45M In H1 2016

2 August 2016 – Expansión

The hotel chain earned €45 million during the six months to June and reduced its net debt by €213 million.

The hotel chain Meliá, which will join the Ibex next week, replacing FCC, doubled its profits during the first half of the year, to €45 million. The company has highlighted that the 123% improvement in net profit has been generated even without the sale of any assets.

The company owned by the Escarrer family increased its average revenue per room (RevPAR) by 9.4% – or by 14.2% if we include the assets under management in its portfolio – and whereby recorded six years of consecutive quarterly increases.

The company closed the first half of the year with operating income of €856 million, 0.4% lower than in the same period in 2015. If we strip out the effect of gains from the sale of assets last year, operating income increased by 5.7%.

By geographic region, RevPAR in America was lower in H1 2016 than in H1 2015, which the company explains was due to the impact of the depreciation in the Canadian dollar, the economic deceleration in Brazil and Argentina, changes in reservations due to the Zika virus and the good temperature in the USA and Canada, the main issuing markets. By contrast, the company highlighted the strong performance of hotels in the Mediterranean and Caribbean, with a RevPAR increae of 30.9%.

In terms of the financial situation, Meliá decreased its net debt by €213 million during the first six months of the year, bringing it down to €556 million at the end of June, thanks primarily to the early conversion of a convertible bond issued in 2013.

The Vice-President and CEO of Meliá, Gabriel Escarrer Jaume, stated that the repositioning of its hotels, investment in assets and strategic markets, as well as financial strengthening have allowed the group to return to the Ibex thirteen years later.

The company is “optimistic” about the performance of its hotel complexes during the third quarter and its urban hotels during the second half of the year. In the same way, it forecasts a favourable “albeit unequal” performance across its “European hotels”, influenced by the world environment, especially France, in the face of the heightened terrorist threat. In terms of America, the firm expects a boost with the opening of several new hotels: Innside New York Nomad, ME Miami and Meliá Braco Village (Jamaica).

At a conference with analysts, the company made reference to Brexit explaining that it does not expect any impact in the short term, given that Britons have already booked their holidays for 2016, and some have even booked for next year.

Original story: Expansión

Translation: Carmel Drake

Realia Multiplies Profits By 9x To €130M In H1

28 July 2016 – Expansión

Realia generated net profit attributable to the parent company amounting to €130 million during the first half of the year, which represents an increase of almost 9x with respect to the €14.9 million registered in the same period last year.

This strong increase in earnings comes even though gross operating profits (EBITDA) rose to a lesser extent, by 3%, to €19.7 million, and operating income fell by 1% to €49.6 million.

In a statement to Spain’s National Securities and Exchange Commission (CNMV), the company explained that the net result reflects a positive impact of €113 million thanks to discounts associated with the refinancing process.

Specifically, €72 million came from the refinancing of residential debt, and a further €41 million was financed by a shareholder loan acquired by Inversora Carso from Sareb.

Without these items, to which a positive impact of €9.3 million can also be added, arising from the variation in the value of real estate investments, the net attributable profit would be €11.1 million, compared with €6 million in the same period in 2015.

Realia’s real estate assest have a combined surface area of 404,807 sqm, whilst the occupancy rate of its assets amounts to 91.8%, up from 90.6% in the first half of 2015.

The slight decline in half yearly income was due to a 6% decrease in contributions from the real estate business, which fell by €2.6 million, due to the empty Los Cubos building.

Debt

The company also recognised net financial debt amounting to €890 million at the end of H1 2016, down by 18% compared with the end of H1 2015.

Realia reduced its gross financial bank debt by €762 million to €927 million as at 30 June 2016, down by 45% compared with the same period last year.

The net financial result amounted to €109.1 million, after applying the discounts amounting to €113 million, explained the company in information sent to the market supervisor.

Original story: Expansión

Translation: Carmel Drake

Blackstone To List Its Socimi ‘Fidere Patrimonio’ On MAB

25 June 2015 – El Mundo

Blackstone is going to list Fidere Patrimonio on the Alternative Investment Market (‘Mercado Alternativo Bursátil’ or MAB). The Socimi was constituted with a stock of social housing purchased by  the private equity firm in Madrid in recent years. The shares in the new Socimi will start trading on Monday 29 June, at €21.08 per share. This price represents a company valuation of €212 million.

Blackstone created Fidere Patrimonio with a portfolio of 23 social housing developments (rental properties), containing 2,688 apartments, which the fund has bought over the last few years, mainly in the Community of Madrid. (…).

With this IPO on the MAB, Blackstone seeks not only to comply with the rules governing Socimis, but also to acquire a financing mechanism for raising funds, which will to drive the future growth of the company, and will also “raise the company’s profile and attract new shareholders”.

In this sense, Fidere Patrimonio says that it will focus its investment policy on new companies with real estate portfolios owned by Blackstone’s investment funds and on “analysing new investment opportunities that arise in the market”.

‘Solvent’ tenants

However, the Socimi has said that, for the time being, it will focus on managing its current portfolio of homes “with the aim of increasing shareholders’ returns”. To this end, it has revealed that its leasing policy for social housing is based on “selecting tenants who are economically solvent and who have long-term visibility over their income”, in order to increase the occupancy rate of its homes.

Specifically, the company asks its tenants to provide their last two payslips and then checks that the percentage rental spend will not exceed 40% of their (respective) salary; it also performs checks to confirm that prospective tenants are not registered on Asnef’s credit black list. (…).

Blackstone’s Socimi is aiming to secure an occupancy rate of between 80% and 95% for its housing stock, compared with its current rate of 76% and the 2014 year-end rate of 68%.

Profits and dividends

Meanwhile, Fidere Patrimonio closed 2014 with a net profit of €1.6 million, whereby overcoming the “losses” that it had recorded in the previous year. The Socimi’s turnover amounted to €5.54 million, of which €4.6 million was generated by the social housing in Madrid that the fund purchased from the EMV.

In terms of financing, the firm has financial net debt of around €65.7 million, equivalent to 22% of the market value of its assets. The company considers that this “reduced” leverage will encourage the payment of dividends.

Original story: El Mundo

Translation: Carmel Drake