Colonial (AO) | Hold | Q1 trading update: well oriented without major news

Research evidence excerpt

Colonial (AO) | Hold | Q1 trading update: well oriented without major news

News comment

Release date: 15 May 2026

Benjamin Legrand

Equity Research Analyst

Hold +32 11 49 14 71Colonial blegrand@keplercheuvreux.com

Spain | Property MCap: EUR3.3bn

Target Price: EUR5.90 Bloomberg: COL SM Reuters: COL.MC

Current Price: EUR5.38 Free float 45%

Up/downside: 9.8% Avg. daily volume (EURm) 13.1

YTD abs performance -1.6% Market data: 14 May 2026

52-week high/low (EUR) 6.29/4.91

Q1 trading update: well oriented without major news

Key points:

Colonial published its Q1 trading update yesterday evening.

The group gross rental income (GRI) came in at EUR104m over the first quarter versus EUR97m last year (+7%). On a like-for-like

basis, GRI was up +4% driven notably by Barcelona and Madrid (+11% and +4% respectively).

Recurring net profit is slightly up by 1% to EUR54.8m (EUR8.74 on a per share basis) thanks to the LFL growth, deliveries of

projects and acquisitions, offsetting the reduction in rental income associated with recent disposals, as well as higher financial

costs (from EUR18m to EUR21m).

Colonial confirms an annual EPS guidance of EUR34-35cts/share (as a reminder, 2025 EPS was at EUR34cts/share).

During the call, the management team mentioned that Barcelona was performing very well, with signed rents clearly

accelerating, driven notably by demand from AI and tech companies. The oversupply in the 22@ district is starting to disappear.

Regarding capital allocation, besides the ongoing EUR500m disposal plan, the company could consider acquisitions depending

on opportunities. However, the trend for the rest of the year is expected to remain focused on being a net seller and increasing

the disposals completed so far with additional net disposals in order to deleverage.