Colonial: Q1-26 results: CMD to clarify capital allocation strategy

Research evidence excerpt

Colonial: Q1-26 results: CMD to clarify capital allocation strategy

Equity Research

European Real Estate

15 May 2026

Colonial

Q1-26 results: CMD to clarify

capital allocation strategy First Look

Colonial printed good top line growth (+7%), driven by COL.MC/COL SM UNDERWEIGHT

occupancy improvement and pricing. Now that the disposal European Real Estate NEUTRAL

target is almost achieved and the share buyback is done, Price Target EUR 4.50

Price (14-May-26) EUR 5.38

capital allocation seems to point towards deleveraging, Potential Upside/Downside -16.3%

although investment opportunities could be discussed at the Source: Bloomberg, Barclays Research

CMD on 4 June.

Celine Soo-Huynh

Colonial has continued to show improvement in occupancy, as expected since company +44 (0)20 3134 1159

has been leasing Madnum (Madrid) and Haussmann (Paris) well, and this should continue celine.soo-huynh@barclays.com

further into Q2. There was no further colour on the leasing of Scope, the next office Barclays, UK

scheme in Paris to be completed this year. Top-line growth was decent (+7%), although Kanad Mitra

EPRA EPS was only up 1% – still on track to meet the higher end of the guidance at FY. With +91 (0)22 6175 1793

the €50m SBB completed, and 70% of the €500m disposal target achieved, it seems the kanad.mitra@barclays.com

message for now is to further deleverage the capital structure (EPRA LTV at 43%) but Barclays, UK

management also mentioned its intention to discuss opportunities at its CMD on 4th June Paul May, CFA

in Madrid. +44 (0)20 3134 1444

paul.j.may@barclays.com

Q1 results: Gross rental income at €103.5m (+7% yoy), leading to net rental income at €88m Barclays, UK

implying a 85% NOI margin (Q1 2025: 87%). LFL rental growth was reported at +4%, similar to

Eleanor Frew, CFA