Colonial SFL Revenue Rises 5%, Reaffirms EPS Guidance at 34–35 Cents
Key Facts
Colonial SFL reported on November 12, 2026, its financial results for the nine months ended September, recording year-on-year increases in rental income and recurring net profit, and reaffirmed 2026 EPRA earnings per share guidance of 34–35 cents. Rental income was 310.5 million euros, up 5% from the same period a year earlier. Recurring net profit also rose to 161.7 million euros, up 4%. By contrast, net profit attributable to the group fell to 280 million euros from 293 million. The results reflect two different trends in the company's performance: improvement in rental income and recurring profit, against a decline in reported net profit.
The company attributed the growth in recurring profit to higher like-for-like portfolio revenue and contributions from projects newly brought into service. It said those two factors offset the impact of disposals during the period and higher financing costs. On a like-for-like basis, revenue rose 4% overall, growing 10% in Barcelona, 6% in Madrid and 2% in Paris. The differing city growth rates indicate that the group's growth was not evenly distributed across its three markets. By city, Paris generated 185.7 million euros in revenue, up 1%, while Madrid generated 84.4 million and Barcelona 40.4 million, each up 12%.
Leasing activity covered 94,233 square meters under signed contracts through the end of the third quarter. This included 41,076 square meters from renewals and reviews of existing contracts, while newly leased or re-leased space totaled 53,157 square meters. The new and re-leased space was concentrated mainly in Madrid, at 21,224 square meters, and Paris, at 20,895 square meters. Portfolio occupancy rose to 94% at the end of the third quarter, an increase of 199 basis points over the nine months. Occupancy was 96% in Madrid and 95% in Paris, compared with 84% in Barcelona.
The company cited its concentration of assets in business districts as context for its rental results, saying 97% of its revenue comes from assets in central business districts of major European cities. At the end of the third quarter, 85% of the portfolio's space was operational, with the remainder comprising projects and refurbishments. Alongside revenue growth, recurring net finance expense rose to 69.6 million euros from 59.1 million in the year-earlier period, an increase of 18%. The average cost of net debt also rose to 1.95% in September from 1.78% in December 2025. The company said higher financing costs were among the factors offset by increased like-for-like portfolio revenue and contributions from new projects.
Net debt stood at 4,907 million euros in September, down from 4,973 million in December 2025. Total liquidity reached 2,275 million euros, compared with 2,235 million in December, while the proportion of fixed-rate or hedged debt was 100%. These metrics support the funding and liquidity picture underpinning earnings guidance, with the cost of net debt remaining above its level at the end of the previous year. Colonial SFL reaffirmed its 2026 EPRA earnings per share forecast of 34 to 35 cents. It also set guidance of 39 to 41 cents for 2028, according to its third-quarter results presentation.
The company is scheduled to meet investors in the days and weeks following the results announcement. Its calendar includes a European real estate conference organized by Kepler Cheuvreux in London on November 13, 2026, followed by a BNP Paribas investor conference in Paris on November 17. The investor calendar also lists a UBS real estate conference in London on December 2, 2026. These dates follow the results announcement and reaffirmation of annual guidance, while the performance figures disclosed remain cumulative through the end of September. They combine revenue and recurring profit growth and improved occupancy with a decline in net profit attributable to the group.