Third Quarter 2023

November 9th, 2023

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NEITHER THIS DOCUMENT NOR ANY OF THE INFORMATION CONTAINED HEREIN CONSTITUTES AN OFFER OF PURCHASE, SALE OR EXCHANGE, NOR A REQUEST FOR AN OFFER OF PURCHASE, SALE OR EXCHANGE OF SECURITIES, OR ANY ADVICE OR RECOMMENDATION WITH RESPECT TO SUCH SECURITIES.

2

Agenda

01 Highlights - Pere Viñolas, CEO

02 Financial performance - Carmina Ganyet, CCO

03 Portfolio and Pipeline - Carlos Krohmer, CCDO

04 Future Growth & Conclusion - Pere Viñolas, CEO

Pere Viñolas

Carmina Ganyet

Carlos Krohmer

Chief Executive Officer

Chief Corporate Officer

Chief Corporate

Development Officer

3

01 Highlights

Our Performance

1

Strong Growth in NRI,

EBITDA & EPS

2

Strong Letting Volume & Outstanding Occupancy

3

Rental Growth &

Pricing Power

4

Disciplined Capital

Structure

  • +11% Net Rental income like for like, leading the sector
  • +13% Recurring EBITDA growth reaching €233m (vs €207m in 09/2022)
  • +8% growth of recurring EPS reaching €23.8cts per share
  • More than 113,000 sq m signed YTD equivalent to €49m annualized rents
  • Outstanding Group occupancy at 97%, with Paris fully let at 100%
  • Professional services firms and luxury brands leading tenant demand
  • Contracts signed in 3Q with +11% ERV Growth1 (Paris offices +12%)
  • Acceleration of rental growth and solid capture of indexation
  • Colonial's low carbon assets attracting high quality tenants at maximum rents
  • Disposals of €100m in 3Q23 (2) with 12% premium to GAV
  • Capital recycling through disposals: €574m sold YTD at appraisal value
  • Liquidity of €2,733m, +€593m vs.09/22
  • Hedging strategy ensuring interest rates below 2.5% in the long term
  1. Rents signed in 3Q 2023 vs 12/22 ERV

(2) Includes disposals signed in October

4

01 Highlights

Solid tenant trends in prime European offices

Colonial's strategy is focused on prime CBD assets outperforming the market

Strong demand for prime assets in city center

Increasing European demand with positive momentum for grade A assets

Tenants in search of high-quality space

Move outs in older stock with tenants searching for better places

Large demands are back in Paris

It is the segment with better performance in volume & price Looking for quality and location with limited space reduction

Increased polarization based on quality of asset

Companies looking to increase productivity attracting users to new grade A quality offices

High ESG certification key for capturing take-up

Grade A vacancy at record levels in CBD

Paris with grade A vacancy in CBD 0.3%

Barcelona & Madrid with grade A vacancy in CBD < 2%

Tenant demand concentrated in prime assets

9M 2023 Letting performance

> 113,000 sqm

€49m

+11% ERV1

Signed

Ann. Rents

Growth

Velazquez 86D:

Last floor signed at record rent of €41/sqm/month

Washington Plaza

Current tenant taking up additional space at €1,000/sqm/year

#Cloud.Paris:

12-year lease signed with a luxury goods company (>9,000 sqm)

Galerie des Champs-Elysées

7-yearnon-cancellable turnkey lease signed with Adidas (>3,400 sq m)

Sources: CBRE, JLL and CW 3Q23 reports for Europe France and Spiain

  1. Rents signed in 3Q 2023 vs 12/22 ERV

5

01 Highlights

The Best Office Product delivers outperformance on occupancy levels

  1. Colonial has one of the highest occupancy ratios in the sector thanks to its prime positioning
  2. Colonial's prime assets are fully benefitting from the polarization trend and scarcity of grade A product in the market

PARIS

MADRID (Inside M-30)

Occupancy by sub-market

Colonial

100%

100%

CBD Market1

98%

100%

La Défense

85%

Market1

100%

100%

99%

100%

100%

100%

100%

100%

QCA

100%

100%

100%

100%

Occupancy by sub-market

70%

Colonial

100%

97%

91%

CBD Market1

95%

Outer M-30

82%

100%

Market1

100%

100%92%

93%100%

100% 92%

100% 100%

89%

93%

100%

100% 100%

100%

100%

100%

project 100%93%

  1. Source of Market data: CBRE

6

01 Highlights

The Best Office Product delivers outperformance on rental growth

  1. Colonial's portfolio is achieving outstanding rental growth, setting the benchmark for prime rents
  2. High quality clients signing the maximum rents to secure low carbon destinations in the City Centre

PARISMADRIDBARCELONA

+12%

1,000

+8%

41

+2%

29

Rental

€/sqm/y

Rental

€/sqm/m

Rental

€/sqm/m

Growth in

max. rent

Growth in

max. rent

Growth in

max. rent

signed YTD

signed YTD

2

signed YTD

3Q 231

3Q 231

3Q 231

Place de l'Étoile

Place de la

Concorde

Musée du

TourLouvre

Eiffel

Plaza de

Colón

Nearly

Net-Zero

Building

Biome | Paris City Centre

Miguel Ángel 23 | Madrid CBD

Diagonal 525| Barcelona CBD

(1)

Offices rents signed in Q3 2023 vs 12/22 ERV

7

(2)

Signed in October 2023

02 Financial performance - Strong Cash Flow & Resilient Values

Strong top-line results driving profitable growth

02 Financial Performance - Strong Cash Flow & Resilient Values

The Best Office Product delivering outperformance

Strong Cash Flow

Solid Balance Sheet Strong Operations

Recurring Net Profit

€129m

+19%

+8% Continued

Operations1

Group Occupancy

97.4%

+168 bps

Vs. 12/22

S&P Credit rating

Confirmed2

    1. +
      Stable Outlook
  1. Adjusted for the impact of asset disposals

Recurring EPS

€23.8 Cts/sh

+19%

+8% Continued Operations1

Letting volume

113,285 sqm

Liquidity

€2.7bn

+€593m

Vs. 09/22

Recurring EBITDA

€233m

+19%

+13% Continued Operations1

Pricing Power -

Indexation

+5%

Group

Debt at Fixed Cost

100%

Revenues

€279m

+7% +8% LFL

Pricing Power -

Rental growth

+11%

ERV3

Vs. LY

Cost of Debt

1.72%

  1. Standard & Poors has confirmed its BBB+ Stable outlook credit rating for Colonial after its annual review in the 3Q 2023
  2. ERV Growth vs 12/22

9

02 Financial Performance - Solid Cash Flow Growth

Strong profitable growth on all metrics

STRONG INCREASE IN NET RENTAL INCOME DRIVING SOLID EPS GROWTH

GROSS RENTAL INCOME

NET RENTAL INCOME

RECURRING EBITDA

€m

€m

€m

279

+8%

+11%

262

Like-

Like-

+19%

for-like

261

for-like

Continued

Operations1

237

233

207

+7%

+10%

+13%

9/ 22

9/ 23

9/ 22

9/ 23

9/ 22

9/ 23

RECURRING NET PROFIT

€m

+19%

Continued

Operations1

129

119

+8%

9/ 22

9/ 23

  1. Adjusted for the impact of asset disposals
  2. Recurring EPS

EARNINGS PER SHARE (EPS2)

€cts/share

+19%

Continued

Operations1

23.8

22.1

+8%

9/ 22

9/ 23

10

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Disclaimer

Inmobiliaria Colonial SOCIMI SA published this content on 09 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 November 2023 12:01:56 UTC.