Rental growth pushes Axiare's profits up 36%

The Spanish Socimi's EPRA NAV climbed to €15.3, up 11.4% compared to six months ago, and 61.9% higher than at its initial listing on the Madrid Stock Exchange in July 2014.

'The rental market is beginning to pick up speed, and we are witnessing levels of demand and rental growth unseen since the end of the economic crisis. The lack of grade A space in the market is causing rents to rise and Axiare Patrimonio is well positioned to capture a large part of this demand,' commented Axiare’s CEO, Luis López de Herrera-Oria.

Rental activity
Recently Axiare reported successfully letting the five properties that it had started to reposition in 2016, inking 24,253 m2 of deals, and thus becoming Spain's largest REIT in terms of office space leased in the capital in the second quarter of the year. Rents achieved were 7.1% higher than those estimated by the valuers in December 2016.

The Socimi also let 77,180 m2 of logistics assets in the first six months of the year, which, coupled with the office space let, equates to 105,918 m2 let across the two sectors. Occupancy in Axiare’s investment properties at 30 June 2017 stood at 92.3%, 520 basis points higher than in December 2016.

Based on these figures, the company's portfolio increased to €1.71 bn, a 9.1% increase on the past six months, and a 33.3% increase on acquisition price.

2017 milestones
So far this year, Axiare has acquired six office and logistics properties in Madrid and Barcelona, all of which are located in strategic locations, for a total of €215 mln. The company also has €100 mln of negotiations at an advanced stage.

The firm is currently working on the refurbishment of four office buildings totalling 49,202 m2 in Madrid and Barcelona, and two logistics projects covering 76,816 m2.

Axiare recently became the first Spanish Socimi to join the Royal Institution of Chartered Surveyors (RICS).