Inmobiliaria Colonial SOCIMI S A : 2Q 2021 Results

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Net Profit of €162m, +€188m vs. the previous year

Solid results with a return to growth through prime positioning

• Net profit of €162m, +€188m vs. the previous year
• Recurring EPS of €11,14cts/share
  Recurring EPS like-for-like of €16.37cts in line with the previous year
• Asset value of €12,017m, +3% like-for-likeyear-on-year (+5% like-for-like in Paris)
• Increase in net asset value (EPRA NTA) up to €5,774m, €11.36/share
• Gross Rental Income of €155m, +2% like-for-like vs. the previous year)
• Letting volume of more than 59,500 sqm, +42% vs. the previous year
• Strong growth in signed rent with +14% release spread

Madrid, 29th July 2021

First Half Results 2021

The Colonial Group closed the first half of 2021 with a net profit of €162m, +€188m compared to the previous year. The recurring earnings of €57m, a lower figure compared to the first half of the previous year, reflects the impact of the disposals and the acceleration of the renovation program.

Stable net recurring like-for-like results with an EPS of €16.37cts/share

Excluding the effects of the active management of the portfolio, the Comparable Recurring Net Profit amounts to €83m, in line with the previous year.

The recurring results per share in the first half of 2021 amounts to €11.14cts per share. The impact of the decrease in rents due to non-strategic disposals and indemnities was (€3.38cts) per share and the impact of the tenant rotation in the renovation program was (€1.84cts) per share. Consequently, the

Comparable Recurring Net Profit 1 per share was €16.37cts per share, in line with the previous

year's recurring result.

1. Recurring results excluding non-strategic disposals and the impact of the renovation program tenant rotation and other non-like-for-like items

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Gross Rental Income and Net Rental Income (EBITDA Rents)

Colonial closed the first half of 2021 with €155m of Gross Rental Income and Net Rental Income (EBITDA rents) of €143m.

The Gross Rental Income in the first half of 2021 decreased by (13%), mainly due to the disposal of non-strategicassets carried out in 2020 and the beginning of 2021, as well as to the acceleration of the renovation program to reposition assets. This active management of the portfolio has a temporary short- term impact, however it ensures a higher portfolio quality and greater value creation potential, as a result of the repositioning of each asset.

In like-for-liketerms, adjusting for investments, disposals and the effect of the projects and assets under repositioning, the Gross Rental Income has increased by +2% compared to the same period of the previous year.

The Net Rental Income (EBITDA rents) increased by +2% in like-for-like terms

This increase in Net Rental Income like-for-like was driven by an increase in the Paris portfolio of +5.3%, which compensated for a temporary correction in the Barcelona portfolio.

The Madrid portfolio slightly exceeded the previous year at +0.3% like-for-like.

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Gross Asset Value of €12,017m +2% like-for-like in the first half of 2021 (+3% like-for-likeyear-on- year)

The gross asset value of the Colonial Group at the close of the first half of 2021 amounted to €12,017m (€12,655m including transfer costs), showing an increase of +3% like-for-like compared to the previous year. The growth registered in the first half of 2021 corresponds to +2% like-for-like.

Including the impact of the disposals registered in the first half of 2021, the asset value has remained stable.

In Paris, the value of the portfolio increased +5% like-for-likeyear-on-year (+2% in 6 months), based on the resilience of the prime portfolio in Paris and the progress in the project pipeline.

In Spain, the office portfolio increased +2% year-on-year. Of special mention is the increase in value of the portfolio in the first half of 2021, with +4% like-for-like in Barcelona and +3% like-for-like in Madrid. These increases are based on the strong positioning of the portfolio of assets in the city centre and CBD, together with the successful delivery and management of projects.

The first half results set the Colonial Group return to growth with a solid revaluation of its prime assets and like-for-like EBITDA growth

Colonial closed the first half with a Net Tangible Assets (NTA) of €5,774m, corresponding to €11.36/share. This figure sets the Colonial Group's return to growth and reflects the growing polarization of the investment and rental markets towards top quality prime assets, versus secondary assets.

This increase of NTA was based on an significant value creation, both in Paris and Spain, which saw an increase of €0.27/share and a recurring result of €0.11/share, increasing the NTA previous to the payment of dividends and the Liability Management up to €11.66/share (+3.5% vs 12/20 and + 4.1% year-on-year). The NTA in June 2021 was €11.36/share, +1.5% year-on-year once the paid dividend and the Liability Management were deducted.

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Including the dividend approved at the Annual General Shareholders Meeting on 30 June 2021, which amounted to €0.22/share (+10% vs the dividend paid the previous year), the Total Shareholder Return amounted to +2.8% in 6 months.

1. Total shareholder return understood as NTA (NAV) growth per share + dividends
2. Paid dividends, Liability Management, and other impacts

Among the main aspects that explain the growth of the NTA, it is important to highlight:

1. Positive like-for-like growth in the first half of 2021, for the entire portfolio of the Group
2. Successful management of the project portfolio with high levels of pre-letting
3. Resilient execution of the contract portfolio, exceeding ERV's of the previous year
4. A favorable situation in the investment markets for prime assets, enabling disposals with a double- digit premium on GAV.

Resilient operating fundamentals

1. Increase in take-up levels compared to the previous year

At the close of the first half of 2021, the Colonial Group had signed 57 rental contracts in the office portfolio corresponding to 59,784 sqm. This level of activity exceeded the letting volume of the

previous year by +42%.

If we take into consideration the prices of signed rents, the volume of annualized rents of the contracts signed in the first 6 months of the year amounted to €28m, an increase of +71% compared to the

volume of rents signed in the same period of the previous year.

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2. Solid increases in signed rental prices

In the second quarter of the year, the Colonial Group signed high rental prices, continuing with the solid activity reported in the first quarter of the year.

The maximum rents signed in the portfolio of the Group reached €35/sqm/month in Madrid and €28/sqm/month in Barcelona. portfolio clearly sets the benchmark for prime in each of the markets

€930/sqm/year in Paris, as well as With these price levels, Colonial's in which it operates.

1. Signed rents on renewals vs previous rents
2. Signed rents vs ERVs at 31/12/2020
3. GHG SCOPE 1+2 (Intensity KgCO2e/m2)

Capturing rental prices above market rents as of 12/20

Compared with the market rent (ERV) as of December 2020, signed rents increased by +6% in the first

half of the year.

Highlighted is the Paris portfolio, where the rents increased by +8% versus market rents. In Spain, in the Madrid portfolio, the rents increased +6% vs. the market rents (+10% in the second quarter), and in Barcelona, the prices were signed at +2% higher than the market rent (+4% in the second quarter).

Double-digit increases in release spreads

The release spreads (signed rental prices vs. previous rents) signed in the first half of the year have reached a high double-digit level of +14%. These ratios highlight the reversionary potential of Colonial's contract portfolio with significant improvement gap on current passing rents. Worth mentioning is the high release spread in the Barcelona portfolio of +25%, as well as the solid increase in Madrid

of +9%.

Colonial's portfolio is able to attract maximum rents given the prime location, high quality and efficiency levels of the assets and lowest carbon footprint ratios in the market. Specifically, the average carbon emission intensity of the assets that were signed in the first months of the year reached 5 kgCoe2/m2 (carbon intensity in Scopes 1 & 2), one of the most eco-efficient of the sector in Europe.

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