COLONIAL affiche un b?n?fice net de 52,8 millions d'euros pour le premier semestre 2006

Résultas 1er semestre 2006

- En six mois, la valeur des actifs du Groupe augmente de 12 %, atteignant 6 815 millions d'euros, et la valeur liquidative (NAV) augmente de 17,8 %, jusqu'à 53,31 euros par action.

- Les résultats du premier semestre sont favorisés par les principales activités du Groupe: les revenus de location sont en progression de 13,3 %, atteignant les 140,2 millions d'euros et le ventes de promotions arrivent à 109,9 millions, c'est-à-dire une augmentation de 43,7 %.

- Une évolution favorable du marché des bureaux stimule le taux d'occupation des immeubles du Groupe qui atteint 97,6 %.

- Colonial possède un excellent portefeuille de projets d'immeubles à louer qui atteignent au total plus de 260 000 m2, avec un investissement estimé qui dépasse les 300 millions d'euros.

- L'action Colonial a augmenté de 30 % au cours du premier semestre 2006.

Results

Barcelona, 24 July 2006.- The Colonial Group posted €52.8 M profit for the period up to June 2006. This decline from the €230.4 M reported in the same period the previous year was attributable to smaller asset disposal revenues — with H1 2005 seeing the non-recurring sale of the Barcelona 2 property complex — plus an absence of land sales in the first half of this year.

Despite the decrease in non-recurring revenues, it is worth highlighting H1 2006's positive contribution from the Group's recurrent businesses of rentals and residential development. In this respect, Colonial's rental income totalled €140.2 M, or 13.3% up on 2005. The development business's €109.9 M in revenues, meanwhile, represented a 43.7% advance. The result of all this was to leave the Colonial Group's first-half revenue at €298.4 M.

Asset value of €6,815 M

Colonial's strategy of taking positions on central business districts' high-quality office buildings has been rewarded by the asset type's growing appeal to investors. This was reflected by large growth in the Colonial Group's property asset values, which ended June 2006 worth €6,815 M, or 11.8% more than in December 2005.

Of this amount, €5,617 M (82%) relates to rental business assets, located exclusively in the markets of Paris (56%), Madrid (25%) and Barcelona (19%). The remaining €1,198 M (18%) corresponds to the residential development and land activity.

In addition, unrealised capital gains on the assets valued totalled €2,082 M, or a 52.5% increase on the Group's cumulative capital gains at the end of H1 2005.

The Company's net asset value before tax — obtained by adding unrealised capital gains to Group consolidated equity — totalled €3,182.1 M on 30 June 2006. Accordingly, the gross NAV per share came to €53.31, having increased by 17.8% in the first six months of 2006 and by 31.2% against the same period in 2005.

Rental business

Rental income rises by 13.3%

The Colonial Group's rental income equalled €140.2 M, some 13.3% more than H1 2005's €123.7 M. Most of the revenues (87%) were generated by office buildings, which are located exclusively in the three markets where the Colonial Group is present: Paris (56% of revenues), Madrid (24%) and Barcelona (the other 20%).

Favourable rental income trends have unfolded as part of a gradual upturn in the central business districts' office markets of Madrid and Barcelona, cities where buildings owned by Colonial are nearly fully occupied. This has enabled the Group to achieve a 97.6% occupancy rate in its buildings, significantly up from the 92.3% at end-June 2005.

Near 1.4 M m2 in lettable surface area

The Colonial Group's commercial activity in H1 2006 took concrete form in contracts signed for around 62,000 m2. Some 38,000 m2 of this relates to renewals of existing agreements, while new contracts for surface area entering operation in the six months related to 24,000 m2.

The new rental agreements signed in the first half of 2006 include the entry into operation of Barcelona's Torre Marenostrum building. This has more than 22,000 m2 above ground surface area, 553 parking spaces and is to be fully occupied by the Gas Natural Group.

As a result, the Colonial Group ended June 2006 managing a total surface area of 1,388,790 m2, of which 80% relates to office buildings, 11% to logistics parks and the other 9% to retail premises and residential rental assets.

€177 M investment and over 260,000m2 of projects in progress

The Group invested €177 M in rental buildings in H1 2006. Most of this (€105 M) was for the acquisition of the Philips building in Madrid at the junction of the M30 and the Avenida de América. Colonial has also earmarked €28 M for the purchase of a plot in Barcelona's 22@ technology district, a space where it intends to develop an office complex offering nearly 21,000 m2 in surface area.

Since the end of H1, in addition to these investments, the Colonial Group has invested €94 M via its subsidiary Société Foncière Lyonnaise (SFL) in buying a building at 247-251 rue Saint Honoré, Paris, located in one of the French capital's most prestigious quarters.

These new investments have increased the portfolio of rental building projects that the Group is currently implementing. This itself includes 11 office buildings, a retail centre and a logistics park, spread across the three markets where Colonial is present and covering 260,000 m2 in surface area and around an estimated €300 M in investment.

Residential development and land business

Book sales of housing totalled €109.9 M in the period, some 43.7% more than end-June 2005's €76.5 M. Meanwhile, the residential development and land business's Ebitda totalled €39.0 M. This was less than H1 2005's €70.2 M, due to the absence of land sales in the first half of this year, in contrast to H1 2005.

Commercial sales of housing between January and June 2006 came to €106.9 M. This covered 321 homes, an increase on the 316 apartments sold in the same period in 2005. The healthy rate of sales seen in preceding quarters was maintained in the first half of 2006, thanks to success with developments the Group is marketing in Vallecas (Madrid) and Sant Cugat (Barcelona)

The pre-sales stock to be booked in future quarters now totals €351.4 M, a figure equivalent to more than 1.5 years of book income.

Lastly, the land bank at end-June totalled 822,000 m2, located mainly in Catalonia and Madrid.

Other information

Financial structure

The Company's net debt ended the first half of 2006 at €2,863 M. This represents a more than comfortable 42% ratio of debt to the market value of assets, a figure 20 percentage points less than the Group's 62% on acquiring SFL in June 2004.

Dividend and stock market information

Around 26 M Colonial shares were traded on the securities markets in the first six months of the year, with an average daily volume of 206,000 securities. At end-June, the absolute gain in Colonial's share price since end-2005 was 30%, while the Ibex 35 and the EPRA benchmark of euro zone real estate companies respectively grew by 8% and 11% in the period.

Inmobiliaria Colonial's General Meeting of Shareholders on 24 May 2006 adopted the distribution of a €0.70 final dividend per share, paid out on 31 May 2006. This figure represented a 15.5% increase on the final dividend for the previous year.

Taking into account the interim dividend paid in October 2005 (€0.410), Colonial has distributed a total of €64.8 M in dividends from profit for the period in 2005, some 20.4% more than the amount distributed for 2004.

For more information: Company Press

Colonial Burson-Marsteller

Albert Casajuana Izaskun Martínez

Tel: + 34 93 404 85 73 Tel: + 34 93 201 10 28