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Italy's Coima Res more than doubles FFO to €17m, to focus more on Milan

Manfredi Catella, © D.R.

Milan-based REIT/SIIQ Coima Res more than doubled 2017 recurring FFO to €16.8m from €6.2m in 2016 on gross assets worth €619.7m, up from €526m. It will propose a dividend of €0.27 per share, and said this year it intends to focus even more strongly on its home town.

In a results release, Coima Res said the gross asset value of assets rose 16% last year, 13pts of this due to acquisitions and 3pts from revaluations. With an overall EPRA net initial yield of 5.3% at year end, the €105.6m in purchases last year produced a blended EPRA NIY of 5.7%. Its overall Milan exposure reached 72% of total portfolio, up from 64%, and office exposure was 75% compared to 61% 12 months earlier.

Controlled by the Catella family, headed by founder and CEO Manfredi Catella, Coima Res said it sees a strong outlook for 2018, based on a positive rental market in Milan - and will aim to generate Alpha and increase total shareholder return in the coming year. The firm has a pipeline of potential acquisitions exceeding, at €700m, its current portfolio, and said €100m of this was already in exclusivity negotiations for possible purchase. The company will this year focus on core and core-plus Milan offices, and consider co-investments in value-add opportunities and development with the Coima Opportunity Fund II, run by its sister management company.

“In 2017, we strengthened our corporate governance, increased our exposure to Milan, rationalised our bank-branch portfolio and extracted value from our properties through active asset management,” Catella said in the release. “We believe we can pursue future investments favouring .. assets able to generate capital appreciation with the potential of attractive cash-flows in the medium term. At this juncture we intend to further concentrate of our portfolio in Milan also through valorisation transactions in which our team has gained a unique track record in Italy.”

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