Colonial SFL shares drop after Q3 results show occupancy decline

Investing.com -- Colonial SFL shares fell 4% on Friday after the company released its third-quarter results showing a decline in occupancy rates despite growth in rental income.

The real estate group reported EUR296 million in gross rental income for the third quarter, representing a 1% increase year-over-year and a 4.7% rise on a like-for-like basis.

Recurring net profit reached EUR156 million, 6% higher than the same period last year. However, on a per-share basis, recurring earnings declined to EUR24.9 per share compared to EUR25.9 last year, primarily due to the EUR622 million capital increase completed in June 2024, which added approximately 16% more shares.

The company’s occupancy rate fell to 91%, down from 95% at the beginning of 2025 and 94.5% in the previous quarter.

Colonial SFL’s EPRA loan-to-value ratio increased to 47.0%, compared to 45.6% in June 2025 and 41.4% in December 2024. To address this rising leverage, the company plans to sell EUR500 million in assets over the next two years.

The company also narrowed its 2025 earnings per share guidance from a previous range of EUR32-35 cents to EUR33-34 cents.

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