Ktesios increases rental income by 119% in 2022
Ktesios consolidates its positioning, albeit with a certain drop in profits. The socimi has recorded an increase in its rental income in 2022 of 119%, reaching a total of 1.13 billion compared to 555,000 million in the previous year, but slightly decreases its profit compared to 2021 because of the temporary halt of its asset purchase strategy due to the uncertainty of the sector.
The company has presented its year-end results. The socimi has highlighted that its strategy of investing in assets in non-prime areas of Spain remained in high demand in 2022. The socimi managed to maintain occupancy levels above 92%, more than 20% of what was estimated in the business plan, while maintaining delinquency levels of 3.2%.
During the year. Ktesios acquired a total of 144 assets, bringing the socimi’s portfolio to 520 assets, representing a growth of 26.3% over the last twelve months. The assets, located in 26 municipalities in nine provinces, total a surface area of more than 40,000 square meters. The estimated portfolio value stands at 36.2 million euros, exceeding their purchase value by 143%.
Throughout the year, the company allocated a total of 4.8 million euros for the acquisition of assets. The increase in total assets has had an impact, as the socimi explains, on derivative expenses, which, however, have only grown by 28%, resulting in substantial cost containment.
Ktesios consolidates in 2022, despite profit decline
Ketsios closed 2022 with a negative profit of €340,000, down from the negative profit of €68,000 achieved in 2021. The decline in the year’s result was a consequence of the company’s strategy of temporarily delaying the purchase of assets, in an environment characterized by widespread uncertainty and the conflict in Ukraine, completing the planned operations in the first months of 2023.
However, the NAV with respect to the share reached €25.60, while the share value stands at €14.50. Ktesios has recorded a share appreciation of 45% and 21% since its launch (2019) and IPO (2021) respectively.
“We have recorded operating results
above our targets, highlighting
the opportunities that exist in
the affordable rental residential sector“
Henry Gallego, CEO of Ktesios Socimi stated that,“2022 has been a year of consolidation for Ktesios. We have significantly expanded our asset portfolio, conducted a tender offer for the acquisition of QPQ Alquiler Segurowhich represents the first merger of two micro-socimis in Spain, and we have recorded operating results above our targets, highlighting the opportunities that exist in the affordable rental residential sector“.
The executive also stated that“the market consensus is that there is a pressing need for affordable housing, and given the interest rate hikes, the demand for affordable rentals and, consequently, Ktesios’ investment strategy is reinforced. By 2023, we expect not only organic growth, but also inorganic growth, such as asset additions such as asset contributions in exchange for shares and the acquisition of other SOCIMIS, similar to the QPQ transaction.”