Quarterly report 3Q 2024
A year ago, the Euribor reached a peak of 4.2%. Vitruvio navigated this sharp rate increase protected by maintaining the lowest net debt level of the last decade, at 15% of the property value. Beyond the effective debt management, the new Euribor levels allowed banks to offer significantly more competitive spreads. We took advantage of this by securing new financing over the past year with better spreads than before, along with the added benefit of seeing the Euribor subsequently drop to its current levels of 2.6%. These debt operations will be particularly noticeable in this second half of the year and in the profits of 2025.
On the real estate side, occupancy is strong, reaching 98% of the total leasable portfolio, with our residential properties at 100% occupancy, offices also at 100%, and commercial spaces at 98%. Our logistics segment experienced a drop in occupancy to 81% this quarter, due to the departure of a tenant. This is an industrial cold storage unit located in Mercamadrid (where food products that need to be refrigerated are stored and prepared for distribution to the city’s shops and restaurants). This type of warehouses are in high demand.
In terms of growth, Vitruvio’s cycle is once again expanding. First, because last year, despite challenging conditions, we managed to raise capital and bring in new shareholders. We now have over 700 people supporting Vitruvio’s conservative core plus approach to real estate asset management. And second, because this year we resumed property contributions, such as the one announced in June, which we will vote in a few weeks (the official announcement will be issued shortly). Additionally, we are seeing strong interest in new opportunities.
