I would now like to introduce Mr. Pere Viñolas, CEO of Inmobiliaria Colonial. Please, sir, go ahead.
Thank you. Good afternoon. This is Pere Viñolas speaking, CEO of Colonial. I have with me Carmina Ganyet, Chief Corporate Officer, and Carlos Krohmer, Chief Corporate Development Officer. And it's a pleasure to be with you again, to present our results for the first quarter of 2024. First of all, maybe a qualitative comment before entering into numbers to share with you how we see markets, and in particular how we see Colonial in this first three months of the year. I would say, to summarize, that we remain with a perception of strong demand, a strong demand that it's mainly focused on premium space in prime locations, basically driven by a trend of clients whose strategic decisions on real estate are focused more and more on user experience. In the end, a polarization of demand.
That's what we are seeing in the market, and therefore, a widening gap between what we could say the best and the rest, no? And, and, so in other words, this demand for the best, it's more than in the past, and it's more than the rest, no? These are the two things that I would say about the evolution. Having said that, what I have to share with you is not big news because it's, as you know, those who follow us, is that this trend to strong results is something that it's not a question of weeks or a question of months. It's now a question of the last few years that we've been publishing this kind of numbers, no? Let's go into the numbers. I'm on page 5 of the presentation.
The highlights are we are starting 2024 with outstanding results on the back of this polarization. Here you can see the numbers. Then I start with the bottom line, and then I go to the top line. The bottom line for Colonial, it's an EPRA EPS of EUR 0.087 per share. That is 25% more than last year. The EPRA earnings are for this quarter EUR 47 million, obviously 25% more. And the group net profit is EUR 54.5 million, 96% more. So high double-digit profit growth would be the first comment to describe our results, no? As I said, if we have to talk about the bottom line and describe it, it means that we have to go to the top line. The revenue growth has remained strong. The revenues have been EUR 96 million, 6% more than a quarter, 18% in Paris more, no? Than the comparable quarter.
The like-for-like, which is a number that again and again, no? We emphasize to explain the difference, Colonial, is 6.3 for this first quarter. The gross rental income growth in projects for project from projects is 6.0%. This strong revenue growth comes on the back of outstanding operational performance. First of all, occupancy remains at the top end, 97.5%. That is 34 basis points more than three months ago. Still, 100% in Paris in terms of occupancy. So occupancy is great. Rental growth is great too. It's 6% in three months, no? Rental growth, it's defined as the percentage between the signed rents and the ERV available in December 2023. That's why this 6% is remarkable. The group re-leasing spread, that's 12%. The balance sheet remains solid. Financial cost remains at 1.74% stable, slightly lower than December 2023. We've been disposals on track, no?
With last year, EUR 2,000 million secured year to date at an 11% premium on gross asset value. So, they're again, no? Outperforming. And, as you may have seen, we just published very recently that S&P has confirmed the rating of Colonial, confirmed on April 24, BBB plus, which is a strong sign of healthy debt, no? If we can describe our situation in other words, even better with a picture on page 6 of the presentation, you can see the kind of outperformance that describes our situation in terms of occupancy. So you can see how outstanding the situation is in Paris, in Madrid, and in Barcelona. I think that the chart speaks for itself, no? Beyond occupation, rental growth, as I said, it remains very strong.
We've seen maximum rent signed of EUR 1,100 per square meter in Paris, maximum rent signed of EUR 40 per square meter a month in Madrid, EUR 28 in Barcelona, no? And you can see here several examples, no? Of these recent signings. But as you can see, in this slide, number 7, Paris 9% in 3 months, Madrid 3% in 3 months, Barcelona 7% in 3 months. As I said at the beginning, and I'm on page 8, there is a very strong trend of supporting prime CBD exposure. You can see how rents have behaved in the last 4 years, with coronavirus, no? issue in between. Market has gone in the direction where Colonial's playing field is. That's why we remain with a high conviction on the future of our future outlook of our exposure. This would apply for Paris. This can also apply for Madrid.
As you can see here in this page, there are two things to highlight. The first is the positive evolution in actual terms. The other is the relative evolution compared to other markets, just as a comparison, La Défense in Paris, outside, and 30 in Madrid. And of course, the explanation for that is the different levels of vacancy in both markets that have to do with the different product available. So the highlights are that the performance of Colonial in these three months has been very strong. Now let's go into the details, and let's enter into the section about final financial performance, section two. Carmina, please step in.
Thank you, Pere. In this section, as you can see, as Pere mentioned, as Colonial's prime strategy delivers this first quarter, a very strong growth in earnings, gross rental income increasing 6.2% year-on-year, 6.3% like-for-like, up to EUR 96 million, in line as well as the EBITDA growing 8% year-on-year. And consequently, the EPRA EPS, and then I will cover more details on that figure, increasing 25% year-on-year to 8.7 euro cents per share. If we go to the gross rental income, basically, the gross rental income is growing on the back of the core portfolio and project delivery, as you can see in page 11. So we have a very positive impact of the core portfolio in terms of like-for-like, growing 6%, as well the positive impact of the delivery of projects, 6%, basically López de Hoyos and Adidas.
These two positive impacts of 6% each has overcompensated the disposal program, and as well the IBM impact, that the contract was finishing at the end of last year and will become a new project, a new income for the future. Consequently, gross rental income increased 6.2 with 4% thanks to the alpha strategies overcompensating the disposal projects and the IBM rescissions and the beginning of the works on the IBM. But where has been this gross rental income, in which market, and why? On page 12, you can see that the gross rental income in a healthy number, in a healthy growth of 6%, is across markets, especially highlighting Paris with close to 8% like-for-like growth and Barcelona 8% like-for-like growth.
Basically, we have a positive impact of rental growth, 2%, above the all inflation. Additionally, we have a positive impact of 3% thanks to the indexations of our comp contracts and additionally 1.2% of occupancy. So today, in this first quarter, we present EUR 89 million gross rental income for this first quarter, increasing 6% like-for-like, 6.3%. Basically, additional impact or a positive impact of occupancy and a positive impact above indexation thanks to the pricing power of our portfolio. If we go to the EPS on page 13, you can see how this positive impact of gross rental income has been translated into the EPS growth, EUR 11 million, of the portfolio continued operations.
Additionally, we have this first quarter a positive impact on the financial results thanks active cash management overcompensating, as I mentioned, the negative impact from the disposal and the negative impact of the EBM rescissions to become a new project. So the EPS is growing 25% year-on-year in this first quarter. We maintain, as you can as you see here, the EPS guidance. It's on track, as we release in the in the our preliminary other previous press release. We continue on track in our disposal program. As you know, we have been announced a disposal program of EUR 500 million. We have been closed this first quarter the disposal of Sagasta 31. Sagasta, it's a small-sized asset, vacant with a very small floor plant, so very inefficient to refurbish in line what is the Colonial aims. So it's part of our recycling strategy.
All these EUR 200 million, including the last one, as I mentioned in Sagasta, it has been done at a premium of 11% of the last reported appraised value. So we are on track, and we are confirming valuation above the valuation, I mean, with the premium in the disposal. So thanks to this active asset management, active capital structure management, we have been reducing our debt in the last three months. Today, we have a net debt of EUR 4.7 billion, almost EUR 4.8 billion. We have consequently enhanced our liquidity. Today, Colonial has close to EUR 3 billion of liquidity, covering 1.5 times the debt that will mature between 2024 and 2026. We maintain a very stable cost of debt.
So we remain, as you know, a very appropriate and hedged policy, confirming our debt below 2%, this year. And LTV and GAV remains stable in line with what has been disclosed December 2023. So consequently, as Pere was mentioning, S&P has confirmed our credit rating with BBB+, with a stable outlook, thanks to the cash flow resilience, thanks to the strong liquidity, as I mentioned before, and thanks as well to the interest rates hedge policy that we have been sharing with you in the last quarters in the last years. Today, Colonial, as you know, we have 100% of debt fully hedged and also the pre-hedged position for the next years.
The next maturity will be at least more than 50% of our debt expiring in the future, maturing, so we can maintain this low or healthy interest cost of debt below 2.5% in the following years. We have been also as well tapping the market with EUR 200 million bonds maturing in 2029, with a private placement. Thanks again for the of the pre-hedge strategy that we have been able to to put in place, to implement. The cost of debt of the cost of this new tapping bond remains below 2%, exactly 1.9%. Thank you.
Thank you. Let's go into the next section, Carlos, portfolio management.
Thank you very much, Pere. I'm on page 18. As Pere mentioned, we have had a very successful quarter in letting operations. We've signed contracts for an annual amount of close to EUR 13 million. This is quite remarkable. If we look at the occupancy ratio where we come from three minutes ago, we were at 97%. We've increased this up to 97.5%, 34 basis points in a quarter, increasing Madrid and Barcelona the occupancy. Out of the rental activity signed, close to 60%, more than EUR 7 million, comes from the Paris activity. And these EUR 7 million have been signed and an average rent above EUR 1,000 per square meter a year, basically that we have had two large operations at a price well above 1,100 1,000. One has been signed at the level of 1,100. So really signing maximum rent in the market.
Also in Madrid and Barcelona, we have signed this quarter at the maximum level, contracts at 40 and also at 28. If we step to the next page, we see the rental growth performance. Basically, there are three interesting columns to look at. On the first, we are continuing covering indexation. The impact, annualized impact of all the indexation exercise that we've gone through the contracts in this first quarter is 5%. This is loading further growth because just a very minor part of this is embedded, is included in our first quarter P&L. Then we have signed a double-digit re-leasing spread. Basically, oh, it's to highlight Paris with +22%. We have had here deals at very high levels, at levels of 30%, 14%, and 38%, three big deals. On the rental growth, it's even more important.
We are starting the year with rents that are being signed 6% above the ERV of our appraisals at December 23. So just in three months, we have signed ERVs that are 6% above the appraisal. Again, the leading market is Paris with +9%. We have here even examples of double-digit rental growth in some assets in some of the contracts signed, Madrid +3% and Barcelona +7%. So already 6% of growth just in three months. It's quite a lot if you look at this from an annualized perspective and much higher than the percentage that we had last year at this point of the year.
Thank you. So let me now just step into the final section of the presentation with about the strategic situation and the future outlook for the company.
The summary of the performance of Colonial in the first three months of the year, as you have seen, it's a good performance. It's a better performance. That is, street talk is a better performance than one could think, in terms of demand, in terms of occupation, in terms of rental growth. So, with any criteria, it remains a very strong result, the one for the first quarter of the year. The number that shows in the end all of this strength is the EPS that grows 25% on a year-on-year basis. What's behind this number, it's that, first of all, the inflation hedge that we always emphasize that for the long run is one of the main drivers of the performance of a company. So it's not only about yields. It's about growth, driven, first of all, by inflation.
But second, it's the rental growth beyond inflation acting as a pipeline. Third, it is not only about returns coming from the existing pipeline. It's returns coming from new opportunities that add value and finally, acquisitions and the prime factor. This is what explains the performance of Colonial. On page 22, I would like to stress again because those who follow us know for a long period of time, this will not come as a surprise, is that it's not only that our performance is better than expected, it's that it's better than the rest, no. If you look at comparison of like-for-like for Colonial and a selected number of peers, you can see more or less where do we stand in terms of growth compared to peers.
And I think that, in a way, has to do with this unique positioning of Colonial that it's very important at the moment where we are decoupling the office market into different markets and showing a total different performance depending on the market, the specific market that we are talking about. Page 23 is just to highlight that, all the work that has been taking place on our project pipeline that has already been delivered allow us for an expectation of rental growth, which remains very important. The final full potential top rent generation of our portfolio stands at EUR 80 million. And out of these EUR 80 million, 80% is already secured today. There is one final project that today it's at the heart of the efforts that we are focused on, which is Méndez Álvaro.
On page 24, just a slide to comment on this. This is going very well. This is, providing EUR 19 million is to provide EUR 19 million of new rents. It's expected to deliver more than an 8% yield on cost. This project is about to be delivered in the next few months. There's only EUR 25 million pending in CapEx. Now we are in a commercial mood, in leasing mood. I think that momentum is going quite well. It's not, let's say, finished, the project, but as of today, there are signed head of terms that account for more than 20% of the surface of the available space in this unit. So I think that we are quite happy with the strong demand that this project is having, no.
This page 25, it's part of a broader view of what we can deliver, which in the end is summarized on the chart at the right of this page 25, no, which in the end, what is telling us that the passing rent that we have today of EUR 426 can be enhanced by a number of drivers, Madnum being one of them. You can see EUR 19 million coming for them, but also EUR 49 million coming for the new projects that will come from our own balance sheet that will be able to lead us to far more than EUR 500 million of rent. So, we believe that the momentum of Colonial allows for cash flow that is growing, for cash flow that is showing a strong momentum. Final comments on the page 26.
First of all, as of today, we confirm the guidance for EPS 2024 that we gave not so long ago, EUR 0.32 per share. Dividend per share is confirmed at EUR 0.20, EUR 0.27 per share, 8% growth, year for year. The disposal program remains on track with EUR 200 million out of EUR 500 million, secured as of today. Maybe a more general comment. We see real estate and capital markets closer to an inflection point. We see yields closer to a peak. We believe that we have to be conscious of cycle. We believe that it is a moment for considering reloading into growth opportunities. Always this within a framework of a strong capital structure, which always remains a very important point. It is a moment that we live in a world of interesting opportunities, no.
And the message that we would like to pass is that we are not passive, on this, no. And we are advancing on different initiatives, with attractive returns, always in the framework of a solid financial structure. And, we are sure that we'll be able to deliver news on this front, no, during the course of this, year, no. That's a more kind of qualitative message I wanted to, pass. But as a summary, what we think are a very good set of results for this first quarter, that's what we have been proud to share with you today. And now, as always, we are open for the questions you may have. Thank you.
Ladies and gentlemen, the Q&A session starts now. If you wish to ask a question, please press star five on your telephone keypad. Thank you. The first question comes from Florent Laroche-Joubert from ODDO BHF. Please go ahead.
Hi. Good evening. So thank you very much for this presentation. I would have three questions. My first question would be to come back on the investment market. I have seen your comment on the yields that are close to peak. But on the investment market, how do you see the appetite of investors? And at the end, how do you see the appraisers to value the assets at the end of June and at the end of December, compared to December 2023? So that will be my first question. My second question, so on your leasing challenges for the rest of the year, could you please say a word on the re-leasing of the Haussmann 106 in Paris, that will be free at the end of June, if my understanding is correct?
My third question would be on your comment on your well-located growth profile. So we understand that you look forward to maybe it's from acquisition opportunities. So does that mean that at the end of the year, you could be a net buyer or?
Oops. Are you there? Hello?
Let me try, to see if the participant's still in the conference. One second, please. Please, Florent, are you still in the conference?
I, I think yes. I'm still on the conference. I think I'm back. Can you hear me?
Yes, you are. You are. And I think I heard your third question is about, based on an appetite for growth and acquisition opportunities that we may.
Yes.
See if we see ourselves as a net buyer. No, that I, I don't know if that was the question.
Yes. That was the question.
Okay. Thank you. Thank you, Florian. Look, on the first question, it's true that 2024 remains a year that still challenging in many ways. It's true that investment markets have not come back on track to, let's say, a normal mood. Therefore, it remains a certain uncertainty on where they can be during the course of the year. And, as you were saying, what impact they may have on valuation in June and in December. But I would say, on our side, maybe a few comments. First, in our case, we see the repricing more having taken place in 2023 than it may happen in 2024. That's very subjective, and a personal opinion. So talking about the future, it's one of the most difficult things to do. But that's the feeling that we have.
We believe that 2024 is a year for inflection. We cannot be more precise than this. From our point of view, where we see ourselves as long-term investors, that's more an interesting point and an opportunity than a particular threat. Your second question on the Haussmann, yes, we confirm that this is a property that now needs a little bit of active management because it's becoming available. What we can say today is that the rents, or the income for this year, 2024, the way it was managed, is secured. So for the short term, there's no particular downside. For the midterm, the conviction that we have, in particular the conviction in the SFL team, is that the potential for value creation or for a stronger cash flow generation is high.
So it's a challenge, an ordinary kind of challenge that you have to manage, but with a high degree of confidence. And I'm very sure that the management of SFL is about to do a great job, as they always do in this particular situation. On the question of the growth profile, acquisition opportunities, being net buyer, net seller, it's a very, let's say, complex moment that now that we are going through because when you are in a situation where there's an inflection point at some point, but you cannot be specific, you have to do two things at the same time, which are in that can be seen as contradictory. One is do not lose the growth opportunities that may be out there. And second, remain in with a solid balance sheet.
Maybe at the day of today, I cannot be more specific, but I can say that we will be in the mood for acquisition of growth opportunities that may come from the inside of the balance sheet or from the outside, at the same time securing a strong balance sheet or stronger balance sheet. This may not mean that we are necessarily net buyers by the end of the year, but we feel this moment of a cycle as closer to being proactive than we experienced last year. Thank you.
Okay. Thank you very much.
Thank you. The next question comes from Fernando Abril-Martorell from Alantra. Please go ahead.
We are not listening to Fernando.
Fernando, your line is open.
Yes. Sorry, apologies. Thank you very much for the presentation. A few questions. First, on net debt. Net debt is down around EUR 100 million, versus December. I don't know how much of the EUR 200 million disposals are already included in this net debt. Then also linked to this, the latest disposal you've done in Madrid, the Sagasta building. So correct me, Fernando, but this is, for a, let's say, reconversion into a residential, luxury residential unit. I don't know if within your EUR 300 million, remaining, you have also more, let's say, projects, similar to this one. I mean, offices, reconverted into residential or, you know, different. I don't know if you have any visibility on the remaining disposals, you've targeted. And last, also, on the update on Madnum, so very, very strong pre-letting activity, I would say.
I don't know if you have any, any range of pre-leasing before the year-end. You've mentioned in around more than 20% is in advanced, very advanced, conversation. I don't know if you are targeting, I don't know, 30%-40% before year-end, or I don't know what's, what's included in, in your business plan.
Yes. I, I will start by these more operational kind of questions and the, divestments questions. And then Carmina can step in with comments on, the debt. So I will go in the, in the reverse order. On regarding Madnum's, it's, honestly, it's very difficult to be, more specific, no, at this moment. But because of the situation, it's, it's quite, open, no. There's a very wide range of expectations.
on page 24, we are saying, if you have seen, that we have signed 3,000 13,000 square meters of GLA in terms of head of terms. But we have high interest for 150,000. And that means that there are some conversations that are really binary. So they change completely the outlook. But we are now at the typical moment where particularly the operational team wants to be very prudent and not generate expectations on certain conversations that could completely change the outlook at the end of the year. But the only thing I can say is that we are beating our own internal expectations and that we are quite happy about where the speed that this is going and is better than we expected. But I wouldn't be able yet to give you more specific range.
Maybe in a few months, we can be more specific and more happy with a resulting number, no. You mentioned about Sagasta. Sagasta, we are in an advanced situation regarding a potential disposal. We are under exclusivity. We are under a very advanced moment of due diligence. I understand, no, but it's not for me to say that, no, that the buyer may have a look at this property in the range of reconversion to office into other kind of uses as luxury residential. But you will understand that it's more for a buyer than for us. But it's true that we saw an arbitrage opportunity here because we thought that the resi and particularly the resi in the luxury front could allow for a much higher value and that we expect to deliver in this particular site, no.
We keep on studying for any asset, any alternative. And I think that this is part of a trend where we insist a lot, no. We will listen from us that we use the term urban transformation and the word mixed use or a flex approach, no, to projects, meaning that I think that today, the evolution, the natural evolution of this is to consider a wider spectrum of users. And this is an example. But there are many. In the case of Méndez Álvaro, we have a good example of also opening our objectives to exposure to resi has been a good choice. And we can have more of this in the future. And your initial question was about the debt. Carmina, if you want to step in.
Yes. In the debt, the figure you see in the net debt is still not included, this committed disposal. So it still needs to be the net debt in the following month and in the following quarter because of the execution of this sale. Although in the loan-to-value pro forma has been included this transaction. So it's not included in the net debt, but in the figure of this loan-to-value.
Okay. Thank you very much. Just sorry. I forgot to raise another question, which is with regard to the guidance. So an obvious question, no. So you started with a very strong PPS in Q1. If we analyze Q1, you get to around EUR 0.35. So I understand that, you know, Q1 had some positive, probably, one-offs. Or do you expect things to soften throughout the year? Or so I don't know if you can walk us again through the guidance. So it may look conservative or not.
It's a mix of several things, no. First of all, more than being conservative is that at this early stage of the year, we consider maybe too soon to revise the guidance. Maybe we want to wait a little bit more. The second comment, yes, it's true that the operational performance is being very strong. But third, let's remember that we are open to different scenarios of disposals that may change a little bit the outlook. I think that this may lead us to maybe to better outlooks for the guidance in the second half of the year. But we are still not there yet, no. That's why we remain in the guidance that we gave just a few weeks ago or not so long ago.
We remain with a guidance of 30-32. Let's see what the rest of the year delivers and if in the second half, we can revisit this guidance.
Okay. Thank you very much.
Thank you, Fernando.
Thank you. The next question comes from Céline Soo-Huynh from Barclays. Please go ahead.
Hi. Hi, Pere. Just two questions for me, please. The first one is on your occupancy rate in Barcelona. It looks like it's improved this quarter. But did you include the IBM building in your reported occupancy? And the second question is that there's something that's, I've always been wondering, but why are you not selling more fronts? Why are you targeting so much space? Thank you.
Yes. Thanks, Celine. I start with the second part. And then Carlos will step in on comments on occupation in Barcelona and potential impacts from IBM. I think that in the case of France, I think that the market it's colder than we've seen in Spain until today, 2023, 2024. I think that this is a function of several things. But maybe among them, being a market of a much bigger average size for units that are in the market, the potential buyer market remains very much institutional, which is the one that has remained, let's say, more passive for the moment. Whereas if we talk of a market of a smaller size for what is available, you have a wider range of potential buyers that have been more active.
So that's why, in Spain, during 2023 and 2024, as you can see, we've believed that liquidity is there more in a more obvious way. I think that in the case of France, we still have to wait a little bit more. So, that's why we remain a little bit more cautious. Then, of course, it's also a function of going case by case, no. Regarding occupation, maybe, Carlos on, Barcelona on and on the potential future impact of IBM.
Yeah. On the Barcelona portfolio, we have had some progress. I would also like to highlight that the portfolio in the CBD is at 98%. So it's basically concentrated on three assets: Torre Marenostrum, Illacuna, and Sant Cugat. On Torre Marenostrum, we are starting to see momentum. Illacuna, we are also positive. So this would be the main comment on this. On the IBM, I think this is something that already we have started to tell to the market. We had here for many, many years IBM as a tenant on a very interesting asset that is Santa Hortensia, 46,000 square meters with super large floor plates. We are currently analyzing a new project in this asset that can be very attractive and that will have, very probably a significant reversion both on rental cash flow and also on value.
We are working on the final design, on the final plan of this asset in order to come soon to the market to disclose the details of what we're going to do there.
Thank you, Carlos.
Thank you.
Thank you. The next question comes from Ignacio Domínguez from JB Capital. Please go ahead.
Good afternoon. Thank you for the presentation and taking our questions. Just one from my side. Where do you plan to carry out the remaining disposals in 2024? Do you still plan to carry out further disposals in Madrid or perhaps carry out some in Paris or Barcelona? Thank you.
Thank you, Ignacio. We don't have a specific calendar for disposals. As you know, this disposal strategy, it's a function of maximizing what we pretend, no, is maximize the strength of our balance sheet. Also, it's a function of a real estate rationale. So selling assets that we believe that either they have become non-strategic or are too mature. And finally, it's also a function of a potential for arbitrage, meaning the gap between the price at which we are selling, which on a regular basis it's appraisal value compared to what we may see in capital markets. So these are the different drivers for sale. What is not a driver is that we need to sell, no. So we have available lines for debt for much more than the maturities for the next three years.
We have a cost of debt that is much lower than market cost of debt. And it's to remain in very low levels for a long period of time. That means that what drives our disposal strategy, it's driven more by opportunity than by specific goals that we have to achieve, no. So it's true that we provided the market with a sort of guidance of EUR 500 million. But we'll manage this objective within a range of, let's say, a very comfortable agenda. And that means that we don't expect any particular moment for disposing specific assets. I would say that in general terms, answering also your question, we would tend to see more disposals in France than in Spain, as a goal. But in the short term, Madrid remains very liquid. And Paris not yet.
So, if we had to sell something tomorrow morning, which is not the case, it would be more normal to see this happening in Madrid than in Paris. But the longer term, we expect a little bit of change in this trend. Thank you.
Thank you.
Thank you. The next question comes from Véronique Meertens from Kempen Please go ahead.
Thank you all for taking my questions. Congratulations on the solid operational results. For me, some follow-ups on the growth profile or at least the last slide of your presentation, because you mentioned you want to do it in the framework of solid financial structure. Can you maybe give some additional details on the report of S&P? I don't think there's an official report out, as in what is a comfortable range for them in terms of LTV and also maybe, what's a comfortable range for you to be in, in terms of LTV?
Okay. Maybe Carmina wants to step in on this one.
Yes. You know that, in the LTV, they look at—yes, there is a report, a public report. They look at the LTV as a debt plus debt plus equity. And they are in the range of 45, I think, in the range of BBB+ are in the levels of 45% debt plus debt plus equity. This is in line with, you will see in the report as well on the ICR metrics. They not only look at, as you know, metrics like these KPIs, in terms of loan-to-value or ICR. They look at our cash flow profile in the future.
They look at us, the maturity of all the contracts, the profile of the clients, the position of liquidity and if there is any refinancing risk, which is not our case, and as well all the hedge strategies that we have secured, confirming this low cost of debt. No. So this is an overall approach. But they have quite successfully also done some tests about the potential stress. And they have confirmed the BBB+ stable outlook.
If you allow me, Véronique, two comments on my side. I think that it's true that we've had the impression, no, in recent times that debt markets are more comfortable about debt than equity markets, no. It's very interesting, no. When you look at how bonds are trading and how, for example, rating agencies are delivering their opinions, in the case of S&P and other, it's true that when you look about the work they do and the opinion they give, they use a very wide range, no, of elements to be considered into the analysis, no, as Carmina mentioned. Having said, my second message is I would not like to give the wrong impression. We are not relaxed about LTV. We don't. No.
Want this to go higher. When I meant that we have to enter into growth opportunities within a solid fundamental framework of financial fundamental framework, that means that it always has to be with LTVs lower than what we have today and not higher, huh. So that that would be my opinion on on where the situation should be.
Okay. That's very clear. Thank you. But as a follow-up on that, because when I look at the yields, obviously, I get your point that in 2023, we've probably seen or at least stabilizing reported yields by brokers. But your prime yields are still quite far off from those reported yields by broker reports. So I would think that there will be still a small impact on your LTV from that side. Obviously, hopefully, some disposals can offset that. But I'm curious to see how acquisitions will not push that LTV higher. Or is there also a chance that you might do something in the form of a contribution in kind or different form of structures that would help your LTV?
Yes. I basically agree with your statement. So, markets are in a situation where still you see a range of indicators that it's difficult that they lead you to a clear picture. We also think that markets today are confronting not a lot of evidence coming from transactional markets. So we take quite often examples of things that are not really comparable. We tend to believe that in our case, with the assets that we own and the quality that they have, the room for deterioration is open to individual subjective opinions. But as I said before, we are more in a situation where we've done a big part of this adjustment and not the opposite.
And then, as you suggest, yes, there are a wide range of things that we can do. The market is a very interesting moment. And I think that the only message that I can pass is that we are determined and with high conviction that we have to do both things at the same time, which is take advantage of the growth opportunities that are there and deliver anything that can be done there within the range of a even stronger capital structure. But I cannot be more specific than that. But the conviction is there. And hopefully, we'll be able to deliver and to show specific examples of these in the near future.
Okay. That's already very helpful. Thank you. Maybe one last question from my side. Looking at Spain, there were at least slightly negative but practically stable re-leasing spreads. Is this something maybe specific on these assets? Or do you see a more stabilized re-leasing spreads in Spain for the rest of the year as well?
Well, basically, as I explained already in previous calls, we had a much quicker inflation pickup in the Spanish market because of the structure of the contracts. It is every single month because the inflation went much, much more rapid higher because of it's just CPI. And in France, it's the ILA. This has put the passing rents higher. But we are very, very confident that our rental growth of our product will be further pushing up the rents and so that we will have re-leasing spreads in a way more or less at the same levels of rental growth. The first quarter figures that you are seeing here are not really so representative. For instance, the figure that corresponds to the slightly negative re-leasing spread in Barcelona is just an amount of EUR 400,000 of contract activity. So it's not really so relevant.
Then we have, obviously, a very large re-leasing spread impact from our Paris activities that is super, super strong. So we are confident on this. But obviously, the short-term contracts in Spain and the evolution of the indexation and the structure of the contract that we have made that the passing rents came much earlier, much higher. And so now, it's really about year-by-year growth. The game re-leasing spreads and rental growth is, at the end, the same game in a way in Spain. And in Paris, we have a twofold game but on both levels, very, very strong. So we are very confident on this. And, yeah, that's what we can say about this today.
Okay. That's very clear and useful. Thank you very much.
Thank you, Véronique.
Thank you. Ladies and gentlemen, there are no further questions. Dear speakers, back to you.
Thank you. As I said at the beginning, a pleasure to be able to share this kind of results, with you. We hope that in the near future, we will be able to do the same again, huh. Thank you. Have a good day. Bye-bye.