- The holding company receives €1.13 billion in dividends from its investees (+42%), thus exceeding all dividends received in 2023 in just six months of 2024. CriteriaCaixa expects to exceed €1.6 billion in dividends by the end of 2024.
- The positive performance of both the strategic portfolio and the diversification portfolio increased the net asset value (NAV) to €23.72 billion (+7.3%) and the gross asset value (GAV) to €28.76 billion (+8.4%).
- CriteriaCaixa carried out investments totalling €3.36 billion in the first half of the year, including an increase in its stake in Telefónica (9.99%), the acquisition of stakes in ACS (9.36%), Colonial (3.25%) and Puig (3.05%), and divestments amounting to €2.2 billion.
- At the end of the first half of the year, the company had a sturdy liquidity position of €1.22 billion.
- In June, CriteriaCaixa unveiled its new Strategic Plan 2025–2030, the primary aim of which is to provide a steady and growing social dividend to ”la Caixa” Foundation, thus increasing the gross value of its assets to €40 billion by 2030.
- Up to June, the holding company has paid out a total dividend of €250 million to ”la Caixa” Foundation, which in 2024 had its highest ever budget of €600 million for social investment.
Barcelona, 1 August 2024 – CriteriaCaixa, the holding company that manages the business assets of ”la Caixa” Foundation, posted a net profit of €1.27 billion in the first six months of 2024, up 77% on the same period of 2023. This has been achieved thanks to the strong performance of the dividends received by CriteriaCaixa from its investees during the period, which came to €1.13 billion, up 42% on the same period of the previous year. By the end of the first half of 2024, dividends had already surpassed the total amount paid out in all of 2023 (€1.11 billion).
The total dividends received by Criteria include those received from CaixaBank (€904 million), Naturgy (€104 million), Telefónica (€43 million), The Bank of East Asia (€11 million) and from the companies included in the diversification portfolio (€65 million). Considering the dividends collected in the first half of the year and the prospects for further dividends receivable in the second half, Criteria expects to comfortably exceed €1.6 billion in dividends by the end of 2024.
The positive performance of both the strategic portfolio and the diversification portfolio improved CriteriaCaixa’s net asset value (NAV) in the first half of 2024 to €23.72 billion, up 7.3% on the end of 2023. Meanwhile, gross asset value (GAV) gained 8.4% to €28.76 billion.
Performance of the business portfolios
CriteriaCaixa’s strategic portfolio comprises significant stakes in leading companies in which Criteria pursues active management. At the end of the first half of the year, this portfolio consisted of CaixaBank (31.17%), Naturgy (26.71%), Telefónica (9.99%), Grupo Financiero Inbursa (9.10%) and The Bank of East Asia (19.29%).
The value of Criteria’s strategic portfolio increased by €1.02 billion in the first half of the year to reach €20.62 billion. The increase was largely due to the good performance of CaixaBank’s share price (+32.7%). The portfolio included new investments totalling €1.68 billion to increase the stake in Telefónica to 9.99%, together with divestments of €599 million at CaixaBank, having monetised part of the accretion achieved in Criteria’s stake in the bank, following the retirement of treasury shares obtained through its buyback programmes.
Meanwhile, the value of the diversification portfolio amounted to €4.73 billion at 30 June 2024, comprising listed equities, fixed income securities and cash and cash equivalents. The listed equity portfolio, worth €3.72 billion, underwent a major transformation during the first half of the year. More precisely, investments totalling €1.61 billion were made, of which €1.41 billion was used to acquire a stake of 9.36% in ACS (€985 million) and a 3.05% stake in Puig (€425 million).
Meanwhile, divestments amounted to €1.49 billion, including the sale of 3.97% of Cellnex in exchange for €912 million and the monetisation of other non-controlling interests worth a total of €582 million. These latest divestments are part of the new strategy to reduce the number of invested companies from almost 80 at the end of 2023 to around 50 companies at the end of June 2024.
The private equity portfolio was worth €838 million in the first half of the year and included the 99.5% stake in Saba Infraestructuras, the 15% stake in Aigües de Barcelona and all the venture capital activity that Criteria manages through Caixa Capital Risc and Criteria Venture Capital.
The assets of the CriteriaCaixa Group’s real estate portfolio, managed through InmoCaixa (direct management), were worth €2.46 billion in the first half of the year. One of the aims of Criteria’s new Strategic Plan is to reshape this real estate portfolio by divesting geographically dispersed assets commanding below-market returns, and then reinvesting the proceeds in assets that generate recurring income with higher returns and upside potential.
The indirectly managed real estate portfolio includes stakes in listed companies such as Colonial (3.25%) and had a market value of €111 million at 30 June.
In early July, the agreement reached between CriteriaCaixa and Colonial materialised, whereby Criteria subscribed for and paid up new shares totalling €622 million in Colonial, issued through a capital increase and charged to cash contributions (€350 million) and assets (€272 million), through the contribution of certain residential and office properties. Following the deal, CriteriaCaixa’s stake in Colonial now stands at 17.32% of share capital, making it the REIT’s largest shareholder.
Financial strength
Criteria’s gross debt at 30 June 2024 came to €5.04 billion, while net debt ratio was 15.3% (€4.43 billion and 14.9%, respectively, at the end of 2023). The average cost of debt was 3.9% over the same period, with an average maturity of 2.6 years.
CriteriaCaixa has continued to actively manage its debt in a bid to obtain greater flexibility in financing new investment opportunities, both those materialised in the first half of the year and those that will arise, as it continues to pursue its new Strategic Plan.
In April, the company redeemed a senior bond worth €593 million and secured new financing through bilateral loans amounting to €1.2 billion. One of these loans, for a total of €750 million, was a bridge loan with a 3-month maturity, which the company prepaid on 1 July by signing a new syndicated loan for a total amount of €1.65 billion.
This new funding is made up of two tranches, the first being a bridge loan for a nominal amount of €1.15 billion and maturing in one year, extendable to two further committed periods of six months each. Market conditions permitting, Criteria may soon venture into the bond market to refinance this loan. The second tranche consists of a €500 million credit facility maturing in three years, optionally extendable for a further one year.
The loan enables CriteriaCaixato finance the investment opportunities it has undertaken during the first half of 2024, especially the acquisitions of new stakes in Telefónica, ACS and Colonial. It also helps CriteriaCaixa enter the second half of the yearwithcomfortable levels of liquidity, thus affording it greater financial flexibility in being able to seize any further growth opportunities that may arise, within the framework defined in its Strategic Plan 2025–2030. The company’s liquidity at the end of the first half stood at €1.22 billion, counting cash and cash equivalents (€765 million) as well as committed and undrawn credit facilities (€450 million). Following the signing of the syndicated credit facility, CriteriaCaixa has a total amount of committed and undrawn credit of €1.3 billion.
This operation also implies that the financial industry holds a positive view of CriteriaCaixa’s new growth strategy, as well as the actions envisioned in the Strategic Plan unveiled in June by the holding company. An assessment that Moody’s rating agency also endorsed a few weeks ago, when it upgraded CriteriaCaixa’s credit rating and raised its long-term issuer rating from Baa2 to Baa1, maintaining a positive outlook.
New Strategic Plan 2025–2030
In June, Criteria Caixa unveiled its Strategic Plan 2025–2030, the main objective of which is to grow the equity and dividends so as to assure the social endeavours of”la Caixa” Foundation. More precisely, the Strategic Plan aims to deliver €700 million in annual dividends to the Foundation by 2030.
This new roadmap will strengthen CriteriaCaixa’s investment in the strategic sectors of banking, energy, telecommunications and utilities; as well as boost its diversification portfolio, focusing on the technology, pharma, biopharma and retail sectors.
The Plan is designed in order for CriteriaCaixa to increase the gross asset value (GAV) of its assets to around €40 billion by 2030, compared to €27 billion at the end of 2023. To succeed, it envisages improving the asset value of its portfolio over the coming years, with an expected annual return of between 8% and 10%. This is a significant increase compared to the historical figure of the last five years, which is around 3%.
The strategic plan also looks to enhance the ESG strategy for CriteriaCaixa, with a dual vision involving both its own management and investment criteria, as well as the activity of its investees.
Social dividend for ”la Caixa” Foundation
In the first half of 2024, CriteriaCaixa paid out a social dividend of €250 million to its sole shareholder, ”la Caixa” Foundation. The Foundation has announced a budget of €600 million for 2024. This is the largest budget in its history and is 12% higher than in 2023.
Of the total planned investment in 2024, 58.7% (equivalent to more than €350 million) will be allocated to the development of social programmes. This investment will see the largest increase of all budget items, rising by more than 10% in 2024, with the aim of fostering strategic programmes with a transformative impact on pressing social issues. Its main lines of action will continue to include support for medical research, with the creation of the CaixaResearch Institute, culture and science, and education and training for all segments of society.
APPENDIX
Group Structure – First half of 2024:
