PATRIMOINE ET COMMERCE Press Release - 3 March 2020
2019 ANNUAL RESULTS
GROSS RENTAL INCOME INCREASE OF +7.1%
GROWTH IN FFOOF +10.1%
ASSET VALUATION OF €816M,UP BY +7.3%
DIVIDEND GROWTH OF +4.2%
Boulogne-Billancourt, 3rdMarch 2020
At the occasion of its 2 March 2020 meeting, the Patrimoine & Commerce Supervisory Board reviewed the Company's operations and approved the 2019 financial statements, prepared by Management.
Key figures | 31/12/2019 | 31/12/2018 | Variation | ||||||
12 months | 12 months | % | |||||||
Gross rental income | €46.1m | €43.1m | +7.1% | ||||||
Funds From Operation 1 | €28.1m | €25.6m | +10.1% | ||||||
Group Share Net Income | €25.7m | €24.4m | +5.3% | ||||||
Alternative Performance Measures 1 | 31/12/2019 | 31/12/2018 | Variation | ||||||
% | |||||||||
Asset appraisal value (excluding transfer taxes) 2 | €816.1m | €760.4m | +7.3% | ||||||
Capitalization rate | 7.2% | 7.2% | n.a | ||||||
LTV ratio 3 | 48.2% | 45.1% | n.a | ||||||
NAV (excluding transfer taxes - €/share) | €26.7 | €26.0 | +2.5% | ||||||
NAV (excluding transfer taxes) | €368.9m | €361.5m | +2.0% | ||||||
Gross rental income growth: +7.1%
For the fiscal year ended 31 December 2019, Patrimoine & Commerce reported consolidated gross rental revenues of €46.1m compared with €43.1m for the fiscal year ended 31 December 2018, up by +7.1%, primarily driven by 2019 acquisitions and the full-year impact of 2018 acquisitions. Like-for-like gross rent increased by +1.6%, mostly driven by rent indexation.
During the period, the portfolio underwent minor changes in tenancy (tenant turnover rate of around 1.5%) despite a challenging economic environment. The occupancy rate remains high at 94%4for the whole portfolio and the rental overdue rate of 1.8% confirm the quality and resilience of the Company's portfolio.
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Increase in recurring net income: +10.1%
Operating expenses and other incomes amounted to an expense of €4.6m, compared to an expense of €4.7m in 2018.
Net cost of debt totaled €10.1m in 2019, up by +7.2% compared to fiscal year 2018. The Company was able to take advantage of the low interest rate environment. Over the year, Patrimoine & Commerce signed a corporate credit line and contracted asset financing ((Soissons (Aisne), Laon (Ain), Salaise-sur-Sanne (Isère), Arçonnay (Sarthe), Etrembières (Haute-Savoie), and Beynost (Ain)), and asset refinancing (Valence (Drôme), Poitiers (Vienne), and Perrières (Loir-et-Cher)) at attractive rates. The average interest rate on debt is 2.50% for the 12 months ending 31 December 2019 (versus 2.68% in 2018).
Recurring net income (FFO) amounted to €28.1m (€2.03 per share), an increase of +10.1% compared with 2018.
Including changes in fair value of properties (-€3.8m, mainly due to transfer taxes on acquisitions and the increase of transfer tax rate on assets build more than 5 years ago), equity method revenues (-€2.6m), and other expenses and incomes (+€2.0m), net income totaled €23.6m as of 31 December 2019.
After accounting for minority interests, Group share net income amounted to €25.7m, up by +5.3% compared to fiscal year 2018.
Asset valuation: +€55.7m
As of 31 December 2019, independent appraisal of assets (excluding transfer taxes and including group share of equity method entities and assets held for sale) amounted to €816.1m, an increase of +7.3% compared with 31 December 2018. The capitalization rate of assets in use remain stable at 7.2%.
Patrimoine & Commerce pursued its selective acquisition strategy and increased its territorial coverage in existing areas with the acquisitions of assets in Soissons (Aisne), Château-Thierry (Aisne), Champagne-au-Mont-d'Or (Rhône), Wittenheim Phase 1 (Haut- Rhin), Laon (Aisne), Champniers Tranche 3 (Charente), Grenoble Echirolles (Isère), Etrembières (Haute-Savoie), and Chauny (Aisne). Those investments summed €80.9m for a net yield above 7.0%.
Patrimoine & Commerce pursue its portfolio turnover policy of non-strategical assets. The Group disposed of two units in Saint-Gaudens(Haute-Garonne) and a commercial property located in L'Isle-Adam(Val-d'Oise). Asset disposal reached a total of €5.7m, in line with expert valuations.
Monitored LTV and Net Asset Value per share growth at €26.7 (+2.5%)
The group's consolidated net debt, €387.8m as of 31 December 2019, enables the Company to present a Loan-To-Value ratio of 48.2%, which remains below the average target of 50% that Patrimoine & Commerce has set for itself.
Net asset value per share amounted to €26.7 (€368.8m), an increase of +2.5% versus 31 December 2018.
Dividend growth: +4.2%
At the annual meeting of Patrimoine & Commerce shareholders on the 17thJune 2020, shareholders will be asked to approve a dividend distribution of €1.25 per share. This dividend payout is +4.2% higher than in 2018 and represents a 4.7% yield on 31stDecember 2019 net asset value per share as well a 7.0% yield on 28thFebruary 2020 share price.
THE LOW-COST RETAIL PARK SPECIALIST
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Outlook
Eric Duval, Managing Director and Founder of Patrimoine & Commerce declared: "2019 sound performance in an economically difficult environment is the result of our operational excellence combined with the quality of our low-cost retail park portfolio in France. Our dynamic growth driven by rental activity and acquisitions throughout the year demonstrates the relevance of our positioning as the leader of low-cost retail park market players in France. We will maintain this dynamic thanks to a robust financial structure and our pipeline of projects in order to provide long-term growth to our shareholders."
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About Patrimoine & Commerce
Patrimoine & Commerce owns and operates a real estate portfolio, largely comprising retail property, covering a total surface area superior to 500,000 sqm. The assets are mainly located in retail parks near mid-sized towns throughout France.
Patrimoine & Commerce benefits from a significant identified deal flow that will enable it to feed its growth, in terms of both assets under development and operating assets.
Notes:
- Alternative Performance Measures (Cap rate, LTV, NAV, etc.) defined in the 2019 Annual Financial Report published on the Company's website.
- Incl. Cherbourg and Studio Prod for the stake held and the assets held for sale.
- Adjusted for security deposits and hedging instruments.
- Calculated on the basis of rents or estimated rental value in case of vacancy (excluding strategic vacancy).
Patrimoine & Commerce is listed on NYSE Euronext Paris.
ISIN code: FR0011027135 - Mnémo code: PAT
For further information, go to: www.patrimoine-commerce.com
For information, please contact:
PATRIMOINE & COMMERCE | KEIMA COMMUNICATION |
Eric DUVAL | Emmanuel DOVERGNE |
Managing Director | Tel.: +33(0)1 56 43 44 63 |
Tel.: +33(0)1 46 99 47 61 | emmanuel.dovergne@keima.fr |
THE LOW-COST RETAIL PARK SPECIALIST
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Patrimoine et Commerce SCA published this content on 03 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 March 2020 09:10:03 UTC
