Press Release
First Half 2015Paris, July 28th, 2015.
€ 2.4 bn of assets, 90% of which located in Paris and 97% occupied
Triple Net Asset Value at € 124.52 per share vs € 118.35 on December 31st, 2014 (+5.1%)
A consolidated net profit of € 40,9m (not comparable with the one of June 30th 2014 of € 11.6m) € 97m of asset sale generating € 22.3m of capital gains & € 53m of on-going acquisitions
Cost of debt dropped from 2.61% to 2.51%
Following the mergers with Foncière Paris France and Foncière des 6ème et 7ème Arrondissements de
Paris last May, Foncière de Paris's renting portfolio jumped from € 287m in 2012 to € 2.4 bn today,
90% of which located in Paris.
The board of directors of Foncière de Paris met on July 28th, 2015 and closed the first-half results as of June 30th, 2015, using IFRS standards. Auditors performed their limited review of the accounts and their report will be released shortly. This press release is to be read with all information available. The First- Half report will be available on August 5th, 2015 on the company's web site: www.fonciere-de-paris.fr.
I) Renting activity & Portfolio
The occupancy rate amounts to 97% vs 95% on December 31 st, 2014 thanks to robust renting activity.
33.000 SQ.M. RENTED OR RENEWED OVER THE PAST SIX MONTHS -representing a potential of € 16m of annual rents- among which:
- SNCF Group rented for ten years (9 firm) Coruscant in Saint-Denis (14.550 sq.m.).
- « Le Campra » in Saint-Denis is now fully occupied thanks to the letting of 1.900 sq.m
- Foncière des 6ème et 7ème secured the future occupancy of the building site Penthemont (Paris VII) by signing a lease with Yves Saint-Laurent for approx. 9,200 sq. m. of offices (on a total of 12,500 sq. m.). This agreement is subject to suspensive conditions, among which those related to building permits authorizations, which are still to be obtained for the moment.
- A franchise contract was concluded with Marriott to build up a 50 rooms 5* hotel in the balance of Penthemont
- Robert Walters PLC signed a six years lease on newly refurbished 1.050 sqm in the building located
251, bd Pereire (Paris XVII).
- Finally, 1.000 sqm were rented in Biopark (Paris XIII)
ON GOING ACQUISITIONSTwo purchases contracts were signed for an overall amount of € 53m:
- The former, to purchase the land of the Holiday Inn Paris Saint Germain des Prés hotel, the walls and business of which were already owned by Foncière de Paris. Thanks to this acquisition, the full ownership of a high quality premises is fulfilled.
- The latter, early July 2015, to purchase the full ownership of a building site, fully rented,
located 127-129, rue de l'Université (Paris VII) constituted of 2.300 sq.m. of offices, 700 sq.m. of residential units and 330 parking spaces for an overall area of 9.400 sq.m..
DISPOSALSThree buildings were sold during first half for a total amount of € 97m, above December 31st, 2014 expertise, leading to a consolidated capital gains of € 22.3m. Namely: « Rueil 250 » (Rueil-Malmaison),
76-80, av du Général Leclerc (Paris XIV) and 4, rue de Lasteyrie (Paris XVI). The full year annual rent
generated by these three buildings amounted to € 6m.
EXPERTISE & NET ASSET VALUEThe portfolio, 90% Parisian, is valued € 2.4bn as at June, 30th 2015. This figure integrates € 290m of capital gains.
Triple net EPRA Asset Value amounts to € 124.42 euros per share as at June 30th, 2015 vs € 118.35 as at December 31st, 2014, up by 5.1% over six months. We remind the reader that NAV calculated traditionally released by the company amounts to € 124.85 per share as of June 30th, 2015 vs € 118.69 as of December 31st, 2014 (+5.2%)(1).
(1) Differences between the two methods consist mainly in the booking of treasury shares and fair value of fixed debt
II) First Half results
With respect to IFRS standards, First Half consolidated Profit & Loss Statement integrates the contribution of Foncière des 6ème et 7ème arrondissements de Paris as of April 1st, 2015, and not as of January 1st, 2015 as it is the case for social accounts. Pro-forma indicators were calculated in order to facilitate comparison.
This being said, as at June 30th, 2015, the consolidated turn-over amounts to:
In millions of euros (€m) | 30/06/2015 | 30/06/2015 Pro-Forma | 31/12/2014 | 31/12/2014 Pro-Forma |
Turn-over | 68,6 €m | 79,8 €m | 113,3 €m | 161,8 €m |
Of which Rents | 45,3 €m | 53,6 €m | 79,4 €m | 112,5 €m |
Consolidated net profit amounts to € 40.9 m vs € 33.6 m as at December 31st, 2014 and € 11.6 m as at
June 30th, 2014.
As at June 30th 2015, main cash-flow indicators are the following:
In euros (€) | 30/06/2015 | 30/06/2015 Pro-Forma | 31/12/2014 | 31/12/2014 Pro-Forma |
Recurring Cash-Flow per share (EPRA Earning) | 3,27 € | 3,75 € | 7,84 € | 6,83 € |
Global Cash-Flow global per share | 5,28 € | 5,76 € | 10,13 € | 7,55 € |
Loan To Value ratio (excl. rights) remains stable at 45%. Average cost of debt drops from 2.61% to
2.51% between December 31st, 2014 and June 30th, 2015. The debt maturity is 3.2 years vs 3,4 years
as at December 31st, 2014. During the semester, the company concluded swaps contracts, mainly with
differed effect at an average rate of 1%, for a nominal value amounting to € 570m and bought caps for
a nominal value amounting to € 150m with a 0.50% strike. As at June 30th, 2015, the debt is 84%
covered and up to almost 50% up until mid-2021. Eventually, the undrawn credit facilities amounts to
€560m.
The consolidated credit-leasing assets decrease to € 361m vs € 425m as at December 31st, 2014.
III) Outlook : distribution & value creation
The strategy of the company is to pursue the acquisitions of Parisian assets to be restructured. Hence the projects of the EADS building, boulevard de Montmorency (Paris XVI), and of Penthemont, rue de Bellechasse (Paris VII), which refurbishments are to start soon and will approximately last two years.
The merger in May with Foncière des 6ème et 7ème arrondissements de Paris reinforces the property profile of the company, dedicated to Parisian Offices with more than € 2 bn of assets located in Paris,
97% of which being rented. Apart unforeseen event, Foncière de Paris should ensure in 2015 the
distribution of a dividend equal or higher than the one of the previous year, sticking to what has been for more than 30 years the trademark of the company.
ABOUT FONCIERE DE PARISFoncière de Paris is listed on Euronext Paris since 1987 (code ISIN: FR0000034431) under real-estate
FTSE classification. www.fonciere-de-paris.fr
CONTACTS FONCIERE DE PARISFrançois Thomazeau / Olivier Riché / Arnaud Pomel
Séverine Farjon - farjon@foncieredeparis.fr- Phone: +33 (0)1 53 70 77 77-
Consolidated Balance Sheet in K€
(IN THOUSANDS OF EUROS)
ASSETS 30/06/2015 31/12/2014 30/06/2014*
INTANGIBLE ASSETS 5 839 5 524 188
Investment properties 1 882 954 976 462 1 047 839
Hotel operating capital assets 208 786 54 082 51 235
Assets for financial leasing 361 099 425 053 444 307
Assets for property financial leasing 3 646 4 433 5 685
Assets for movable property financial-properties 344 556 406 821 425 465
Financial fixed assets 12 897 13 799 13 157
Operating fixed assets 785 586 543
TANGIBLE ASSETS 2 453 625 1 456 183 1 543 924
Securities in asociated undertakings 3 683 96 602 93 879
Securities and receivables held to maturity 14 9 690
Securities available for sale 92 207 84 781 83 572
Interest-rate instruments (caps & swaps) 5 943 1 248 2 450
Deferred tax assets 4 779 2 252 2 788
Other receivables 742 9 663 1 542
OTHER NON-CURRENT ASSETS 107 368 194 555 184 922
TOTAL NON-CURRENT ASSETS 2 566 832 1 656 262 1 729 034
Properties held for sale 11 185 77 022 88 192
Inventories 328 129 75
Accounts receivable on investment properties 36 416 8 801 15 673
Financial leasing receivables 7 542 3 709 7 262
Operating receivables 43 959 12 510 22 935
Miscellaneous receivables 13 221 8 325 23 119
Securities available for sale 425 1 486 1 610
Cash and cash equivalents 21 613 15 944 36 962
Cash 22 038 17 429 38 573
CURRENT ASSETS 90 730 115 415 172 893
TOTAL ASSETS 2 657 562 1 771 678 1 901 927
LIABILITIES 30/06/2015 31/12/2014 30/06/2014*
Capital 154 426 99 386 99 271
Reserves 790 834 432 525 422 953
Transferable reserves 14 050 12 108 4 758
Treasury shares -17 941 -18 466 -18 741
Other consolidated reserves 794 725 438 883 436 936
Other equity instruments - - - Share in the income of associated undertakings -1 516 4 415 1 943
Income to be allocated - - - Income excluding share in the income of associated undertakings 42 395 29 183 8 890
Income 40 879 33 598 10 833
SHAREHOLDERS' EQUITY GROUP SHARE 986 139 565 509 533 058
Minority interest income - - 811
Minority interest reserves - - 1 825
MINORITY INTEREST - - 2 636
Bonds redeemable into shares (OSRA) 72 908 72 908 87 474
Financial liabilities due in more than one year 1 223 702 871 526 935 735
Interest-rate instruments swaps 8 241 7 082 13 819
Deferred tax liabilities 8 023 1 957 1 369
Other debts 16 380 11 279 13 786
Miscelleanous debts 24 404 13 236 15 155
TOTAL NON-CURRENT LIABILITIES 2 315 394 1 530 261 1 587 876
Provisions for contingencies and charges 4 350 2 596 2 506
Financial liabilities due in less than one year 255 873 184 945 221 677
Miscellaneous debts 81 945 53 875 89 868
TOTAL CURRENT LIABILITIES 342 168 241 417 314 050
TOTAL LIABILITIES 2 657 562 1 771 678 1 901 927
* restated data taking into account IFRIC 21 retrospective application.
Profit & Loss in K€
(IN THOUSANDS OF EUROS)
30/06/2015 31/12/2014 30/06/2014*
(6 months) (12 months) (6 months)
OPERATING REVENUE 94 044 155 421 86 657
Revenue from rental activity 59 333 99 181 53 184
Rental income 45 297 79 390 39 971
Re-invoiced expenses 12 587 17 358 12 207
Other revenue & tranferred expenses 492 1 351 765
Recoveries of impairments of assets 555 516 142
Recoveries of provisions for doubtful accounts 286 566 99
Recovery of provisions for contingencies and charges 115 - -
Revenue from credit-leasing 20 180 42 929 26 284
Fees and taxes and other revenues 8 999 21 352 11 054
Re-invoiced charges 7 330 8 825 7 706
Recoveries of provisions and depreciaiton 2 311 5 428 2 191
Recoveries of provisions for doubtful accounts 1 069 4 943 3 652
Capital gain on sales 50 1 196 941
Other revenues 420 1 185 742
Other operating revenues 14 532 13 311 7 189
Hotel operating revenue 14 266 12 545 6 314
Other revenue 266 766 875
Other provisions for contingencies and charges - - - OPERATING EXPENSES 64 162 94 405 58 430
Expenses on rental activiy 30 851 49 644 29 440
Re-invoicable expenses 12 587 17 358 12 147
Non re-invoicable expenses 4 666 5 492 3 206
Depreciation 11 138 21 040 10 458
Depreciation for asset depreciation 2 103 3 694 2 922
Depreciation for contincenties and charges - - - Expenses on doubtful accounts 308 675 285
Other expenses 49 1 386 421
Operating expenses on financial leasing 13 862 20 736 15 033
Re-invoicable expenses 7 330 8 825 7 706
Non re-invoicable expenses 95 814 591
Depreciation 1 563 239 9
Expenses on doubtful accounts 1 912 6 404 3 149
Gain/loss on sales 2 332 4 293 1 662
Other expenses 630 161 1 915
Other operating expenses 11 477 9 657 4 871
Other hotel operating expenses 10 138 8 588 4 171
Depreciation and amortisation for the hotel activity 1 339 1 068 699
Other depreciation for contingencies and charges - - - General operating expenses 7 973 14 368 9 087
Payroll expenses 6 177 7 939 5 503
Other administrative expenses 613 3 845 2 138
Taxes and similar payments 969 1 379 698
Depreciation, amortisation and provisions 113 755 502
Other operating expenses 101 450 246
OPERATING PROFIT 29 882 61 016 28 227
Income from sale of investment properties 22 322 6 123 1 088
OPERATING INCOME AFTER SALE 52 204 67 140 29 315
PROFIT OR LOSS OF ASSOCIATED UNDERTAKINGS -1 516 4 415 1 943
Net debt cost -18 032 -42 047 -18 599
Dividends and 5 540 11 120 5 131
Changes in value of financial instruments 2 424 -6 138 -4 936
Discounting impact - - - Impact of discounts - - PRE-TAX INCOME 40 620 34 489 12 855
Taxes (including deferred tax) 259 -892 -1 211
NET INCOME/LOSS 40 879 33 598 11 644
Of which minority interest share - - 811
GROUP SHARE 40 879 33 598 10 834
Earnings per share 4,94 € 5,24 € 1,69 €
Diluted earnings per share 4,76 € 5,34 € 1,84 €
* restated data taking into account IFRIC 21 retrospective application.
distributed by |