PATRIMOINE ET COMMERCE: 2022 ANNUAL RESULTS

PATRIMOINE ET COMMERCE PATRIMOINE ET COMMERCE: 2022 ANNUAL RESULTS 22-Feb-2023 / 07:00 CET/CEST Dissemination of a French Regulatory News, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.   PRESS RELEASE 2022 ANNUAL RESULTS       Paris - February 22, 2023     At its meeting on February 21, 2023, the Patrimoine & Commerce Supervisory Board reviewed the Company’s operations and approved the 2022 financial statements (1), prepared by Management.   Group share of net profit increasing by +51.7% at € 47.8m Collection rate at 98.1% on rents and service charges Portfolio valuation of € 841m Dividend payment of € 1.30 per share, +4.0% vs. last year, implying a 7.9% yield on share price, as well as a 4.6% yield on NAV   Key figures   Key financials 31/12/2022 12 months 31/12/2021 12 months Var. % Gross Rental Income € 47.3m € 43.7m +8.3% Funds from operations € 29.3m € 26.7m +9.6% Group share of net profit € 47.8m € 31.5m +51.7%         Alternative Performance Measures 31/12/2022 31/12/2021 Var. % Asset appraisal value (excluding transfer taxes) (2) € 841.3m € 807.0m +4.3% Capitalization rate (3) 7.0% 7.2% n.a. LTV ratio (4) 44.0% 45.2% n.a. NAV (excluding transfer taxes - €/share) 28.5 € 26.7 € +6.8% NAV (excluding transfer taxes) € 431.2m € 400.2m +7.8%     Eric Duval, Managing Director and Founder of Patrimoine & Commerce declared: « The solid results for fiscal year 2022, both in terms of operational and financial performance, confirm the attractiveness of the Group’s business model as the leader of low-cost retail park market players in France. With over € 50m in acquisitions and € 40m in disposals during the year, we demonstrated our capacity to carry out targeted acquisitions but also the good liquidity of our assets in line with appraisers values. Supported by a robust financial structure, and our confidence in delivering a sustainable growth, we will propose a distribution of a € 1.30 dividend per share, up by +4.0% compared to last year. »   Operational performance In an uncertain economic context, characterized by inflation and the rise in interest rates, Patrimoine & Commerce saw its gross rental income increase by +8.3%, and maintained a very dynamic asset rotation strategy, with the acquisition of seven retail properties, and the disposal of eight assets during 2022. The retail park model proved its performance and alignment with current trends in consumption. Besides core strengths of the model (human-sized stores, easy car parking, limited service charges, adapted rents), retail parks stand out with an activity not very dependent on tourism, focused on local consumption, open spaces and high attractivity for discount stores. Patrimoine & Commerce had a sustained leasing activity and signed 55 leases (of which 21 renewals). The financial occupancy rate is increasing and stands at 94.3% (5) on the portfolio. The collection rate on rents and service charges invoiced in 2022 stands at 98.1%.   FFO increasing by +9.6% In 2022, Patrimoine & Commerce continued to deliver a solid financial performance. For the fiscal year ended December 31, 2022, Patrimoine & Commerce reported consolidated gross rental income of € 47.3m, against € 43.7m for the fiscal year ended December 31, 2021:   in millions of euros - 12 months 31/12/2022 31/12/2021 Var. % Like-for-like 41.6 39.9 +4.3% Acquisitions 3.9 0.4 n.a Disposals 1.3 3.5 n.a Properties under restructuring 0.5 - n.a Gross rental income 47.3 43.7 +8.3%   The increase of gross rental income is mainly explained by (i) the effect of the acquisitions and disposals made in 2021 and 2022 (ii) the delivery of restructuring operations on a property in Martinique and (iii) the like-for-like increase, driven by contractual indexation (2.5% in average on the period) and the decrease in the amortization of Covid-19 rent free periods.   Net rental income stands at 93% of gross rental income (stable compared to 2021), mainly composed of unrecovered rental expenses and provisions for credit losses:   in millions of euros - 12 months 31/12/2022 31/12/2021 Var. % Gross rental income * 47.3 43.7 +8.3% Entry fees 0.0 0.2 n.a. Gross rental revenue 47.4 43.9 +7.8% Unrecovered rental expenses (2.7) (2.4) +9.8% Other building expenses (0.6) (0.7) n.a. Net rental income 44.2 40.8 +8.3% *  incl. rental guarantees         Operating expenses and other revenues remained under control at € 5.0m (vs. € 4.5m in 2021), the increase derives from property management costs (leasing fees, asset management fees based on the evolution of rents).   Net cost of debt amounted to € 9.5m in 2022, almost stable compared to last year (+0.7%). In a context of a rise in interest rates, the Company continues to benefit from the renegotiations carried out in the past years, as well as from the hedging of its debt portfolio. The average interest rate on debt is 2.07% for the 12 months ending December 31, 2022 (versus 2.04% in 2021), while 79% of the debt is either at fixed rate or at hedged variable rate.   Recurring net result (FFO) amounted to € 29.3m in 2022, compared to € 26.7m in 2021: in millions of euros - 12 months 31/12/2022 31/12/2021 Var. % Restated current operational result 39.2 36.3 +7.9% Restated net cost of debt (9.5) (9.4) +0.7% Current taxes (0.4) (0.2) n.a. Funds from operations (FFO) (6) 29.3 26.7 +9.6% Diluted FFO per share 1.93 1.78 +8.6%   The external appraisal valuation campaign resulted in a fair value adjustment of +€ 14.9m in 2022, reflecting the resilience of the portfolio in a context of high inflation and of sharp rise in interest rates.   Including the share of the result of companies accounted for using the equity method (+€ 0.5m), other non-recurring revenues and charges (-€ 1.4m), and the contribution of hedging strategies on debt (+€ 2.8m), net profit amounted to € 46.1m for the fiscal year 2022 and € 47.8m in group share, increasing by +51.7% compared to last year.   Decrease of the LTV ratio and increase of the NAV per share at € 28.5 (+6.8%) The Group consolidated net debt of € 360.9m as of December 31, 2022, implies a Loan-to-Value ratio of 44.0%, leaving a significant investment capacity compared to the target of 50% set by Patrimoine & Commerce.   in millions of euros - 12 months 31/12/2022 31/12/2021 Net Debt 360.9 359.2 (-) other lease liabilities (0.6) (0.6) (+) deposits on real estate projects 0,0 (0.3) (-) financial instruments 2.2 (1.3) Restated Net debt 362.4 357.1 Property valuation (excl. Transfer taxes) 823.9 789.9 Loan To Value ratio 44.0% 45.2%     Net asset value per share amounted to € 28.48 (€ 431.2m) in 2022, an increase of +6.8% versus 2021.   in millions of euros 31/12/2022 31/12/2021 NAV, excl. Transfer taxes 431.2 400.2 NAV per share, excl. Transfer taxes (in euros) 28.48 26.67 Number of shares (excl. Treasury shares) 15 144 241 15 006 681     Development and optimization of the portfolio As of December 31, 2022, the portfolio valuation (excluding transfer taxes and including properties accounted for using the equity method), reached € 841.3m, increasing by +4.3% compared to 2021. The capitalization rate of the properties in operation stands at 7.0%.       in millions of euros Variation Net balance as of January 1, 2022 807.0 Acquisitions 61.8 Disposals (42.5) Fair value impact 15.1 Net balance as of December 31, 2022 841.3     Over 2022, Patrimoine & Commerce continued its development through the acquisition of a retail property in Thonon-les-Bains (Auvergne-Rhône-Alpes), of a portfolio comprising five properties in Villefranche-de-Rouergue (Occitanie), Gonesse (Île-de-France), Tavers (Centre-Val de Loire), Avranches (Normandie), and Colomiers (Occitanie) and of a retail park in Saint-Paul-lès-Romans (Auvergne-Rhône-Alpes). Those investments totalled € 53.6m in 2022. Other investments were made on the existing portfolio as well as on restructuring operations in Ville-du-Bois and La Martinique, for a global amount of € 8.2m.   Patrimoine & Commerce also completed the disposal of several assets in Epagny (Auvergne-Rhône-Alpes), Vitrolles (Provence-Alpes-Côte d'Azur), Sarreguemines (Grand Est), Parigné L’Evêque (Pays-de-la-Loire), Bourgoin-Jallieu (Auvergne-Rhône-Alpes), Salon-de-Provence (Provence-Alpes-Côte d'Azur), and an office property in Guadeloupe, for a total consideration of € 42.5m, in line with external appraisers’ valuations.     Dividend payment of € 1.30 per share The distribution of a dividend of € 1.30 per share will be proposed to the Annual General Meeting of Patrimoine & Commerce. The proposed dividend is increasing by +4.0% compared to last year and implies a 4.6% yield on net asset value per share as of December 31, 2022, and of 7.9% on the current stock price as of February 21, 2023.               Agenda   April 12, 2023  First-Quarter 2023 activity June 8, 2023  Annual General Meeting July 26, 2023  First-Half 2023 results October 11, 2023 Third-Quarter 2023 activity             ------------------------------------ About Patrimoine & Commerce   Patrimoine & Commerce owns and operates a real estate portfolio, largely comprising retail property, covering a total surface area of more than 520,000 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 : 1The consolidated financial statements have been subject to audit procedures. The Statutory Auditors’ report is to be issued shortly   2 Incl. Group share of Cherbourg and Studio Prod and assets held for sale.   3  Based on annualized rents (or market rental value for vacant spaces) and on property valuation excl. transfer taxes 4 Adjusted for hedging instruments 5Excluding strategic vacancy 6 As of December 31, 2022, the current operational result and the net cost of debt are restated from operating expenses, other income and financial expenses of the real estate development activity (-€ 0.7m)           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 Managing Director [phone]   Emmanuel DOVERGNE [phone] [e-mail]   Appendix 1 :Recurring net result and Net debt     Recurring net result   in millions of euros - 12 months 31/12/2022 31/12/2021 Var. % Gross rental income 47.3 43.7 +8.3% Net rental income 44.2 40.8 +8.2% Operating expenses and other income (5.0) (4.5) +10.8% Adjusted EBITDA 39.2 36.3 +7.9% Net cost of debt (9.5) (9.4) +0.7% Current taxes (0.4) (0.2) n.a. Funds from operations (FFO) 29.3 26.7 +9.6% FFO per share € 1.93 € 1.78  n.a. Change in fair value of properties 14.9 2.5 n.a. Change in fair value of financial instruments 3.6 1.1 n.a. Equity method investees 0.5 0.9 n.a. Other income and expenses (2.1) (0.0) n.a. Net income 46.1 31.2 +48.0% Minority interest 1.7 0.4 n.a. Net profit, group share 47.8 31.5 +51.7%     Consolidated Net debt   in millions of euros 31/12/2022 31/12/2021 Bond loans 30.0 30.0 Borrowings from financial institutions 355.2 340.8 Lease liabilities connected to finance leasing 34.6 41.1 Other lease liabilities 0.6 0.6 Accrued interest 1.8 1.5 Financial liabilities on hedging instruments 0.0 1.4 Bank overdraft 0.0 0.0 Financial liabilities - Partners' current accounts 8.5 4.2 Liabilities related to assets held for sale 3.3 4.1 Total Financial Debt 434.1 423.8 Cash and others 55.2 50.8 Financial assets on hedging instruments 2.2 0.1 Financial assets - Partners' current accounts 15.8 13.7 Consolidated Net Debt 360.9 359.2       Appendix 2 :IFRS Consolidated Financial Statements   Assets     in millions of euros 31/12/2022 31/12/2021 Non current assets     Investment properties 815.4 771.0 Tangible and intangible assets 0.7 0.6 Investment in equity-accounted companies 7.5 7.4 Non-current financial assets 2.9 1.1 Non-current deferred tax assets 0.1 0.1 Total - Non current assets 826.6 780.2 Current assets     Current financial assets 0.2 0.0 Trade and other receivables 22.4 23.0 Other receivables 7.8 9.3 Cash and cash equivalents 55.2 50.8 Total - Current assets 85.5 83.1 Assets held for sale 8.5 18.9 Total assets 920.6 882.1       Equity and Liabilities     in millions of euros 31/12/2022 31/12/2021 Equity attributable to owners of the parent     Share capital 152.8 150.8 Additional paid-in capital 35.7 40.7 Legal reserves 2.8 2.2 Consolidated reserves 192.1 174.9 Consolidated earnings 47.8 31.5 Total - Equity attributable to owners of the parent 431.2 400.2 Equity attributable to non-controlling interests 12.8 14.6 Total equity 444.0 414.7 Non current liabilities     Non current financial liabilities 388.8 370.0 Deposits 7.7 7.5 Deferred tax liabilities - - Other long-term liabilities 2.4 3.8 Total - Non current liabilities 398.9 381.2 Current liabilities     Current financial liabilities 41.9 50.1 Payroll and tax liabilities 6.7 9.8 Trade payables 8.9 7.2 Other liabilities 16.9 14.9 Total - Current liabilities 74.4 82.0 Liabilities related to assets held for sale 3.3 4.1 Total Equity and Liabilities 920.6 882.1   Consolidated statements of comprehensive income     in millions of euros - 12 months 31/12/2022 31/12/2021 Gross rental revenues 47.4 43.9 Service charge income 10.3 10.0 Service charge expenses (12.9) (12.4) Other building expenses (0.6) (0.7) Net rental income 44.2 40.8 External expenses and other taxes (4.8) (4.3) Payroll expenses (0.8) (0.9) Amortization and provisions (0.1) (0.1) Other current operating income and expenses 0.0 0.7 Total - Operating income and expenses (5.7) (4.6) Current operating income 38.5 36.2 Other operating income and expenses (0.7) (0.1) Change in the fair value of investment properties 14.9 2.5 Share in earnings of equity-accounted companies 0.5 0.9 Operating income 53.1 39.4 Financial income 0.4 0.4 Financial expenses (9.9) (9.8) Cost of net debt (9.5) (9.4) Other financial income and expenses 2.8 1.1 Income tax benefit (expense) (0.3) 0.0 Net income 46.1 31.2 Minority interests (1.7) (0.4) Net profit, group share 47.8 31.5 Net income, per share 3.17 2.13 Diluted net income, per share 3.17 2.13       Net income 46.1 31.2 Items that will be reclassified subsequently to profit or loss  -  - Items that will not be reclassified subsequently to profit or loss  -  - Total comprehensive income 46.1 31.2 of which : - Group share 47.8 31.5               - Non controlling interest (1.7) (0.4) Average number of shares outstanding 15 057 573 14 804 270                         Consolidated statements of cash flows           in millions of euros 31/12/2022 31/12/2021 CASH FLOWS FROM OPERATING ACTIVITIES     Net income from consolidated companies 46.1 31.2 Restatements :     Share in earnings of equity-accounted companies (0.5) (0.9) Dividends received from equity-accounted companies 0.5 0.3 Depreciation, amortization and provisions 0.7 0.1 Change in value of investment properties (14.9) (2.5) Change in value of other assets and liabilities (3.6) (1.1) Capital gains and losses on asset disposals 0.1 (0.1) Net cost of debt 9.5 9.4 Income tax benefit (including deferred tax) 0.3 (0.0) Gross cash flow from consolidated companies 38.3 36.4 Income tax paid (0.0) (0.1) Change in operating working capital 3.3 (0.2) Net cash flow from operating activities 41.6 36.1 CASH FLOWS FROM INVESTING ACTIVITIES     Acquisitions of investment properties and other fixed assets (61.5) (16.0) Proceeds from sales of investment properties 41.4 16.0 Movements in loans and other financial assets 0.3 1.2 Movements in current accounts of equity-accounted companies (2.5) 2.2 Impact of changes in scope - (0.2) Net cash flow from investing activities (22.2) 3.2 CASH FLOWS FROM FINANCING ACTIVITIES     Dividends paid to owners of the parent (15.8) (12.3) Dividends paid to non-controlling interests - (0.1) Acquisitions / disposals of treasury shares (0.9) (1.2) New loans, borrowings and hedging instruments 48.7 14.3 Repayment of loans, borrowings, hedging instruments and lease liabilities (37.2) (42.8) Repayment of loans, borrowings and hedging instruments on assets held for sale (4.4) (1.0) Repayment linked to rental liabilities (0.1) (0.1) Interest paid (9.3) (9.3) Transactions with non-controlling interests - (1.9) Changes in partner's current accounts 4.2 (0.3) Net cash flow from financing activities (14.9) (54.6) Change In Cash and Cash Equivalents 4.5 (15.4) Cash and cash equivalents at beginning of period 50.7 66.1 Cash and cash equivalents at end of period 55.2 50.7 Change In Cash and Cash Equivalents 4.5 (15.4)       Regulatory filing PDF file File: 2022 ANNUAL RESULTS

Language:	English
Company:	PATRIMOINE ET COMMERCE
	45 avenue Georges Mandel
	75016 PARIS
	France
Phone:	[phone]
E-mail:	[e-mail]
Internet:	https://www.patrimoine-commerce.com/
ISIN:	FR0011027135
Euronext Ticker:	PAT
AMF Category:	Inside information / News release on accounts, results
EQS News ID:	1565209

End of Announcement	EQS News Service

1565209  22-Feb-2023 CET/CEST