Regulatory News:
Cegereal (Paris:CGR):
Key indicators
In millions of euros | 2019 | 2018 | Change |
IFRS rental income | 63.4 | 53.0 | +19.5% |
EPRA earnings | 40.0 | 30.7 | +30.6% |
Portfolio value (excluding transfer duties) | 1,464 | 1,409 | +3.9% |
Occupancy rate | 96.9% | 96.1% | +0.8 pts |
LTV ratio | 52.6% | 54.7% | -2.1 pts |
EPRA NNNAV per share excluding transfer duties (in €) | 43.7 | 41.0 | +2.4% |
Jérôme Anselme, Cegereal’s Chief Executive Officer commented: “This year once again, Cegereal’s teams have enabled the Company to deliver a record performance both operationally and financially, with EPRA earnings coming out at €40 million. Illustrated in particular by the arrival of the European Banking Authority’s teams and the significant extension of KPMG France’s lease in Europlaza tower, our solid rental activity demonstrates our capacity to attract and build strong relationships with clients. Our strength lies in our capacity to offer a user experience uniting connectivity, convenience, flexibility and respect for the environment. 2020 will see us roll out the same strategy and continue to focus on our objective of increasing the value of our portfolio and our Company”.
Record 96.9% occupancy rate
The highlights of 2019 included the extension of KPMG France’s lease in Europlaza tower, in which the firm now occupies 12,600 sq.m, reaffirming the property’s continued appeal, as well as the arrival of Salto, the French VoD platform developed by television channels TF1, M6 and France Télévisions, at Arcs de Seine.
In total, leases have been renewed, extended or signed on 45% of the portfolio’s surface area in the last three years. This successful rental activity has pushed the portfolio occupancy rate to 96.9%, demonstrating the effectiveness of Cegereal’s strategy, both in terms of asset management and the close relationship the Company has with its tenants. Four out of five assets are now fully leased.
Benefiting from the many signings in 2019, Cegereal’s rental income climbed 19.5% to €63.4 million in 2019, with the December 2018 acquisition of the Passy Kennedy building contributing €9.9 million. On a like-for-like basis, rental income grew 2.2% year-on-year.
The estimated value of Cegereal’s property portfolio (excluding transfer duties) amounted to €1,464 million, up 3.9% compared with 2018. This increase was driven by the signing of leases under market-beating conditions, as well as by the desirable location of the portfolio’s different properties.
Improvement in all financial indicators
The Company’s operational and financial performance was positively impacted by its excellent rental activity as well as the full-year impact of income generated by the Passy Kennedy building. Cegereal’s EPRA earnings totaled €40.0 million in 2019, a sharp 30.6% increase on 2018.
Net attributable income came in at €80.8 million in 2019, compared with €33.4 million in 2018, mainly due to the increase in the portfolio value.
Consolidated net debt stood at €769 million at December 31, 2019, representing an LTV ratio of 52.6%, while the average maturity of the Group’s borrowings stood at 3.5 years with an average interest rate of 1.3%.
EPRA NNNAV stood at €695.1 million or €43.7 per share at end-December, up 8.7% from €639.6 million or €41 per share at December 31, 2018. This increase reflects the growth in IFRS consolidated net income to €80.8 million, mainly thanks to the €55.4 million increase in the portfolio value, offset by the dividend distribution of €36.6 million.
No. 1 in Europe in CSR
Each year since its creation, Cegereal has proven its strong engagement in respect of environmental, social and governance (ESG) issues. Its commitment and the transparency of its non-financial reporting have been commended by ratings agencies such as the European Public Real Estate Association (EPRA) and the Carbon Disclosure Project (CDP), as well as the Global Real Estate Sustainability Benchmark (GRESB), which has placed the Company in the top 3 since it first participated in the benchmark. With a score of 95/100, Cegereal reached a new milestone in 2019, climbing to number one in Europe and number three worldwide, all sectors combined.
The in-depth work carried out during the year to analyze and control the environmental indicators of each of the Company’s buildings paid off, resulting in a reduction in the portfolio’s energy consumption and greenhouse gas emissions by 30% and 42%, respectively, since 2013. In addition, its entire portfolio has achieved NF HQETM Exploitation and BREEAM In-Use International certification.
Cegereal also stands out in how it manages biodiversity across its portfolio: the Company promotes the development of the flora and fauna housed in the portfolio’s 37,300 sq.m of green space.
2020 dividend distribution: €2.3 per share
Cegereal’s recurring cash flow rose to €42.9 million, up from €35.2 million in 2018. At the next General Shareholders’ Meeting, Cegereal will recommend paying another significant dividend distribution of €2.3 per share.
* * *
Cegereal’s Board of Directors met on February 27, 2020 to approve the audited consolidated financial statements for the year ended December 31, 2019.
The annual results presentation can be viewed on the Company’s website: www.cegereal.com
About Cegereal
Created in 2006, Cegereal is a listed property company that invests in prime office properties in Greater Paris. The total value of the portfolio is estimated at €1,464 million at December 31, 2019 (excluding transfer duties).
Thanks to its strong commitment to environmental, social and governance issues, Cegereal achieved first place among listed companies in Europe in the 2019 Global Real Estate Sustainability Benchmark (GRESB) ranking. Its entire portfolio has achieved NF HQETM Exploitation and BREEAM In-Use International certification.
Cegereal is a REIT listed on Euronext Paris since 2006, in compartment B (ISIN: FR0010309096). The Company had a market capitalization of €658.5 million at February 27, 2020.
www.cegereal.com
APPENDICES
IFRS Income Statement (consolidated)
In thousands of euros, except per share data |
|
|
| 2019 | 2018 |
| 12 months | 12 months |
| ||
Rental income | 63 369 | 53 026 |
Income from other services | 20 045 | 15 010 |
Building-related costs | (31 621) | (31 002) |
Net rental income | 51 793 | 37 034 |
| ||
Sale of building | 0 | 0 |
Administrative costs | (3 885) | (4 039) |
Other operating expenses | (13) | (89) |
Other operating income | 165 | 0 |
Increase in fair value of investment property | 60 710 | 12 501 |
Decrease in fair value of investment property | (14 480) | (800) |
Total change in fair value of investment property | 46 230 | 11 701 |
| ||
Net operating income | 94 289 | 44 607 |
| ||
Financial income | 0 | 6 |
Financial expenses | (13 529) | (11 508) |
Net financial expense | (13 529) | (11 502) |
| ||
Corporate income tax | 0 | 0 |
| ||
CONSOLIDATED NET INCOME | 80 760 | 33 106 |
of which attributable to owners of the Company | 80 760 | 33 106 |
of which attributable to non-controlling interests | 0 | 0 |
| ||
Other comprehensive income | ||
| ||
TOTAL COMPREHENSIVE INCOME | 80 760 | 33 106 |
of which attributable to owners of the Company | 80 760 | 33 106 |
of which attributable to non-controlling interests | 0 | 0 |
| ||
Basic earnings per share (in euros) | 5,10 | 2,40 |
Diluted earnings per share (in euros) | 4,92 | 2,27 |
IFRS Balance Sheet (consolidated)
In thousands of euros |
|
|
| Dec. 31, 2019 | Dec. 31, 2018 |
| ||
Non-current assets | ||
| ||
Property, plant and equipment | 38 | 47 |
Investment property | 1 463 920 | 1 408 520 |
Non-current loans and receivables | 23 146 | 20 230 |
Financial instruments | 34 | 597 |
Total non-current assets | 1 487 138 | 1 429 393 |
| ||
Current assets | ||
| ||
Trade accounts receivable | 9 720 | 7 747 |
Other operating receivables | 11 607 | 14 726 |
Prepaid expenses | 292 | 116 |
Total receivables | 21 620 | 22 589 |
| ||
Cash and cash equivalents | 44 880 | 53 367 |
Total cash and cash equivalents | 44 880 | 53 367 |
| ||
Total current assets | 66 499 | 75 957 |
TOTAL ASSETS | 1 553 637 | 1 505 350 |
| ||
Shareholders' equity | ||
| ||
Share capital | 79 532 | 78 006 |
Legal reserve and additional paid-in capital | 66 462 | 93 277 |
Consolidated reserves and retained earnings | 503 513 | 470 500 |
Net attributable income | 80 760 | 33 106 |
Total shareholders’ equity | 730 268 | 674 889 |
| ||
Non-current liabilities | ||
| ||
Non-current borrowings | 763 974 | 763 321 |
Other non-current borrowings and debt | 10 087 | 9 543 |
Non-current corporate income tax liability | 0 | 0 |
Financial instruments | 682 | 791 |
Total non-current liabilities | 774 743 | 773 655 |
| ||
Current liabilities | ||
| ||
Current borrowings | 3 468 | 3 152 |
Trade accounts payable | 12 349 | 24 996 |
Corporate income tax liability | 0 | 0 |
Other operating liabilities | 10 437 | 9 698 |
Prepaid revenue | 22 373 | 18 960 |
Total current liabilities | 48 626 | 56 806 |
| ||
Total liabilities | 823 369 | 830 461 |
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 1 553 637 | 1 505 350 |
IFRS Statement of Cash Flows (consolidated)
In thousands of euros |
|
|
| 2019 | 2018 |
OPERATING ACTIVITIES | ||
Consolidated net income | 80 760 | 33 106 |
| ||
Elimination of items related to the valuation of buildings: | ||
Fair value adjustments to investment property | (46 230) | (11 701) |
Annulation des dotations aux amortissement | ||
Indemnité perçue des locataires pour le remplacement des composants | 0 | 0 |
Elimination of other income/expense items with no cash impact: | ||
Depreciation of property, plant and equipment (excluding investment property) | 9 | 11 |
Free share grants not vested at the reporting date | 0 | 0 |
Fair value of financial instruments (share subscription warrants, interest rate caps and swaps) | 427 | 473 |
Adjustments for loans at amortized cost | 2 362 | 2 247 |
Contingency and loss provisions | 0 | 0 |
Corporate income tax | ||
Penalty interest | ||
| ||
Cash flows from operations before tax and changes in working capital requirements | 37 329 | 24 136 |
Other changes in working capital requirements | (8 277) | 19 621 |
Working capital adjustments to reflect changes in the scope of consolidation | ||
| ||
Change in working capital requirements | (8 277) | 19 621 |
| ||
Net cash flows from operating activities | 29 052 | 43 757 |
INVESTING ACTIVITIES | ||
Acquisition of fixed assets | (9 170) | (227 422) |
Net increase in amounts due to fixed asset suppliers | (1 745) | 2 620 |
| ||
Net cash flows used in investing activities | (10 915) | (224 802) |
FINANCING ACTIVITIES | ||
Capital increase | 11 204 | 79 901 |
Capital increase transaction costs | 0 | (794) |
Change in bank debt | (1 500) | 147 000 |
Issue of financial instruments (share subscription warrants) | 0 | 0 |
Refinancing/financing transaction costs | (102) | (1 930) |
Net increase in liability in respect of refinancing | (420) | 420 |
Purchases of hedging instruments | 0 | (796) |
Net increase in current borrowings | 236 | 134 |
Net decrease in current borrowings | 0 | 0 |
Net increase in other non-current borrowings and debt | 544 | 3 615 |
Net decrease in other non-current borrowings and debt | 0 | 0 |
Purchases and sales of treasury shares | (28) | (42) |
Dividends paid | (36 557) | (54 813) |
Net cash flows from financing activities | (26 625) | 172 694 |
Change in cash and cash equivalents | (8 488) | (8 351) |
Cash and cash equivalents at beginning of period* | 53 367 | 61 718 |
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 44 880 | 53 367 |
* There were no cash liabilities for any of the periods presented above. |
French GAAP Income statement
In euros |
|
|
| Dec. 31, 2019 | Dec. 31, 2018 |
| 12 months | 12 months |
Sales of services | 248 750 | 249 160 |
NET REVENUE | 248 750 | 249 160 |
Reversal of depreciation and amortization charges, impairment and expense transfers | 0 | 235 610 |
Other revenue | 22 559 | 1 886 |
Total operating revenue | 271 309 | 486 656 |
Purchases of raw materials and other supplies | 0 | 0 |
Other purchases and external charges | 1 901 020 | 2 564 773 |
Taxes, duties and other levies | 39 809 | 80 181 |
Wages and salaries | 340 980 | 714 151 |
Social security charges | 175 048 | 300 884 |
Fixed assets: depreciation and amortization | 3 561 | 1 955 |
Contingency and loss provisions | 0 | 0 |
Other expenses | 196 229 | 191 927 |
Total operating expenses | 2 656 646 | 3 853 871 |
|
|
|
OPERATING LOSS | (2 385 337) | (3 367 215) |
Financial income from controlled entities | 3 022 000 | 3 353 425 |
Other interest income | 0 | 6 347 |
Foreign exchange gains | 0 | 0 |
Total financial income | 3 022 000 | 3 359 772 |
Interest expenses | 104 731 | 85 396 |
Foreign exchange losses | 0 | 0 |
Total financial expenses | 104 731 | 85 396 |
|
|
|
NET FINANCIAL INCOME | 2 917 269 | 3 274 376 |
RECURRING LOSS BEFORE TAX | 531 932 | (92 839) |
Non-recurring income on capital transactions | 42 347 | 68 222 |
Reversal of impairment, provisions and non-recurring expense transfers | 0 | 194 056 |
Total non-recurring income | 42 347 | 262 278 |
Non-recurring expenses on management transactions | 5 000 | 0 |
Non-recurring expenses on capital transactions | 11 352 | 213 895 |
Total non-recurring expenses | 16 352 | 213 895 |
|
|
|
NET NON-RECURRING INCOME | 25 995 | 48 383 |
Corporate income tax | 0 | 0 |
|
|
|
TOTAL INCOME | 3 335 656 | 4 108 706 |
TOTAL EXPENSES | 2 777 729 | 4 153 162 |
|
|
|
NET LOSS | 557 927 | (44 456) |
French GAAP Balance Sheet
In euros | ||||
ASSETS | Gross amount | Depr., amort. & prov. | Dec. 31, 2019 | Dec. 31, 2018 |
|
|
|
| |
Property, plant and equipment |
|
|
|
|
Other property, plant and equipment | 10 776 | 5 705 | 5 071 | 4 753 |
Financial fixed assets | ||||
Receivables from controlled entities | 235 004 686 | 235 004 686 | 242 004 686 | |
Loans | - | - | - | |
Other financial fixed assets | 791 653 | 791 653 | 801 745 | |
FIXED ASSETS | 235 807 115 | 5 705 | 235 801 410 | 242 811 184 |
Receivables | ||||
Trade accounts receivable | 233 134 | 233 134 | 241 992 | |
Other receivables | 68 291 960 | 68 291 960 | 73 376 973 | |
Cash and cash equivalents | 2 236 722 | 2 236 722 | 14 762 019 | |
CURRENT ASSETS | 70 761 815 | 70 761 815 | 88 380 984 | |
Prepaid expenses | - | - | 11 206 | |
TOTAL ASSETS | 306 568 930 | 5 705 | 306 563 225 | 331 203 374 |
In euros |
|
| ||
EQUITY AND LIABILITIES |
|
| Dec. 31, 2019 | Dec. 31, 2018 |
|
|
|
|
|
Capital |
|
|
| |
Share capital (including paid-up capital: 66,862,500) | 79 532 200 | 78 006 250 | ||
Additional paid-in capital |
|
| 59 463 926 | 86 278 764 |
Revaluation reserve |
|
| 152 341 864 | 152 341 864 |
|
|
|
| |
Reserves |
|
|
| |
Legal reserve |
|
| 7 800 625 | 7 800 625 |
Other reserves |
|
| 0 | 122 849 |
Retained earnings |
|
|
| |
Retained earnings |
|
| 27 867 | 14 006 |
Net loss for the year |
|
| 557 927 | (44 456) |
|
|
|
| |
SHAREHOLDERS’ EQUITY |
|
| 299 724 408 | 324 519 901 |
|
|
|
|
|
OTHER EQUITY |
|
| - | - |
|
|
|
|
|
Loss provisions |
|
| 0 | 0 |
|
|
|
|
|
CONTINGENCY AND LOSS PROVISIONS |
|
| - | - |
|
|
|
|
|
Non-current borrowings and debt |
|
|
| |
Miscellaneous borrowings and debt | 5 793 854 | 5 630 705 | ||
|
|
|
| |
Trade accounts payable and other current liabilities |
|
|
| |
Trade accounts payable | 721 770 | 758 313 | ||
Tax and social liabilities | 323 194 | 294 455 | ||
Amounts owed to fixed asset suppliers | 0 | 0 | ||
|
|
|
| |
LIABILITIES |
|
| 6 838 817 | 6 683 473 |
|
|
| ||
TOTAL EQUITY AND LIABILITIES |
|
| 306 563 225 | 331 203 374 |
Reconciliation of Alternative Performance Measures (APM)
Cegereal recurring cash flow APM | ||
In thousands of euros | 2019 | 2018 |
Net income under IFRS | 80 760 | 33 106 |
Restatement of changes in fair value of investment property | -46 230 | -11 701 |
Other restatements of changes in fair value | 454 | 475 |
Restatement of other fees | 5 061 | 8 794 |
EPRA earnings | 40 046 | 30 674 |
IFRS adjustments (rent-free periods, etc.) | 602 | 2 256 |
Restatement of deferred finance costs | 2 260 | 2 247 |
Cegereal recurring cash flow | 42 908 | 35 177 |
EPRA NNNAV APM | ||
In thousands of euros | 2019 | 2018 |
Shareholders’ equity under IFRS | 730 268 | 674 889 |
Portion of rent-free periods | -28 614 | -27 315 |
Market value of loans | -771 837 | -772 432 |
Carrying amount of loans | 765 240 | 764 507 |
NNNAV PER SHARE | 695 057 | 639 649 |
LTV ratio APM | ||
In thousands of euros | 2019 | 2018 |
Gross amount of balance sheet loans (statutory financial statements) | 769 | 771 |
Fair value of investment property | 1 464 | 1 409 |
LTV ratio (%) | 52,6% | 54,7% |
Occupancy rate APM
The occupancy rate is the ratio of space for which the Company receives rent under a lease agreement to the total amount of available space.
Taking into account the upcoming arrivals (KPMG particularly), Cegereal’s overall occupancy rate is up sharply at 96.9%.
At December 31, 2019, i.e., before the effective date of these new leases, the occupancy rate stood at 93.9%, versus 92.3% one year earlier.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200227005938/en/