Business Wire

SFL – First-Half 2017 Results

Del

Regulatory News:

The interim consolidated financial statements for the six months ended 30 June 2017 were approved by the Board of Directors of Société Foncière Lyonnaise (Paris:FLY) on 27 July 2017, at a meeting chaired by Juan-Jose Brugera.

First-half business indicators were robust, thanks to the high portfolio occupancy rate, while the period also saw gains in the portfolio's appraisal value and the Company's net asset value.

The auditors have completed their review of the interim financial statements.

Consolidated data (€ millions)            
    H1 2017   H1 2016   Change
Rental income   98.6   102.0   -3.3%
Adjusted operating profit* 82.5 86.4 -4.5%
Attributable net profit 378.7 309.8 +22.3%
EPRA earnings   49.7   50.6   -1.8%
* Operating profit before disposals and fair value adjustments
             
    30/06/2017   31/12/2016   Change
Attributable equity 3,455 3,123 +10.6%
Consolidated portfolio value excluding transfer costs 6,144 5,736 +7.1%
Consolidated portfolio value including transfer costs   6,523   6,092   +7.1%
EPRA NNNAV 3,421 3,082 +11.0%
EPRA NNNAV per share   €73.5   €66.2  
 

Results: robust business indicators

- Rental income for the period amounted to €98.6 million, down by a modest €3.3 million from the €102.0 million reported in first-half 2016.

  • On a like-for-like basis (excluding all changes in the portfolio affecting period-on-period comparisons), rental income was €2.7 million higher, a 2.9% increase that was mainly attributable to the new leases signed in 2016.
  • Changes in assets under redevelopment between the two periods had a €4.3 million negative impact on rental income, with several floors of offices in the Cézanne Saint-Honoré complex and other properties taken off the market for extensive renovation after tenants moved out in 2016.
  • The impact was partly offset by lease termination penalties received from tenants, which added a net €0.5 million to rental income for first-half 2017 compared with €2.2 million in the year-earlier period.

- Operating profit before disposal gains and losses and fair value adjustments to investment properties amounted to €82.5 million in first-half 2017 versus €86.4 million in the year-earlier period.

- The portfolio’s appraisal value as of 30 June 2017 was 7.1% higher on a comparable basis than as of 31 December 2016. The increase led to the recognition of positive fair value adjustments to investment properties of €382.6 million at 30 June 2017 versus positive adjustments of €285.8 million at 30 June 2016.

- Net finance costs amounted to €21.2 million in first-half 2017 compared with €25.0 million in the year-earlier period, a saving of €3.9 million that primarily reflected the Group's lower average cost of debt.

- After taking into account these key items, the Group reported attributable net profit for the period of €378.7 million versus €309.8 million in first-half 2016. EPRA earnings came to €49.7 million in first-half 2017 compared with €50.6 million in the year-earlier period.

First-half 2017 Business Review

Rental operations

In a resilient rental market shaped by stable volumes in the Paris region compared with 2016 and a shortage of high quality properties in the capital, during first-half 2017 SFL signed leases on some 12,000 sq.m. on good terms.

The new leases were signed at an average nominal rent of €678 per square metre, corresponding to an effective rent of €585 per square metre.

The occupancy rate for revenue-generating properties remained high, standing at 95.5% as of 30 June 2017 compared with 97.0% as of 31 December 2016. The remaining vacant units are located mainly in the Cézanne Saint-Honoré, Washington Plaza and Issy-les-Moulineaux properties.

Development operations

Capital expenditure for first-half 2017 amounted to €12.5 million and mainly concerned the renovation of vacated floors in existing buildings and preliminary work on the Louvre Saint-Honoré and 112 Emile Zola (SMA) development projects.

Portfolio operations

On 13 January 2017, SFL entered into a €165-million deal to acquire SMA's historical headquarters building on Avenue Emile Zola in the 15th arrondissement of Paris. The 21,000-sq.m. property will be redeveloped to create a major new business centre in the west of the capital. Contracts will be exchanged when SMA moves to its new headquarters in the fourth quarter of 2017 (for more details, see the press release dated 16 January 2017).

No properties were divested in the first half of 2017. However, as part of the Group's portfolio management strategy, the In/Out property in Boulogne-Billancourt was put up for sale during the period.

As of the period-end a buyer had been found and a sale agreement was signed on 25 July. The sale of this asset to Primonial is due to be finalised during the second half of the year.

Financing: historically low average borrowing costs

Net debt at 30 June 2017 amounted to €1,949 million, compared with €1,931 million at 31 December 2016, representing a loan-to-value ratio of 29.9%. At that date, the average cost of debt after hedging was 1.9% and the average maturity was 4.1 years.

In June 2017, two new bilateral revolving credit facilities were obtained for periods of six and seven years respectively, representing a total borrowing capacity of €175 million.

As of 30 June 2017, SFL had €675 million in undrawn lines of credit.

Net Asset Value

The consolidated market value of the portfolio at 30 June 2017 was €6,144 million excluding transfer costs, an increase of 7.1% from €5,736 million at 31 December 2016 that was primarily due to further tightening of Paris property yields.

The average EPRA topped-up net investment yield (NIY) stood at 3.3% as of 30 June 2017, compared with 3.6% as of 31 December 2016.

EPRA NNNAV stood at €3,421 million or €73.5 per share at 30 June 2017, an increase of 11.0% compared to €66.2 per share at 31 December 2016.

Alternative Performance Indicators (APIs)

API EPRA earnings

€ millions   H1 2017   H1 2016
Attributable net profit   378.7   309.8
Less:
Profit (loss) on asset disposals - -
Fair value adjustments to investment properties (382.6) (285.8)
Fair value adjustments to financial instruments, discounting adjustments to debt and related costs 0.0 0.7
Tax on the above items 20.1 5.5
Non-controlling interests in the above items   33.5   20.4
EPRA earnings   49.7   50.6
 

API EPRA NNNAV

€ millions   30/06/2017   31/12/2016
Attributable equity   3,455   3,123
Treasury shares 12 14
Unrealised capital gains 17 16
Fair value adjustments to fixed rate debt   (63)   (71)
EPRA NNNAV   3,421   3,082
 

API Net debt

€ millions   30/06/2017   31/12/2016
Long-term borrowings and derivative instruments   1,679   1,620
Short-term borrowings and other interest-bearing debt   371   389
Debt in the consolidated balance sheet   2,050   2,009
Less:
Current account advances (liabilities) (63) (63)
Accrued interest and deferred debt arranging fees (11) 6
Cash and cash equivalents   (27)   (20)
Net debt   1,949   1,931
 

More information is available at www.fonciere-lyonnaise.com

About SFL

Leader on the prime segment of the Parisian tertiary real estate market, Société Foncière Lyonnaise stands out for the quality of its property portfolio, which is valued at €6.1 billion and is concentrated on the Central Business District of Paris (#cloud.paris, Edouard VII, Washington Plaza, etc.), and for the quality of its client portfolio, which is composed of prestigious companies in the consulting, media, digital, luxury, finance and insurance sectors.

Stock market: Euronext Paris Compartment A – Euronext Paris ISIN FR0000033409 – Bloomberg: FLY FP – Reuters: FLYP PA

S&P rating: BBB with a positive outlook

Contact information

SFL
Thomas Fareng, +33 (0)1 42 97 27 00
t.fareng@fonciere-lyonnaise.com
or
Galivel & Associés
Carol Galivel/Doriane Fougères, +33 (0)1 41 05 02 02
galivel@galivel.com

Om Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(c) 2018 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Følg saker fra Business Wire

Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra Business Wire

Pacific Drilling Announces Second-Quarter 2018 Results14.8.2018 21:38Pressemelding

Pacific Drilling S.A. (OTC: PACDQ) today reported results for the second quarter of 2018. Net loss for the second-quarter 2018 was $103.7 million or $4.86 per diluted share, compared to net loss of $96.1 million or $4.50 per diluted share for the first-quarter 2018, and net loss of $138.1 million or $6.48 per diluted share for second-quarter 2017. Pacific Drilling CEO Paul Reese commented, “This quarter we continued to provide outstanding operational services to our clients, delivering revenue efficiency of 98.7 percent. Our strong operating results have been recognized by clients as we successfully secure new work for our high-specification, deepwater drillship fleet. Petronas recently exercised its option to contract Pacific Santa Ana for an additional year of work commencing in mid-2019. In addition, we have a letter of intent from Eni for Pacific Bora to work in Nigeria, as well as two letters of award for drilling services in the U.S. Gulf of Mexico for Pacific Khamsin and Pacific

Gilead Sciences Announces Executive Promotions14.8.2018 21:00Pressemelding

Gilead Sciences, Inc. (NASDAQ: GILD) today announced that Gregg Alton has been appointed Chief Patient Officer, a newly created role that will facilitate access to the company’s medicines and increase focus on reaching patients. The company also announced that Diana Brainard, MD, has been promoted to Senior Vice President, HIV and Emerging Viral Infections, and that Andrew Cheng, MD, PhD, Chief Medical Officer, has decided to leave Gilead to pursue another opportunity. Mr. Alton joined the company nearly 20 years ago and was the architect of its access program, which has enabled Gilead’s HIV medicines to reach more than 11 million people in the developing world. He has helped shape the organization in a number of executive positions, including as general counsel, and more recently, leading the company’s international commercial operations and corporate affairs groups. Prior to joining Gilead, he was an attorney at the law firm of Cooley Godward, LLP, where he specialized in mergers and

Thales and Gemalto Announce Regulatory Clearance from the Minister of Innovation in Canada14.8.2018 16:00Pressemelding

Regulatory News: Reference is made to the joint press release by Thales (Euronext Paris: HO) and Gemalto (Euronext Amsterdam and Paris: GTO) dated 27 March 2018 in relation to the launch of the recommended all-cash offer by Thales for all the issued and outstanding shares of Gemalto (the “Offer”), the publication of the Offer Document, and the joint press release of Thales and Gemalto dated 10 August 2018 in relation to the further extension of the Acceptance Period. Terms not defined in this press release will have the meaning as set forth in the Offer Document. Thales and Gemalto today announce that they have received foreign investment Regulatory Clearance in Canada. Together with the anti-trust clearance obtained in China and Israel, and clearance relating to foreign investments in Australia, Thales and Gemalto have obtained 4 of the required 14 Regulatory Clearances. Thales and Gemalto continue to work constructively with the competent antitrust authorities to obtain the remaining

BCW Acquires Creative Powerhouse HZ, Significantly Expanding Expertise in Integrated Communications14.8.2018 14:26Pressemelding

BCW (Burson Cohn & Wolfe), a leading global communications agency and a WPP company, today announced it has acquired HZ, one of the largest independent, digitally driven, integrated creative agencies in the U.S. Headquartered in Rockville, Maryland with offices in Baltimore, Los Angeles, New York and Washington, D.C., the acquisition will add the capability of HZ’s nearly 200 creative and digital professionals to BCW’s deep expertise in integrated communications across all industry sectors. HZ’s wide-ranging offerings include a full spectrum of multichannel digital design and development, mobile activation, social media, brand and identity creation, content, film and video production, search marketing (SEO/SEM), data and analytics as well as integrated media solutions. HZ’s broad client base spans the consumer, hospitality, food & beverage, education, B2B, real estate, sports & entertainment, healthcare and technology industries and counts Hilton Worldwide, Salesforce.org and Tishman S

Andersen Global Initiates Expansion in Mozambique14.8.2018 13:30Pressemelding

Andersen Global continues expansion in Africa with Isalcio Mahanjane e Associados, a law firm headquartered in Maputo, Mozambique. The collaboration with Isalcio Mahanjane e Associados signifies Andersen’s growth in the African region, as Mozambique provides strategic coverage in Southeast Africa and is the sixth country to collaborate or join in Africa in the past 14 months. Led by Managing Partner Isalcio Mahanjane, the firm includes 10 professionals and specializes in providing quality services in all branches of law for corporations and individuals. These services include commercial and corporate law, banking and financial law, labor law, real estate management, oil and gas, mines, and law and administrative litigation. “Mozambique will be a key point of connectivity with our practice in Portugal as we continue to focus on best-in-class solutions in Africa,” commented Global Chairman and Andersen Tax LLC CEO, Mark Vorsatz. “Isalcio and his team are passionate about their practice a

Gyeonggi Province of Korea Launches Beyond the Dream Global VLOG Contest14.8.2018 12:00Pressemelding

Gyeonggi Provincial Government and Gyeonggi Tourism Organization (GTO) are hosting an international video contest called “Beyond the Dream VLOG Contest 2018.” Video submissions will be accepted until August 26, 2018 (Korean Standard Time). This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180814005240/en/ Gyeonggi Provincial Government and Gyeonggi Tourism Organization (GTO) are hosting an international video contest called "Beyond the Dream VLOG Contest 2018." Video submissions will be accepted until August 26, 2018 (Korean Standard Time). The goal of the "Beyond the Dream VLOG Contest 2018" is to raise global awareness of Gyeonggi Province as an attractive travel destination and to select a Gyeonggi-do tourism ambassador who will show the world the charms of the province. Four final-winning teams will win a 10 day trip to Gyeonggi Province. USD 10,000 travel expenses for airline tickets and other travel expenses will be provi