Rental income: €81.4 million
(+10.2%)
Attributable net profit: €205.6
million
EPRA earnings: €27.6 million
(+12.8%)
Property portfolio value: €4,833 million
(+6.8% on a comparable portfolio basis)
Regulatory News:
The interim consolidated financial statements for the six months
ended 30 June 2015 were approved by the Board of Directors of
Société Foncière Lyonnaise (Paris:FLY) on 22 July 2015, at its
meeting chaired by Juan-Jose Brugera.
These financial statements show a significant rise in both the
operating aggregates of SFL and the appraisal value of the
portfolio.
The auditors have completed their limited review of the interim
financial information and are in the process of issuing their
review report.
Consolidated data (€ millions)
30/06/2015 30/06/2014 Rental income
81.4 73.8 Operating profit before disposals and fair
value adjustments 61.5 58.9 Attributable net profit 205.6 139.5
Underlying attributable profit (EPRA earnings) 27.6
26.3
30/06/2015 31/12/2014 Attributable equity 2,471 2,325
Consolidated portfolio value excluding transfer costs 4,833 4,466
Consolidated portfolio value including transfer costs 5,088
4,703 EPRA NNNAV 2,459 2,297 EPRA NNNAV per share
€52.9 €49.4
Results
- Rental income stood at €81.4 million on 30 June 2015, compared
to €73.8 million on 30 June 2014, an increase of €7.5 million
(+10.2%).
- On a comparable portfolio basis, rents
increased by €3.8 million (+5.7%), mainly due to new leases signed
during 2014.
- Properties undergoing redevelopment
accounted for a reduction in revenue of €0.7 million compared to
the first half of 2014.
- Finally, the acquisition of the
Condorcet building in December 2014 generated a €4.4 million
increase in rental income over the first half.
- Operating profit before disposals and fair value adjustments
rose to €61.5 million on 30 June 2015 versus €58.9 million on 30
June 2014. Applying IFRIC 21 on a proforma basis from 1 January
2014, the increase of this aggregate over the first half of 2015 is
+8.2%.
- The portfolio’s appraisal value on 30 June 2015 rose by 6.8%
on a comparable portfolio basis relative to the value on 31
December 2014. The increase led to the recognition of positive fair
value adjustments to investment properties of €217.3 million on 30
June 2015, versus €150.1 million on 30 June 2014.
- Net finance costs amounted to €27.9 million on 30 June 2015,
compared with €32.3 million on 30 June 2014. Fair value adjustments
to financial instruments generated a net expense of €3.8 million on
30 June 2015 versus €4.6 million on 30 June 2014. Recurring finance
costs fell by €3.9 million over the first half as an increase in
the volume of debt was more than offset by a reduction in its
average cost.
- After taking into account these key items, the Group reported
attributable net profit for the period of €205.6 million, compared
with €139.5 million on 30 June 2014. Excluding the impact of
disposals, changes in fair value of investment properties and
financial instruments and the related tax effect, underlying
attributable net profit (EPRA earnings) rose by 5.0% to €27.6
million for the first half of 2015 compared with €26.3 million on
30 June 2014. Applying IFRIC 21 on a proforma basis from 1 January
2014, the increase in EPRA earnings over the first half of 2015 is
€3.1 million (+12.8%).
First-half 2015 Business Review
Rental operations:
In a rental market that remains difficult and with volumes in
the Ile de France down by 22% relative to 2014, SFL successfully
leased more than 66,000 sq.m. of space in the first half of 2015.
The main components of this excellent result are:
- In/Out (Boulogne): 100% leased to the OECD (35,000
sq.m.)
- #cloud.paris: 10,800 sq.m. pre-leased to Exane
- 131 Wagram: new 12-year fixed-term lease with TV5 Monde
(7,500 sq.m.)
- Le Vaisseau (Issy-les-Moulineaux): 100% pre-leased to
Révolution 9 (6,300 sq.m.)
These office leases have an average nominal rent of €511/sq.m.,
corresponding to an effective rent of €395/sq.m., and an average
fixed-term duration of 10.2 years.
The physical occupancy rate for revenue-generating properties
was 86.0% on 30 June 2015 and 96.6% when the lease signed with the
OECD (which will take effect on 1 September 2015) is taken into
account, compared to 87.1% on 31 December 2014.
Development operations:
Capitalised work carried out in the first half of 2015 totalled
€71.1 million and mainly related to redevelopment works at
#cloud.paris that will be delivered in November 2015 and at
90 Champs-Elysées that were delivered and leased as
scheduled on 31 March 2015. The development pipeline totals around
55,000 sq.m., comprised mainly of the #cloud.paris building
mentioned above, the Le Vaisseau building
(Issy-les-Moulineaux) which is pre-leased and will be delivered at
the start of 2016, and the additional surfaces in the Louvre
Saint-Honoré building.
Portfolio operations:
On 30 June 2015, SFL acquired a 6,700 sq.m. office building
located at 9 avenue Percier in Paris for €68 million
including transfer costs. This very high quality asset offers
potential to create value through the optimisation of its rental
situation (see press release of 30 June 2015).
No properties were divested during the first half of 2015.
Financing
Net debt at 30 June 2015 amounted to €1,751 million, compared to
€1,572 million at 31 December 2014, representing a loan-to-value
ratio of 34.4%. At that date, SFL also had €490 million in undrawn
back-up lines of credit. At 30 June 2015, the average cost of debt
after hedging was 2.7% and the average maturity was 3.6 years.
In June 2015, SFL signed with Banco Sabadell for a new 5-year
revolving credit facility of €50 million.
In July 2015, SFL renegotiated its syndicated revolving credit
facility of €400 million as well as the credit line of its
subsidiary Parholding (€208 million). As a result of these
renegotiations, the average maturity of its debt is now 4.3 years
and the average cost is 2.6%.
Net Asset Value
The consolidated market value of the portfolio at 30 June 2015
was €4,833 million excluding transfer costs, an increase of 8.2%
relative to 31 December 2014 (€4,466 million) and of 6.8% on a
comparable portfolio basis.
The portfolio is composed of 20 prestigious properties,
principally prime office properties in the heart of Paris (94%) and
the most attractive parts of the Western Crescent (6%).
The average rental yield stood at 4.4% at 30 June 2015 compared
with 4.8% at 31 December 2014.
EPRA NNNAV stood at €2,459 million or €52.9 per share at 30 June
2015 compared with €49.4 per share at 31 December 2014, an increase
of 7.1%.
More information is available at
www.fonciere-lyonnaise.com
ABOUT SFL:
Leader on the prime segment of the Parisian tertiary real
estate market, the Société Foncière Lyonnaise stands out for the
quality of its property portfolio, which is valued at 4.8 billion
euros and is concentrated on the Central Business District of Paris
(Louvre Saint-Honoré, 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 stable outlook
www.fonciere-lyonnaise.com
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version on businesswire.com: http://www.businesswire.com/news/home/20150722006120/en/
SFLThomas Fareng, + 33 (0)1 42 97 01
51t.fareng@fonciere-lyonnaise.com
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