Paris, July 21, 2017 - 8:00 a.m.
Regulated information

Cegereal
First-half 2017

ACTIVE RENTAL ACTIVITY WITH NEW LEASES SIGNED FOR A TOTAL OF 11,300 SQ.M

  • Key figures
In millions of euros First-half 2017 First-half 2016 Change
IFRS rental income 26.0 24.4 +6.7%
IFRS net income 29.7 32.6 -8.8%
EPRA earnings 14.9 13.8 +7.8%
Net cash flows from operations 18.9 17.6 +7.3%
Portfolio value (excluding transfer duties) 1,144 967 +15.7%
Portfolio value (excluding transfer duties) at constant scope of consolidation 991 967 +2.5%
EPRA NNNAV per share excluding transfer duties (in €) 41.4 40.0 +3.5%
Replacement NAV per share including transfer duties (in €) 47.8 45.4 +5.2%
Dividend per share (in €)  2.1 2.0 +5.0%
Total Share Return over the last 12 months 8.7% 17.3%  

         

Rental income grew by 6.7% year-on-year mainly thanks to rents collected on the Hanami property.

Cegereal's IFRS in H1 net income came to €29.7 million for the six months ended June 30, 2017 (€32.6 million reported for the same period in 2016). The decrease mainly reflects a smaller rise in the value of the properties in our portfolio (up €14 million compared with €19.5 million).

Cegereal's EPRA earnings came to €14.9 million for the first half of the year. The rise of 7.8% is primarily due to higher rental income and savings achieved on financial expenses via refinancing, despite the increase in non-recurring transaction costs.

  • A VIBRANT RENTAL BUSINESS

Cegereal enjoyed active rental activity in the first half of 2017, with new leases signed for a total of 11,300 sq.m.

Huawei increased its presence in the heart of TMT Valley, leasing an additional 6,500 sq.m in the Arcs de Seine complex for a minimum lease term of six years, to occupy a total of 11,700 sq.m. RT, a network of international news channels, also moved teams to the campus site, signing a firm nine-year lease for 1,800 sq.m.

GE Capital will vacate the space it occupies in the Europlaza building at the end of August, while at the same time My Money Bank will take up an additional 3,000 sq.m. As a result, a single 8,000 sq.m space will become available in 2018 on the top floors of a tower in La Défense, Europe's largest business district.

Cegereal's financial occupancy rate represented 92.6% including the second Huawei lease beginning on July 3rd, 2017 compared with 87% at December 31, 2016.

  • TOTAL SHARE RETURN (TSR) OVER THE LAST 12 MONTHS: up 8.7%

With the addition to the portfolio of a fourth property in late 2016, the estimated value of Cegereal's real estate assets at June 30, 2017 totaled €1,144 million excluding transfer duties (€1,230 million including transfer duties), versus €1,124 million excluding transfer duties (€1,209 million including transfer duties) at December 31, 2016.

EPRA NNNAV, excluding transfer duties, amounted to €41.4 per share, reflecting changes in fair value of properties (positive impact of €1.1 per share), dividend distributions (negative impact of €2.1 per share), consolidated earnings growth (positive impact of €1.2 per share) and movements in other line items (positive impact of €0.4 per share).

Total Share Return over the last 12 months came to 8.7%, with NAV growth of 3.5% and a distribution ratio of 5.2%.

  • OUTLOOK

Given that discussions regarding most of its available space have reached an advanced stage, Cegereal will be focusing on acquisition opportunities and initiatives to innovate its Europlaza rental offering.

After twice receiving recognition for revolutionizing La Défense with Europlaza, the district's first totally overhauled property and its first "Garden Tower", Cegereal is planning a new transformative phase for Europlaza, where it aims to market the "first premium units available in a refurbished building" at La Défense. Europlaza will continue to reinvent its future with the creation of connected spaces that place digital technologies at the center of the user experience and encourage flexible, collaborative ways of working.

  • INVESTOR CALENDAR

October 26, 2017: Third-quarter 2017 revenue

For more information, please contact:

Media Relations
Alexandre Dechaux / +33 1 53 32 84 77  
Alexandre.dechaux@citigate.fr  		Investor Relations
Raphaël Tréguier / +33 1 42 25 76 36 
raphael.treguier@cegereal.com

About Cegereal

Created in 2006, Cegereal is a commercial property company that invests in prime office properties in Greater Paris. The portfolio's appraisal value is estimated at €1,209 million as of December 31, 2016 (replacement value).
To date, Cegereal is the first French property company with a fully certified portfolio from an environmental point of view (HQE and BREEAM "Very Good") and ranks as "Sector Leader" in the international benchmark GRESB.
Cegereal is a REIT listed on Euronext Paris since 2006, in compartment B (ISIN: FR0010309096). The Company had a market capitalization of €531 million on July 17, 2017.
www.cegereal.com.

Interim Financial Statements
(IFRS)
Six-month period ended June 30, 2017

Excerpts from the interim financial report
approved by the Board of Directors on July 20, 2017.

The Statutory Auditors have performed a review
of the interim financial statements.


Consolidated Statement of Comprehensive Income (IFRS) for the six months ended June 30, 2017

in thousands of euros, except per share data      
  June 30, 2017 Dec. 31, 2016 June 30, 2016  
  6 months 12 months 6 months  
         
Rental income 25 975  47 196  24 354   
Income from other services 10 675  13 991  10 597   
Building-related costs (14 306)  (17 221)  (11 396)   
Net rental income 22 344  43 965  23 555   
         
Sale of building        
Administrative costs (2 513)  (3 663)  (1 849)   
Net additions to provisions & depreciation and amortization expense (5)    (4)   
Other operating expenses   (716) (741)   
Other operating income 716 9 8   
         
Increase in fair value of investment property 14 095  34 292 37 561   
Decrease in fair value of investment property   (13 900)  (18 030)   
Total change in fair value of investment property 14 095  20 392 19 531   
         
Net operating income 34 636 59 987 40 500  
         
Financial income 204  53  0   
Financial expenses (5 102)  (17 972) (7 074)   
Net financial expense (4 898)  (17 919)  (7 074)   
         
Corporate income tax 0  (802)  (802)   
         
CONSOLIDATED NET INCOME 29 738 41 265 32 623  
of which attributable to owners of the Company29 738  41 265  32 623   
of which attributable to non-controlling interests 0  0  0   
        
Other comprehensive income       
         
TOTAL COMPREHENSIVE INCOME 29 738 41 265 32 623  
of which attributable to owners of the Company29 738  41 265  32 623   
of which attributable to non-controlling interests000  
      
Basic earnings per share (in euros) 2,23 3,09 2,44  
Diluted earnings per share 2,04 2,95 2,44  


Consolidated Balance Sheet (IFRS) at June 30, 2017

in thousands of euros      
  June 30, 2017 Dec. 31, 2016 June 30, 2016  
         
Non-current assets        
         
Property, plant and equipment 56  61  66   
Investment property 1 143 700  1 124 100  967 300   
Non-current loans and receivables 15 359  22 949  26 416   
Financial instruments 101  184     
Total non-current assets 1 159 216  1 147 294  993 781   
         
Current assets        
         
Trade accounts receivable 10 808  16 539  11 823   
Other operating receivables 16 065  12 709  7 039   
Prepaid expenses 247  354  193   
Total receivables 27 120  29 602  19054   
         
Cash and cash equivalents 42 321  18 634  26 346   
Total cash and cash equivalents 42 321  18 634  26 346   
        
Total current assets 69 441  48 236  45 400   
 TOTAL ASSETS 1 228 657  1 195 530  1 039 182  
         
Shareholders' equity        
         
Share capital 66 863  66 863  160 470   
Legal reserve and additional paid-in capital 77 600  115 043  21 436   
Consolidated reserves and retained earnings 410 646  359 877  359 663   
Net attributable income 29 738  41 265  32 623   
Total shareholders' equity 584 847  583 048  574 192   
         
Non-current liabilities        
         
Non-current borrowings 577 061  576 951  403 254   
Other non-current borrowings and debt 5 374  4 605  4 058   
Financial instruments (1)  920     
Total non-current liabilities 582 435  582 476  407 312   
         
Current liabilities        
         
Current borrowings 3 160  2 224  1 591   
Trade accounts payable 2 880  5 832  2 525   
Corporate income tax liability     802   
Other liabilities 39 250  7 985  37 968   
Other financial liabilities     750   
Prepaid revenue 16 086  13 966  14 041   
Total current liabilities 61 376  30 007  57 678   
         
Total liabilities 643 811  612 483  464 990   
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 1 228 657  1 195 530  1 039 182  

Consolidated Statement of Cash Flows for the six months ended June 30, 2017

in thousands of euros      
  June 30, 2017 Dec. 31, 2016 June 30, 2016  
         
OPERATING ACTIVITIES        
Consolidated net income 29 738  41 625  32 623   
         
Elimination of items related to the valuation of buildings:       
Fair value adjustments to investment property (14 095)  (20 392)  (19 531)   
Indemnity received from lessees for the replacement of components        
Elimination of other income/expense items with no cash impact:        
Depreciation of property, plant and equipment (excluding investment property) 5  9  4   
Free share grants not vested at the reporting date 103 102    
Fair value of financial instruments (share subscription warrants) (838)   895 741   
Adjustments for loans at amortized cost 957  2 949  590   
      
Cash flows from operations before tax and changes in working capital requirements  15 870 24 828 14 427  
         
Change in shareholder debt 28 082     26 746   
Other changes in working capital requirements 12 216  376  6 574   
Working capital adjustments to reflect changes in the scope of consolidation   134    
         
  Change in working capital requirements  40 298 511 33 320  
         
  Net cash flows from operating activities  56 168 25 339 47 747  
INVESTING ACTIVITIES        
Acquisition of fixed assets (5 505)  (161 717) (5 777)   
Net decrease in amounts due to fixed asset suppliers 2 314  621  2 314   
  Net cash flows used in investing activities  (5 297) (161 096) (3 464)  
FINANCING ACTIVITIES        
Increase in share capital        
Change in bank debt (375)  181 000    
Issue of financial instruments (share subscription warrants)    9 9   
Refinancing transaction costs (106) (8 542)    
Purchase of hedging instruments   (168)    
Net increase in current borrowings     (35)   
Net decrease in current borrowings 571 (523)    
Net increase in other non-current borrowings and debt 769  654  107   
Net decrease in other non-current borrowings and debt        
Purchases and sales of treasury shares 40  (43)  5   
Dividends paid (28 082)  (26 720)  (26 746)   
         
  Net cash flows used in financing activities  (27 184) 145 668 (26 660)  
         
  Change in cash and cash equivalents  23 687 9 911 17 623  
Cash and cash equivalents at beginning of the period 18 634 8 723 8 723   
         
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD  42 321 18 634 26 346  
Cegereal - PR HY 2017


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Source: Cegereal SA via Globenewswire