Press release

2014 - HALF-YEAR RESULTS

  • Acquisition of a group of buildings "Penthemont": a medium-term growth opportunity 
  • Increase of the consolidated turnover:  22.3m (+approximately 10%)
  • Operating revenue: €19.2m as of June 30th, 2014 vs €16.0m as of June 30th, 2013 (+19%)
  • Moderate and secure financing cost: 2.6%
  • Revalued Net Asset value: € 20.68 per share as of June 30th, 2014

Paris, July 30th, 2014 - The Board of Directors of Foncière des 6ème et 7ème Arrondissements de Paris (SIIC) met on July 30th, 2014 and approved the half year financial statements for 2014, in compliance with the IFRS Standards. The limited control procedures, for the six months statements, were established by the Statutory Auditors which report is about to be issued. This Press release is to be read (understood) with all the available information. The half-year financial report will be available on August 5th 2014 on the Company's website: www.fprg.fr:
http://www.fprg.fr.

CONSOLIDATED KEY FIGURES

 BALANCE SHEET                                                                                                                                                  €m

ASSETS
30-06-2014
31-12-2013
 
30-06-2013
Investment properties
       765.1
621.7
 
622.4
Hotel assets
68.2
69.0
 
69.7
Financial assets
            1.7
18.5
 
69.2
 
25,322
 
 
57,05757
Cash flow and cash equivalents
  25.3
57.0
 
12.9
Other assets
  21.4
22.9
 
25.7
 
 
 
 
 
TOTAL
881.7
789.1
 
799.9

LIABILITIES
30-06-2014
31-12-2013
 
30-06-2013
Shareholders' equity - Group share
415.3
427.7
 
420.6
Financial debt
448.0
345.0
 
362.5
Autres passifs
18.4
16.5
 
16.8
TOTAL
881.7
789.1
 
799.9

Consolidated income statement                                                                                                       €m

30-06-2014
6 months
30-06-2013
6 months
 
31-12-2013
12 monyhs
Consolidated revenue (€m)
22.3
20.3
 
41.8
Operating income (€m)
19.2
16.0
 
27.6
NET PROFIT GROUP SHARE (M€)
13.8
16.6
 
22.8
  Of which change in fair value of financial derivatives
(2.4)
+0,5
 
 
Earnings/share -(€)
0.54
0.65
 
0.89
 
 
 
 
 
NET PROFIT
16.1
13.8
 
21.3
NAV excl. transfer costs per share (€)
20.68
20.26
 
20.60
NAV incl. transfer costs per share (€)
21.74
20.78
 
21.12

Business 

  • Investment properties

During the first semester of 2014, the Company gained €14.9m in consolidated rental income, compared to €12.9m as of June 30th, 2013. The Company benefits of full rents since January 1st, 2014 from the Hôtel de la Ferté Sénecterre, located 24, rue de l'Université, leased to the Yves Saint Laurent Company as well as from the re-let building, located 138 bis, rue de Grenelle.

At June 30, 2014, the portfolio is almost totally let (occupation rate of  99.6%).

The average fixed lease rate is of 4.6 years.

In place of Alcatel Lucent, the Company Salesforce took a lease in similar conditions for the building located 3, avenue Octave Gréard (5,500 sq.m). Therefore, the early departure of Alcatel Lucent will have no financial incidence on Foncière des 6ème et 7ème Arrondissements de Paris.  

  • Hotels  (Holiday Inn Paris - Saint-Germain-des-Prés et Holiday Inn Paris - Notre-Dame)

      The hotel business income is stable and amounts to €7.4m versus €7.5m at June 30th, 2013.

       

      As at June 30th, 2014, the Holiday Inn Paris-Saint-Germain-des-Prés Hotel generated an average price of €157 without tax, with an occupation rate of 84% (vs respectively € 161 without tax and 82% as at June 30th, 2013) and the Holiday Inn Paris-Notre-Dame an average price of € 193 without tax and an occupation rate of 87% (respectively € 194 without tax and 84% as at June 30th, 2013).

  • Shareholdings

The income received from securities for the first six months of 2014 amounts to € 0.5m compared to €2.5m for the first six months of 2013. This decrease is due to the transfer of the shareholding held by Foncière des 6ème et 7ème Arrondissements de Paris in Foncière de Paris, that occurred end of 2013.

THE GROUP OF BUILDINGS "PENTHEMONT"

The Company won the call to candidancy organised by the State for the sale of the group of buildings "Penthemont" (37-39 rue de Bellechasse and 104 rue de Grenelle, Paris 7). This location totally let to the State until its departure probably current 2015 and at the latest beginning 2016, will undergo refurbishment before re-letting.  This acquisition represents approximately 12,500 sq.m. (excluding adjoining premises). After this purchase, the Company's portfolio amount to approximately 68,500 sq.m. (+22%).

PORTFOLIO:  AN INCREASE IN UREALISED CAPITAL GAINS   

The Company commissioned a half-year appraisal of its assets which amounts to:

  • € 932.8m, excluding its share of 32.5% in the SCI Saint-Pères Fleury and excluding its financial participations - compared to € 776.8, end of December 2013.
     
  • € 976m including its share of 32.5% in the SCI Saint-Pères Fleury and its financial participations (mainly OSRA Foncière de Paris) - compared to € 806m, end of December 2013.

The reserve of unrealised capital gains (excluding its shares Saint-Pères Fleury) amounts to € 99.4m, versus € 86.2m at the end of 2013; and shows, together with the natural effect of depreciation, the increase of the appraised values, on a six month period.

During the last appraisal, the value of the St Dominique Building was adjusted which allows to take back a provision for impairment for € 7.7m. The balance of the provision amounts to € 8.8m as at June 30th, 2014.     

REVALUED NET ASSET                                                   

The Revalued Net Asset amounts to € 20.68 per share, excluding transfer duties, a slight increase compared to December 31, 2013 (€ 20.60). 

FINANCIAL ITEMS

  • The consolidated revenue, for the six first months of 2014, is of € 22.3m showing an increase of almost 10% compared to the first semester of 2013 (€ 20.3m).
     
  • The operating revenue clearly progresses from € 16.0m to € 19.2m.
     
  • Consolidated Net Profit reaches € 13.8m versus € 16.6m on June 30th, 2013;

        It has been negatively affected on the financial instruments value by € 2.4m (vs € +0.5m first semester 2013). The counterpart of this depreciation is a maintained favourable refinancing cost.
  

  •    The Net Corporate Income increases from € 13.8m as of June 30th, 2013 to € 16.6m as of June 30th, 2014; showing progress of the activity.

  

  •    Based on the consolidated income statement, the cash-flow reaches € 13.0m, for the six first months of the period.  It is remembered that the cash-flow for the financial year 2013 amounted to € 24.1m.

  

  •    At June 30 2014, the consolidated Group Shareholders' equity amounted to € 415m (including net profit for the period).

             

  •   The interest expenses for this semester show an average cost of loan of 2.6% after hedging, compared to 2.3% in 2013. The Company is covered up to 90% at June 30th, 2014 and over 75% until end of 2017. The loan to ratio value (net debt/revalued Group shareholders' equity) amounts to 45% at June 30 2014, versus 36% end of December 2013.

             

OUTLOOK - EVENTS OCCURRED AFTER CLOSURE

  •    Beginning July 2014, Foncière des 6ème et 7ème Arrondissements de Paris acquired 67.5% of SCI Saint-Pères Fleury. This SCI (French real estate Company) of which the Company already held 32.5%, owns the former Ecole de Ponts et Chaussée, located rue des Saint Pères (approximately 9,200 sq.m) and is today let to Sciences Po on a long term lease agreement. This acquisition allows the Company to group the full ownership of this high quality asset (9,200 sq.m.) that generates € 3.8m of annual rents.

  

  •   Foncière des 6ème et 7ème Arrondissements de Paris remains attentive to market opportunities to develop new projects, well reflected with the acquisition of the group of buildings "Penthemont", a medium-term growth opportunity.  This entity allows a new step in refurbishment and will value Foncière des 6ème et 7ème Arrondissements de Paris portfolio and will generate important and additional rental income.

  

  •   In view of these positive outlooks and of the operating assets entirely leased, the aim of Foncière des 6ème et 7ème Arrondissements de Paris is to recommend the payment of a dividend narrowing €1for the financial year of 2014, compared to the dividend of €0.90 per share paid for the financial year of 2013.

       

About Foncière des 6ème et 7ème Arrondissements de paris (siic)

Listed in 2007, the Company holds an asset portfolio of about 68,000 sq.m. of high quality to be refurbished and then rented, of which 56,000 sq.m are already renovated and let.

Foncière des 6ème & 7ème Arrondissements de Paris (SIIC) is listed on Nyse Euronext (Paris), compartment B (Symbol : SRG, ISIN code : FR0010436329).

www.fprg.fr:
http://www.fprg.fr

Contacts

Foncière des 6ème et 7ème Arrondissements de paris (siic)

Arnaud POMEL - Séverine FARJON - Xavier SIZARET

Phone: 01 53 70 77 77

F6&7 - HY resultts 30-07-2014:
http://hugin.info/143538/R/1844020/642047.pdf



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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Foncière des 6ème et 7ème Arrondissements de Paris via Globenewswire

HUG#1844020