FONCIERE 6 ET 7 PRESS RELEASE - FEBRUARY 16TH, 2016
2015 FULL-YEAR FINANCIAL RESULTS
PARIS, February 16th, 2016 - The Board of Directors of Foncière de Paris met on February 15th, 2016 and approved the Company's financial statements for the period running from January 1st to December 31st, 2015 in compliance with the IFRS standards. It presented its report on the annual financial statements to the Supervisory Board on February 16th, 2016. The auditing procedures were carried out by Statutory Auditors and their review will be currently issued. This press release should be read with all available information. The Reference document will be released in April 2016 on the Company's website
www.fonciere-de-paris.fr
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Sharp increase of the Net Asset Value, EPRA Triple Net on a diluted basis: € 134.72 per share vs €118.35 per share on December 31st, 2014 (+13.8%)
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Replacement NAV : €146.30 (+14%)
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Doubling of the Group's stock of unrealised capital gains at €406 million vs €199 million on December 31st, 2014
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Increase of the net EPRA pro forma profit: €7.06 per share vs €6.83 on December 31st, 2014 (+3.4%)
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Proposed dividend: €9 per share, including €6.20 of ordinary dividend and €2.80 of exceptional dividend.
A SUSTAINED RENTAL BUSINESS ACTIVITY CONFIRMED WITH THE INCREASE OF THE OCCUPANT RATE BY TWO POINTS REACHING 97.4%- 57,000 sq.m commercialised in 2015
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Increase of the occupancy rate from 95.1% to 97.4%
EXTENDED DEBT MATURITY AND DECREASED FINANCIAL COST - Extension of the average debt maturity at 4 years vs 3.4 years in 2014.
- Steady spot financing cost after hedging: 2.64% as at December 31st, 2015 vs 2.61% as at December 31st, 2014.
ACTIVITIES
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RENTAL BUSINESS ACTIVITY: A SUSTAINED RENTAL ACTIVITY
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During the period, the Company rented or re-commercialised approximatively 57,000 sq.m notably:
At the beginning of the year, the future occupancy of the Penthemont Building complex (Paris VII) was totally secured by the signature of the lease with Yves Saint-Laurent for approximatively 9,200sq.m. A franchise agreement was concluded with the Hotel Marriott Chain aiming a 5* hotel with 50 rooms for the remaining surface of the Penthemont Building complex (3,500sq.m).
The Coruscant Building in Saint-Denis (14,550 sq.m) has been rented to the SNCF (French National Railway Company) for a 10 year term of which 9 years are fixed.
In the Biopark building (Paris XIII) 2,600sq.m were leased, achieving the full occupancy of this site of 30,000 sq.m.
The leasing of over 1,900 sq. m in the "Campra" building in Saint-Denis brings the occupancy rate at 100% for this building.
A recently refurbished space of 1,050 sq.m, located 251, bd Pereire (Paris XVII) was rented to Robert Walters PLC Company for a 6 year term.
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The momentum of the rental activity resulted in a financial occupancy rate increase of over two points at 97.4% vs 95.1% on December 31st, 2014.
On December 31st, 2015, the average lease maturity is of 4.7 years vs 4.2 years in 2014.
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During the period, the Company rented or re-commercialised approximatively 57,000 sq.m notably:
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FONCIERE DE PARIS INVESTED 53 MILLION EUROS IN PARIS INTRA-MUROS IN 2015
In 2015, the Company made two acquisitions:
- Paris VI - 92, rue de Vaugirard - acquisition of the land of the Holiday Inn Paris Saint Germain des Prés Hotel. The Company was already owner and operator of the hotel business. The acquisition of this real estate property gives full ownership of a high quality asset.
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Paris VII - 127-129, rue de l'Université (11,740 sq.m) - acquisition of the full ownership of a building complex, entirely let composed of 2,300 sq m of offices, 700 sq. m of residential housing and 330 parking places. This asset is meant to be totally refurbished.
Six buildings were sold during the period for a total amount of 102.5 million euros, with values higher than those registered in NAV of December 31st, 2014, generating a capital gain of 22.8 million euros. It concerns mainly "Rueil 250" building located in Rueil- Malmaison, a building located 76-80, avenue du Général Leclerc (Paris XIV) and a building located 4, rue de Lasteyrie (Paris XVI).
ASSET PORTFOLIO: 2.6 BILLION OF EUROS OF REAL ESTATE PORTFOLIO VALUE
The value of the portfolio appraised as of December 31st, 2015 is of 2.6 billion euros vs 1.3 billion euros as of December 31st, 2014. This change is mainly due to:The merger with Foncière des 6ème et 7ème arrondissements de Paris
An increase of unrealised capital gains doubled, passing from 199 million euros as of December 31st, 2014 to 406 million euros as of December 31st, 2015, particularly owing to:
Re-leasing of assets occurred during the financial year
Depreciation charges (€28m)
Valuation of assets delivered in 2015 (Le Coruscant in Saint-Denis)
Valuation of secured projects (offices in Penthemont building complex)
A cap rate compression of approximatively 50bp
In compliance with the IFRS standards, the annual consolidated income statement takes into account the financial results of Foncière des 6ème et 7ème arrondissements de Paris only from April 1st, 2015 on, and not starting January 1st, 2015 as in the Company's accounts. In order to facilitate comparison, pro forma indicators have been established:
This point being said, the consolidated turnover as of December 31st 2015 was as follows:
In millions of euros (€m)
2014
2015
2014
Pro-Forma
2015
Pro-Forma
Turnover
113,3 M€
141,9 M€
161,8 M€
153,2 M€
Of which rental income
79,4 M€
95,8 M€
112,5 M€
104,1 M€*
*do not include €5.9 m of early termination penalties
The consolidated turnover amounts to €141.9 million vs €113.3 million at December 31st, 2015, split as following:
€95.8 million from rental income (€79.4 million in 2014), excluding dividends on shares held in Eurosic for an amount of €4.63 million
€14.6 million from lease payments for credit-leasing (€21.4 million in 2014),
€31.5 million from hotel activity income (€12.5 million in 2014).
The investment property business represents from now on 83% of Foncière de Paris EBITDA showing a shrinking of credit-leasing activity.
On December 31st, 2015, the main cash flow indicators were:
In euros (€)
2014
2015
2014
Pro-Forma
Pro-forma
Current cash flow per share (EPRA Earning)
7,84 €
6,59 €
6,83 €
7,06 €
Total cash flow per share
10,13 €
8,22 €
7,55 €
8,70 €
On a pro forma basis the current cash flow per share has progressed from €6.83 per share to €7.06 per share.The net consolidated profit amounts to €45.7 million vs €33.6 million as at December 31st, 2014. The net income, used to determine the ordinary dividend reaches €63.8 million compared to €41.1 million in 2014, which is €6.20 per share versus €6.21 per share in 2014.
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The Net Asset Value, EPRA Triple Net value on diluted basis of Foncière de Paris amounts to €134.72, excluding transfer duties vs €118.35 per share excluding transfer duties on December 31st, 2014. The Net Asset Value IFRS (excluding transfer duties) amounts to €135.23 per share compared to €118.69 per share on December 31st, 2014.
REFINANCING: DURING THE PERIOD, FONCIERE DE PARIS EXTENDED ITS DEBTS MATURITY WHILE REDUCING ITS AVERAGE COSTIn € per share
31/12/2014
31/12/2015
% increase
NAV Triple net EPRA
118,35
134,72
+13,8%
NAV IFRS
118,69
135,23
+13,9%
NAV including duties
128,25
146,30
+14%
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Due to the bond issue of €150 million in November and the signing of new credit lines confirmed since the beginning of the financial year, the debt maturity passed from 3.4 years end of December 2014 to 4 years end of December 2015. Nevertheless the spot cost of refinancing has stayed steady at 2.64% vs 2.61% on December 31st, 2014.
The Company took advantage of the weak steepening yield curve, during the year, to purchase €795 million swaps at a weighted average rate of 1% (a majority being with a deferred start) and €150 million caps at average strike option of 0.5% and a date of maturity mid-2021. Overall, the Company is still hedged at 78% on December 31st, 2015 and over 50% up to mid-2022.
The Loan To Value ratio remains steady at 44%.
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On December 31st, 2015, the Company held €584.3 million of undrawn credit lines.
INCREASED DIVIDEND At the General Meeting of Shareholders the payment of a dividend of €9 per share will be proposed, versus €6.1 in 2014. This dividend is composed of:
An ordinary distribution amounting to €6.20 € per share
An exceptional distribution of €2.80 € per share, due to the significant rise of restated NAV during the year and the successful merger with Foncière des 6ème et 7ème arrondissements de Paris.
This total dividend of €9 per share represents a dividend yield of 8.12% on stock price at December 31st, 2015.
OUTLOOK
The asset portfolio of Foncière de Paris conceals strong business growth drivers. A refurbishment program of the assets began in December 2015, representing an amount of work expenses of €120 million over the three next years, offering a potential of €21 million of additional rental income. In addition to the Penthemont building and the building located 37, bd de Montmorency, other
buildings will be refurbished before being re-let, strengthening therefore, the quality of the assets and securing the distributive capacity of the Company for the next financial years.
AGENDAApril 12th, 2016: Annual Shareholders' Meeting
Foncière de Paris is listed on Euronext Paris since 1987 (code ISIN: FR0000034431). www.foncière-de-paris.fr
François Thomazeau/Olivier Riché/Arnaud Pomel
Séverine Farjon - farjon@foncieredeparis.fr - 01 53 70 77 77
Foncière des 6ème et 7ème Arrondissements de Paris (SIIC) SA issued this content on 16 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 16 February 2016 16:46:23 UTC
Original Document: http://www.fprg.fr/uploads/fdp-pr-2015-financial-restuls.pdf
