Regulatory News:

Züblin Immobilière France (Paris:ZIF) announces its financials for the first half of the financial year 2011/2012 and recent highlights:

  • Consolidated net profit of ?1.74m
  • EPRA Net Asset Value confirmed at ?106.6 m (?105.5m as of 31 March 2011)
  • Financing secured for the "Jatte 1" renovation project, building permit has been obtained and final construction approval is expected during first quarter 2012.

The key financial indicators announced for the first half of the financial year 2011/2012 remain unchanged from the preliminary information released on 26 October 2011.

Stable portfolio

As of 30 September 2011, gross open value of the investment property portfolio stood at ?331m, stable (+0.3%) compared to 31 March 2011. The occupancy rate of the operating investment properties was 91.6%, compared with 93.9% as of 31 March 2011. Annualized rental income amounted to ?19.3m and total annualized market rental income was estimated at ?22.8m by independent appraiser, BNP Paribas Real Estate.

Financials

Rental income for the half-year decreased by 4.8% to ?10.9m compared with the same period last year, in large part due to the decrease in occupancy rate. For the first six months of the Financial Year 2011/2012 operating income stood at ?6.9m. The negative -?2.1m fair value adjustment reported in the profit and loss statement for the first half of the 2011/2012 Financial Year mostly resulted from the booking of ?2.5m of investments carried out over the first half, related mainly to the Jatte 1 and Jatte 3 renovation projects. Overall, Züblin Immobilière France generated a profit of ? 1.7m (previous half year ? 5.1m). Fully diluted operating cash flow per share was ?0.31 for the first half, compared with ?0.40 for the same period of the previous Financial Year.

Stronger Balance Sheet

Considering the positive impact of the operating earnings, together with the impact of the change in investment property value, EPRA NAV was ?106.7m as of 30 September 2011 compared with ?105.5m as of 31 March 2011. Given the distribution of free shares resulting from the capital increase out of the share premium reserve, fully diluted EPRA NAV per share was ?8.62, compared with ?9.04 as of 31 March 2011.

Züblin Immobilien Holding AG has granted Züblin Immobilière France with a CHF 9m loan with a 4 years maturity, contributing thus to secure the renovation budget for the Jatte 3 building. The Company has no need to refinance the existing debts for the next two years and has a ?25m cash at hand.

In order to grant Züblin Immobilière France with further financial flexibility during upcoming Ile de la Jatte investment properties renovation period, an agreement has been reached with Natixis to adapt covenants follow up until loans maturity.

Renovation project "Jatte 1": building permit obtained and financing secured

The preparatory work for the renovation project "Jatte 1" has now been completed with the award of the contract to the Bouygues Group as total general contractor. The building permit has been obtained and final construction approval is expected during first quarter 2012. The financing of the "Jatte 1" project is being provided internally with a loan from the parent company, Züblin Immobilien Holding AG. This investment property which is in a prime location is being refurbished into a modern and energy efficient office building.

Outlook

Züblin Immobilière France will proceed with the renovation of Ile de la Jatte investment properties as scheduled. Until the tenants are able to move into the buildings respectively at the end of 2012 for Jatte 3 and in two years time for Jatte 1, the rental income of Züblin Immobilière France is expected to decrease by around 45%. Thereafter the investment in Ile de la Jatte will start to pay off. In order to cope with the ongoing difficult market conditions Züblin Immobilière France will continue to pursue its current strategy rigorously. This means investing in energy efficiency, improving the equity ratio and providing expertise and quality for our customers, thus ensuring Züblin Immobilière France's sustained growth.

Semi-annual report 2011/2012

The semi-annual report for Financial Year 2011/2012 is available on the Züblin Immobilière France website (www.zueblin.fr)

An investor meeting will take place on 17 November 2011 at 5.30pm, and the presentation document will be available on the Company's website from 18 November 2011.

Züblin Immobilien Holding AG, the Züblin group's parent company, will release its semi-annual results for Financial Year 2011/2012 on 17 November 2011, before market. Further information can be found under www.zueblin.ch

A brief outline of the Züblin Group

Züblin Immobilière France is a listed property company, which has elected for REIT status (SIIC status). The company invests in office properties, and its real estate in France consists of 8 office buildings in Paris area, Lyon and Marseille.

Shares of Züblin Immobilière France trade on compartment C of Euronext Paris market of Nyse Euronext - ISIN: FR0010298901

Key figures for the first half of the financial year 2010/2011

   
In ?m 30.09.2011 30.09.2010
Income statement
Rental income 10.9 11.5
Overheads and corporate expenses (1.3) (1.1)
Change in assets valuations (2.1) 0.4
Net operating income 6.9 10.6
Financial income 0.3 0.0
Interest paid / financial expenses (5.2) (5.5)
Net income 1.7 5.1

 

In ?m 30.09.2011 31.03.2011
Balance sheet
Investment properties 311.7 311.5
Current assets 35.5 33.2
Total equity 89.0 92.2
Non-current liabilities 252.2 241.5
Current liabilities 13.6 14.8
Total liabilities 354.8 348.6
 
Key figures per share 30.09.2011 31.03.2011
EPRA NAV (fully diluted) 8.62 9.04
30.09.2011 30.09.2010
Operating cash flow (fully diluted) 0.31 0.40

This press release is not intended as an offer or a solicitation to buy Züblin Immobilière France shares in the United States of America nor any other country where such an offer would be in breach of applicable laws and regulations. Züblin Immobilière France shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended. Züblin Immobilière France does not intend to register Züblin Immobilière France shares under the US Securities Act of 1933 or to offer these shares for sale in the United States of America.

The shares are only available and may only be offered to or issued to those relevant persons who are legally authorised, and any offer, solicitation or agreement in view of a purchase of existing shares or an application for new shares can only be carried out with those who are legally entitled to do so.

Other persons should not act or rely on this press release. This document or any other document related to the company should only be distributed in accordance with the conditions above.

This document does not constitute an offer to sell or the solicitation of an offer to invest.

Distribution of this press statement in some countries can be a violation of applicable legislation.

This press release is not for publication or distribution in the United States, the United Kingdom, Canada, Italy, Australia or Japan.

For more information
Züblin Immobilière France
Eric Berlizon, CFO, +33 (0)1 40 82 72 40
info@zueblin.fr
www.zueblin.fr
or
NewCap., Financial communication
Pierre Laurent, Dusan Oresansky, +33 (0)1 44 71 94 94
Fax +33 (0)1 44 71 94 90
zueblin@newcap.fr