ZUBLIN IMMOBILIERE : Züblin Immobilière France : Results half year 2015/2016

Press release
Paris, November 27, 2015

Results half year 2015/2016

• Property portfolio valued at € 253.3 million (excluding duties)
• Gross rental income: € 2.7 million (6 months)
• Negative consolidated net result: € -14 million
• Equity: € 3.2 million
• EPRA NAV per share: € 0.83

Signatures of new leases, lower vacancy rate

Since April 1^st, 2015, Züblin Immobilière France signed two new leases on Imagine building, one with the company ProStrakan Pharma and the other with the American Hospital of Paris, globally representing 2.000 sqm and 945 K€ gross rental revenues.

At September 30, 2015, the vacancy rate was 57%, down 4.1% compared to March 31, 2015 (61.1%). Taking in account the effective starting dates of the above mentioned leases and the one of the lease signed in February 2015 with Orangina Schweppes France, the vacancy rate should drop to 40.7% in the second half of the 2015/2016 financial year.

Stable rents, increased portfolio valuation

At September 30, 2015, JLL - the independent expert - estimates that the rental value of the company's properties is € 18.4 million and that its gross valuation is € 261 million, representing a yield of 7.1%. The net valuation is estimated at € 253.3 million by JLL, up € 4.6 million compared to March 31, 2015.

The gross rental income booked as at September 30, 2015 for the half year is € 2.7 million compared to € 3.6 million as at September 30, 2014. This decrease is due to the sale of the building Chaganne in October 2014. On a like for like basis, rents were stable.

Operational and financial expenses impacted by non-recurring exceptional expenses

Operating costs amounted to € 2.9 million as at September 30, 2015, a sharp increase compared to the first half of the previous year. This is due to the recognition of non-recurring exceptional expenses related to shareholder and financial restructuring of the Company which ended on July 31, 2015.

Financial expenses, which were € 7.1 million in the 1st half of the 2014/2015 financial year amounted to € 13.2 million for the first six months of the 2015/2016 financial year. This increase mostly results from the end of the interests activation on the non-bank loan, which outstanding amount also increased (€ 104.3 million at September 30, 2015) and the recognition of non-recurring expenses linked to the new mortgage financing with Helaba Bank (unwinding of interest rate swaps).

Strengthening of Financial Position

Following the shareholder and financial restructuring that ended July 31, 2015, Züblin Immobilière France's financial situation improved:

• repayment of old mortgages (€ 146.3 million) that were due to expire end June 2016;
• establishment of a new mortgage of € 132.2 million due end in July 2020 with Helaba bank at a rate of 2.2% (after swaps);
• establishment of cash reserves of € 13.5 million which cover (i) the payment of interests on the new mortgage (and the attached rate swaps), (ii) cash requirements associated with the operation of buildings and (iii) operating costs for the next 18 months.

The mortgage debt, net of cash and cash reserves, represents 45.5% of the net value of the company's assets.

Outlook

In an economic context that remains difficult, which negatively influence the office rental market, Züblin Immobilière France, and Scaprim Asset Management teams, which the company has entrusted the asset management of its assets, are actively pursuing the marketing of vacant spaces assets located in Neuilly-sur-Seine, to restore the Company's profitability.

The results of both 2015/2016 and 2016/2017 financial years will be impacted by the financial vacancy and rent-free periods granted to new tenants will keep on weighing on cash.

Key figures for HY 2015/2016

* :  restated figures taking in account IFRIC21 Taxes collected by an administration

Contacts

Pierre Essig, CEO, Züblin Immobilière France
52B rue de la Bienfaisance, 75008 Paris
Tel. +33 (0)1 40 82 72 40, pierre.essig@zueblin.fr:
mailto:pierre.essig@zueblin.fr
More information is available on our website: www.zueblin.fr:
http://www.zueblin.fr/        

About Züblin Immobilière France

Züblin Immobilière France is a listed property company that has opted for SIIC status. The company invests in office properties, and features a real estate portfolio consisting of five office buildings in Paris Region and Marseille.
Shares of Züblin Immobilière France trade on compartment C of Nyse Euronext Paris - ISIN: FR0010298901