ZUBLIN IMMOBILIERE : Züblin Immobilière France announces a FY 2010/2011 net profit of ?11.3m, a substantial 8.1% increase in diluted EPRA NAV per share to ?9.04 and a distribution of free shares representing a yield of 7%
05/17/2011| 02:05pm US/Eastern
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Substantial increase in NAV per share
The gross open market value of Züblin Immobilière (Paris:ZIF) France's
property portfolio amounts to ?330.2m, an increase of +1.5% compared to
31 March 2010.
As of 31 March 2011, the physical portfolio occupancy rate remained
unchanged over the last six months at 93.9%, versus 94.3% at 31 March
2010.
EPRA NAV per share, on a diluted basis, was ?9.04, i.e. representing a
strong increase of +8.1% over the year. At 31 March 2011, the share
price (?3.72) thus showed a record discount of 59%.
Results and cash flow per share
On an annualised basis, rents totalled ?22.7m at 31 March 2011, and were
thus almost stable (-1.3% on the year). The gross yield was hence 6.9%.
2010/2011 net profit totalled ?11.3m, compared to ?16.6m for the
previous 12 months. The upward adjustment in the fair value of the
property portfolio, smaller than a year ago, provided a positive
contribution of ?2.8m to 2010/2011 annual profit (representing a +0.9%
increase on investment property portfolio net open market value as of 31
March 2010).
Due to the full-year effect of the last year vacated space in the Jatte
3 and Magellan buildings , operating cash flow per share totalled, on a
diluted basis, ?0.79 in FY 2010/2011 versus ?0.89 the previous year.
Over the financial year, Züblin Immobilière France generated cash flow
of ?9.2m, thus enabling it to further strengthen its cash position.
Financial solidity
At 31 March 2011, Züblin Immobilière had a cash position of ?29.1m,
?24.1m of it immediately available (versus ?23.7m at 31 March 2010). The
Company's financial structure is solid, with stable bank debt of ?227.8m
and no refinancing deadlines before the end of 2013.
The consolidated net LTV ratio improved thanks to the increase in the
value of the portfolio, and stood at 63.6% at 31 March 2011 compared to
66.2% a year earlier.
Züblin Immobilière is also pleased to announce that Aareal bank has
waived its covenants on Jatte 1 and Jatte 2 buildings' debt until the
loan matures in July 2014.
Züblin Immobilière France thus has greater flexibility to successfully
carry out this major redevelopment project.
Creation of Züblin Immobilière France Asset Management
The Company announces the setting up of Züblin Immobilière France AM.
This structure, 100% held by Züblin Immobilière France, will ensure the
asset management of (i) the group companies and (ii) third parties
investment vehicle such as the OPCI real estate investment fund Pierres
Vertes Investissements set up in partnership with Viveris REIM. This
fund is dedicated to the acquisition of office buildings with a view to
renovating them to meet new French environmental standards. Züblin
Immobilière France is thus seeking to increase its revenue, diversify
its risk profile and gradually resume its real-estate growth momentum on
this very high-potential segment.
Outlook: instigation of environmental renovation work
For FY 2011/2012, Züblin Immobilière France expects an end-of-crisis
property context with less, albeit persistent, pressure on rental
values. The Company will continue to pursue its strategy of increasing
tenant loyalty and boosting the value of its property portfolio by
gradually carrying out environmental renovation work on its assets,
which will create significant value.
Regarding the redevelopment of the Jatte 1 building, subject to the
building permit being obtained by the end of the year, work is scheduled
to start in early 2012 with delivery of the building slated for the end
of 2013. This ambitious project foresees the creation of 2 730 m2
of new office space and should cost a total of ?55m. Züblin Immobilière
France will thus have a rare and modern property asset with a surface
area of more than 17 650 m2 meeting the highest
energy-efficiency standards and located in one of the Paris region's
most prestigious locations, which should thus attract very high-quality
tenants.
Regarding the renovation work on the currently-occupied Jatte 3
building, the 1st phase, which relates to the renovation of
1,300 m2, is underway with completion slated for the
summer of 2011. The following phases will be carried out until mid 2012
as the building's various floors are freed up for a global investment of
?12.4m.
During the period of renovation of these buildings (i.e. 24 months),
rental revenues will decrease significantly, however they will remain
sufficient to cover financial and structure costs.
Distribution of free shares resulting from a capital increase out of
the share premium reserve
Given the positive cash flow generated over the 2010/2011 financial
year, and ever respectful of our shareholders, Züblin Immobilière
France's Board will ask the Shareholders' Meeting of 28 June 2011 to
approve a distribution in the form of a free share allocation with 1
share allocated for every 16 held shares. This issue, which will
preserve the Company's financial resources, will thus take the form of a
capital increase incorporating share premium reserve. Based on the
current level of share price (?4.0), this free share allocation
represents a yield of approximately 7% on the average 2010/2011 share
price (?3.56) for shareholders.
This distribution will allow the Company to reward the loyalty of its
shareholders whilst enabling them to benefit from the substantial value
creation associated with the Company's renovation projects.
A press release detailing the allocation procedure will be issued along
with the preparatory documents relating to the shareholders general
meeting called in connection with the financial statements for the year
ended 31March 2011.
A brief outline of Züblin Immobilière France
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
|
|
31.03.2011
|
|
31.03.2010
|
|
Income statement
|
|
|
|
|
|
Rental income
|
|
22.8
|
|
24.3
|
|
Overheads and corporate expenses
|
|
(2.8)
|
|
(2.3)
|
|
Change in assets valuations
|
|
2.8
|
|
6.5
|
|
Net operating income
|
|
22.1
|
|
27.7
|
|
Financial income
|
|
0.0
|
|
0.0
|
|
Interest paid / financial expenses
|
|
(10.9)
|
|
(11.1)
|
|
Net income
|
|
11.3
|
|
16.6
|
|
|
|
|
|
|
|
Balance sheet
|
|
|
|
|
|
Investment properties
|
|
311.5
|
|
306.9
|
|
Current assets
|
|
33.2
|
|
32.2
|
|
Total equity
|
|
92.2
|
|
76.3
|
|
Non-current liabilities
|
|
241.5
|
|
248.4
|
|
Current liabilities
|
|
14.8
|
|
14.8
|
|
Total liabilities
|
|
348.6
|
|
339.5
|
|
|
|
|
|
|
|
Key figures per share
|
|
|
|
|
|
EPRA NAV (fully diluted)
|
|
9.04
|
|
8.36
|
|
Operating cash flow (fully diluted)
|
|
0.79
|
|
0.89
|
|
Share price
|
|
3.72
|
|
3.88
|
|
|
|
|
|
|
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.
Züblin Immobilière France
Eric Berlizon, CFO, +33 (0)1 40 82 72 40
info@zueblin.fr
More
information can be found on our website www.zueblin.fr
or
NewCap
Financial
communication
Steve Grobet, Dusan Oresansky, +33 (0)1 44 71 94 94
Fax
+33 (0)1 44 71 94 90
zueblin@newcap.fr
© Business Wire 2011
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