SFL - Third-Quarter 2020 Financial Information
15.10.2020 21:37:00 EEST | Business Wire | Press release
Regulatory News:
SFL (Paris:FLY)
Rental income: €137.7m
|
Consolidated revenue by business segment (€000’s) |
|||
|
|
|
2020
|
2019
|
|
Rental income |
137,667 |
149,070 |
|
|
o/w |
Paris Central Business District |
114,845 |
121,877 |
|
|
Paris Other |
20,996 |
25,786 |
|
|
Western Crescent |
1,826 |
1,407 |
|
Other revenue |
0 |
0 |
|
|
Total consolidated revenue |
137,667 |
149,070 |
|
Consolidated rental income for the first nine months of 2020 amounted to €137.7 million, down €11.4 million or 7.6% from the €149.1 million reported for the same period of 2019.
- On a like-for-like basis (excluding changes in consolidation scope affecting period-on-period comparisons), rental income contracted by €3.5 million. The 2.6% decline was due to the effects of the Covid-19 crisis, which led to rent holidays being granted to tenants of retail units and the closure of the Edouard VII and #cloud.paris conference centres as well as the Indigo hotel. Excluding the effects relating to the conference centres, the Indigo hotel and the Edouard VII car park, representing a reduction of €4.6 million in top-line rental income and of €2.8 million in net rental income, the like-for-like change in the top-line was a positive €1.1 million (0.8%).
- Rental income from units being redeveloped or renovated in the periods concerned was down by €4.7 million, due to the renovation of several floors that were vacated in late 2019 and early 2020, mainly in the 103 Grenelle and Edouard VII buildings.
- Lastly, period-on-period comparisons were adversely affected by the €3.2 million in income received from various penalties in 2019.
The rent recovery rate for the second and third quarters of 2020 currently stands at a very satisfactory 96% overall, and at 100% for office units. Negotiations are currently in progress with the remaining tenants that are behind with their rent, and agreements are imminent in the vast majority of cases.
Business review
Despite the Covid-19 crisis, which triggered a 46% drop in the Paris region’s rental market volume over the first nine months of 2020, the Group signed leases on around 18,000 sq.m. during the period, including 10,000 sq.m. of office space, on very good terms. They included the pre-letting of 85% of the 83 Marceau building which is currently being redeveloped and will be delivered in the second half of 2021.
The new office leases were signed at an average nominal rent of €867 per sq.m., corresponding to an effective rent of €754 per sq.m. These prices attest to the Paris rental market’s resilience and the very high quality of the Group’s properties.
The physical occupancy rate for revenue-generating properties stood at 94.7% at 30 September 2020 compared with 97.4% at 31 December 2019. The remaining vacant units mainly comprise 5,700 sq.m. of newly renovated offices in the 103 Grenelle building which have recently been delivered and the Le Vaisseau building in Issy-les-Moulineaux. The EPRA Vacancy Rate was 4.7% at 30 September 2020 versus 1.6% at 31 December 2019.
No properties were purchased or sold during the first nine months of 2020.
Financing
As part of its active debt management strategy, in early September SFL launched a tender offer on its two notes issues maturing in November 2021 and November 2022. The €160.7 million worth of notes tendered to the offer were retired, allowing SFL to reduce its future average borrowing costs and extend the average maturity of its debt.
SFL’s consolidated net debt at 30 September 2020 amounted to €1,874 million, compared with €1,732 million at 31 December 2019, representing a loan-to-value ratio of 24.3% based on the portfolio’s appraisal value at 30 June 2020. The average cost of debt after hedging was 1.5% and the average maturity was 4.7 years. At end-September 2020, the interest coverage ratio stood at 5.2x.
In addition, SFL had €1,040 million in undrawn lines of credit at 30 September 2020.
Management of the Covid-19 health crisis
From the onset of the crisis, SFL took all necessary measures to limit the pandemic’s effects on its business and results:
- All the office buildings remained open and available for use by tenants and the necessary health protection measures deployed in the buildings’ common areas were regularly updated to comply with successive government directives.
- The conference centres (Edouard VII and #cloud.paris) and the Indigo hotel (Edouard VII) that were closed during lockdown were re-opened in July, despite the very sluggish business environment.
- Government measures concerning very small businesses and small retail outlets were applied and tenant requests for help were managed on a case-by-case basis in order to provide them with the necessary support as far as possible, for example by allowing them to defer payment of their second quarter rent.
- Property leasing activities continued, keeping a close watch on the rental market.
- Agreements were signed with the general contractors working on the main redevelopment projects currently in progress.
- The Group’s financial liquidity was strengthened.
To ensure business continuity while also protecting employees, all of SFL’s teams worked from home during the lockdown and no employees were furloughed. Since the lockdown was lifted, they have been gradually returning to the office while benefiting from flexible office/home working arrangements.
SFL has also contributed to the collective effort to fight the pandemic by donating €550,000 to the Fondation de France’s programmes in support of hospitals and health workers, medical research and assistance for vulnerable people.
About SFL
Leader in the prime segment of the Parisian commercial real estate market, Société Foncière Lyonnaise stands out for the quality of its property portfolio, which is valued at €7.2 billion and is focused on the Central Business District of Paris (#cloud.paris, Edouard VII, Washington Plaza, etc.), and for the quality of its client portfolio, which is composed of prestigious companies in the consulting, media, digital, luxury, finance and insurance sectors. As France’s oldest property company, SFL demonstrates year after year an unwavering commitment to its strategy focused on creating a high value in use for users and, ultimately, substantial appraisal values for its properties.
Stock market: Euronext Paris Compartment A – Euronext Paris ISIN FR0000033409 – Bloomberg: FLY FP – Reuters: FLYP PA
S&P rating: BBB+ stable outlook
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
View source version on businesswire.com: https://www.businesswire.com/news/home/20201015005964/en/
Contact information
SFL - Thomas Fareng - T +33 (0)1 42 97 27 00 - t.fareng@fonciere-lyonnaise.com
Evidence – Grégoire Silly – Phone: 06 99 10 78 99 – gregoire.silly@evidenceparis.fr
www.fonciere-lyonnaise.com
About Business Wire
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Lattice to Showcase Open Control Plane Innovations for AI Infrastructure at OCP Global Summit 202628.9.2026 23:00:00 EEST | Press release
Lattice Semiconductor (NASDAQ: LSCC), the low power programmable and platform firmware leader, today announced its participation in OCP Global Summit 2026. At the event, Lattice and AMI, a Lattice company, will demonstrate how an open control plane can help organizations build secure, scalable, and manageable AI infrastructure from silicon to rack. During the event, Lattice will deliver keynote and technical presentations, showcase open management and control solutions, and host interactive demonstrations highlighting secure platform firmware, infrastructure manageability, AI rack management, quantum-resistant security, connectivity, and modular rack-scale architectures. Together, Lattice and AMI technologies will be in full display, demonstrating how organizations can build open, interoperable infrastructure capable of supporting the growing demands of AI data centers. Who: Lattice Semiconductor and AMI, a Lattice Company What / When:Keynote Presentation – “The Open Control Plane: Fro
SLB Announces Date for Third-Quarter 2026 Results Conference Call28.9.2026 20:17:00 EEST | Press release
SLB (NYSE: SLB) will hold a conference call on October 23, 2026, to discuss the results for the third quarter ending September 30, 2026. The conference call is scheduled to begin at 9:30 a.m. U.S. Eastern time and a press release regarding the results will be issued at 7:00 a.m. U.S. Eastern time. To access the conference call, listeners should contact the Conference Call Operator at +1 (800) 715-9871 within North America or +1 (646) 307-1963 outside of North America approximately 10 minutes prior to the start of the call and the access code is 3440360. A webcast of the conference call will be broadcast simultaneously at https://events.q4inc.com/attendee/293449855 on a listen-only basis. Listeners should log in 15 minutes prior to the start of the call to test their browsers and register for the webcast. Following the end of the conference call, a replay will be available at www.slb.com/irwebcast until October 30, 2026, and can be accessed by dialing +1 (800) 770-2030 within North Amer
Boomi Named a Leader and Secures Highest Score in the Strategy Category in Adaptive Process Orchestration Software Evaluation28.9.2026 18:45:00 EEST | Press release
Boomi™, the data activation company for AI, today announced it has been named a Leader in The Forrester Wave™: Adaptive Process Orchestration Software, Q3 2026. The report evaluated 13 providers, and Boomi achieved the highest score in the strategy category. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260928931590/en/ Boomi Named a Leader and Secures Highest Score in the Strategy Category in Adaptive Process Orchestration Software Evaluation According to the report, Boomi’s “above-par roadmap is driven by a strong internal innovation process that embraces partner input and customer feedback, while recent investments focus on supporting client data sovereignty and control in geographies where sovereignty matters.” The report also cites Boomi's vendor-neutral control plane for agentic automation as allowing it to extend into the process automation market, an approach reinforced by recent acquisitions, such as Lunar.dev, an
Azalea Vision Enrolls First Patient in Proof-of-Concept Study Evaluating Novel Optical Aperture for Keratoconus and Presbyopia28.9.2026 17:27:00 EEST | Press release
Azalea Vision, a Belgian healthtech company building the first medical-grade smart contact lens, today announced that it has enrolled the first patient in its NOA proof-of-concept study. The study marks the start of Azalea’s clinical program, following its selection for the European Innovation Council (EIC) Accelerator. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260928982998/en/ Novel Optical Aperture smart lens The study is conducted at Visser Contact Lenses (Netherlands) and the University Hospital Antwerp (UZA, Belgium). It evaluates a contact lens with a precisely positioned aperture, the optical principle at the core of Azalea’s adaptive smart lens, to reduce higher-order aberrations in keratoconus and to improve near vision in presbyopia. “For people living with keratoconus and presbyopia, better optical solutions can make a real difference in everyday life. We are proud to take part in this first clinical step and
CORRECTING and REPLACING SES Launches Cash Tender Offer28.9.2026 16:42:00 EEST | Press release
Please replace the release with the following corrected version due to multiple revisions to dates. The updated release reads: CORRECTING and REPLACINGSES Launches Cash Tender Offer THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF THE MARKET ABUSE REGULATION (EU) 596/2014. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN, OR AT ANY ADDRESS IN, THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OF AMERICA OR THE DISTRICT OF COLUMBIA (THE UNITED STATES) OR TO ANY U.S. PERSON (AS DEFINED IN REGULATION S OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT)) OR IN OR INTO ANY JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS ANNOUNCEMEN
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom
