SFL – First-Half 2018 Results
Société Foncière Lyonnaise (Paris:FLY):
Rental income: €96.1 million (up 4.9% like-for-like)
EPRA earnings: €51.7 million (up 4.1%)
Attributable net profit: €200.2 million
Property portfolio value: €6,409 million (up 2.9%)
EPRA NNNAV: €82.3 per share (up 2.7% over 6 months / 12.0% over 1 year)
The interim consolidated financial statements for the six months ended 30 June 2018 were approved by the Board of Directors of Société Foncière Lyonnaise on 26 July 2018, at its meeting chaired by Juan José Brugera.
Business indicators were once again robust in the first half thanks to the high portfolio occupancy rate, while the period also saw further gains in the portfolio's appraisal value and the Company's net asset value.
The auditors have completed their review of the financial statements and issued their report on the interim financial information, which does not contain any qualifications or emphasis of matter.
|Consolidated data (€ millions)|
|H1 2018||H1 2017||Change|
|Adjusted operating profit*||78.7||82.5||-4.6%|
|Attributable net profit||200.2||378.7||-|
|* Operating profit before disposal gains and losses and fair value adjustments|
|Consolidated portfolio value excluding transfer costs||6,409||6,229||+2.9%|
|Consolidated portfolio value including transfer costs||6,811||6,619||+2.9%|
|EPRA NNNAV per share||€82.3||€80.1|
Results: robust business indicators
First-half consolidated rental income amounted to €96.1 million, down
by a modest €2.6 million or 2.6% from the €98.6 million reported for
the same period of 2017. Like-for-like growth went a long way towards
offsetting the impact of selling the IN/OUT property in September 2017.
- On a like-for-like basis (excluding all changes in the portfolio affecting period-on-period comparisons), rental income was €4.2 million (4.9%) higher, reflecting the impact of new leases signed in the second half of 2017 and the first half of 2018, mainly in the Washington Plaza, 103 Grenelle, Cézanne Saint-Honoré and 9 Percier properties, as well as an increase in rents for Galerie des Champs-Elysées retail units.
- The sale of the IN/OUT building on 29 September 2017 led to a €6.5 million decrease in rental income compared to first-half 2017.
- Lastly, income from assets under redevelopment and various penalties dipped by €0.3 million versus first-half 2017.
- Operating profit before disposal gains and losses and fair value adjustments to investment property amounted to €78.7 million in first-half 2018 versus €82.5 million in the year-earlier period.
- The portfolio’s appraisal value at 30 June 2018 was 2.9% higher on a like-for-like basis than at 31 December 2017. The increase led to the recognition of positive fair value adjustments to investment property of €159.2 million at 30 June 2018 versus positive adjustments of €382.6 million at 30 June 2017.
- Net finance costs amounted to €16.5 million in first-half 2018 compared with €21.2 million in the year-earlier period. The period-on-period decrease of €4.6 million reflected the Group's lower average cost of debt and reduced debt burden, which led to a €6.2 million reduction in recurring financial expense.
- After taking into account these core items, the Group reported attributable net profit for the period of €200.2 million, compared with €378.7 million in first-half 2017. EPRA earnings came to €51.7 million in first-half 2018 compared with €49.7 million in the year-earlier period, an increase of 4.1%.
First-half 2018 Business Review
In a still favourable rental market in the Paris region, shaped by increased volumes compared to 2017 and higher rents, particularly in the capital’s Central Business District, during the first half of 2018 SFL signed leases on around 8,500 sq.m., located mainly in the Washington Plaza, Cézanne Saint-Honoré and Louvre Saint-Honoré complexes.
The new leases were signed at an average nominal rent of €686 per sq.m, corresponding to an effective rent of €603 per sq.m.
The physical occupancy rate for revenue-generating properties remained high, standing at 96.5% at 30 June 2018 compared with 96.4% at 31 December 2017. The remaining vacant units are located mainly in the Cézanne Saint-Honoré complex in Paris and the Le Vaisseau building in Issy-les-Moulineaux. The EPRA vacancy rate improved to 2.7% from 3.1% at 31 December 2017.
Properties undergoing development at 30 June 2018 represented roughly 15% of the total portfolio. They consist mainly of three flagship projects being implemented over the next four years, concerning:
- the retail space in the Louvre Saint-Honoré complex,
- the Emile Zola office complex acquired in 2017, which will be extensively remodelled based on the building permit obtained in May 2018,
- the 96 Iéna building, for which the planning appeal process has now ended, allowing renovation work to begin next January.
Capitalized work carried out in first-half 2018 totalled €13.6 million and concerned the above three redevelopment projects, as well as work to improve common areas and the services offered by the Group’s properties in response to the new needs expressed by tenants and users on the back of emerging office use practices.
No properties were purchased or sold during first-half 2018.
In May 2018, SFL issued €500 million worth of seven-year bonds maturing on 29 May 2025 and paying an annual coupon of 1.50% (see press release dated 17 May 2018). The proceeds will be used for general corporate purposes. The issue, at a historically low interest rate, extends the average maturity of the Group’s debt, as part of its proactive balance sheet management strategy.
Net debt at 30 June 2018 amounted to €1,699 million, compared with €1,631 million at 31 December 2017, representing a loan-to-value ratio of 24.9%. At 30 June 2018, the average cost of debt after hedging was 1.8% and the average maturity was 4.8 years.
At the same date, SFL had €820 million in undrawn lines of credit.
Net Asset Value
The consolidated market value of the portfolio rose by 2.9% to €6,409 million excluding transfer costs at 30 June 2018, from €6,229 million at 31 December 2017. The increase reflected higher rental values, resilient prime property yields in Paris and the value added by the Group to properties undergoing redevelopment.
The average EPRA topped-up net initial yield (NIY) was 3.2% at 30 June 2018, unchanged from 31 December 2017.
EPRA NNNAV stood at €3,830 million or €82.3 per share at 30 June 2018 versus €80.1 per share at 31 December 2017, reflecting increases of 2.7% over the past six months and 12.0% over twelve months.
Board of Directors
The Board of Directors noted Anne-Marie de Chalambert’s decision to resign from her position as a director and extended its warmest thanks to her for her valuable contribution to the Board’s work since she was first elected in 2010.
During the same meeting, the Board appointed Arielle Malard de Rothschild as an independent director, subject to ratification at the Company's next General Meeting.
Alternative Performance Indicators (APIs)
API EPRA earnings:
|€ millions||H1 2018||H1 2017|
|Attributable net profit||200.2||378.7|
|Profit (loss) on asset disposals||-||-|
|Fair value adjustments to investment property||(159.2)||(382.6)|
|Fair value adjustments to financial instruments, discounting adjustments to debt and related costs||1.5||0.0|
|Tax on the above items||2.0||20.1|
|Non-controlling interests in the above items||7.2||33.5|
API EPRA NNNAV:
|Unrealised capital gains||20||17|
|Fair value adjustments to fixed rate debt||(57)||(62)|
API Net debt:
|Long-term borrowings and derivative instruments||1,798||1,661|
|Short-term borrowings and other interest-bearing debt||13||36|
|Debt in the consolidated statement of financial position||1,811||1,697|
|Current account advances (liabilities)||(56)||(56)|
|Accrued interest, deferred recognition of debt arranging fees, negative fair value adjustments to financial instruments||(2)||6|
|Cash and cash equivalents||(54)||(16)|
More information is available at www.fonciere-lyonnaise.com
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 €6.4 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
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Tilaa tiedotteet sähköpostiisi
Haluatko tietää asioista jo ennen kuin ne uutisoidaan? Kun tilaat tiedotteemme, saat ne sähköpostiisi yhtä aikaa suomalaisen median kanssa. Tilauksen voit halutessasi perua milloin tahansa.
Lue lisää julkaisijalta Business Wire
Manchester United Shoots for Success with a “Digital Experience Platform” Powered by HCL16.8.2018 22:02 | Tiedote
Manchester United (NYSE:MANU) has today announced a major milestone on its digital transformation journey with HCL Technologies, with the successful launch of the Manchester United Official app powered by HCL’s digital experience platform. The launch is part of the ongoing digital transformation of the club to provide a real-time, engaging, personalized, and unified experience to Manchester United’s 659 million global followers, which supports the club’s strategy to become a Digital Sports Enterprise. At the heart of this transformation is the digital platform developed by HCL, providing the club with a single view of fans across web and app touchpoints, offering fans a one-stop shop for everything Manchester United. Manchester United’s Group Managing Director Richard Arnold comments: “This app will allow our 659 million Manchester United followers to easily connect to the club they love, wherever they are in the world. Fans will now have the opportunity to follow all Manchester United
4K 4Charity Fun Run Announces Open Registration for IBC201816.8.2018 20:41 | Tiedote
AWS Elemental, an Amazon Web Services (AWS) company, today announced that the fifth annual 4K 4Charity Fun Run at IBC Show will take place at 7:00 a.m. local time on Saturday, Sept. 15 at Amstelpark in Amsterdam. Registration is open at https://4k4charity.com/ibc. Among the non-profits supported by the 4K 4Charity Fun Run at IBC Show is Amsterdam-based StichtingNewTechKids, which provides computer science education for girls, minorities, and economically challenged youth in the Netherlands. The organization supports a computer science teacher training program for primary school teachers with proceeds from 4K 4Charity. Also supported is Iridescent, a global education non-profit that empowers underrepresented young people to become innovators and leaders through engineering and technology. Through their two programs, Curiosity Machine AI Family Challenge and Technovation, Iridescent introduces underserved communities to new technologies and empowers and equips them to apply those technol
2018 D.I.C.E. Cannes Announced Round 3 Speakers16.8.2018 17:01 | Tiedote
The Academy of Interactive Arts & Sciences’ D.I.C.E. Cannes event will take place 9-11 September 2018 at the Hotel Barrière Le Majestic Cannes in France. Leading video game executives will participate in the premier networking opportunities, listen to key speakers address the conference theme - Trailblazers - to tackle some of the industry’s biggest ideas and trends. Newly announced speakers include: Craig Duncan, Studio Head at Rare – Duncan will share his studio’s experience and learnings with “A Rare Voyage of Adventure.” Duncan will provide insight into Rare’s bold new IP Sea of Thieves, a game that has inspired friendships and players creating stories together. David Hubert, Animation and Cinematic Director at Eidos Montreal – In Hubert’s talk he will discuss how cinematics are redefining AAA story-driven games and how they will continue to shape the medium to push the envelope throughout the production process. Adam Orth – In a session titled “Digging for Fire: Virtual Reality 20
GN Hearing and Google Announce Partnership to Bring Direct Mobile Streaming from Android Devices to Hearing Aids16.8.2018 16:00 | Tiedote
GN Hearing and Google have today announced a new technology partnership that will make GN Hearing the first manufacturer to enable a full spectrum of direct audio streaming from Android devices to hearing aids. The expectations are that direct streaming will become available to hearing aid users of the recently launched hearing aids ReSound LiNX Quattro™ and Beltone Amaze™ in a future Android release. “According to the World Health Organization, around 466 million people worldwide have disabling hearing loss. This number is expected to increase to 900 million people by the year 2050. Google is working with GN Hearing to create a new open specification for hearing aid streaming support on future versions of Android devices,” states Seang Chau, Vice President of Engineering at Google. Users will be able to connect and monitor their hearing aids, so they can get the full advantages of their Android devices without using an intermediate device for streaming to their hearing aids. This will
Zurich Expands Global Use of Guidewire InsurancePlatform with Selection of Guidewire Cyence Risk Analytics16.8.2018 15:55 | Tiedote
Guidewire Software, Inc. (NYSE: GWRE), the provider of the industry platform Property and Casualty (P&C) insurers rely upon, today announced that Zurich Insurance Group (Zurich) has selected Guidewire Cyence™ Risk Analytics (Cyence) to leverage the cyber risk knowledge and insights the solution provides to help the company prospect, underwrite, and price risks. Zurich will roll out Cyence globally with an emphasis on enhanced analytics and intelligence for risk selection. Unprecedented technological advances of the 21st century have shifted the nature of risk across the P&C insurance industry. Ever-evolving cyber risks present unique challenges including limited availability of traditional actuarial data needed to model these risks. Cyence combines economic modeling, cybersecurity, machine learning and Internet scale data collection to help risk takers assess the financial impact of cyber risk. “After conducting a thorough search, we found that the capabilities of Guidewire Cyence Risk
Scientist.com Named One of America’s Ten Fastest-Growing Private Companies by Inc. Magazine16.8.2018 15:06 | Tiedote
Scientist.com, the world’s leading marketplace for outsourced scientific services, today announced that it ranked no. 9 on Inc. magazine’s 2018 list of the 5,000 fastest-growing, privately owned companies in America. Scientist.com ranked no. 2 nationally in the Health category and no. 2 in the state of California. The San Diego-based company builds private marketplaces that connect life science research organizations with a global network of over 2,600 contract research organizations (CROs) and providers of scientific services. “Our mission is to empower and connect scientists worldwide and make it possible to cure all human diseases by 2050,” stated Kevin Lustig, Scientist.com’s CEO and Founder. “On Scientist.com, a single, highly trained scientist can run an entire drug discovery program from concept to clinic from his or her laptop without ever physically entering a laboratory.” The pharmaceutical industry spends about $150B a year on medical research and produces about 25 new medic
Uutishuoneessa voit lukea tiedotteitamme ja muuta julkaisemaamme materiaalia. Löydät sieltä niin yhteyshenkilöidemme tiedot kuin vapaasti julkaistavissa olevia kuvia ja videoita. Uutishuoneessa voit nähdä myös sosiaalisen median sisältöjä. Kaikki STT Infossa julkaistu materiaali on vapaasti median käytettävissä.Tutustu uutishuoneeseemme