Business Wire

SFL: Historically Strong Results for 2017 That Validate the Value Creation Strategy

Jaa

Regulatory News:

The financial statements for the year ended 31 December 2017 were approved by the Board of Directors of Société Foncière Lyonnaise (Paris:FLY) on 9 February 2018 at a meeting chaired by Juan-José Brugera.
Business indicators were very robust, thanks to the high portfolio occupancy rate and growth in rental income, while the year also saw further strong gains in the portfolio’s appraisal value and the Company’s net asset value.
The auditors have completed their audit of the annual financial information and are in the process of issuing their report.

“Our 2017 performance validates our value creation strategy of investing in prime office property in the most attractive districts of Paris and creating a high value for users via an exceptional standard of amenities,” commented Nicolas Reynaud, Chief Executive Officer of SFL.

Consolidated data (€ millions)            
    2017   2016   Change
Rental income   195.8   198.1   -1.2%
Adjusted operating profit* 164.1 169.7 -3.3%
Attributable net profit 685.3 504.1 +35.9%
EPRA earnings   102.4   100.9   +1.5%
* Operating profit before disposal gains and losses and fair value adjustments
             
    31/12/2017   31/12/2016   Change
Attributable equity 3,763 3,123 +20.5%
Consolidated portfolio value excluding transfer costs 6,229 5,736 +8.6%
Consolidated portfolio value including transfer costs   6,619   6,092   +8.7%
EPRA NNNAV 3,729 3,082 +21.0%
EPRA NNNAV per share   €80.1   €66.2  

Results: robust operating profit and growth in net profit driven by an increase in the portfolio value

Rental income amounted to €195.8 million in 2017, down by a modest €2.4 million or 1.2% from the €198.1 million reported in 2016.

  • On a like-for-like basis (excluding all changes in the portfolio affecting year-on-year comparisons), rental income was €6.2 million higher, a 3.6% increase that was attributable to new leases signed in 2016 and 2017, mainly for the Cézanne Saint-Honoré, 9 Percier and 103 Grenelle properties.
  • Changes in assets under redevelopment between the two periods had a €2.6 million negative impact on rental income, with several floors of offices in the Cézanne Saint-Honoré complex and other properties taken off the market for extensive renovation after their tenants moved out.
  • The sale of the IN/OUT building on 29 September 2017 led to €3.3 million decrease in rental income compared with 2016.
  • Lastly, lease termination penalties received from tenants added a net €0.5 million to rental income in 2017 compared with €3.2 million in 2016.

Operating profit before disposal gains and losses and fair value adjustments to investment properties amounted to €164.1 million in 2017 versus €169.7 million in 2016.

The portfolio’s appraisal value grew by 12.6% over the year on a like-for-like basis. The increase led to the recognition of positive fair value adjustments to investment properties of €635.1 million in 2017 (versus €438.0 million in 2016). Profit for the year was also boosted by the €80.3 million gain realised on the sale of the IN/OUT building.

Net finance costs continued to fall sharply, amounting to €40.7 million in 2017 compared with €48.1 million in 2016. Recurring finance costs were down by €4.7 million in 2017, reflecting SFL’s lower average refinancing costs and the reduction in its total debt.

After taking into account these key items, the Group reported attributable net profit for the year of €685.3 million versus €504.1 million in 2016. Excluding the impact of disposals, changes in fair value of investment properties and financial instruments and the related tax effect, EPRA earnings amounted to €102.4 million in 2017 versus €100.9 million the year before (an increase of 1.5%).

Business review: increase in rental income, low vacancy rate, and a pipeline of emblematic projects

Rental operations:
In a growing rental market, shaped by the lowest vacancy rate in the Paris region since 2007, stronger corporate demand and a shortage of available high quality properties, especially in Paris itself, SFL signed a large number of leases in 2017 representing a total surface area of some 21,000 sq.m. Highlights of the year included:

  • Leasing of the entire 2,900 sq.m. of vacant space in the 103 Grenelle property to two tenants, Edouard Denis Développement and Calvin Klein.
  • Leasing of 3,500 sq.m. of offices in the Cézanne Saint-Honoré complex to LEK Consulting and KBL Richelieu.
  • Leasing of 2,800 sq.m. in the Washington Plaza complex to various tenants.
  • Leasing of a 3,400 sq.m. unit in the 92 Champs-Elysées building to WeWork.
  • Leasing of retail space in Galerie des Champs-Elysées for the new concept store opened by l’Occitane and Pierre Hermé in December 2017.

Nominal office rents for leases signed in 2017 averaged €733 per sq.m. with effective rents averaging €629 per sq.m, illustrating SFL’s ability to leverage the quality and scarcity of its products to keep rents high while maintaining a disciplined approach to rental incentives.

The physical occupancy rate for revenue-generating properties at 31 December 2017 was 96.4%, compared with 97.0% at the previous year-end. At 3.1%, the EPRA vacancy rate was stable over the year, further illustrating the outstanding attractiveness of the SFL portfolio and the Group’s ability to maintain full occupancy of its properties.

Portfolio operations:
In January 2017, SFL entered into a €165 million deal to acquire SMA’s historical headquarters building, a 21,000 sq.m. property located at 112-122 avenue Emile Zola in the 15th arrondissement of Paris. SFL acquired title to the property in November 2017 when SMA moved out. The building stands on a 6,300 sq.m. plot featuring a tree-filled garden. It dates back to 1966 and will be completely remodelled.

On 29 September 2017, the IN/OUT building located at 46 Quai Alphonse le Gallo in Boulogne-Billancourt was sold to Primonial REIM. The 35,000 sq.m. building was completely remodelled in a project launched in 2011. Since 2015, it has been leased in full to OECD under a lease expiring in 2027. The building was sold for €445 million excluding transfer costs, generating a capital gain of €80.3 million that was recognised in 2017.

Development operations:
Capital expenditure for 2017 amounted to €32.8 million and mainly concerned the renovation of vacated floors in existing buildings and building redevelopment projects. The development pipeline at 31 December 2017 concerned around 13% of the Group’s portfolio and consisted mainly of three flagship projects that will be deployed over the next four years, as follows:

  • The core of the Louvre Saint-Honoré complex, representing some 15,000 sq.m. of retail space.
  • The office complex on avenue Emile Zola acquired in 2017, which will be completely remodelled to become a major business centre in the heart of the 15th arrondissement of Paris.
  • The 9,000 sq.m. building at 96 avenue d’Iéna, which will be extensively renovated to offer services meeting the very highest standards.

Financing: historically low debt and average borrowing costs

Net debt at 31 December 2017 amounted to €1,631 million (compared with €1,931 million at 31 December 2016), representing a loan-to-value ratio of 24.6%. At 31 December 2017, the average cost of debt after hedging was 1.7% and the average maturity was 4.5 years.

In 2017, the remaining €301 million worth of November 2012 bonds was redeemed and two new 6- and 7-year revolving bank lines of credit totalling €250 million were obtained for general corporate purposes.

At 31 December 2017, SFL had €760 million in undrawn back-up lines of credit that are available to finance investment opportunities and cover the Group’s liquidity risk.

In October 2017, Standard & Poor’s upgraded SFL’s rating to BBB+ with a stable outlook.

Net Asset Value: portfolio value tops €6 billion

The consolidated market value of the portfolio at 31 December 2017 was €6,229 million excluding transfer costs versus €5,736 million at 31 December 2016, representing an increase of 8.6% as reported and 12.6% on a like-for-like basis. This further increase in appraisal values primarily reflects the upward pressure of narrower investment market yields for prime properties and the Group’s improved lease terms.

The average EPRA topped-up net investment yield (NIY) stood at 3.2% at 31 December 2017, compared with 3.6% at 31 December 2016.

EPRA NNNAV stood at €3,729 million or €80.1 per share at 31 December 2017, an increase of 21.0% compared to €66.2 per share at 31 December 2016.

Dividend

At the Annual General Meeting to be held on 20 April 2018, the Board of Directors will recommend paying a dividend of €2.30 per share.

Alternative Performance Indicators (APIs)

API EPRA earnings

€ millions   2017   2016
Attributable net profit   685.3   504.1
Less:
Profit (loss) on asset disposals (80.3) -
Non-recurring disposal costs 3.0 -
Fair value adjustments to investment properties (635.1) (438.0)
Fair value adjustments to financial instruments, discounting adjustments to debt and related costs (0.6) 2.1
Tax on the above items 33.3 (11.6)
Non-controlling interests in the above items   96.8   44.3
EPRA earnings   102.4   100.9

API EPRA NNNAV

€ millions   31/12/2017   31/12/2016
Attributable equity   3,763   3,123
Treasury shares 11 14
Unrealised capital gains 17 16
Fair value adjustments to fixed rate debt   (62)   (71)
EPRA NNNAV   3,729   3,082

API Net debt

€ millions   31/12/2017   31/12/2016
Long-term borrowings and derivative instruments   1,661   1,620
Short-term borrowings and other interest-bearing debt   36   389
Debt in the consolidated statement of financial position   1,697   2,009
Less:
Current account advances (liabilities) (56) (63)
Accrued interest and deferred recognition of debt arranging fees 6 6
Cash and cash equivalents   (16)   (20)
Net debt   1,631   1,931

More Information is available at www.fonciere-lyonnaise.com

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 €6.2 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

www.fonciere-lyonnaise.com

Contact information

SFL
Thomas Fareng, Phone +33 (0)1 42 97 27 00
t.fareng@fonciere-lyonnaise.com
or
Evidence
Grégoire Silly, Phone +33 (0)1 45 63 49 73
gregoire.silly@evidenceparis.fr

Tietoja julkaisijasta

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

Corsearch Announces Strategic Partnerships with Key-Systems GmbH and INCOPRO24.5.2018 01:11Tiedote

Corsearch, a premier provider of clearance and protection solutions for trademark and brand professionals, is pleased to announce strategic partnerships with Key-Systems, a global player in the internet and domain industry, and INCOPRO, a leading online IP and brand protection company. The agreements solidify Corsearch’s full service domain management and brand protection offerings for law firms . “We are thrilled to be moving forward in a new partnership with Key Systems to complement our existing partnership with COM LAUDE, and to be expanding the partnership we have with INCOPRO,” said Corsearch President and CEO Tobi Hartmann. “These relationships will allow Corsearch to expand its domain name management and brand protection solutions for law firms and their end clients.” Corsearch & Key-Systems Partnership Working with the corporate domain management solution “BrandShelter", Corsearch will provide law firms an easy way to manage the domain portfolios of their clients. This collabo

CORRECTING and REPLACING Zebra Medical Vision Announces CE Approval of its Seventh AI Imaging Algorithm - Mammography Lesion Detection24.5.2018 00:30Tiedote

Fourth paragraph, first sentence of release should read: Zebra-Med’s Mammography algorithm aims to change that dynamic, by providing a state of the art clinical decision support product at a previously unprecedented price point (instead of Zebra-Med’s Mammography algorithm aims to change that dynamic, by providing a state of the art malignancy detection product at a previously unprecedented price point). This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180523005843/en/ Credit: Zebra Medical Vision The corrected release reads: ZEBRA MEDICAL VISION ANNOUNCES CE APPROVAL OF ITS SEVENTH AI IMAGING ALGORITHM - MAMMOGRAPHY LESION DETECTION The new algorithm expands Zebra-Med’s footprint into Oncology, with the most affordable Mammo lesion detection package in the market. Zebra Medical Vision (http://zebra-med.com/) announces today the CE regulatory approval of its newest algorithm to be included in its growing Deep Learning Imaging

Seoul Semiconductor AC LED Modules Pass 4kV Surge Testing23.5.2018 21:40Tiedote

Seoul Semiconductor, a global innovator of LED products and technology, has demonstrated a 277V AC lighting module using its NanoDriver Series LED driver that complies with the industry standard 4kV surge testing. Prior to this, AC LED modules have been mainly used only in residential lighting applications due to the technology’s limited capability to meet the surge requirements for industrial and commercial applications. This demonstration module proves that it is possible to achieve a 277VAC module with high surge capability using Seoul Semiconductor’s NanoDriver Series LED driver. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180523006267/en/ Seoul Semiconductor AC LED modules with Acrich technology demonstrate compliance at 4kV surge test. (Photo: Business Wire) Prior to Seoul Semiconductor’s recent product introduction, many LED fixture designers perceived AC LED technology as a low performance, low cost solution, assu

GCEL Releases G20 Nations Case Study Involving 90 Ministries, NGOs & IGOs Defining the Guidelines for the Digital Economy Era23.5.2018 21:34Tiedote

GCEL, INSME, BVMW and CONFAPI executed a strategic agreement at the European Union Parliament to deploy the Digital Economy Platform (DEP) through GCEL’s HumaWealth Program that digitizes the USD 140 trillion B2B marketplace. These agreements will implement the newly released G20 Nations Case Study recommendations providing the roadmap to reduce annual domestic and international trade costs by USD 3.7 trillion, increase trade by USD 7.7 trillion, create a USD 1 trillion SME fund and generate 300 million manufacturing, agricultural and service industry jobs by 2030. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180523006259/en/ GCEL, INSME, BVMW and CONFAPI executed a strategic agreement at the European Union Parliament to deploy the Digital Economy Platform in collaboration with the world's leading technology firms to digitize the USD 140 trillion B2B marketplace (Photo: Business Wire) The agreement was signed by Captain Sa

LTI Q4 USD Revenue Growth up 5.3% QoQ and 21.6% YoY; FY18 Revenues of USD1.13bn, up 16.7%; Digital Revenues Grow 42% in FY1823.5.2018 18:04Tiedote

Larsen & Toubro Infotech (BSE: 540005, NSE: LTI), a global technology consulting and digital solutions company, announced its Q4 FY18 and full year FY18 results today. Q4 FY 18 In US Dollars: Revenue at USD 309.0 million; growth of 5.3% QoQ and 21.6% YoY Constant Currency Revenue growth of 4.5% QoQ and 18.7% YoY In Indian Rupees: Revenue at Rs 20,012 million; growth at 6.2% QoQ and 19.3% YoY Net Income at Rs 2,894 million; Net Income growth at 2.3% QoQ and 13.7% YoY Full year FY18 In US Dollars: Revenue at USD 1,132.3 million; growth of 16.7% YoY Constant Currency Revenue growth of 14.7% YoY In Indian Rupees: Revenue at Rs 73,065 million; growth at 12.4% YoY Net Income at Rs 11,124 million; Net Income growth at 14.6% YoY “Our outstanding growth of 5.3% QoQ in Q4 is a result of a broad-based performance across all verticals. We have delivered an industry leading growth of 16.7% for the full financial year with digital revenues up 42% YoY. Our sustained investments in exponential technol

Zebra Medical Vision Announces CE Approval of its Seventh AI Imaging Algorithm - Mammography Lesion Detection23.5.2018 18:00Tiedote

Zebra Medical Vision (http://zebra-med.com/) announces today the CE regulatory approval of its newest algorithm to be included in its growing Deep Learning Imaging Analytics platform. The algorithm, capable of detecting suspected malignant lesions in Mammography scans - is the latest addition to other automated tools announced in the past as part of it’s “All-In-One” AI1 business model, among them algorithms that automatically detect brain bleeds, vertebral fractures, coronary artery disease, osteoporosis and more. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180523005843/en/ Credit: Zebra Medical Vision According to the American Cancer Society, breast cancer makes up 25% of all new cancer diagnoses in women globally - with nearly 1.7 million women being diagnosed annually. Survival rates, though improving - vary worldwide. In countries with advanced care, the rate is 80 to 90 percent for those with a first-stage diagnosis

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