Business Wire

SFL: strong financial position and results in 2018, consolidating the Group’s position as a prime player


Regulatory News:

The financial statements for the year ended 31 December 2018 were approved by the Board of Directors of Société Foncière Lyonnaise (Paris:FLY) on 15 February 2019 at a meeting chaired by Juan José Brugera.

2018 business indicators were very robust, with further underlying growth in rental income and historically high EPRA earnings. The portfolio's appraisal value and the Company's net asset value also continued to grow, attesting to SFL’s excellent positioning.

The auditors have completed their audit of the annual financial information and are in the process of issuing their report.

Consolidated data (€ millions)

    2018   2017   Change
Rental income   193.5   195.8   -1.2%
Adjusted operating profit* 162.1 164.1 -1.2%
Attributable net profit 351.6 685.3 -
EPRA earnings   106.7   102.4   +4.1%
* Operating profit before disposal gains and losses and fair value adjustments            
    31/12/2018   31/12/2017   Change
Attributable equity 4,010 3,763 +6.6%
Consolidated portfolio value excluding transfer costs 6,570 6,229 +5.5%
Consolidated portfolio value including transfer costs   7,005   6,619   +5.8%
EPRA NNNAV 4,017 3,729 +7.7%
EPRA NNNAV per share   €86.3   €80.1  

Results: Rental income up 5% on a like-for-like basis and EPRA earnings up 4.1%

Rental income

Consolidated rental income in 2018 amounted to €193.5 million, compared with €195.8 million in 2017. The modest €2.3 million decline (-1.2%) was due to a change in portfolio. Like-for-like growth offset most of the impact of selling the IN/OUT property in September 2017.

  • On a like-for-like basis (excluding all changes in the portfolio affecting year-on-year comparisons), rental income was €8.7 million higher, representing a 5.0% increase attributable to new leases signed in 2017 and 2018, mainly for units in the Washington Plaza, Cézanne Saint-Honoré, 103 Grenelle and Galerie des Champs Elysées properties.
  • Rental income from spaces being redeveloped declined by €1.4 million over the year, mainly reflecting the departure of tenants from the 96 Iéna building which is undergoing renovation.
  • The sale of the IN/OUT building on 29 September 2017 led to a €9.7 million decrease in rental income compared with 2017.
  • Lastly, lease termination penalties received from tenants added a net €0.7 million to rental income in 2018, compared with €0.5 million in 2017.

Operating profit before disposal gains and losses and fair value adjustments to investment property amounted to €162.1 million in 2018 versus €164.1 million in 2017.

Portfolio value

The portfolio's appraisal value grew by 5.5% over the year on a like-for-like basis. The increase led to the recognition of positive fair value adjustments to investment property of €289.0 million in 2018 (versus €635.1 million in 2017).

Net profit

Net finance costs amounted to €52.0 million in 2018 versus €40.7 million the previous year. The increase was due to non-recurring costs, mainly the €17.2 million balancing payment made in respect of the €300 million worth of bonds bought back in September 2018. Recurring finance costs, which came out at €30.6 million, were down by a significant €10.7 million, reflecting a further improvement in average refinancing costs and a reduction in average debt.

After taking into account these key items, the Group reported attributable net profit for the year of €351.6 million, versus €685.3 million in 2017.

Excluding the impact of disposals, changes in fair value of investment property and financial instruments and the related tax effect, EPRA earnings amounted to €106.7 million in 2018 versus €102.4 million the year before (an increase of 4.1%).

A robust business performance: full occupancy of the Group’s properties, strong marketing dynamic, pipeline of 56,000 sq.m. in Paris.

Rental operations:

The rental market remained buoyant in 2018, although volumes declined slightly due to the shortage of available properties, especially prime properties in Paris itself. In this environment, SFL signed leases on approximately 21,000 sq.m. in 2018 on excellent terms. The main leases concerned units in the following properties:

- Washington Plaza, with leases on a total of 8,700 sq.m. signed with six tenants, some of whom already had offices in the building and wanted to expand or move to new floors.

- Cézanne Saint-Honoré, with leases signed on 5,800 sq.m., including 3,800 sq.m. of renovated space taken up by Wells Fargo and Luxottica France.

- Louvre Saint-Honoré, with leases signed on around 3,600 sq.m.

Nominal office rents for lease agreements signed in 2018 averaged €704/sq.m. with effective rents of €610/sq.m.

The physical occupancy rate for revenue-generating properties at 31 December 2018 was 97.3%, compared with 96.4% at the previous year end, and the EPRA vacancy rate stood at a record low of 1.6%.

Development operations:

The development pipeline at 31 December 2018 represented roughly 16% of the total portfolio. The three main projects concern:

- The core of the Louvre Saint-Honoré building, where approximately 16,000 sq.m. of outstanding retail space are being developed over three floors.

- The office complex on avenue Emile Zola acquired in 2017, representing some 24,000 sq.m. The building permit was obtained in May 2018 and the property is currently being prepared for redevelopment.

- The 96 Iéna building, representing approximately 9,000 sq.m. The planning appeal process has now ended and renovation work is due to begin shortly.

Capitalized work carried out in 2018 totalled €43.0 million and concerned the above three redevelopment projects, floor-by-floor renovations, 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.

Portfolio operations:

No properties were purchased or sold during 2018.

Financing: conservative LTV of 24% and historically low average borrowing costs

Net debt at 31 December 2018 stood at €1,688 million (compared with €1,631 million at 31 December 2017), representing a loan-to-value ratio of 24.1%. At 31 December 2018, the average cost of debt after hedging was 1.5% and the average maturity was 4.6 years. At the same date, the interest coverage ratio stood at 5.1x.

Several significant financial transactions were completed in 2018, as part of SFL’s strategy of actively managing its debt. Together, these transactions led to a sharp reduction in future average borrowing costs while also extending the average maturity of the Company’s debt.

During the year, SFL issued €500 million worth of 7-year 1.50% bonds due 29 May 2025 (see press release dated 17 May 2018) and obtained two new 5-year revolving lines of credit for a total of €250 million.

In addition, a €300 million negotiable European commercial paper (NEU-CP) program was set up, with issuance under the program amounting to €263 million at 31 December 2018.

In parallel, an offer was launched to buy back two bond issues due in November 2021 and November 2022 respectively. The offer closed on 26 September 2018. Bonds representing a total nominal amount of €300 million were tendered to the offer, spread equally between the two issues (see press release dated 27 September 2018).

At 31 December 2018, SFL had €920 million in undrawn back-up lines of credit that are available to finance investment opportunities and cover the Group’s liquidity risk.

EPRA NNNAV up 7.7%

The consolidated market value of the portfolio at 31 December 2018 was €6,570 million excluding transfer costs, an increase of 5.5% from €6,229 million at 31 December 2017. The further growth in appraisal values mainly reflected the value added to properties in the process of being redeveloped as the work progressed and the higher rents obtained across the portfolio.

The average EPRA topped-up net initial yield (NIY) stood at 3.2% at 31 December 2018, stable year on year.

EPRA NNNAV stood at €4,017 million or €86.3 per share at 31 December 2018, an increase of 7.7% compared to €80.1 per share at 31 December 2017.


At the Annual General Meeting to be held on 5 April 2019, the Board of Directors will recommend paying a dividend of €2.65 per share (an increase of 15.2%).

EPRA indicators

€ millions   2018   2017
EPRA Earnings 106.7   102.4
/share   €2.29   €2.20
EPRA NAV 4,142 3,889
/share   €89.0   €83.6
EPRA NNNAV 4,017 3,729
/share   €86.3   €80.1
(%)   2018   2017
EPRA Net Initial Yield (NIY) 2.8%   2.8%
EPRA topped-up NIY   3.2%   3.2%
EPRA Vacancy Rate   1.6%   3.1%
EPRA Cost Ratio (including vacancy costs) 14.2% 13.6%
EPRA Cost Ratio (excluding vacancy costs)   13.0%   12.2%

Alternative Performance Indicators (APIs)

API EPRA earnings

€ millions   2018   2017
Attributable net profit 351.6   685.3
Profit (loss) on asset disposals 0.0 (80.3)
Non-recurring disposal costs 0.0 3.0
Fair value adjustments to investment property (289.0) (635.1)
Fair value adjustments to financial instruments, discounting adjustments to debt and related costs 21.4 (0.6)
Tax on the above items 5.3 33.3
Non-controlling interests in the above items   17.3   96.8
EPRA earnings   106.7   102.4


€ millions   31/12/2018   31/12/2017
Attributable equity 4,010   3,763
Treasury shares 10 11
Unrealised capital gains 19 17
Fair value adjustments to fixed rate debt   (22)   (62)
EPRA NNNAV   4,017   3,729

API net debt

€ millions   31/12/2018   31/12/2017
Long-term borrowings and derivative instruments 1,494   1,661
Short-term borrowings and other interest-bearing debt   269   36
Debt in the consolidated statement of financial position   1,763   1,697
Current account advances (liabilities) (52) (56)
Derivative instruments (liabilities) (1) 0
Accrued interest and deferred recognition of debt arranging fees 3 6
Cash and cash equivalents   (25)   (16)
Net debt   1,688   1,631

More information is available at

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 €6.6 billion and is focused on the Central Business District of 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

Contact information

SFL - Thomas Fareng - Phone +33 (0)1 42 97 27 00 -
Evidence - Grégoire Silly - Phone +33 (0)1 45 63 49 73 -

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 ensimmäisten joukossa? Kun tilaat mediatiedotteemme, saat ne sähköpostiisi välittömästi julkaisuhetkellä. Tilauksen voit halutessasi perua milloin tahansa.

Lue lisää julkaisijalta Business Wire

Groupe ADP Wins Many Overseas and International Contracts22.5.2019 14:11:00 EESTTiedote

ADP Ingénierie, company member of Groupe ADP (Paris:ADP), recently won a series of new international and French overseas contracts to provide design missions, research and technical assistance missions to major international airports. China, on the airport area encompassing Hong-Kong and Shenzhen: Mission to realize a prospecting study on traffic and airport capacity within the zone in order to help with the development of the international airport of Shenzhen. This region of southeastern China concentrates a high density of aircrafts in flight due to the proximity of several airports with significant traffic. Taiwan, for Taipei Taoyuan International Airport: Simulation study mission for the development of the air traffic. Taipei Airport welcomed 46.5 million passengers in 2018. Vietnam, for Hanoi's Noi Bai International Airport: 9-month study mission on the expansion of the airport and implementation of the master plan for 2030 and 2050. Greece, for Athens Eleftherios Venizelios Inter

OpenGate Capital Completes Acquisition of SMAC from Colas Group22.5.2019 10:00:00 EESTTiedote

OpenGate Capital, a global private equity firm, announced today that it has acquired SMAC, a global manufacturer of waterproofing and building envelope solutions, from Colas Group (EPA : RE). Financial terms were not disclosed. SMAC operates across two divisions: Travaux and Industrie. SMAC Travaux specializes in waterproofing solutions typically utilized on flat roofs structures and facades. SMAC Industrie manufactures bituminous membranes, skylights and resins. As one of the largest players in the segment, SMAC has a dedicated service and maintenance business, SMAC Assistance Service, and Essemes Services, focused on fire safety maintenance. SMAC is headquartered in Issy-les-Moulineaux and has operations across France, Morocco, and South America and is supported by 3,400 employees. Founder and CEO of OpenGate Capital, Andrew Nikou, stated: “The building and construction sector continues to present many opportunities across Europe and North America that are well suited for OpenGate. W


SHIONOGI B.V., the European subsidiary of SHIONOGI & Co., Ltd. (Head Office: Osaka, Japan; President & CEO: Isao Teshirogi, Ph.D.; hereafter "Shionogi") and L. MOLTENI & C. DEI F.LLI ALITTI SOCIETÀ DI ESERCIZIO S.P.A. (Headquarters: Florence, Italy; Managing Director : Giuseppe Seghi Recli, hereafter “Molteni”) announced today that Shionogi and Molteni concluded a contract for the distribution and sale of RIZMOIC® (naldemedine) for the treatment of opioid-induced constipation (OIC) in adult patients previously treated with a laxative in the two key European markets, Italy and Poland. This press release features multimedia. View the full release here: Shionogi has built a strong heritage in research-based medicine. The company’s research and development efforts target pain/central nervous system as one of its priority areas in the mid-term business plan. The company constantly strives to improve the quality of life of patients wh

Azbil Launches an Enhanced Thermal Micro Flow Rate Liquid Flow Meter Capable of Measuring Flows of 0.5 to 50 mL/min, Adds Functionality to Existing Lineup22.5.2019 07:56:00 EESTTiedote

Azbil Corporation (TOKYO:6845) announced that it has enhanced its Thermal Micro Flow Rate Liquid Flow Meter Model F7M (hereafter, "F7M flow meter") lineup by introducing a model with an increased measurement range of up to 50 mL/min, while adding new functionality to existing models. Sales commenced in May. This press release features multimedia. View the full release here: Thermal Micro Flow Rate Liquid Flow Meter Model F7M (Photo: Business Wire) Based on the company's years of experience bringing reliable gas flow meters to market, Azbil originally launched two models of the F7M flow meter in 2017, with one model capable of measuring micro flow rates as low as 0.1 mL/min—a level that was considered until that point to be difficult to measure. The company launched the new F7M flow meter and added functionality to the existing lineup in response to the ever diverse needs of customers and the limited availability of flow meters t

NIPPON Platform Has Established the Ninth Overseas Branch "NIPPON Platform OÜ" in Estonia22.5.2019 05:00:00 EESTTiedote

NIPPON Platform Co., Ltd. (CEO: Jun Takagi, Tokyo, Japan) established the subsidiary "NIPPON Platform OÜ" in Estonia on 8 May 2019. This is the ninth overseas branch for NIPPON Platform. This press release features multimedia. View the full release here: Overseas Subsidiaries (Graphic: Business Wire) “Making Japan into a cashless society” and “Revitalizing local societies and rural development with small and medium-sized retailers” are the motto for NIPPON Platform, and we provide various cashless payment solutions. • As a deployment base for the EU market Estonia is the most northerly of the three Baltic states, and has a population of 1.3 million people. Estonia has experienced rapid growth. Key sectors include manufacturing and IT. The parking charge may be paid via the mobile phone. 95% of residents in Estonia use the system to submit their annual income tax returns, and it will be completed in 5 minutes. Estonia is one of t

Jefferies Establishes Global Microstrategy Research22.5.2019 03:00:00 EESTTiedote

Jefferies announced today the appointment of Desh Peramunetilleke as Head of Global Microstrategy Product in Equity Research. He is based in the firm’s Hong Kong office. Desh heads up the newly-formed Microstrategy team, which includes Mahesh Kedia, Shrikant Kale, Barnis Yuen, Jeffrey Tong and Jenny Wu. Microstrategy is a bottom-up product that uses company fundamentals to create insights into markets and sectors, and combines it with top-down macro trends to develop systematic investment strategies, diagnostic screens and proprietary risk scores for clients all over the world and across investment styles. “We are very excited to have Desh join Jefferies’ leading equities platform,” commented Peter Forlenza, Jefferies’ Global Head of Equities. “We are substantially expanding our Asian equities platform given our outlook on the Asian regional markets and the opportunity. Jefferies is perhaps singular in the industry currently to have the intent and ability to enlist such impressive team

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