Earnings Release • Nov 15, 2013
Earnings Release
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Paris, 14 November 2013, 8am
SIIC PAREF, a property company with the dual business of property investment and management on behalf of third parties, announces revenues of € 5.4 million for the third quarter of 2013, compared to € 5.5 million for the same period of 2012. Cumulative revenues for the first 9 months of the 2013 financial year totalled € 16.8 million, a decline of 8.1% compared to the first 9 months of 2012.
| Revenue (€ millions) | Q3 2013 | Year to 30/09/2013 |
Year to 30/09/2012 |
% change | Full year to 31 Dec. 2012 |
|---|---|---|---|---|---|
| Rent and costs recovered | 4.2 | 12.7 | 13.7 | -7.1% | 18.1 |
| residential | 0.5 | 1.4 | 2.0 | -28.8% | 2.5 |
| commercial | 3.7 | 11.3 | 11.7 | -3.4% | 15.7 |
| Management fees | 1.2 | 4.1 | 4.6 | -10.9% | 6.1 |
| IFRS consolidated revenues | 5.4 | 16.8 | 18.2 | -8.1% | 24.2 |
Rent and costs recovered for the first nine months of 2013 totalled € 12.7 million, compared to € 13.7 million for the year to 30 September 2012. This decline of € 1.0 million was due to the € 0.5 million negative impact of certain temporary usufructs (related to residential buildings) which matured in 2012, the € 0.3 million positive impact related to the acquisition of the Lyon and Combs-la-Ville buildings, the € 0.4 million negative impact of rental income from disposed assets (primarily related to the Berger and Rueil buildings), the € 0.7 million negative impact of vacant property and rent renegotiations and the € 0.3 million positive impact of rent indexing and step up leases.
On a constant group structure basis (excluding 2012 sales and the maturing of usufructs), rental income declined by 2.8%.
The occupancy rate was 87% at the end of September, a 1% decline compared to the end of June. After restatement for properties for which an undertaking to sell has been signed, occupancy was 92%.
Management fees totalled € 4.1 million for the year to 30 September 2013, compared to € 4.6 million for the same period of 2012. This fall was attributable to subscription fees (SCPI), which represented € 1.8 million as against € 2.4 million for the year to 30 September 2012. Early in 2012, SCPI fundraising had benefited from exceptional subscriptions originating from institutional investors.
Fees related to SCPI, OPCI and third-party assets under management (and miscellaneous fees) represented € 2.2 million, compared to € 2.1 million for the year to 30 September 2012.
Third party assets under management (SCPI and OPCI) continued to grow. The takeover of SCPI Capiforce Pierre as of 1 January 2013, which represented an increase of € 42 million, was increased by a further € 39 million in assets under management, which took their total amount to € 670 million at 30 September 2013. Total assets held or managed by the Paref Group following elimination of duplication (Paref investments in funds managed by Paref Gestion) thus totalled € 812 million.
Shareholders' agenda: Publication of 2013 full-year revenues: 30 January 2014
PAREF Group operates in two major complementary areas:
At 30 September 2013, PAREF Group owned € 180 million in property assets and managed assets worth € 670 million on behalf of third parties.
PAREF shares have been listed on Compartment C of the NYSE Euronext Paris Stock Exchange since December 2005 ISIN Code: FR0010263202 - Ticker: PAR
Alain PERROLLAZ Chairman of the Management Board Olivier DELISLE Member of the Management Board
Tel: +33 1 40 29 86 86
For further information, please visit www.paref.com
Lucie LARGUIER
Tel: +33 1 53 32 84 75 [email protected]
Third quarter 2013 14 November 2013
SIIC PAREF, a property company specialised in property investment and management on behalf of third parties, announces revenues of € 16.8 million for the first nine months of the year, compared to € 18.2 million for the year to 30 September 2012.
The following changes have affected the consolidated property portfolio since 30 June:
The value of the Group's property portfolio, based on the appraised values of buildings at 30 June 2013, totalled € 180 million at the end of September 2013, compared to € 172 million at the end of December. This figure includes SCPI and OPCI shares valued at € 12.0 million (based on share prices at 30 September).
The increase in the value of the portfolio is primarily due to the Group's share of work carried out on the "Gaïa" building, which represented € 8.3 million.
Total Group financial debt was € 78.1 million at 30 September 2013, compared to € 80.4 million at 30 June 2013. The € 2.3 million movement was due to debt amortisation.
Including escrow accounts of € 2.0 million and cash and cash equivalents of € 9.4 million, the consolidated net financial debt was € 65.5 million.
The LTV ratio (net financial debt to property portfolio value), including the share of the "Gaïa" building owned by Wep Watford, an equity-accounted company, was 42.1%, compared to 42.0% at the beginning of the year, with debt amortisation and the sale of the Rueil building during the 1st half of the year offsetting the negative impact of drawdowns on the loan facility held by Wep Watford.
1 Unaudited figures
Revenues for the third quarter of 2013 were stable at € 5.4 million, compared to € 5.5 million for the same period of 2012.
Cumulative revenues for the first 9 months of the 2013 financial year totalled € 16.8 million, a decline of 8.1% compared to the first 9 months of 2012.
| Revenues (€ millions) | Q3 2013 | Q3 2013 | Year to 30/09/2013 |
Year to 30/09/2012 |
% change |
|---|---|---|---|---|---|
| Rent and cost recovered | 4.2 | 4.3 | 12.7 | 13.7 | -7.1% |
| residential | 0.5 | 0.5 | 1.4 | 2.0 | -28.8% |
| commercial | 3.7 | 3.8 | 11.3 | 11.7 | -3.4% |
| Management fees | 1.2 | 1.2 | 4.1 | 4.6 | -10.9% |
| Consolidated IFRS revenue | 5.4 | 5.5 | 16.8 | 18.2 | -8.1% |
Rent and costs recovered for the year to 30 September 2013 totalled € 12.7 million, compared to € 13.7 million over the same period of the previous financial year, a decline of € 1.0 million. This change was due to:
On a constant group structure basis, excluding acquisitions, disposals and the maturing of usufructs, rental income declined by € 0.4 million.
The occupancy rate was 87% at the end of September, a 1% decline compared to the end of June. After restatement for properties for which an undertaking to sell has been signed, occupancy was 92%.
Recurring SCPI management fees (fees from assets under management) continued to increase to € 2.2 million (€ 2.1 million for the year to 30 September 2012) as a result of growth in managed assets (€ 670 million at 30 September 2013, compared to € 593 million at 31 December 2012 – see below), of which € 42 million was attributable to the takeover of Capiforce Pierre.
Over the first nine months of the 2013 financial year, variable-capital SCPI managed by PAREF GESTION (Pierre 48, Novapierre 1 and Interpierre France) raised € 23 million.
Subscription fees (excluding Interpierre France, a consolidated entity) thus represented € 1.8 million, compared to € 2.4 million for the same period of 2012.
OPCI management fees totalled € 0.4 million, compared to € 0.6 million for the year to 30 September 2012. This decline was due to fees from Naos, whose commission terminated in 2012.
The assets managed by the Group at 30 September 2013 may be analysed as follows
| Ca pital under management | 30 Sept. 2013 | 31 Dec. 2012 | Change | |||
|---|---|---|---|---|---|---|
| m2 | € thousands | m2 | € thousa nds | m2 | € thousa nds | |
| Paref Group (1) | 232,136 | 180,141 | 230,373 | 172,144 | 1% | 5% |
| Interpierre Fra nce | 52,380 | 26,406 | 47,779 | 23,743 | 10% | 11% |
| Novapierre 1 | 51,939 | 149,096 | 49,552 | 145,874 | 5% | 2% |
| Pierre 48 | 52,700 | 301,403 | 52,660 | 281,728 | 0% | 7% |
| Capiforce Pierre | 26,613 | 42,292 | ||||
| Tota l SCPIs (2) | 183,632 | 519,198 | 149,991 | 451,345 | 22% | 15% |
| Vivapierre (3) | 53,833 | 120,350 | 53,833 | 118,500 | 0% | 2% |
| Third parties | 11,069 | 30,713 | 11,069 | 22,904 | 0% | 34% |
| Total Management on behalf of third parties |
248,534 | 670,261 | 214,893 | 592,749 | 16% | 13% |
| Usufructs (4) | (14,391) | (14,391) | ||||
| Interpierre (5) | (52,380) | (26,406) | (47,779) | (23,743) | ||
| SCPIs and OPCIs held by the Group (5) |
(12,020) | (10,847) | ||||
| Grand Total | 181,763 | 811,976 | 152,723 | 730,303 | 19% | 11% |
(1) appraised value of assets at 30 June 2013 including 50% of Wep Watford and SCPI and OPCI shares held
(2) capitalisation at the balance sheet date based on share issue prices at that date
(3) appraised value of assets at the balance sheet date
(4) floor area counted both by Pierre 48 (bare owner) and Paref or third party under management (usufruct)
(5) value counted both by Paref Group (consolidated data) and the SCPI or OPCI
During the fourth quarter, Paref expects to complete the ongoing selective disposal programme (with the sale of the Fontenay, Gentilly and La Courneuve buildings). The proceeds from these disposals will be invested in projects under consideration and which are consistent with Paref's strategy.
Paref Gestion will continue to develop its diversified SCPI range, currently comprising Novapierre 1 (retail stores), Pierre 48 (residential property in Paris and the Paris region), Interpierre France (offices and business premises) and Capiforce Pierre (diversified SCPI).
A new product invested in German retail stores will be launched during the fourth quarter, in partnership with an experienced and solid player recognised for its capacity to operate under this investment strategy.
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