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Covivio — Earnings Release 2013
May 14, 2013
1222_10-q_2013-05-14_1009f411-1f0b-4ce8-84eb-559aeb0823d0.pdf
Earnings Release
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Strong letting activity 14 May 2013
Solid operational performance
- · Occupancy rate maintained at over 95%
- · Rental income up by 1% on a like-for-like basis
Strong rental business
- · 90,000 sq. m of office leases renewed in France
- · 44,500 sq. m of new office leases in France o/w:
- · 100% delivery and rental of the Le Patio and Pegase buildings
- · 70% of Green Corner at Saint Denis pre-leased
- · And launch of a new 12,800 sq.m turnkey program in 1st ring of Paris
- · Rental of Euromed Center project hotel 4* to Louvre Hotels Group
Continued adaptation of the portfolio
- · €77m in new buildings delivered
- · €220m of new projects launched
- · €1.1bn pipeline of projects including €400m committed
€330m of new financing
Solid operational performance
1% rise in rental income on a like for like basis – Occupancy rate above 95%
At the end of March 2013, following the successful completion of the 2012 disposals programme, group share revenue totalled €132 million1 , while rental income came to €120.4 million (-1.8%) up 0.9% like-for-like.
On a like-for-like basis, rental income benefited from good performance in Offices (+1.5%) with an occupancy rate of 95.9%, boosted by the long-term partnership strategy that we have implemented.
Despite the deterioration in the economic environment, the Service sector, with an occupancy rate of 100%, has seen stable rental income on a like-for-like basis over the period, while rental income in Logistics decreased by 1.9% following a slight decline in the occupancy rate to 86.5% at the end of March.
| €m | 3M 2012 |
3M 2012 proforma 1 |
3M Var. vs 2013 proforma |
Var. LFL | Occup. rate |
|
|---|---|---|---|---|---|---|
| Offices - France | 68.1 | 63.9 | 62.5 | $-2.2%$ | $+1.7%$ | 95.4% |
| Offices - Italy | 29.0 | 29.0 | 29.6 | $+2.1%$ | $+1.0%$ | 96.9% |
| Offices | 97.0 | 92.9 | 92.0 | $-1.0%$ | $+1.5%$ | 95.9% |
| Service Sector | 11.3 | 11.3 | 12.5 | 10.6% | $+0.2%$ | 100% |
| Logistics | 18.5 | 18.5 | 15.9 | $-14.1%$ | $-1.9%$ | 86.5% |
| Total group share | 126.8 | 122.6 | 120.4 | $-1.8%$ | $+0.9%$ | 95% |
| Residential | 16.3 | 16.3 | 15.1 | $-7.3%$ | $+2.2%$ | 96% |
| Total (economic exposure) | 143.1 | 138.9 | 135.5 | $-2.4%$ | $+1.0%$ | 95.1% |
| ------- | ------- |
Strong letting activity
Since the start of the year, the Offices activity in France has been very strong with 90,000 sq. m renewed (€15 million in annualised rental income) and 44,500 sq. m newly rented, the following being the main signings:
- · 100% rental of the Le Patio (12,755 sq. m in Lyon) and Pegase (4,580 sq. m in Clichy) buildings, respectively delivered in February and April 2013
- · The pre-lease of 70% of the Green Corner (20,400 sq. m at Saint Denis) building to a public body (firm 10-year lease)
- · For the construction of a 12,800 sq. m turnkey in 1st ring of Paris (firm 10-year lease)
The company also signed a lease with Louvre Hotel Group for the Euromed Center 210-bedroom hotel (10,000 sq. m) project (firm 12-year lease), securing a 66% prelet of the Euromed Center (a 50-50 joint venture with Crédit Agricole Assurances).
1 See appendix for breakdown of revenues
Continued adaptation of the portfolio
The first quarter also saw the delivery of new assets totalling €77 million (Le Patio in Lyon, Pegase in Clichy and Bâtiment C of the Tour Garibaldi in Milan) while €220 million of new projects were launched, including:
Nanterre Respiro – Vinci Delivery: 2015 11,100 sq. m of office space at Nanterre 100% pre-leased to Vinci Budget: €47m
Green Corner – Saint Denis
20,400 sq. m office space in Saint Denis
Delivery: H2 2015
70% pre-leased Budget: €83m
The developments currently represent €1.1 billion in investment volume, of which €400 million are committed and 86% pre-leased.
These projects for the most part concern property redevelopments and turnkey rental properties (offices, hotels, etc.) and target a yield in excess of 7%. They will contribute to the progressive replenishment of the portfolio.
Continued diversification of financing
Since the start of the year, Foncière des Régions has signed nearly €330 million of new financing attributable to the Group, via:
- · A private placement of €180 million, with maturity of 7 years and a coupon of 3.30%
- · €292 million of financing raised by Beni Stabili (50.9% stake) including a convertible bond of €225 million with a 5-year maturity and a coupon of 3.375%
These issues have enabled us to pursue our strategy of lengthening the maturity of the debt and diversifying our sources of financing, which now break down as follows:
Debt breakdown - End of March 2013 - Group share
A dedicated conference call for analysts and investors will take place today at 6 pm (Paris time)
The presentation relating to the conference call is available on the Foncière des Régions website: www.foncieredesregions.fr/finance
Financial calendar:
24 July 2013: 2013 half-year results (before market opening)
Press and investors' contact:
Sébastien Bonneton Tel: + 33 (0)1 58 97 52 44 [email protected]
Shareholder Relations Department
Foncière des Régions, Partner in Real Estate
As a partner working with companies on their real estate strategy, Foncière des Régions designs lasting and innovative real estate solutions with a two-fold objective: increase the value of existing urban assets and design the real estate of tomorrow.
Foncière des Régions owns and manages a €9 billion portfolio (€16 billion of economic exposure), leased primarily to key accounts that are leaders in their sector (Suez Environnement, Thales, Dassault Systèmes, France Télécom, EDFdf, IBM, Eiffage, etc.). This partnership culture is based on key values and know-how: vision and expertise.
The Foncière des Régions share is listed on compartment A of Euronext Paris (FR0000064578 - FDR), eligible for deferred settlement and is included in the MSCI, SBF120, Euronext IEIF "SIIC France", and CAC Mid100 indices, in European real estate benchmarks "EPRA" and "GPR 250", as well as the FTSE4 Good ethical index and ASPI Eurozone®.
Foncière des Régions is rated BBB- / Stable by Standards and Poor's.
www.foncieredesregions.fr
Apendix
| Consolidated | Group share | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| €m | 3M 2012 |
3M 2012 proforma 1 |
3M 2013 |
Var. vs proforma |
3M 2012 |
3M 2012 proforma 1 |
3M 2013 |
Var. vs proforma |
Var. LFL |
| Offices - France | 70.4 | 66.3 | 65.0 | $-1.9%$ | 68.1 | 63.9 | 62.5 | $-2.2%$ | $+1.7%$ |
| Offices - Italy | 56.9 | 59.9 | 58.1 | $+2.0%$ | 29.0 | 29.0 | 29.6 | $+2.1%$ | $+1.0%$ |
| Offices | 127.3 | 123.2 | 123.2 | $-0.1%$ | 97.0 | 92.9 | 92.0 | $-1.0%$ | $+1.5%$ |
| Service Sector | 43.5 | 43.5 | 48.3 | $+11%$ | 11.3 | 11.3 | 12.5 | $+10.6%$ | $+0.2%$ |
| Logistics | 20.7 | 20.7 | 15.9 | $-23.3%$ | 18.5 | 18.5 | 15.9 | $-14.1%$ | $-1.9%$ |
| Total | 191.6 | 187.4 | 187.3 | $-0.1%$ | 126.8 | 122.6 | 120.4 | $-1.8%$ | $+0.9%$ |
| Others | 16.3 | 16.3 | 15.8 | $-2.9%$ | 11.1 | 11.1 | 11.6 | $+4.3%$ | |
| Turnover | 207.9 | 203.7 | 203.1 | $-0.3%$ | 137.9 | 133.8 | 132.0 | $-1.3%$ | |
1 Restatment of the DS campus rents contribution: Asset consolidated under the equity method since October 2012