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Paris Realty Fund

Earnings Release Jan 26, 2010

1584_iss_2010-01-26_d700a0ef-6299-42dc-a8c3-70ec3def01c8.pdf

Earnings Release

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PUBLICATION 2009 FULL-YEAR REVENUE

2009 REVENUE GROWTH: UP 7.2% GROWTH IN ASSETS MANAGED ON BEHALF OF THIRD PARTIES: UP 6%

SIIC PAREF reports revenue of € 25.8 million for 2009, a 7.2% increase compared to 2008 and 10% growth excluding the property dealing business, which is not strategic for the Group.

4th quarter revenue grew by 6.2% compared to the 4th quarter 2008 to € 6.6 million.

Consolidated revenue under IFRS
(€ thousands) 2009 2008 % change
9-month revenue 19,202 17,859 7.5%
4th quarter revenue 6,567 6,186 6.2%
Total consolidated revenue ,
25,769
,
24,045
,
7.2%
Rent and costs recovered 22,741 20,452 11.2%
Residential 3,034 3,053 (0.6%)
Commercial 19,707 17,399 13.3%
Management fees 3,028 2,948 2.7%
Total recurring activities 25,769 23,400 10.1%
Property dealing 0 645 ns

Rental income growth

2008 rental income and costs recovered increased by 11.2% to € 22.8 million, due to rent indexing and the take up of new tenants. The Group did not carry out any acquisitions or disposals in 2009. Rental income rose by 9.3% on a constant group structure basis. The difference resulted from the full-year effect of the 2008 acquisitions.

The occupancy rate of the property portfolio amounted to 94% over the quarter, compared with 93% at end 2008. As previously announced, the La Houssaye and Créteil tenants gave their notice with effect from 1 January 2010, the consequence of which was a decrease in the occupancy rate to 89% at 1 January. We are currently actively marketing these two sites.

Development of assets under management through the Vivapierre, Naos and Polypierre OPCIs

2008 was marked by the launch of two new OPCIs, Naos, which made its first investment in August for € 26 million excluding stamp duty, and Polypierre, which is currently raising funds for a first investment tranche of about € 130 million.

At 31 December 2009, assets managed on behalf of third parties by Paref Gestion (excluding PAREF's own assets) totalled € 431 million (compared to € 407 million a year earlier), a 6% increase. This growth was due to the Naos (€ 27 million) and Vivapierre (€ 18 million) OPCIs. The latter implemented a major work programme in 2009, in accordance with the acquisition contracts signed in 2008 with VVF Belambra.

Conversely, the capitalisation of the Group's 3 SCPIs retreated by 7% in 2009, due to redemption requests resulting from the financial crisis, which were fulfilled before the end of the year.

The capitalisation of the 3 SCPIs was distributed as follows at 31 December 2009: SCPI Pierre 48 (€ 217 million), Novapierre (€ 51 million) and Interpierre (€ 6 million).

Fees generated by Paref Gestion grew by 2.7% in 2009 to € 3 million. The decline in SCPI subscriptions was offset by the commissions received on OPCIs Vivapierre and Naos and by the balance of an overperformance fee of € 0.23 million received in the 1st half-year in respect of transactions carried out on behalf of Westbrook Partners.

About PAREF

PAREF Group operates in two major complementary areas:

  • Commercial and residential investments: PAREF owns various commercial buildings in and out of the Paris region. The Group also owns the temporary usufruct of residential property in Paris.
  • Management on behalf of third parties: PAREF GESTION, an AMF-certified subsidiary of PAREF manages 3 SCPIs and 3 OPCIs.

At 31 December 2009, PAREF Group owned more than € 200 million in property assets and managed assets worth over € 400 million on behalf of third parties.

Shareholders' agenda 25 March 2010: presentation of 2009 annual results

Hubert LEVY-LAMBERT Chairman of the Management Board Alain PERROLLAZ

Chief Executive Officer Tel: +33 (0)1 40 29 86 86

Agnès VILLERET Analyst/Investor relations Lucie LARGUIER Financial Press Relations

Tel: +33 (0)1 53 32 78 89 / 95 [email protected] / [email protected]

PAREF shares have been listed on Eurolist Compartment C of the Euronext Paris Stock Exchange since December 2005 ISIN code: FR00110263202 - Ticker: PAR

For further information, please visit the PAREF Group website: www.paref.com

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