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Tour Eiffel (Société de la) — Earnings Release 2011
Nov 9, 2011
1712_iss_2011-11-09_9f196db2-4706-42af-9aa8-6535941e9d72.pdf
Earnings Release
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Société de la Tour Eiffel 9th November 2011
Stable rental income on a like-for-like basis
The company's consolidated turnover for the first three quarters 2011 amounted to € 61.9M, compared to € 65.9M for the corresponding period 2010, of which rents represented respectively € 52.2M and € 54.9M.
This rental outcome results principally from a combination of property disposals during the said period (-€ 3.1M of rents) and the extinction of an interim rent pertaining to a property destined for redevelopment invoiced in early 2010 (-€ 0.7M), set against rents received on newly delivered properties (+€ 0.7M), net relettings (+€ 0.1M) and indexation on the passing rents (+€ 0.3M).
Setting aside disposals and short-term lease adjustment, rents show an increase of 2%. Recently delivered new developments, currently being marketed, represent potential additional annual rent of € 4.2M.
| (in M€) | 2011 | 2010 |
|---|---|---|
| First quarter | 20.2 | 22.7 |
| Second quarter | 20.8 | 21.4 |
| Third quarter | 20.9 | 21.8 |
| 30st September accumulated | 61.9 | 65.9 |
| Of which rents | 52.2 | 54.9 |
Consolidated turnover
Operational highlights for the third quarter:
- 20,000 m² of new lettings and lease renewals representing € 1.5M of annual rents;
- the sale of the Viseo office building in Grenoble for € 19.5M and the assignment of 2 parcels of land in the Massy Ampère development for € 2M. As at 30th September, disposals since the beginning of the year amounted to € 24.5M with a further d € 19M being under contract;
- development activity comprised 7.700 m² of new energy-efficient, labeled offices (€ 27M of investment financed in 2011) : 5.500 m² being speculative in Montrouge and 2.200 m² in the Parc Eiffel Moulin à Vent in Lyon secured on a long lease.
As a further illustration of business activity resilience, both the physical and financial occupancy rates of the core portfolio showed improvement as at the 31st of September relative to the preceding year (adjustment being made for the Paris Charonne property, which was vacant pending sale) at respectively 87.9% (85.9%) and 88.1% (86%). This trend looks set to continue in the light of significant lettings in hand and which are expected to boost the financial occupancy rate to in excess of 90% by year end.
Calendar: - 16th February: 2011 turnover
Société de la Tour Eiffel will be present at the SIMI, commercial real estate trade fair to be held in Paris, 30th November to 2nd December 2011.
About Société de la Tour Eiffel
A « SIIC » quoted on the Euronext Paris Exchange, the company pursues a strategy focused on the ownership and the development of quality office and business space capable of attracting a wide range of tenants in both established and emerging locations. The company's portfolio stands over 1 billion Euros of assets spread evenly between the Paris area and the regions. Société de la Tour Eiffel is listed on NYSE Euronext Paris (compartment B) – ISIN code : 0000036816 – Reuters: TEIF.PA – Bloomberg EIFF.FP
Press contact Jean-Philippe MOCCI Capmot Tel: + 33 (0)1 71 16 19 13 / + 33 (0)6 71 91 18 83 [email protected]
www.societetoureiffel.com Communication Jerôme DESCAMPS Deputy Managing Director (Finances) Tel: +33 (0)1 53 43 07 06 [email protected]
Société de la Tour Eiffel Turnover 3Q 2011