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Tour Eiffel (Société de la) — Earnings Release 2011
May 11, 2011
1712_iss_2011-05-11_d47a2fdb-e411-4f72-b619-bc5a56e0b630.pdf
Earnings Release
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Société de la Tour Eiffel 11 th May 2011
Encouraging first quarter
The company's consolidated turnover for the first quarter 2011 amounted to € 20.2M, compared to € 22.7M in 2010, of which rents represented respectively € 17.3M and € 19.5M.
This rental outcome results from a combination of 2010 property disposals (-€1.3M of rents), net relettings (-€ 0.5M) and a short-term rent pertaining to a property destined for redevelopment invoiced in early 2010 (-€ 0.7M), countered by rents on newly delivered properties (+€ 0.3M).
Setting aside disposals and short-term lease adjustment, rents show a slight decrease of 0.9%. Recently delivered new developments, currently being marketed, represent potential additional annual rent of € 5M.
| (in M€) | 2011 | 2010 | Variation |
|---|---|---|---|
| First quarter | 20.2 | 22.7 | -11.0 % |
| Of which rents | 17.3 | 19.5 | -11.3% |
Consolidated turnover
Operational highlights for the first quarter:
- the forward purchase of an 5,000 m² office building with parkings (LEB labeled) in Montrouge (Paris area) for an investment of € 23-25M depending upon leasing and a projected 7.5% yield;
- 10,000 m² of new lettings and renewals which are expected to positively impact revenues going forward;
- the sale to a developer of 20,000 m² of residential land in the Parc Eiffel des Tanneries, Strasbourg for € 3M;
- delayed sales agreement for the Lee Cooper building in Amiens, subject to an interim tenancy arrangement with the acquirers of the jeans company in liquidation.
The company's improving level of business activity is demonstrated by the slightly increased physical and financial occupancy rates of the core portfolio (exclusive of developments delivered in 2010 – Vélizy et Chartres – and the Paris Charonne property which is under contract for sale with vacant possession), being respectively 89.7% and 90.9% at 31 March 2011, as opposed to 89,4% et 90,6% at 31 December 2010. The leasing to General Mills of 2,500 m² in Vélizy-Topaz early, at the outset of the second quarter, is further evidence of market recovery. Several other significant lettings in the portfolio are at an advanced stage of negotiation.
Calendar 2011: - 18th May at 11H: Combined General Meeting at the Automobile Club de France (6 Place de la Concorde – Paris 8ème)
- 21st June: pay-out of the final 2010 dividend (submitted to the approval of the Annual General Meeting), with option for payment in cash or by scrip issue
- 28th July: half-year results
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 www.societetoureiffel.com Communication Jean-Philippe MOCCI Jérôme DESCAMPS Capmot Deputy Managing Director (Finances) Tel. : + 33 (0)1 71 16 19 13 / + 33 (0)6 71 91 18 83 Tel : +33 (0)1 53 43 07 06 [email protected] [email protected]
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Société de la Tour Eiffel Turnover 1Q 2011