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Tour Eiffel (Société de la) — Earnings Release 2010
Feb 9, 2011
1712_iss_2011-02-09_f77cddd4-f04a-48e7-9cce-f7952d84f070.pdf
Earnings Release
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Rental stability on a like-for-like basis
The 2010 turnover of Société de la Tour Eiffel amounted to € 85.8 M, compared to € 95.5 M for the previous year, € 72.5 M and € 75.7 M respectively being attributable to rents.
This rental outcome stems from:
- reduction: property disposals during the period (€ -3.3 M in rent), negative indexation of prevailing rents (€ - 1.3 M) and adjustment in respect of late 2009 rentals (- 0,9 M€, principally on a property earmarked for sale);
- increase: leased developments delivered (€ +1.6 M) together with net relettings (€ +0.4 M).
Ignoring disposals, rents decreased by 0.4%, principally the consequence of negative indexation. New developments recently delivered, and currently being marketed, represent a potential additional annual rent of € 5 million.
The reduction in turnover is therefore principally attributed to other exceptional rental revenues, notably the recovery in 2009 from tenants of rechargeable items relating to the years 2007 and 2008.
| Turnover | |||
|---|---|---|---|
| (in M€) | 2010 | 2009 | Variation |
| First quarter | 22.7 | 24.4 | -7 % |
| Second quarter | 21.4 | 22.9 | -6.6 % |
| Third quarter | 21.8 | 20.9 | +4.3 % |
| Fourth quarter | 19.9 | 27.3 | -27.1 % |
| Cumulated as at 31 December | 85.8 | 95.5 | -10.1 % |
| Of which rents |
72.2 | 75.7 | -4.6% |
Portfolio management and development:
Highlights of the fourth quarter include:
an undertaking with SPIE Sud Est to construct 2,150 m² of offices in the Moulin à Vent Eiffel Park, Lyon, secured on a 9 year-closed lease;
- the delivery to La Poste of a 2,450 m² extension to the sorting centre in Vitrolles-Marseilles, subject to a new 9-year closed lease for the entire premises (15,500 m² for an annual rent of € 1.2 M);
- some 2,000 m² of new lettings and lease renewals in the business parks, representing € 0.25 M of annual rent;
- two owner-occupier sales together with the disposal of excess land reserves (20,000 m²) in the Eiffel park Les Tanneries in Strasbourg.
Disposals for the year amount to € 50.9 M (€ 4 M in annual rent). Further transactions in hand, subject to contract, amount to € 17.4 M.
The company's sustained activity in the face of market adversity is illustrated by stable occupancy rates on the core portfolio, 89.4 % (physical) and 90.6 % (financial) as at 31 Decembre 2010, compared to 89.3% and 91% as at 31 December 2009 (excluding the buildings delivered in 2010 - Vélizy and Chartres - and the building in Paris Charonne under contract for sale).
Calendar: - 3 rd March 2011: 2010 annual results - 18th May 2011: Annual General Meeting
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 – Blommberg EIFF.FP
Contact Jérôme DESCAMPS, Deputy Managing Director (Finances) Tel: +33 (0)1 53 43 07 06 [email protected]
Website : www.societetoureiffel.com
Press Contact Jean-Philippe MOCCI, Capmot Tel: + 33 (0)1 71 16 19 13 / + 33 (0)6 71 91 18 83 [email protected]