28 February 2020
2019 Annual Results
|Paris, February 28, 2020 – 8:00 am |
2019 Annual Results – Regulated Information
CEGEREAL CONTINUES ITS GROWTH WITH A 30.6%
INCREASE IN EPRA EARNINGS
- Rental income up 19.5%
- Portfolio value up 3.9%
- European leader in CSR
- €2.3 per share dividend distribution
- Key Indicators
|In millions of euros||2019||2018||Variation|
|IFRS rental income||63.4||53.0||+ 19,5%|
|EPRA earnings||40.0||30.7||+ 30,6%|
|Portfolio value (excluding transfer duties)||1 464||1 409||+ 3,9%|
|Taux d'occupation||96.9%||96.1%||+ 0,8pts|
|Taux d'endettement||52.6%||54.7%||- 2,1pts|
|ANR Triple Net (EPRA) par action hors droits (en euros)||43.7||41.0||+ 6.6%|
Jérôme Anselme, Cegereal’s Chief Executive Officer commented: “This year once again, Cegereal’s teams have enabled the Company to deliver a record performance both operationally and financially, with EPRA earnings coming out at €40 million. Illustrated in particular by the arrival of the European Banking Authority’s teams and the significant extension of KPMG France’s lease in Europlaza tower, our solid rental activity demonstrates our capacity to attract and build strong relationships with clients. Our strength lies in our capacity to offer a user experience uniting connectivity, convenience, flexibility and respect for the environment. 2020 will see us roll out the same strategy and continue to focus on our objective of increasing the value of our portfolio and our Company".
- Record 96.9% occupancy rate
The highlights of 2019 included the extension of KPMG France’s lease in Europlaza tower, in which the firm now occupies 12,600 sq.m, reaffirming the property’s continued appeal, as well as the arrival of Salto, the French VoD platform developed by television channels TF1, M6 and France Télévisions, at Arcs de Seine.
In total, leases have been renewed, extended or signed on 45% of the portfolio’s surface area in the last three years. This successful rental activity has pushed the portfolio occupancy rate to 96.9%, demonstrating the effectiveness of Cegereal’s strategy, both in terms of asset management and the close relationship the Company has with its tenants. Four out of five assets are now fully leased.
Benefiting from the many signings in 2019, Cegereal’s rental income climbed 19.5% to €63.4 million in 2019, with the December 2018 acquisition of the Passy Kennedy building contributing €9.9 million. On a like-for-like basis, rental income grew 2.2% year-on-year.
The estimated value of Cegereal’s property portfolio (excluding transfer duties) amounted to €1,464 million, up 3.9% compared with 2018. This increase was driven by the signing of leases under market-beating conditions, as well as by the desirable location of the portfolio’s different properties.
- Improvement in all financial indicators
The Company’s operational and financial performance was positively impacted by its excellent rental activity as well as the full-year impact of income generated by the Passy Kennedy building. Cegereal’s EPRA earnings totaled €40.0 million in 2019, a sharp 30.6% increase on 2018.
Net attributable income came in at €80.8 million in 2019, compared with €33.4 million in 2018, mainly due to the increase in the portfolio value.
Consolidated net debt stood at €769 million at December 31, 2019, representing an LTV ratio of 52.6%, while the average maturity of the Group’s borrowings stood at 3.5 years with an average interest rate of 1.3%.
EPRA NNNAV stood at €695.1 million or €43.7 per share at end-December, up 8.7% from €639.6 million or €41 per share at December 31, 2018. This increase reflects the growth in IFRS consolidated net income to €80.8 million, mainly thanks to the €55.4 million increase in the portfolio value, offset by the dividend distribution of €36.6 million.
- N°1 in Europe in CSR
Each year since its creation, Cegereal has proven its strong engagement in respect of environmental, social and governance (ESG) issues. Its commitment and the transparency of its non-financial reporting have been commended by ratings agencies such as the European Public Real Estate Association (EPRA) and the Carbon Disclosure Project (CDP), as well as the Global Real Estate Sustainability Benchmark (GRESB), which has placed the Company in the top 3 since it first participated in the benchmark. With a score of 95/100, Cegereal reached a new milestone in 2019, climbing to number one in Europe and number three worldwide, all sectors combined.
The in-depth work carried out during the year to analyze and control the environmental indicators of each of the Company’s buildings paid off, resulting in a reduction in the portfolio’s energy consumption and greenhouse gas emissions by 30% and 42%, respectively, since 2013. In addition, its entire portfolio has achieved NF HQETM Exploitation and BREEAM In-Use International certification.
Cegereal also stands out in how it manages biodiversity across its portfolio: the Company promotes the development of the flora and fauna housed in the portfolio’s 37,300 sq.m of green space.
- 2020 dividend distribution: €2.3 per share
Cegereal’s recurring cash flow rose to €42.9 million, up from €35.2 million in 2018. At the next General Shareholders’ Meeting, Cegereal will recommend paying another significant dividend distribution of €2.3 per share.
* * *
Cegereal’s Board of Directors met on February 27, 2020 to approve the audited consolidated financial statements for the year ended December 31, 2019.
The annual results presentation can be viewed on the Company’s website:
For more information, contact:
|Media Relations||Investors Relations|
|Aliénor Miens / Alexandre Dechaux +33 6 64 32 81 75||Charlotte de Laroche / +33 1 42 25 76 38|
Created in 2006, Cegereal is a listed property company that invests in prime office properties in Greater Paris. The total value of the portfolio is estimated at €1,464 million at December 31, 2019 (excluding transfer duties).
Thanks to its strong commitment to environmental, social and governance issues, Cegereal achieved first place among listed companies in Europe in the 2019 Global Real Estate Sustainability Benchmark (GRESB) ranking. Its entire portfolio has achieved NF HQETM Exploitation and BREEAM In-Use International certification.
Cegereal is a REIT listed on Euronext Paris since 2006, in compartment B (ISIN: FR0010309096). The Company had a market capitalization of €658.5 million at February 27, 2020.