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24 July 2015

Cegereal – First-half 2015 EPRA NAV UP +8.5%



 

 

 

 

 

Paris, July 24, 2015 – 8:00 a.m.

Regulated information

 

 

 

 

 

Cegereal – First-half 2015

 

 

 

EPRA NAV UP +8.5%

 

 

 

 

 

 

 

" We are at the beginning of a very promising cycle for creating value for our shareholders. Our NAV is growing steadily, lifted by the trend toward investment in the office property market and our recent realizations on assets. We anticipate an increase in market rents over the coming year and, in the meantime, a further compression in cap rates." said Raphaël Tréguier, Cegereal Chief Executive Officer.

·       Vibrant rental activity: 10,000 sq.m. leased

While the rental market for large properties was sluggish in the first six months of 2015, Cegereal made the most of its ability to provide flexible solutions for tenants and continued to turn in a strong letting performance for the Arcs de Seine and Europlaza buildings. In all, seven new leases were signed for a total of 10,000 sq.m. These new leases brought the occupancy rate for the Company's assets to 92%.

Work was completed on the lobby, landscaping and services at the Garden Tower in the spring of 2015. Renovation of Europlaza's new “garden floors” is under way, in preparation for marketing starting in September.

·         Operating income tripled

IFRS revenue stood at €30.1 million, declining by 5.3% from the prior-year period, due primarily to Cap Gemini's departure from 7,300 sq.m. at the Europlaza site in October 2014.

IFRS operating income tripled to €40.4 million versus €13.8 million as of June 30, 2014, thanks in particular to an increase in the value of the real estate portfolio, which rose to €902 million excluding transfer costs as of end-June 2015 (€961 million including transfer costs) from €844 million a year earlier (excluding transfer costs), and €871 million excluding transfer costs as of December 31, 2014.

The three properties' appraisal values June 30, 2015, excluding transfer costs, are as follows: 

  •   Europlaza:               €354 million
  •  Arcs de Seine:       €353 million
  •  Rives de Bercy:     €195 million

Cegereal has a healthy balance sheet, with a stable loan-to-value (LTV) ratio of 44.9%.

EPRA NNNAV excluding transfer costs stood at €35.8 per share, compared with €34.8 per share as of December 31, 2014. The increase over the period reflected dividend distributions (negative impact of €1.65 per share), consolidated earnings growth (positive impact of €0.1 per share), rent-free periods granted to new tenants (positive impact of €0.1 per share), changes in the properties' appraisal values (positive impact of €2.3 per share) and changes in the fair value of bank debt (positive impact of €0.1 per share).

In millions of euros

First-half 2015

First-half 2014

(pro forma IFRIC 21)

Change

IFRS revenue

30.1

31.7

-5.3%

IFRS rental income

Portfolio occupancy rate: 91.7%

21.9

22.6

-3.1%

IFRS operating income

40.4

13.8

+293.6%

IFRS net income

32.1

6.6

+387.6%

EPRA earnings

8.4

12.5

-32.7%

EPRA NNNAV per share excluding transfer costs (in €)

35.8

33.0

+8.5%

In accordance with IFRIC 21 "Levies", an interpretation providing guidance on IAS 37, rental expenses incurred by the lessor on behalf of lessees and expenses chargeable to the lessees under the terms of the lease (including property tax and tax on office premises) are recorded in the statement of comprehensive income under “Building-related costs". These expenses are recognized at January 1 and not spread over the fiscal year. The impact is reflected in the financial statements for 2015, including the interim financial statements. The pro forma accounts for the six months ended June 30, 2014 have been restated to reflect the impact of IFRIC 21 "Levies" had it been applied at that date. 

Investor Calendar

  • October 7 & 8, 2015            Large and Midcap Event (Paris)
  • October 22, 2015                 Third-quarter 2015 financial information

For more information, please contact:

Investor Relations

Media relations

Raphaël Tréguier  / +33 (0)1 42 25 76 36 /

Aliénor Miens / +33 (0)1 53 32 84 77 /

raphael.treguier@cegereal.com

alienor.miens@citigate.fr

 

About Cegereal

Created in 2006, Cegereal is a commercial property company that invests in prime office properties in Greater Paris. The portfolio's appraisal value is estimated by independent valuers DTZ Eurexi at €961 million as of June 30, 2015 (replacement value).

To date, Cegereal is the first French property company with a fully certified portfolio from an environmental point of view (HQE and BREEAM "Very Good") and benefits from the Green Star rating in the international benchmark GRESB.

Cegereal is a REIT listed on Euronext Paris since 2006, in compartment B (ISIN: FR0010309096). The Company had a market capitalization of €385 million on July 21, 2015.

www.cegereal.com.

 

 

 

 

 

 

 

Interim Financial Statements

 

(IFRS)

 

Six-month period ended June 30, 2015

 

 

 

 

 

 

 

Excerpts from the interim financial report

 

approved by the Board of Directors on July 23, 2015

 

 

 

 

 

The Statutory Auditors have performed a limited review

 

of the interim financial statements

 

 

 

Consolidated Statement of Comprehensive Income (IFRS) for the six months ended    June 30, 2015

in thousands of euros, except per share data

 

 

 

 

 

June 30, 2015

Dec. 31, 2014

June 30, 2014

June 30, 2014

 

 

 

 

Pro forma (1)

 

6 months

12 months

6 months

6 months

 

 

 

 

 

Rental income

21,926 

44,746 

22,624 

22,624 

Income from other services

8,169 

13,173 

6,558 

9,141 

Building-related costs

(11,427) 

(16,341) 

(7,927) 

(10,330) 

Net rental income

18,668 

41,579 

21,255 

21,435 

 

  

 

 

Sale of building

  

 

 

Administrative costs

(2,038) 

(3,057) 

(1,592) 

(1,592) 

Other operating expenses

(0) 

Other operating income

  

 

  

 

 

Increase in fair value of investment property

23,736 

42,637 

10,172 

10,172 

Decrease in fair value of investment property

 

(23,933) 

(16,085) 

(16,085) 

Total change in fair value of investment property

23,736 

18,704 

(5,913) 

(5,913) 

 

 

 

 

 

Net operating income

40,366

57,226

13,750

13,930

 

 

 

 

 

Financial income

 

17 

11 

11 

Financial expenses

(7,555) 

(14,533) 

(7,329) 

(7,329) 

Net financial expense

(7,555) 

(14,515) 

(7,318) 

(7,318) 

 

 

 

 

 

Corporate income tax

(662) 

(312) 

(19) 

(19) 

 

 

 

 

 

CONSOLIDATED NET INCOME

32,149

42,398

6,413

6,594

of which attributable to owners of the Company

 

42,398 

6,413 

6,594 

of which attributable to non-controlling interests

 

 

 

   

Other comprehensive income

 

 

 

 

 

 

 

TOTAL COMPREHENSIVE INCOME

32,149

42,398

6,413

6,594

of which attributable to owners of the Company

32,149 

 42,398

 6,413

 6,594

of which attributable to non-controlling interests

0

0

0

0

 

 

 

 

 

Basic and diluted earnings per share (in euros)

2.41

3.18

0.48

0.49

 (1): Pro forma figures at June 30, 2014 have been restated to reflect the retrospective application of IFRIC 21 "Levies"

 

Consolidated Balance Sheet (IFRS) at June 30, 2015

in thousands of euros

 

 

 

 

 

June 30, 2015

Dec. 31, 2014

June 30, 2014

June 30, 2014

 

 

 

 

Pro forma(1)

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

Property, plant and equipment

61 

 

 

 

Investment property

902,000 

871,000 

844,000 

844,000 

Non-current loans and receivables

30,346 

30,941 

33,391 

33,391 

Total non-current assets

932,407 

901,941 

877,391 

877,391 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Trade accounts receivable

12,945 

6,469 

8,354 

10,139 

Other operating receivables

5,562 

6,276 

2,329 

2,329 

Prepaid expenses

200 

107 

1,182 

287 

Total receivables

18,706 

12,852 

11,865 

12,755 

 

 

 

 

 

Cash and cash equivalents

24,072 

23,499 

26,983 

26,983 

Total cash and cash equivalents

24,072 

23,499 

26,983 

26,983 

 

 

 

 

 

Total current assets

42,778 

36,351 

38,848 

39,738 

   TOTAL ASSETS

                975,185  

               938,292  

               916,238  

               917,129  

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

 

 

Share capital

160,470 

160,470 

160,470 

160,470 

Legal reserve and additional paid-in capital

16,047 

16,047 

16,047 

16,047 

Consolidated reserves and retained earnings

5,389 

5,389 

5,389 

5,389 

Retained earnings

305,202 

284,831 

294,808 

294,808 

Net attributable income

32,149 

42,398 

6,413 

6,594 

Total shareholders’ equity

519,257 

509,135 

483,128 

483,308 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

Non-current borrowings

402,442 

401,889 

396,369 

396,369 

Other non-current borrowings and debt

4,061 

4,166 

4,161 

4,161 

Non-current corporate income tax liability

Total non-current liabilities

406,503 

406,055 

400,531 

400,531 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

Current borrowings

                      1,794  

                    1,716  

1,645 

1,645 

Trade accounts payable

                      3,106  

                    2,148  

1,728 

1,728 

Corporate income tax liability

                         660  

295 

Other operating liabilities

                    30,722  

                    5,045  

14,330 

16,131 

Prepaid revenue

                    13,143  

                 13,898  

14,871 

13,781 

Total current liabilities

49,424 

                 23,102  

32,579 

33,290 

 

 

 

 

 

Total liabilities

455,927 

               429,157  

433,110 

433,821 

TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES

                975,185  

               938,292  

               916,238  

               917,129  

 (1): Pro forma figures at June 30, 2014 have been restated to reflect the retrospective application of IFRIC 21 "Levies"

Consolidated Statement of Cash Flows for the six months ended June 30, 2015

in thousands of euros

 

 

 

 

June 30, 2015

Dec. 31, 2014

June 30, 2014

 

 

 

 

OPERATING ACTIVITIES

 

 

 

Consolidated net income

32,149 

42,398 

6,413 

 

   

Elimination of items related to the valuation of buildings:

   

Fair value adjustments to investment property

(23,736) 

(18,704) 

5,913 

Indemnity received from lessees for the replacement of components

  

 

   

Elimination of other income/expense items with no cash impact:

   

Adjustments for loans at amortized cost

554 

1,091 

572 

 

   

      Cash flows from operations before tax and changes in working capital requirements  

8,967

24,785

12,898

 

 

 

 

Change in amounts due to owners

22,065 

10,029 

Other changes in working capital requirements

(1,916) 

(629) 

(1,704) 

 

 

 

 

  Change in working capital requirements 

20,149

(629)

8,325

 

 

 

 

  Net cash flows from operating activities 

29,116

24,156

21,223

 

 

 

 

INVESTING ACTIVITIES

 

 

 

Acquisition of fixed assets

(7,325) 

(3,296) 

(913) 

Disposal of fixed assets

 

 

Net decrease in amounts due to fixed asset suppliers

837 

874 

 

 

 

 

  Net cash flows used in investing activities 

(6,488)

(2,422)

(906)

 

 

 

 

FINANCING ACTIVITIES

 

 

 

Increase in share capital

 

Change in bank debt

 

5,000 

Refinancing transaction costs

 

Net increase in current borrowings

78 

(60) 

(131) 

Net increase in other non-current borrowings and debt

(105) 

697 

693 

Net decrease in other non-current borrowings and debt

 

Purchases and sales of treasury shares

38 

134 

116 

Dividends paid

(22,065) 

(20,025) 

(10,029) 

 

 

 

 

 

 

 

 

  Net cash flows used in financing activities 

(22,054)

(14,254)

(9,352)

 

 

 

 

  Change in cash and cash equivalents 

573

7,480

10,965

 

 

 

 

    Cash and cash equivalents at beginning of the period*

23,499 

16,018 

16,018 

 

 

 

 

  CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 

24,072

23,499

26,983

 * There were no cash liabilities for any of the periods presented above.