25 July 2019
First half 2019 results
|Paris, July 25, 2019 – 8:00 a.m. |
First-half 2019 results - Regulated Information
Sharp 41% increase in EPRA earnings
- Strong 20% in rental income
- 6.4% value creation over first half
- Brisk rental activity with leases signed on 13,000 sq.m in 6 months
- Reaffirmed commitment to environmental change
|In millions of euros||First-half 2019||First-half 2018||Change|
|IFRS rental income||31.3||26.0||+20%|
|Portfolio value (excluding transfer duties)||1,435||1,174||+22%|
|LVT ratio||53.7%||53.1%||+0.6 pts|
|EPRA NAV per share excluding transfer duties (in €)||42.0||40.9||+2.7%|
|EPRA NNNAV per share excluding transfer duties (in €)||41.3||40.4||+2.4%|
|Dividend per share (in €)||2.3||2.2||+4.5%|
A winning property strategy
Cegereal enjoyed brisk rental activity in first-half 2019, with new leases, renewals or extensions signed on 13,000 sq.m of space (i.e., 7% of the portfolio). At end-June 2019, the average remaining lease term remained high at more than five years.
At June 30, 2019, Cegereal’s overall occupancy stood at 94.2%, including recently signed leases and the departure of Capgemini. At December 31, 2018, the occupancy rate stood at 96.1%.
The arrival of the European Banking Authority and KPMG’s teams at the Europlaza tower in the first six months of 2019, just weeks after ongoing renovation work was delivered, illustrates the effectiveness of Cegereal’s capital expenditure program.
Results in line with Cegereal’s growth plan
The acquisition of the Passy Kennedy building had a positive impact on first-half 2019 results.
The transaction helped to drive 20% growth in rental income, which came in at €31.3 million (€26.4 million euros like for like).
The portfolio value (excluding transfer duties) came to €1,435 million, growing by 22% and €1,212 million like for like (+3.2%), benefiting from the asset management policy implemented on the portfolio.
Cegereal’s EPRA earnings totaled €20.6 million in first-half 2019, a sharp 41% increase on the prioryear period. As reported, they came to €17.2 million, representing growth of 17% due to an improvement in net rental income and good cost control.
EPRA NNNAV stood at €657.0 million at June 30, 2019, up from €639.6 million at December 31, 2018. The increase mainly reflects growth in consolidated net income (positive €19.6 million impact), the change in fair value of investment property (positive €23.1 million impact), the dividend payout (negative €36.6 million impact), and the capital increase carried out in March 2019 (positive €11.2 million impact).
The positive results allowed Cegereal to deliver a Total Shareholder Return of 6.4% over the six months (dividends added back).
A tenant-focused strategy
Particularly attentive to changes in lifestyles and ways of working, Cegereal invests significantly in its properties in order to constantly improve its tenants’ user experience. As an example, the restaurant facilities at the Europlaza tower are soon to be transformed into welcoming, connected living spaces.
Cegereal also focuses specifically on managing energy consumption and biodiversity across its portfolio. In total, its properties feature more than 3.7 hectares of green space overall, including a 4,800 sq.m lake at Hanami, a 3,000-sq.m wooded garden at Europlaza and a living roof at Arcs de Seine.
Cegereal will continue to pursue this long-term strategy, which drives it to continually improve the quality and energy performance of its portfolio, and offer environmental advantages and a working environment that meet the expectations of new generations. In return, these tenants will ensure high occupancy rates and stable, quality income streams for Cegereal.
|- November 15, 2019||Third-quarter 2019 rental income|
|Media Relations||Investor Relations|
|Aliénor Miens/Alexandre Dechaux|
+33 7 62 72 71 15
|Charlotte de Laroche|
+33 1 42 25 76 38
Created in 2006, Cegereal is a commercial property company that invests in prime office properties in Greater Paris. The total value of the portfolio is estimated at €1,435 million at June 30, 2019 (excluding transfer duties). From an environmental point of view, Cegereal’s portfolio is fully certified with NF HQETM Exploitation and BREEAM In-Use International certification, and benefits from the “Green Star” rating in the international GRESB benchmark. Cegereal is a REIT listed on Euronext Paris since 2006, in compartment B (ISIN: FR0010309096). The Company had a market capitalization of €614 million at July 24, 2019.
1Creation of 305,190 new shares at a price of €36.71, representing € 11,203,524.90 (including €1,525,950 in nominal value and € 9,677,574.90 in additional paid-in capital).