SFL: First Quarter 2007

SFL (Paris:FLY):

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*T
Consolidated revenue by business segment (EUR 000's)
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Q1 2007 Q1 2006
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Property rentals 41,166 39,430
o/w Golden Triangle 13,078 12,573
Financial District 15,716 14,783
Golden Crescent - La Defense 8,367 7,456
Other 4,005 4,619
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Other revenue 244 1,156
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Total revenue 41,409 40,586
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Consolidated property rentals for the first quarter of 2007
amounted to EUR 41.2 million, an increase of 4.4% compared with EUR
39.4 million in the year-earlier period. The like-for-like increase
was 5.2%.

This revenue growth attests to the excellent quality of the
Company's portfolio, as reflected in the very high 97.4% occupancy
rate at 31 March 2007, as well as to the current buoyant conditions in
the Paris office rental market.

Starting this year, the Company obtains quarterly independent
valuations of the portfolio. The valuation at 31 March 2007 puts the
portfolio's market value at EUR 3,684 million excluding transfer costs
(Group share), up 5% like-for-like and 11% on a reported basis from
EUR 3,320 million at 31 December 2006.

During the quarter, SFL completed the acquisition of Predica's 50%
stake in SCI Paul Cezanne. The transaction has raised the Company's
interest in the Cezanne Saint-Honore property to 100% and will
generate some EUR 8 million in incremental rental revenue per year.
The purchase price of EUR 198.7 million was settled in shares, leading
to a corresponding increase in equity (see the SFL press releases
dated 9 February and 30 March 2007).

As previously announced, the Company redeemed in advance the $125
million US Private Placement Notes issue - the effects of which were
recognised in the financial statements at 31 December 2006 - and
obtained the withdrawal of its Standard & Poor's rating. At the same
time, a new EUR 50 million 5-year bank line of credit was arranged.

At 31 March 2007, the Company's loan-to-value ratio stood at 22.2%
compared with 24.5% at 31 December 2006.

With an exceptional portfolio of properties valued at some EUR 3.7
billion net of transfer costs, essentially located in the Paris
Central Business District, SFL is a preferred vehicle for investors
wishing to invest in the Paris office and retail property market. As
the leading player in this market, the Group is firmly focused on
pro-actively managing high-quality property assets. SFL has elected to
be taxed as an SIIC since 2003.

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Eurolist Compartment A - Euronext Paris ISIN FR0000033409 -
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