SFL "´ Third Quarter 2012
Regulatory News:
SFL (Paris:FLY) :
Property rentals: €112.9 million
Consolidated revenue by business segment (€ 000´s)
2012
(9 months) 2011
(9 months)
Property rentals 112,928 109,080o/w Paris Central Business District
95,621
92,778 Western Crescent
3,819
3,768 Other 13,487 12,534 Other revenue 328 309 Total consolidated revenue 113,256 109,389
Property rentals for the period ended 30 September 2012 amounted to €112.9 million, up €3.8 million or 3.5% from the €109.1 million reported in the same period of 2011. On a comparable portfolio basis, rentals grew by €5.8 million or 7.3%, reflecting leases signed during 2011 and the impact of applying rent indexation clauses. Revenues from buildings under renovation during the period were stable overall, edging back by just €0.1 million, as the impact of rentals from delivered properties largely offset lower revenues from new properties in the pipeline (notably the Edouard VII and Louvre buildings). Lastly, revenues from the Old England building sold in December 2011 were down €1.9 million in the first nine months of 2012.
In a still hesitant, highly selective rental market, SFL successfully marketed over 26,000 square meters at an average nominal rent of €726 per square meter for offices (corresponding to an effective rent of €685 per square meter). In the third quarter of 2012, 6,300 square meters were let, including all of the office space in the Ozone building to SJ Berwin and Zara France. At 30 September 2012, the occupancy rate (excluding properties undergoing renovation) stood at 93% compared with 94% at 31 December 2011.
Redevelopment projects were pursued during the period. In particular, work continued on the In/Out project in Boulogne, for which heavy demolition and construction began in January, and on the Ozone project at 92 avenue des Champs-Elysées, which is scheduled for year-end delivery. In addition, the building permit has been issued for the Cardinal by SFL project and the initial cleaning/asbestos removal phase has begun on the 38,000 square-meter property.
No properties were sold or acquired during the third quarter, leaving the composition of the portfolio unchanged at 30 September versus 30 June 2012.
Net debt at 30 September 2012 amounted to €1,349 million, compared with €1,243 million at 31 December 2011, representing a loan-to-value ratio of 36.4% including the minority interest held in SIIC de Paris. In addition, SFL had €240 million in undrawn lines of credit at the period-end.
With an exceptional portfolio of properties valued at €3.4 billion including 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.
STOCK MARKET:
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S&P RATING: BBB- /A-3 Stable outlook