SFL - First Quarter 2014
Regulatory News:
SFL (Paris:FLY):
Rental income: €36.4 million (+2.6% on a comparable portfolio basis
Consolidated revenue by business segment (€000’s)
31/03/14 31/03/13 Rental income 36,448 37,323 o/w Paris Central Business District 30,462 30,746 Western Crescent 1,149 1,313 Other 4,837 5,264 Other revenue 0 0,017 Total consolidated revenue 36,448 37,340
SFL´s consolidated rental income decreased slightly to €36.4 million on 31 March, 2014, versus €37.3 million on 31 March, 2013:
- On a comparable portfolio basis, rentals increased by €0.9 million (+2.6%) due, primarily, to new leases signed during 2013.
- Rents on projects under development during the period in question fell slightly by €0.6 million.
- Finally, the sale of the Mandarin Oriental in February 2013 generated a reduction in rental income of €1.2 million in the first quarter of 2014.
SFL successfully leased around 10,000 sq.m. of space during the first quarter of 2014, notably 6,000 sq.m. of offices that were pre-leased in 90 Champs-Elysées and 1,400 sq.m. leased in Washington Plaza. These transactions result in a nominal rent for Parisian offices of €675/sq.m. and a real rate of €586/sq.m.
The occupancy rate for revenue-generating buildings remained stable at 82.2% on 31 March, 2014, versus 82.0% on 31 December, 2013. The In/Out building, which was delivered in October 2013, represents 11.7% of vacancy and leases that have been signed but have not yet come into effect account for 3.2%.
Continued progress has been made on development projects throughout the quarter, notably on the #Cloud building, rue de Richelieu, that will be delivered in the second half of 2015, and on the building at 90 Champs-Elysées, that is now leased and will be delivered in the spring of 2015.
There were no property sales or acquisitions during the first quarter of 2014.
SFL´s consolidated net debt on 31 March, 2014, remained stable at €1,463 million compared to €1,457 million on 31 December, 2013. This represents a loan-to-value ratio of 33%, including the minority interest held in SIIC de Paris.
On 31 March, 2014, SFL had €695 million in undrawn lines of credit.
With an exceptional portfolio of properties valued at €4.1 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:
Euronext Paris Compartment A – Euronext Paris ISIN FR0000033409 – Bloomberg: FLY FP – Reuters: FLYP PA
S&P RATING: BBB- Stable outlook