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Friday, 17 February 2017

Cegereal - 2016 Annual Results: EPRA earnings up 54.8%

Cegereal SA    

Published: 08:00 CET 17-02-2017 /GlobeNewswire /Source: Cegereal SA / : CGR /ISIN: FR0010309096


Paris, February 17, 2017 - 8:00 a.m.

Regulated information

Cegereal

2016 Annual Results

 

EPRA earnings up 54.8%

 

" A number of important milestones were put in place this year, with the restructuring of the balance sheet, the major new acquisition and the renewal of the shareholder base, " said Cegereal's Chief Executive Officer Raphaël Tréguier. " In 2017, we are looking at growth opportunities in the office real estate sector." 

 

  • Key indicators

           

In millions of euros

2016

2015

Change

IFRS rental income

47.2

44.3

+6.5%

IFRS net income

41.3

81.0

-49.0%

EPRA earnings

28.2

18.2

+54.8%

Net cash flows from operations

34.8

22.5

+54.9%

Portfolio value (excluding transfer costs)

1,124

942

+19.3%

Portfolio value (excluding transfer costs) like-for-like

972

942

+3.2%

EPRA NNNAV per share excluding transfer costs (in €)

40.8

39.2

+4.1%

Replacement NAV per share including transfer costs (in €)

47.1

44.0

+11.6%

Dividend (in € per share)

2.1

2.0

+5.0%

Total Share Return over the last 12 months

9.2%

17.3%

 

 

Attesting to the value created during the year, the Total Share Return over the last 12 months came to 9.2%, with NAV growth of 4.1% for the period and a distribution ratio of 5.1%.

EPRA NNNAV stood at €40.8 per share, reflecting the rise in fair value of properties (positive impact of €2.3 per share), dividend distributions (negative impact of €2.0 per share), consolidated earnings growth (positive impact of €0.8 per share), rent-free periods granted to new tenants (positive impact of €0.24 per share) and changes in the fair value of bank debt (positive impact of €0.2 per share).

Replacement NAV was higher, with half of the increase resulting from the rise in transfer duties (from 6.5% to 7.5%) in valuations and half from the addition of the Hanami property to the portfolio.

EPRA earnings for the year amounted to €28.2 million, compared with €18.2 million in 2015, with net cash flows from operations climbing 54.9% to represent €34.8 million.

Given that the Hanami property was added to the portfolio on December 15, its impact on annual results was very limited. For example, its contribution to 2016 IFRS rental income was €0.4 million (corresponding to theoretical annualized rental income of €9.3 million).

IFRS net income amounted to €41.3 million for the year ended December 31, 2016. The value of the real estate portfolio like-for-like continued to rise (up 3.2%), but to a lesser extent than in 2015 (up 8.2%), leading to a 49.0% relative decline in IFRS net income.

  • A renewed shareholder base 

After Northwood, which held 98.44% of Cegereal's share capital following the tender offer that closed in late January 2016, new leading investors have become shareholders of the Company, enabling it to continue qualifying for the preferential tax treatment granted to REIT-style French listed real estate investment companies (SIICs).

Only 55% of Cegereal's capital is now held in concert[1] by the Northwood entities alongside GIC, which has become the Company's second leading reference shareholder with close to 25% of the capital.

 

  • An optimized financial structure

Cegereal took advantage of favorable market conditions last summer to refinance a €405 million loan via a €525 million credit agreement, at the very competitive interest rate of 1.35%. The transaction, providing for a five-year loan with a two-year extension option, helped Cegereal reduce its finance costs by 45%.

In order to refinance the tax transparent holding company of the Rueil Malmaison acquisition, Cegereal entered into a credit agreement for €100 million on December 15, 2016. The loan carries interest at an average rate of about 1.50%.

Following these two transactions, Cegereal's debt ratio stood at 52.1%.

 

  • A major new acquisition

Cegereal has added an exceptional asset to its portfolio with the acquisition of the Hanami campus in Rueil Malmaison, the green city in the Western Crescent of Greater Paris. The 30,000 sq.m complex is made up of eight buildings spread across 3.3 hectares on a landscaped site on the banks of the Seine. Leased to first class tenants, the campus has an occupancy rate of 96%. 

With this fourth property in the portfolio, the estimated value of Cegereal's real estate assets surged 19.3% over the year to represent €1,124 million excluding transfer costs (€1,209 million including transfer costs or at "replacement value") at December 31, 2016, compared with €942 million a year earlier.

The portfolio's overall occupancy rate was 87% at December 31, 2016. Given that discussions regarding both the Arcs de Seine and Europlaza properties have reached an advanced stage, the occupancy rate should rise above 90 % in the very near future.

 

  • Operating excellence recognized at the international level

In recognition of the commitment it has made in recent years to corporate social responsibility, as currently expressed through its collaborative Upgreen Your Business program, Cegereal was ranked number one in the 2016 Global Real Estate Sustainability Benchmark (GRESB) in the "listed office property companies in Europe" category.

In addition, Cegereal obtained ISO 14001:2004 certification for its environmental management system.

Lastly, Cegereal won two awards at the European Public Real Estate Association (EPRA) conference, thereby positioning itself among Europe's leaders in financial and extra-financial reporting.

 

  • Amount to be distributed in dividends in 2017: €2.1 per share

At the Annual Shareholders' Meeting in April 2017, Cegereal intends to recommend paying a total of €2.1 in dividends per share in 2017. The dividend will be paid on July 13, 2017, subject to shareholders' approval.

Cegereal's Board of Directors met on February 16, 2017 to approve the audited consolidated financial statements for the year ended December 31, 2016.

The annual results presentation can be viewed on the Company's website:

www.cegereal.com

 

Investor Calendar

  • April 21, 2017              First-quarter 2017 revenue
  • April 2017                    Annual Shareholders' Meeting
  • July 13, 2017               Payment of the 2016 dividend
  • July 21, 2017               First-half 2017 results
  • October 26, 2017         Third-quarter 2017 revenue

 

 

 

For more information, please contact:

 

 

Media Relations

Aliénor Miens / +33 1 53 32 84 77

alienor.miens@citigate.fr   

Investor Relations

Raphaël Tréguier / +33 1 42 25 76 36

raphael.treguier@cegereal.com

 

 

 

 

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 at €1,209 million as of December 31, 2016 (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 ranks as "Sector Leader" 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 €495 million on February 13, 2017.

www.cegereal.com

 

 

 


 

APPENDICES

IFRS Income Statement (consolidated)

 

In thousands of euros, except per share data

 

 

 

2016

2015

 

12 months

12 months

 

  

Rental income

47,196 

44,310 

Income from other services

13,991 

11,349 

Building-related costs

(17,221) 

(17,156) 

Net rental income

43,965 

38,504 

 

  

Sale of building

  

Administrative costs

(3,663) 

(4,976) 

Other operating expenses

(716) 

(5) 

Other operating income

65 

 

  

Increase in fair value of investment property

34,292 

62,736 

Decrease in fair value of investment property

(13,900) 

 

Total change in fair value of investment property

20,392 

62,736 

 

  

Net operating income

  59,987

  96,323

 

  

Financial income

53 

15 

Financial expenses

(17,972) 

(14,719) 

Net financial expense

(17,919) 

(14,705) 

 

  

Corporate income tax

(802) 

(662) 

 

  

CONSOLIDATED NET INCOME

  41,265

  80,957

of which attributable to owners of the Company

41,265 

80,957 

of which attributable to non-controlling interests

 

 

 

Other comprehensive income

 

 

 

 

 

TOTAL COMPREHENSIVE INCOME

  41,265

  80,957

of which attributable to owners of the Company

  41,265

  80,957

of which attributable to non-controlling interests

 

 

 

Basic earnings per share (in euros)

  3.09

  6.06

Diluted earnings per share (in euros)

  2.95

  6.06

 

 

 


 

IFRS Balance Sheet (consolidated)

In thousands of euros

 

 

 

 

Dec. 31, 2016

Dec. 31, 2015

 

  

Non-current assets

  

 

  

Property, plant and equipment

61 

61 

Investment property

1,124,100 

942,000 

Non-current loans and receivables

22,949 

28,928 

Financial instruments

184 

 

Total non-current assets

1,147,294 

970,989 

 

  

Current assets

  

 

  

Trade accounts receivable

16,539 

13,132 

Other operating receivables

12,709 

6,899 

Prepaid expenses

354 

96 

Total receivables

29,602 

20,127 

 

  

Cash and cash equivalents

18,634 

8,723 

Total cash and cash equivalents

18,634 

8,723 

 

  

Total current assets

48,236 

28,850 

  TOTAL ASSETS

  1,195,530 

  999,839 

 

  

Shareholders' equity

  

 

  

Share capital

66,863 

160,470 

Legal reserve and additional paid-in capital

115,043 

21,436 

Consolidated reserves and retained earnings

359,877 

305,447 

Net attributable income

41,265 

80,957 

Total shareholders' equity

583,048 

568,309 

 

  

Non-current liabilities

  

 

  

Non-current borrowings

576,951 

402,664 

Other non-current borrowings and debt

4,605 

3,951 

Non-current corporate income tax liability

  

Financial instruments

920 

 

Total non-current liabilities

582,476 

406,615 

 

  

Current liabilities

  

 

  

Current borrowings

2,224 

1,626 

Trade accounts payable

5,832 

3,150 

Corporate income tax liability

  

Other operating liabilities

7,985 

4,573 

Prepaid revenue

13,966 

15,566 

Total current liabilities

30,007 

24,915 

 

  

Total liabilities

612,483 

431,530 

TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES

  1,195,530 

  999,839 

 

IFRS Statement of Cash Flows (consolidated)

In thousands of euros

 

 

 

 

2016

2015

OPERATING ACTIVITIES

 

 

Consolidated net income

41,265 

80,957 

 

 

 

Elimination of items related to the valuation of buildings:

 

 

Fair value adjustments to investment property

(20,392) 

(62,736) 

Indemnity received from lessees for the replacement of components

 

 

 

 

 

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

 

 

Depreciation of property, plant and equipment (excluding investment property)

Free share grants not vested at the reporting date

102 

 

Fair value of financial instruments (share subscription warrants, interest rate caps and swaps)

895 

 

Adjustments for loans at amortized cost

2,949

775 

 

  

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

 24,828

  19,001

 

 

 

Other changes in working capital requirements

376 

(2,975) 

Working capital adjustments to reflect changes in the scope of consolidation

134 

 

 

 

 

 Change in working capital requirements

  511

  (2,975)

 

 

 

 Net cash flows from operating activities

  25,339

  16,026

INVESTING ACTIVITIES

 

 

Acquisition of fixed assets

(161,717) 

(8,331) 

Net decrease in amounts due to fixed asset suppliers

621 

(384) 

 

 

 

 Net cash flows used in investing activities

  (161,096)

  (8,715)

FINANCING ACTIVITIES

 

 

Increase in share capital

0

Change in bank debt

181,000

Issue of financial instruments (share subscription warrants)

 

Refinancing transaction costs

(8,542) 

 

Purchases of hedging instruments

(168) 

 

Net increase in current borrowings

 

(90) 

Net decrease in current borrowings

(523) 

 

Net increase in other non-current borrowings and debt

654 

(215) 

Net decrease in other non-current borrowings and debt

 

Purchases and sales of treasury shares

(43) 

252 

Dividends paid

(26,720) 

(22,034) 

 

 

 

 Net cash flows used in financing activities

 145,668

  (22,087)

 

 

 

 Change in cash and cash equivalents

  9,911

  (14,776)

  Cash and cash equivalents at beginning of the period*

8,723 

23,499 

 

 

 

 CASH AND CASH EQUIVALENTS AT END OF THE PERIOD

  18,634

  8,723

 


 

French GAAP Income Statement

In euros

 

 

 

 

 

 

France

Exports

2016

2015

 

12 months

12 months

 

Total

Total

  Sales of goods for resale

 

 

0

 

  Sales of manufactured products

 

 

0

 

  Sales of services

 

 

70,000

46,667

NET REVENUE

0

0

  70,000

  46,667

  Change in finished goods and in-progress inventory

 

 

0

 

  In-house production

 

 

0

 

  Operating subsidies

 

 

0

 

  Reversal of depreciation and amortization charges, provisions for impairment and expense transfers

30,141

27,155

  Other revenue

0

 

Total operating revenue 

 

 

  100,141

  73,822

  Purchases of goods

0

 

  Change in inventories of goods held for resale

0

 

  Purchases of raw materials and other supplies

0

 

  Change in inventories (raw materials and other supplies)

0

 

  Other purchases and external charges

2,130,369

1,745,487

  Taxes, duties and other levies

2,611,034

129,284

  Wages and salaries

792,428

649,380

  Social security charges

334,152

266,126

  Fixed assets: depreciation and amortization

0

 

  Fixed assets: provisions for impairment

0

 

  Current assets: provisions for impairment

0

 

  Contingency and loss provisions

20,347

 

  Other expenses

194,550

122,762

Total operating expenses

 

 

  6,082,881

  2,913,039

 

 

 

OPERATING INCOME

 

 

  (5,982,740)

  (2,839,218)

 

 

 

  Allocated income or transferred loss

0

 

  Loss incurred or transferred income

0

 

  Financial income from controlled entities

0

 

  Income from other securities and receivables

0

 

  Other interest income

29,933

144

  Reversal of provisions for impairment, other provisions and expense transfers

0

5,956

  Foreign exchange gains

0

 

  Net income on sale of short-term investment securities

0

 

Total financial income/(loss)

 

 

  29,933

  6,100

 

 

 

  Depreciation, amortization, provisions for impairment and other provisions

0

0

  Interest expenses

12,599

16,302

  Foreign exchange losses

 

 

3

 

  Net expenses on sales of short-term investment securities

0

 

Total financial expenses

 

 

  12,602

  16,302

 

 

 

NET FINANCIAL EXPENSE 

 

 

  17,331

  (10,202)

   

RECURRING INCOME/(LOSS) BEFORE TAX

 

 

  (5,965,409)

  (2,849,420)


 

In euros

 

 

 

 

 

 

 

2016

2015

 

 

12 months

12 months

 

 

 

 

 

  Non-recurring income on management transactions

0

 

  Non-recurring income on capital transactions

83,162

53,309

  Reversal of provisions for impairment, other provisions and expense transfers

0

 

Total non-recurring income

 

 

  83,162

  53,309

 

 

 

 

 

  Non-recurring expenses on management transactions

0

 

  Non-recurring expenses on capital transactions

281

5,111

  Depreciation, amortization and provisions for impairment

0

 

Total non-recurring expenses

 

 

  281

  5,111

 

 

 

 

 

NET NON-RECURRING EXPENSE

 

 

  82,881

  48,198

 

 

 

 

 

  Employee profit sharing

0

 

  Corporate income tax

802,365

661,939

 

 

 

 

 

TOTAL INCOME 

 

 

  213,235

  133,230

TOTAL EXPENSES 

 

 

  6,898,129

  3,596,391

 

 

 

 

 

NET INCOME

 

 

  (6,684,893)

  (3,463,161)

 


 

French GAAP Balance Sheet

In euros

    

 

 ASSETS

Gross amount

Depr., amort. & prov.

Dec. 31, 2016

Dec. 31, 2015

 

 

 

 

 

Uncalled subscribed capital

  - 

 

  - 

 

Intangible fixed assets

  - 

 

 

 

  Start-up costs

  - 

 

  - 

 

  Research and development costs

  - 

 

  - 

 

  Licenses, patents and similar concessions

 

 

  - 

 

  Goodwill

  - 

 

  - 

 

  Other intangible fixed assets

  - 

 

  - 

 

  Advances/down payments on intangible assets

 

 

  - 

 
 

  - 

 

 

 

Property, plant and equipment

  - 

 

 

 

  Land

  - 

 

  - 

 

  Buildings

  - 

 

  - 

 

  Plant, machinery and equipment

  - 

 

  - 

 

  Other property, plant and equipment

 

 

  - 

 

  Property, plant and equipment in progress

 

 

  - 

 

  Advances and down payments

  - 

 

  - 

 
 

  - 

 

 

 

Financial fixed assets

  - 

 

 

 

  Receivables from controlled entities

  326,405,364 

 

  326,405,364 

  361,229,772 

  Other long-term investments

  - 

 

  - 

 

  Loans

  - 

 

  - 

 

  Other financial fixed assets

  725,947 

 

  725,947 

  643,078 

 

 

 

 

 

FIXED ASSETS

  327,131,311

  - 

  327,131,311

  361,872,850

 

 

 

 

 

Inventories and work in progress

 

 

 

 

  Raw materials and other supplies

 

 

  - 

 

  Manufactured products in progress

  - 

 

  - 

 

  Services in progress

  - 

 

  - 

 

  Semi-finished and finished goods

 

 

 

 

  Goods held for resale

  - 

 

  - 

 
 

 

 

 

 

Advances/down payments on orders

 

 

 

 
 

 

 

 

 

Receivables

 

 

 

 

  Trade accounts receivable

  - 

 

  - 

 

  Other receivables

  3,046,532 

 

  3,046,532 

  266,196 

  Subscribed capital, called up but not paid

 

 

  - 

 
 

 

 

 

 

Short-term investment securities

  - 

 

  - 

 

Cash and cash equivalents

  3,748,046 

 

  3,748,046 

  109,145 

 

 

 

 

 

CURRENT ASSETS

  6,794,577

  - 

  6,794,577

  375,341

 

 

 

 

 

Prepaid expenses

  44,035 

 

  44 035 

  58,718 

Adjustment accounts

  - 

 

  - 

 
 

 

 

 

 

 TOTAL ASSETS

  333,969,924

  - 

  333,969,924

  362,306,909

In euros

 

 

 

 

 EQUITY AND LIABILITIES

 

Dec. 31, 2016

Dec. 31, 2015

 

 

 

 

 

 

Capital

 

 

 

 

  Share capital (including paid-up capital: 66,862,500)

66,862,500

160,470,000

 

  Additional paid-in capital

 

99,004,926

5,388,776

 

  Revaluation reserve

 

152,341,864

152,341,864

 

 

 

 

 

 

Reserves

 

 

 

 

  Legal reserve

 

16,047,000

16,047,000

 

  Statutory or contractual reserves

 

0

  -

 

  Regulated reserves

 

0

  -

 

  Other reserves

 

10,670

30,188,422

 

Retained earnings

 

 

 

 

  Retained earnings

 

24,910

30,409

 

  Net income/(loss) for the year

 

  (6,684,893)

  (3,463,161)

 

  Interim dividend

 

0

0

 

 

 

 

 

 

Investment subsidies

 

 

  -

 

Regulated provisions

 

 

  -

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

   327,606,977

  361,003,310

 

 

 

 

 

 

Income from the issue of equity instruments

 

  -

 

 

Contingent advances

 

  -

 

 

 

 

 

 

 

OTHER EQUITY

 

  - 

  - 

 

 

 

 

 

 

Contingency provisions

 

 

 

 

Loss provisions

 

20,347

 

 

 

 

 

 

 

CONTINGENCY AND LOSS PROVISIONS

 

  20,347

  - 

 

 

 

 

 

 

Non-current borrowings and debt

 

 

 

 

  Convertible bonds

0

  -

 

  Other bonds

0

  -

 

  Bank borrowings

0

  -

 

  Miscellaneous borrowings and debt

2,079,134

0

 

 

 

 

 

 

Trade accounts payable and other current liabilities

 

 

 

 

  Advances/down payments received on orders in progress

  -

  -

 

  Trade accounts payable

3,769,534

823,375

 

  Tax and social liabilities

493,932

480,224

 

  Amounts owed to fixed asset suppliers

 

0

 

  Other liabilities

0

0

 

  Prepaid revenue

0

0

 

 

 

 

 

 

LIABILITIES

 

  6,342,600

  1,303,599

 

 

 

 

 

 

Adjustment accounts

 

0

0

 

 

 

 

 

 

 TOTAL EQUITY AND LIABILITIES

 

   333,969,924

  362,306,909

 

 



[1] Companies may maintain SIIC (REIT) status provided that one or several shareholders acting in concert within the meaning of Article L.223-10 of the French Commercial Code (Code de commerce) does not directly or indirectly hold 60% or more of their capital (see also Article 208C of the French Tax Code (Code général des impôts)).



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This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of NASDAQ OMX Corporate Solutions clients. Source: Cegereal, 21-25, rue Balzac, Paris 75008, France
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