Regulatory News:
Cegereal (Paris:CGR):
In millions of euros | First-half
| First-half
| Change |
Rental income (IFRS) | 31.6 | 31.3 | +0.9% |
EPRA earnings (EPRA) | 19.8 | 20.6 | -4% |
EPRA earnings (EPRA) excl. non-recurring income | 19.2 | 18.7 | +2.7% |
Portfolio value (excl. transfer duties) | 1,460 | 1,435 | +1.8% |
LTV ratio | 52.6% | 53.7% | -1.1pt |
EPRA NAV per share excl. transfer duties (in €) | 44.1 | 42.0 | +5.0% |
EPRA NNNAV per share excl. transfer duties (in €) | 43.7 | 41.3 | +5.8% |
Distribution per share (in €) | 0.75 | 2.3 | -67% |
Despite the health crisis which emerged during the first half of 2020, Cegereal posted a slight +0.9% increase in rental income compared with the same period of 2019. EPRA earnings excluding non-recurring income, i.e., excluding the various indemnities received, were up +2.7% versus first-half 2019. These results are a testament to sound business management during the epidemic.
The occupancy rate stood at 93.4% at the period-end, after Sagem vacated 5,700 sq.m of space at Arcs de Seine in Boulogne-Billancourt on April 1, 2020. At December 31, 2019, the occupancy rate stood at 96.9%. This recently vacated space is already being renovated, with delivery scheduled in the second half of 2020. The campus enjoys good transport links, views over the Seine, private landscaped gardens and a living roof, and is being actively marketed.
Assets adapted to support tenant decisions
In the first six months of the year, Cegereal's operations were marked by the implementation from March of measures to ensure the health and safety of its employees, partners and clients. As lockdown measures were eased, Cegereal's teams were fully mobilized to make the necessary adjustments at its properties, based on decisions taken by tenants' management, and to support tenants as their employees gradually returned to the workplace. Attentive to their needs, Cegereal remains available to assess the impacts of the difficult economic conditions on its tenants' businesses on a case-by-case basis.
Cegereal took every step to ensure that refurbishment work was delivered as initially scheduled so that the new tenants announced at the end of 2019 could take up their new space during the first half of 2020.
In terms of rental activity, despite a particularly lackluster climate, Brandt renewed its lease at the Hanami property in Rueil-Malmaison (next to the La Défense business district) until 2024.
Low exposure to economic disruptions
Cegereal is exclusively positioned in the office real estate market and its tenants which are mainly large corporates, have solid profiles. As a result, the impacts of the health crisis on its business are limited, with the rent collection rate for the third quarter currently standing at more than 95%. Rent payment deferrals granted by Cegereal in the first half represented less than 1% of its rental income.
Over the coming months, the impact of the economic crisis is expected to remain contained, as the Company benefits from a weighted average lease term of 5.2 years which has continuously increased over the last two years. Cegereal's long-term rental income stream therefore remains secure. In addition, the loan-to-value ratio decreased by -1.1 percentage point compared with first-half 2019.
Given these factors, Cegereal is well equipped to respond to worsening economic conditions should the need arise.
"Responsible property company" strategy validated
The last few weeks have seen considerable growth in awareness and increased attention from tenants in terms of environmental, social and governance issues. Thanks to its CSR strategy, which has been in place since its creation, and its status as Europe's most sustainable listed property company, obtained in the 2019 GRESB (Global Real Estate Sustainability Benchmark) ranking, Cegereal is confident in its position as a leading sustainable property company for both social and environmental issues.
Long-term financial agility
The Company paid a dividend of €0.75 per share in place of the initially planned €2.30 per share. Carried out in the interests of prudence, this one-off reduction gives the Company headroom and enables it to maintain its operational agility in an uncertain environment.
Investor Calendar
November 6, 2020: Third-quarter 2020 rental income
About Cegereal
Created in 2006, Cegereal is a listed property company that invests in prime office properties in Greater Paris. The total value of the portfolio was estimated at €1,460 million at June 30, 2020 (excluding transfer duties).
Thanks to its strong commitment to environmental, social and governance issues, Cegereal achieved first place among listed companies in Europe in the 2019 Global Real Estate Sustainability Benchmark (GRESB) ranking. Its entire portfolio has achieved NF HQE Exploitation and BREEAM In-Use International certification.
Cegereal is a REIT listed on Euronext Paris since 2006, in compartment B (ISIN: FR0010309096). The Company had a market capitalization of €531 million at July 28, 2020.
www.cegereal.com
APPENDICES
IFRS Income Statement (consolidated)
In thousands of euros, except per share data | |||
June 30,
| 2019 | June 30,
| |
6 months | 12 months | 6 months | |
Rental income | 31 567 | 63 369 | 31 290 |
Income from other services | 13 211 | 20 045 | 15 030 |
Building-related costs | (19 938) | (31 621) | (17 818) |
Net rental income | 24 841 | 51 793 | 28 502 |
Sale of building | 0 | 0 | 0 |
Administrative costs | (1 774) | (3 885) | (1 983) |
Other operating expenses | (6) | (13) | (7) |
Other operating income | 624 | 165 | 220 |
Increase in fair value of investment property | 10 688 | 60 710 | 36 137 |
Decrease in fair value of investment property | (19 065) | (14 480) | (13 010) |
Total change in fair value of investment property | (8 377) | 46 230 | 23 127 |
Net operating income | 15 307 | 94 289 | 49 860 |
Financial income | 0 | 0 | 0 |
Financial expenses | (6 362) | (13 529) | (7 120) |
Net ?nancial expense | (6 362) | (13 529) | (7 121) |
Corporate income tax | 0 | 0 | 0 |
CONSOLIDATED NET INCOME | 8 945 | 80 760 | 42 739 |
of which attributable to owners of the Company | 8 945 | 80 760 | 42 739 |
of which attributable to non-controlling interests | 0 | 0 | 0 |
Other comprehensive income | |||
TOTAL COMPREHENSIVE INCOME | 8 945 | 80 760 | 42 739 |
of which attributable to owners of the Company | 8 945 | 80 760 | 42 739 |
of which attributable to non-controlling interests | 0 | 0 | 0 |
Basic earnings per share (in euros) | 0,56 | 5,10 | 2,71 |
Diluted earnings per share (in euros) | 0,54 | 4,92 | 2,60 |
IFRS Balance Sheet (consolidated)
In thousands of euros | |||
June 30,
| 2019 | June 30,
| |
Non-current assets | |||
Property, plant and equipment | 31 | 38 | 44 |
Investment property | 1 460 380 | 1 463 920 | 1 435 240 |
Non-current loans and receivables | 20 220 | 23 146 | 22 298 |
Financial instruments | 38 | 34 | 57 |
Total non-current assets | 1 480 669 | 1 487 138 | 1 457 639 |
Current assets | |||
Trade accounts receivable | 14 595 | 9 720 | 13 130 |
Other operating receivables | 12 955 | 11 607 | 9 938 |
Prepaid expenses | 188 | 292 | 131 |
Total receivables | 27 738 | 21 620 | 23 199 |
Cash and cash equivalents | 47 062 | 44 880 | 29 187 |
Total cash and cash equivalents | 47 062 | 44 880 | 29 187 |
Total current assets | 74 800 | 66 499 | 52 386 |
TOTAL ASSETS | 1 555 469 | 1 553 637 | 1 510 025 |
Shareholders' equity | |||
Share capital | 79 532 | 79 532 | 79 532 |
Legal reserve and additional paid-in capital | 55 118 | 66 462 | 66 462 |
Consolidated reserves and retained earnings | 583 645 | 503 513 | 503 481 |
Net attributable income | 8 945 | 80 760 | 42 739 |
Total shareholders' equity | 727 240 | 730 268 | 692 214 |
Non-current liabilities | |||
Non-current borrowings | 763 883 | 763 974 | 763 664 |
Other non-current borrowings and debt | 11 117 | 10 087 | 9 381 |
Financial instruments | 637 | 682 | 741 |
Total non-current liabilities | 775 637 | 774 743 | 773 786 |
Current liabilities | |||
Current borrowings | 3 871 | 3 468 | 3 378 |
Trade accounts payable | 14 920 | 12 349 | 5 866 |
Other operating liabilities | 12 427 | 10 437 | 13 953 |
Prepaid revenue | 21 375 | 22 373 | 20 828 |
Total current liabilities | 52 593 | 48 626 | 44 025 |
Total liabilities | 828 229 | 823 369 | 817 811 |
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 1 555 469 | 1 553 637 | 1 510 025 |
IFRS Statement of Cash Flows (consolidated) In thousands of euros | |||
June 30,
| 2019 | June 30,
| |
OPERATING ACTIVITIES | |||
Consolidated net income | 8 945 | 80 760 | 42 739 |
Elimination of items related to the valuation of buildings: | |||
Fair value adjustments to investment property | 8 377 | (46 230) | (23 127) |
Elimination of other income/expense items with no cash impact: | |||
Depreciation of property, plant and equipment (excluding investment property) | 6 | 9 | 7 |
Free share grants not vested at the reporting date | 0 | 0 | 0 |
Fair value of ?nancial instruments (share subscription warrants, interest rate caps and swaps) | (65) | 427 | 469 |
Adjustments for loans at amortized cost | 1 151 | 2 362 | 1 177 |
Contingency and loss provisions | 0 | 0 | 0 |
Corporate income tax | 0 | 0 | 0 |
Cash ?ows from operations before tax and changes in working capital requirements | 18 414 | 37 329 | 21 264 |
Other changes in working capital requirements | 1 155 | (8 277) | (13 314) |
Working capital adjustments to re?ect changes in the scope of consolidation | |||
Change in working capital requirements | 1 155 | (8 277) | (13 314) |
Net cash ?ows from operating activities | 19 569 | 29 052 | 7 950 |
INVESTING ACTIVITIES | |||
Acquisition of ?xed assets | (4 837) | (9 170) | (3 595) |
Net increase in amounts due to fixed asset suppliers | (785) | (1 745) | (1 950) |
Net cash ?ows used in investing activities | (5 622) | (10 915) | (5 546) |
FINANCING ACTIVITIES | |||
Capital increase | 0 | 11 204 | 11 204 |
Change in bank debt | (750) | (1 500) | (750) |
Re?nancing/financing transaction costs | (51) | (102) | (40) |
Net variation in liability in respect of re?nancing | 0 | (420) | (420) |
Net increase in current borrowings | (22) | 236 | 204 |
Net decrease in current borrowings | 0,00 | 0,00 | 0,00 |
Net increase in other non-current borrowings and debt | 1 030 | 544 | (163) |
Net decrease in other non-current borrowings and debt | 0 | 0 | 0 |
Purchases and sales of treasury shares | (53) | (28) | (61) |
Dividends paid | (11 919) | (36 557) | (36 557) |
Net cash ?ows from ?nancing activities | (11 766) | (26 625) | (26 583) |
Change in cash and cash equivalents | 2 182 | (8 488) | (24 179) |
Cash and cash equivalents at beginning of period* | 44 880 | 53 367 | 53 367 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 47 062 | 44 880 | 29 188 |
There were no cash liabilities for any of the periods presented above. |
Reconciliation of Alternative Performance Measures (APM)
Cegereal recurring cash flow APM | ||
In thousands of euros | June 30, 2020 | June 30, 2019 |
Net income under IFRS | 8 945 | 42 739 |
Restatement of changes in fair value of investment property | 8 377 | (23 127) |
Other restatements of changes in fair value | (49) | 490 |
Restatement of other fees | 2 533 | 534 |
EPRA earnings | 19 807 | 20 636 |
APM EPRA earnings (EPRA) excl. non-recurring income | |||
En milliers d'euros | June 30,2020 | June 30,2019 | |
EPRA earnings (EPRA) | 19 807 | 20 636 | |
Restatement of non-recurring income | (615) | (1 941) | |
EPRA earnings (EPRA) excl. non-recurring income | 19 192 | 18 695 | |
EPRA NNNAV APM | ||
In thousands of euros | June 30, 2020 | 2019 |
Shareholders' equity under IFRS | 727 240 | 730 268 |
Portion of rent-free periods | (27 200) | (28 614) |
Market value of loans | (770 647) | (771 837) |
Carrying amount of loans | 765 573 | 765 240 |
EPRA NNNAV | 694 966 | 695 057 |
LTV ratio APM | ||
In thousands of euros | June 30, 2020 | June 30, 2019 |
Gross amount of balance sheet loans (statutory financial statements) | 769 | 770 |
Fair value of investment property | 1 460 | 1 435 |
LTV ratio (%) | 52,6% | 53,7% |
Occupancy rate APM | ||
The occupancy rate is the ratio of space for which the Company receives rent under a lease agreement to the total amount of available space. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200728006002/en/
Contacts:
Media Relations
Aliénor Miens/Quentin Dussart
+33 (0)6 59 42 29 35 cegereal@citigatedewerogerson.com
Investor Relations
Charlotte de Laroche
+33 1 42 25 76 38
info@cegereal.com