- Rental income stable at €63.0m
- Increase in EPRA earnings of 5.1%
- Ranked global leader in sustainable development by GRESB
- €2.0 per share distribution
- A new corporate identity submitted to the General Shareholders' Meeting
Regulatory News:
Cegereal (Paris:CGR):
Key indicators
In millions of euros | 2020 | 2019 | Change |
Rental income (IFRS) | 63.0 | 63.4 | -0.5% |
EPRA earnings | 42.1 | 40.0 | +5.1% |
Portfolio (excl. transfer duties) | 1448 | 1464 | -1.1% |
Occupancy rate | 90.1% | 96.9% | -6.8 pts |
LTV ratio | 53.0% | 52.6% | +0.4 pts |
EPRA NNNAV per share excluding transfer duties (in €) | 44.3 | 43.7 | +1.4% |
Jérôme Anselme, Cegereal's Chief Executive Officer commented: "2020 was an unusual year because of the global pandemic. Exclusively positioned in the office real estate segment in Paris and Greater Paris, Cegereal delivered a solid performance, demonstrating its strong resilience and ability to adapt, as well as its leadership in corporate social responsibility. Right from the start of the crisis, our teams and our partners rallied together to adapt our buildings to the new health restrictions in record time and to offer tailored solutions in consultation with our tenants. We continued to record brisk activity on our portfolio, with good rental transactions and projects delivered in accordance with the announced schedules.
We firmly believe that 2021 will be another dynamic year in which our teams will continue imagining the offices of the future and making them a reality. Over the past few years, Cegereal has successfully transformed into a leading office property company with a portfolio that is perfectly positioned to meet new user expectations and adapt to future work and lifestyle trends. To support its ambitions, at the General Shareholders' Meeting to be held on May 12, 2021, the Group will ask shareholders to approve changing its identity to Vitura."
Strong rental activity despite the health crisis
Over the course of 2020, leases were signed, extended or renewed on more than 21,000 sq.m or 12% of the total surface area of Cegereal's portfolio attesting to the Company's vitality. Each of Cegereal's real estate assets was actively marketed, resulting notably in the renewal of the lease to Brandt at the Hanami property in Rueil-Malmaison until 2024 and the arrival of Nintendo and DLL Financial Solutions Partner at Europlaza in La Défense. The extension of Crédit Foncier de France's lease for half the surface area of Rives de Bercy for an additional year, signed in early 2021, brings the signed surface area to 36,000 sq.m. or more than 20% of the total surface area in the portfolio.
Thanks to the sustained pace of activity, on a par with previous years, IFRS rental income remained stable over the period, totaling €63.0 million for 2020, just 0.5% lower than in 2019.
Cegereal's occupancy rate was 90.1% at December 31, 2020 versus 96.9% a year earlier, representing a decline of 6.8 percentage points. The contraction primarily reflects the spaces vacated by Sagem in April, in the Arcs de Seine campus, and by Hewlett Packard at the end of the year, for which Cegereal received €2.9 million in early termination indemnities covering rent due in 2020. These departures will allow the Company to renovate the vacant space in line with new trends.
The estimated value of Cegereal's property portfolio (excluding transfer duties) reflects this resilience and amounted to €1,448 million at December 31, 2020, down very slightly (1.1%) from the previous year.
Cegereal is exclusively positioned in the office real estate segment 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 and the rent collection rate for 2020 was 100%.
Gain in EPRA earnings and EPRA NNNAV
The asset management work undertaken had a positive impact on the Company's operating and financial performance for the year. Cegereal's EPRA earnings totaled €42.1 million in 2020, up 5.1% from 2019.
Cegereal's recurring cash flow rose by 8.6% to €46.6 million in 2020, versus €42.9 million in 2019.
IFRS net attributable income came in at €16.1 million, compared with €80.8 million in 2019, the decline primarily reflecting the change in the estimated value of the buildings, which was negative in 2020 but was up strongly in 2019.
EPRA NNNAV stood at €704.5 million or €44.3 per share at end-December, up 1.4% from €695.1 million or €43.7 per share at December 31, 2019. The increase reflects growth in IFRS consolidated net income (€42.1 million), a decline in the portfolio value (€26.0 million) and the dividend distribution (€11.9 million).
IFRS consolidated net debt came to €768 million at December 31, 2020, representing a loan-to-value ratio of 53%, while the average maturity of the Group's borrowings stood at 2.5 years with an average interest rate of 1.3%.
Global leader in sustainable development
Cegereal has been firmly committed to environmental, social and governance (ESG) issues since its creation.
Each year, its commitment has been acknowledged by organizations recognized as experts in this area. In 2020, GRESB rewarded the Company by naming it a Global Sector Leader in the listed office property companies category, with a score of 94/100. Cegereal also received two Gold Awards from the European Public Real Estate Association (EPRA) for the quality and transparency of its financial and non-financial reporting and a score of A from the Carbon Disclosure Project (CDP), which puts it among the world's leading companies in terms of climate change strategy.
2021 distribution: €2.0 per share
In the interests of prudence and in light of the uncertainty surrounding the Covid-19 epidemic, the Company decided to adjust the 2019 dividend to €0.75 per share. The decision enabled Cegereal to protect its cash position and continue to do business as usual.
At the next General Shareholders' Meeting, on May 12, 2021, Cegereal will recommend a distribution of €2.0 per share.
New corporate identity
Cegereal has announced its intention to change its corporate identity to become Vitura. The name Vitura embodies the ideas of vitality, agility and responsibility, values on which the Company builds its strategy in order to continue developing the workplace of the future. The brand vision, "Workplaces for People. By People", emphasizes the trust-based partnerships Cegereal forges with its stakeholders, who share its goal of long-term value creation.
The various aspects of this change in corporate identity are presented in a press release published today, which is available on the Company's website.
The corporate rebranding will be subject to a vote by the General Shareholders' Meeting to be held on May 12, 2021.
Cegereal's Board of Directors met on February 18, 2021 to approve the audited consolidated financial statements for the year ended December 31, 2020.
The annual results presentation can be viewed on the Company's website: www.cegereal.com
Investor Calendar
May 12, 2021: General Shareholders' Meeting
About Cegereal
Created in 2006, Cegereal is a listed real estate company that invests in prime office properties in Paris and Greater Paris. The total value of the portfolio was estimated at €1,448 million at December 31, 2020 (excluding transfer duties). Thanks to its strong commitment to sustainable development, Cegereal was named a Global Sector Leader in the 2020 Global Real Estate Sustainability Benchmark's (GRESB) listed office property companies category and received two Gold Awards from the European Public Real Estate Association (EPRA) for the quality and transparency of its financial and non-financial reporting. Its entire portfolio has achieved NF HQETM 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 €509 million on February 17, 2021. Visit our website to find out more: www.cegereal.com
APPENDICES
IFRS Income Statement (consolidated)
In thousands of euros, except per share data | ||
2020 | 2019 | |
12 months | 12 months | |
Rental income | 63 032 | 63 369 |
Income from other services | 21 845 | 20 045 |
Building-related costs* | (21 552) | (31 621) |
Net rental income | 63 324 | 51 793 |
Sale of building | 0 | 0 |
Administrative costs* | (8 983) | (3 885) |
Other operating expenses | (61) | (13) |
Other operating income | 600 | 165 |
Increase in fair value of investment property | 29 129 | 60 710 |
Decrease in fair value of investment property | (55 103) | (14 480) |
Total change in fair value of investment property | (25 974) | 46 230 |
Net operating income | 28 906 | 94 289 |
Financial income | 230 | 0 |
Financial expenses | (13 042) | (13 529) |
Net ?nancial expense | (12 812) | (13 529) |
Corporate income tax | 0 | 0 |
CONSOLIDATED NET INCOME | 16 094 | 80 760 |
of which attributable to owners of the Company | 16 094 | 80 760 |
of which attributable to non-controlling interests | 0 | 0 |
Other comprehensive income | ||
TOTAL COMPREHENSIVE INCOME | 16 094 | 80 760 |
of which attributable to owners of the Company | 16 094 | 80 760 |
of which attributable to non-controlling interests | 0 | 0 |
Basic earnings per share (in euros) | 1,00 | 5,10 |
Diluted earnings per share (in euros) | 1,00 | 4,92 |
The IFRS income statement, including comparative data for 2019, has been modified to provide users of the financial statements with a better understanding of the rental performance of the Group's properties. Accordingly, the advisory fee and incentive fee defined in the Asset Management Agreement have been reclassified from "building-related costs" to "administrative costs". In 2020, these fees amounted to €5,383 thousand compared with €10,108 thousand in 2019.
IFRS Balance Sheet (consolidated)
In thousands of euros | ||
Dec. 31, 2020 | Dec. 31, 2019 | |
Non-current assets | ||
Property, plant and equipment | 25 | 38 |
Investment property | 1 448 170 | 1 463 920 |
Non-current loans and receivables | 17 780 | 23 146 |
Financial instruments | 8 | 34 |
Total non-current assets | 1 465 983 | 1 487 138 |
Current assets | ||
Trade accounts receivable | 11 474 | 9 720 |
Other operating receivables | 11 459 | 11 607 |
Prepaid expenses | 366 | 292 |
Total receivables | 23 299 | 21 620 |
Cash and cash equivalents | 62 836 | 44 880 |
Total cash and cash equivalents | 62 836 | 44 880 |
Total current assets | 86 135 | 66 499 |
TOTAL ASSETS | 1 552 118 | 1 553 637 |
Shareholders' equity | ||
Share capital | 60 444 | 79 532 |
Legal reserve and additional paid-in capital | 74 206 | 66 462 |
Consolidated reserves and retained earnings | 583 574 | 503 513 |
Net attributable income | 16 094 | 80 760 |
Total shareholders' equity | 734 318 | 730 268 |
Non-current liabilities | ||
Non-current borrowings | 671 322 | 763 974 |
Other non-current borrowings and debt | 8 585 | 10 087 |
Non-current corporate income tax liability | 0 | 0 |
Financial instruments | 658 | 682 |
Total non-current liabilities | 680 565 | 774 743 |
Current liabilities | ||
Current borrowings | 96 821 | 3 468 |
Trade accounts payable | 10 056 | 12 349 |
Corporate income tax liability | 0 | 0 |
Other operating liabilities | 8 916 | 10 437 |
Prepaid revenue | 21 442 | 22 373 |
Total current liabilities | 137 235 | 48 626 |
Total liabilities | 817 800 | 823 369 |
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 1 552 118 | 1 553 637 |
IFRS Statement of Cash Flows (consolidated)
In thousands of euros | ||
2020 | 2019 | |
OPERATING ACTIVITIES | ||
Consolidated net income | 16 094 | 80 760 |
Elimination of items related to the valuation of buildings: | ||
Fair value adjustments to investment property | 25 974 | (46 230) |
Annulation des dotations aux amortissement | ||
Indemnité perçue des locataires pour le remplacement des composants | 0 | 0 |
Elimination of other income/expense items with no cash impact: | ||
Depreciation of property, plant and equipment (excluding investment property) | 13 | 9 |
Free share grants not vested at the reporting date | 0 | 0 |
Fair value of ?nancial instruments (share subscription warrants, interest rate caps and swaps) | 2 | 427 |
Adjustments for loans at amortized cost | 2 265 | 2 362 |
Contingency and loss provisions | 0 | 0 |
Corporate income tax | ||
Penalty interest | ||
Cash ows from operations before tax and changes in working capital requirements | 44 347 | 37 329 |
Other changes in working capital requirements | (1 708) | (8 277) |
Working capital adjustments to re?ect changes in the scope of consolidation | ||
Change in working capital requirements | (1 708) | (8 277) |
Net cash ows from operating activities | 42 639 | 29 052 |
INVESTING ACTIVITIES | ||
Acquisition of ?xed assets | (10 224) | (9 170) |
Net increase in amounts due to fixed asset suppliers | 650 | (1 745) |
Net cash ows used in investing activities | (9 573) | (10 915) |
FINANCING ACTIVITIES | ||
Capital increase | 0 | 11 204 |
Capital increase transaction costs | 0 | 0 |
Change in bank debt | (1 500) | (1 500) |
Issue of ?nancial instruments (share subscription warrants) | 0 | 0 |
Re?nancing/financing transaction costs | (102) | (102) |
Net increase in liability in respect of re?nancing | 0 | (420) |
Purchases of hedging instruments | 0 | 0 |
Net increase in current borrowings | 38 | 236 |
Net decrease in current borrowings | 0 | 0 |
Net increase in other non-current borrowings and debt | (1 502) | 544 |
Net decrease in other non-current borrowings and debt | 0 | 0 |
Purchases and sales of treasury shares | (124) | (28) |
Dividends paid | (11 919) | (36 557) |
Net cash ows from nancing activities | (15 110) | (26 625) |
Change in cash and cash equivalents | 17 956 | (8 488) |
Cash and cash equivalents at beginning of period* | 44 880 | 53 367 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 62 836 | 44 880 |
There were no cash liabilities for any of the periods presented above. |
French GAAP Income Statement
In euros | ||
Dec. 31, 2020 | Dec. 31, 2019 | |
12 months | 12 months | |
Sales of services | 248 600 | 248 750 |
NET REVENUE | 248 600 | 248 750 |
Reversal of depreciation and amortization charges, impairment and expense transfers | 0 | 0 |
Other revenue | 33 083 | 22 559 |
Total operating revenue | 281 683 | 271 309 |
Purchases of raw materials and other supplies | 0 | 0 |
Other purchases and external charges | 1 602 280 | 1 901 020 |
Taxes, duties and other levies | 36 536 | 39 809 |
Wages and salaries | 254 999 | 340 980 |
Social security charges | 163 553 | 175 048 |
Fixed assets: depreciation and amortization | 3 435 | 3 561 |
Contingency and loss provisions | 0 | 0 |
Other expenses | 200 131 | 196 229 |
Total operating expenses | 2 260 934 | 2 656 646 |
OPERATING LOSS | (1 979 251) | (2 385 337) |
Financial income from controlled entities | 802 677 | 3 022 000 |
Other interest income | 0 | 0 |
Foreign exchange gains | 0 | 0 |
Total ?nancial income | 802 677 | 3 022 000 |
Interest expenses | 634 | 104 731 |
Foreign exchange losses | 0 | 0 |
Total financial expenses | 634 | 104 731 |
NET FINANCIAL INCOME | 802 042 | 2 917 269 |
RECURRING LOSS BEFORE TAX | (1 177 208) | 531 932 |
Non-recurring income on capital transactions | 6 619 | 42 347 |
Reversal of impairment, provisions and non-recurring expense transfers | 0 | 0 |
Total non-recurring income | 6 619 | 42 347 |
Non-recurring expenses on management transactions | 0 | 5 000 |
Non-recurring expenses on capital transactions | 98 759 | 11 352 |
Total non-recurring expenses | 98 759 | 16 352 |
NET NON-RECURRING INCOME | (92 140) | 25 995 |
Corporate income tax | 0 | 0 |
TOTAL INCOME | 1 090 979 | 3 335 656 |
TOTAL EXPENSES | 2 360 327 | 2 777 729 |
NET LOSS | (1 269 348) | 557 927 |
French GAAP Balance Sheet
In euros | ||||
ASSETS | Gross amount | Depr., amort. prov. | Dec. 31, 2020 | Dec. 31, 2019 |
Property, plant and equipment | ||||
Other property, plant and equipment | 34 218 | (9 140) | 25 078 | 5 071 |
Financial ?xed assets | ||||
Receivables from controlled entities | 201 434 031 | 201 434 031 | 235 004 686 | |
Loans | ||||
Other ?nancial ?xed assets | 748 879 | 748 879 | 791 653 | |
FIXED ASSETS | 202 217 128 | (9 140) | 202 207 988 | 235 801 410 |
Receivables | ||||
Trade accounts receivable | 298 320 | 298 320 | 233 134 | |
Other receivables | 63 242 363 | 63 242 363 | 68 291 960 | |
Cash and cash equivalents | 21 628 362 | 21 628 362 | 2 236 722 | |
CURRENT ASSETS | 85 169 045 |
| 85 169 045 | 70 761 815 |
Prepaid expenses | 26 587 | 26 587 | ||
TOTAL ASSETS | 287 412 760 | (9 140) | 287 403 620 | 306 563 225 |
In euros | ||||
EQUITY AND LIABILITIES | Dec. 31, 2020 | Dec. 31, 2019 | ||
Capital | ||||
Share capital (including paid-up capital: 66,862,500) | 60 444 472 | 79 532 200 | ||
Additional paid-in capital | 67 055 023 | 59 463 926 | ||
Revaluation reserve | 152 341 864 | 152 341 864 | ||
Reserves | ||||
Legal reserve | 7 953 220 | 7 800 625 | ||
Other reserves | ||||
Retained earnings | ||||
Retained earnings | 10 389 | 27 867 | ||
Net loss for the year | (1 269 348) | 557 927 | ||
SHAREHOLDERS' EQUITY | 286 535 620 | 299 724 408 | ||
OTHER EQUITY |
|
| ||
Loss provisions | ||||
CONTINGENCY AND LOSS PROVISIONS |
|
| ||
Non-current borrowings and debt | ||||
Miscellaneous borrowings and debt | 5 793 854 | |||
Trade accounts payable and other current liabilities | ||||
Trade accounts payable | 541 635 | 721 770 | ||
Tax and social liabilities | 325 306 | 323 194 | ||
Amounts owed to ?xed asset suppliers | ||||
Other debts | 1 059 | |||
LIABILITIES | 868 000 | 6 838 817 | ||
TOTAL EQUITY AND LIABILITIES | 287 403 620 | 306 563 225 |
Reconciliation of Alternative Performance Measures (APM)
Recurring cash flow APM | |||
In thousands of euros | 2020 | 2019 | |
Net income under IFRS | 16 094 | 80 760 | |
Restatement of changes in fair value of investment property | 25 974 | (46 230) | |
Other restatements of changes in fair value | 2 | 454 | |
Restatement of other fees | 0 | 5 061 | |
EPRA earnings | 42 070 | 40 046 | |
Restatement of deferred lease incentives (IAS 17) | 2 373 | 602 | |
Restatement of deferred finance costs | 2 163 | 2 260 | |
Cegereal recurring cash flow | 46 606 | 42 908 |
(1) Non-recurring fees due under the Asset Management Agreement.
EPRA NNNAV APM | |||||
In thousands of euros | 2020 | 2019 | |||
Shareholders' equity under IFRS | 734 318 | 730 268 | |||
Portion of rent-free periods | (26 241) | (28 614) | |||
Market value of loans | (769 535) | (771 837) | |||
Carrying amount of loans | 765 930 | 765 240 | |||
NNNAV PER SHARE | 704 472 | 695 057 |
(2) Lease incentives recorded in assets in the IFRS consolidated financial statements under "Non-current loans and receivables" and "Other operating receivables".
(3) Consolidated gross debt at December 31, 2020 recorded in the IFRS consolidated financial statements under "Current borrowings" and "Non-current borrowings", adjusted for interest not yet due of €2,213 thousand.
LTV ratio APM | |||||
In thousands of euros | 2020 | 2019 | |||
Gross amount of balance sheet loans (statutory financial statements) | 768 | 769 | |||
Fair value of investment property (excluding transfer duties) | 1 448 | 1 464 | |||
LTV ratio (%) | 53,0% | 52,6% |
(4) Consolidated gross debt at December 31, 2020 recorded in the statutory financial statements.
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/20210218006057/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