DJ PATRIMOINE ET COMMERCE: 2022 HALF-YEAR RESULTS
PATRIMOINE ET COMMERCE PATRIMOINE ET COMMERCE: 2022 HALF-YEAR RESULTS 08-Sep-2022 / 08:00 CET/CEST Dissemination of a French Regulatory News, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
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PRESS RELEASE
2022 HALF-YEAR RESULTS
Paris, September 8, 2022
At its meeting on September 7, 2022, the Patrimoine & Commerce Supervisory Board reviewed the Company's operations and approved the 2022 half-year financial statements, prepared by Management.
-- Group share of net profit multiplied by two at EUR 28.4m
-- Net rental income growing by +6.6%
-- Funds from operations growing by +9.2%
-- Collection rate at 98% on rents and service charges
-- Portfolio valuation of EUR 856m
Key figures:
Key financials 30/06/2022 30/06/2021 Var. %
6 months 6 months
Net Rental Income EUR 21.1m EUR 19.8m +6.6%
Funds from operations EUR 14.1m EUR 12.9m +9.2%
Group share of net profit EUR 28.4m EUR 14.4m +96.9%
Alternative Performance Measures 30/06/2022 31/12/2021 Var. %
Asset appraisal value (excluding transfer taxes) (1) EUR 856.0m EUR 807.0m +6.1%
Capitalization rate (2) 7.0% 7.2% n.a
LTV ratio (3) 44.9% 45.2% n.a
NAV (excluding transfer taxes - EUR/share) EUR 27.3 EUR 26.7 +2.3%
NAV (excluding transfer taxes) EUR 409.0m EUR 400.2m +2.2%
Eric Duval, Managing Director and Founder of Patrimoine & Commerce declared: « Patrimoine & Commerce achieved good results over the first six months of 2022, on the operational side as well as on the financial side. This strong performance comes from the quality of the portfolio and our robust financial structure. The selective acquisitions made over the first half of 2022 will consolidate the position of Patrimoine & Commerce as the leader of low-cost retail park market players in France and contribute to the sustainable growth for our shareholders. »
Operational performance
Over the first half of 2022, Patrimoine & Commerce had a sustained leasing activity and signed 21 leases (of which 8 renewals). The financial occupancy rate improved at 94% (4). The collection rate on rents, service charges and taxes stands at 98% on the first quarter of 2022 and 97% on the second quarter (5).
Financial performance
Over the first half of 2022, Patrimoine & Commerce continued to deliver a solid financial performance.
As of June 30, 2022, Patrimoine & Commerce reported gross rents of EUR 23.0m, against EUR 21.7m as of June 30, 2021:
in millions of euros - 6 months 30/06/2022 30/06/2021 Var. % Like-for-like 20.8 20.1 +3.8% Acquisitions 1.5 - n.a Disposals 0.2 1.2 n.a Properties under restructuring 0.4 0.4 n.a Gross rental income 23.0 21.7 +6.0%
The increase of gross rental income is mainly driven by acquisitions and disposals completed over 2021 and 2022 (+EUR 0.6m), as well as contractual indexation, and the decrease in the amortization of Covid-19 rent free periods.
Net rental income is increasing by +6.6% between 2021 and 2022, with the gross to net ratio slightly improving (92% of gross rental income in 2022 vs. 91% in 2021), mainly composed of unrecovered rental expenses and provisions for credit losses:
in millions of euros - 6 months 30/06/2022 30/06/2021 Var. % Gross rental income * 23.0 21.7 +6.0% Entry fees 0.0 0.1 n.a. Gross rental revenue 23.0 21.8 +5.7% Unrecovered rental expenses (1.5) (1.6) (5.3%) Other building expenses (0.4) (0.4) n.a. Net rental income 21.1 19.8 +6.6% * incl. rental guarantees
Operating expenses and other revenues remained under control at EUR 2.7m (vs. EUR 2.5m in 2021). Current operational result reached EUR 18.4m as of June 30, 2022.
Net cost of debt amounted to EUR 4.4m as of June 30, 2022, decreasing by -1.9% compared to June 30, 2021. The Company has a low exposure to interest rate risk with 72% of fixed or variable rate debt hedged. The average interest rate on debt of 1.97% over the first half of 2022 (against 2.04% for the same period in 2021).
Recurring net result (FFO) amounted to EUR 14.1m as of June 30, 2022, against EUR 12.9m as of June 30, 2021:
in millions of euros - 6 months 30/06/2022 30/06/2021 Var. % Restated current operational result 18.8 17.6 +6.7% Restated net cost of debt (4.4) (4.5) (2.2%) Current taxes (0.3) (0.2) n.a. Funds from operations (FFO) (6) 14.1 12.9 +9.2% Diluted FFO per share 0.94 0.88 +6.9%
The external appraisal valuation campaign resulted in a fair value adjustment of +EUR 12.3m in the 2022 half-year accounts, reflecting mainly the indexation of rents.
Including the share of the result of companies accounted for using the equity method (+EUR 0.5m) and the fair value adjustment on financial instruments (+EUR 1.6m), the net profit amounted to EUR 28.1m as of June 30, 2022 and EUR 28.4m in group share, increasing by +96.9% compared to last year.
Decrease of the LTV ratio and increase of the NAV per share at EUR 27.3 (+2.3%)
The Group consolidated restated net debt of EUR 376.5m as of June 30, 2022, implies a Loan-to-Value ratio of 44.9%, leaving a significant investment capacity compared to the target of 50% set by Patrimoine & Commerce.
Besides, Patrimoine & Commerce enacted the extension of the EUR30.0m bond subscribed by Suravenir (initial terms of September 30, 2022 and September 30, 2023 respectively postponed to September 30, 2025 and September 30, 2026).
in millions of euros 30/06/2022 31/12/2021 Restated Net Debt 376.5 358.4 o/w cash and bank overdraft (53.9) (50.7) o/w deposits on real estate projects 0.0 (0.3) o/w financial instruments (0.3) 1.3 Net debt excl. Financial instruments 376.8 357.1 Property valuation (excl. Transfer taxes) 838.4 789.9 Loan To Value 44.9% 45.2%
Net asset value per share amounted to EUR 27.3 (EUR 409.0m) as of June 30, 2022, an increase of +2.3% versus 2021, despite the distribution of the dividend relative to 2021 fiscal year.
in millions of euros 30/06/2022 31/12/2021 NAV, excl. Transfer taxes 409.0 400.2 NAV per share, excl. Transfer taxes (in euros) 27.29 26.67 Number of shares (excl. Treasury shares) 14 986 880 15 006 681
Development and optimization of the portfolio
As of June 30, 2022, the portfolio valuation (excluding transfer taxes and including properties accounted for using the equity method), reached EUR 856.0m, increasing by +6.1% compared to December 31, 2021. The capitalization rate of the properties in operation stands at 7.0% (vs. 7.2% as of December 31, 2021).
in millions of euros Variation Net balance as of January 1, 2022 807.0 Acquisitions 57.5 Disposals (21.3) Fair value impact 12.7 Net balance as of June 30, 2022 856.0
Over the first six months of 2022, Patrimoine & Commerce continued its development through the acquisition of a retail property in Thonon-les-Bains (Auvergne-Rhône-Alpes), of a portfolio comprising five properties in Villefranche-de-Rouergue (Occitanie), Gonesse (Île-de-France), Tavers (Centre-Val de Loire), Avranches (Normandie) and Colomiers (Occitanie) and of a retail park in Saint-Paul-lès-Romans (Auvergne-Rhône-Alpes). Those investments totalled EUR 53.6m in 2022. Other investments were made on the existing portfolio, for a global amount of EUR 3.9m.
Patrimoine & Commerce also completed the disposal of several assets in Epagny (Auvergne-Rhône-Alpes), Vitrolles (Provence-Alpes-Côte d'Azur), Sarreguemines (Grand Est), and an office property in Guadeloupe for a total consideration of EUR 21.3m, in line with external appraisers' valuations.
ESG Commitment
Regardful ESG issues, with the willingness to go beyond the regulatory constraints of the Décret Tertiaire, Patrimoine & Commerce set up a 2021-2025 roadmap on the themes of environment, governance and social issues.
This roadmap is structured around key sub-themes (energy efficiency, biodiversity, carbon emissions, occupant comfort and well-being, circular economy, business ethics).
A ESG committee (composed of members of the Supervisory Board of Patrimoine & Commerce) has been set up to ensure the implementation of the roadmap.
Approval of the EUR 1.25 dividend per share
The Annual General Meeting held on June 16, 2022 approved the distribution of a dividend of EUR 1.25 per share, for a global amount of EUR 19.2m. The option for the payment in additional shares was proposed to the shareholders. Therefore, by decision of July 21, 2022, the Management noted the issue of 193,680 new shares at a value of EUR 16.78 each.
Agenda
October 6, 2022 Third-Quarter 2022 activity
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About Patrimoine & Commerce
Patrimoine & Commerce owns and operates a real estate portfolio, largely comprising retail property, covering a total surface area of more than 500,000 sqm. The assets are mainly located in retail parks near mid-sized towns throughout France. Patrimoine & Commerce benefits from a significant identified deal flow that will enable it to feed its growth, in terms of both assets under development and operating assets.
Notes: 1 Incl. Group share of Cherbourg and Studio Prod and assets held for sale.
2 Based on annualized rents (or market rental value for vacant spaces) and on property valuation excl. transfer taxes
3 Adjusted for security deposits and hedging instruments
4 Excluding strategic vacancy
5 After deduction of abatements granted
6 As of June 30, 2022, the current operational result and the net cost of debt are restated from operating expenses, other income and financial expenses of the real estate development activity (-EUR 0,4m)
Patrimoine & Commerce is listed on NYSE Euronext Paris.
ISIN code: FR0011027135 - Mnémo code: PAT
For further information, go to: www.patrimoine-commerce.com
For information, please contact:
PATRIMOINE & COMMERCE KEIMA Communication
Eric DUVAL
Emmanuel DOVERGNE
Managing Director
+33 (0)1 56 43 44 63
+33 (0)1 46 99 47 79
emmanuel.dovergne@keima.fr
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Regulatory filing PDF file File: 2022 HALF-YEAR RESULTS
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Language: English
Company: PATRIMOINE ET COMMERCE
45 avenue Georges Mandel
75016 PARIS
France
Phone: +33146994762
E-mail: contact@patrimoine-commerce.com
Internet: https://www.patrimoine-commerce.com/
ISIN: FR0011027135
Euronext Ticker: PAT
AMF Category: Inside information / News release on accounts, results
EQS News ID: 1437741
End of Announcement EQS News Service
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1437741 08-Sep-2022 CET/CEST
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