- Growth in recurring operations (excluding property dealings): 12.8%
- 2.9% decline in rental income on a constant group structure basis
- Strong growth in management fees: up 130%
Revenues (€ thousands) | HY1 2011 | HY1 2010 | % Change | FY 2010 |
Rent and costs recovered | 10,707 | 11,126 | (3.8%) | 22,969 |
residential | 1,563 | 1,538 | 1.6% | 3,159 |
commercial | 9,144 | 9,588 | (4.6%) | 19,810 |
Management fees | 3,608 | 1,566 | 130.4% | 4,140 |
Total recurring activities | 14,315 | 12,692 | 12.8% | 27,109 |
Property dealings | 0 | 900 | ns | 946 |
Consolidated IFRS revenue | 14,315 | 13,592 | 5.3% | 28,055 |
Moderate decline in rental income
- Rent (and costs recovered) for the first half of 2011 represented € 10.71 million, which was a decrease of 2.9% on a like-for-like basis (compared to 3.8% as reported). Movements related to changes in group structure accounted for a decline of € 94 thousand and were due to:
- an increase in rent (and costs recovered) of € 443 thousand, related to the change in the consolidation scope resulting from the contribution to SCPI Interpierre (implemented on 1 July 2010), and
- the sale of buildings, as confirmed in the press release dated 5 May 2011 (building of the Parmentier private hospital and Rivoli and Roule buildings), which resulted in a reduction of € 537 thousand in rent (and costs recovered).
- The occupancy rate was 89% at 30 June 2011, unchanged compared to 31 March but down one percentage point compared to the end of 2010; this change was primarily due to the effect of arbitrations and tenants vacating smaller premises in Clichy and Vitry.
Management on behalf of third parties: increased momentum for the trend initiated in 2010
- SCPI
During the first six months of the 2011 FINANCIAL year, the various SCPIs management by PAREF GESTION collected a total of almost € 35 million (note that excluding the contribution to SCPI Interpierre, for the full 2010 financial year a total of € 31.3 million was collected). The subscription fees of SCPI Novapierre (stores) and Pierre 48 (residential property in Paris and the Paris region) represented € 1.66 million and € 0.45 million, respectively. Furthermore, management fees on current subscriptions grew by 8.3% on a like-for-like basis, owing to strong collections since the second half of 2010.
- OPCIs
The management of OPCIs (Vivapierre, Naos and Polypierre) also generated recurring fees of € 274 thousand, an increase of 14% compared to the 1st half of 2010.
The environment is favourable for the launch of new investment vehicles, in particular in making use of the SIIC regime.
New development: Acquisition of Watford
Following the announcement MADE in its quarterly report dated 5 May 2011, on 7 July 2011 PAREF finalised the full acquisition of Watford Eurl from its own resources. The purpose of this transaction is to own a building site located in Nanterre (92), which benefits from an 11,000 m2 planning permission, free and clear of any appeal. This acquisition enables PAREF to give a new impetus to its investment policy, with the planned construction of a HQE/BBC (High Environmental Quality) office building.
Shareholders’ agenda:
Publication of half year results 9 September 2011 before start of trading and presentation meeting at 11.30am.
About Paref
PAREF Group operates in two major complementary areas:
- Commercial and residential investments: PAREF owns various commercial buildings in and out of the Paris region. The Group also owns the temporary usufruct of residential properties in Paris.
- Management on behalf of third parties: PAREF Gestion, an AMF-certified subsidiary of PAREF manages 3 SCPIs and 3 OPCIs.
At 30 June 2011, PAREF Group managed a property portfolio of € 677 million, of which € 525 million managed on behalf of third parties.
PAREF shares have been listed on Eurolist Compartment C of the Euronext Paris Stock Exchange since December 2005
ISIN code: FR00110263202 - Ticker: PAR
PAREF | CITIGATE DEWE ROGERSON |
Alain PERROLLAZ Chairman of the Management Board Pascal KOSKAS Member of the Management Board Tel: +33 (0)1 40 29 86 86 |
Agnès VILLERET Analyst – Investor Relations Lucie LARGUIER Financial Press Relations Tel.: +33 (0)1 53 32 78 89 / 95 agnes.villeret@citigate.fr / lucie.larguier@citigate.fr |
For further information, please visit the PAREF Group website: www.paref.com