FINANCIAL INFORMATION FOR THE 1st QUARTER 2018
- Total rental income: € 17.0 million (+6.8 %)
- The strategy of focusing on Paris CBD is demonstrably working: over the 1st quarter of 2018, increase of 8.3 % in rental income from Paris Offices (94 % of total rental income) exceeds the decrease in rental income from non-strategic assets (Residential and offices outside Paris)
- TERREÏS asset portfolio fully rent (EPRA vacancy rate: 0.6 %)
- Rental income from Parisian assets accounts for 94 % of total rental income
Rental income from offices in Paris grew by 8.3 % over Q1 2018. The increase is mainly due to a favorable rental momentum. On a like-for-like basis, rental income is up 4.9 % thanks to the increase in rental value on several assets taking advantage of relocation and of a + 1.4 % positive indexation.
| Rental income (€m) | Q1 2018 | Q1 2017 | Total change | Like-for-like | ||||
| €m | % | €m | % | €m | % | €m | % | |
| Offices in Paris | 15.9 | 94% | 14.7 | 92% | + 1.2 | 8.3% | + 0.7 | 4.9% |
| Other assets | 1.1 | 6% | 1.2 | 8% | - 0.1 | -12.2% | - 0.1 | -4.1% |
| Offices outside Paris | 0.3 | 0.4 | ||||||
| Residential | 0.8 | 0.8 | ||||||
| Total | 17.0 | 100% | 15.9 | 100% | + 1.1 | 6.8% | + 0.7 | 4.2% |
EPRA vacancy rate (excluding properties under renovation) improved by 0.1 point, from 0.7 % at the end of December 2017 down to 0.6 % at the end of March 2018. It was 3.3 % at the end of March 2017. Financial occupation rate reached 98.7 % at 31 March 2018.
Residual vacancy was mainly due to refurbishing works before relocation on office buildings recently acquired rue de Milan (relocated from 1 October 2018) and avenue de Messine.
- Change in portfolio / rent
TERREÏS obtained a building permit for a 739 sq.m. offices surface on the fifth floor of 7 impasse du Docteur Bertillon (Paris 8e). Premises will be put on rent after 18 months works.
TERREÏS created a groundfloor shop space in a building at 10 rue de la Paix (Paris 2e). The shop has been rented to a leading brand specialised in luxury products.
Both should generate approximately € 800 k of additional rental revenue on a full-year basis.
- Outlook: continued focus on business property in the Paris CBD
TERREÏS focuses on offices in Paris, and particularly in Paris CBD where targeted acquisitions will be made according to opportunities that may arise.
The dynamic of parisian rental market allows to consider a growth of rental income over the five years to come.
- € 0.81 per share dividend (+ 2.5 %)
The Board of Directors will propose to the General Meeting of Shareholders on 4 May 2018 the distribution of a dividend of € 0.81 per share, an increase of 2.5 % on 2016 dividend.
As an interim dividend of € 0.40 per share was paid last November, the balance of € 0.41 per share will be paid on 17 May 2018.
2018 Interim Results to be released on 26 July 2018.
Contact: Fabrice Paget-Domet, Chief Executive Officer - Tel: +33 (0)1 82 00 95 23
About Terreïs (www.terreis.fr) - ISIN Codes: FR0010407049 - Ticker symbol: TER
TERREÏS is a real estate company where the assets consist of offices and retail premises that are primarily located in Paris. TERREÏS has been listed on the Euronext regulated market in Paris since December 2006, and has been included in Compartment B since January 2012. The Group has opted for the status of listed property investment company (“SIIC”) since 1 January 2007. The TERREÏS share was admitted to the Deferred Settlement Service (SRD) on December 27, 2017.
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