Rental income from Parisian Tertiary assets up 3.2%
Asset portfolio up 7.4% at the end of 2015: €1.7 billion, 90% in Paris
Continuation of the strategy of concentrating on Tertiary assets within the Parisian CBD
- Parisian Tertiary rental income up 3.2%
Rental income from Tertiary assets, representing 75% of total revenue income (72% in 2014), increase by €2 million.
This increase is compensated by the planned decrease of Residential and non-Parisian assets revenue income reflecting the selling off policy of these assets.
Total revenue income of TERREÏS was €70.7 million in 2015, down 1.7% compared to 2014.
|(in millions of euros)||2015||2014||Change %||2015||2014||Change %|
|Tertiary||66.7||66.8||-0.1 %||16.5||17.0||-2.9 %|
|o/w Parisian assets||53.1||51.5||+3.1 %||13.4||11.2||+1.7 %|
|Residential||3.9||5.1||-22.6 %||0.9||1.2||- 22.9 %|
|Total||70.7||71.9||-1.7 %||17.4||18.2||-4.2 %|
- Financial occupancy rate: 94.4% over Q4
For the full year, the financial occupancy rate of the Tertiary assets, which includes the technical vacancy of buildings under refurbishment, was 93.6%. Over the Q4, it stood at 94.4%, up 1.4 point compared to the low point of Q1 thanks to re-rental of 70 rue St Lazare (Paris 9) and 198 bis rue Lafayette (Paris 10) during Q3. Re-rental of 19 rue Galilée (Paris 8) was effective on 1st December 2015.
- Assets of €1.7 billion at 31 December 2015: up 7.4% and 90% in Paris
The prevailing conditions on the prime Parisian market over the past 18 months (declining rate of return, higher price per sq. m.) are the main reason for the 7.4% increase in TERREÏS' assets value, from €1.59 billion at the end of 2014 to €1.71 billion at the end of 2015.
As announced, TERREÏS concentrated on continuing the sale of its residential and regional assets.
Nevertheless, opportunistic and small acquisitions were made, mainly in Paris CBD. The €118.2 million increase of asset value in 2015 breaks down as follows:
- Acquisitions during the year (including duties) and Capex: + €54.7 million
In 2015, TERREÏS reinforced its Paris Tertiary portfolio with the acquisition of three office buildings at 1 Cité Paradis (Paris 10e), 10 rue Chaptal (Paris 9e) and at 44 rue Copernic (Paris 16e). Altogether, its represents 5,211 sq. m. of offices for €37.6 million (including duties), with an expected yield of 5.6%. TERREÏS also performed renovation and improvement work on its properties for € 17.1 million.
- Sales during the year: €58.8 million (for an appraisal value of €52.3m)
TERREÏS has pursued its monetization strategy by selling Residential assets for €42.3 million and Tertiary assets for €16.5 million of in Paris area and in the regions.
Disposals were made at prices above the appraisal value and in accordance with the planned program.
As of December 31st, 2015, €7.8 million of additional sales promises had been signed. They will be acted over the next few months. They consist in Parisian residential assets.
- Revaluation of assets : + €115.8 million, mainly due to decreasing yields in Paris
At the end of 2015, the assets of TERREÏS were composed of 90% of Parisian assets, 8% in the Paris area and 2% in the regions.
- Outlook: continuation of the strategy of concentrating on Tertiary within the Parisian CBD
The goal of TERREÏS is to increase its Parisian tertiary portfolio and to focus on the Paris CBD. In the current prime Parisian market conditions, while remaining attentive to opportunities that may arise, TERREÏS will concentrate on the disposal of its non-strategic assets under the best conditions (residential, regional and Paris area).
Next publication: results for the 2015 financial year, March 9, 2016
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 NYSE 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.
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