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  PAREF company press release from 19/02/2020

  19/02/2020 - 18:00

PAREF - 2019 Full-Year results


2019 FULL-YEAR RESULTS
Acceleration in internationalization and institutionalization of PAREF Group

Solid financial indicators showing strong growth

  • Net result of €13.5 Mn vs. €11.8 Mn in 2018 (+14%)
  • Net commissions of €14 Mn vs. €13 Mn in 2018 (+7%)
  • EPRA Triple net NAV at €108.0 per share (+9%)
  • Loan to value[1] at 28% following the acquisition of floors in Franklin Tower

Asset under management reaching €2.2 Bn (+37%)

  • €1,987 Mn managed on behalf of third parties mainly through SCPI[2] and OCPI[3], thanks to a gross subscription amounting to €267 Mn in 2019 vs. €236 Mn in 2018 (+13%)
  • €197 Mn of owned assets (+42%)

Proposed distribution of €4.00 per share for the fiscal year 2019 to be paid in cash or in shares, for approval by the Annual General Meeting to be held on April 28, 2020.

The management board of PAREF, during the board meeting held on February 19, 2020, approved the closing of the annual statutory and consolidated accounts as at December 31, 2019. The review of results by auditors is in progress.

“PAREF Group took major steps forward in 2019 with the perspective of innovation and internationalization. Now present in two new countries (Italy and Switzerland), the Group has also launched two new SCPI to invest abroad and is now managing a major project in Milan on behalf of an institutional investor. In addition, following the refinancing of the Group finalized early 2019 and the disposals completed, PAREF succeeded in redeploying its capital with the acquisition of floors in Franklin Tower (La Défense, Paris).

Building on these successes and a reinforced and committed team, PAREF Group shows once again a strong growth in its financial results and has been equipped with necessary elements to accelerate its development.”

Antoine Onfray - Deputy CEO

“Our “Invest To Manage” strategy represents an exciting new growth stage in PAREF's journey and we begin to witness the fruits of the huge efforts over the last year. With the energy of the new management team, PAREF was an active and expanding group in 2019, strengthening its market position in France and Germany and opening new businesses in Italy, which are great examples of our strategy. I think it's fair to say PAREF is now an established and successful Group that underpins the future growth of our wider platform. We are fast in building a reputation as a manager for potential capital partners who consider European real estate exposure an attractive investment proposition. I would like to thank all of PAREF's employees who have worked intensively and to my fellow Directors for their support and counsel during the year.”

Antoine Castro - CEO

I - Real-estate activity (PAREF SA)

During 2019, PAREF has continued its strategy to rotate its portfolio in order to reposition it on larger assets mainly located in Grand Paris region.

The group has:

  • Disposed 5 assets, including Bondy, Cauffry, Dammartin-En-Goële, Elancourt and Emerainville, for a total net disposal price of €19.4 Mn, representing a 19% premium over last appraisal;
  • Signed 4 promises of sale on Thyez, Meythet, Saint-Etienne and Trappes. Closings are expected to take place in the course of the first semester 2020;
  • Launched the redevelopment project “The Go” for the office asset located in Levallois-Perret (Grand Paris), of which the building permit was obtained in June 2019. Construction works are on-going and this asset will develop more than 6,000 sqm and offer a best-in-class positioning both in terms of user experience and environmental standards. The Group intends to obtain BREEAM and HQE certifications. The delivery is expected in Q3-2021;
  • Deployed its capital following the refinancing of the Group with the acquisition of 6 floors in the upper part of Franklin Tower. Representing a total surface of ca. 12,360 sqm, these floors are rented to prime tenants and benefit from high visibility and excellent accessibility to transport.

Thanks to a dynamic leasing activity and portfolio rotation:

  • The financial occupancy rate of owned assets increased to 86.2% vs. 82.8% as at December 31, 2018[4]. The residual vacancy is limited mainly to Gaïa office and a half floor in Franklin Tower;
  • The weighted average lease term on owned asset portfolio stands at 4.8 years at the end of 2019, stable vs. 2018. The expiry schedule stands as follows as at December 31, 2019:

PAREF Group portfolio valuation[5] stands at €197 Mn as of December 31, 2019, increased by 42% compared to December 31, 2018, of which €185 Mn of real-estate assets (including the stake in Gaïa office) and €12 Mn of financial assets invested in funds managed by the Group.

Key indicators on owned assets[6] 2018 2019
Number of assets 20 16
Total lettable area 129,069 sqm 111,074 sqm
Financial occupancy rate 82.8% 86.2%
Valuation  €127 Mn  €185 Mn

[7]

Net rental income from PAREF's owned assets stands at €6.6 Mn in 2019, showing a slight decrease compared to 2018 (-2%) due to (i) the impact of assets disposed in 2018 and first half of 2019, (ii) tenant evictions in the asset located in Levallois-Perret as part of the “The Go” redevelopment project, and (iii) partially compensated by a positive evolution in rental income on a like-for-like basis and rents from the floors of Franklin Tower acquired on September 30, 2019.

On a like-for-like basis, rental income increased by 4.8% thanks to the commercialization and the positive impact of the lease renegotiation on the assets located in Dax and Saint-Paul-Lès-Dax in 2018.

Rental income on owned assets (in k€) 2018 2019 Variation in %
Gross rental income 7,512 6,964 -7%
Non-recoverable rental expenses -851 -566 -33%
Other income 102 218 2.1x
Total net rental income 6,763 6,616 -2%

The gross initial yield on owned assets stands at 7.0% compared to 6.9% at the end of 2018[8].

II - Management activity on behalf of third parties (PAREF Gestion and PAREF Investment Management)

PAREF Gestion

In 2019, PAREF Gestion's activity was highlighted by the launch of two new SCPI, of which the strategies and geographies of investments demonstrate the strong drive for innovation and internationalization of the Group:

  • Novapierre Allemagne 2, a SCPI launched in September 2019, invests in retail real estate assets in Germany and has already witnessed commercial success with subscription of €76 Mn in 2019;
  • Novapierre Italie is a SCPI investing in tourism real estate properties in Italy. This fund obtained the AMF license at the end of 2019 and opened for subscriptions mid-January 2020. This innovative strategy is a first among all existing SCPI and aims to capture opportunities from the dynamic Italian tourism market.

Subscription and portfolio under management

Gross subscription on SCPI funds managed by PAREF Gestion reached €267 Mn in 2019, growing by 13% compared to 2018. This performance is contributed in particular by the SCPI Novapierre Allemagne, Novapierre Allemagne 2, Interpierre France and Novapierre 1. The ratio of gross-to-net subscription stands at 85% in 2019, showing the confidence of investors in the products offered by the Group and the quality of management.

Asset under management reached €1,611 Mn as of December 31, 2019, increased by 22% on a like-for-like basis (+11% compared to December 31, 2018 due to the withdraw of the management of a OPPCI dedicated to hotels in the second half of 2019, representing €142 Mn of AuM at the end of 2018).

Breakdown of the funds managed by PAREF Gestion as at December 31, 2019:

Type Funds Strategy Assets under Management
(€ Mn)
Dec 31, 2018
Assets under Management
(€ Mn)
Dec 31, 2019
Variation in %
SCPI Novapierre Allemagne [9] Retail 471 543 15%
Novapierre Résidentiel [10] Residential 280 286 2%
Novapierre 1 9 Retail 161 254 58%
Interpierre France 9 Office/Logistic 105 153 46%
Novapierre Allemagne 2 9 Retail - 70 n.a.
Capiforce Pierre 10 Diversified 59 62 6%
Atlantique Pierre 1 10 Diversified 60 57 -5%
Cifocoma 1 10 Retail 24 25 2%
Cifocoma 2 10 Retail 25 25 -1%
  Novapierre Italie 9 Tourism - 3 n.a.
Sub-total SCPI   1,186 1,477 25%
OPCI Vivapierre   94 92 -3%
OPPCI dedicated to hotels Hotel 142 0 -100%
Sub-total OPCI   236 92 -61%
Other AIF   35 42 18%
Total     1,457 1,611 11%

Breakdown of the 2019 gross subscription:

Type Funds Gross subscription
in 2018
(€ Mn)
Gross subscription
in 2019
(€ Mn)
Variation in %
SCPI Novapierre Allemagne 176 84 -52%
Novapierre Allemagne 2 - 76 n.a.
Interpierre France 54 52 -4%
Novapierre 1 4 47 12x
Novapierre Résidentiel 3 6 2x
Novapierre Italie - 3 n.a.
Total   236 267 13%

Commissions

With sustained subscriptions and growing asset under management, management and subscription commissions increased significantly in 2019, reaching €9.7 Mn (+46%) and €23.7 Mn (+12%) respectively.

Commissions (in €k) 2018 2019 Variation en %
Management commissions 6,620 9,650 46%
Subscription commissions 21,182 23,708 12%
Retro-commissions -14,652 -19,312 32%
Net commissions 13,150 14,045 7%

The increase in the rate of retro-commissions in 2019 is mainly explained by the retro-commission of the subscription commissions to the investor partners who subscribed in the SCPI Novapierre 1 for an important acquisition of assets for a total amount of €94 Mn in May 2019.

PAREF Investment Management

At the end of 2018, the Group created "PAREF Investment Management" structure to offer all investment property related services for institutional investors in France and in Europe.

PAREF Investment Management offers expertise in the entire real estate value chain: investment, asset management, property management, development, restructuring, finance, legal, financial control, reporting, marketing and communication.

Initially in France, PAREF Investment Management rapidly developed internationally in 2019 and now has an office in Switzerland (Zurich) and in Italy (Milan) following the acquisition in August 2019 of a real estate management platform from Fosun group.

Through this acquisition, the Group took over the management of the redevelopment project "The Medelan", a building located in the historic city center of Milan on behalf of the insurance company Fidelidade. This mixed-use asset develops ca. 55,000 sqm and will offer the best market standards, particularly from an environmental point of view, with an expected Leed Platinium certificate.

Human Ressources

PAREF Group succeeded in bringing new talents and experimented managers on-board in 2019. In particular, Anne Schwartz has been nominated Managing Director of PAREF Gestion (subsidiary of PAREF Group) in June 2019 and Anne Gillet-Feillon joined in November 2019 as Group Head of Real Estate. Reinforced by these strong experimented profiles in the real estate industry, the Group will further accelerate the implementation of its strategy.

III – 2019 Results

Consolidated P&L

Detailed consolidated P&L (in €k) 2018 2019 Variation in %
Gross rental income 7,512  6,964 -7%
-Reinvoiced rental expenses, taxes and insurance 2,735 2,791 2%
-Rental expenses, taxes and insurance -3,587 -3,358 -6%
Non-recoverable rental expenses -851 -566 -33%
Other income 102 218 2x
Net rental income 6,763 6,616 -2%
Revenues on commissions 27,802 33,358 20%
-of which management commissions 6,620 9,650 46%
-of which subscription commissions 21,182 23,708 12%
Retro-commissions -14,652 -19,312 32%
Net revenues on commissions 13,150 14,045 7%
General expenses -9,108 -11,415 25%
Depreciation and amortization -415 -428 3%
Current operating result 10,390 8,818 -15%
Variation of fair value on investment properties 5,843  3,241 -45%
Result on disposals of investment properties 216  2,744 13x
Operating result 16,449 14,803 -10%
Financial products 90 67 -25%
Financial expenses -2,080 -2,063 -1%
Net financial expenses -1,989 -1,996 0,3%
Other expenses and incomes on financial assets 247 319 29%
Fair-value adjustments of financial instruments 397 294 -26%
Result on disposal of shares in companies consolidated under Equity method 595 - -100%
Results of companies consolidated under the equity-method -1,818 1,579 n.a.
Result before tax 13,880  15,000 8%
Income tax -2,077 -1,526 -27%
Net result 11,803 13,474 14%
Non-controlling interests - - -
Net result (owners of the parent) 11,803 13,474 14%
Average number of shares (non-diluted) 1,379,932 1,440,919  
Net result / share (owners of the parent) 8.55 9.35 9%
Average number of shares (diluted) 1,384,022 1,446,847  
Net result / share (owners of the parent diluted) 8.53 9.31 9%

PAREF Group net results stands at €13.5 Mn in 2019, increasing by 14% compared to 2018:

  • Net rental income stands at €6.6 Mn, slightly decreasing by 2% compared to 2018, due to the disposals in 2018 and 2019 and tenants' departures in the asset located in Levallois-Perret in view of “The Go” restructuring project, partially compensated by active asset management and the acquisition of part of the Franklin Tower;
  • Net commissions increase by 7% thanks to the growth in subscriptions and the amount of assets managed on behalf of third parties;
  • General expenses amounted to €11.4 Mn, increasing by 25% vs. 2018, mainly explained by the reinforcement of the French and management team, the integration of the Italian platform, as well as by the investment in IT system and communication;
  • Variation of fair value in investment properties stands at €3.2 Mn in 2019 mainly on “The Go” located in Levallois-Perret and Dax and Saint-Paul-Lès-Dax assets;
  • Net financial expenses stand at €2.0 Mn in 2019 (of which early repayment costs on existing debts for €0.5 Mn) versus €2.0 Mn in 2018. Thanks to the refinancing of the Group in February 2019, financial expenses remains stable despite a substantial increase in drawn debt and in the investment capacity of the Group with a committed credit line;
  • Results of companies consolidated under the equity-method improved to €1.6 Mn mainly thanks to the positive impact of the renegotiation of leases on assets held in the Vivapierre fund and the start of new leases signed on the Gaïa office.

IV - Financial resources

The Group signed on February 21, 2019 the refinancing of the Group's debt[11] by putting in place a corporate financing for a total amount of €100 Mn. This financing consists of €30 Mn drawn loan[12] and €70 Mn committed credit line. The maturity is 5 years and the margin 145 bps above the 3-month Euribor.

The total amount of gross financial debt stands at €78 Mn as at December 31, 2019 (€35 Mn as at December 31, 2018) following the acquisition of floors in Franklin Tower and the early repayment and amortization of existing debts.

The average cost of the drawn debt decreased to 2.2% as at December 31, 2019 from 3.6% as at December 31, 2018, with an average maturity of 4.4 years compared to 3.9 years at the end of 2018.

The Group implemented a conservative policy to manage interest rate risk, with ca. 90% of the debt issued at a fixed rate or covered by hedging instruments at the end of 2019, limiting its sensitivity to interest rate fluctuations.

Financial ratios are robust with a loan-to-value (LTV[13]) and an interest coverage ratio (ICR[14]) of 28% and 7.8x respectively (compared to 4% and 7.0x respectively end 2018).

The Group respects the financial covenants on its bank loans, of which mainly:

  • LTV < 50%
  • ICR > 2.5x

Debt repayment schedule:

The Group has an amount of cash and cash equivalent of €16 Mn as at December 31, 2019, largely covering more than 12 months of debt repayment and the regulatory minimum capital requirement of PAREF Gestion.

V - Assets under Management

In k€ 2018 2019 Variation in %
PAREF owned assets 111,070 167,450 51%
PAREF participations[15] 27,217 29,322 9%
Total PAREF portfolio 138,287 196,772 42%
SCPI      
  • Novapierre Allemagne
471,263 543,273 15%
  • Novapierre Résidentiel
280,317 285,639 2%
  • Novapierre 1
161,245 254,027 58%
  • Interpierre France
105,034 153,559 46%
  • Novapierre Allemagne 2
  70,047 n.a.
  • Capiforce Pierre
60,206 61,879 6%
  • Atlantique Pierre 1
58,607 57,051 -5%
  • Cifocoma 2
24,996 24,558 2%
  • Cifocoma 1
24,014 24,801 -1%
  • Novapierre Italie
  2,620 n.a.
Sub-total SCPI 1,185,682 1,477,456 25%
OPCI      
  • Vivapierre
94,230 91,780 -3%
  • OPPCI dedicated to hotels
141,910 - -100%
Sub-total OPPCI 236,140 91,780 -61%
Other assets managed on behalf of third parties (1) 35,300 417,380 12x
Total Assets under Management by PAREF Gestion 1,457,122 1,986,616 36%
Retreatments (2) -9,909 -10,762 9%
TOTAL 1,585,567 2,172,626 37%

(1) Including Foncière Sélection Régions and The Medelan asset

(2) Part of PAREF portfolio is managed through OPPCI (Vivapierre) by PAREF Gestion

PAREF's owned portfolio stands at €167 Mn (excluding le Gaïa office), increased by €56 Mn compared to 2018, mainly explained by:

  • Disposals of €16.3 Mn (valuation as at December 31, 2018);
  • Capitalized expenses of €2.7 Mn in 2019;
  • Acquisitions for €66.8 Mn, and
  • Increase in fair value of investment properties of €3.2 Mn.

The like-for-like change in fair value amounted to €4.0 Mn in 2019 (excluding le Gaïa office), representing an increase of +4.2% over one year. Including the Gaïa office, the like-for-like change in fair value reached €5.1 Mn, an increase of +4.6%.

The average gross initial yield on PAREF's owned assets stands at 7.0% vs. 6.9% at the end of 2018 (excluding Le Gaïa office).

VI – EPRA Net Asset Value

PAREF Group EPRA triple net asset value (NNNAV) stands at €108.0 per share as at December 31, 2019, increasing by €8.8 per share (+9% versus end 2018). The evolution is mainly explained by 2019 net results for +€9.3/share, the positive variation of fair values and the valuation of PAREF Gestion for +€3.5/share, and the dividend payment for -€3.85/share.

EPRA NNNAV is based on consolidated equity under IFRS rules (including fair value of assets) and financial instruments and debt at fair-value.

  Dec 31, 2018 Dec 31, 2019 Variation in %
NAV per the financial statements 124.8  132.5  6%
Fair value of financial instruments 0.5 0.4 -19%
Revaluation of intangible and operating assets (PAREF Gestion)[16] 19.5 24.5 26%
Other - - n.a.
EPRA NAV (in €M) 144.8 157.4 9%
EPRA NAV per share (in €) 100.3 109.0 9%
Fair value of financial instruments -0.5 -0.4 -19%
Fair value of debt -0.6 -0.3 -45%
Deferred taxes -0.5 -0.7 34%
EPRA NNNAV (in M€) 143.1 155.9 9%
EPRA NNNAV per share (in €) 99.1 108.0 9%
Deferred taxes 0.5 0.7 34%
Estimated transfer taxes 9.2 12.8 40%
Going concern NAV (in M€) 152.9 169.4 11%
Going concern NAV / per share (in €) 105.9 117.3 11%

VII – Post-closing events

The Group signed in February 2020 a new lease on the Gaïa office for a total area of 1,751 sqm, with a 9-year firm period. Following this signature, the occupation rate of the Gaïa stands at 64%.

VIII – Strategy and perspectives

PAREF Group continues to accelerate its development based on 3 main pillars:

  • A progressive growth of PAREF real estate portfolio with a proactive management: asset management of the existing portfolio, asset rotation and selective investments, for a repositioning on large assets located in Grand Paris area;
  • A rational development of the management activity for individual investors through (i) an increase in assets under management on existing products and (ii) the creation of new products;
  •  An acceleration of management activity for institutional investors in France and continental Europe, notably thanks to the new entity PAREF Investment Management created in late 2018.

In this context, the Group maintains its distribution policy representing between 65% and 75% of the recurring result over the next year.

IX – Other EPRA indicators

  • EPRA Earnings
In k€ Dec 31, 2018 Dec 31, 2019 Variation in %
Earnings per IFRS income statement 11,803 13,474 14%
Adjustments      
  1. Change in fair-value of investment properties
-5,843 -3,241 -45%
  1. Profits or losses on disposal of investment properties and other interests
-216 -2,744 13x
  1. Profits or losses on disposal of financial assets available for sale
-595 - -100%
  1. Tax on profits or losses on disposals
- -  
  1. Negative goodwill / goodwill impairment
- -  
  1. Changes in fair value of financial instruments and associated close-out costs
-398 179 n.a.
  1. Acquisition costs on share deals and non-controlling joint-venture
- -  
  1. Deferred tax in respect of the adjustments above
- -  
  1. Adjustments (i) to (viii) above in respect of companies consolidated under equity method
3,383 -433  n.a.
  1. Non-controlling interests in respect of the above
- -  
EPRA Earnings 8,136 7,235 -11%
Average number of shares (diluted) 1,379,932 1,440,919  
EPRA Earnings per share (diluted) 5.90€ 5.02€ -15%
  • EPRA Vacancy rate
In k€ Dec 31, 2018 Dec 31, 2019 Variation in %
Estimated rental value of vacant space (1) 1,650 1,420  
Estimated rental value of the whole portfolio (1) 9,580 10,824  
EPRA Vacancy Rate 17.2% 13.1% -4.1pts
  1. Including the participation in Gaïa office, excluding shares in SCPI Vivapierre. Excluding Gaïa, EPRA vacancy rate stands at 7.7% as at December 31, 2019 vs. 8.1% as at December 31, 2018.
  • EPRA Net Initial Yield (NIY) and ‘topped-up' NIY
In % Dec 31, 2018 Dec 31, 2019 Variation in %
PAREF Net yield 6.29% 6.15% -0,13pts
 Impact of estimated duties and costs -0.4% -0.4% -0,08pts
 Impact of changes in scope 0.2% -0.1% -0,30pts
EPRA Net initial yield (1) 6.10% 5.59% -0,51pts
 Excluding lease incentives 0.3% 0.2% -0,05pts
EPRA “Topped-Up” Net initial yield (2) 6.38% 5.82% -0,56pts
  1. The EPRA Net Initial Yield rate is defined as the annualized rental income, net of property operation expenses, after deducting rent adjustments, divided by the value of the portfolio, including duties.
  2. The EPRA ‘Topped-up' Net Initial Yield rate is defined as the annualized rental income, net of property operating expenses, excluding lease incentives, divided by the value of the portfolio, including taxes.
  • EPRA cost ratios

The ratio below is computed based on PAREF Group owned assets perimeter (including companies consolidated under the equity method).

In k€ Dec 31, 2018 Dec 31, 2019 Variation in %
Include:      
  1. General expenses
-1,968 -1,690 -14%
  1. Costs related to properties
-222 -169 -24%
  1. Net service charge costs/fees
-3,365 -3,189 -5%
  1. Management fees less actual/estimated profit element
0 - n.a.
  1. Other operating income/recharges intended to cover overhead expenses
0 - n.a.
  1. Share of general expenses of companies consolidated under equity method
-341 -567 66%
Exclude:      
  1. Depreciation and amortization
     
  1. Ground rent costs
1,266 1,732 37%
  1. Service charge costs recovered through rents but not separately invoiced
1,469 1,059 -28%
EPRA Costs (including direct vacancy costs) (A) -3,161 - 2,823 -11%
  1. Less: Direct vacancy costs (unrecoverable rent costs)
479 568 19%
EPRA Costs (excluding direct vacancy costs) (B) -2,682 -2,255 -16%
  1. Gross Rental Income less ground rent costs
8,778 8,651 -1%
  1. Less: service charge costs included in Gross Rental Income
-1,266 -2,084 65%
  1. Add: share of Gross Rental Income less ground rent costs of companies consolidated under equity method
3,159 2,026 -36%
Gross Rental Income 10,671 8,593 -19%
EPRA Cost Ratio (including direct vacancy costs) (A/C) 29.6% 32.9% +3 pts
EPRA Cost Ratio (excluding direct vacancy costs) (B/C) 25.1% 27.3% +1 pts
  • Capital expenditure
En k€ Dec 31, 2018 Dec 31, 2019
Acquisition - 66,812
Développement (1) - 1,441
Portefeuille à périmètre constant (2) 82 713
Autres (3) - 820
Total 82 69,786
  1. In 2019, including investment related to “The Go” project of the asset located in Levallois-Perret
  2. In 2018, including mainly investment on resort complex in Dax
  3. Including eviction indemnities, rent adjustments and capitalized financial costs relating to "The Go" project
Balance Sheet - Assets (in €k) Dec 31, 2018 Dec 31, 2019
Non-current assets    
Investment properties 110,370 162,950
Intangible assets 76 339
Other property, plant and equipment 482 2,612
Financial assets 11,073 10,662
Shares and investments in companies under the equity method 9,910 13,664
Financial assets 1,007 1,160
Deferred tax assets   15
Total non-current assets 132,918 191,405
Current assets    
Stocks - -
Trade receivables and related 10,372 16,807
Other receivables 147 98
Financial instruments - -
Cash & cash equivalents 28,437 16,357
Total current assets 38,956 33,262
Properties and shares held for sale 700 4,750
TOTAL ASSET 172,574 229,414
     
Balance Sheet - Liabilities (in €k) Dec 31, 2018 Dec 31, 2019
Equity    
Share capital 36,040 36,106
Additional paid-in capital 39,922 39,983
Fair-value through equity 45 59
Fair-value evolution of financial instruments -230 -407
Consolidated reserved 37,247 43,246
Consolidated net result 11,803 13,474
Shareholder equity – owners of the parent 124,827 132,459
Minority interest - -
Total Equity 124,827 132,459
Liability    
Non-current liabilities    
Non-current financial debt 29,226 78,473
Non-current taxes due & other employee-related liabilities 117 55
Non-current provisions 587 260
Total non-current liabilities 29,931 78,788
Current liabilities    
Current financial debt 5,541 1,096
Current financial instruments 540 407
Trade payables and related 4,519 7,111
Current taxes due & other employee-related liabilities 5,293 7,095
Other current liabilities 1,924 2,457
Total current liabilities 17,817 18,167
TOTAL LIABILITIES 172,574 229,414

 

CASH-FLOW STATEMENT (in €k) Dec 31, 2018 Dec 31, 2019
Operating cash-flow    
Net result 11,803 13,474
Net Depreciation and amortization 415 105
Valuation movements on assets -5,843 -3,241
Valuation movements on financial instruments -398 -309
Valuation on financial assets held for sale 1 15
Tax 2,077 1,526
Result on disposals -810 -2,744
Results of companies consolidated under the equity method 1,818 -1,579
Cash-flow from operating activities before net financial items and taxes 9,063 7,246
Net financial expenses 1,989 1,996
Tax paid -1,694 -2,966
Cash-flow from operating activities after net financial items and taxes 9,359 6,276
Variations in working capital -25 -614
Net cash-flow from operating activities 9,333 5,662
Investment cash-flow    
Acquisition of tangible assets -38 -69,865
Acquisition of other assets -500 11
Assets disposal 2,126 19,400
Acquisition of financial assets -2,426 -2,231
Financial assets disposal - -
Financial products received 466 67
Change in perimeter 9,450 583
Cash-flow from investments 9,077 -52,034
Financing cash-flow    
Self-detention shares 553 13
Variation in capital 16,435 126
Variation in bank loans - 70,000
Variation in other financial debt -8 -
Repayment of financial lease 0 -2,927
Repayment of bank loan -9,998 -24,276
Costs of loan issuance - -1,224
Variation on bank overdraft -571 -101
Financial expenses paid -2,092 -1,768
Dividend paid to shareholders and minorities -4,316 -5,552
Cash-flow from financial activities 3 34,292
Increase/ Decrease in cash 18,413 -12,080
Cash & cash equivalent at opening 10,023 28,437
Cash & cash equivalent at closing 28,437 16,357

Financial agenda
April 25, 2020: Financial information as at March 31, 2020
April 28, 2020: Shareholders' General meeting

About PAREF Group

PAREF operates in two major complementary areas: (i) Commercial and residential investments owned by SIIC PAREF primarily in corporate real estate in the Paris region (€0.2 Bn asset as at Dec 31, 2019) and (ii) Management on behalf of third parties via PAREF Gestion (€1.6 Bn funds under management as at Dec 31, 2019), an AMF-certified management company, and via PAREF Investment Management (€0.4 Bn as at Dec 31, 2019)

PAREF is a company listed on Euronext Paris, Compartment C, under ISIN FR00110263202 – Ticker PAR.
More information on www.paref.fr

Contacts

Antoine CASTRO Antoine ONFRAY
Chief Executive Officer Deputy Chief Executive Officer

info@paref.com
Phone: 01 40 29 86 86

Press Contact
Citigate Dewe Rogerson
Alexandre Dechaux / Hugo Boussier
07 62 72 71 15 / 06 66 41 01 22
Paref@citigatedewerogerson.com


[1] Loan-to-value (LTV): consolidated net debt divided by the consolidated asset value excluding transfer taxes (LTV at 30% including the shares in Wep Watford)

[2] Sociétés Civiles de Placements Immobiliers

[3] Organisme de Placement Collectif Immobilier

[4] The financial occupancy rate excluding the Gaia building remains stable at 91.7% in 2019 (compared to 91.9% in 2018). The financial occupancy rate is computed excluding assets undergoing redevelopment (The Go in Levallois-Perret)

[5] Includes interests in companies consolidated under the equity method, of which 50% in Wep Watford (company which owns the Gaïa office (Nanterre, La Défense)) and 27.24% in Vivapierre OPPCI.

[6] Including participation in Gaïa office. Excluding shares in Vivapierre and the value of Paref Gestion shares.

[7] Including Gaïa office share.

[8] Excluding the asset in restructuring (“The Go” in Levallois-Perret) and the Gaïa asset.

[9] Open-ended fund

[10] Close-ended fund

[11] All existing financings and hedging instruments were repaid except Dax and Saint-Paul-Lès-Dax financial leases.

[12] Linked to an indirect mortgage on Levallois asset held by Polybail.

[13] Loan-to-value: consolidated net debt divided by the consolidated asset value excluding transfer taxes.

[14] ICR: EBITDA divided by consolidated financial expenses excluding penalties on debt early repayment.

[15] Including shares in companies consolidated under the equity method (50% in Wep Watford (Gaïa office - Nanterre, La Défense), and 27.24% in Vivapierre OPPCI. Excludes Paref Gestion shares.

[16] PAREF Gestion valuation is based on multiples applied on revenues with an average over the last 2 years (2x on management fees and 0.5x on subscription fees in average).


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  Original Source: PAREF