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  TERREIS company press release from 17/10/2018

  17/10/2018 - 18:00

FINANCIAL INFORMATION FOR THE THIRD QUARTER OF 2018


FINANCIAL INFORMATION FOR THE THIRD QUARTER OF 2018
(9 months at 30 September)

 
  • Parisian offices rental income: €47.5m (+6% vs 9m 2017; +3% l.f.l. basis)
  • EPRA vacancy rate historically low at 0,6%
  • 2018 interim dividend: €0.44 per share, paid on 15 November

Since 2012, TERREÏS made the choice to concentrate its portfolio on prime office units in Paris. This strategy, which prioritises asset optimisation, facilitates rental and assures a high occupancy rate. TERREÏS is now able to take advantage of its strategy with a significant rise in rents, at the time of leases renewal and when relocations follow departure of tenants. TERREÏS will also benefit from positive indexations.

  • Parisian offices rental income up 6% vs 9m 2017

Rental income from strategic assets (Office buildings in Paris), accounting for 94% of total rental income, are up 6% compared to 9m 2017. On a like-for-like basis, they increased by 3% thanks to positive indexation (+1.4%), increase in re-lets valuation or at the time of leases renewals (+0.9%) and occupancy rate improvement (+0.7%).

    9 months (at 30 September) Third Quarter
Rental income (€m)   2018 2017 Change% 2018 2017 Change%
    €m %  €m % €m %  €m %
Parisian Tertiary
Other assets
Tertiary out of Paris
  47.5
3.1
0.9
94%
6%
44.9
3.2
1.0
93%
7%
+6%
-4%
15.6
1.0
0.3
94%
5%
15.3
1.0
0.3
94%
6%
+1.7%
-
Residential   2.2   2.2     0.7   0.7    
Total   50.7 100% 48.1 100% +5% 16.6 100% 16.3 100% +1.7%

EPRA vacancy rate on strategic assets (excluding buildings under restructuring) stood at 0.6% at the end of September 2018, compared to 2.1% at the end of September 2017. Main building under restructuring are located at 11 rue de Milan (under refurbishing work, new tenant arriving by early November 2018) and at rues Galilée et Lübeck (buildings formerly rented by CNC, under refurbishing work, delivery expected on 1st March 2019). Accompanying measures continued to decline and have almost disappeared during Q3 2018.

  •  Outlook : continued focus on active asset management of the portfolio

Disposals of Residential assets in Paris amounted to €33.3m at 30 September 2018.

In the current market conditions and rental supply shortage in Paris CBD, TERREÏS will keep focusing on its value creation strategy by reinvesting in assets made available and progressively increasing rents on existing portfolio, which are significantly below market average on the Prime parisian market.

  • 2018 interim dividend : €0.44 per share (up 10%) paid on 15 November

TERREÏS will pay on 15 November a 2018 interim dividend of €0.44 per share, up 10% compared to the interim dividend paid in November 2017.

Release of the Sales figures for the FY 2018 on 23 January 2019.

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 1st January 2007. TERREÏS is part of SRD « Classique » since December 2017.