Actusnews Wire - Professional broadcaster of corporate and regulated information, authorised by the AMF and the CSSF.

  PAREF company press release from 17/02/2022

  17/02/2022 - 19:45

FULL YEAR RESULTS AS AT DECEMBER 31, 2021


A first successful step of the transformation plan contributing to historically high dividends

 

At group level, assets under management increased by 13% to reach approximately €2.7bn

  • €196m of owned assets (+6.3% on a like-for-like basis compared to December 31, 2020)
  • €2,501m managed on behalf of institutional and retail investors (+14% compared to December 31, 2020)

Solid financial indicators

  • Net results increased by 35% at €11.0m (€8.2m as of December 31, 2020)
  • EPRA Net Reinstatement Value (NRV) increased by 4% at €130.0 per share (€125.1 per share as of December 31, 2020)
  • Loan to Value (LTV1) decreased to 22% (vs. 25% as of December 31, 2020)
  • Substantial liquidity of nearly €50m (including an undrawn committed credit line)

Dynamic business development

  • Financial occupancy rate2 reached 92.6% increasing by 11.5 points compared to December 31, 2020
  • Opening of the 3rd subsidiary of PAREF Investment Management in Frankfurt in September 2021
  • 2 new asset management mandates signed by PAREF Investment Management with institutional investors

Proposed distribution of the Group highest value ever dividend at €4.70 per share for the fiscal year 2021 to be paid in cash, for approval by the Annual General Meeting to be held on May 19, 2022.

The Management Board of PAREF, during the meeting held on February 17, 2022, approved the closing of the annual statutory and consolidated accounts as of December 31, 2021. The review of the results by our auditors is in progress.

“PAREF delivered a solid year in 2021, resulting from the profound transformation over the past 4 years. This value creation should continue thanks to the rebalancing of revenues (with more stable management fees over time), the investment realized in future activities and international expansion. On this successful first step, we propose to pay the highest dividend ever in the Group's history, at €4.70 per share (+104% compared to 2020) while shareholder value has continued to increase with a NRV reaching now €130 per share (+4% compared to 2020).” 

Magali Volet – Group CFO

“The PAREF Group is actively pursuing its strategy of innovation, European expansion and product diversification. The Group has demonstrated the relevance of its model through the development of new income sources and a good balance between different activities. The Group is now well positioned to seize all the opportunities that come with the end of the health crisis, thanks in particular to the recruitments made in 2021 and the new services developed for institutional investors. The Group has stepped up its digital transformation and is deploying an ambitious ESG strategy at all stages of the company.

Finally, during this period of difficult operational environments, I would like to thank and share my appreciations to the whole PAREF family for the efforts made throughout the year, which enabled us to achieve these promising results.

Antoine Castro – Group CEO

I - Real-estate activity

As of December 31, 2021, PAREF holds:

  • 9 assets directly;
  • two main subsidiaries, namely PAREF Gestion and PAREF Investment Management, and
  • financial participations in SCPIs and OPPCIs.
  • Continuation of the active management strategy

PAREF has carried forward its strategy of active management of its portfolio by repositioning it progressively on larger assets mainly located in Greater Paris: average asset size reached €20m, +76% over the last 2 years, from €11.6m to €20.4m, increasing by 22% in 2021 alone.

Average value per asset

Date Value Number value per asset
Dec 2018 127 20 6,4
Dec 2019 185 16 11,6
Dec 2020 184 11 16,7
Dec 2021 184 9 20,4

Two assets located in Gentilly and La Houssaye-en-Brie have been disposed for a total net selling price of €15m, representing 29% premium on average over last independent appraisals.

  • Owned assets portfolio appreciated by 6.3% on a like-for-like basis

The value of PAREF's owned assets3 was €196m as of Dec 31, 2021, consisting of investment property for €184m (including the participation in the Gaïa building) and financial participations in funds managed by the Group for €12m.

Owned assets key figures4 2020 2021
Number of assets 11 9
Lettable area (in operation) 99,619 sqm 82,363 sqm
Valuation €184m €184m

As a result of the strategy implemented, the assets are now mostly located in or around Paris:

Quartier Percentage
Paris 7%
Greater Paris 79%
Regions 14%

The value of real estate assets owned by PAREF (excluding Gaïa office) was €165.4m, increasing by 6.8% on a like-for-like basis and remaining stable compared to the end of 2020, due to:

  • Disposals of €11.8m (valuation as of December 31, 2020),
  • Capitalized expenses of €7.7m in 2021, and
  • Increase in the fair value of investment properties for €3.1m.
  • Proactive leasing management

Despite measures taken to reinforce remote working, leasing activities have been dynamic in 2021 with 8 leases and renewals signed for more than 17,000 sqm, representing more than 20% of the total assets, of which notably:

  • 4 new leases signed for Gaïa office building with a 6-year firm period, increasing the physical occupancy rate by 20 points to 84%5 as at December 31, 2021, compared to 64% one year ago,
  • 2 new leases and a renewal for floors in Franklin Tower (La Défense) for more than 4,000 sqm, leading the occupancy rate to 100% starting from January 1, 2022, and
  • a lease renewal of about 11,000 sqm for a logistic asset in Aubergenville.

Given these new leases and renewals, financial occupancy rate improved to 92.6% as of December 31, 2021, vs. 81.1% as of December 31, 20206, and the weighted average unexpired lease term of the owned asset portfolio stays at 4.4 years at the end of 2021, compared to 4.9 years as of December 31, 2020.

The owned assets' expiry schedule of rents assets is as follows:

Expiry schedule of leases (end of the firm period - K€)

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 and beyond
0 835 842 1942 103 844 - 222 433 1611

  • Net rental income in decrease due to the disposal of two assets in 2021

The net rental income of PAREF reached €8.0m in 2021, a reduction of 5% compared to €8.4m in 2020. This decrease is the result of:

  • the disposals signed in 2020 (full-year effect) and in 2021,
  • the exceptional impact of the reinvoicing of rental expenses for previous accounting periods,
  • partially offset by an indemnity related to a negotiation of existing lease.
Rental income from owned assets (in k€) 2020 2021 Evolution in %
Gross rental income 8,974 8,839 -2%
Rental expenses re-invoiced 3,103 2,586 -17%
Rental expenses -3,700 -3,454 -7%
Non-recoverable rental expenses -597 -868 45%
Other income 4 2 -37%
Total net rental income 8,381 7,974 -5%

On a like-for-like basis, gross rental income remained stable compared to 2020.

The average gross initial yield on these assets was 6.6% vs. 6.2% at the end of 20207.

 

II – Asset management on behalf of third parties

  • Dynamic activities for portfolios under management

PAREF Gestion collected gross subscriptions of €101m from investors on SCPI funds, lower by 33% compared to 2020 (€151m). This is explained by:

  • the decision to suspend the subscriptions of SCPI Novapierre Allemagne 2 during the 1st quarter of 2021,
  • a slowdown of SCPI investors for certain asset types linked to the health crisis (retail, office, etc.), impacting the subscription of SCPI Interpierre France,
  • SCPI Interpierre Europe Centrale showing strong interests from investors with its subscription tripled compared to 2020 (fund launched in September 2020),
  • the enthusiasm of investors for residential translated into strong increase by 82% of the subscription of SCPI Novapierre Résidentiel.

Breakdown of gross subscriptions:

Type Funds Gross subscriptions in 2020
(€ m)
Gross subscriptions in 2021
(€ m)
Evolution in %
SCPI Novapierre Allemagne 2 92 29 -69%
Interpierre France 30 18 -40%
Novapierre Résidentiel 18 32 82%
Interpierre Europe Centrale 5 17 261%
Novapierre Allemagne 5 5 11%
Novapierre 1 1 0.4 -64%
Novapierre Italie 1 n.a n.a
Total   151 101 -33%

Investments and disposals

PAREF Gestion has signed investments for more than €150m for all the SCPI funds under management, notably:

  • €96m for Novapierre Allemagne 2,
  • €22m for Interpierre France,
  • €20m for Novapierre Residentiel, and
  • €16m for Interpierre Europe Centrale.

In the meantime, PAREF Gestion has also closed disposals for more than €21m, of which mainly €14m for Novapierre Résidentiel and €7m for Novapierre 1.

Returns of all funds improved in 2021, in line with targets, and even above for some funds such as SCPI Novapierre Résidentiel.

Breakdown of assets under PAREF Gestion management as of December 31, 2021:

PAREF Gestion manages assets on behalf of third parties for €1,845m, an increase of 5% compared to €1,764m as of December 31, 2020.

Type Funds Strategy Assets under Management Assets under Management Evolution in %
  (€ m) (€ m)
  Dec 31, 2020 Dec 31, 2021
SCPI Novapierre Allemagne8 Retail 616 672 9%
Novapierre Résidentiel8 Residential 329 351 7%
Novapierre 18 Retail 252 247 -1%
Interpierre France8 Office/Logistics 184 208 13%
Novapierre Allemagne 28 Retail 158 185 17%
Atlantique Pierre 19/10 Diversified 57   -100%
Cifocoma 29 Retail 25 25 1%
Cifocoma 19 Retail 24 26 7%
Interpierre Europe Centrale8 Office/Logistics 4 16 289%
Novapierre Italie8/11 Tourism 4 - -100%
Sub-total SCPI 1,652 1,732  5%
OPPCI Vivapierre Hotel resorts 86 87 1%
Sub-total OPCI     86 87 1%
Other AIF 25 26 3%
Total   1,764 1,845 5%

  • PAREF Investment Management

PAREF Investment Management operates in France, Italy, Switzerland, and Germany. The company aims at providing institutional investors with the expertise already at the service of PAREF and PAREF Gestion, in terms of investment, asset management, project management, property management, legal and financial services.

PAREF Investment Management has signed two management mandates representing asset value of €165m, of which one for a redevelopment project of “Trade” asset, owned by Fosun Group, located in Frankfurt in Germany, and the other one for an office building in city center of Budapest on behalf of the Portuguese insurance company Fidelidade. The new mandates show the confidence of PAREF's major shareholder in its capacity of restructuring and development for large complex assets.

The redevelopment project of "The Medelan", located in the historic city center of Milan, managed by the Italian subsidiary of PAREF Investment Management, had significant progress in leasing during 2021: after the very first lease signed with the Michelin star restaurant Horto on the rooftop, 62% of office space and 13% of retail spaces have been let or are under a firm offer. 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. The delivery of the project is expected in Q1 2022.

  • The increase in asset management fees has not totally offset the decline in gross subscription fees leading to a 12% decrease overall

Management fees increased by 17% compared to 2020 to achieve €11.9m. The increase is mainly explained by the following:

  • +€0.8m linked to increasing assets under management thanks to investments completed in 2020 and 2021,
  • +€0.2m from fees on disposals,
  • +€0.6m of additional revenue thanks to the 2 new management mandates signed by PAREF Investment Management.

Subscription fees reached €9.4m in 2021, falling by 33% compared to 2020, in line with the decrease in gross subscription in 2021.

Fees (in €k) 2020 2021 Evolution in %
Management fees 10,117 11,884 17%
Subscription fees 14,174 9,435 -33%
Total fees 24,291 21,320 -12%

  • Reinforced human resources with an experienced team

PAREF Group has also succeeded in attracting new talents and experienced managers in 2021, of which notably:

  • Andrea Duma as the Head of the Italian subsidiary since March,
  • Jean-Christophe Caron-Telders as Investment Director since July,
  • Olivier Eglem as Senior Fund & Investment Manager since September,
  • Azzdine Guechi as Asset Management Director since October, and
  • Öykü Kurtoglu as Group Head of Sustainability & ESG, since December.

Reinforced by these experienced profiles in the real estate industry to support all our activities, the Group will be able to accelerate the deployment of its strategy.

 

III – 2021 Results and EPRA earnings

Consolidated P&L

Detailed consolidated P&L (in €k) 2020 2021 Evolution in %
Gross rental income  8,974 8,839 -2%
Reinvoiced rental expenses, taxes and insurance 3,103 2,586 -17%
Rental expenses, taxes and insurance -3,700 -3,454 -7%
Non-recoverable rental expenses -597 -868 45%
Other income 4 2 -37%
Net rental income 8,381 7,974 -5%
Fees 24,291 21,320 -12%
-of which management fees 10,117 11,884 17%
-of which subscription fees 14,174 9,435 -33%
Gross fee income 24,291 21,320 -12%
Total Turnover 32,672 29,293 -10%
Retro-commissions -11,288 -9,960 -12%
General expenses -11,548 -14,474 25%
Depreciation and amortization -571 -1,051 84%
Current operating result 9,264 3,807 -59%
Variation of fair value on investment properties 567 3,134 453%
Result on disposals of investment properties -18 2,910 n.a.
Operating result 9,814 9,852 0%
Financial products 31 - -100%
Financial expenses -1,408 -1,086 -23%
Net financial expenses -1,377 -1,086 -21%
Other expenses and incomes on financial assets 211 307 46%
Fair-value adjustments of financial instruments - - n.a
Results of companies consolidated under the equity-method12 342 2,078 508%
Result before tax 8,990 11,151 24%
Income tax -840 -117 -86%
Net result 8,150 11,034 35%
Non-controlling interests - - n.a.
Net result (owners of the parent) 8,150 11,034 35%
Average number of shares (non-diluted) 1,480,927 1,508,131  
Net result / share (owners of the parent) 5.50 7.32 33%
Average number of shares (diluted) 1,483,407 1,511,418  
Net result / share (owners of the parent diluted) 5.49 7.30 33%

PAREF Group generated net results of €11.0m, increasing by 35%. This performance is mainly explained by the following:

Significant positive effects:

  • €3.1m increase in the fair value of investment properties thanks to redevelopment projects,
  • Net financial expenses at €1.1m in 2021, down by 21% vs. €1.4m in 2020, due to the full-year effect of the refinancing of the asset located in Dax during 2020,
  • Net income from companies consolidated under the equity method amount of €2.1m vs. €0.3m in 2020, increasing by €1.7m compared to 2020. This increase is mainly due to the positive variation in fair value of the asset Le Gaïa and refinancing costs of Vivapierre assets.

Some contrarian elements:

  • Net rental income reduced by 5% to €8.0m, mainly due to the disposals in 2020 and 2021,
  • Gross fees of €21.3m, decreasing by 12% mainly because of the decline in subscription fees, partially compensated by the increase in asset management fees on the back of growing assets under management,
  • Retro-commission paid to partners reached €10.0m, decreasing by 12% compared to 2020, resulting from the lower volume of retro-commission of subscription fees. In contrast, the retro-commission of management and investment fees increased, which mainly reflects the continuous rise of asset under management in Germany and the numerous acquisitions realized in 2021,
  • General expenses at €14.5m, with the reinforcement of teams in 2020 and 2021 in order to offer better quality of service,
  • Amortization and depreciation increasing to €1.1m, mainly due to investments made to upgrade IT systems and tools.

 

IV - Financial resources

The gross debt of PAREF Group remained at €60m as of December 31, 2021 (-6% compared to €64m as of December 31, 2020).

The average cost of drawn debt of the Group remains stable at 1.67 % as of December 31, 2021, versus 1.60% at end 2020.

The evolution of the cost of drawn debt, starting from 2017, is as follows:

Dec 31.2017 Dec 31.2018 Dec 31.2019 Dec 31.2020 Dec 31.2021
4,20% 3,60% 2,20% 1,60% 1,67%

The average debt maturity is 2.1 years as of December 31, 2021 (vs. 3.1 years at the end of 2020).

The drawn debt is fully hedged, limiting its sensitivity to interest rate fluctuations.

Financial ratios are solid:

   Dec 31, 2020 Dec 31, 2021 Covenant
LTV13 25% 22% <50%
ICR14 6.8x 4.6x >2.5x
DSF15 13% 13% <30%
Consolidated asset value16 €230m €232m >€125m

Debt repayment schedule:

The Group has liquidity of €49m as of December 31, 2021, of which cash and cash equivalent of €9m, in accordance with the regulatory requirement of a minimum amount to be held by PAREF Gestion, and €40m available via an undrawn committed credit line.

 

V - Assets under Management

The value of the Assets under the Management of PAREF Investment Management and PAREF Gestion increased by +13% and reached almost €2.7bn.

In K€ Dec 31, 2020 Dec 31, 2021 Evolution in %
1 – Management for owned assets      
PAREF owned assets 166,550 165,420 -1%
PAREF participations17 29,728 30,850 4%
Total Asset of PAREF 196,278 196,270 0%
       
2 – Management for retail and institutional third parties      
Novapierre Allemagne 616,247 672,424 9%
Novapierre Résidentiel 329,021 351,465 7%
Novapierre 1 251,653 247,903 -1%
Interpierre France 184,132 208,252 13%
Novapierre Allemagne 2 157,546 185,114 17%
Atlantique Pierre 118 56,644   -100%
Cifocoma 2 25,007 25,179 1%
Cifocoma 1 24,329 25,933 7%
Interpierre Europe Centrale 4,153 16,166 289%
Novapierre Italie19 3,504 - -100%
Vivapierre 86,400 87,050 1%
Other assets managed on behalf of third parties20 448,360 681,684 52%
Total Assets under Management for third parties 2,186,996 2,501,169 14%
Adjustments21 -10,942 -11,660 7%
3 – TOTAL Asset under Management 2,372,332 2,685,779 13%

VI – EPRA Net Asset Value

EPRA Net Reinstatement Value (NRV) increased by 4% to reach €130.0 per share as of December 31, 2021, compared to €125.1 per share as of December 31, 2020.

The evolution is mainly explained by the 2021 net results contribution.

EPRA NAV indicators are based on the IFRS-consolidated value of equity (fair value accounting) and the mark-to-market value of debt and financial instruments, as per EPRA's Best Practices Recommendations.

EPRA Net Reinstatement Value (NRV) - i n k€ Dec 31,2020 Dec 31, 2021 Evolution in %
IFRS Equity attributable to shareholders 137,805 146,082 6%
Including / Excluding :      
Hybrid instruments - - -
Diluted NAV 137,805 146,082 6%
Including :      
Revaluation of investment properties (if IAS 40 cost option is used) - - -
Revaluation of investment property under construction (IPUC) (if IAS 40 cost option is used) - - -
Revaluation of other non-current investments (PAREF Gestion)22 37,105 37,105 0%
Revaluation of tenant leases held as finance leases - - -
Revaluation of trading properties - - -
Diluted NAV at Fair Value 174,910 183,187 5%
Excluding :      
Differed tax in relation to fair value gains of IP - - -
Fair value of financial instruments 944 477 -49%
Goodwill as a result of deferred tax - - -
Goodwill as per the IFRS balance sheet n.a. n.a.  
Intangibles as per the IFRS balance sheet n.a. n.a.  
Including :      
Fair value of debt n.a. n.a.  
Revaluation of intangible to fair value - - -
Real estate transfer tax 12,736 12,354 -3%
NAV 188,590 196,018 4%
Fully diluted number of shares 1,507,460 1,508,356  
NAV per share 125.1 130.0 4%

VII - Post-closing events

Pre-sale agreement of Gaïa office was signed on January 21, 2022.

 

VIII – Outlook

Paref has deployed capital towards Real Estate for the last 31 years, and the Group is ready to deploy further and seeks to continue the cooperation with retail and institutional clients.

The objective is to continue growing as a Pan-European Investment Manager with strong operating capabilities, i.e. local expertise and presence in key markets supported by strong balance sheet for co-investments with private clients and institutional investors in order to achieve balanced investors types and all risk profiles from Core to Value Add focusing on France, Italy and Germany.

To support growth, PAREF strives to maximize value created for the clients, shareholders and society by incorporating sustainability and ESG factors into business and group activities. Transparency and trust are key themes on climate change and ESG, reflecting the initial priorities set out by the Group in 2018 and continuing on the basis of the extensive work over the years on corporate governance, collective responsibility, culture and purpose.

To summarize, the priorities and objectives from 2022 to 2024 are mainly demonstrated as below:

  • Property investment:
    • Optimize performance of REIT property portfolio: Maximize net operating income and minimize vacancy in core portfolio driving growth in dividends
    • Finalize value creation initiatives on owned assets
    • Dispose non-core assets to increase available liquidity
  • Fund & Asset Management:
    • Grow Retail funds under management: Continue with marketing of funds post offering optimization and identify new products to launch
    • Grow Institutional Asset under Management: Continue to secure new asset and project management mandates
    • Increase investment management capabilities and scale in Europe: Pursue first close on new funds as well as institutional mandates and support “One Stop Shop” growth ambitions
  • Commitment to ESG:
    • Environment - Decarbonization and Net zero: Operations and portfolios to be net zero by 2030, full alignment with Paris Agreement (max 2°C by 2050)
    • Social - Employer of Choice: Being an employer of choice
    • Governance – Membership: Becoming signatory of the UN PRI, participating in the GRESB and recognition by EPRA Sustainability Best Practices
    • Governance - ESG Governance: Implementing an ESG committee composed of experts and advisors on ESG, sustainable finance and real estate
    • Social – Community Investments: Community and impact investments, volunteering partnerships with Non-governmental organizations

The executive team continues to focus on this clear set of priorities, in confidence that PAREF's business model is robust and resilient and that the strategy is appropriate to deliver returns for shareholders. 

 

IX - Financial agenda
April 28, 2022: Financial information as of March 31, 2022
May 19, 2022: Annual General Meeting of shareholder

 

About PAREF Group
PAREF operates in two major complementary areas: (i) investments owned by SIIC PAREF primarily in commercial real estate in the Paris region (€0.2 bn asset as of December 31, 2021) and (ii) Management on behalf of third parties via PAREF Gestion (€1.8 bn funds under management as of December 31, 2021), an AMF-certified management company, and via PAREF Investment Management (€0.7 bn as of December 31, 2021).

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

 

Press Contact
Groupe PAREF

Samira Kadhi
[email protected]
Tél. : +33 (0)7 60 00 59 52

Citigate Dewe Rogerson
Tom Ruvira
[email protected]
Tel : +33 (0) 7 60 90 89 18

 

APPENDIX

EPRA Earnings per share as of Dec 31,2021

In k€ 2020 2021 Evolution in %
Earnings per IFRS income statement 8,150 11,034 35%
Adjustments      
(i) Change in fair-value of investment properties -567 -3,134 453%
(ii) Profits or losses on disposal of investment properties and other interests 18 -2,910 n.a.
(iii) Profits or losses on disposal of financial assets available for sale - -  
(iv) Tax on profits or losses on disposals - -  
(v) Negative goodwill / goodwill impairment - -  
(vi) Changes in fair value of financial instruments and associated close-out costs - -  
(vii) Acquisition costs on share deals and non-controlling joint-venture - -  
(viii) Deferred tax in respect of the adjustments above - -  
(ix) Adjustments (i) to (viii) above in respect of companies consolidated under equity method 399 -859 n.a.
(x) Non-controlling interests in respect of the above - -  
EPRA Earnings 7,999 4,131 -48%
Average number of shares (diluted) 1,480,927 1,508,131  
EPRA Earnings per share (diluted) 5.40€ 2.74€ -49%

EPRA Net Tangible Assets (NTA) as of Dec 31, 2021

EPRA Net Tangible Assets (NTA) - in k€ Dec 31,2020 Dec 31, 2021 Evolution in %
IFRS Equity attributable to shareholders 137,805 146,082 6%
Including / Excluding :      
Hybrid instruments - - -
Diluted NAV 137,805 146,082 6 %
Including :      
Revaluation of investment properties (if IAS 40 cost option is used) - - -
Revaluation of investment property under construction (IPUC) (if IAS 40 cost option is used) - - -
Revaluation of other non-current investments (PAREF Gestion)23 37,105 37,105 0%
Revaluation of tenant leases held as finance leases - - -
Revaluation of trading properties - - -
Diluted NAV at Fair Value 174,910 183,187 5 %
Excluding :      
Differed tax in relation to fair value gains of IP - - -
Fair value of financial instruments 944 477 -50%
Goodwill as a result of deferred tax - - -
Goodwill as per the IFRS balance sheet - - -
Intangibles as per the IFRS balance sheet -716 -882 23%
Including :      
Fair value of debt n.a. n.a. n.a
Revaluation of intangible to fair value - - -
Real estate transfer tax 12,736 12,354 -3%
NAV 187,874 195,135 +4%
Fully diluted number of shares 1,507,460 1,508,356  
NAV per share 124.6 129.4 4 %

EPRA Net Disposal Value (NDV) as of Dec 31, 2021

EPRA Net Disposal Value (NDV) - in k€ Dec 31,2020 Dec 31, 2021 Evolution in %
IFRS Equity attributable to shareholders 137,805 146,082 6%
Including / Excluding :      
Hybrid instruments - - -
Diluted NAV 137,805 146,082 6 %
Including :      
Revaluation of investment properties (if IAS 40 cost option is used) - - -
Revaluation of investment property under construction (IPUC) (if IAS 40 cost option is used) - - -
Revaluation of other non-current investments (PAREF Gestion) 37,105 37,105 0%
Revaluation of tenant leases held as finance leases - - -
Revaluation of trading properties - - -
Diluted NAV at Fair Value 174,910 183,187 5 %
Excluding :      
Differed tax in relation to fair value gains of IP n.a. n.a. n.a.
Fair value of financial instruments n.a. n.a. n.a.
Goodwill as a result of deferred tax - - -
Goodwill as per the IFRS balance sheet - -  
Intangibles as per the IFRS balance sheet n.a. n.a n.a.
Including :      
Fair value of debt 230 194 -16%
Revaluation of intangible to fair value n.a. n.a. n.a.
Real estate transfer tax n.a. n.a. n.a.
NAV 175,140 183,381 +5%
Fully diluted number of shares 1,507,460 1,508,356  
NAV per share 116.2 121.6 5 %

Other EPRA indicators

  • EPRA Vacancy rate
In k€ Dec 31, 2020 Dec 31, 2021 Evolution in %
Estimated rental value of vacant space 1,974 727  
Estimated rental value of the whole portfolio 10,189 9,819  
EPRA Vacancy Rate24 19.4% 7.4% -12.0 pts

  • EPRA Net Initial Yield (NIY) and ‘topped-up' NIY
In % Dec 31, 2020 Dec 31, 2021 Evolution in pts
PAREF Net yield 6.40% 6.84% +0.44
 Impact of estimated duties and costs -0.5% -0.46% -0.01
 Impact of changes in scope -0.04% -0.12% -0.08
EPRA Net initial yield25 5.90% 6.26% +0.36
 Excluding lease incentives 0.30% 0.43% +0.11
EPRA “Topped-Up” Net initial yield 26 6.22% 6.69% +0.47
  • Capital expenditure
En K€ Dec 31, 2020 Dec 31, 2021
Acquisition - -
Development27 3,194 6,658
Portfolio on a like-for-like basis28 788 697
Other29 1,204 851
Total 5,186 8,206

  • 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, 2020 Dec 31, 2021 Evolution in %
Include:      
(i) General expenses -1,709 -1,811 6%
(ii) Costs related to properties 0 - -
(iii) Net service charge costs/fees -3,700 -3,405 -8%
(iv) Management fees less actual/estimated profit element 0 - -
(v) Other operating income/recharges intended to cover overhead expenses 0 - -
(vi) Share of general expenses of companies consolidated under equity method -343 -412 20%
Exclude:      
(vii) Depreciation and amortization   - -
(viii) Ground rent costs 1,119 1,447 29%
(ix) Service charge costs recovered through rents but not separately invoiced 1,984 1,193 -40%
EPRA Costs (including direct vacancy costs) (A) -2,649 -2,989 13%
(x) Less: Direct vacancy costs (unrecoverable rent costs) 888 782 -12%
EPRA Costs (excluding direct vacancy costs) (B) -1,761 -2,206 25%
(xi) Gross Rental Income less ground rent costs 9,996 9,553 -4%
(xii) Less: service charge costs included in Gross Rental Income -1,619 -1,582 -2%
(xiii) Add: share of Gross Rental Income less ground rent costs of companies consolidated under equity method 2,290 1,957 -15%
Gross Rental Income 10,667 9,928 -7%
EPRA Cost Ratio (including direct vacancy costs) (A/C) 24.8% 30.1% +0.53pts
EPRA Cost Ratio (excluding direct vacancy costs) (B/C) 16.5% 22.2% +0.57pts

Consolidated balance sheet

Balance Sheet - Assets (in €k) Dec 31, 2020 Dec 31, 2021
Non-current assets    
Investment properties 167,754 165,420
Intangible assets 716 882
Other property, plant and equipment 2,052 1,524
Financial assets 12,387 13,886
Shares and investments in companies under the equity method 13,836 16,183
Financial assets held for sale 1,299 1,126
Differed tax assets 6 -
Total non-current assets 198,050 199,020
Current assets    
Stocks - -
Trade receivables and related 16,270 12,093
Other receivables 189 909
Financial instruments - -
Cash and cash equivalents 7,325 8,845
Total current assets 23,783 21,847
Properties and shares held for sale - -
TOTAL ASSET 221,833 220,867
     
Balance Sheet - Liabilities (in €k) Dec 31, 2020 Dec 31, 2021
Equity    
Share capital 37,755 37,755
Additional paid-in capital 42,193 42,193
Fair-value through equity 70 31
Fair-value evolution of financial instruments -944 -477
Consolidated reserved 50,581 55,546
Consolidated net result 8,150 11,034
Shareholder equity 137,805 146,082
Minority interest - -
Total Equity 137,805 146,082
Liability    
Non-current liabilities    
Non-current financial debt 65,803 60,507
Non-current financial instruments - 477
Non-current taxes due & other employee-related liabilities - 10
Non-current provisions 269 283
Total non-current liabilities 66,072 61,277
Current liabilities    
Current financial debt 435 559
Current financial instruments 944 -
Trade payables and related 4,684 4,218
Current taxes due & other employee-related liabilities 7,196 5,734
Other current liabilities 4,697 2,997
Total current liabilities 17,956 13,509
TOTAL LIABILITIES 221,833 220,867

Cash flow statement

CASH-FLOW STATEMENT (in €k) Dec 31, 2020 Dec 31, 2021
Operating cash-flow    
Net result 8,150 11,034
Depreciation and amortization 571 1,048
Valuation movements on assets -567 -3,134
Valuation movements on financial instruments - -
Valuation on financial assets held for sale - -
Tax 840 117
Result on disposals 18 -2,910
Results of companies consolidated under the equity method -342 -2,078
Cash-flow from operating activities after net financial items and taxes 8,669 4,077
Net financial expenses 1,377 1,086
Tax paid -1,010 -116
Cash-flow from operating activities before net financial items and taxes 9,036 5,046
Other variations in working capital 653 -476
Net cash-flow from operating activities 9,689 4,571
Investment cash-flow    
Acquisition of tangible assets -4,937 -6,447
Acquisition of other assets -537 -436
Assets disposal 5,432 14,965
Acquisition of financial assets -1,910 -1,426
Financial assets disposal   -
Financial products received 31 -
Change in perimeter -  -
Cash-flow from investments -1,920 6,657
Financing cash-flow    
Self-detention shares -148 -
Variation in capital -62 55
Variation in bank loans   24,000
Variation in other financial debt   -
Repayment of financial lease -8,810 -530
Repayment of bank loan -5,000 -29,000
Costs of loan issuance   15
Variation on bank overdraft   -778
Financial expenses paid -926 -
Dividend paid to shareholders and minorities -1,855 -3,468
Cash-flow from financial activities -16,801 -9,706
Increase/ Decrease in cash -9,032 1,521
Cash & cash equivalent at opening 16,357 7,325
Cash & cash equivalent at closing 7,325 8,845

 

1 Loan-to-value (LTV): consolidated net debt divided by the consolidated asset value excluding transfer taxes (LTV at 22% including the shares in Wep Watford)
2 Including Gaïa office. Financial occupancy rate excluding Gaïa office reached 95.3% (83,8% as at December 31, 2020)
3 Includes interests in companies consolidated under the equity method, of which 50% in Wep Watford (company which owns the Gaïa office in Nanterre, La Défense) and 27.24% in Vivapierre OPPCI.
4 Includes interests in companies consolidated under the equity method, of which 50% in Wep Watford (company which owns the Gaïa office in Nanterre, La Défense) and excludes the participation in Vivapierre OPPCI
5 Including 2 new leases with effective date starting early 2022
6 Including Gaïa office. Excluding Gaïa office, financial occupancy rate stands at 95.3% as at December 31, 2021, vs 83.8% end of 2020. The financial occupancy rate is computed excluding assets undergoing redevelopment (The Go in Levallois-Perret)
7 Excluding the asset under restructuring (“The Go” in Levallois-Perret) and the Gaïa asset.
8 Open-ended fund
9 Close-ended fund
10 The mandate terminated on December 31, 2021, following the decision of the shareholders' general meeting in June 2021
11 The Extraordinary General Shareholder Meeting of Novapierre Italie on March 5, 2021 voted for the early dissolution and the liquidation of the SCPI
12 Including the participations in the companies consolidated under equity method, of which mainly 50% of Wep Watford (asset the le Gaïa in Nanterre, La Défense) and 27,24% of Vivapierre OPPCI
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 DSF : secured financial debt divided by the consolidated asset value (including the value of PAREF Gestion's shares).
16 Including the value of PAREF Gestion
17 Including shares in companies consolidated under the equity method (50% in Wep Watford owning the Gaïa building in Nanterre, La Défense), and 27.24% in Vivapierre OPPCI. Excludes Paref Gestion shares
18 The mandate terminated on December 31, 2021, following the decision of the shareholders' general meeting in June 2021
19 The Extraordinary General Shareholder Meeting of Novapierre Italie on March 5, 2021 voted for the early dissolution and the liquidation of the SCPI
20 Including Foncière Sélection Régions under the management of PAREF Gestion, The Medelan in Italy, The Trade in Germany and an office asset in Hungary asset under the management of PAREF Investment Management
21 Part of PAREF portfolio is managed through OPPCI (Vivapierre) by PAREF Gestion
22 PAREF Gestion valuation was performed by a qualified external expert on Dec 31, 2020.
23 PAREF Gestion valuation was performed by a qualified external expert for the first time on June 30, 2020.
24 Including the participation in Gaïa office, excluding shares in OPPCI Vivapierre. Excluding Gaïa, EPRA vacancy rate stands at 4.7% as at December 31, 2020 vs. 16.9% as at December 31, 2020
25 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
26 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
27 Including investment related to “The Go” project of the asset located in Levallois-Perret and the redevelopment project in the asset located in Paris Leon Frot
28 Including mainly investment on the 6 floors in the Franklin Tower
29 Including eviction indemnities, rent adjustments and capitalized financial costs relating to "The Go" project


This publication embed "🔒 Actusnews SECURITY MASTER".
- SECURITY MASTER Key: yWefYpRvlJyXlpxyZZxrZmGWZ5dlxGaVbpLLxGiamJacap9olmxnZ8mYZnBkl25n
- Check this key: https://www.security-master-key.com.



  Original Source: PAREF