TERREIS : PR Terreïs - 2012 Business Review

2012 Business Review

Revenue growth of 40%, above the announced target

Continuation of the strategy aimed at refocusing on Paris commercial property:
- ¤32 million in investments made in 2012,
- ¤60 million in disposals of assets (¤35m in residential and ¤25m in the French Regions)

Value of the property portfolio as at the end of December 2012:
 ¤1.138 billion vs ¤1.085 end of 2011
  • Trading levels above the targets set at the beginning of the year

Terreïs' 2012 rental income amounted to ¤58.3 million, a 40 % increase compared with the same period in 2011. This increase was higher than the announced revenue growth forecast of at least 35% for the year as a whole.

Following restatements for acquisitions and disposals, the Group's organic growth amounted to over 6%. The commercial property occupancy rate (excluding the assets located at Rue d'Anjou) was 96%.

Both the Anjou and Volney assets are now over 90% let.

Rental income Year 4th quarter
(in ¤ '000s) 2012 2011 Change 2012 2011 Change
Offices 38,954 25,899 +50% 10,547 8,274 +27%
Retail 10,591 7,059 +50% 2,608 1,984 +31%
Combined (offices & retail) 2,397 2,238 +7% 580 583 NS
Residential 6,369 6,344 NS 1,586 1,552 NS
Total 58,311 41,540 +40% 15,321 12,393 +24%
  • Refocusing and developing the business activity on commercial property assets in Paris

    • Refocusing on offices in Paris
      Terreïs has continued to dispose of its regional properties, in order to focus exclusively on Paris and its immediate surroundings. Completed asset disposals amounted to ¤24.9 million as at 31 December 2012. They were made at prices above their appraisal values.

      Furthermore, during the 2012 financial year, Terreïs signed agreements for the disposal of residential assets amounting to ¤34.9 million as at the end of December.

      In total, these asset disposals, i.e. ¤59.8 million, generated a book gain of over ¤35 million.
    • Development of commercial property in Paris
      Thanks to these disposals and to a financial structure that remains sound, Terreïs is continuing its targeted acquisition policy, with two acquisitions in the Paris Central Business District for a total outlay of ¤32 million. One is located at 89 Rue de la Boétie (8th District), with an area of 1,369 m²; the other is located at 103 Rue Réaumur (2nd District) with an area of 3,988 m² excluding the basement.
      The yield on the office and retail part of these two assets works out at 6.4%.
  • Outlook

Terreïs' goal is to substantially increase its Paris commercial property portfolio, in order to focus over 95% of its business on the Central Business District and the immediate surrounding area.

Terreïs will therefore continue to sell its regional assets and its residential portfolio in 2013.

At the same time, the company will pursue its policy of making acquisitions in Paris, depending on opportunities. In fact, Terreïs has just signed a promise of sale involving a high-quality asset located at 10, Avenue de Messine (8th District) for a total of ¤55.5 million.

Next publication: results for the 2012 financial year, on 25 March 2013.

Contact: Fabrice Paget-Domet, Chief Executive Officer - Tel: 01 82 00 95 23
Laurent Jauffret, Deputy Chief Executive Officer, Ovalto Investissement - Tel: 01 82 00 95 00

About Terreïs (www.terreis.fr ) - A new Terreïs website is now online.
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. Its shares have been included in the SBF Index (now the CAC-All Tradable Index) since September 2010.
ISIN Codes: FR0010407049 - Ticker symbol: TER

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