TERREIS : Q1 2011 Activity

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Business in first quarter 2011

Revenue up by 89%, in line with the targets fixed for the year
Stream of transactions conducted in the quarter conforming to the target of an asset base worth ¤1 billion, comprised more than 90% by tertiary properties

Level of business consistent with targets set at the start of the year

The TERREÏS rental income stands at ¤8.95 million for the first quarter 2011, a rise of 89% compared with the previous year. This rise is in line with the growth prospects of at least 85% of sales for the entire year. The first quarter figures include notably, and for the first time, income from the assets of Avenir & Investissement, which merged with TERREÏS on 10 January this year. This contributed ¤1.65 million to the revenue for the period.

Restated of the 2010 acquisitions and disposals, the group's organic growth amounted to +0.3%. The occupancy rate of the assets is 93% for the post-merger as a whole. It takes into account the strategy of focusing on commercial assets, which aims in particular at not renting the vacant residential assets in order to sell them.

Rent
(in ¤ thousands)
Q1
2011 2010 Change
Offices 5 290 2 509 +111%
Retail 1 576 1 265 +25%
Mixed (offices+retail) 552 557 -1%
Residential 1 490 378 +294%
Other 38 14 +177%
Total 8 947 4 723 +89%

* Rent net of operating, maintenance and repair costs, including those under Article 606

Stream of transactions conducted in the quarter in line with the target of an asset base worth ¤1 billion, comprised more than 90% by tertiary properties

From the beginning of the year, TERREÏS has bought new assets for an amount of ¤83.6 million:

¤34.8 million were completed in the first quarter, most of which related to two buildings located in rue Cambacérès and rue Roquépine (Paris VIII), ¤48.8 million are under promise. In addition to the buildings already announced at the time of the results presentation on 23 March, TERREÏS has initiated the purchase of a new offices building in Issy-les-Moulineaux, with total area of 10,200 m². These commitments should see additions to the group's asset base during the first half year.

Taken as a whole, these acquisitions, whether completed or under way, will lead to an instant yield of 6.80% across the full year. They will be financed by using available cash and bank loans currently being negotiated.

In addition, as part of a strategy of focusing on commercial properties, TERREÏS signed in the first quarter memoranda for the disposal of Parisian residential assets totalling ¤17 million at a medium price of ¤9,069 per square meter.

Based therefore on purchase agreements either concluded or under way today, the asset base of TERREÏS is worth ¤740 million, in line with the target asset base of ¤1 billion set at the time of the capital increase completed at the start of the year.

2011 prospects backed by a tertiary property market that remains favourably oriented

Despite the ECB's recent decision to raise its rates, there is still an attractive differential between the rate of return on assets and the cost of borrowing, and the demand for quality, city-centre office rentals is noticable.

TERREÏS can therefore reaffirm its outlook for the 2011 financial year, both regarding rental revenues growth of over 85%, and the gradual return of its asset base to city-centre commercial properties.

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Next event: General Meeting on 4 May 2011.

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Contact: Emmanuel Pineau, Deputy Managing Director Ovalto Investissement
Tel: 01 82 00 95 01

About Terreïs (www.terreis.fr)
Terreïs is a property company whose assets consist of small- and medium-sized office premises as well as the bricks and mortar of retail property located mainly in city centres, Paris and the main regional urban centres in France. Terreïs has been listed on the regulated NYSE Euronext market in Paris, compartment C, since December 2006, and has opted for the status of listed property investment company (SIIC) from 1 January 2007. Its stock has been included in the SBF 250 reference index since September 2010.

ISIN codes: FR0010407049 - Ticker symbol: TER
FR0010989871 - Ticker symbol: TERNV
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