Against the current, an excellent year

Rental income : +48%, above estimates
Financial occupancy rate : 99,1% (end of the year)
Record level for investment:  ¤114m

I -Significant increase in rental income, acceleration on Q4

TERREÏS' rental income for the year 2009 came to ¤13.52 million, up 48% compared with 2008. Restated from acquisitions and cessions realized over the past 12 months, rental income was up 7.5%. The initial estimate of an increase by 35% is thus significantly exceeded.

Rental income (*)
(euros 000s)
  Year   4th quarter
2009 2008 Var. 2009 2008 Change
Offices 7.63 5.33 +43.1% 2.25 1.68 +34.1%
Commercial 2.97 1.54 +93.2% 1,19 0.40 +194.2%
Mixed 2.24 2.10 +6.8% 0.56 0.54 +4.0%
Other 0.67 0.17 ns 0.38 0.04 ns
Total 13.52 9.13 +48.0% 4.38 2.67 +64.3%

* Rental income net of operating costs, maintenance and repairs including those under Article 606

Rental income for the fourth quarter of 2009 came to ¤4.38 million, up 64.3% on the fourth quarter of 2008. Increase in rental income was higher quarter after quarter : + 35.6% on H1 and + 41.3% on Q3. Organic growth (ie growth based on indexations and renegociations) amounted to 5.3.%, which is significantly higher that construction index.

Financial occupancy rate reached 99.1% at the end of the year.

II -A very active year in terms of investment

Over the 4th quarter, TERREÏS finalized all promises signed during the preceding months, acting four new acquisitions for ¤ 23.7m. Total investment for the year amounts to ¤ 114m.

Assets bought during Q4 were:

Two buildings in the center of Paris with many tenants. One is a 3.000 square meters mixed (offices and commercial) building, located rue du 4 Septembre (IIème arr.); the other is a 1,100 square meters offices building, located rue Villedo (Ier arr.), A portfolio of 11 agencies located in the center of large cities in the country, all rented by VediorBis, A commercial space in Brest, rented by Foncia.

In addition, two other assets are under promises at the end of 2009 for an amount of ¤ 5.6m.

All these operations, booked or engaged, will generate a gross yield of 7.7% on a full year basis. Based on the identified perimeter at the end of 2009, rental income should reach ¤ 19m in 2010, prior any indexation or renegociation.

These acquisitions, increasing significantly the ¤ 148m asset basis at the end of 2008, fit with TERREÏS strategy since it went public, which consists in building a portfolio of high quality assets located in the center of cities and rented by a large diversity of high quality tenants.

Acquisitions were mainly debt-financed with partners looking for a long term involvment in the group development. New debt was booked on a 8 and 15 years maturity basis with an average fixed rate of 4.49%. 2009 investment will positively contribute to the cash flows in 2010.

III -Maintain of a high level of interest for quality opportunities

In 2009, in a depressed market where transaction volumes were significantly reduced, TERREÏS demonstrated its capacity to invest against the current in high quality assets with very attractive yields. In 2010, TERREÏS will take advantage of any opportunity matching its criteria of quality and profitability.

Next publication
2009 results: 19 march 2010

Contact: Emmanuel Pineau, General Manager OVALTO Investissement
Tel: +33(0)1 55 52 57 71

About Terreïs (www.terreis.fr)

Terreïs is a property company whose asset portfolio contains small and medium sized offices and commercial premises, mostly in central locations in Paris and the main French regional cities. Terreïs will grow by drawing on the considerable reservoir of commercial leases currently managed by branches of the Foncia group and through acquisitions facilitated by the network of business sources that these branches represent.

Terreïs has been listed in the C Compartment of Eurolist by Euronext Paris since December 2006, and adopted the listed property company regime (régime des sociétés d'investissement immobilier cotées or SIIC) from 1 January 2007.

ISIN Code: FR0010407049 - Mnemonique Code: TER

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