TERREIS : Terreïs 2013 Business Review


Revenues up 6%

Continuation of the strategy aimed at refocusing on Paris commercial property:
- €238 million of investments made in the Paris Central Business District in 2013,
- €42 million of asset disposals (€25 million residential and €16 million in the regions outside Paris)

Assets at the end of 2013 up almost 25%:
 €1.42 billion vs. €1.14 billion at the end of 2012


  • Revenues up 6%

TERREÏS' rental income stood at €61.8 million in 2013, up 6% compared with 2012. This increase is due to the 2.1% net growth in assets (disposals, -5% and acquisitions, +7.1%) and to internal growth of 3.9% (rent indexation, 3.1% and lease management, 0.8%).

Over 90% of this rental income comes from office and retail property rentals, with the part being due to residential property being reduced on an ongoing basis as part of the Group's strategy to shift its assets into the service sector.

The commercial portfolio occupancy rate amounted to 95.5%.


Rental income Year 4th quarter
(in €000s) 2013 2012 Change 2013 2012 Change
Office/Retail 55,783 52,161 +6.9% 14,360 13,792 +4.1%
Residential 6,015 6,150 -2.2% 1,415 1,529 -7.5%
Total 61,798 58,311 +6.0% 15,775 15,321 +3.0%


  • 25% increase in assets in 2013

    At the end of December 2013, assets stood at €1.424 billion, compared with €1.138 billion at the end of 2012, representing a 25% increase.

    The €286 million increase breaks down as follows:

    • Acquisitions during the year: +€237.5 million

      The five acquisitions made in 2013 represent €237.5 million of assets in the Paris CBD (6/8 boulevard Malesherbes; 4/10 avenue de la Grande Armée; 10/12 avenue de Messine; 112/114 rue de la Boétie; 50/52 boulevard Haussmann). These acquisitions will generate a minimum of €12.4 million of rental income in 2014, whilst waiting for the complete re-letting of properties in rue de la Boétie, avenue de Messine and especially in boulevard Malesherbes that is currently being renovated.

    • Disposals during the year: - €42 million

      Disposals stood at €42 million (40% of regional assets and 60% of residential assets). They were made at prices above 2012 appraisal values and provided a €28 million capital gain.

    • Revaluation of assets: + €90.2 million, including €19 million linked to acquisitions in 2013.

      At the end of 2013, TERREÏS' assets were made up of 85% Parisian assets, 12% assets in the Ile-de-France, and 3% regional assets. At the end of 2011, these figures were 78%, 15% and 7%, respectively.
  • Integration of the property management structure

TERREÏS acquired 60% of IMODAM Property, which has thus far managed its property assets. IMODAM's manager, Olivier Lafosse, keeps the remaining 40%.
The main effect of acquiring this stake in the company will be to bring the level of management charges paid by TERREÏS down from 2.5% to 1.5%. In 2013, these amounted to €1.7 million.

  • Outlook: a continued strategy concentrating on commercial property within the Paris CBD

TERREÏS' goal is to substantially increase its Paris commercial property portfolio and to focus over 95% of its business on the CBD.
TERREÏS will therefore continue to reduce its regional and residential assets in 2014.
At the same time, it will continue with its policy of acquiring service sector assets in Paris as opportunities arise.

Next publication: results for the 2013 financial year, on 11 March 2014.

Contact: Fabrice Paget-Domet, Chief Executive Officer - Tel: +33 (0)1 82 00 95 23
Olivier Froc, Chief Executive Officer, Ovalto Investissement - Tel: +33 (0)1 82 00 95 14 

About TERREÏS (www.terreis.fr)
TERREÏS is a real estate company whose assets consist of offices and retail premises that are primarily located in the Paris CBD. 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 SBF250 Index (now the CAC-All Tradable Index) since September 2010.
ISIN Codes: FR0010407049 - Ticker symbol: TER

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