TERREIS : Terreïs - Third Quarter 2013 Business Review

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Revenues up 7%
Organic growth rate of 5.3%
Financial occupancy rate of 96 %

¤138 million in acquisitions in the Paris Central Business District

  • Sustained level of business activity

TERREÏS' rental income during the first nine months of 2013 totalled ¤46 million, a 7% increase compared with the same period in 2012.

The Group's organic growth rate was 5.3%, two-thirds of which corresponds to rent indexation and one-third to the renegotiation of leases.

The commercial property financial occupancy rate remained high, at 96%.

Rental income 9 months 3rd quarter
(in ¤ '000s) 2013 2012 Change 2013 2012 Change
 
Office / Retail
41,423 38,369 8.0% 14,032 12,943 8.4%
Residential 4,600 4,621 -0.4% 1,517 1,539 -1.4%
Total 46,023 42,990 7.1 % 15,549 14,482 7.4%

The increase in Office/Retail rents is specifically related to the acquisition of assets in the Avenue de Messine and in the Avenue de la Grande Armée during the first half of 2013.

The slight fall in residential rental income was due to the implementation of the policy to sell residential assets as and when they are vacated.

  • Disposal of regional and residential assets for ¤45.5 million over the first nine months

TERREÏS has continued to sell off its regional properties, in order to focus exclusively on Paris. These asset disposals currently total ¤17.5 million, ¤15.4 million of which had been completed as at 30 September 2013. Assets were sold at prices above their appraisal values.

Sales of residential assets were also on-going. These totalled ¤28 million over the first nine months, ¤20.1 million of which had been completed as at the end of September 2013. The assets were sold at an average price of ¤9,815/m², above the assets' appraisal values.

  • ¤138 million investment in the Paris Central Business District

TERREÏS continued its targeted acquisition strategy with an asset under sale agreement located at 50/52 boulevard Haussmann, comprising 14,900 m² of office space and 82 parking places. This asset is fully leased, generates ¤8.3 million in annual rental income, and yields an immediate return of 6.02%.

The deed of sale for this ¤138 million acquisition is to be finalised by 20 December 2013. The acquisition will be financed by a 15-year loan in the amount of ¤80 million, at a 3.55% fixed rate (through a variable interest rate swap).

  • Outlook: on-going refocus on high-quality Paris office real estate

TERREÏS will continue the disposal programme for its regional assets, which is already well underway, as well as disposals at its residential unit.

At the same time, TERREÏS will remain on the look-out for new market opportunities, especially in Central Paris.

  • Interim dividend

For information, TERREÏS will pay an interim dividend of ¤0.32 per share on 15 November (a 6.7% increase compared to the interim dividend paid in November 2012) and is confirming a higher dividend target for the 2013 financial year compared to 2012.

*

Next publication: revenue for the 2013 financial year, on 22 January 2014.

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

About TERREÏS (www.terreis.fr)

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 SBF250 Index (now the CAC-All Tradable Index) since September 2010.

ISIN Codes: FR0010407049 - Ticker symbol: TER

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