AFFINE (EPA:IML) Affine - 1Q11 - Upturn in rental income

Transparency directive : regulatory news

16/05/2011 18:00

Paris, 16 May 2011, 6.00 p.m.

                   Quarterly information as at 31 March 2011

                        UPTURN IN RENTAL INCOME (+2.3%)

1) CONSOLIDATED REVENUE (THREE MONTHS)

(EURm)                           1Q 2010   1Q 2011    CHANGE (%)

Rental income                       17.0      17.4      2.3%
Service charge income and other      2.1       6.7      N.M.
Total Propert ies Revenue           19.2      24.1     25.8%
Finance lease                        4.4       3.5    -20.9%
Property development                 0.4       0.4     -0.2%
Other (1)                            0.1       0.2      N.M.

Total consol idated revenue         24.0      28.2     17.3%

(1) Interest income and exceptional income

On a like-for-like basis, rental income increased by 3.6%, with the signing of
new leases since April 2010 that more than compensate for a small number of
terminations and renegotiations. After consideration of the net impact on
rental income of disposals and acquisitions (-EUR0.5m), rental income came to
EUR17.4m, up 2.3% in comparison with the first three months of 2010.

The billing of large amounts of building works made by Banimmo on behalf of
third parties tends to make the aggregate of re-invoiced expenses relatively
volatile. In the first quarter 2011, this change came to EUR2.5m for Banimmo.
To this is added the fact that since the end of 2010, this account integrates
all re-invoiced expenses related to the Group's properties, as part of a drive
for more account transparency. In consequence, the revenue of the Property
activity increased by 25.8% to reach EUR24.1m over the first quarter.

The other line items reflect the strategy of refocusing on the property
business, with the continued decrease in revenue from finance lease (-EUR0.9m)
and a marginal contribution from development activities.

Overall, the Affine Group posted a 17.3% increase in revenue at EUR28.2m.

Property

In the first quarter, 12 new leases were signed and 3 were renewed,
representing an annual global rental income of EUR1.3m. In addition, 13
tenants indicated their departure, for a total rental income of EUR1.5m on an
annualised basis.

Portfolio streamlining continues with the disposal of mature and small-sized
properties. Affine and Affiparis have signed commitments which will be
implemented in the second quarter.

Finance lease

The finance lease business reported the exercise of four options in the first
quarter of 2011.

The drop in revenues continues, due to the amortisation of portfolio
transactions.

Property development

Over the quarter, Concerto European Developer continued to negotiate several
turn-key construction projects, which should be completed during the second
quarter of the year.

2) SIGNIFICANT EVENTS

At the Annual General Meeting of 28 April, the dividend amount was established
at EUR2.43 per share. It may be paid either in cash or in new shares on the
basis of EUR19.0 per share.

Through this option of payment in shares, the company provides its
shareholders an opportunity to participate in its development while enjoying a
share price lower than the NAV.

3) FINANCIAL POSITION AS AT 31 MARCH 2011

There were no significant changes to the Group's financial structure compared
with 31 December 2010.

4) OUTLOOK

The improvement in the rental position and in the value of buildings recorded
in the second half 2010 appears to continue in 2011.

The continued disposal of non-strategic assets should contribute to
reinforcing the financial structure, while the Group will aim to reinforce its
investment strategy according to opportunities.

The Group will continue its asset management targeting the improvement of the
quality and profitability of its buildings, in particular through major
renovation and redevelopment projects.

5) SCHEDULE

* 15 to 27 May 2011: Option period for the payment of dividends in cash or in
shares. The dividend comes to EUR2.43 and the payment in new shares will be
made on the basis of a price of EUR19 (see press release dated 11 May 2011).

* 6 June 2011: Delivery of new shares

* 30 August 2011: 2011 Half-year revenues and results

About the Aiilne Group:
A diversified property company specialising in commercial property, the Affine
Group's portfolio at the end of 2010 comprised 98 properties worth EUR1,060m
covering a total surface of 755,000 sqm. The Group's main business is offices
(56%), commercial property (22%) and warehouses (16%).

Its business is split between Affine (53%), which has operations in the
regions of France excluding Paris, AffiParis (20%), an SIIC specialising in
Paris-based property, and Banimmo (27%), a Belgian repositioning property
company with operations in Belgium, France and Luxembourg.

The Affine Group also includes Concerto European Developer, a subsidiary
specialising in setting up development and investment operations in logistics
properties in Europe.

As of 2003, Affine opted for listed real estate investment trust (SIIC)
status. The Affine share is listed on NYSE Euronext Paris IML FP / BTTP.PA;
ISIN Code FR0000036105) and admitted to SRD (long only). The Affine share is
included in the SBF 250 (CAC Small 90), SIIC IEIF and EPRA indices. AffiParis
and Banimmo are also listed on NYSE Euronext. www.affine.fr

Contact
INVESTOR RELATIONS             PRESS RELATIONS
Frank Lutz                Citigate Dewe Rogerson - Agnès Villeret
+33 (0)1 44 90 43 53 -         +33 (0)1 53 32 78 95 -
frank.lutz@affine.fr           agnes.villeret@citigate.fr

         A French société anonyme with share capital of EUR50,005,728 -
              Registered Office: 5, rue Saint-Georges, 75009 Paris
       Tel.: 01 44 90 43 00 - 33 (0)1 44 90 43 00 - Fax: 01 44 90 01 48 -
              33 (0)1 44 90 01 48 - E-mail address: info@affine.fr
          712 048 735 RCS Paris - Intracommunity VAT no. FR92712048735

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