AFFINE (EPA:IML) Affine - 3Q11 - Moderate rise in rents on a like-for-like basis (+2.9%)

Transparency directive : regulatory news

15/11/2011 18:00

Paris, 15 November 2011, 6:00 p.m.

                 Quarterly information as at 30 September 2011

           MODERATE RISE IN RENTS ON A LIKE-FOR-LIKE BASIS (+2.9%)

1) CONSOLIDATED REVENUE (NINE MONTHS)

(EURm)                            9M 2010   9M 2011   CHANGE (%)
Rental income                       52.9        52.7      -0.4%
Service charge income and other     10.2        26.3
Total Properties revenue            63.0        79.0      25.3%
Finance lease                       14.2         9.5
Property development                -0.2         0.7
Financial and exceptional income     1.0         1.7
Total consolidated revenue          78.1        90.9      16.4%

On a like-for-like basis, for the first nine months of 2011 rents rose 2.9%,
with the signing of new leases and upward negotiations that more than offset a
small number of terminations. After taking account of the net impact on rents
of disposals and acquisitions (-EUR1.6m), rental income amounted to EUR52.7m,
slightly down by 0.4% compared with the first nine months of 2010.

The sharp increase in service charges income was essentially due to the
re-invoicing of a significant volume of work carried out for third parties in
connection with Banimmo's activity (+EUR10.7m for the first nine months). Since
the end of 2010, this item has included all service charges income relating to
the group's properties, in an effort to provide greater transparency in the
financial statements.

As a result, the revenue of the Property activity of the group is up 25.3% at
EUR79.0m in the first nine months.

The other items reflect the strategy of refocusing on the property business
with the continued decrease in revenue from finance lease (-EUR4.8m), and a
marginal contribution from the residual activity of tertiary development.

Overall, the Affine Group posted revenue of EUR90.9m for the first nine months
of the year, up 16.4% over the same period in 2010.

Property

In the third quarter, 16 new leases were signed and 11 were renewed,
contributing to total annual rent of EUR6.1m. However, eight tenants,
accounting for total rent of EUR1.8m on an annualised basis, gave notice of
their departure.

Affine continued to streamline its portfolio with the disposal in the third
quarter of mature and small-sized properties worth more than EUR27m: EUR17.1m
for Banimmo with the Antwerp Expo property and EUR10.3m for Affine. These
disposals were on average made at prices corresponding to the appraisals at the
end of June 2011.

Finance lease

The finance lease activity recorded no exercised options during the third
quarter. Revenues continued to fall due to the amortisation of portfolio
transactions.

Property development

In the third quarter Concerto European Developer continued negotiations on
several construction projects involving "turnkey" buildings that are expected
to be concluded before the end of the year. The work for the construction of
the Sunclear distribution centre should begin in March 2012.

2) SIGNIFICANT EVENTS

When subsidiary AffiParis launched the capital increase on 25 October, Affine
announced that it would contribute to the increase in proportion to its equity
interest, i.e. 75.27%, mainly through capitalisation of its EUR19.7m
shareholder loan. Affine also declared it might subscribe for excess shares in
the capital increase.

The result of the capital increase will be announced on 17 November after the
close of trading.

3) FINANCIAL POSITION AS AT 30 SEPTEMBER

There were no significant changes to the Group's financial structure compared
to 30 June 2011.

4) OUTLOOK

The French property market, which has recovered significantly since the
2008-2009 crisis, is still subject to the vagaries of a lasting financial
crisis that is impacting economic activity in multiple ways.

Against this backdrop, improving its rental situation remains a strategic goal
for the group, even though the pace of the improvement may be slower than
expected.

As part of the conservative policy pursued by the group for the last three
years, Affine will continue to invest in new assets and upgrade the buildings
in its portfolio. At the same time, it will be attentive to any external growth
opportunity.

5) SCHEDULE

* 23 February 2012: 2011 full-year revenues and results
* May 2012: First quarter revenues
* July 2012: 2012 half-year revenues and results

CONSOLIDATED REVENUE (THREE MONTHS)

(EURm)                             3Q 2010   3Q 2011   CHANGE (%)
Rental income                       16.8      17.1       1.9%
Service charge income and other      4.8       8.7
Total Properties revenue            21.6      25.8      19.8%
Finance lease                        6.0       3.9
Property development                 0.0       0.5
Financial and exceptional income     0.2       0.1
Total consolidated revenue          27.9      30.3       8.8%

About the Affine Group:
The Affine Group is a diversified property company specialised in commercial
property. It holds assets comprising, at the end of June 2011, 98 buildings
with an estimated value of EUR1,065m and a total surface area of 754,000 sqm.
The Group mostly owns office property (58%), commercial property (20%) and
warehouses (16%).

Its activity is split between Affine (53%), active in French regions outside
Paris, AffiParis (21%), SIIC - French listed real estate investment trust -
specialised in Paris property, and Banimmo (26%), a Belgian property
development company located in Belgium, France and Luxembourg.

The Affine Group also includes Concerto Développement, a subsidiary specialised
in arranging development and investment transactions for logistics property in
Europe.

In 2003, Affine adopted the special tax treatment applicable to French real
estate investment trusts (SIIC). The Affine share is listed on NYSE Euronext
Paris (Ticker: IML FP / BTTP.PA; ISIN code: FR0000036105) and admitted to the
deferred settlement system (long only). The Affine share is included in the CAC
Mid&Small, SIIC IEIF and EPRA indices. AffiParis and Banimmo are also listed on
NYSE Euronext. www.affine.fr

Contact
INVESTOR RELATIONS
Frank Lutz
+33 (0)1 44 90 43 53 - frank.lutz@affine.fr

PRESS RELATIONS
Citigate Dewe Rogerson - Agnès Villeret
+33 (0)1 53 32 78 95 - agnes.villeret@citigate.fr

   A FRENCH SOCIÉTÉ ANONYME WITH SHARE CAPITAL OF EUR53,100,000 - REGISTERED
                   OFFICE: 5 RUE SAINT-GEORGES, 75009 PARIS
       TEL: 01 44 90 43 00 - FAX: 01 44 90 01 48 - EMAIL: INFO@AFFINE.FR
         712 048 735 RCS PARIS - INTRACOMMUNITY VAT NO. FR92712048735

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AFFINE (EPA:IML) Affine - 3Q11 - Moderate rise in rents on a like-for-like basis (+2.9%)

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