AFFINE (EPA:IML) Affine - FY11 - Net profit up 57%

Transparency directive : regulatory news

22/02/2012 18:00

Paris, 22 February 2012, 6:00 p.m.

                        2011 Annual consolidated results

                                NET PROFIT UP 57%
                        CURRENT OPERATING PROFIT STABLE
                                  NAV UP 2.0%
                                   DEBT DOWN

KEY FIGURES

(EURm)                                              2009       2010        2011
Net rental income                                   44.9       42.6        43.1
Current operating profit                            34.2       34.4        34.6
Net profit                                          (4.6)      10.5        16.6
EPRA earnings                                       15.6       16.0        18.5
Fair value of assets (incl. taxes)                 801.5      725.0       709.0
EPRA net asset value per share (excl. taxes) (EUR)  31.4       30.3        29.0

Since 1 October 2011, the sub-group Banimmo and Jardins des Quais have been
consolidated in Affine's financial statements using the equity method. In order
for the financial statements of the period to be clear and able to be compared
with those of previous periods, the statements summarised above are pro forma
statements in which the sub-group Banimmo and Jardins des Quais are
consolidated using the equity method on a full-year basis for the three years
shown. These statements are included in the notes to the consolidated
statements audited by the statutory auditors.

At its meeting of 21 February 2012, Affine's Board of Directors approved the
company and consolidated financial statements for the period ending 31 December
2011. The audit procedures are in the process of finalisation.

In 2011 Affine successfully:

streamlined the Group (the consolidation of AffiParis, in which Affine now
   holds an 87% stake, will be continued);

improved the clarity of its statements;

reduced the vacancy rate from 12.2% to 11.0%,

refocused its portfolio on fewer buildings representing greater potential;

lowered its LTV.

1) SHARP RISE IN NET PROFIT

Net profit was up sharply at EUR16.6m versus EUR10.5m in 2010. It benefited
from a recovery in the fair value of the buildings (+EUR1.7m versus -EUR3.8m),
capital gains on disposals mainly relating to the building on rue Chapon, and
the decline in the cost of debt (EUR18.2m versus EUR19.6m).

Net rental income posted an increase of 1.1% as a result of better management
of rental expenses and despite a slight reduction in the group's number of
assets.

Current operating profit remained stable (+0.4%); the 8.5% reduction in
operating expenses (EUR12.0m versus EUR13.1m) offset the natural erosion of
income from finance lease programmes (EUR2.4m versus EUR2.9m) and the drop in
earnings from property development activities (EUR1.3m versus EUR2.2m,
excluding inventory impairment).

Adjusted for exceptional items such as fair value changes and capital gains or
losses on disposals, EPRA earnings amounted to EUR18.5m versus EUR16.0m in
2010.

Operating cash flow stood at EUR48.3m versus EUR39.6m for the same period in
2010.

2) SLIGHT INCREASE IN NET ASSET VALUE

In 2011 the fair value of investment properties amounted to EUR709m (including
transfer taxes), down slightly (-2.2%) compared with the end of 2010.
Investments (EUR36.2m) only partially offset disposals (-EUR53.4m).
Like-for-like, fair value remained stable (+0.1%).

As a result, the EPRA Net Asset Value (excluding transfer taxes), minus
quasi-equity (perpetual subordinated loan) and after fair value adjustment of
derivative instruments and deferred taxes, increased by EUR5.7m (+2.0%) over
the previous period to stand at EUR287.6m at the end of 2011. Per share
(excluding treasury stock and after dilution of convertible bonds), NAV fell
from EUR30.3 to EUR29.0 after 514,076 new shares were issued to partially pay
the dividend. Including transfer taxes, EPRA NAV stood at EUR326.5m or EUR32.9
per share.

3) DROP IN BORROWINGS

During the period the Group arranged almost EUR51m in new loans with six French
banks. The average cost of debt for 2011 was 2.9%, or 4.0% including hedging
costs. The average term of debt was 5.7 years.

At 31 December 2011, the Group's net debt amounted to EUR435m (versus EUR465m
at the end of 2010), representing 1.2 times the amount of equity capital. For
the property business itself, the LTV ratio (net bank debt divided by the
buildings' market value, including transfer taxes but excluding off-plan sales,
plus affiliates' equity) came to 50.8% versus 51.5% in 2010.

4) HIGH RETURN

Pour 2011 the Group wants to return to distribution levels more in line with
company policy, having paid an exceptionally high dividend in 2010: the
dividend suggested at the General Shareholders' Meeting is therefore EUR10.8m,
or EUR1.2 per share, which produces a return of 9.6% based on the share price
at the end of 2011.

5) OUTLOOK

The uncertainties on the global economy, both in terms of growth and the
capacity of the financial system, confirm Affine's choice of a cautious
expansion.

Affine's priorities in 2012 will focus on identifying investments with strong
value creation potential, continuing to streamline rental management,
particularly by improving the Group's processes, and finalising the 2012
refinancing programme, 90% of which has already been set up.

6) SCHEDULE

27 April 2012: Annual General Meeting

May 2012: First quarter revenues

May 2012: Dividend payment

July 2012: 2012 Half-year revenues and results

November 2012: Third quarter revenues

CONSOLIDATED EARNINGS

(EURm) (1)                                 2009           2010         2011
Gross rental income                        54.4           50.0         48.3
Net rental income                          44.9           42.6         43.1
Other income                                3.8            5.1          3.6
Operating expenses                        (14.3)         (13.1)       (12.0)
Current EBITDA(2)                          34.4           34.6         34.7
Current 0perating profit                   34.2           34.4         34.6
Other income and expenses                  (0.6)          (4.2)        (2.6)
Net profit or loss on disposal              1.5           (0.5)         2.9
Operating profit (before value adj.)       35.2           29.7         34.9
Balance net of value adjustments          (36.3)          (3.8)         1.7
Net 0perating profit                       (1.1)          25.9         36.6
Net financial cost                        (19.5)         (19.6)       (18.2)
Fair value adjustments of hedging instr.   (5.4)          (0.1)        (2.3)
Taxes                                       4.1            0.3         (0.4)
Miscellaneous (3)                          17.3            4.1          0.9
Net profit                                 (4.6)          10.5         16.6
Net profit - Group share                   (2.9)          10.3         15.3

(1) Based on IFRS standards and EPRA recommendations
(2) Current EBITDA represents the current operating profit excluding current
depreciation and amortisation costs. This amount does not include depreciation
of development operations in 2011 and 2010 for EUR3.0m and EUR5.4m respectively,
which are included in other income and expenses.
(3) Share of affiliates, net profit from operations that have been discontinued
or are undergoing disposal, and other financial income and expenses.

EPRA EARNINGS

(EURm)                                           2009         2010        2011
Net profit - Group share                         (2.9)        10.3        15.3
Value adjustments for investment properties      32.8          3.8        (1.7)
Net profit or loss on disposal                   (1.5)         0.5        (2.9)
Goodwill adjustment                               3.5          0.0         0.0
Fair value adjustments of hedging instr.          5.4          0.1         2.3
Associates non-cash item                         (8.2)        (1.1)        1.3
Net profit from discontinued operations           0.8         (1.2)        0.0
Non-current tax, deferred and exit tax           (4.3)        (0.4)        0.5
Other non-recurring items                        (8.4)         4.3         3.0
Minority interests in above items above          (1.6)        (0.4)        0.8
EPRA earnings (4)                                15.6         16.0        18.5

(4) The European Public Real Estate Association (EPRA) issued Best Practices
Policy Recommendations in October 2010, which give guidelines for performance
measures. As detailed in the EPRA adjustments note, the EPRA earnings measure
excludes the effects of changes in fair value, gains or losses on sales and
other non-recurring items.

About the Affine Group

A property company specializing in commercial real estate, Affine and its
subsidiary AffiParis own and manage directly 70 properties worth EUR709m, with
a total surface area of 556,000 sqm. The firm mostly owns office properties
(60%), retail properties (11%) and warehouses (27%). Its activity is
distributed more or less equally between Ile-de France and the other French
regions.

Affine is the reference shareholder of Banimmo, a Belgian property
repositioning company with a presence in Belgium, France and Luxembourg, and of
Concerto European Developer, a subsidiary specializing in managing development
transactions in logistics properties.

In 2003, Affine opted for the 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

Contacts
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

       SOCIETE ANONYME WITH 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 - EU VAT NO. FR92712048735

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AFFINE (EPA:IML) Affine - FY11 - Net profit up 57%

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