AFFINE (EPA:IML) 1Q17 - Stability of rents on like-for-like basis

Transparency directive : regulatory news

19/04/2017 18:00

Paris, 19 April 2017, 6:00 pm

                   Quarterly information as at 31 March 2017

                   STABILITY OF RENTS ON LIKE-FOR-LIKE BASIS

1) CHANGE IN GROSS RENTAL INCOME

(EURm)                  Q1 2016   Q2 2016   Q3 2016   Q4 2016   Q1 2017

Gross rental income         8.6       8.6       8.8       8.7       8.4
Change /
Previous quarter            6.9%      0.1%      2.4%     -1.0%     -2.9%

Affine has continued its programme to concentrate and rejuvenate its portfolio.

In the first quarter of 2017, gross rental income was stable on a like-for-like
basis (+0.4%) from the previous quarter (Q4 2016). The sales completed during
the last quarter of 2016 (Aulnay-sous-Bois and Aix-les Milles) and the first
quarter of 2017 (Tremblay-en-France) led to a 2.9% decline in gross rental
income.

Compared with the same period last year (Q1 2016), gross rental income fell by
1.5%, but remained quasi- stable (-0.3%) on a like-for-like basis.

2) ACTIVITY

In the first quarter, Affine has signed 3 new leases for a total area of 500
sqm and total annual rent of EUR0.1m. In addition, 2 tenants left their
premises, representing a total area of 300 sqm and an annual rent of EUR0.1m.
Lastly, there were 4 renegotiations for leases representing a total of EUR0.5m
in rents (after renegotiation - full-year impact: +EUR0.3m). Overall, rents
should increase by EUR0.3m in 2017.

As announced at the time of publication of the annual results, one tenant
issued notice of termination with an impact of EUR0.4m for 2017.

The strategy to rejuvenate the portfolio resulted on one hand in the
acquisition of two office buildings on a turnkey basis in Q1 - the Kibori
building in Nantes and the #hashtag in Lille (see press releases of 21 February
and 11 April) - and on the other hand the sale of the Tremblay-en-France
complex, for office and warehouse use, at a price equal to the fair value at
the end of 2016.

3) FINANCING

The financial structure has not significantly changed compared to 31 December
2016.

Over the period, Affine set up two financing for the acquisition of the turnkey
projects, and two refinancing arrangements for offices in Lyon and in
Corbeil-Essonnes, for a total of EUR31.8m.

4) OUTLOOK

Over the quarter, the volume of transactions initiated was close to EUR25m
including the commitment to acquire the last floor of the Lilleurope tower.
These transactions represent total potential annual rent of EUR1.7m. Other
projects are being studied, both for turnkey projects and for high yields
buildings.

Affine is pursuing its strategy of investments (primarily in the office
segment) and balanced development between Paris Métropole and six regional
metropolitan areas (Bordeaux, Lille, Lyon, Marseille, Nantes and Toulouse), in
a fiercely competitive environment for investors.

The company confirms its intention to pay a dividend of EUR1 per share for
fiscal 2017.

5) CALENDAR

- 27 April 2017: Annual General Meeting
- 11 May 2017: Dividend payment (EUR1.0*)
- 31 July 2017: 2017 half-year revenues and earnings (before trading)
- 18 October 2017: Third quarter revenues (after trading)

(*) Will be submitted to a vote by the General Meeting of 27 April 2017

CONSOLIDATED REVENUE (THREE MONTHS)

(EURm)                   Q1 2016    Q1 2017     Change
Gross rental income        8.6        8.4        -1.5%

ABOUT AFFINE

Affine is a property company specialising in commercial property. At the end of
2016, it directly owned 43 buildings with a total value of EUR519m (excl. tax)
and a total floor area of 358,200 sqm. The company owns office properties
(66%), retail properties (23 %) and warehouses and business premises (11 %).
Its assets are distributed more or less equally between Ile- de France and
other regions in France.

Affine is also the major shareholder (49.5%) of Banimmo, a Belgian property
repositioning company with operations in Belgium and France. At the end of
December 2016, Banimmo had total assets of 18 office and commercial buildings,
with a value of EUR238m (taxes included).

Total Group assets are EUR791m (including transfer taxes).

In 2003, Affine opted for French real estate investment trust ('SIIC' or
'Sociétés d'Investissements Immobiliers Cotées') status. Affine's shares are
listed on NYSE Euronext Paris (ticker: IML FP/BTTP.PA; ISIN code: FR0000036105)
and eligible for the Deferred Settlement Service (long only). It is included in
the CAC Mid&Small, SIIC IEIF and EPRA indexes. Banimmo is also listed on NYSE
Euronext.

To find out more: www.affine.fr/en/.Follow our news thread on:
https://twitter.com/Groupe_Affine

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

PRESS RELATIONS
Dentsu Consulting - Alexandra Richert
+33 (0)1 41 16 42 67 - alexandra.richert@dentsuaegis.com

Quarterly revenue Q1 2017

AFFINE's latest news

14/12/2018 18:00

AFFINE (EPA:IML) 1Q17 - Stability of rents on like-for-like basis

Transparency directive : regulatory news

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