COVIVIO HOTELS (EPA:COVH) - Results growth €390 million securitised assets sold

Transparency directive : regulatory news

19/07/2011 17:54

19 July 2011

Results growth EUR390 million securitised assets sold

                                         30 June 2011  30 June 2010   Change
                                                                        (%)
Rental income in EUR million                   103.1        100.5      +2.5%
EPRA recurring net income in EUR million        61.5         51.7     +18.9%
EPRA recurring net earnings per share           1.09         1.04      +4.8%
                                                                           *
Group share of net income                      158.5         24.5      +547%

* increase in the average number of shares between 2010 and 2011 as a result of
  the capital increase in the second half of 2010.

                                       30 June 2011  31 December 2010  Change
EPRA NAV per share                             25.9         25.0        +3.9%
EPRA NNNAV per share                           23.0         21.6        +6.2%
LTV                                           50.1%        54.3%      -420 bps
ICR                                            2.65         2.31        +0.34

The short-form semi-annual consolidated financial statements have been audited.
The statutory auditors' report will be 1 issued after the procedures required
for publishing the half-yearly financial statements have been completed.

Sustained activity

- Diversification of Foncière des Murs hotel partners

In the first half of 2011, Foncière des Murs finalised the acquisition of 18
B&B hotels in Germany, in accordance with the memorandum of understanding
signed in July 2010. These hotels have a total value of EUR63 million. The
rents are fixed and indexed.

During the first half of 2011, Foncière des Murs also completed the acquisition
of a portfolio of 32 Campanile hotels in France from the Louvre Hôtels Group,
at lease payments varying according to revenue.
The transaction was for a total amount of EUR1 70.4 million (including works),
80.1% of it carried by Predica and Pacifica and 19.9% by Foncière des Murs.

These transactions show an average return in excess of 7%.

- EUR390 million in sales and signed sale commitments

In the first half of 2011, Foncière des Murs decided to accelerate its
disposals programme in order to optimise its financial structure and to reduce
its exposure to variable rents:

- by selling 11 assets (including 9 hotels) during the first half of 2011 for
a net sale value of EUR86 million, generating a margin of 3.8% over the
appraised value at 31 December 2010;

- by signing memorandums of understanding on the sales of individual assets and
portfolios in the total amount of EUR303.5 million, with an overall margin of
3.8%.

Sales and sale agreements of individual assets were completed on behalf of
private investors as well as for franchises and operators.

Two portfolios of hotels operated by Accor were under agreement for sale. The
sales were completed in the second half of 2011.
The first portfolio, consisting of 10 French assets with a total value of
EUR142 million excluding transfer duties will be sold to subsidiaries that are
80.1% owned by Crédit Agricole Assurances and 19.9% by Foncière des Murs, the
latter to remain the asset manager of these assets.
The second portfolio consists of 6 assets (4 in France and 2 in Belgium) with
a total value of EUR132.9 million excluding transfer duties. The pool is made
up of French institutions.

Once these sales have been completed, the value of Foncière des Murs' portfolio
will present 52% of variable rents, close to the target of 50%.

Continuing results growth

- Net EPRA recurring income of EUR61.5 million, up 18.9%

On a like-for-like basis, Foncière des Murs rental income grew by 3.3% and
includes a 5.3% increase in hotel revenue in the first half of the year.

EPRA recurring net income was EUR61.5 million, compared to EUR51.7 million at
30 June 2010, an increase of 18.9%. Based on the average number of shares over
the semester, EPRA recurring net income per share was EUR1.09 million at
30 June 2011, compared to EUR1 .04 million at 30 June 2010, an increase of
4.8%.

- NAV of EUR1,463.9 million, up +3.0%:

At 30 June 2011, Foncière des Murs wholly owned assets were valued at EUR3,180
million excluding transfer duties, up 1.8% over 31 December 2010, or +2.5% on
a like-for-like basis. These assets returned 6.4% excluding transfer duties.

This increase is explained primarily by:

- the continuing growth in revenue from hotel operations in the first half of
2011 and the transactions completed;
- the acquisition of a portfolio of B&B hotels in Germany, valued at EUR63
million excluding transfer duties.

EPRA NAV was EUR1,463.9 million or EUR25.9/share, compared to EUR1,409.4
million or EUR25.0/share at 31 December 2010, an increase of 3.9%.

EPRA NNNAV was EUR1,297.4 million or EUR23.0/share, compared to EUR1,221.5
million or EUR21.6/share at 31 December 2010, an increase of 6.2%.

- LTV of 50.1%, down sharply

The financial situation of Foncière des Murs was significantly strengthened,
reflecting the impact of the increases in value and the disposals completed.
After incorporating promised transactions, net debt represents 50.1% of the
value of assets, compared to 54.3% at 31 December 2010.

The average debt rate also declined to 4.22%, compared to 4.43% at 31 December
2010.

ICR was 2.65 at 30 June 2011, compared to 2.31 at 31 December 2010.

Confirmation of 2011 objectives

Foncière des Murs aims to complete its sales in the second half of 2011, to
continue improving its financial situation, and to profit from opportunities
for growth.
Besides, Foncière des Murs will continue to support its tenants in their
development and asset expansion projects.
Foncière des Murs expects its recurring net income to increase favorably in
2011.

About Foncière des Murs
Foncière des Murs SCA, a subsidiary of Foncière des Régions, is an SIIC
(société d'investissements immobiliers cotée) specialised in business
premises, especially in the hotel, restaurant, healthcare and leisure sectors.
At 30 June 2011, the company's assets were valued at EUR3.2 billion. The
average length of leases was 8.5 years and the occupancy rate was 100% with
top-tier tenants. The company's investment policy is focused on building
partnerships with leading operators in each sector to pro vide its shareholders
with a recurring return on their investment.
Foncière des Murs is a partnership limited by shares (société en commandite
par actions) headed by Dominique Ozanne. Foncière des Murs is listed on
Euronext Paris, Eurolist compartment A (FR0000060303 - FMU).

Contact:
Foncière des Murs

Cécile Boyer - General Secretary
Tel.: 01 58 97 54 47
cecile.boyer@fdr.fr

See this press release at www.foncieredesmurs.fr.

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COVIVIO HOTELS (EPA:COVH) - Results growth €390 million securitised assets sold

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