COVIVIO HOTELS (EPA:COVH) - Strong deleverage due to sales : LTV down to 48,4% Increase in rental income and values

Transparency directive : regulatory news

09/02/2012 17:51

9 February 2012

            Strong deleverage due to sales : LTV down to 48,4%
                    Increase in rental income and values

                                31 December 2011   31 December 2010  Change (%)
Rental income in EUR million             203,6          203,5          +3,4%
                                                                  like-for-like
EPRA net recurring result
in EUR million                           120,8          107,2         +12.6%
EPRA net recurring result
per share                                 2,14 EUR       2,10 EUR      +1.9%(*)
Net income, group share                  141,3          260,7           ns

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

                                31 December 2011   31 December 2010   Change
Portfolio valuation                   2 949              3 124        +3,8%
                                                                 like-for-like
EPRA NAV (EUR millions)             1 523,2            1 409,4        +8,1%
EPRA NAV per share                     27,0               25,0        +8,1%
LTV                                    48,4%              54,3%      -590 bps

Dynamic asset management

Foncière des Murs, subsidiary of Foncière des Régions, is showing strong
rental performances and appraisal values despite the economic context,
demonstrating the relevance of its position.

- Rental income up 3.4% on a like-for-like basis

The increase in rental income on a like-for-like basis is due to the following
items:

- Good performances of our tenants : variable rents (+4,3% on a like-for-like
  basis on Accor portfolio), on-going adaptation of retail brands to their
  markets
- 2.25% indexation of fixed rents in health and retail premises sectors
- Occupancy rate 100%

The consolidated annual financial statements have been audited. The statuory
auditors' report will be issued after al the specific procedures have been
performed.

- EUR 422 million in sales and sales commitments

In 2011, Foncière des Murs decided to set up a disposals plan with two goals,
asset turnover and deleverage:
- by selling 30 assets for a net sale value of EUR359 million,
- by signing memorandums of understanding on the sales of 12 assets in the total
amount of EUR 63 million, generating an overall margin of 3.7% over the
appraisal values  at 31 December 2010.

Sales and sale agreements of assets were completed on behalf of institutional
investors, private investors as well as operators.

Diversification of Foncière des Murs hotel partners

In 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 EUR67 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 EUR170.4 million (including works),
80.1% of it carried by Predica and Pacifica and 19.9% by Foncière des Murs.

These transactions show an average yield of 7%.

Deleverage (-14%) allowing a decrease in LTV to 48,4%

The financial structure of Foncière des Murs was significantly strengthened,
reflecting the impact of the increases in value and the disposals completed.
After incorporating sales commitments, net debt represents 48.4% of the value of
assets, compared to 54.3% at 31 December 2010.

The average debt rate also declined to 4.39%, compared to 4.43% at 31 December
2010. ICR was 2.58 at 31 December 2011, compared to 2.31 at 31 December 2010.

Continuing results growth

- Net EPRA recurring income of EUR120.8 million, up 12.6%

EPRA recurring net income was EUR120.8 million, compared to EUR1 07.2 million at
31 December 2010, an increase of 12.6%. Based on the average number of shares
over the year, EPRA recurring net income per share was EUR2.14 at
31 december 2011, compared to EUR2.10 at 31 December 2010, an increase of 1.9%.

- NAV of EUR 1 523 million, up 8.1%:

At 31 December 2011, Foncière des Murs wholly owned assets were valued at EUR2
949 million excluding transfer duties, compared to EUR 3 124 million at
31 December 2010. This decrease is due to the impact of the sales plan. On a
like-for-like basis, the portfolio was up +3.8% compared to 31 December 2010.
These assets show a yield of 6.3% excluding transfer duties.

EPRA NAV was EUR1523.2 million or EUR27/share, compared to EUR1,409.4 million
or EUR25.0/share at 31 December 2010, an increase of 8.1%.

EPRA NNNAV was EUR1,278 million or EUR22.6/share, compared to EUR1,221.5
million or EUR21.6/share at 31 December 2010, an increase of 4.6%.

- Dividend up 3.4%, to 1,50 EUR/action

For fiscal year 2011, a proposal will be made to the General Shareholders'
Meeting to pay a dividend of EUR 1.50/share, i.e., a total dividend of
EUR 84.6 million, up 3.4% over the 2010 dividend of EUR 81.8 million, or
EUR 1.45/share.
The total proposed dividend represents 70% of net recurring result.

Outlook 2012

Foncière des Murs aims to continue improving its financial structure and to
profit from growth opportunities in the business premises sector.

About Foncière des Murs
Foncière des Murs SCA, a subsidiary of Foncière des Régions, is specialised
in business premises, especially in the hotel, healthcare and retail premises
sectors. At 31 December 2011, the company's assets were valued at EUR2.9
billion. The average length of leases was 8 years and the occupancy rate was
100% with top-tier tenants.
Partner of leading companies of the business premises sector, Foncière des Murs
is headed by Dominique Ozanne, General Manager and Member of the Board of
Directors of Foncière des Régions.

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) - Strong deleverage due to sales : LTV down to 48,4% Increase in rental income and values

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