COVIVIO HOTELS (EPA:COVH) - Increase in net equity and 0.8% rise in rental income on a like-for-like basis

Transparency directive : regulatory news

04/05/2012 07:30

Paris, 4 May 2012

Increase in net equity and 0.8% rise in rental income on a like-for-like basis

Rental income on a like-for-like basis: +0.8%

In EUR millions        31 March 2011  31 March 2012  Change (%) Like-for-like
                                                                   change (%)

Hotels*                     26.7          21.6        -19.2%        -1.3%
Health                       6.7           6.8          0.8%         3.7%
Retail                      10.8          11.0          1.9%         2.3%
Leisure                      4.0           4.1          3.4%         3.4%
Total rental income         48.3          43.5         -9.8%         0.8%
Services                     0.5           0.5            -
Total revenue               48.8          44.0         -9.8%

* based on genuine Accor revenue as at 31 March 2011 and 2012 from assets in the
Foncière des Murs portfolio

The rental income of Foncière des Murs had increased by +0.8% on a
like-for-like basis at 31 March 2012.

Consolidated revenue stands at EUR44 million, down 9.8% compared with the 1st
quarter of 2011, mainly due to the volume of disposals made in 2011. The change
in the consolidated revenue primarily resu lts from:

* The positive impact of rental indexation representing EUR0.6 million,
  partially offset by the slight downturn in the revenue of variable-rent
  hotels at -EUR0.3 million

* Acquisitions made in 2011 generating rental income of EUR0.8 million

* The effect of hotel asset disposals with a total impact of - EUR5.9 million

Reinforced financial structure

Successful capital increase of EUR125 million

During the 1st quarter of 2012, Foncière des Murs completed a capital increase
of EUR125 million, with the support of its main shareholders.

This capital increase thus allows Foncière des Murs to have the necessary
financial means at its disposal to take advantage of investment opportunities
and also to increase its financial flexibility by strengthening its equity.

EUR84 million in asset disposals secured, with a margin of +1.1% above the
appraised values

To date, Foncière des Murs has completed disposals and disposal agreements for
a total of EUR84 million. Sales secured by Foncière des Murs are comprised of
the transfer of a portfolio of 9 care homes to BNP REIM, for a total of EUR67.8
million, including transfer duties, and sales of premises and business assets
in partnership with Accor.

All these sales were made directly by the Foncière des Murs teams.

These disposals allow, in keeping with the disposals made in 2011, for the dual
objective of asset rotation and debt reduction to be met.

65% of "green" leases

Signing of green leases with Jardiland

Pioneer of the green lease with Accor and Courtepaille, Foncière des Murs has
continued its policy by signing, at the beginning of 2012, green leases with
Jardiland. First lessor of Jardiland and owner of 57 garden centres, Foncière
des Murs has already applied green leases to more than 65% of its assets.

For Foncière des Murs, the green lease is a value-adding and partnership tool,
which formalises a framework for the exchanges with its tenants regarding
sustainable development matters. In view of its business, Jardiland is
"naturally" sensitive to environmental issues. The signing of green leases is
in line with this logic and reflects the desire of both parties to register
their improvement initiatives as part of a long-term vision.

Outlook for 2012

Foncière des Murs is upholding its objective of optimising its financial
structure, while continuing to benefit from the development opportunities in
the business premises sector, particularly in the hotel industry.

                               Financial timetable:

             16 July 2012: Publication of half-year results for 2012

                             About Foncière des Murs

Foncière des Murs, a subsidiary of Foncière des Régions, specialises in
business premises, especially in the hotel, healthcare and retail sectors. At
31 December 2011, the company's assets were valued at EUR2.9 billion. Its
average lease term is 8 years and its occupancy rate is 100% with first-class
tenants. Real estate partner of the major plaers in the business premises
sector, Foncière des Murs is managed by Dominique Ozanne, CEO and Member of the
Management Committee of Foncière des Régions.

Contact:

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

See this press release at http://www.foncieredesmurs.fr

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COVIVIO HOTELS (EPA:COVH) - Increase in net equity and 0.8% rise in rental income on a like-for-like basis

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