COVIVIO HOTELS (EPA:COVH) - Strengthened financial structure - Slight increase in like-for-like rental income
Transparency directive : regulatory news
16/07/2012 18:00
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PRESS RELEASEParis, 16 July 2012
Strengthened financial structure
Slight increase in like-for-like rental income
Strengthened financial structure enabled the LTV ratio to drop to 40.4%
* Successful capital increase of EUR125 million
During the 1st quarter of 2012, Foncière des Murs, a Foncière des Régions
subsidiary, completed a capital increase of EUR125 million, with the support of
its main shareholders.
This capital increase gave Foncière des Murs the necessary funds to take
advantage of investment opportunities, as well as to increase its financial
flexibility by strengthening its equity capital.
* EUR230 million in new funds, which covers all loans maturing in 2013
At the beginning of July 2012, Foncière des Murs signed a refinancing agreement
for a total amount of EUR230 million with Natixis and CACIB, covering all loans
maturing in 2013. The new debt has a 5-year maturity.
* EUR202 million in asset sales, at a price 3.5% higher than the appraised
value
Properties amounting to EUR202 million were sold during the half-year at a price
3.5% higher than the appraised valuations. These sales involved 47 properties
including:
- 18 hotels including the buildings and business assets, for EUR88 million
- 10 Healthcare properties for EUR76 million
- 19 operating retail properties, as single units or as part of portfolios,
for EUR38 million
These asset sales, which were realised directly, satisfy two objectives, namely
asset rotation and debt reduction, in line with the 2011 asset sales.
As a result, Foncière des Murs' financial structure was markedly strengthened,
with an LTV ratio of 40.4% compared with 45.8% as at 31 December 2011. LTV ratio
dropped by 10 points compared to 31 December 2010.
The accounts have been approved by the Supervisory Board on July 16, 2012. The
short-form semi-annual consolidated financial statements have been audited. The
statutory auditors' report will be issued after the procedures required for
publishing the half-yearly financial statements have been completed.
31 December 2011 30 June 2012 Change
LTV (excluding transfer duties) 48.4% 42.7% -570 bps
LTV (including transfer duties) 45.8% 40.4% -540 bps
Debt maturity increased slightly to 2.7 years.
Lastly, interest cover (ICR) amounted to 2.59 as at 30 June 2012, i.e. unchanged
compared with the end of 2011.
Slight increase in rental income: 0.3% like-for-like increase
(EUR million) H1 2012 H1 2011 Change (in % Change Like-for-like
EUR million) % change
Hotels 47.0 60.0 -13.0 -21.7% -2.5%
Retail 22.1 21.7 0.4 1.8% 2.3%
Healthcare 13.4 13.5 -0.1 -0.6% 5.5%
Leisure 8.3 8.0 0.3 3.4% 3.4%
Rental income 90.7 103.1 -12.4 -12.0% 0.3%
First half 2012 rental income decreased by EUR12.4 million in absolute value
terms, which primarily reflects the impact of the 2011 and early 2012 disposals,
mainly in the hotels sector. On a like-for-like basis, rental income increased
by 0.3% over the half-year, despite the depressed economic context.
Net recurring EPRA income of EUR55 million, and EPS of EUR0.92
Net recurring EPRA income amounted to EUR55 million, down 10.5% from EUR61.5
million in first half 2011. This decrease reflects the impact of the arbitrage
and deleveraging strategy (asset sales amounting to EUR620 million since the
beginning of 2011). On a per share basis, first half 2012 net recurring EPRA
income amounted to EUR0.92, down 15.4% from EUR1.09 in first half 2011.
Meanwhile, net income, Group share, came in at EUR260.7 million compared with
EUR158.5 million for first half 2011.
H1 2011 H1 2012 % Change
Recurring net EPRA income (EUR millions) 61.5 55.0 -10.5%
Recurring net EPRA earnings per share EUR1.09 EUR0.92 -15.4%*
Net income, Group share 158.5 260.7 n/a
*The average number of shares increased between 2011 and 2012, following the
April 2012 capital increase.
NAV of EUR1,631 million, up 7.1%
Wholly-owned assets were valued at EUR2,887 million (excluding charges) as at
30 June 2012, compared with EUR2,949 million as at 31 December 2011. This change
reflects the impact of the asset sale programme. On a like-for-like basis, NAV
increased by 1.2% compared with the end of 2011, and posted an average yield of
6.3% (excluding charges).
EPRA NAV increased by 7.1% to EUR1,630.9 million (i.e. EUR25.40 per share), up
from EUR1,523.2 million (i.e. EUR27.00 per share) at the end of 2011. The EPRA
Triple Net NAV increased by 7.2% to EUR1,369.6 million (i.e. EUR21.30 per
share), up from EUR1,278 million (EUR22.60 per share) at the end of 2011. The
change in NAV per share relating to the dilutive effect of the capital increase
amounted to EUR1.30 per share.
31 December 2011 30 June 2012 Change
Net asset value 2,949 2,887 +1.2% like-for-like
EPRA NAV 1,523.2 1,630.9 +7.1%
EPRA NAV per share 27.00 25.40 -5.9%*
LTV (excluding charges) 48.4% 42.7% -570 bps
LTV (including charges) 45.8% 40.4% -540 bps
*The number of shares increased between 2011 and 2012, following the April 2012
capital increase.
Outlook for 2012
Foncière des Murs confirms its objective to improve its financial structure,
while continuing to benefit from the development opportunities in the business
properties sector, particularly in the hotel industry.
Indeed, in June 2012, Foncière des Murs entered into exclusive negotiations
with ANF, in partnership with La Française Rem, for the purchase of 167 B&B
hotels.
CONTACTS
Cécile Boyer Sébastien Bonneton
Tel: +33(0)1 58 97 54 47 Tel: + 33 (0)1 58 97 52 44
cecile.boyer@fdr.fr sebastien.bonneton@fdr.fr
About Foncière des Murs
Foncière des Murs, a subsidiary of Foncière des Régions, specialises in the
ownership of business premises, especially in the hotel, healthcare, and retail
sectors. As a listed real estate investment company (SuIC), Foncière des
Régions is a real estate partner for major players in the business properties
sector. Foncière des Murs owns net assets amounting to EUR2.9 billion.
www.foncieredesmurs.fr
About Foncière des Régions
As a major player in the office and key accounts properties sector, Foncière
des Régions owns and manages a EUR9 billion portfolio that is primarily leased
to key accounts who are leaders in their business sectors, including SUEZ
Environnement, Thales, Dassault Systèmes, France Telecom, EDF, and Accor, etc.
While partnering companies in their real estate strategies, Foncière des
Régions works with clients to develop innovative and sustainable real estate
solutions.
www.foncieredesregions.fr
APPENDICES
Appraised value as at 30 June 2012
Like-for-
like change Yield
Value at Value at over 6 (excluding
(in EUR millions) 31.12.2011 30.06.2012 months charges)
Hotels 1,658 1,573 0.7% 6.2%
Healthcare 348 356 2.2% 6.4%
Retail 689 702 1.9% 6.3%
Leisure 253 255 0.7% 6.6%
Total directly-owned portfolio 2,949 2,887 1.2% 6.3%
Total portfolios owned
via partnerships 622 675 4.2% 6.3%
Total portfolio under management 3,571 3,562 1.8% 6.3%
Terms of debt
Net debt
down 11% compared with 31.12.2011 EUR1,324 m
Average cost of debt
4.39% as at 31.12.2011 4.54%
Average debt maturity
up 0.1 year compared with 31.12.2011 2.7 years
Active hedging debt ratio 98.4%
Net asset value
31.12.2011 30.06.2012 2011/2012
Change
EPRA Triple net NAV (EURm) 1,278.0 1,369.6 +7.2%
EPRA Triple net NAV per share (EUR) 22.6 21.3 -5.8%
EPRA NAV (EURm) 1,523.2 1,630.9 +7.1%
EPRA NAV per share (EUR) 27.00 25.40 -5.9%
Analysis of the change in NAV
Reconciliation of net income to recurring net income
Recurring net
EUR millions Net income Restatements income
RENTAL INCOME 90.7 90.7
UNRECOVERED LEASE EXPENSE -0.1 -0.1
BUILDING EXPENSES -1.5 -1.5
EXPENSES NET OF UNRECOVERABLE
RECEIVABLES 0.1 0.1
NET RENTAL INCOME 89.2 - 89.2
-
MANAGEMENT AND ADMINISTRATION INCOME 0.9 - 0.9
BUSINESS-RELATED EXPENSES -0.5 -0.5
OVERHEADS -3.7 -3.7
DEVELOPMENT EXPENSES - - -
OPERATING COSTS -3.3 - -3.3
-
NET CHANGE IN PROVISIONS AND
OTHER ITEMS 0.0 -0.0 -
OPERATING INCOME FROM CONTINUING
OPERATIONS 86.0 -0.0 85.9
PROCEEDS FROM ASSET SALES 102.0 -102.0 -
BOOK VALUE OF ASSETS SOLD -101.1 101.1 -
NET GAINS/LOSSES FROM ASSET SALES 0.8 -0.8 -
REVALUATION INCREASE IN INVESTMENT
PROPERTIES 29.0 -29.0 -
REVALUATION DECREASE IN INVESTMENT
PROPERTIES -3.7 3.7 -
NET REVALUATION INCREASE / DECREASE 25.3 -25.3 -
-
NET GAINS / LOSSES FROM SALE OF
SECURITIES - - -
-
OPERATING INCOME 112.1 -26.2 85.9
NET COST OF FINANCIAL DEBT -33.1 -33.1
ADJUSTMENT TO THE VALUE OF DERIVATIVE
INSTRUMENTS, PAYABLES AND RECEIVABLES -27.2 27.2 -
DISCOUNTING OF PAYABLES AND RECEIVABLES -1.2 1.2 -
NET CHANGE IN FINANCIAL AND OTHER
PROVISIONS -1.8 1.8 -
SHARE OF INCOME FROM EQUITY ASSOCIATES 6.6 -4.3 2.4
NET INCOME BEFORE TAX 55.4 -0.2 55.2
DEFERRED TAX -2.4 2.4 -
CORPORATE INCOME TAX -0.2 -0.2
NET INCOME FOR THE YEAR 52.9 -2.6 55.0
MINORITY INTERESTS 0.0 -0.0 -
NET INCOME FOR THE PERIOD, GROUP SHARE 52.8 -2.6 55.0
Consolidated balance sheet
EUR millions Net Net
30 June 12 31 Dec 11
GOODWILL
INTANGIBLE ASSETS -{}-
TANGIBLE ASSETS
Operating properties
Other tangible assets 0.0 0.0
Assets in progress
INVESTMENT PROPERTIES 2 557.6 2 593.6
FINANCIAL ASSETS 7.0 7.0
INVESTMENTS IN EQUITY
ASSOCIATES 67.2 61.1
DEFERRED TAX ASSETS 1.0 1.2
FINANCIAL INSTRUMENTS 7.0 7.4
TOTAL NON-CURRENT ASSETS 2,639.8 2 670.3
ASSETS HELD FOR SALE 328.7 355.1
LEASING LOANS AND RECEIVABLES
INVENTORIES AND WORK-IN-
PROGRESS
TRADE RECEIVABLES 14.7 14.5
TAX RECEIVABLES 0.0 4.1
OTHER RECEIVABLES 5.6 3.8
PREPAID EXPENSES 1.3 0.7
CASH AND CASH EQUIVALENTS 20.6 1.2
TOTAL CURRENT ASSETS 370.8 379.3
TOTAL ASSETS 3,010.6 3,049.6
Year Year
30 June 12 31 Dec 11
CAPITAL 256.9 225.8
PREMIUMS 502.6 410.3
TREASURY SHARES -0.1 -0.1
CONSOLIDATED RESERVES 557.4 500.7
NET INCOME 52.8 141.3
TOTAL GROUP SHAREHOLDERS'
EQUITY 1,369.6 1,278.0
MINORITY INTERESTS -1.9 -1.9
TOTAL SHAREHOLDERS' EQUITY 1 367.7 1 276.1
LONG-TERM BORROWINGS 1 308.7 1 464.7
FINANCIAL INSTRUMENTS 217.5 205.2
DEFERRED TAX LIABILITIES 47.8 45.7
PENSION AND OTHER COMMITMENTS 0.0 0.0
OTHER PAYABLES 1.5 4.1
TOTAL NON-CURRENT LIABILITIES 1,575.5 1,719.7
LIABILITIES HELD FOR SALE
TRADE PAYABLES 9.4 8.6
SHORT-TERM BORROWINGS 35.2 30.8
SECURITY DEPOSITS
ADVANCES & PREPAYMENTS 0.2 0.5
ST PROVISIONS
CURRENT TAXES 0.2 0.1
OTHER PAYABLES 21.6 13.7
ADJUSTMENT ACCOUNTS 0.8 0.1
TOTAL CURRENT LIABILITIES 67.4 53.8
TOTAL LIABILITIES 3,010.6 3,049.6
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