COVIVIO HOTELS (EPA:COVH) - Like-for-like rental income remains stable

Transparency directive : regulatory news

05/11/2012 18:30

PRESS RELEASE

                                                       Paris, 5 November 2012

                   Like-for-like rental income remains stable

Rent stable on a like-for-like basis

In EUR millions       30 September  30 September  Change (%)  Like-for-like
                        2011          2012                     change (%)
Hotels*                 90.0          71.2        -20.8%        -2.4%
Healthcare              20.1          18.8         -6.6%         3.4%
Retail                  32.6          33.2          1.9%         2.4%
Leisure                 12.0          12.4          3.3%         3.3%
Total rental income    154.7         135.6        -12.3%         0.1%
Services                 2.1           1.4          n/a
Total revenue          156.8         137.0        -12.6%

* based on actual Accor revenues at 30 September 2011 and 2012

Rental income for Foncière des Murs is stable on a like-for-like basis on
30 September 2012.

Consolidated revenue stands at EUR137 million, down 12.6% compared with 30
September 2011, mainly due to the volume of sales achieved in 2011 and 2012.
The change in the consolidated revenue primarily results from:

  o The positive impact of rental indexation representing EUR1.7 million,
    partially offset by the downturn in revenue of variable-rent hotels
    (-EUR1.3 million)
  o Acquisitions made in 2011 generating EUR1 million in rental income
  o The impact of sales of hotel and healthcare assets (-EUR20.4 million).

EUR277 million in asset sales, at a price 1.5% higher than the appraised value

Since the beginning of 2012, EUR277 million in asset sales has been made, at a
price 1.5% higher than the appraised value for 2011. These disposals and sale
agreements covered 68 assets, including:
  o 23 hotels including the buildings and business assets, for EUR111 million
  o 9 retirement homes and one clinic, for EUR76 million
  o 35 operating retail properties, as single units or as part of portfolios,
    for EUR90 million.

These asset sales, which were realised directly with varied investors, satisfy
two objectives, namely asset rotation and debt reduction, in line with the 2011
asset sales.

EUR265 million in refinancing transactions made since the beginning of 2012, of
which EUR35 million in Q3

At the beginning of October, Foncière des Murs signed a mortgage loan for EUR35
million with OSEO and LCL, which has a five-year term.

To recap, EUR230 million in new financing with a five-year term was signed at
the beginning of July 2012, thus refinancing all maturities due in 2013.

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
premises sector, particularly in the hotel industry.

Moreover, Foncière des Murs is still in exclusive negotiations with ANF to
purchase a portfolio of 167 B&B hotels by the end of 2012.

Next financial event:

8 February 2013: Publication of the 2012 annual results

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 premises
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 commercial real estate sector for Offices & Key
Accounts, 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.
As the companies' real estate strategy partner, Foncière des Régions works
with clients to design innovative and sustainable real estate solutions.
www.foncieredesregions.fr

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