COVIVIO HOTELS (EPA:COVH) - Foncière des Murs Half year results

Transparency directive : regulatory news

15/07/2009 08:34

July 15th, 2009

Foncière des Murs proves the soundness of its business model

                                              30 June 09  30 June 08  Change
Consolidated turnover (EURm)                         101          99  + 1.9%
Consolidated turnover - like-for-like (EURm)        98.7          99   -0.3%
Consolidated recurring net profit *(EURm)           51.1        46.3  +10.3%
Consolidated recurring net earnings per share *  EUR1.02     EUR0.93   +9.7%

* Recurring cash flow after tax

Consolidated turnover, up 1.9% at EUR101 million for the 6 months ended
30 June 2009 despite a 5.2% drop in revenues for Accor hotels, was boosted by
the various acquisitions made at the end of 2008, as well as by rent indexing
on the restaurant, health and leisure sectors.

Recurring net profit, up 10.3% at EUR51.1 million, was also buoyed by lower
financial expenses due to a reduction in interest rates during the first half
of 2009.

First asset sales

In June 2009, Foncière des Murs sold four dependent elderly buildings (EHPAD)
to Foncière Sagesse Retraite that were leased to the Korian Group and had a
book value of EUR39 million.

In May 2009, Foncière des Murs also sold off its shares in an Italian fund that
owned all of its assets in Italy, which had a book value of EUR41 million.

Portfolio value down only 6.9%

At June 30th , 2009, the portfolio was valued at EUR2,930 million excluding
duties, down 6.9% over six months on a like-for-like basis, resulting in lower
earnings, which came in at a net loss of EUR213.6 million.

This limited downturn attests to the Company's sound fundamentals: long leases
of over nine years, 100% occupancy rate with first-rate tenants, and rental
income holding up well.

Foncière des Murs limited capital expenditure over the half-year, which
amounted to EUR13.7 million, to work carried out in line with the development
policy for its tenants. In addition, an extension carried out at the De Haan
Sunpark village was acquired at the beginning of July for a total of EUR15
million.

Sound financial structure

Foncière des Murs has maintained a sound financial structure, with net debt
representing 63% of the value of its assets - well below the bank covenants'
requirement of 70% - an average gearing down to 4.45% compared with 4.76% at
December 31th , 2008, and an average maturity of 4.8 years.

The Interest Coverage Ratio was 2.18 at June 30th , 2009, compared with 2.06 at
31 December 31th , 2008, while the bank covenants represented 1.65 on 85% of the
debt and 2.00 on the remaining 15%.

Outlook

Despite the decline in the economic and financial environment, Foncière des
Murs aims to forge ahead with its actions to rationalise its portfolio,
including a measured asset disposal programme.

With sound and sustainable fundamentals, Foncière des Murs is maintaining its
target for stable recurring net profit in 2009.

About Foncière des Murs

Foncière des Murs SCA, a subsidiary of Foncière des Régions, is a French
listed real estate investment trust (SIIC) specialised in business premises,
especially in the hotel, restaurant, health and leisure sectors. The company's
investment policy is focused on building partnerships with leading operators in
their sectors in order to provide its shareholders with a recurring return on
their investment.

Foncière des Murs is managed by Yan Perchet.

Foncière des Murs is listed on Euronext Paris, Eurolist Compartment B
(FR0000060303 - FMU).

Contacts:                                           Contacts :
Foncière des Murs                                   Media

Dominique Ozanne - Directeur Général Adjoint        Philippe Boyer
Tél. : 01 58 97 54 20                               Tél. : 01 58 97 52 23
dominique.ozanne@fdr.fr                             philippe.boyer@fdr.fr

See this press release at www.foncieredesmurs.fr

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