COVIVIO HOTELS (EPA:COVH) - 2009 Annual Results

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10/02/2010 17:30

Paris, 10 February 2010

Earnings satisfactory:
NAV up 6.6% during the second half of 2009
Net recurring income stable at EUR1.92 per share

                                      31 Dec 08   31 Dec 09    Change
Rental income (EURm)                      200         197      -1.7%
Net recurring income * (EURm)            96.0        96.0        0%
Net recurring income * per share      EUR1.92     EUR1.92        0%
Proposed dividend                     EUR1.40     EUR1.40        0%

* recurring cash flow after tax

Rental income, down slightly to EUR197 million at 31 December 2009, compared
with EUR200 million in 2008, reflects the 7.7% drop in revenues recorded by
Accor hotels and the impact of disposals carried out in 2009, in addition to
the favourable impact of the acquisitions made at the end of 2008 and the
positive impact of rent indexing in the restaurant, health and leisure sectors.

The residual lease term is over nine years for the entire portfolio, with
first-rate tenants and a 100% occupancy rate.

Operating results were highly satisfactory in 2009 in view of the economic
climate, with a net recurring income stable at EUR96.0 million, representing
EUR1.92 per share.

Considering the fair value adjustments on real estate assets (-EUR200 million)
and hedging instruments (-EUR45 million), consolidated net income comes out at
-EUR159.7 million.

Increase in portfolio value during the second half of 2009 carried out by
active asset management work

At 31 December 2009, the portfolio was valued at EUR2,990 million (excluding
transfer duties), up 1.1% like-for-like over the second half of 2009. On a
like-for-like basis, the portfolio value is down 6.0% over the full year,
considering the drop recorded during the first half of the year.

During the year, Foncière des Murs limited the volume of its investments
(EUR48 million) to work carried out in connection with the policy to accompany
its tenants for EUR33 million and the acquisition, in July 2009, of the
extension developed in a Sunparks Village in Belgium for EUR15 million, with a
yield of 7.2%.

At 31 December 2009, the portfolio remained effectively diversified, with 58%
of assets in the Hotel sector, 16% in the Leisure sector, 13% in the Restaurant
sector and 13% in the Health sector.

More specifically, the good performance seen in terms of values during the
second half of 2009 reflects the agreement sealed between Accor and Foncière
des Murs on a rent review decided at the end of the first lease period, in
2017 and 2018. In return, Foncière des Murs will finance a renovation programme
(EUR41 million) over the next five years with a view to creating value on the
hotels portfolio managed by Accor and owned by Foncière des Murs.

In this way, triple net NAV excluding financial instruments came to EUR1,096
million, representing EUR21.9 per share, up 6.6% in relation to 30 June 2009
and down 15% over the year. After the valuation of hedging instruments, triple
net NAV totalled EUR949 million, representing EUR19.0 per share.

Stronger financial structure and improved financial indicators

Foncière des Murs confirms the resilience of its financial structure, with
EUR1,845 million in net debt, representing 61.7% of the value of its assets at
31 December 2009, compared with 63.4% at 30 June 2009, for ban king covenants
set at 70%.

The average rate for debt was down to 4.57% at 31 December 2009, compared with
4.76% at 31 December 2008, with an average maturity of 4.4 years. This debt is
hedged, with a firm hedging rate of 85% and a residual term of six years.

The interest coverage ratio (ICR) improved to 2.08 at 31 December 2009,
compared with 2.06 at 31 December 2008, with banking covenants of 1.65 on 85%
of the debt and 2.00 on the remaining 15%.

Dividend stable at EUR1.40 per share

For 2009, a dividend of EUR1 .40 per share will be submitted to the general
meeting, stable in relation to the dividend paid out for 2008.

The total amount of the dividend proposed is EUR70 million, representing 73% of
recurrent net income.

Outlook

Foncière des Murs aims to continue moving forward with actions, launched in
2009, to improve its portfolio, notably by pursuing the limited disposal of
assets and capitalising on market opportunities.

Within this framework, FDM has already negotiated the disposal, during the
first quarter of 2010, of four Ibis and Etap Hôtel hotels operated by Accor
for a total of EUR24 million, in line with the latest appraisal values.

With sound and sustainable fundamentals, Foncière des Murs forecasts a stable
net recurring income in 2010.

Next event

General meeting, 8 April 2010.

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 holding operating
facilities, primarily in the hotel, restaurant, health and leisure sectors.
The company's investment policy is focused on partnerships with
industry-leading operators in order to provide its shareholders with recurrent
returns.

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

Contacts:
Foncière des Murs

Dominique Ozanne - Directeur Général Adjoint
Tel: +33 1 58 97 54 20
dominique.ozanne@fdr.fr

Frédéric Gaignon - Secrétaire Général
Tel: +33 1 58 97 51 67
frederic.gaignon@fdr.fr

See this press release at www.foncieredesmurs.fr

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