COVIVIO HOTELS (EPA:COVH) - 2010 half-year results

Transparency directive : regulatory news

15/07/2010 07:30

July 15th, 2010

                       Increasing net recurring income
                       Strengthened financial structure

                                 H1 2010    H1 2009    Change       Var.
                                                         (%)  on a like-for-
                                                               like basis (%)
Consolidated turnover (EURm)       100.5      100.9    - 0.4%      + 4.1%
Net recurring income (EURm)         51.7       51.1    + 1.1%
Net recurring income per share     1.04 EUR   1.02 EUR + 1.1%

Upward trend of profits

The consolidated turnover of Foncière des Murs stood at EUR 100.5 million for
the first half of 2010, virtually unchanged compared to 2009.

On a like-for-like basis, the + 4.1% increase in the revenues of Foncière de
Murs includes the + 5.7% rise in hotel revenues over the half-year period, as
well as the positive effect of the indexing of rents in the restaurant, health
and leisure sectors.

The net recurring income of EUR51.7 million, compared to EUR51.1 million in
2009, has risen by 1 .1% du ring the first half of 2010.

The net income for the period, amounting to EUR24.5 million on June 30th , 2010
includes the positive impact of the fair value adjustment on real estate assets
(+ EUR58 million) and the negative impact of the fair value adjustment on
hedging instruments (- EUR80 million).

Good liquidity in hotel assets: EUR72 million in sales and signed agreements

During the first half of 2010, Foncière des Murs sold four hotels, negotiated
in 2009, for a total of EUR24.1 million.

Foncière des Murs has also signed several agreements relating to the sale of
six hotels and a restaurant, for an overall price of EUR47.9 million, in line
with the latest appraisal values.

These sales of variable-rent hotels to private investors indicate the liquidity
of hotel assets owned by Foncière des Murs.

NAV excluding hedging instruments up +3.1% during the first six months,
sustained by assets value up +2%

On June 30th , 2010, the value of the assets of Foncière des Murs was EUR3,026
million, excluding transfer duties, up 2.0% in the first half of 2010, on a
like-for-like basis.

This increase is due to the fundamental strengths of Foncière des Murs: liquid
assets, firm leases with an average term of nine years and a 100% occupancy rate
with first-rate tenants.

The NAV, excluding hedging instruments, stood at EUR1,129 million, that is
EUR22.6 per share, a 3.1% increase compared to December 31st, 2009. The impact
of hedging instruments on the NAV is - EUR4.5 per share. Including hedging
instruments, the NAV was EUR905 million, that is EUR18.1 per share, a 4.7% drop
over the six-month period.

A strengthened financial structure

Foncière des Murs continued to strengthen its financial structure during the
six-month period, with net debt representing 60.8% of the asset value, compared
to 61.7% on December 31st, 2009 and 63.4% on June 30th , 2009.

The average debt rate dropped to 4.48% compared to 4.57% on December 31st, 2009,
with an average maturity of 3.9 years. The debt is hedged with a firm hedging
rate of 85.3% and a residual term of 6.1 years.

The Interest Coverage Ratio (ICR) amounted to 2.21 on June 30th , 2010, compared
to 2.08 on December 31st , 2009.

Outlook

Foncière des Murs intends to continue rationalising its assets portfolio, in
particular by continuing its assets disposal programme, and is aiming to take
advantage of market opportunities in the sector of outsourced property assets.

As positive trends are expected, notably in the hotel business, Foncière des
Murs is forecasting an increase in net recurring income in 2010.

About Foncière des Murs

Foncière des Murs SCA, a subsidiary of Foncière des Régions, is a French
listed real estate investment trust (SIIC) specialising 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 listed on Euronext Paris, Eurolist Compartment B
(FR0000060303 - FMU).

Contacts:
Foncière des Murs

Dominique Ozanne - Deputy General Manager
Tel.: 01 58 97 54 20
dominique.ozanne@fdr.fr

Frédéric Gaignon - General Secretary
Tel.: 01 58 97 51 67
frederic.gaignon@fdr.fr

Read this press release at www.foncieredesmurs.fr

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