Regulatory News:
Cegereal (Paris:CGR):
In millions of euros
First-half 2020
First-half 2019
Change
Rental income (IFRS)
31.6
31.3
+0.9%
EPRA earnings (EPRA)
19.8
20.6
-4%
EPRA earnings (EPRA) excl. non-recurring
income
19.2
18.7
+2.7%
Portfolio value (excl. transfer
duties)
1,460
1,435
+1.8%
LTV ratio
52.6%
53.7%
-1.1pt
EPRA NAV per share excl. transfer duties
(in €)
44.1
42.0
+5.0%
EPRA NNNAV per share excl. transfer duties
(in €)
43.7
41.3
+5.8%
Distribution per share (in €)
0.75
2.3
-67%
Despite the health crisis which emerged during the first half of
2020, Cegereal posted a slight +0.9% increase in rental income
compared with the same period of 2019. EPRA earnings excluding
non‑recurring income, i.e., excluding the various indemnities
received, were up +2.7% versus first-half 2019. These results are a
testament to sound business management during the epidemic.
The occupancy rate stood at 93.4% at the period-end, after Sagem
vacated 5,700 sq.m of space at Arcs de Seine in
Boulogne-Billancourt on April 1, 2020. At December 31, 2019, the
occupancy rate stood at 96.9%. This recently vacated space is
already being renovated, with delivery scheduled in the second half
of 2020. The campus enjoys good transport links, views over the
Seine, private landscaped gardens and a living roof, and is being
actively marketed.
Assets adapted to support tenant decisions
In the first six months of the year, Cegereal’s operations were
marked by the implementation from March of measures to ensure the
health and safety of its employees, partners and clients. As
lockdown measures were eased, Cegereal’s teams were fully mobilized
to make the necessary adjustments at its properties, based on
decisions taken by tenants’ management, and to support tenants as
their employees gradually returned to the workplace. Attentive to
their needs, Cegereal remains available to assess the impacts of
the difficult economic conditions on its tenants’ businesses on a
case-by-case basis.
Cegereal took every step to ensure that refurbishment work was
delivered as initially scheduled so that the new tenants announced
at the end of 2019 could take up their new space during the first
half of 2020.
In terms of rental activity, despite a particularly lackluster
climate, Brandt renewed its lease at the Hanami property in
Rueil-Malmaison (next to the La Défense business district) until
2024.
Low exposure to economic disruptions
Cegereal is exclusively positioned in the office real estate
market and its tenants which are mainly large corporates, have
solid profiles. As a result, the impacts of the health crisis on
its business are limited, with the rent collection rate for the
third quarter currently standing at more than 95%. Rent payment
deferrals granted by Cegereal in the first half represented less
than 1% of its rental income.
Over the coming months, the impact of the economic crisis is
expected to remain contained, as the Company benefits from a
weighted average lease term of 5.2 years which has continuously
increased over the last two years. Cegereal’s long-term rental
income stream therefore remains secure. In addition, the
loan-to-value ratio decreased by -1.1 percentage point compared
with first-half 2019.
Given these factors, Cegereal is well equipped to respond to
worsening economic conditions should the need arise.
“Responsible property company” strategy validated
The last few weeks have seen considerable growth in awareness
and increased attention from tenants in terms of environmental,
social and governance issues. Thanks to its CSR strategy, which has
been in place since its creation, and its status as Europe’s most
sustainable listed property company, obtained in the 2019 GRESB
(Global Real Estate Sustainability Benchmark) ranking, Cegereal is
confident in its position as a leading sustainable property company
for both social and environmental issues.
Long-term financial agility
The Company paid a dividend of €0.75 per share in place of the
initially planned €2.30 per share. Carried out in the interests of
prudence, this one-off reduction gives the Company headroom and
enables it to maintain its operational agility in an uncertain
environment.
Investor Calendar
- November 6, 2020: Third-quarter 2020 rental
income
About Cegereal
Created in 2006, Cegereal is a listed property company that
invests in prime office properties in Greater Paris. The total
value of the portfolio was estimated at €1,460 million at June 30,
2020 (excluding transfer duties).
Thanks to its strong commitment to environmental, social and
governance issues, Cegereal achieved first place among listed
companies in Europe in the 2019 Global Real Estate Sustainability
Benchmark (GRESB) ranking. Its entire portfolio has achieved NF
HQE™ Exploitation and BREEAM In-Use International
certification.
Cegereal is a REIT listed on Euronext Paris since 2006, in
compartment B (ISIN: FR0010309096). The Company had a market
capitalization of €531 million at July 28, 2020.
www.cegereal.com
APPENDICES
IFRS Income Statement (consolidated)
In thousands of euros, except per share
data
June 30, 2020
2019
June 30, 2019
6 months
12 months
6 months
Rental income
31 567
63 369
31 290
Income from other services
13 211
20 045
15 030
Building-related costs
(19 938)
(31 621)
(17 818)
Net rental income
24 841
51 793
28 502
Sale of building
0
0
0
Administrative costs
(1 774)
(3 885)
(1 983)
Other operating expenses
(6)
(13)
(7)
Other operating income
624
165
220
Increase in fair value of investment
property
10 688
60 710
36 137
Decrease in fair value of investment
property
(19 065)
(14 480)
(13 010)
Total change in fair value of investment
property
(8 377)
46 230
23 127
Net operating income
15 307
94 289
49 860
Financial income
0
0
0
Financial expenses
(6 362)
(13 529)
(7 120)
Net financial expense
(6 362)
(13 529)
(7 121)
Corporate income tax
0
0
0
CONSOLIDATED NET INCOME
8 945
80 760
42 739
of which attributable to owners of the
Company
8 945
80 760
42 739
of which attributable to
non-controlling interests
0
0
0
Other comprehensive income
TOTAL COMPREHENSIVE INCOME
8 945
80 760
42 739
of which attributable to owners of the
Company
8 945
80 760
42 739
of which attributable to
non-controlling interests
0
0
0
Basic earnings per share (in
euros)
0,56
5,10
2,71
Diluted earnings per share (in
euros)
0,54
4,92
2,60
IFRS Balance Sheet (consolidated)
In thousands of euros
June 30, 2020
2019
June 30, 2019
Non-current
assets
Property, plant and equipment
31
38
44
Investment property
1 460 380
1 463 920
1 435 240
Non-current loans and receivables
20 220
23 146
22 298
Financial instruments
38
34
57
Total non-current assets
1 480 669
1 487 138
1 457 639
Current
assets
Trade accounts receivable
14 595
9 720
13 130
Other operating receivables
12 955
11 607
9 938
Prepaid expenses
188
292
131
Total receivables
27 738
21 620
23 199
Cash and cash equivalents
47 062
44 880
29 187
Total cash and cash equivalents
47 062
44 880
29 187
Total current assets
74 800
66 499
52 386
TOTAL ASSETS
1 555 469
1 553 637
1 510 025
Shareholders'
equity
Share capital
79 532
79 532
79 532
Legal reserve and additional paid-in
capital
55 118
66 462
66 462
Consolidated reserves and retained
earnings
583 645
503 513
503 481
Net attributable income
8 945
80 760
42 739
Total shareholders’ equity
727 240
730 268
692 214
Non-current
liabilities
Non-current borrowings
763 883
763 974
763 664
Other non-current borrowings and debt
11 117
10 087
9 381
Financial instruments
637
682
741
Total non-current liabilities
775 637
774 743
773 786
Current
liabilities
Current borrowings
3 871
3 468
3 378
Trade accounts payable
14 920
12 349
5 866
Other operating liabilities
12 427
10 437
13 953
Prepaid revenue
21 375
22 373
20 828
Total current liabilities
52 593
48 626
44 025
Total liabilities
828 229
823 369
817 811
TOTAL SHAREHOLDERS' EQUITY AND
LIABILITIES
1 555 469
1 553 637
1 510 025
IFRS Statement of Cash Flows
(consolidated)
In thousands of euros
June 30, 2020
2019
June 30, 2019
OPERATING ACTIVITIES
Consolidated net income
8 945
80 760
42 739
Elimination of items related to the
valuation of buildings:
Fair value adjustments to investment
property
8 377
(46 230)
(23 127)
Elimination of other income/expense items
with no cash impact:
Depreciation of property, plant and
equipment (excluding investment property)
6
9
7
Free share grants not vested at the
reporting date
0
0
0
Fair value of financial instruments (share
subscription warrants, interest rate caps and swaps)
(65)
427
469
Adjustments for loans at amortized
cost
1 151
2 362
1 177
Contingency and loss provisions
0
0
0
Corporate income tax
0
0
0
Cash flows from operations before tax
and changes in working capital requirements
18 414
37 329
21 264
Other changes in working capital
requirements
1 155
(8 277)
(13 314)
Working capital adjustments to reflect
changes in the scope of consolidation
Change in working capital
requirements
1 155
(8 277)
(13 314)
Net cash flows from operating
activities
19 569
29 052
7 950
INVESTING ACTIVITIES
Acquisition of fixed assets
(4 837)
(9 170)
(3 595)
Net increase in amounts due to fixed asset
suppliers
(785)
(1 745)
(1 950)
Net cash flows used in investing
activities
(5 622)
(10 915)
(5 546)
FINANCING ACTIVITIES
Capital increase
0
11 204
11 204
Change in bank debt
(750)
(1 500)
(750)
Refinancing/financing transaction costs
(51)
(102)
(40)
Net variation in liability in respect of
refinancing
0
(420)
(420)
Net increase in current borrowings
(22)
236
204
Net decrease in current borrowings
0,00
0,00
0,00
Net increase in other non-current
borrowings and debt
1 030
544
(163)
Net decrease in other non-current
borrowings and debt
0
0
0
Purchases and sales of treasury shares
(53)
(28)
(61)
Dividends paid
(11 919)
(36 557)
(36 557)
Net cash flows from financing
activities
(11 766)
(26 625)
(26 583)
Change in cash and cash
equivalents
2 182
(8 488)
(24 179)
Cash and cash equivalents at beginning of
period*
44 880
53 367
53 367
CASH AND CASH EQUIVALENTS AT END OF
PERIOD
47 062
44 880
29 188
* There were no cash liabilities for any
of the periods presented above.
Reconciliation of Alternative Performance Measures
(APM)
Cegereal
recurring cash flow APM
In thousands of euros
June 30, 2020
June 30, 2019
Net income under IFRS
8 945
42 739
Restatement of changes in fair value of
investment property
8 377
(23 127)
Other restatements of changes in fair
value
(49)
490
Restatement of other fees
2 533
534
EPRA earnings
19 807
20 636
APM EPRA earnings
(EPRA) excl. non-recurring income
En milliers d'euros
June 30,2020
June 30,2019
EPRA earnings (EPRA)
19 807
20 636
Restatement of non-recurring income
(615)
(1 941)
EPRA earnings (EPRA) excl.
non-recurring income
19 192
18 695
EPRA NNNAV
APM
In thousands of euros
June 30, 2020
2019
Shareholders’ equity under IFRS
727 240
730 268
Portion of rent-free periods
(27 200)
(28 614)
Market value of loans
(770 647)
(771 837)
Carrying amount of loans
765 573
765 240
EPRA NNNAV
694 966
695 057
LTV ratio
APM
In thousands of euros
June 30, 2020
June 30, 2019
Gross amount of balance sheet loans
(statutory financial statements)
769
770
Fair value of investment property
1 460
1 435
LTV ratio (%)
52,6%
53,7%
Occupancy rate
APM
The occupancy rate is the ratio of space
for which the Company receives rent under a lease agreement to the
total amount of available space.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200728006002/en/
Media Relations Aliénor Miens/Quentin Dussart +33 (0)6 59 42 29
35 cegereal@citigatedewerogerson.com Investor Relations Charlotte
de Laroche +33 1 42 25 76 38 info@cegereal.com