Revenue: €192.2m (up 12.0%) Occupancy
rate: 99.8% (100% for offices) Average nominal rent:
€982/sq.m. (up 14.7%) Average effective rent: €866/sq.m. (up
21.1%) EPRA sBPR and BPR: Gold GRESB: “5 Stars”
rating maintained
Regulatory News:
SFL’s (Paris:FLY) operating indicators improved significantly in
the first nine months of 2024 compared with the year-earlier
period. Rental income rose by a strong 8.9% vs. the first nine
months of 2023, attesting to the property portfolio’s robustness
and its appeal to the increasing number of businesses looking for
modern offices in strategic locations with excellent environmental
performance ratings. Revenue growth was driven by the high level of
rental activity which allowed the Group to capture the portfolio’s
reversionary potential, with the average nominal rent lifted by
14.7% to a record €982/sq.m.
Dimitri Boulte, SFL’s Chief Executive Officer, commented:
“Quarter after quarter, we are seeing sustained demand for central
locations, modern, environmentally-friendly and technically
advanced offices, and access to an array of services. Our strategy
is perfectly aligned with these expectations. Thanks to our unique
portfolio, the quality of our properties and the work of our teams
to enhance the service dimension while also ensuring that each
property meets very high technical and environmental standards, we
are in the best possible position to tap into the popularity of
Paris’s prime office property market offering close to 100%
occupancy and very strong revenue growth. Finally, our CSR strategy
and reporting has been rewarded by the GRESB and EPRA, making SFL a
leader in terms of non-financial performance.”
Revenue up by a strong 12,0% to €192.2
million
Consolidated revenue by
business segment (€000’s)
2024 (9 months)
2023 (9 months)
Change
Revenue*
192.2
171.6
+12,0%
Rental income
Paris CBD
143.6
129.2
+11.1%
Paris Other and Western
Crescent
43.2
42.4
+1.9%
Total rental income
186.8
171.6
+8.9%
* including a €5.4 million reversal of the provision for
impairment of rent receivables in 2024
Revenue for the first nine months of 2024 came to €192.2
million, including rental income of €186.8 million and a €5.4
million provision reversal.
The €186.8 million in consolidated rental income, as reported,
was €15.2 million higher (up 8.9%) vs. the year-earlier period.
On a like-for-like basis (revenue-generating properties,
excluding changes in the portfolio affecting period-on-period
comparisons), rental income was €11.9 million higher (up
7.4%).
The increase reflected:
- application of rent escalation clauses (€6.9 million
impact);
- the contribution of leases signed in 2023 and 2024 with new
clients, such as a leading luxury goods company which took over the
former Exane offices in the #Cloud.Paris building;
- the effective rent uplifts negotiated with existing tenants
such as Fast Retailing for new leases, addenda or protocols on
occupied space.
The Washington Plaza, Cézanne Saint-Honoré and #Cloud.Paris
properties continued to post double-digit increases in rental
income compared with prior reporting periods.
Rental income from spaces being redeveloped rose by €7.2
million (up 67.4%) vs. the first nine months of 2023, primarily
reflecting delivery of lessor-funded redevelopment work in the
Louvre Saint-Honoré building to the Cartier Foundation in July 2023
and on the site of Adidas’s flagship store in the Galerie
Champs-Elysées building in August 2023.
Penalties received from tenants for breaking their leases
were offset by the cancellation of the related rent accruals in the
IFRS financial statements, which trimmed €3.9 million from rental
income for the first nine months of 2024. However, after reversing
the provisions set aside at 31 December 2023 for the effect of the
terminations, the net effect on Group revenue was an increase of
€1.5 million.
Sustained rental activity in a more
uncertain environment
In the first nine months of 2024, the Group signed leases on
over 16,000 sq.m. of mainly office space.
The average nominal rent for the new office leases was
significantly higher, at €982 per sq.m. (vs. €856 per sq.m. in
2023), corresponding to an effective rent of €866 per sq.m. (vs.
€715 per sq.m. in 2023), for an average non-cancellable period of
8.0 years. These lease terms attest to the resilience of the Paris
office property market and the attractiveness of the Group’s
properties.
The physical occupancy rate for revenue-generating properties
was a record 99.8% at 30 September 2024 (vs. 99.7% at 31 December
2023).
Financing: a solid financial structure
and unused credit lines
SFL’s consolidated net debt at 30 September 2024 amounted to
€2,661 million (vs. €2,539 million at 31 December 2023),
representing a loan-to-value ratio of 33.7% based on the
portfolio’s appraisal value including transfer costs at 30 June
2024. The average cost of debt after hedging was 2.05% and the
average maturity was 3.3 years. At 30 September 2024, the interest
coverage ratio stood at 3.6x.
At that date, the Group had €1,570 million in undrawn confirmed
lines of credit and its liquidity position was excellent.
Recognised and rewarded non-financial
performance
SFL continues to be one of the highest scoring European groups
in the Global Real Estate Sustainability Benchmark (GRESB),
attesting to its outstanding commitment to sustainable
development.
In 2024, SFL ranked among the top 10% of participants in the
Europe/Listed compartment, with exceptional scores of 92/100 for
the Standing Investments benchmark and 97/100 for the Development
benchmark.
This year’s renewal of its "5 Stars" rating underscores the
consistency of SFL's performance since its first participation in
2012, confirming its position as a benchmark in the sector.
Eric Oudard, Technical and Development Director at SFL,
explained: “Our results demonstrate our ongoing commitment to
responsible and sustainable management. We remain determined to
pursue our initiatives in favour of an increasingly positive
environmental and social impact, and continue offering our clients
well-designed, environmentally-friendly workplaces.”
SFL has also earned the following EPRA certifications this
year:
- EPRA sBPR - Gold, once again
underlining the robustness and quality of its non-financial
reporting; - EPRA BPR - Gold, for its commitment to
transparent financial reporting.
About SFL
A benchmark player in the prime segment of the Parisian
commercial real estate market, Société Foncière Lyonnaise stands
out for the quality of its property portfolio, which is valued at
€7.4 billion and is focused on the Central Business District of
Paris (#Cloud.Paris, Edouard VII, Washington Plaza, etc.), and for
the quality of its client portfolio, which is composed of
prestigious companies. As France’s oldest property company, SFL
demonstrates year after year an unwavering commitment to its
strategy focused on creating a high value in use for users and,
ultimately, substantial appraisal values for its properties. With
its sights firmly set on the future, SFL is committed to
sustainable real estate with the aim of building the city of
tomorrow and helping to reduce carbon emissions in its sector.
Stock market: Euronext Paris Compartment A – Euronext Paris ISIN
FR0000033409 – Bloomberg: FLY FP – Reuters: FLYP PA
S&P rating: BBB+ stable outlook
www.fonciere-lyonnaise.com
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241024475381/en/
SFL - Thomas Fareng - T +33 (0)1 42 97 27 00 -
t.fareng@fonciere-lyonnaise.com
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