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Press releases

Half-year results at June 30, 2019

  07/31/2019 6:00 PM

Solid financial results in a context of strengthening the Group's capacities


A growing portfolio of assets reaching nearly 1.8 billion euros

  • € 128m in own account assets (+ 3% at constant scope since December 31, 2018)
  • € 1,656 million managed on behalf of third parties (+ 14% since December 31, 2018) in the form of SCPI1 and d & #39; OPCI2 thanks to a new record of gross inflows reached in the first half of 2019 of € 144 million compared to € 97 million over the same period in 2018 (+ 49%)

Solid financial indicators

  • Triple net EPRA NAV of € 103.4 per share (+ 8% vs. June 30, 2018)
  • Turnover of € 21.1m vs. € 15.7m (+ 34% vs. June 30, 2018)
  • Net commissions of € 7.8m compared to € 6.6m at 1er semester 2018 (+ 19%)
  • Net rental income of € 3.1m compared to € 3.2m at 1er half of 2018 (+ 3% at constant scope) following the disposal of 4 assets
  • Recurring EPRA net income of € 4.82m (€ 4.9m at 1er semester 2018)


“The Group has entered a phase of acceleration of its development following the restructuring carried out. Significant acquisitions for the funds under management, the sale of mature assets on PAREF, the refinancing of the Group, the launch of the restructuring project for the asset located in Levallois-Perret or the signing of the purchase agreement for 6 floors from the Franklin tower to La Défense, reflect the operational dynamics of 1er Half-year 2019. Bolstered by its employees and the confidence of investors, which once again allow record gross inflows, the PAREF Group is continuing its strategy of value creation in all of the assets under management. "

Antoine Onfray - Deputy CEO


“The PAREF Group is continuing its repositioning in order to begin a new era in its development. We are particularly pleased with the strengthening of the management team with the arrival of Anne Schwartz as Managing Director of PAREF Gestion. His very good knowledge of our businesses will make it possible to accelerate the development of new investment vehicles dedicated to different types of European assets. I would like to thank Gilles Chamignon who decided to devote himself to a new professional project. Thanks to its three pillars, the Group now has the necessary organization to develop its activities. "

Antoine Castro - Managing Director


PAREF's board of directors, which met on July 31, 2019, closed the accounts on June 30, 2019.


I - Real estate activity (PAREF SA)

PAREF continued its strategy of active management of its assets during the 1er semester 2019 in particular through:

  • The signing of leases on 1,874 m² of rented or re-let, including 3 new leases on the Gaïa building with firm periods of 6 and 5 years;
  • The sale of 4 assets (Bondy, Cauffry, Emerainville and Trappes Politzer) for a total net seller amount of € 16 million, representing an average premium of 15 % compared to the last appraisal. The Group is thus continuing its strategy of rotating its portfolio with a gradual repositioning on assets of more significant size and mainly located in Greater Paris;
  • The launch of a redevelopment project for the office asset located in Levallois-Perret (Grand Paris) for which the Group filed and obtained the building permit at the end of June 2019. This large-scale project covers an area of approximately 6,400 m² GLA will allow the complete restructuring of the asset by repositioning it to the best market standards for both the end user and the environmental level. The Group intends to obtain BREEAM and HQE certifications. Delivery of the project is scheduled for mid-2021.

PAREF also signed in July 2019 a promise to purchase with a view to acquiring 6 floors of the Franklin tower located on the forecourt of La Défense (Grand Paris). This acquisition should be finalized at the end of September 2019 and carried out in partnership with an institutional fund indirectly held by the Fosun Group. PAREF will retain management of the acquired asset. This transaction is the demonstration of the Group's new strategy, namely the acquisition of more significant assets, with the potential collaboration of institutional investors, in particular the majority shareholder Fosun.

The Group's financial occupancy rate stands at 93.3 % compared to 91.9 % at December 31, 20183.

The weighted average maturity of the leases is 5.8 years at the end of June 2019 and the schedule for leases on the owned assets is as follows:

Following the disposals carried out, the value of the PAREF Group's assets stood at € 117 million as of June 30, 2019, +3.5 % at constant scope compared to December 31, 2018.

Key figures for directly owned assets412/31/201806/30/2019
Number of active2016
Rental area (in operation)129,069 m²103,524 m²
Valuation127 M €117 M €


Overall, the net rental income on the assets held directly by PAREF amounted to € 3.1 million at 1er half of 2019, down compared to the same period in 2018 (-41TP1Q) explained by the disposal of 4 assets in 1er half of 2019 and the departure of tenants from the Levallois asset with a view to its restructuring. The average gross rate of return on its own assets is 7.7% (excluding Gaia).


Rental results on own assets (k €)S1-2018S1-2019Evolution in %
Gross rental income3 7953 353-12%
Rental charges re-invoiced-2 191-
Rental charges, taxes and insurance--2,518-
Non-recoverable charges-647-n / A
Other income586613%
Total net rental income3,2063 092-4%

Gross rental income increased by +3 % at constant scope, in particular due to the letting that took place during 2018 and 1er semester 2019.


II - Management activity on behalf of third parties (PAREF Gestion)

  • Collection and managed heritage

The Group collected during the 1er half of 2019, a total amount of € 144m in gross subscriptions with & #39; investors in SCPI funds representing an increase of + 49% compared to the same period in 2018 (€ 97m at 1er semester 2018). This performance stems in particular from the SCPIs with variable capital Novapierre Germany, Novapierre 1 and Interpierre France, which respectively posted € 77 million, € 40 million and € 23 million in gross inflows over the period.

The Group successfully completed a significant acquisition of & #39; a portfolio of 27 retail assets on behalf of SCPI Novapierre 1 for a total amount of € 94 million. This acquisition enabled an increase of 59% in assets managed on this vehicle, which will benefit from an increase in its yield and from a strengthening of the diversification of its portfolio.

Thus, PAREF Gestion manages assets for third parties of € 1,656 million, up + 14% compared to December 31, 2018 (€ 1,457 million as of December 31, 2018).

Breakdown of funds managed by PAREF Gestion as of June 30, 2019:

TypeFundsStrategyAssets under managementAssets under managementEvolution in %
(€ m)(€ m)
SCPINovapierre Germany (CV)Shops (Germany)47154415%
Novapierre Residential (CV)Residential (Paris)2802821%
Novapierre 1 (CV)Shops (Paris region)16125659%
Interpierre France (CV)Office / Logistics10513529%
Atlantic Stone 1 (CF)Diversified6057-5%
Capiforce Pierre (CF)Diversified5953-10%
Cifocoma 1 (CF)Shops24240%
Cifocoma 2 (CF)Shops2525-1%
SCPI Subtotal 1,186137616%
OPCIOPPCI of hotel walls (CF) 1421495%
Vivapierre (CV)Hotel residences (France)9490-4%
Total OPCI 2362391%
Others 354015%
Total  1,4571,65614%

CF: Fixed capital
CV: Variable capital

Breakdown of gross collection carried out in 1er semester 2019:

TypeFundsH1-2018 gross inflows (€ m)H1-2019 gross inflows (€ m)Evolution in %
SCPINovapierre Allemagne71778%
Novapierre 124024x
Interpierre France22235%
Novapierre Residential2499%
Total 9714449%
  • Commissions

Thanks to sustained fundraising at 1er half-year 2019 and an increase in assets under management, PAREF Gestion posted a sharp increase in gross subscription and management fees, which reached respectively € 13.1 million (+ 52%) and € 4.6 million (+ 38%).

Commissions (in k €)S1-2018S1-2019Evolution in %
Management commissions3 3474,62238%
Subscription fees8,60513,06552%
Retro-commissions- 5,395-9,58283%
Net commissions6 5587 83619%


III - Results of 1er semester 2019

Consolidated income statement:

Detailed consolidated income statement (in k €) S1-2018S1-2019Evolution in %
Gross rental income3 7953 353-12%
Rental charges re-invoiced-2 191n / A
Rental charges, taxes and insurance-(2,518)n / A
Rental charges and taxes not recovered-647-n / A
Other income586613%
Net rental income3,2063 092-4%
Turnover on commissions11 95317 68848%
-of which management fees3 3474,62238%
-of which subscription fees8,60513,06552%
Retro-commissions-5,395-9 85283%
Net commission income6 5587 83619%
General operating expenses-3 831-5,11934%
Depreciation and impairment3-278n / A
current operating income5,9365 531-7%
Change in fair value of investment properties4 2621613-62%
Income from the sale of investment properties2481,8816.6x
Operating income10,4469,025-14%
Financial products4837-21%
Financial expenses-830-1 28154%
Cost of net financial debt-783-1 24459%
Other financial income and expenses10617161%
Value adjustment of financial instruments1942045%
Share of associates1428885.2x
Net income before taxes10 1069,045-11%
Tax charges-1 145-1 1662%
Consolidated net income8,9617 878-12%
Net income attributable to non-controlling interests--n / A
Consolidated net income, Group share8,9617 878-12%
Average number of shares (undiluted)1 319 3671,439,948 
Consolidated net income per share (Group share)6.795.47-19%
Average number of shares (diluted)1 324 8671 445 876 
Consolidated net income per share (diluted Group share)6.765.45-19%

The Group generated consolidated net income Group share of € 7.9 million at 1er half of 2019, down 12% compared to the same period in 2018, mainly explained by:

  • net rental income which came to € 3.1 million, down mainly due to the & 1TP3Q39; impact of disposals made in 2018 and 1er half of 2019, as well as the departure of tenants from the asset located in Levallois with a view to its restructuring;
  • net commission income up sharply by +19 1TP1Q thanks to new subscriptions and an increase in assets under management on behalf of third parties;
  • general operating expenses which amounted to € 5.2 million, an increase of € 1.3 million compared to the 1er half of 2018, s & 1TP3Q39; explained in particular by personnel costs with an increase of € 1.0 million related to recruitments and the creation of the platform in Switzerland located in Zurich;
  • the cost of financial debt came to € 1.2 million at 1er half of 2019 compared to € 0.8m in the firster Half-year 2018. This change is explained by the indemnities for the termination of financing and hedges relating to the refinancing of the Group's debt (for € 0.5 million) partially offset by the reduction in the average cost of the debt at 1er semester 2019;
  • the result of the share of companies accounted for by the equity method came to € 0.9 million against € 0.1 million, in particular thanks to the increase in the fair value of the Gaïa asset following the signing of new leases and the signature of the renewal of the leases on Vivapierre's assets, allowing the reversal of the provision made in the accounts of OPCI Vivapierre.

IV - Financial resources

The PAREF Group signed on February 21, 2019 the refinancing of the Group's debt5 by setting up & #39; a corporate financing of & #39; for a total amount of 100 million euros.

This financing is composed of & #39; a loan of 30 million euros drawn from6 and a confirmed available credit line of & #39; in the amount of € 70 million. The maturity is 5 years and the margin is 145 bps above the 3-month Euribor.

As of June 30, 2019, the nominal amount of gross debt drawn down amounted to € 39 million, compared to € 35 million at the end of 2018.

The average debt rate thus stands at 2.1% at June 30, 2019, a sharp decrease compared to the end of 2018 (3.6% at December 31, 2018).

The average residual maturity of the debt increases to 4.75 years against 3.9 years at the end of 2018.

All of the drawn debt is hedged by hedging instruments, thus limiting its sensitivity to changes in interest rates.

The PAREF Group's financial ratios are solid with a debt ratio (LTV7) less than 0% and financial interest coverage (ICR8) at 9x, compared to 4% and 7x respectively at the end of 2018.

The Group thus respects its covenants on its bank debts, mainly:

  • A debt ratio (LTV) <50%;
  • An ICR> 2.5x.

Debt schedule:

The PAREF Group also has a substantial cash flow of € 40 million as of June 30, 2019, covering beyond 12 months of maturity of its debts and making it possible to meet the regulatory needs of the management company PAREF Gestion.

V - Assets under management

In € k12/31/201806/30/2019Evolution in %
Assets held directly by PAREF111,070100 140-10%
Investments held by PAREF(1)27 28428 2394%
Total PAREF assets138,354128,379-7%
- Novapierre Germany471,263543 64715%
- Novapierre Residential280,317282,2121%
- Novapierre 1161,245256 11959%
- Interpierre France105,034135,01829%
- Atlantic Stone 160 20657,318-5%
- Capiforce Pierre58,60752 881-10%
- Cifocoma 224,99624 819-1%
- Cifocoma 124,01423,9830%
SCPI Subtotal1,185,6821 375 99716%
- Vivapierre94 23090 120-4%
- OPPCI specialized in hotels141,910149 1805%
OPPCI Subtotal236,140239,3001%
Other assets managed on behalf of third parties (2)35,30040,45015%
Total assets managed by PAREF Gestion on behalf of third parties1,457,1221 655 74714%
Reprocessing (3)-9,909-10,004-1%
GENERAL TOTAL1,585,5671,774,12212%

(1) Investments in Vivapierre and Le Gaia
(2) Includes Land Selection Regions
(3) Part of the assets of PAREF (OPPCI Vivapierre) is included in the management of PAREF Gestion

The property portfolio of real estate assets owned by PAREF (excluding Gaïa) amounts to € 100 million, down € 11 million compared to the end of 2018, mainly explained by:

  • disposals for € 13.9 million (values at 12/31/2018);
  • costs and improvement works carried out on the 1er half of 2019 for € 1.5 million; and
  • a positive revaluation of the value of assets for around € 1.6 million.

At constant scope, the change in fair value amounts to € 3.0 million over the 1er half of 2019, an increase of +3 1TP1Q compared to the end of 2018.

The average gross rate of return on assets held directly and consolidated by PAREF was 7.7 % excluding Gaia (6.9 % at the end of 2018).


VI - Revalued EPRA net assets

L & #39; Revalued triple net EPRA net assets (ANR Triple Net EPRA) of the PAREF Group amounted to € 103.4 per share at the end of June 2019, an increase of € 4.3 per share compared to the end of 2018 (+ 4%) s & #39; explained mainly by the result of 1er half of 2019 for + € 5.4 / share, the change in fair value of the PAREF Gestion business for + € 3.1 / share and the payment of the dividend for - € 3.85 / share.

The ANR Triple NET EPRA is determined in particular on the basis of shareholders' equity consolidated under IFRS (including the fair value method) and the market value of debt and financial instruments.

 12/31/201806/30/2019Evolution in %
Consolidated equity124.8126.51%
Neutralization of the fair value measurement of financial instruments0.50.8 
Value adjustment of the goodwill (PAREF Gestion)(1)19.524.0 
Unrealized capital gains / losses on assets carried at cost00 
ANR EPRA (in € m)144.8151.45%
ANR EPRA / diluted share (in €)100.3104.64%
Fair value measurement of financial instruments-0.5-0.8 
Fair value adjustment of fixed rate debt-0.6-0.3 
Deferred taxes on fair values-0.5-0.6 
Triple net EPRA NAV (in € m)143.1149.65%
Triple net EPRA NAV / diluted share (in €)99.1103.44%
Neutralization of deferred taxes on fair values0.50.6 
Reconstitution NAV, Group share (in € m)152.9159.64%
Reconstitution NAV / diluted share (in €)105.9110.34%

(1) The valuation of PAREF Gestion's goodwill is based on the application of coefficients on the average turnover of the last two years (twice on management fees and 0.5 times on subscription fees on average


VII - Post-closing events

PAREF signed on July 15, 2019 a promise to purchase with a view to acquiring 6 floors of the Franklin tower located on the forecourt of La Défense (Grand Paris). This acquisition should be finalized at the end of September 2019 and carried out in partnership with an institutional fund indirectly held by the Fosun Group.


VIII - Other EPRA indicator

  • EPRA Recurring Net Income
In € k06/30/201806/30/2019Evolution in %
Consolidated net income, Group share8,9617 878-12%
(i) Change in JV of imm. investments and other assets-4,262-1,613-62%
(ii) Gains / losses on disposals of assets or companies and other disposals-248-1 8816.6x
(iii) Gains or losses on disposals of available-for-sale financial assets00 
(iv) Taxes on capital gains or losses on disposals00 
(v) Impairment of goodwill / Goodwill negative00 
(vi) Change in fair value of financial instruments and cancellation fees for derivatives-194270n / A
(vii) Acquisition costs on acquisitions of companies and other interests00 
(viii) Deferred taxes resulting from adjustments00 
(ix) Adjustment (i) to (viii) on companies held in partnership650170-74%
(x) Participations not giving control over adjustments00 
EPRA recurring net income4,9074,823-2%
Average number of shares1 319 3671,439,948 
Recurring EPRA net income / share€ 3.72€ 3.35-10%
  • EPRA vacancy rate
In € k12/31/201806/30/2019Evolution in %
Estimated rental income on vacant space (1)662348 
Rental income estimated over the entire portfolio (1)8,1445 223 
EPRA vacancy rate8.1%6.7%-1.5pts

(1) Excluding the Gaïa building as a share, excluding investments in SCPI Vivapierre. Including Gaia, the EPRA vacancy rate stands at 18.1% as of June 30, 2019 compared to 17.2% as of December 31, 2018.

  • EPRA rate of return
In € k12/31/201806/30/2019Evolution in %
PAREF net capitalization rate6,29%6,79%0.5pts
 Effect of estimated fees and charges-0.4%-0.4%-0.1pts
 Effect of changes in scope0.2%-0.2%-0.4pts
EPRA Net Initial Yield (1)6,10%6.1%0.0pts
 Effect of rent adjustments0.3%0.4%0.1pts
Initial Net Yield Topped-Up EPRA (2)6.38%6,47%0.1pts

(1) The EPRA net initial rate of return is defined as the annualized contractual rent, net of charges, after deduction of rental arrangements, divided by the value of the portfolio including transfer taxes.
(2) The EPRA net initial rate of return is defined as the annualized contractual rent, net of charges, excluding rental adjustments, divided by the value of the portfolio including transfer duties.

  • EPRA cost ratios

The ratios below are calculated on the scope of assets held directly by the PAREF Group (including equity method).

In € k06/30/201806/30/2019Evolution in %
Included :   
(i) General expenses-597-6204%
(ii) Charges on buildings-171-100-42%
(iii) Rental charges net of fees-2,518-2,418-4%
(iv) Management fees net of actual / estimated margins00n / A
(v) Other income net of re-invoicing covering overheads00n / A
(vi) Share of overheads and expenses of associates-203-35475%
(vii) Depreciation of investment properties   
(viii) Land charges1,2831,3525%
(ix) Re-invoiced rental charges included in rents75884011%
Costs (including vacancy costs) (A)-1,447-1 301-10%
(x) Less: vacancy charges (unrecovered rental charges)24940864%
Costs (excluding vacancy costs) (B)-1 199-893-26%
(xi) Rental income less land charges5,0784,704-7%
(xii) Less: re-invoiced rental charges included in the rents-1 283-1 3525%
(xiii) Plus: share of rental income less land charges of companies accounted for by the equity method1,569976-38%
Rental income (C)5 3644,328-19%
Cost ratio (including vacancy costs) (A / C)27.0%30.1%+3 pts
Cost ratio (excluding vacancy costs) (B / C)22.4%20.6%+2 pts


BALANCE SHEET ASSETS (in k €)12/31/201806/30/2019
Non-current assets  
Investment property110 37097,090
Intangible assets76117
Tangible fixed assets4822,655
Financial fixed assets11 07312,692
Investments in associates9 91010,004
Financial assets1,0071,070
Total non-current assets132,918123 627
Current assets  
Customers and other debtors10 37214 482
Other receivables and accruals147240
Derivative instruments--
Cash and cash equivalents28,43740 365
Total current assets38,95655,087
Non-current assets held for sale7003,050
TOTAL ASSETS172,574181 764
BALANCE SHEET (in k €)12/31/201806/30/2019
Share capital36,04036 103
Premiums linked to capital39 92239,923
Fair value reserves4568
Change in value of hedging instruments(230)(739)
Consolidated reserves37,24743,254
Consolidated result11,8037 878
Equity - Group share124,827126,487
Minority interests--
Total equity124,827126,487
Non-current liabilities  
Financial debts, long-term portion29 22638,750
Deferred tax liabilities, net11751
Total non-current liabilities29 93139 234
Current liabilities  
Financial debts, short-term portion5 5411,094
Derivative instruments540844
Trade payables and related accounts4,5196,125
Social and tax debts5,2935 877
Other debts and accruals1,9242 102
Total current liabilities17 81716,043


CASH FLOWS (in € k)06/30/201806/30/2019
Operating flow  
Net profit8,9617 878
Depreciation and amortization37142
Fair value revaluations of investment properties(4,262)(1613)
Fair value revaluations of derivative instruments(194)(204)
Fair value revaluations of financial assets-15
Changes in taxes1,1451,166
Capital gains or losses on the disposal of fixed assets net of tax(248)(1,881)
Share of results of associates(142)(888)
Self-financing capacity after cost of financial debt and before tax5,2964,615
Cost of net financial debt7581,244
Taxes paid(911)(1,899)
Self-financing capacity before cost of financial debt and after tax5 1433 960
Changes in working capital(877)(1,208)
Net cash flow from operating activities4 2672 752
Investment flows  
Acquisition of investment properties(14)(1,397)
Other acquisitions of fixed assets(99)(24)
Sale price of investment properties179816,000
Acquisition of financial fixed assets(1315)(1,064)
Disposal of financial fixed assets--
Change in investments in associates--
Financial products received4837
Impact of changes in scope--
Cash flow used by investing activities41813 553
Funding flow  
Change in capital16,43064
Treasury shares449(199)
Increase in bank loans-30,000
Change in other financial debts42-
Repayment of rental debts-(2,078)
Loan repayments(2,030)(24,276)
Change in bank loans(671)(10)
Interest paid(841)(2 327)
Dividends paid to shareholders and minority shareholders(4,316)(5552)
Cash flows used by financing activities9,062(4 377)
Increase / (Decrease) in cash13,74711 928
Cash and cash equivalents at the start of the fiscal year10,02328,437
Cash and cash equivalents at year end23,77040 365


The statutory auditors issued their report on the half-yearly financial information on July 31, 2019 after carrying out the limited review of the condensed half-year consolidated financial statements relating to the period from January 1 to June 30, 2019.

Financial Agenda
October 30, 2019: Financial information as of September 30, 2019

About the PAREF Group
PAREF is developing in two complementary activities sectors: (i) investment through the real estate company SIIC PAREF mainly in real estate for companies in the Paris region (128 M € of assets as of June 30, 2019) and (ii) management on behalf of third parties through PAREF Gestion (€ 1,656 million in funds managed as of June 30, 2019), a management company approved by the AMF.

PAREF is a SIIC real estate company, listed on compartment C of Euronext Paris - FR0010263202 - PAR
More information on

Antoine CASTRO
General manager

Antoine ONFRAY
Chief Operating Officer
Phone. : 01 40 29 86 86

Press contact
Citigate Dewe Rogerson, Alexandre Dechaux
01 53 32 84 79


1 Civil companies of real estate investments
2 Collective Real Estate Investment Organization
3 Excluding the Gaïa building. Including the Gaïa building, the financial occupancy rate stood at 81.9% as of June 30, 2019, compared to 82.8% at the end of 2018.
4 Including the Gaïa building in quota. Excluding holdings in Vivapierre and shares in PAREF Gestion
5 All existing financing and associated hedging instruments were repaid with the exception of leases on the real estate complex located in Dax and Saint-Paul-Les-Dax.
6 Backed by an indirect mortgage on the asset located in Levallois and held by the company Polybail.
7 LTV: consolidated net debt divided by the value of the consolidated assets excluding duties.
8 ICR: consolidated financial expenses excluding prepayment charges divided by current operating income.

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