Press releases

PAREF - Business continuity in the face of the Covid-19 crisis

  04/03/2020 20:00

PRESS RELEASE

Paris, April 3, 2020

THE PAREF GROUP ENSURES THE CONTINUITY OF ITS ACTIVITIES IN THE FACE OF THE CRISIS

COVID-19 THANKS TO AN EFFECTIVE ORGANIZATION AND A DIVERSIFIED STRATEGY

Business continuity ensured with strong team involvement

Faced with the scale of the health and economic crisis caused by the Covid-19 pandemic, the PAREF Group has taken strict measures to protect its employees and partners. L & #39; all teams in France, Italy and Switzerland have been working remotely since March 16, 2020[1] thanks to the implementation over the last two years of & #39; an IT architecture and the tools necessary for the digitalization of communications and management processes. This organization, combined with the mobilization of employees at European level, contributes to the international fight against the spread of the virus, and guarantees the continuation of activities and services to the customers and shareholders of the PAREF Group.

A diversified strategy that allows the sustainability and resilience of the model

PAREF's strategy remains based on a balanced development of 3 businesses through PAREF SIIC, PAREF Gestion and PAREF Investment Management to better diversify sources of income and adapt to the economic environment.

The PAREF Group also recalls that & #39; it benefits from & #39; a healthy financial situation with a debt ratio (LTV) and financial interest coverage (ICR) of respectively 28% and 7.8X as of December 31, 2019 and currently has d & #39; a liquidity position of € 44 million (including the confirmed and available line of credit).

Building on this strategy and its ability to ensure the continuity of its operations, the PAREF Group announces that it has successfully achieved:

  • The final signing of the sale of the 3 assets held by PAREF located in Meythet, Saint-Etienne and Thyez, on April 2, 2020 and for a total net seller amount of more than € 3 million, i.e. in line with the last appraisal value ;
  • L & #39; acquisition on behalf of SCPI Novapierre Résidentiel of 2 residential assets located in Neuilly-Sur-Seine and Paris 14th in March 2020, as well as the signing of 2 purchase promises, all representing more than 1,200 m² for a total amount of nearly € 8.5 million net seller;
  • The acquisition on behalf of SCPI Novapierre Germany 2 of two commercial assets located in Düren (transfer of ownership in February 2020) and in Hanover (acquisition contract signed in March 2020) for a total amount of € 19 million.

In the short term, the proposal for a dividend of € 4.00 per share for the 2019 financial year payable in cash or in shares is maintained. It is subject to the approval of the Combined General Meeting which has been postponed to May 7, 2020.[2]. All of this dividend comes from the sector exempt from corporation tax in application of article 208 C of the General Tax Code.

PAREF Gestion has requested, on behalf of the OPPCI Vivapierre fund in which PAREF holds 27.2% shares, the delay in the maturity of the leases maturing in April 2020 with banking partners.

In the medium and longer term, it is now too early to accurately estimate the impact of this crisis, both on the Group's financial results and on the performance of products managed on behalf of third parties. However, PAREF Gestion has carried out stress tests (stress tests) on SCPIs managed with variable capital and which distributed a dividend for the year 2019. These tests confirm the ability of all these SCPIs to distribute a dividend for the first quarter of 2020.

The Group remains committed on a daily basis, as it has done for nearly 30 years, alongside all of its 20,000 associates, partners and shareholders.

A permanent presence with tenants and in participation in the effort at European level

PAREF relies on the close relationships established with the tenants of its assets held directly or via managed funds in order to provide them with the best possible support during this delicate period. In this sense, the PAREF Group applies the legal measures applicable in the various jurisdictions.

In addition, the PAREF Group is active in participating in the effort against Covid-19 and in particular participated in several actions to donate and distribute masks and other necessary materials in France and Italy.

Financial Agenda

April 28, 2020: Financial information as of March 31, 2020
May 7, 2020: Combined General Meeting (1)

About the PAREF Group

PAREF is developing in two complementary activity sectors: (i) investment through the real estate company SIIC PAREF mainly in the real estate of companies in the Paris region (€ 0.2 billion in assets as of December 31, 2019) and (ii ) management on behalf of third parties through PAREF Gestion (€ 1.6 billion of funds managed as of December 31, 2019), a management company approved by the & #39; AMF and PAREF Investment Management (€ 0.4 billion as of December 31, 2019)

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

Contacts

Antoine CASTRO Antoine ONFRAY

Managing Director Deputy Managing Director

info@paref.com

Phone. : 01 40 29 86 86

Press contact

Citigate Dewe Rogerson

Alexandre Dechaux / Hugo Boussier

07 62 72 71 15/06 66 41 01 22

Paref@citigatedewerogerson.com


[1] The Milan-based teams worked remotely from March 9, 2020.

[2] In the context of the coronavirus epidemic (COVID-19), traffic restrictions and containment measures imposed by the Government, the Combined General Meeting of the Company's shareholders of May 7, 2020 could be held exceptionally without the physical presence of its shareholders, behind closed doors, at the Company's head office, located at 153, boulevard Haussmann, 75008 Paris. In this case, the shareholders would be invited to participate in the General Meeting by voting by mail or by giving proxy to the Chairman of the General Meeting. As the conditions for holding the General Meeting are likely to change depending on health requirements and / or legal or regulatory provisions, shareholders are invited to regularly consult the section dedicated to the General Meeting on the Company's website. : www.paref.com (finance section / general meetings).


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