Press releases

THIRD QUARTER 2020 FINANCIAL INFORMATION

  10/29/2020 6:00 PM

Press release

Paris, October 29, 2020

THIRD QUARTER 2020 FINANCIAL INFORMATION

AND CHANGE IN THE MANAGEMENT OF THE PAREF GROUP

Consolidated turnover

  • PAREF Group's consolidated turnover reached € 25.5 million as of September 30, 2020[1] which is explained by:
    • a significant increase in rental income (+ 50% compared to the same period in 2019) following the acquisition in the Franklin Tower in September 2019 and thanks to the work of & #39; asset management which enabled rents to increase by 3, 5% at constant scope,
    • growth in management fees (+ 2.7%) due to the increase in assets under management and the acquisition of the Italian platform in 2019,
    • a decrease in subscription fees (-151TP1Q compared to the same period in 2019 after restating the & 1TP3Q39; exceptional event1 in 2019, -32% excluding restatement). This is explained by a slowdown in the appetite of individuals to invest in SCPI products in a context of a continuing health crisis.
Turnover (in € m)1 09/30/2019 09/30/2020 Evolution in %
Gross rental income[2] 4.6 7.0 50%
Commissions 23.5 18.6 -21%
- of which management fee 7.2 7.4 3%
-of which subscription commission 16.3 11.2 -32%
Total 28.2 25.5 -9%

Highlights of operational activity

  • In line with its strategy of internationalization, PAREF Gestion launched on September 3, 2020, the marketing of a new SCPI fund “Interpierre Europe Centrale”. This SCPI invests in office and business premises assets located mainly in Poland but also in the Czech Republic and Hungary;
  • Gross inflows from third-party activity reached € 118 million as of September 30, 2020 on SCPI funds (€ 189 million as of September 30, 2019);
  • In October 2020, the Group finalized the refinancing of 5 of the 7 sites owned by the Vivapierre fund and operated by Belambra Club. The historic leases were refinanced by mortgage financing of nearly € 42 million with a maturity of 9 years.

Change in the management of the PAREF Group

  • Mongtao Liu was appointed Chairman of the Board of Directors of PAREF replacing Ping Gong who stepped down as Chairman and Member of the Board of Directors. Mingtao Liu was also appointed to the Compensation and Nomination Committee, replacing You Zhou.

Liang Sha, co-CFO of Fosun Hive, has joined the board of directors as a director.

  • Antoine Onfray, currently Deputy CEO of the PAREF Group, informed the Board of Directors of his desire to leave his post. He will step down in November 2020.

The Board of Directors and Antoine Castro, Chief Executive Officer, took note of this position and warmly thanked Antoine Onfray for his contribution to the Group which has led to operational and financial success over the past 3 years.

  • The Group has carried out several recruitments in order to strengthen the scope covered by Antoine Onfray with in particular the arrival of Magali Volet as financial director and a new investment director who will join the Group by the end of the year.

“In a context of a continuing health crisis, the strategy implemented over the past 3 years has once again demonstrated its resilience. The portfolio of directly owned assets is being consolidated with significant value creation potential through redevelopment projects. The activity on behalf of third parties continues to expand internationally and move upmarket to better meet the needs of individual and institutional clients. The Group is achieving good results and has significant growth prospects, all supported by a solid balance sheet. I would like to thank the teams, the members of the Board of Directors and Antoine Castro for their trust and unfailing support. They allowed me to lead this magnificent mission with conviction and joy on a daily basis. "

Antoine Onfray - Deputy CEO

“I would like to warmly thank Antoine Onfray for his work which has resulted in solid achievements over the past three years. It was a pleasure working with him and I wish him well in the future.

We talk a lot about stimulus and issues related to Covid, but the geopolitical uncertainties in Europe, as well as in the Sino-US relationship, are still here and they are here to stay, so we should not underestimate this. PAREF's organization around its three pillars benefits from a well-diversified business model with a wide regional mix and a new generation of qualified managers who have joined PAREF to continue to support PAREF throughout its career.

Thanks for your best efforts. "

Antoine Castro - Managing Director

Financial Agenda

February 18, 2021: 2020 annual results

About the PAREF Group

PAREF is developing in two complementary activity sectors: (i) investment through the real estate company SIIC PAREF mainly in real estate for companies in the Paris region (€ 0.2 billion in assets as of June 30, 2020) and (ii ) management on behalf of third parties through PAREF Gestion (€ 1.8 billion of funds managed as of June 30, 2020), a management company approved by the AMF and PAREF Investment Management (€ 0.4 billion as of June 30, 2020).

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

Paref@citigatedewerogerson.com


[1] The turnover at 09/30/2019 included the commission for a € 40 million subscription related to an acquisition on behalf of SCPI Novapierre 1 to 1st half of 2019 which did not generate any net commission for the Group. Restating this impact, turnover at 09/30/2020 is up 2.5% compared to the same period in 2019.

[2] Excluding recovered charges, excluding Gaïa and Vivapierre consolidated by the equity method.


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