Press releases

ANNUAL RESULTS AT DECEMBER 31, 2020

  02/18/2021 6:00 PM

A 3-pillar strategy that demonstrates resilience in the context of a global health crisis

 

At Group level, assets under management increased by 9%, reaching nearly 2.4 billion euros

  • € 196m in own account assets (+ 3% at constant scope compared to December 31, 2019);
  • € 2,187M managed on behalf of institutional or private third parties (+ 10% compared to December 31, 2019) mainly in the form of SCPI1 and OPPCI2.

Solid financial indicators

  • EPRA Net recurring results per share increased by 8% at €5.40 (€5.02 as at December 31, 2019)
  • EPRA Net Asset Value of reconstitution (Net Reinstatement Value / NRV) in 6% rise at € 125.1 per share (€ 117.9 per share at December 31, 2019);
  • Ratio of & #39;indebtedness (LTV) 3in drop to 25% (against 28% at 12/31/2019);
  • A substantial liquidity over € 42 million (including a confirmed undrawn credit line).

The PAREF Board of Directors, which met on February 18, 2021, approved the parent company and consolidated accounts as of December 31, 2020. The audit procedures by the statutory auditors are in progress.

“PAREF has continued its transformation and this has borne fruit despite this unprecedented health crisis.
Innovation, internationalization, strengthening of skills, investment in technology, cost control and a reasoned real estate investment policy have been reflected in our financial results: significant increase in recurring income, increase in assets under management , decrease in debt with solid financial fundamentals.
PAREF has been able to stay its course in the storm without any request for public aid thanks to the unfailing commitment of all our teams. I sincerely thank them for their exemplary determination on a daily basis.
We will continue on this path in 2021, with great confidence in our business model, which has proven its worth in 2020. "

Magali Volet - Group Chief Financial Officer

“The year 2020 confirmed the relevance of the PAREF group's strategy. Based on a balanced development of our three pillars, the Group's economic model has proven to be resilient and capable of performing in times of crisis. This trend should be confirmed at the end of the crisis.
The 2021 agenda will still be difficult because the COVID-19 pandemic has, and will continue to have, a significant impact on the economy and real estate markets, for customers and tenants. This situation will continue and we will continue to face it in the months to come.
However, we are convinced that PAREF's model is robust and that our resilient strategy is appropriate to ensure the performance expected by our shareholders.
Finally, I would like to extend to the great PAREF family all my thanks and gratitude for the efforts made throughout the year, in a most difficult operating environment, which allowed us to achieve these satisfactory results. "

Antoine Castro - Group Chief Executive Officer

Find the full press release and graphics in the PDF.

I - Real estate activity

The first pillar of the Group is PAREF: a property company listed on Euronext with a SIIC tax regime. Its directly owned assets are the driving force behind the Group's value creation.

As of December 31, 2020, PAREF holds:

  • 11 live assets,
  • two main subsidiaries, namely PAREF Gestion and PAREF Investment Management, and
  • minority interests in SCPI / OPPCI.
  • A continuation of the active management strategy

PAREF a maintained its strategy of active management of its assets, by pursuing its repositioning progressive on assets of more significant size, mainly located in the Greater Paris. Thereby, the average size of assets has almost tripled in two years, going from 6.4 M € to 16.7 M €, + 45% in the year 2020 alone.

The 5 assets located in Meythet, Saint-Etienne, Saint Maurice, Thyez and Trappes were ceded for a total net seller amount of € 5.4 million, in line with the latest appraisal value.

  • A portfolio refocused on Greater Paris, which sees its valuation increase on a like-for-like basis

The value of PAREF's heritage4 s & #39; stood at € 196m as of December 31, 2020. It is made up of € 184m of real estate assets (including the stake in the Le Gaïa building) and € 12m of financial stakes in funds managed by the Group.

Key figures for directly owned assets5 12/31/2019 12/31/2020
Number of active 16 11
Rental area (in operation) 111,074m² 99,619 m²
Valuation € 185m  184 M €

In accordance with the strategy implemented, the heritage is refocusing on Greater Paris.

The property portfolio of real estate assets owned by PAREF (excluding Gaïa) amounts to € 166.5 million, up 2.8% at constant scope and a decrease of 0.5% at current scope compared to the end of 2019, mainly explained by:

  • disposals for € 5.4 million (values at December 31, 2019);
  • improvement costs and works carried out in 2020 for € 4.0 million, and
  • a revaluation of the assets in the portfolio for around € 0.6 million.
  • Proactive rental management

In a context of health crisis, 4 leases were signed over more than 2,500m². In February 2020, PAREF notably signed a 9-year firm lease for an area of 1,751m² in the Le Gaïa building in Nanterre. The occupancy rate for this asset is now increased to 64%.

The Group's financial occupancy rate stood at 81.1 % at December 31, 2020, compared to 86.2 % at December 31, 20196. This decrease is mainly linked to the end of leases for the tenants of Gentilly and Juvisy-sur-Orge, for which repositioning is planned in order to understand the full value potential of these assets.

The weighted average maturity of the leases improved slightly to 4.9 years at the end of December 2020 against 4.8 years at the end of 2019, in particular thanks to the rental of the Gaïa and the lease renewals of the Léon Frot asset in Paris.

The schedule profile of the leases on the owned assets is as follows:

  • Net rental income up by 27% despite the health crisis

the net rental income by PAREF progresses 27% to 8.4M € in 2020. This increase is mainly explained by:

  • the full year effect of the 6 floors of the Franklin Tower at La Défense acquired in the second half of 2019;
  • partially offset by 1) evictions of tenants from the building located in Levallois-Perret as part of the “The Go” restructuring project, and 2) the disposals of assets carried out in 2019 and 2020.
Rental results on own assets (k €) 2019 2020 Evolution in %
Gross rental income 6 964 8,974 29%
Rental charges re-invoiced 2,791 3 103 11%
Rental charges, taxes and insurance -3 358 -3 700 10%
Non-recoverable charges -566 -597 5%
Other income 218 4 -98%
Total net rental income 6,616 8 381 27%

At constant scope, gross rental income progress from 2.9% due to & #39; an indemnity received for the Gentilly asset & #39; positive impact of the renegotiation of the lease on the assets located in Dax and Saint-Paul-lès-Dax.

The average gross rate of return on its own assets stood at 6.2 % compared to 7.0% at the end of 20197.

Thanks to the quality of our tenants and the diligent work of the Rental Management teams, the recovery rate of rents and rental charges reached nearly from 95% in 2020.

II - Management on behalf of third parties

The second pillar is PAREF Gestion: the Group's portfolio management company, regulated according to the AIFM directive.

The third pillar is PAREF Investment Management: the operating company which operates across the entire real estate value creation chain, offering investors the benefit of PAREF's integrated services in terms of acquisition and asset management. , project management and rental management, among others.

  • Dynamic activity for the assets under management

PAREF Gestion

Benefiting from multi-sector expertise for more than 30 years, PAREF Gestion continues to develop innovative products while respecting a desire for clarity thanks to vehicles with targeted and homogeneous investments. After the successes of Novapierre Germany and Novapierre Germany 2, the Group's strong desire to internationalize has resulted in a major innovation:

The launch of Interpierre Central Europe: 1time SCPI in this geographical area
Despite the economic slowdown linked to the COVID-19 health crisis, PAREF Gestion has opened up new territory to its clients. This SCPI's strategy is to invest in office and logistics real estate mainly in Poland, Czech Republic and Hungary. Its AMF visa was obtained in June 2020 and subscriptions have been open since September 2020.

A stable ratio of net inflows to gross inflows compared to 2019, demonstrating investor confidence
PAREF Gestion collected a total amount of € 151 million in gross subscriptions from investors in SCPI funds, representing a decrease of 43 % compared to 2019 (€ 267 million). This decline is explained by a scissors effect between two main factors:

  • the COVID-19 health crisis which significantly slowed down the appetite of individuals for real estate investment;
  • a particularly large subscription in 2019 thanks to the acquisition of & #39; a portfolio of nearly € 100 million on Novapierre 1 which was accompanied by subscriptions of nearly € 40 million.

Restated for the exceptional subscription on Novapierre 1, gross inflows are down 28% compared to 2019.

Breakdown of gross collection in 2020:

Type Funds 2019 gross inflows (€ m) 2020 gross inflows (€ m) Evolution in %
SCPI Novapierre Germany 2 76 92 22%
Interpierre France 52 30 -43%
Novapierre Residential 6 18 188%
Interpierre Central Europe - 5 n / A
Novapierre Germany 84 5 -94%
Novapierre Italy 3 1 -53%
Novapierre 1 47 1 -98%
Total   267 151 -43%

Investments and arbitrations

PAREF Gestion has achieved nearly 178M € of investments for all SCPIs under management, in particular:

  • € 54 million for Novapierre Germany 2 since its launch in September 2019,
  • € 44 million for Novapierre Germany as part of an acquisition of a retail portfolio,
  • € 39 million for Interpierre France, and
  • € 34 million for Novapierre Residential.

PAREF Gestion also carried out disposals for € 15 million, including in particular:

  • € 4 million for Novapierre Residential,
  • € 4 million for Novapierre 1,
  • € 3 million for Interpierre France.

Breakdown of funds managed by PAREF Gestion as of December 31, 2020

PAREF Gestion manages assets on behalf of third parties of € 1,764 million, in progression of 11 % compared to December 31, 2019 at € 1,593 million.

Type Funds Strategy Assets under management Assets under management Evolution in %
(€ m) (€ m)
31-Dec-19 31-Dec-20
SCPI Novapierre Germany8 Shops 543 616 13%
Novapierre Residential8 Residential 286 329 15%
Novapierre 18 Shops 254 252 -1%
Interpierre France8 Office / Logistics 154 184 20%
Novapierre Germany 28 Shops 70 158 125%
Capiforce Pierre9 (1) Diversified 62 - -100%
Atlantic Stone 19 Diversified 57 57 -1%
Cifocoma 29 Shops 25 25 1%
Cifocoma 19 Shops 25 24 -1%
Interpierre Central Europe8 Office / Logistics - 4 n / A
Novapierre Italy8 Tourism 3 4 34%
SCPI Subtotal   1,477 1,652 12%
OPPCI Vivapierre9 Hotel residences 92 86 -6%
Total OPPCI   92 86 -6%
Other AIFs   24 25 3%
Total     1,593 1,764 11%

(1) The management mandate ended on December 31, 2020 following the decision of the General Meeting in October 2020

PAREF Investment Management

Present in France, Italy and Switzerland, PAREF Investment Management aims to provide institutional investors with the benefit of its skills, already at the service of PAREF and PAREF Gestion, particularly in terms of investment, asset management and management. of projects and rental management.

The Italian subsidiary of PAREF Investment Management is currently managing a restructuring project of the “The Medelan” building located in the historic city center of Milan on behalf of the Portuguese insurance company Fidelidade.

This mixed-use asset covers nearly 55,000 m² and will offer the best market standards, particularly environmental standards, with the Leed Platinium certificate. Delivery of the restructuring project is scheduled for 2022.

  • A decrease in total commissions of only 7% despite the health context: the decrease in net subscription commissions was almost offset by the increase in management commissions

Management fees increased by 5% compared to 2019 to reach € 10.1 million in 2020. This increase is mainly explained by the following elements:

  • +1 M €: increase in assets under management
  • + € 0.9m: revenues from the Italian platform
  • - € 0.8m: decrease in commissions on disposals and investments
  • - € 0.3 M: fencing of OPPCI 54 Boétie and an OPPCI of hotel walls
  • -0.1 M €: impact on commissions due to uncollected rents in the context of Covid-19.

The other commissions and retro-commissions reached 2.9 M € in 2020, against 4.4 M € in 2019.

Gross subscription fees amounted to € 14.2 million in 2020, down 40% compared to 2019, in connection with the sharp drop in inflows during a period of health crisis.

At the same time, retro-commissions also fell to € 11.3 million, against € 19.3 in 2019 (-42%). This is explained by:

  • the decrease in retro-commissions paid to subscription distributors due to the decrease in inflows (- € 7 million in retro-commissions)
  • and the decline in fees paid to service providers in Germany (- € 1 million) thanks to the delay in acquisitions of SCPI Novapierre Germany 2.
Commissions (in k €) 2019 2020 Evolution in %
Management commissions 9 650 10,117 5%
Subscription fees 23,708 14 174 -40%
Retro-commissions -19,312 -11 288 -42%
Net commissions 14,045 13,002 -7%

Strengthened human resources with an experienced team

The PAREF Group also continued to attract new talents and experienced managers during 2020, including in particular:

  • Magali Volet, appointed Chief Financial Officer of the PAREF Group in August 2020,
  • Matthieu Navarre who joined us in February 2020 as Sales Director PAREF Gestion, and
  • Sophie Bourguignon as Director of Fund and Investment Management since October 2020 of PAREF Gestion.

With these experienced profiles in the real estate sector, the Group will be able to accelerate the implementation of its strategy.

III - 2020 EPRA income statement and recurring net income

Consolidated income statement:

Detailed consolidated income statement (in k €)  2019 2020 Evolution in %
Gross rental income  6 964  8,974 29%
Rental charges re-invoiced 2,791 3 103 11%
Rental charges, taxes and insurance -3 358 -3 700 10%
Rental charges and taxes not recovered -566 -597 5%
Other income 218 4 -98%
Net rental income 6,616 8 381 27%
Turnover on commissions 33,358 24,291 -27%
-of which management fees 9 650 10,117 5%
-of which subscription fees 23,708 14 174 -40%
Retro-commissions -19,312 -11 288 -42%
Net commission income 14,045 13,002 -7%
General operating expenses -11 415 -11 548 1%
Depreciation and impairment -428 -571 33%
current operating income 8 818 9 264 5%
Change in fair value of investment properties  3,241 567 -82%
Income from the sale of investment properties  2,744 -18 n / A
Operating income 14,803 9 814 -34%
Financial products 67 31 -54%
Financial expenses -2,063 -1 408 -32%
Cost of net financial debt -1996 -1 377 -31%
Other financial income and expenses 319 211 -34%
Value adjustment of financial instruments 294 - -100%
Share of associates 1,579 342 -78%
Net income before taxes  15,000 8 990 -40%
Tax charges -1 526 -840 -45%
Consolidated net income 13,474 8,150 -40%
Net income attributable to non-controlling interests - - n / A
Consolidated net income, Group share 13,474 8,150 -40%
Average number of shares (undiluted) 1,442,099 1,480,927  
Consolidated net income per share (Group share) 9.34 5.50 -41%
Average number of shares (diluted) 1 448 027 1,483,407  
Consolidated net income per share (diluted Group share) 9.30 5.49 -41%

PAREF has released a recurring net income up 11% compared to 2019.

Consolidated net income Group share of € 8.2 million at December 31, 2020 is down 40% compared to 2019. This is explained in particular by:

  • net rental income which increased by 27% to reach € 8.4 million, thanks to full-year rents for the 6 floors of the Franklin Tower acquired in mid-2019;
  • net commission income, which fell by 7% to € 13.0 million, mainly explained by the general slowdown in inflows linked to the health crisis; the increase in assets under management of existing funds made it possible to partially offset this decrease via the increase in management fees;
  • general operating expenses were almost stable at nearly € 11.5 million (+ 11TP1Q compared to 2019), with the strengthening of the teams offset by strict cost control;
  • depreciation and amortization reached € 0.6 million, the increase of 33% compared to 2019 is mainly linked to the investments made for the improvement of tools and the IT system;
  • a revaluation of buildings of € 0.6 million, mainly concerning the hotel complexes located in Dax and Saint-Paul-lès-Dax;
  • the cost of financial debt decreased to € 1.4 million in 2020 against € 2.0 million in 2019 (i.e. a decrease of 31%). This decrease is explained by the full-year effect of the refinancing of the Group's debt in February 2019 and of the early repayment indemnity of € 0.5 million in 2019;
  • the result of the share of companies accounted for by the equity method came to € 0.3m in 2020 compared to € 1.6m in 2019 (a decrease of 78%). This decrease is due to the negative variation in the fair value of assets and costs related to the refinancing of Vivapierre's mortgage leases.

EPRA Recurring Net Income up 111TP1Q compared to 2019

In € k 12/31/2019 12/31/2020 Evolution in %
Consolidated net income, Group share 13,474 8,150 -40%
Adjustments      
(i) Change in JV of imm. investments and other assets -3 241 -567 -82%
(ii) Gains / losses on disposals of assets or companies and other disposals -2 744 18 n / A
(iii) Gains or losses on disposals of available-for-sale financial assets - -  
(iv) Taxes on capital gains or losses on disposals - -  
(v) Impairment of goodwill / Goodwill negative - -  
(vi) Change in fair value of financial instruments and cancellation fees for derivatives 179 - -100%
(vii) Acquisition costs on acquisitions of companies and other interests - -  
(viii) Deferred taxes resulting from adjustments - -  
(ix) Adjustment (i) to (viii) on companies held in partnership -433 399 n / A
(x) Participations not giving control over adjustments - -  
EPRA recurring net income 7 235 7,999 11%
Average number of shares 1,442,099 1,480,927  
Recurring EPRA net income / share € 5.02 € 5.40 8%

IV - Financial Resources

the nominal amount of gross financial debt drawn down of the PAREF Group is down from 18% to € 64 million at December 31, 2020, compared to € 78 million at the end of 2019.

the average cost of drawn debt is reduced to 1.6% as of December 31, 2020, compared to 2.2 % as of December 31, 2019. This decrease is explained by the full-year effect of the Group's refinancing in February 2019. The change in the cost of debt since 2016 is presented below. below:

The residual average maturity of the debt is 3.1 years as of 12/31/2020, compared to 4.4 years at the end of 2019.

L & #39;all of the drawn debt is hedged by financial instruments, thus limiting its sensitivity to changes in interest rates.

The PAREF Group's financial ratios remain solid :

   12/31/2019 12/31/2020 Covenant
LTV10  28% 25% <50%
ICR11 7.8x 6.8x > 2.5x
DSF12 18% 13% <30%
Consolidated asset value13 € 217m 230 M € > 125 M €

Debt schedule:

The PAREF Group has € 42M in cash as of 12/31/2020: cash of € 7 million as of December 31, 2020, thus meeting the regulatory needs of the management company PAREF Gestion, plus € 35 million via a confirmed line of credit.

V - Assets under management at Group level

Assets under management are in progression of + 9% and reach close 2.4 billion d & #39; euros.

In € k 12/31/2019 12/31/2020 Evolution in %
1. Management for own account      
Assets held directly by PAREF 167,450 166,550 -1%
Investments held by PAREF14 29,322 29,728 1%
Total PAREF assets 196,772 196,278 -0.3%
       
2. Management on behalf of private and institutional third parties      
Novapierre Germany 543,273 616,247 13%
Novapierre Residential 285,639 329,021 15%
Novapierre 1 254,027 251 653 -1%
Interpierre France 153,559 184,132 20%
Novapierre Germany 2 70,047 157,546 125%
Capiforce Pierre (1) 61 879 -  
Atlantic Stone 1 57,051 56,644 -1%
Cifocoma 2 24,801 25,007 1%
Cifocoma 1 24,558 24,329 -1%
Interpierre Central Europe - 4,153 n / A
Novapierre Italy 2,620 3 504 34%
Vivapierre 91 780 86,400 -6%
Other assets managed on behalf of third parties (2) 417,380 448 360 7%
Total assets managed on behalf of third parties 1 986 616 2 186 996 10%
Reprocessing (3) -10 762 -10 942 2%
3. TOTAL MANAGED ASSETS 2 172 626 2,372,332 9%

(1) The management mandate ended on December 31, 2020 following the decision of the General Meeting of October 2020
(2) Includes Foncière Sélection Régions and the asset of “The Medelan” managed by the platform in Italy
(3) Part of the assets of PAREF (OPPCI Vivapierre) is included in the management of PAREF Gestion

VI - Revalued EPRA net assets

L & #39; Net Reinstatement Value (NRV) EPRA increases by 6% to reach € 125.1 per share at the end of 2020 (compared to € 117.9 per share at December 31, 2019).

This increase is mainly explained by the contribution of the 2020 result and the significant increase in the fair value of PAREF Gestion's goodwill (+ 52% compared to December 31, 2019). This has been carried out by an external expert since June 30, 2020.

EPRA NRV (Net Replenishment Value)
 - in k €

 
12/31/2019 12/31/2020 Evolution in %
IFRS equity - Group share 132,459 137,805 4%
Include / Exclude      
Hybrid instrument - - -
Diluted NAV 132,459 137,805 4%
Includes      
Revaluation of investment properties - - -
Revaluation of buildings undergoing restructuring - - -
Revaluation of other non-current assets (value of PAREF GESTION's goodwill15) 24,484 37 105 52%
Reassessment of leasing contracts - - -
Inventory revaluation - - -
NAV diluted at fair value 156,943 174,910 11%
Excludes      
Deferred taxes related to unrealized capital gains on investment properties - - n / A
Fair value of financial instruments 407 944 132%
Goodwill resulting from deferred taxes - - -
Goodwill recorded in the balance sheet n / A n / A  
Intangible assets n / A n / A  
Includes      
Fair value of debts n / A n / A  
Revaluation of intangible assets - - -
Transfer taxes 12 819 12,736 -1%
ANR 170,169 188,590 + 11%
Number of fully diluted shares 1,443,779 1 507 460  
NAV per share (in €) 117.9 125.1 6%

The ANR EPRA ratios are determined in particular on the basis of consolidated shareholders' equity under IFRS (including the fair value method) and the market value of debt and financial instruments, according to the “Best Practices Recommendations” of & #39; EPRA.

New ANR EPRA indicators as of December 31, 2020:

12/31/2020

In € k

 
EPRA NRV (Net Replenishment Value) EPRA NTA (Net going concern value) EPRA NDV (Net liquidation value)
IFRS equity - Group share 137,805 137,805 137,805
Include / Exclude      
Hybrid instrument - - -
Diluted NAV 137,805 137,805 137,805
Includes      
Revaluation of investment properties - - -
Revaluation of buildings undergoing restructuring - - -
Revaluation of other non-current assets (value of PAREF GESTION's goodwill16) 37 105 37 105 37 105
Reassessment of leasing contracts - - -
Inventory revaluation - - -
NAV diluted at fair value 174,910 174,910 174,910
Excludes      
Deferred taxes related to unrealized capital gains on investment properties - - n / A
Fair value of financial instruments 944 944 -
Goodwill resulting from deferred taxes - - -
Goodwill recorded in the balance sheet n / A - n / A
Intangible assets n / A -716 n / A
Includes      
Fair value of debts n / A n / A 230
Revaluation of intangible assets - n / A -
Transfer taxes 12,736 12,736 n / A
ANR 188,590 187 874 175 140
Number of fully diluted shares 1 507 460 1 507 460 1 507 460
NAV per share (in €) 125.1 124.6 116.2

As an indication, the EPRA ANRs of the old format are recalled below:

  12/31/2019 12/31/2020 Evolution in %
Consolidated equity 132.5 137.8 4%
Neutralization of the fair value measurement of financial instruments 0.4 0.9 132%
Value adjustment of the goodwill (PAREF Gestion)17 24.5 37.1 52%
Unrealized capital gains / losses on assets carried at cost - -  
ANR EPRA (in € m) 157.4 175.9 12%
ANR EPRA / diluted share (in €) 109.0 116.7 7%
Fair value measurement of financial instruments -0.4 -0.9 132%
Fair value adjustment of fixed rate debt -0.3 0.2 n / A
Deferred taxes on fair values -0.7 -1.1 56%
Triple net EPRA NAV (in € m) 155.9 174.1 12%
Triple net EPRA NAV / diluted share (in €) 108.0 115.5 7%
Neutralization of deferred taxes on fair values 0.7 1.1 56%
Rights 12.8 12.7 -1%
Reconstitution NAV, Group share (in € m) 169.4 187.9 11%
Reconstitution NAV / diluted share (in €) 117.3 124.6 6%

Transition table of ANR EPRA from the old format to the new indicators:

12/31/2020
In €
EPRA NRV EPRA NTA EPRA NDV
Diluted NAV per share (old format) 116.7 116.7 116.7
Transfer taxes 8.4 8.4  
Goodwill      
Intangible assets   -0.5  
Fair value of debts and financial instruments     -0.5
NAV per share 125.1 124.6 116.2

VII - Distribution

PAREF, faithful to its values, will continue to contribute to the national solidarity effort recommended by the public authorities
PAREF has not requested any public aid in 2020 and our teams remain fully mobilized. Despite the Group's good performance in 2020, PAREF will propose to moderate its dividend to € 2.30 per share for fiscal year 2020, thus covering the legal obligations of the SIIC regime. This proposed cash dividend will be submitted to the shareholders for approval at the General Meeting which will meet on May 20, 2021. This initiative will further strengthen the financial strength of the Group.

VIII - Post-closing events
None

IX - Strategy and outlook

PAREF Groupe continues its development in France and internationally on the basis of its 3 main pillars:

  • The gradual growth in the value of the real estate assets held by the company PAREF with a proactive approach: management of the existing portfolio, asset rotation and targeted investments, allowing the repositioning on assets of significant size and mainly located in Greater Paris;
  • The reasoned development of the management activity on behalf of individual investors by (i) the increase in assets under management on existing products and (ii) the creation of new products;
  • The acceleration of the management activity on behalf of institutional investors in France and in Europe.

X - Financial calendar
April 27, 2021: Financial information as of March 31, 2021
May 20, 2021: Combined General Meeting

 

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 December 31, 2020) and (ii ) management on behalf of third parties through PAREF Gestion (€ 1.8 billion of funds managed as of December 31, 2020), a management company approved by the & #39; AMF and PAREF Investment Management (€ 0.4 billion as of December 31, 2020)

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

More information on www.paref.com

Contacts
Antoine CASTRO

Group Managing Director
contact@paref.com
Phone. : +33 (0) 1 40 29 86 86

Magali SHUTTER
Group Chief Financial Officer

contact@paref.com
Phone. : +33 (0) 1 40 29 86 86

Press contact
Citigate Dewe Rogerson
Paref@citigatedewerogerson.com
Tom ruvira
Phone: +33 (0) 7 60 90 89 18



Philippe ronceau
Phone: +33 (0) 6 64 12 53 61

 

ANNEX

EPRA NTA (Net going concern value) at December 31, 2020

EPRA NTA (Net going concern value) - in k €
 
12/31/2019 12/31/2020 Evolution in %
IFRS equity - Group share 132,459 137,805 4%
Include / Exclude      
Hybrid instrument - - -
Diluted NAV 132,459 137,805 4%
Includes      
Revaluation of investment properties - - -
Revaluation of buildings undergoing restructuring - - -
Revaluation of other non-current assets (value of PAREF GESTION's goodwill18) 24,484 37 105 52%
Reassessment of leasing contracts - - -
Inventory revaluation - - -
NAV diluted at fair value 156,943 174,910 11%
Excludes      
Deferred taxes related to unrealized capital gains on investment properties - - n / A
Fair value of financial instruments 407 944 132%
Goodwill resulting from deferred taxes - - -
Goodwill recorded in the balance sheet - -  
Intangible assets -339 -716 111%
Includes      
Fair value of debts n / A n / A  
Revaluation of intangible assets - - -
Transfer taxes 12 819 12,736 -1%
ANR 169,803 187 874 + 11%
Number of fully diluted shares 1,443,779 1 507 460  
NAV per share (in €) 117.6 124.6 6%

EPRA NDV (Net liquidation value) as of December 31, 2020

EPRA NDV (Net liquidation value) - in k €
 
12/31/2019 12/31/2020 Evolution in %
IFRS equity - Group share 132,459 137,805 4%
Include / Exclude      
Hybrid instrument - - -
Diluted NAV 132,459 137,805 4%
Includes      
Revaluation of investment properties - - -
Revaluation of buildings undergoing restructuring - - -
Revaluation of other non-current assets (value of PAREF GESTION's goodwill18) 24,484 37 105 52%
Reassessment of leasing contracts - - -
Inventory revaluation - - -
NAV diluted at fair value 156,943 174,910 11%
Excludes      
Deferred taxes related to unrealized capital gains on investment properties n / A n / A  
Fair value of financial instruments n / A n / A  
Goodwill resulting from deferred taxes - - -
Goodwill recorded in the balance sheet - -  
Intangible assets n / A n / A  
Includes      
Fair value of debts -346 230 n / A
Revaluation of intangible assets n / A n / A  
Transfer taxes n / A n / A  
ANR 156,597 175 140 + 12%
Number of fully diluted shares 1,443,779 1 507 460  
NAV per share (in €) 108.5 116.2 7%

Other EPRA indicators

  • EPRA vacancy rate
In € k 12/31/2019 12/31/2020 Evolution in %
Estimated rental income on vacant space (1) 1,420 1,974  
Rental income estimated over the entire portfolio (1) 10 824 10 189  
EPRA vacancy rate 13.1% 19.4% + 6.3pts

(1) Including the Le Gaïa building as a share, excluding investments in the OPPCI Vivapierre. Excluding Le Gaïa, the EPRA vacancy rate stood at 16.9% at December 31, 2020 compared to 7.7% at December 31, 2019.

  • EPRA rate of return
In % 12/31/2019 12/31/2020 Evolution in %
PAREF net capitalization rate 6.15% 6.40% + 0.24pts
 Effect of estimated fees and charges -0.4% -0.5% -0.02pts
 Effect of changes in scope -0.1% -0.04% + 0.09pts
EPRA Net Initial Yield (1) 5,59% 5,90% + 0.31pts
 Effect of rent adjustments 0.2% 0.3% + 0.08pts
Initial Net Yield Topped-Up EPRA (2) 5,82% 6,22% + 0.4pts

(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 “topped-up” net initial rate of return is defined as the annualized contractual rent, net of charges, excluding rental adjustments, divided by the value of the assets including transfer duties.

  • Real estate investments made
In K € 12/31/2019 12/31/2020
Acquisition 66 812 -
Development (1) 1,441 3 194
Portfolio at constant scope (2) 713 788
Others (3) 820 1,204
Total 69 786 5 186

(1) Includes investments relating to the "The Go" project of the asset located in Levallois-Perret
(2) Mainly includes investments relating to the Dax asset and the 6 floors of the Franklin Tower
(3) Includes eviction indemnities and rental adjustments, capitalized financial costs relating to "The Go" projects

  • EPRA cost ratios

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

In € k 12/31/2019 12/31/2020 Evolution in %
Included :      
(i) General expenses -1 690 - 1,709 7%
(ii) Charges on buildings -169 - -100%
(iii) Rental charges net of fees -3 189 - 3700 16%
(iv) Management fees net of actual / estimated margins - - -
(v) Other income net of re-invoicing covering overheads - - -
(vi) Share of overheads and expenses of associates -567 -343 -39%
Excluded:      
(vii) Depreciation of investment properties - - -
(viii) Land charges 1,732 1,119 -35%
(ix) Re-invoiced rental charges included in rents 1,059 1 984 87%
Costs (including vacancy costs) (A) - 2,823 - 2 649 -6%
(x) Less: vacancy charges (unrecovered rental charges) 568 888 56%
Costs (excluding vacancy costs) (B) -2 255 -1 761 -22%
(xi) Rental income less land charges 8 651 9,996 16%
(xii) Less: re-invoiced rental charges included in the rents -2,084 -1 619 -22%
(xiii) Plus: share of rental income less land charges of companies accounted for by the equity method 2,026 2,290 13%
Rental income (C) 8,593 10 667 24%
Cost ratio (including vacancy costs) (A / C) 32.9% 24.8% -8pts
Cost ratio (excluding vacancy costs) (B / C) 27.3% 16.5% -11pts
  • BALANCE SHEET
BALANCE SHEET ASSETS (in k €) 12/31/2019 12/31/2020
Non-current assets    
Investment property 162,950 167,754
Intangible assets 339 716
Tangible fixed assets 2,612 2,052
Financial fixed assets 10 662 12,387
Investments in associates 13 664 13 836
Financial assets 1 160 1,299
Deferred tax assets 15 6
Total non-current assets 191,402 198,050
Current assets    
Stocks - -
Customers and other debtors 16,807 16,270
Other receivables and accruals 98 189
Derivative instruments - -
Cash and cash equivalents 16,357 7,325
Total current assets 33,262 23 783
Non-current assets held for sale 4 750 -
TOTAL ASSETS 229,414 221 833
     
BALANCE SHEET (in k €) 12/31/2019 12/31/2020
Equity    
Share capital 36 106 37 755
Premiums linked to capital 39,983 42,193
Fair value reserves 59 70
Change in value of hedging instruments -407 -944
Consolidated reserves 43,246 50,581
Consolidated result 13,474 8,150
Equity - Group share 132,459 137,805
Minority interests - -
Total equity 132,459 137,805
LIABILITIES    
Non-current liabilities    
Financial debts, long-term portion 78,473 65,803
Deferred tax liabilities, net 55 -
Provisions 260 269
Total non-current liabilities 78 788 66,072
Current liabilities    
Financial debts, short-term portion 1,096 435
Derivative instruments 407 944
Trade payables and related accounts 7,111 4,684
Social and tax debts 7,095 7,196
Other debts and accruals 2 457 4,697
Total current liabilities 18 167 17 956
TOTAL LIABILITIES 229,414 221 833
  • CASH FLOWS
CASH FLOWS (in € k) 12/31/2019 12/31/2020
Operating flow    
Net profit 13,474 8,150
Net depreciation and provisions 105 571
Fair value revaluations of investment properties -3 241 -567
Fair value revaluations of derivative instruments -309 -
Fair value revaluations of financial assets 15 -
Tax charges 1,526 840
Capital gains or losses on the disposal of fixed assets net of tax -2 744 18
Share of results of associates -1 579 -342
Self-financing capacity before cost of financial debt and before tax 7,246 8 669
Cost of net financial debt 1,996 1,377
Taxes paid -2 966 -1,010
Self-financing capacity after cost of financial debt and after tax 6,276 9,036
Changes in working capital -614 653
Net cash flow from operating activities 5 662 9 689
Investment flows    
Acquisition of investment properties -69,865 -4 937
Other acquisitions of fixed assets 11 -537
Sale price of investment properties net of disposal costs 19,400 5,432
Acquisition of financial fixed assets -2 231 -1 910
Disposal of financial fixed assets -  
Financial products received 67 31
Impact of changes in scope 583 -
Cash flow used by investing activities -52,034 -1 920
Funding flow    
Treasury shares 13 -148
Change in capital 126 -62
Increase in bank loans 70,000  
Change in other financial debts -  
Repayment of rental debts -2 927 -8 810
Loan repayments -24,276 -5,000
Loan issuance fees -1 224  
Change in bank loans -101  
Interest paid -1 768 -926
Dividends paid to shareholders and minority shareholders -5,552 -1 855
Cash flows used by financing activities 34,292 -16,801
Increase / (Decrease) in cash -12,080 -9,032
Cash and cash equivalents at the start of the fiscal year 28,437 16,357
Cash and cash equivalents at year end 16,357 7,325

 

 

1 Civil companies of real estate investments
2 Collective Real Estate Professional Placement Organization
3 Debt ratio (LTV): consolidated net debt divided by the value of the consolidated assets excluding transfer duties (the debt ratio comes out at 26% by taking the stake in the company Wep Watford in proportion)
4 Includes investments in associates, including holdings of 50% in the company Wep Watford (company which owns the Gaïa building in Nanterre, La Défense) and of 27.24% in the & #39; OPPCI Vivapierre.
5 Including the Gaïa building in quota. Excluding holdings in Vivapierre and shares in PAREF Gestion.
6 Including the Le Gaïa building. Excluding the Gaïa building, the financial occupancy rate stood at 83.8% at December 31, 2020, compared to 91.7% at the end of 2019. The financial occupancy rate is calculated excluding buildings under restructuring (The Go in Levallois- Perret).
7 Excludes the asset under restructuring (The Go in Levallois-Perret) and the Le Gaïa building.
8 Variable Capital
9 Fixed Capital
10 LTV: consolidated net debt divided by the value of the consolidated assets excluding duties.
11 ICR: current operating income divided by consolidated financial expenses excluding early repayment costs.
12 DSF: secured financial debt divided by the value of the consolidated assets (including the value of PAREF Gestion shares)
13 Including the value of PAREF Gestion shares
14 Including investments in associates including 50% from Wep Watford (company owning the Gaïa building in Nanterre, La Défense) and 27.24% from the & #39; OPPCI Vivapierre and excluding the shares held in Paref Gestion
15 The valuation of PAREF Gestion's goodwill was carried out by an external expert qualified in valuation for the first time on June 30, 2020.
16 The valuation of PAREF Gestion's goodwill was carried out by an external expert qualified in valuation for the first time on June 30, 2020.
17 The valuation of PAREF Gestion's goodwill was carried out by an external expert qualified in valuation for the first time on June 30, 2020.
18 The valuation of PAREF Gestion's goodwill was carried out by an external expert qualified in valuation for the first time on June 30, 2020.


This publication has the service "🔒 Actusnews SECURITY MASTER ".
- SECURITY MASTER Key: mXBtZseXaW3FmHCcacuZb2ZjbJhnw2jJbGKYlJWak8ibbG + TlGponMnIZm9onW1v
- To check this key: https://www.security-master-key.com.



Receive free of charge by email all the financial information of PAREF in you register here.

Part provided by News Wire © (professional distributor of regulated information)

Others
information

Regulated Information

Financial Agenda

Stock Price

General Assemblies

Publications

Governance