A consolidated revenue of €26.5 Mn, with significant increase in rental income but slowdown in subscriptions. down.
The consolidated revenue of PAREF Group amounted to €26.5 Mn as at September 30, 2023, decreasing by 18% compared to the same period in 2022, with the main variations explained by:
- Gross rental income reaching €6.7 Mn, increased by 26% compared to the same period in 2022. This increase is primarily related to the rental income from the "The Go" asset following its successful restructuring project (delivered at the end of 2022) and to the rental indexation;
- Management commissions standing at €11.4 Mn, down by 5% compared to the same period in 2022, which included €1.3 Mn of performance commission related to the delivery of "The Medelan" project. Excluding this one-off impact, management commissions increased by 6%;
- Gross subscription commissions of €8.4 Mn, decreased by 44% compared to the same period in 2022. The performance reflects investors’ cautiousness towards real estate assets under the market context impacted by climbing interest rates.
|Revenues business (in Mn€)||Sep YTD 2022||Sep YTD 2023||Variation in %|
|Gross rental income1||5.3||6.7||+26%|
|-o.w. management commissions||12.0||11.4||-5%|
|-o.w. subscription commissions||15.0||8.4||-44%|
1 Excluding re-invoiced rental charges
Main events of the third quarter 2023
- Revaluation of the asset under management of SCPI
Under the context of rising interest rates, the management company PAREF Gestion launched a half-year valuation campaign for all the assets held by SCPI funds. The valuation, performed by independent experts, was used in the revaluation of reconstitution value, and allows PAREF Gestion to maintain the subscription price stable for the SCPI under management.
None of the portfolio, in France and abroad, was subject to decrease in value on average over 5.5% , demonstrating the resilience of investment strategies and the teamwork to mitigate the impacts related to unfavorable market conditions and increasing interest rates.
- Acquisitions of two real estate complex in the West Germany in Hamm and in Bergkamen on behalf of SCPI Novapierre Allemagne 2. These retail parks benefit from excellent accessibility and are fully let to first-class tenants.
- Delivery of a new office asset “Courteline" on behalf of SCPI Interpierre France. The asset, fully let to a private institution of higher education, is located in the center of university district in Lyon, close to the university campus La DOUA. It meets the highest standards in terms of energy performance and was certified BREEAM “Very Good" and labelled “BiodiverCity".
- Reinforcement of team
Nicolas Gromakowski was nominated as Deputy CEO of PAREF Gestion. With an experience of over 20 years in real estate investment and fund management field,both in France and abroad, he will be in charge to implement the strategy of ambitious growth for PAREF Gestion.
- EPRA BPR Gold Award to the reporting quality
PAREF won Gold-level BPR award for the fifth consecutive year, confirming the excellence in practice in terms of financial information. This recognition is part of commitment to quality and transparency in communications towards shareholders and investors.
The Management Board of PAREF, during the meeting held on October 26, 2023, nominated Anne Schwartz as Deputy CEO of PAREF. With more than 20 years of expertise in real estate market, Anne joined PAREF Group in 2019 as CEO of PAREF Gestion. In her new functions, she will work alongside with Antoine Castro to accelerate the deployment of Group strategic plan. With the support of Nicolas Gromakowski recently appointed as Deputy CEO of PAREF Gestion, Anne will also continue supervising the regulated management activities for third parties.
This appointment will be ratified during the next shareholders’ general meeting of PAREF.