Strong performance of the Group's 3 business lines
The PAREF Group, by creating synergies between its activities, demonstrated during the first half of 2022, the relevance of the transformation of its business model. Both the real estate business for its own account, regulated management for third parties (PAREF Gestion), and the redevelopment and asset management business (PAREF Investment Management) contributed to a sharp increase in net income.
The Net Profit at € 13.6m for the first half of 2022 is multiplied by 4 compared to the same period in 2021 (€ 3.6m), (€3.6 million), driven by:
- an increase of value of € 11m of its own portfolio principally related to the signing of new lease in Levallois-Perret;
- A substantial growth in gross management fees to € 8m (or +51% vs. H1 2021) thanks to the increase of 159% in fundraising compared to H1 2021;
- A strong increase in gross subscription fees to € 10.7m (or 2.7x vs. H1 2021); and
- A performance fee of € 1.3m from Medelan project managed by Paref Investment Management for institutional investor.
All three business lines therefore contribute to the performance, confirming the resilience, earnings growth and synergy of PAREF Group’s model.
At the Group level, assets under management are up to a total of almost € 2.9 billion
- 198m of own assets (+11.3% on a like-for-like basis vs. 31 December 2021) ;
- 2,676m managed on behalf of institutional or individual third parties+ 7% vs. 31 December 2021).
The balance sheet situation continues to strengthen, with financial and management indicators improving steadily:
- The EPRA Net Reinstatement Value (NRV) increased by 3% over this half-year to €134.1 per share (€130.0 at December 31, 2021);
- Loan to Value ratio (LTV )[1] is maintained at a low level of 22% (equal to 31 December 2021);
- Interest coverage ratio (ICR)[2] improved further to 7.4x (compared to 4.6x at the end of 2021);
- The financial occupancy rate of owned assets remains at 95.1% in line with the level at December 31, 2021.
The Board of Directors of PAREF, during the meeting held on July 28, 2022, approved the closing of the half-year consolidated accounts as at June 30, 2022.
[1] Debt ratio (LTV for Loan to Value): consolidated net debt drawn divided by the value of the consolidated portfolio excluding duties)
[2] Interest Coverage Ratio (ICR): current operating income divided by consolidated financial expenses excluding early redemption costs
« In 2021, the PAREF Group took the first step in its transformation and confirms through the results of this first half of 2022 the benefit of its business model based on diversification, resilience and synergies. The businesses are producing excellent operating results and the PAREF Group's financial situation continues to improve to enable us to seize growth opportunities. »
« We are confident that the PAREF Group is well positioned to weather the changing macroeconomic environment, as evidenced by the continued confidence of our clients. We enter the second half of the year confident and still cautious with a strong pipeline of investment opportunities and new fund strategies. »
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