Strong operating income Foncière des Murs confirms its number one hotel property investor status

PR Newswire/Les Echos/ 
PRESS RELEASE 
Paris, 8 February 2013 
                       Strong operating income 
Foncière des Murs confirms its number one hotel property investor status 
Acquisition of 165 B & B hotel portfolio bolsters presence in the hotel industry 
Foncière des Murs, in a partnership with Crédit Agricole Assurances and
Assurances du Crédit Mutuel, acquired a portfolio of 165 B & B hotels in
November 2012 for a total amount of EUR513 million at 31 December 2012, or
EUR258 million group share, with Foncière des Murs holding a 50.2% stake. 
This acquisition was partially financed by a capital increase of EUR125 million,
carried out with the support of the primary Foncière des Murs shareholders in
April 2012, resulting in 7.8 million new shares created. 
With this purchase, Foncière des Murs becomes the leading lessor amongst the
three major hotel operators in France-Accor, B & B and Louvre Hotels-thus
confirming its number one hotel property hotel investor status. 
A diversified financing source and reinforced financial structure 
* EUR520 million in new funds, which covers all loans maturing in 2013 and a
  portion of those coming due in 2014  
Foncière des Murs has refinanced all debt instruments maturing in 2013 as well
as part of those maturing in 2014, while diversifying its financing sources.
The EUR520 million of new financing breaks down as follows:
- Bank debt in the amount of EUR265 million is made up of mortgages with a
  5-year maturity. 
- Another EUR255 million are in the form of a mortgage bond issue with a 7-year
  maturity. 
This innovative issue, the first for listed covered bonds in France, was 
underwritten by institutional investors. 
The financial statements were approved by the Supervisory Board on 8 February
2013. Audit procedures for the consolidated financial statements were carried
out. A certification report will be produced following final specific
verification processes. 
* EUR332 million in asset sales and sales agreements, at a price 1.9% higher
  than the appraised value, of which EUR269 million are new commitments signed 
  in 2012.  
These sales involved 80 properties including:
  - 28 hotels including the buildings and business assets, for EUR140 million
  - 41 operating retail properties, as single units or as part of portfolios,
  for EUR1 12 million. The sale of Quick and Courtepaille restaurants were the
  first to be carried out by Foncière des Murs. These sales demonstrated the
  liquidity and attractiveness of this class of assets, which was evident 
  through the interest shown by investors
  - 11 Healthcare properties for EUR80 million 
These asset sales, which were realised directly, satisfy two objectives, namely
asset rotation and debt reduction, in line with the 2011 asset sales. 
As a result, Foncière des Murs' financial structure was markedly strengthened,
with an LTV ratio of 42.4% compared with 45.8% as at 31 December 2011. In this
way, LTV has dropped by nearly ten points since 31 December 2010. 
                      31 December 2011      31 December 2012     Change
LTV (excluding charges)       48.4%                  44.8%          -360 bps
LTV (including charges)       45.8%                  42.4%          -340 bps 
Average debt maturity has increased by one year, moving to 3.6 years.
Lastly, interest cover (ICR) amounted to 2.60 as at 31 December 2012, stable
compared with the end of 2011. 
Slight increase in rental income: 0.5% like-for-like increase 
               1 part      1 part    After minority          1 part 
                                      interests
(in EUR m)    31/12/2011   31/12/2012     31/12/2012    Change    Change  Like 


                                                      (in EUR m)    %     -for-
                                                                         like %


                                                                    change
Hotels        133.2        116.6            114.3      - 16.6    -12.5%  -0.9%
Healthcare     26.8         24.4             24.4       - 2.3     -8.7%   3.5%
Retail         43.6         43.7             43.7         0.1      0.3%   2.6% 
Rental income 203.6        184.8            182.5      - 18.8     -9.3%   0.5% 
Rental income at 31 December 2012 decreased by EUR18.8 million in absolute value
terms, which primarily reflects the impact of the 2011 and 2012 disposals,
particularly in hotels.
On a like-for-like basis, rental income increased by 0.5% for the year, despite
the depressed economic environment. 
Net recurring EPRA income of EUR112.8 million, and EPS of EUR1.82 
Net recurring EPRA income amounted to EUR112.8 million, down 6.6% from EUR120.8
million at 31 December 2011. This decrease reflects the impact of the arbitrage
and deleveraging strategy (asset sales amounting to EUR750 million since the
beginning of 2011). On a per share basis, net recurring EPRA income amounted to
EUR1.82 at 31 December 2012, down 14.9% from EUR2.14 at 31 December 2011. 
Meanwhile, net income, Group share, came in at EUR99.7 million compared with
EUR141.3 million at the end of 2011. 
                               31 December 2011  31 December 2012  %
Change
Recurring net EPRA income (EUR m)          120.8             112.8      -6.6%
Recurring net EPRA earnings per share    EUR2.14            EUR1.82    -14.9%*
Net income, in EURm                       141.3               99.7       n/a 
*The average number of shares increased between 2011 and 2012, following the
April 2012 capital increase. 
NAV of EUR1,665 million, up 9.3% 
At 31 December 2012, portfolios held excluding consolidated companies was valued
at EUR3,039 million excluding charges (Group share), compared to EUR2,949
million at 31 December 2011. On a like-for-like basis, NAV increased by 1.8%
compared with the end of 2011, and posted an average yield of 6.3% (excluding
charges). 
EPRA NAV increased by 9.3% to EUR1,664.8 million (i.e. EUR25.90 per share), up
from EUR1,523.2 million (i.e. EUR27.00 per share) at the end of 2011. EPRA NAV
increased by 10.7% to EUR1,414.6 million (i.e. EUR22.00 per share), up from
EUR1,278.0 million (i.e. EUR22.60 per share) at the end of 2011. 
                           31 December 2011  31 December 2012     Change
Total portfolio value
 (group share)                     2,949             3,039            +1.8%  
                                                             
like-for-like
Value of portfolio 
under management                   3,571             4,006            +2.0%  
                                                             
like-for-like
EPRA NAV                           1,523.2          1664.8            +9.3% 
EPRA NAV per share                    27.0            25.9            -3.9%* 
*The number of shares increased between 2011 and 2012, following the April 2012
capital increase. 
Outlook for 2013 
Foncière des Murs confirms its objective to continue to benefit from the
development opportunities in the hotel industry, particularly by assisting its
tenants in their development activities, thus bolstering existing 
partnerships.
Foncière des Murs has established the objective of stabilising net recurring
income in 2013. It will also propose during the General Meeting a dividend for
2012 of EUR1,50 per share. 
CONTACTS 


            Cécile Boyer                        Sébastien Bonneton
    Tel: +33 (0)1 58 97 54 47                Tel: +33(0)1 58 97 52 44
         cecile.boyer@fdr.fr                 sebastien.bonneton@fdr.fr

About Foncière des Murs
Foncière des Murs, a subsidiary of Foncière des Régions, specialises in the
ownership of business premises, especially in the hotel, healthcare, and retail
sectors. As a listed real estate investment company (SIIC), Foncière des
Régions is a real estate partner for major players in the business properties
sector. Foncière des Murs owns a portfolio amounting to EUR3 billion and
manages a EUR4 billion portfolio.
www.foncieredesmurs.fr

About Foncière des Régions
As a major player in the service sector real estate for Offices & Key Accounts,
Foncière des Régions owns and manages a EUR9 billion portfolio that is
primarily leased to key accounts who are leaders in their business sectors,
including SUEZ Environnement, Thales, Dassault Systèmes, France Telecom, EDF,
and Accor, etc.
As companies' real estate strategy partner, Foncière des Régions works with
clients to design innovative and sustainable real estate solutions.
www.foncieredesregions.fr 
                                   APPENDICES

Appraised value at 31 December 2012
                                           Like-for-
                                             like
                                            change       Yield


           Value at      Value at       over 12   (excluding
(in EUR m)     31/12/2011    31/12/2012      months      charges)
Hotels            1,834         2,053        0.8%        6.1%
Healthcare          423           356        2.3%        6.4%
Retail              692           630        3.6%        6.4%
TOTAL asset 
portfolio
(after minority
interests), 
excluding
consolidated
companies         2,949         3,039        1.8%        6.3% 
TOTAL 
consolidated
asset 
portfolio
- in total
excluding 
consolidated
companies                       3,299 


                                                  Like-for-
                                                  like
                                                 change       Yield


                Value at      Value at       over 12   (excluding
(in EUR m)         31/12/2011    31/12/2012      months      charges)
Consolidated 
asset
portfolio 
- in total            2,949        3,299          1.8%        6.3% 


                  

Total directly-
owned
portfolio - 
in total               622          708            3.0%       6.3%

Total 
portfolio 
under
management           3,571        4,006            2.0%       6.3%

Asset indicators

FdM consolidated assets after minority interests - EUR3,039 m   

Santé 12 %
Commerce d'exploiatation 21 %
Hôtels Loyers Fixes 20 %
Hôtels Loyers Variables 47 %

FdM assets under management - EUR4,006 m

Santé 9 %
Commerce d'exploiatation 16 %
Hôtels Loyers Fixes 21 %
Hôtels Loyers Variables 54 %

Terms of debt

Net debt
-3% compared to 31/12/2011                  EUR1,452 m

Average cost of debt                           4.49%
4.39% at 31/12/2011   

Average debt maturity
+1.1 compared to 31/12/2011                 3.7 years

Total active hedging debt ratio              95.1%

Net asset value
                                        31/12/2011   31/12/2012   2011/2012   


                                                                Change   
EPRA Triple net NAV(EURm)                1,278.0      1,414.6       +10.7%
EPRA net triple NAV per share (EUR)         22.6         22.0        -2.7%
EPRA NAV (EURm)                          1,523.2      1,664.8        +9.3%
EPRA NAV per share (EUR)                    27.0         25.9        -3.9% 
Reconciliation of net income to recurring net income 
EURM                                  Net income   Restatements  Recurring net 
                                                                income
RENTAL INCOME                            182.5                       182.5  
UNRECOVERED LEASE EXPENSE                 -0.1                        -0.1  
BUILDING EXPENSES                         -2.9                        -2.9  
EXPENSES NET OF UNRECOVERABLE 
RECEIVABLES                               -0.0                        -0.0   
NET RENTAL INCOME                        179.4          -            179.4
MANAGEMENT AND ADMINISTRATION INCOME       2.8          -              2.8
BUSINESS-RELATED EXPENSES                 -1.0                        -1.0
OVERHEADS                                 -7.4         0.1            -7.3
DEVELOPMENT EXPENSES                      -0.2         0.2             - 
                                        -
OPERATING COSTS                           -5.8         0.3            -5.5 
                                        - 
NET CHANGE IN PROVISIONS AND 
OTHER ITEMS                               -1.4         1.4             -
OPERATING INCOME FROM CONTINUING 
OPERATIONS                               172.2         1.8           174.0 
                                       -
PROCEEDS FROM ASSET SALES                232.3      -232.3             -
BOOK VALUE OF ASSETS SOLD               -232.8       232.8             -
NET GAINS/LOSSES FROM ASSET SALES         -0.5         0.5             -
REVALUATION INCREASE 
in investment properties                  54.6       -54.6             -
REVALUATION DECREASE in investment 
properties                               -10.9        10.9             - 
                                        -
NET REVALUATION INCREASE / DECREASE       43.7       -43.7             -
NET GAINS / LOSSES FROM SALE OF 
SECURITIES                                  -           -              -
OPERATING INCOME                         215.4       -41.4           174.0
NET COST OF FINANCIAL DEBT               -65.7                       -65.7
Adjustment TO THE value of 
derivative instruments. 
payables and receivables                 -49.4        49.4             -
DISCOUNTING OF payables AND RECEIVABLES   -1.3         1.3             -
NET CHANGE IN FINANCIAL AND OTHER 
PROVISIONS                                -4.6         4.6             -
Share of income from Equity associates     9.6        -4.9             4.7 
NET INCOME BEFORE TAX                    103.9         9.1           113.0 
DEFERRED TAX                              -4.0         4.0             -
CORPORATE INCOME TAX                      -0.2                        -0.2 
NET INCOME FOR THE PERIOD. GROUP SHARE    99.7        13.1           112.8 
Consolidated balance sheet 
                  EURM                               Net          Net 
                                                 31 Dec 11     31 Dec 12 
GOODWILL                                        
INTANGIBLE ASSETS 
TANGIBLE ASSETS 
Operating properties 
Other tangible fixed assets                              0.0         0.0
Assets in progress 
INVESTMENT PROPERTIES                                2,593.6     3,006.3
FINANCIAL ASSETS                                         7.0         6.8
INVESTMENTS,IN EQUITY ASSOCIATES                        61.1        70.2
DEFERRED TAX ASSETS                                      1.2         1.1
FINANCIAL INSTRUMENTS                                    7.4         9.8  
TOTAL NON-CURRENT ASSETS                             2,670.3     3,094.1  
ASSETS HELD FOR SALE                                   355.1       292.3  
LEASING LOANS AND RECEIVABLES                                        0.2 
INVENTORIES AND WORK-IN-PROGRESS 
TRADE RECEIVABLES                                       14.5         9.5 
TAX RECEIVABLES                                          4.1         5.6 
OTHER RECEIVABLES                                        3.8         1.2 
PREPAID EXPENSES                                         0.7         2.4 
CASH AND CASH EQUIVALENTS                                1.2         4.5 
TOTAL CURRENT ASSETS                                   379.3       315.7  
TOTAL ASSETS                                         3,049.6     3,409.8  
                           Financial year                  Financial year 
                                31 Dec 11                       31 Dec 12
CAPITAL                                 225.8                           256.9
PREMIUMS                                410.3                           502.6
TREASURY SHARES                          -0.1                            -0.1
CONSOLIDATED RESERVES                   500.7                           557.2
NET INCOME                              141.3                            99.7
TOTAL GROUP SHAREHOLDERS' EQUITY      1,278.0                         1,416.3
MINORITY INTERESTS                       -1.9                           146.9
TOTAL SHAREHOLDERS' EQUITY            1,276.1                         1,563.1
Long-term borrowings                  1,464.7                         1,540.2
FINANCIAL INSTRUMENTS                   205.2                           205.2
Deferred tax liabilities                 45.7                            49.5
PENSION AND OTHER COMMITMENTS             0.0                             0.0
OTHER PAYABLES                            4.1                             1.5 
TOTAL NON-CURRENT LIABILITIES         1,719.7                         1,796.5 
LIABILITIES HELD FOR SALE
TRADE PAYABLES                            8.6                            12.3
SHORT-TERM BORROWINGS                    30.8                            26.7
SECURITY DEPOSITS
ADVANCES & PREPAYMENTS                    0.5                             2.6
ST PROVISIONS
CURRENT TAXES                             0.1
OTHER PAYABLES                           13.7                             8.2
ADJUSTMENT ACCOUNTS                       0.1                             0.3 
TOTAL CURRENT LIABILITIES                53.8                            50.1 
TOTAL LIABILITIES                     3,049.6                         3,409.8 
                  
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-0- Feb/11/2013 09:10 GMT
 
 
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