Fonciere des Regions SA, France’s second-largest publicly traded office landlord, said rental income fell 1.1 percent in the first nine months because of property disposals.
Rental income totaled 391 million euros ($542 million) compared with 395 million euros a year earlier, the Metz, France-based company said today in a statement. The company generated an additional 22 million in fees, taking total revenue for the period to 413.1 million euros, 2.9 percent less than a year ago.
Disposals raised 366 million euros in the first nine months as Chief Executive Officer Christophe Kullmann sought to cut debt to 50 percent of the value of the FDR’s properties. Excluding the effects of the sales, rental income rose 1.2 percent, the company said.
For properties held throughout the period, gains in rental growth were led by Italy, where the company owns a 50.9 percent stake in office landlord Beni Stabili SpA. In France, which makes up more than half of FDR’s assets, rents were little changed in the period.
Beni Stabili will take up real estate investment trust status in Italy at the start of 2011, the company said.
FDR didn’t update its July forecast that both the value of its properties and earnings, excluding disposals and property values, would rise this year.
FDR controls properties in France, Italy and Germany through holdings in other real estate investment trusts.
The company’s assets include stakes in Fonciere des Murs SA, a REIT specialized in sale and leasebacks; warehouse owner Fonciere Europe Logistique SCA and Fonciere Developpement Logements SA, a residential investment trust. FDR also has a 15 percent holding in Altarea SA, France’s biggest retail-park developer, and controls parking lot owner Parcs GFR.