ANF Immobilier: Annual Growth Target of +10% of EPRA Recurring Net Income, Group Share Confirmed
October 20 2016 - 1:40AM
Business Wire
- 84% of rental income generated by
commercial assets in the third quarter of 2016, 42% from the
metropolitan areas of Lyon and Bordeaux
- +6% growth in consolidated income;
stable income, Group share, and on a like-for-like basis in the
third quarter of 2016
- Positive outlook with the delivery at
the end of September 2016 of the Adely building with over 13,000
sq.m. of office space let to Adecco France Group in the Carré de
Soie district in Lyon
Regulatory News:
ANF Immobilier (Paris:ANF) revenues were €38.3 million for
the third quarter of 2016. They were €36.3 million as at September
30, 2015. This +6% increase based on IFRS standards reflects
rigorous asset rotation and high-yield developments over the
rolling year. The real estate company's rents, Group share and
on a like-for-like basis, are stable with a negative change of less
than one percent.
Rental income now breaks down into 54% from offices, 17%
from retail, 13% from residential and 13% from hotels with
the remainder comprising other types of land use, mainly parking
lots. Commercial real estate leases thus account for 84% of
income.
A constant and growing flow of new commercial
projects
The +6% growth in consolidated income compared to the third
quarter of 2015 is the result of three categories of commercial
real estate transactions carried out in 2015 and 2016:
- The delivery in June 2015 of a 36,000
sq.m. office complex in the Carré de Soie district in Lyon, leased
to Alstom (+€3.3 million);
- A high rate of hotel deliveries - since
September 2015, three hotels in Marseille (two near the new Stade
Vélodrome, and one at Euroméditerranée), a hotel in Bègles in the
Bordeaux region and a hotel in Bobigny in the Paris region (+€1.7
million);
- The opening of stores - at the
beginning of 2016, Nike and Maxi Bazar took over the former
regional headquarters of Banque de France in Lyon, which was
transformed into 2,500 sq.m. of retail space (+€0.6 million).
In all, these transactions total nearly 36,000 sq.m. of new
office space leased, 2,500 sq.m. of ideally-located retail space in
the heart of Lyon, plus over 600 hotel rooms, that is, €162 million
in investments deployed (representing €106 million in Group
share).
The trend is offset by two items related to historical
assets:
- The disposal in November 2015 of a
13,000 sq.m. mixed property complex in Presqu’île in Lyon,
primarily occupied by Printemps (-€2.2 million). This disposal
illustrates the transformation of the real estate company via the
disposal of mature assets with low yields and the reinvestment of
the income from disposals in new properties with significantly
higher yields.
- The property environment in Marseille
(-€1.6 million) is primarily the result of a very high supply of
local retail premises and of an unfavorable economic climate which
impacts office space and residential properties (with the exception
of furnished residential properties whose income increased by
+12%). The new strategy, presented below, was established in March
2016 to address these points for each type of asset.
Summary
Gross rental income(Published data,IFRS in millions of euros)
Q3 2016millions of euros Change Q3
2015millions of euros Offices
20.9 +20%
17.5 Retail premises
6.5 -25%
8.6 Residential
4.8 -9%
5.3 Hotels
4.9 +36%
3.6
Other (car parks)
1.2 +4%
1.3
TOTAL
38.3 +6%
36.3 Group share
30.9 -1% 31.2
An aggressive strategy for Marseille to counter the economic
climate
ANF Immobilier implemented its strategy for its retail premises
at the beginning of 2016, anticipating a difficult economic climate
and an oversupply of local retail space in Marseille. The real
estate company envisioned two different approaches fitting the two
distinct segments of Rue de la République: regarding the Vieux-Port
segment, the goal is to set up stores for families and tourism; the
second segment, connected to Place de la Joliette, is intended for
services to accompany the growth of the Euromed district. The
arrival of new stores like King Jouet (576 sq.m.), CopyTop (114
sq.m.), Le Cabanon (95 sq.m.) and TUI Store (100 sq.m.) in 2016
justified the choices made. This also pointed to the renewal of Rue
de la République, aiming at a pedestrian traffic increase and a
strategic differentiation.
With respect to residential property, in the short-term, work
has been done to optimize rental charges and rent levels have been
revised by apartment. The property management function was
outsourced with a dedicated sales force and new show apartments. In
the medium-term, infrastructure improvement is still planned via
installations of high-quality public facilities (schools) in
cooperation with the City of Marseille. It should be noted that
furnished residential properties, located near the intersection of
the Rue de la République and the Boulevard des Dames, have
experienced a significant increase in occupancy with an impact of
nearly +€0.2 million in rents compared to September 30, 2015.
With respect to office space, the success of the
Euroméditerranée program, which has become a major business hub,
has led to significant rental demand which benefits ANF Immobilier.
In addition, the office space vacated by SNCM in 2016 located at
the heart of Block 34 of the Euromed program was immediately 70%
rented again, notably by the new Inter Entreprise Restaurant, which
opened in August.
In Lyon: Growth prospects with Adely and a renewed
pipeline
The Adecco-Adely transaction, involving an investment of €34
million and the development of 13,100 sq.m. of office space leased
to Adecco in the Quartier du Carré de Soie in Lyon, was delivered
at the end of September 2016. The investment was made in
partnership with Crédit Agricole Assurances and DCB International
and generates additional rental income of €2.5 million.
The real estate company casts a light on the fact that it
increased the volume of its future transactions (pipeline) beyond
2019 with the Park View project in Lyon (formerly "Future Way -
Tête d’Or") and the Rive Neuve project in Marseille. The two
transactions total an additional €63 million, or nearly €25,000
sq.m. of additional new and ideally-located office space.
ANF Immobilier confirms its 10% growth target for EPRA recurring
net income, Group share for 2016.
According to Renaud Haberkorn, Chairman of the Executive Board
of ANF Immobilier, "ANF Immobilier is pursuing and achieving its
transformation. It is strengthening its position as an investor and
as a force for economic development with an impact in and on very
dynamic regional metropolitan areas. The company's third quarter
income reflects its goals."
2017 financial
calendar
2016 annual results March 9, 2017 (before market opening) 2017
Shareholders’ Meeting May 10, 2017
About ANF
Immobilier
ANF Immobilier (ISIN FR0000063091) is a
French listed real estate investment company which owns a
diversified portfolio of French office, retail, hotel and
residential property worth €1,082 million. The Company is
transforming and is oriented toward commercial properties, value
creation and the growth of dynamic regional metropolises. It
currently has offices in Bordeaux, Lyon and Marseille. Listed on
Eurolist B of Euronext Paris and included in the EPRA real estate
index, ANF Immobilier is a company of the Eurazeo Group.
http://www.anf-immobilier.com
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version on businesswire.com: http://www.businesswire.com/news/home/20161019006659/en/
ANF ImmobilierLaurent Milleron, +33 1 44 15 01
11investorrelations@anf-immobilier.comorPress:Renaud
Large, +33 1 58 47 96 30renaud.large@havasww.com
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