Latest news with #EPRA
Yahoo
6 days ago
- Business
- Yahoo
Derwent London PLC (STU:DVK) (H1 2025) Earnings Call Highlights: Strong Rental Growth Amidst ...
New Rent Agreed: GBP13.8 million of new rent agreed. Open Market Lettings: 10.5% above ERV. Total Accounting Return: 3% in the first half, 7.3% over the last 12 months. Gross Rental Income: GBP109.1 million. EPRA Earnings: GBP58.6 million or 52.2p per share. Interim Dividend: Increased by 2% to 25.5p per share. Net Rental Income: Marginally lower than in H1 '24. Property Expenditure: Increased to GBP14.5 million. EPRA NTA: Increased to 31.87p per share. Valuation Uplift: 1.2% in H1. Development and Refurbishment Expenditure: GBP74.1 million. Future Estimated CapEx: GBP88 million in H2. Cash and Undrawn Facilities: GBP604 million as of June 30. Weighted Average Interest Rate: 3.6% on a cash basis, ended at 4.1% as of June 30. Portfolio ERV: Expected to exceed GBP330 million. Central London Vacancy Rate: 7.8%, Grade A at 2%, West End at 1.4%. EPRA Vacancy Rate: 3.7%. Rent Reviews: GBP16.7 million settled, 5.4% above previous rents. Development Yield on Completion: Expected in excess of 6.5%. Residential Sales at 25 Baker Street: Contracts exchanged on 23 of 41 units for GBP113.1 million. Warning! GuruFocus has detected 8 Warning Signs with STU:DVK. Release Date: August 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Derwent London PLC (STU:DVK) delivered a strong operational performance with GBP13.8 million of new rent agreed, with open market lettings 10.5% above ERV. The company has made significant progress on its West End projects, including the commencement of work at Holden House and the completion of 25 Baker Street and Network projects. Derwent London PLC (STU:DVK) has consistently outperformed the MSCI London Office Index, with a total property return exceeding the index by an average of 230 basis points annually since 2020. The company has a robust pipeline of projects, with 1.5 million square feet of highly profitable, well-located space either completed or currently on site. Derwent London PLC (STU:DVK) is committed to sustainability, with initiatives such as reducing carbon emissions and implementing a circular economy strategy in its developments. Negative Points The company's net rental income and EPRA earnings were marginally lower than in the first half of 2024, despite an increase in gross rental income. Property expenditure increased to GBP14.5 million, driven by higher voids and increased costs at customer service facilities. The company's borrowing levels are higher than at the end of the previous year, with increased interest costs due to refinancing in a higher interest rate environment. Derwent London PLC (STU:DVK) faces challenges from the government's announcement to prohibit upwards-only rent reviews, which could impact future rental agreements. The company's earnings are expected to decline in the short term due to higher interest costs and lower capitalized interest as projects complete. Q & A Highlights Q: Is there seasonality to the lounge costs, and should we expect similar increases in H2 as seen in H1? A: Damian Wisniewski, CFO, stated that the costs have reached a steady state and should remain roughly where they are now. Q: How does the Board deliberate on capital allocation given the share price discount and implied EPRA yield? A: Paul Williams, CEO, explained that the Board considers various options for capital use, focusing on long-term portfolio investment. They are confident in their pipeline and market conditions, which they believe will lead to growth. Q: Why is Derwent's capital growth lower compared to peers, and will there be larger core office disposals in H2? A: Paul Williams, CEO, noted that the portfolio includes a mix of core income and opportunities, with higher value properties outperforming. Nigel George, Executive Director, added that the market is improving, with larger lot sizes being sold, indicating potential for future disposals. Q: What is the impact of refurbishment market activity on ERV growth? A: Paul Williams, CEO, and Emily Prideaux, Executive Director, highlighted that refurbishment is encouraged due to carbon considerations. The market perceives high-quality refurbishments as competitive with new builds, supporting ERV growth. Q: How does Derwent approach pre-letting projects nearing completion? A: Paul Williams, CEO, stated that while historically the West End hasn't been a pre-let market, they are encouraged by interest at Network. Emily Prideaux, Executive Director, added that they balance pre-letting with capturing future ERV growth, considering factors like project size and floor plate. Q: Is the share price decline due to earnings misses, and will earnings become a core focus? A: Damian Wisniewski, CFO, emphasized that earnings have always been a focus, balancing them with total return. They expect earnings to decline slightly in the short term due to higher interest costs but anticipate growth as projects mature. Q: What level of interest rates would support market improvement? A: Damian Wisniewski, CFO, noted that gilt rates are crucial and have been volatile. The combination of rental growth, stable yields, and slightly falling debt costs is expected to support market improvement. Q: What is the impact of increased capitalized admin costs? A: Damian Wisniewski, CFO, explained that GBP1.4 million was capitalized for the development team working on specific projects, a relatively small number. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Business Wire
07-08-2025
- Business
- Business Wire
CTP N.V. H1-2025 Results
AMSTERDAM--(BUSINESS WIRE)--Regulatory News: CTP N.V. ( ('CTP', the 'Group' or the 'Company') recorded in H1-2025 Gross Rental Income of €367.2 million, up 14.4% y-o-y, and like-for-like y-o-y rental growth of 4.9%, mainly driven by indexation and reversion on renegotiations and expiring leases. Leasing remained strong in the first half of the year with 11% more leases signed y-o-y. The average monthly rent on the new leases signed increased by 5% y-o-y 1. As at 30 June 2025, the annualised rental income increased to €757 million, while occupancy remained at 93% and the rent collection rate was 99.7%. In the first half of the year, CTP delivered 224,000 sqm at a Yield on Cost ('YoC') of 10.3% with 100% let at completion, bringing the Group's standing portfolio to 13.5 million sqm of GLA. The like-for-like revaluation came to 4.0%, driven by ERV growth of 2.5%, with an average 11bps reversionary yield compression, while the Gross Asset Value ('GAV') increased by 7.2% to €17.1 billion, and 15.9% y-o-y. EPRA NTA per share increased by 7.1% in H1 to €19.36 and 13.5% y-o-y, supported also by progress in the development pipeline. Company specific adjusted EPRA earnings increased by 12.2% y-o-y to €199.3 million. CTP's Company-specific adjusted EPRA EPS amounted to €0.42, an increase of 6.2%. The y-o-y increase in Company-specific adjusted EPRA EPS was negatively affected by the increased number of shares resulting from the equity raise in H2-2024. Thanks to our backloaded deliveries and net development income to the second half of the year, the Group is on track to reach the guidance of €0.86 – €0.88 for 2025, which represents 8 – 10% growth compared to 2024. As at 30 June 2025, projects under construction totalled 2.0 million sqm with an expected YoC of 10.3%, and a potential rental income of €160 million when fully leased. The Group's landbank amounted to 26.1 million sqm, of which 22.2 million sqm is owned and on-balance sheet. This landbank secures substantial future growth potential for CTP, with 90% located around the existing business parks (58% in existing parks, 31% in new parks with a potential of over 100,000 GLA). Combined with its industry-leading YoC, CTP expects to continue to generate double-digit NTA growth in the years to come. Remon Vos, CEO, comments: 'We leased 1,015,000 sqm in H1-2025, 11% more than in the same period last year, illustrating the continued strong demand in CEE, despite the geopolitical and tariff volatility. Looking ahead, we have a strong lead-list for the second half of the year as reflected in the increased number of Heads of Terms signed. We are benefiting particularly from the nearshoring trend, shown by our growth with Asian manufacturing tenants, who made up around 20% of our overall leasing activity in the last 18 months, compared to an over 10% share of our overall portfolio. The annualised rental income increased to €757 million. Our next phase of growth is already locked in through our 2.0 million sqm of GLA under construction and landbank of 26.1 million sqm, meaning we can continue generating double-digit NTA growth over the coming years. We are confident that we can achieve our ambitious goals and reach 1 billion annualized rental income in 2027.' Key Highlights Continued strong tenant demand drives rental growth In H1-2025, CTP signed leases for 1,015,000 sqm, an increase of 11% compared to the same period in 2024, with an average monthly rent per sqm of €5.98 (H1-2024: €5.59). Adjusting for the differences among the country mix, rents increased on average by 5%. Average monthly rent leases signed per sqm (€) Q1 Q2 YTD Q3 Q4 FY 2023 5.31 5.56 5.47 5.77 5.81 5.69 2024 5.65 5.55 5.59 5.69 5.79 5.68 2025 6.17 5.91 5.98 Expand Around two-thirds of leases signed were with existing tenants, in line with CTP's business model of growing with existing tenants in existing parks. Cashflow generation through standing portfolio and acquisitions CTP's average market share in the Czech Republic, Romania, Hungary, and Slovakia came to 28.2% as at 30 June 2025 and it remains the largest owner and developer of industrial and logistics real estate assets in those markets. The Group is also the market leader in Serbia and Bulgaria. With more than 1,500 clients, CTP has a wide and diversified international tenant base, consisting of blue-chip companies with strong credit ratings. CTP's tenants represent a broad range of industries, including manufacturing, high-tech/IT, automotive, e-commerce, retail, wholesale, and 3PLs. The tenant base is highly diversified, with no single tenant accounting for more than 2.5% of the Company's annual rent roll, which leads to a stable income stream. CTP's top 50 tenants only account for 36.0% of its rent roll and the vast majority of clients rent space in multiple CTParks. The Company's occupancy came to 93% (FY-2024: 93%). The Group's client retention rate remains strong at 85% (FY-2024: 87%) and demonstrates CTP's ability to leverage long-standing client relationships. The portfolio WAULT stood at 6.2 years (FY-2024: 6.4 years), in line with the Company's target of >6 years. Rent collection level stood at 99.7% in H1-2025 (FY-2024: 99.8%), with no deterioration in the payment profile of tenants. Rental income in H1-2025 amounted to €367.2 million, up 14.4% y-o-y on an absolute basis, mainly driven by deliveries and like-for-like growth. On a like-for-like basis, rental income grew 4.9%, thanks to indexation and reversion on renegotiations and expiring leases. The Group has put measures in place to limit service charge leakage, which resulted in the improvement of the Net Rental Income to Rental Income ratio from 97.8% in H1-2024 to 98.1% in H1-2025. Consequently, the Net Rental Income increased 14.8% y-o-y. An increasing proportion of the rental income generated by CTP's investment portfolio benefits from inflation protection. Since end-2019, all the Group's new lease agreements include a CPI linked indexation clause, which calculates annual rental increases as the higher of: a fixed increase of 1.5%–2.5% a year; or the Consumer Price Index 2. As at 30 June 2025, 72% of income generated by the Group's portfolio includes this double indexation clause, and the Group expects this to increase further. The reversionary potential came to 14.9%. New leases have been signed continuously above the Estimated Rental Value ('ERV'), illustrating continued strong market rental growth and supporting valuations. The annualised rental income came to €757 million as at 30 June 2025, an increase of 11.5% y-o-y, showcasing the strong cash flow growth of CTP's investment portfolio. H1 developments delivered with a 10.3% YoC and 100% let at delivery CTP continued its disciplined investment in its highly profitable pipeline. In H1-2025, the Group completed 224,000 sqm of GLA (H1-2024: 328,000 sqm). The developments were delivered at a YoC of 10.3%, 100% let and will generate contracted annual rental income of €12.1 million. As usual, the deliveries in 2025 are skewed to the fourth quarter. While average construction costs in 2022 were around €550 per sqm, in 2023 and 2024 they came to €500 per sqm and remained stable in H1-2025. This allows the Group to continue to deliver its industry-leading YoC above 10%, which is also supported by CTP's unique park model and in-house construction and procurement expertise. As at 30 June 2025, the Group had 2.0 million sqm of buildings under construction with a potential rental income of €160 million and an expected YoC of 10.3%. CTP has a long track record of delivering sustainable growth through its tenant-led development in its existing parks. 79% of the Group's projects under construction are in existing parks, while 9% are in new parks which have the potential to be developed to more than 100,000 sqm of GLA. Planned 2025 deliveries are 53% pre-let, up from 35% as at FY-2024. Pre-let in existing parks stood at 47%, while the new parks pre-let was at 80%, showcasing the low risk embedded in the pipeline. CTP expects to reach 80%-90% pre-letting at delivery, in line with historical performance. As CTP acts as general contractor in most markets, it is fully in control of the process and timing of deliveries, allowing the Company to speed-up or slow-down depending on tenant demand, while also offering tenants flexibility in terms of their building requirements. In 2025 the Group is expecting to deliver between 1.2 – 1.7 million sqm, depending on tenant demand. The 106,000 sqm of leases that are already signed for future projects — construction of which hasn't started yet — are a further illustration of continued occupier demand. CTP's landbank amounted to 26.1 million sqm as at 30 June 2025 (31 December 2024: 26.4 million sqm), which allows the Company to reach its target of 20 million sqm GLA by the end of the decade. The Group is focusing on mobilising the existing landbank, while maintaining disciplined capital allocation in landbank replenishment. 58% of the landbank is located within CTP's existing parks, while 31% is in, or is adjacent to, new parks which have the potential to grow to more than 100,000 sqm. 15% of the landbank was secured by options, while the remaining 85% was owned and accordingly reflected in the balance sheet. Assuming a build-up ratio of 2 sqm of land to 1 sqm of GLA, CTP can build over 13 million sqm of GLA on its secured landbank. CTP's land is held on balance sheet at around €60 per sqm and construction costs amount on average to approximately €500 per sqm, bringing total investment costs to approximately €620 per sqm. The Group's standing portfolio is valued around €1,040 per sqm, resulting in a revaluation potential of around €400 per sqm built. Monetisation of the energy business CTP continues with its expansion plan for the roll-out of photovoltaic systems. With an average cost of ~€750,000 per MWp, the Group targets a YoC of 15% for these investments. CTP has an installed PV capacity of 138 MWp, of which 108 MWp is fully operational. In H1-2025 the revenues from renewable energy came to €8.0 million, up 136% y-o-y mainly driven by the increase in capacity installed throughout 2024. CTP's sustainability ambition goes hand in hand with more and more tenants requesting green energy from photovoltaic systems, as they provide them with i) improved energy security, ii) a lower cost of occupancy, iii) compliance with increased regulation iv) compliance with their clients' requirements and v) the ability to fulfil their own ESG ambitions. Valuation results driven by pipeline and positive revaluation of standing portfolio Investment Property ('IP') valuation increased from €14.7 billion as at 31 December 2024 to €15.5 billion as at 30 June 2025, driven by the transfer of completed projects from Investment Property under Development ('IPuD') to IP and positive revaluation of standing portfolio. IPuD increased by 31.5% from 31 December 2024 to €1.4 billion as at 30 June 2025, driven by the CAPEX spent, the revaluation due to increase pre-letting and construction progress, and the start of new construction projects in H1-2025. GAV increased to €17.1 billion as at 30 June 2025, up 7.2% compared to 31 December 2024. The revaluation in H1-2025 came to €597.9 million, driven by the positive revaluation of IPuD projects (+€181.3 million), landbank (+€43.1 million), and the standings assets (+€373.6 million). On a like-for-like basis, CTP's portfolio saw a valuation increase of 4.0% during H1-2025, driven by an ERV growth of 2.5%. CTP expects further positive ERV growth on the back of continued tenant demand, which is positively impacted by the secular growth drivers in the CEE region. CEE rental levels remain affordable; despite the strong growth seen as they have started from significantly lower absolute levels than in Western European countries. In real terms, rents in many CEE markets are still below 2010 levels. The Group's portfolio has conservative valuation yields of 7.0%. CTP saw further yield compression during the first half of 2025 of 11bps on average across the portfolio and expects further yield compression over second part of 2025. The yield differential between CEE and Western European logistics is expected to decrease over time, driven by the higher growth expectations for the CEE region and increasing activity in the investment markets. EPRA NTA per share increased from €18.08 as at 31 December 2024 to €19.36 as at 30 June 2025, representing an y-o-y increase of 13.5% and an increase of 7.1% in H1-2025. The increase is mainly driven by the revaluation (+€1.25), Company specific adjusted EPRA EPS (+€0.42) and offset by final 2024 dividend paid out in May (-€0.30) and other items (-€0.09). Robust balance sheet and strong liquidity position In line with its proactive and prudent approach, the Group benefits from a solid liquidity position to fund its growth ambitions, with a fixed cost of debt and conservative repayment profile. During H1-2025, the Group secured €1.7 billion to fund its organic growth: A €1.0 billion dual-tranche green bond with a €500 million six-year tranche at MS +145bps at a coupon of 3.625% and a €500 million ten-year tranche at MS +188bps at a coupon of 4.25%; A JPY30 billion (€185 million equivalent) five-year unsecured loan facility with a syndicate of Asian banks at TONAR +130bps and fixed all-in cost of 4.1%; and A €500 million five-year unsecured sustainability-linked loan facility with a syndicate of 13 European and Asian banks at fixed all-in cost of 3.7%, undrawn as of 30 June 2025. CTP continued to actively manage its bank loan portfolio in H1-2025. Margin reduction on a further €159 million of secured bank loans was negotiated and €441 million of unsecured term loan signed in 2023 was prepaid and will be refinanced by the new €500 million unsecured loan. Both allowed CTP to achieve material interest rate savings and reduce the overall cost of debt going forward. The Group's liquidity position stood at €2.1 billion, comprised of €0.8 billion of cash and cash equivalents, and an undrawn RCF of €1.3 billion. CTP's average cost of debt stood at 3.2% (FY-2024: 3.1%), slightly up compared to year-end 2024, due to new funding. 99.9% of the debt is fixed rate or hedged until maturity. The Group doesn't capitalise interest on developments, therefore all interest expenses are included in the P&L. The average debt maturity came to 5.1 years (FY-2024: 5.0 years). The Group repaid €272 million bond in June 2025 from its available cash. Next upcoming maturity is a €185 million bond due in October 2025, which will also be repaid from available cash reserves. CTP's LTV decreased to 44.9% as at 30 June 2025 mainly due to the positive revaluation of standing portfolio and investment properties under development. The Group's higher yielding assets, thanks to their gross portfolio yield of 6.6%, lead to a healthy level of cash flow leverage that is also reflected in the normalized Net Debt to EBITDA of 9.2x (FY-2024: 9.1x), which the Group targets to keep below 10x. The Group had 66% unsecured debt and 34% secured debt as at 30 June 2025, with ample headroom under its Secured Debt Test and Unencumbered Asset Test covenants. As pricing in the bond market rationalised, the conditions are now more competitive than the pricing in the bank lending market, which will allow the Group to re-balance more towards unsecured lending. In Q3-2024, S&P confirmed CTP's BBB- credit rating with a stable outlook. In January 2025, CTP was assigned an A- credit rating with a stable outlook by the Japanese rating agency JCR. In Q2-2025, Moody's upgraded outlook from stable to positive on Baa3 credit rating. Guidance Leasing dynamics remain strong, with robust occupier demand, and decreasing new supply leading to continued rental growth. CTP is well positioned to benefit from these trends. The Group's pipeline is highly profitable, and tenant led. The YoC for CTP's current pipeline remained at industry leading 10.3%. The next stage of growth is built in and financed, with 2.0 million sqm under construction as at 30 June 2025, with a target to deliver between 1.2 – 1.7 million sqm in 2025. CTP's robust capital structure, disciplined financial policy, strong credit market access, industry-leading landbank, in-house construction expertise and deep tenant relationships allow CTP to deliver on its targets. CTP expects to reach €1.0 billion rental income in 2027, driven by development completions, indexation and reversion, and is on track to reach 20 million sqm of GLA and €1.2 billion rental income before the end of the decade. The Group set a guidance of €0.86 - €0.88 Company-specific adjusted EPRA EPS for 2025. This is driven by our strong underlying growth, with around 4% like-for-like growth, partly offset by a higher average cost of debt due to the (re)-financing in 2024 and 2025. Dividend CTP announces an interim dividend of €0.31 per ordinary share, an increase of 6.9% compared to interim dividend 2024, and which represents a pay-out of 74% of the Company specific adjusted EPRA EPS, in line with the Group's 70% - 80% dividend policy pay-out ratio. The default is a scrip dividend, but shareholders can opt for payment of the dividend in cash. WEBCAST AND CONFERENCE CALL FOR ANALYSTS AND INVESTORS Today at 9am (GMT) and 10am (CET), the Company will host a video presentation and Q&A session for analysts and investors, via a live webcast and audio conference call. To view the live webcast, please register ahead at: To join the presentation by telephone, please dial one of the following numbers and enter the participant access code 893972. A recording will be available on CTP's website within 24 hours after the presentation: CTP FINANCIAL CALENDAR Action Date Capital Market Days (Wuppertal, Germany) 24-25 September 2025 Q3-2025 results 6 November 2025 FY-2025 results 26 February 2026 Expand About CTP CTP is Europe's largest listed owner, developer, and manager of logistics and industrial real estate by gross lettable area, owning 13.5 million sqm of GLA across 10 countries as at 30 June 2025. CTP certifies all new buildings to BREEAM Very good or better and earned a negligible-risk ESG rating by Sustainalytics, underlining its commitment to being a sustainable business. For more information, visit CTP's corporate website: Disclaimer This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and business of CTP. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "targets", "may", "aims", "likely", "would", "could", "can have", "will" or "should" or, in each case, their negative or other variations or comparable terminology. Forward-looking statements may and often do differ materially from actual results. As a result, undue influence should not be placed on any forward-looking statement. This press release contains inside information as defined in article 7(1) of Regulation (EU) 596/2014 of 16 April 2014 (the Market Abuse Regulation).
Business Wire
23-07-2025
- Business
- Business Wire
SFL – First-Half 2025 Results
PARIS--(BUSINESS WIRE)--Regulatory News: SFL (Paris:FLY): 'In a more mixed rental environment over the first half of the year, SFL continued to deliver excellent operating performances, in terms of both occupancy (99.7% economic occupancy rate for offices) and average nominal rent (€855/sq.m.). The Paris market remained extremely polarised, with leases on prime properties signed or rolled over at record high rents of over €1,000/sq.m. This is proof, if any were needed, that while the supply of available properties is growing, the attention paid to product quality still makes all the difference', explained Aude Grant, SFL's Chief Executive Officer. The consolidated financial statements for the six months ended 30 June 2025 were approved by the Board of Directors of Société Foncière Lyonnaise ("SFL") on 23 July 2025, at its meeting chaired by Pere Viňolas Serra. These financial statements show significant growth in EPRA earnings and a modest increase in the value of the asset portfolio. Physical and economic occupancy rates remained exceptionally high, at 99.1% and 99.3% respectively, and properties let during the period commanded increasingly high rents, attesting to the appeal of prime Paris office properties and the relevance of SFL's business model. The auditors have completed their review of the financial statements and issued their report on the interim financial information, which does not contain any qualifications or emphasis of matter. Economic occupancy rate kept at a record high 99.3% Despite a rise in the Paris region vacancy rate to 10.8% (up 8.0% over six months), SFL has carved a niche for itself with its very high quality portfolio of outstanding assets in prime locations (99% in central Paris) and its policy of investing continuously to deliver first-class services and high levels of customer satisfaction. The physical occupancy rate continued to top 99.0% at 30 June 2025 (99.4% at 31 December 2024). The EPRA vacancy rate was 0.7% (0.5% at 31 December 2024). SFL signed 13 leases in the first half, on over 10,500 sq.m. including 10,300 sq.m. of office space let mainly to new tenants. In addition, renegotiated leases on around 2,400 sq.m. were signed with existing tenants, in some cases ahead of the lease-break date in response to tenants' needs and to allow SFL to capture the reversionary potential in advance. This sustained rental activity primarily concerned the following properties: Louvre Saint-Honoré, with 1,600 sq.m. let for a non-cancellable period of nine years to La Caisse, a leading Canadian institutional investor; Haussman Saint-Augustin, with 2,000 sq.m. let for a non-cancellable period of nine years to an international law firm; Washington Plaza, with 1,900 sq.m. let for a non-cancellable period of six years to Citadel; Edouard VII, with 1,100 sq.m. let for a non-cancellable period of nine years to AFG; office space in the Washington Plaza, Cézanne Saint-Honoré and 103 Grenelle properties; and around 230 sq.m. of retail units. A new record was set for rents on the new office leases, with the average nominal rent hitting €1,002 per sq.m., corresponding to an average effective rent of €860 per sq.m., for an average non-cancellable period of 7.2 years. Modest increase in portfolio appraisal value amid continuing uncertainty The appraisal value of the Group's portfolio at 30 June 2025 was €7,650 million excluding transfer costs, up 1.0% from €7,571 million at 31 December 2024 (up 1.4% including transfer costs). No properties were purchased or sold during the first half of 2025. The increase in appraisal values mainly reflected the application of rent escalation clauses and the rise in rental values in the prime segment of the Paris property market. Discount rates and exit capitalisation rates narrowed slightly, by an average of 12 bps and 3 bps respectively, in an unfavourable macroeconomic environment which reduced the prospect of rent indices increasing in future periods. The average EPRA topped-up net initial yield (NIY) was 3.8% at 30 June 2025, unchanged from 31 December 2024. The potential rental yield was 4.2% at 30 June 2025 (4.1% at 31 December 2024). Development pipeline offering a €79.0 million annual reversionary potential At 30 June 2025, the portfolio's total reversionary potential (vacant space, pipeline properties, lease renegotiations) was estimated at around €79.0 million per year. The sharp €13 million increase compared with 31 December 2024 was mainly due to the departure of GRDF from the Condorcet building and McKinsey from 90 Champs-Elysées. By efficiently anticipating these departures, SFL was able to begin redeveloping the two properties as soon as the tenants handed back the keys. Pipeline properties mainly comprise the following projects: Renovation of the Haussmann Saint-Augustin building (around 12,600 sq.m.). Following the departure of the tenant (WeWork) on 30 June 2024, work has been undertaken to improve the quality of the service areas and the organisation of the office floors. The first new tenant is preparing to move in on 1 October 2025. Redevelopment of the Scope office building on Quai de la Râpée in Paris (around 22,700 sq.m.). Preparatory work for the redevelopment project was launched in September 2022 and redevelopment work began in August 2024, with delivery scheduled for summer 2026. Redevelopment of the Condorcet building (around 25,000 sq.m.). GRDF moved out of its former headquarters building at the end of January 2025, allowing work to begin on the restructuring of the building for delivery in 2027. Capitalised work carried out in the first half of 2025 totalled €61.1 million, including the above three projects for a combined amount of €42.6 million and refurbishment of complete floors and common areas, mainly in the Cézanne Saint-Honoré, 103 Grenelle, Louvre Saint-Honoré and Edouard VII buildings. A stronger financial structure SFL continued to adapt its financial structure in preparation for the planned merger with Colonial, taking advantage of the liquidity offered by its shareholder: In February 2025, undrawn confirmed credit lines for a total nominal amount of €485 million were cancelled (leaving undrawn confirmed credit lines of €1,085 million at 30 June 2025); In May 2025, the €500 million bond issue that matured during the same month was refinanced by drawing down a long-term intra-group loan for the same amount; In June 2025, interest rate hedges on a notional amount of €300 million were unwound in advance, after which, 81% of the Group's debt was at fixed rates or converted to fixed rate using hedging instruments, compared with 80% at 31 December 2024. During the period, the average maturity of debt was extended from 3.3 years at 31 December 2024 to 3.8 years at 30 June 2025. Net debt at 30 June 2025 amounted to €2,808 million compared to €2,660 million at 31 December 2024, representing a loan-to-value ratio of 34.3% including transfer costs. At the same date, the average cost of debt after hedging was 2.2% and the interest coverage ratio (ICR) was 3.7x. Strong revenue growth in a still uncertain environment Rental income up 6.3% like-for-like First-half 2025 consolidated rental income totalled €122.6 million, up €1.0 million or 0.8% from the €121.6 million reported for the same period of 2024. The very limited change, which was expected, was due to the combined effect of: The €7.0 million year-on-year net decline in revenues, with major pipeline projects at the Haussmann Saint-Augustin and Condorcet buildings leading to €7.6 million in 'lost' rental income. The recognition in first-half 2025 of penalties received from tenants for breaking their leases, partly offset by the cancellation of the related rent accruals in the IFRS financial statements, which added a net €1.0 million to rental income for the period versus first-half 2024. Rent increases (excluding all changes in the portfolio affecting period-on-period comparisons), which boosted rental income by €7.0 million or 6.3%, reflecting: (i) the €3.3 million positive impact of applying rent escalation clauses; (ii) pre-marketing of offices vacated before the end of the original lease, which were taken up by other tenants that needed more space (mainly in Washington Plaza and Edouard VII), a proactive asset management initiative that enabled SFL to capture the offices' reversionary potential earlier than expected (€2.7 million positive impact) and; (iii) the positive contribution from property management contracts related to the Edouard VII and # properties (approximately €1.0 million). Adjusted operating profit (i.e., operating profit before disposal gains and losses and fair value adjustments to investment property) down 1.5% to €108.2 million in first-half 2025, from €109.8 million in the year-earlier period. Higher net profit despite the increase in finance costs Positive fair value adjustments to investment property amounted to €7.2 million in first-half 2025 compared with positive adjustments of €27.4 million in the year-earlier period. Net finance costs stood at €30.9 million in first-half 2025, vs €28.3 million in the same period of 2024, representing an increase of €2.6 million. Excluding non-recurring items, mainly the cost of unwinding hedging instruments and unused confirmed credit lines, recurring financial expenses fell by €2.1 million. The Group recorded a net tax benefit of €30.3 million in the first half of 2025, compared with a benefit of €23.6 million in the year-earlier period. These non-recurring items relate to the election for SIIC status by the last three entities holding property assets, which were previously still subject to corporation tax (elections by SAS Pargal in 2024 and SAS Parhaus and SAS Parchamps in 2025). After taking account of these key items, EPRA earnings came in at €64.5 million in first-half 2025 (€60.1 million in first-half 2024), representing €1.50 per share, up 7.2% on the prior-year period. The Group recorded attributable net profit of €100.0 million during the period (€76.7 million in first-half 2024). EPRA Net Asset Value stable overall, taking into account a dividend payout of €2.85/share At 30 June 2025, EPRA Net Tangible Assets (NTA) stood at €85.0 per share (€3,657 million in total, down 3.2% vs 31 December 2024) and EPRA Net Disposal Value (NDV) was €86.0 per share (€3,701 million, down 1.0% vs 31 December 2024), after payment of a dividend of €2.85 per share in April 2025. Lastly, the election of SAS Parhaus and SAS Parchamps for SIIC status during the first half of the year, with retroactive effect from 1 January 2025, reduced EPRA NTA by €66.8 million and increased EPRA NDV by €30.5 million. Ownership structure The following stages in the planned merger with Inmobiliaria Colonial were completed during the first half of 2025: The merger agreement was signed and approved by the Colonial and SFL Boards of Directors; The proposed merger was approved by SFL and Colonial shareholders at the General Meetings held in April and May 2025 respectively. The French regulatory formalities were completed. Subject to successful completion of the Spanish formalities in September 2025, the merger is expected to be completed in October 2025. EPRA indicators 31/12/2024 30/06/2025 EPRA NRV (€m) 4,218 4,128 /share €98.2 €96.0 EPRA NTA (€m) 3,779 3,657 /share €88.0 €85.0 EPRA NDV (€m) 3,739 3,701 /share €87.0 €86.0 EPRA Net Initial Yield (NIY) 2.9% 3.0% EPRA topped-up NIY 3.8% 3.8% EPRA Vacancy Rate 0.5% 0.7% Expand 31/12/2024 30/06/2025 LTV 32.9% 34.3% 100%, including transfer costs EPRA LTV (including transfer costs) 100% 35.3% 36.5% Attributable to SFL 40.7% 41.8% EPRA LTV (excluding transfer costs) 100% 37.6% 39.1% Attributable to SFL 43.3% 44.7% Expand Alternative Performance Indicators (APIs) EPRA Earnings API EPRA NRV/NTA/NDV APIs € millions 31/12/2024 30/06/2025 Attributable equity 3,642 3,623 Treasury shares 0 0 Fair value adjustments to owner-occupied property 35 33 Unrealised capital gains on intangible assets 4 4 Elimination of financial instruments at fair value 9 5 Elimination of deferred taxes 97 0 Transfer costs 431 463 EPRA NRV (Net Reinstatement Value) 4,218 4,128 Elimination of intangible assets (4) (4) Elimination of unrealised gains on intangible assets (4) (4) Elimination of transfer costs* (431) (463) EPRA NTA (Net Tangible Assets) 3,779 3,657 Intangible assets 4 4 Financial instruments at fair value (9) (5) Fixed-rate debt at fair value 62 45 Deferred taxes (97) 0 EPRA NDV (Net Disposal Value) 3,739 3,701 Expand * Transfer costs are included at their amount as determined in accordance with IFRS (i.e., 0). Net debt API More information is available at About SFL A benchmark player in the prime segment of the Parisian commercial real estate market, Société Foncière Lyonnaise stands out for the quality of its property portfolio, which is valued at €7.7 billion and is focused on the Central Business District of Paris (# Edouard VII, Washington Plaza, etc.), and for the quality of its client portfolio, which is composed of prestigious companies. As France's oldest property company, SFL demonstrates year after year an unwavering commitment to its strategy focused on creating a high value in use for users and, ultimately, substantial appraisal values for its properties. With its sights firmly set on the future, SFL is committed to sustainable real estate with the aim of building the city of tomorrow and helping to reduce carbon emissions in its sector. Stock market: Euronext Paris Compartment A – Euronext Paris ISIN FR0000033409 – Bloomberg: FLY FP – Reuters: FLYP PA S&P rating: BBB+ stable outlook
Yahoo
15-07-2025
- Business
- Yahoo
Baltic Horizon Fund publishes its NAV for June 2025
The net asset value (NAV) per unit of the Baltic Horizon Fund (the Fund) increased to EUR 0.6766 at the end of June 2025 (0.6757 as of 31 May 2025). The month-end total net asset value of the Fund was EUR 97.1 million (EUR 97.0 million as of 31 May 2025). The EPRA NRV as of 30 June 2025 stood at EUR 0.7223 per unit. In June 2025, the consolidated net rental income of the Fund was EUR 1.0 million (EUR 1.0 million in May 2025). On 5 June 2025, a 3,679.7 sq.m. area in the S27 building was handed over to the anchor tenant, the International School of Riga which will open the premises for the new school year already in September. At the end of June 2025, the Fund's consolidated cash and cash equivalents amounted to EUR 7.1 million (31 May 2025: EUR 7.2 million). As of 30 June 2025, the total consolidated assets of the Fund were EUR 238.8 million (31 May 2025: EUR 238.6 million). In alignment with recently implemented various cost-saving measures, the Fund management with the consent of the Fund Supervisory Board opted not to undertake interim property valuations. Management assumes at the same time that the 2025 mid-year fair values of the Fund's properties would not be materially different from 2024 year-end valuations. For additional information, please contact: Tarmo Karotam Baltic Horizon Fund manager E-mail The Fund is a registered contractual public closed-end real estate fund that is managed by Alternative Investment Fund Manager license holder Northern Horizon Capital AS. Distribution: GlobeNewswire, Nasdaq Tallinn, Nasdaq Stockholm, To receive Nasdaq announcements and news from Baltic Horizon Fund about its projects, plans and more, register on You can also follow Baltic Horizon Fund on and on LinkedIn, Facebook, X and YouTube.
Time of India
17-05-2025
- Business
- Time of India
UK's Landsec's property valuations miss expectations, bets on retail growth
BENGALURU: Land Securities ' overall annual property valuations slightly missed expectations on Friday, and the British commercial landlord said it plans to invest more in retail properties as store chains are expanding in premium locations. The company has been shedding non-core assets as growth in office space remains weaker in comparison to retail and residential counterparts after the pandemic. CEO Mark Allan called the company's retail segment the "strongest performing part" of its portfolio, and said he expects the firm to benefit from retailers renting space in premium shopping centres and malls. "Retailers have to be in locations where consumers are spending money and that's what's driving the trend for fewer, better, bigger stores in the very best locations that has been underway for some time now," Allan said in a media call. Landsec plans to invest more in its retail and residential property assets over the next few years, and recently acquired one of the UK's premier shopping centres, Liverpool ONE. Landsec's EPRA net tangible assets - an industry measure that represents the value of its buildings - stood at 874 pence per share as of the end of March, below expectations of 890 pence, as per a company-compiled poll. Its shares were down 1.7% by 0849 GMT. Analysts at JPMorgan said that while the company is growing, the brokerage expects some low single digit percentage adjustments down in market expectations for fiscal 2026 following the small miss in property valuations. Landsec expects rental values for office properties to continue to grow at a broadly similar rate this year as they did last, citing "modest" supply across London. Pre-tax profit for the year ended March 31 came to 393 million pounds ($523.8 million), compared to a loss of 341 million pounds last year.
