Press Releases

2005 consolidated turnover (under IFRS): EUR 10.7m

  14/02/2006 19:00

Turnover doubles while assets under management experience high growth

PAREF, a property group diversified in the acquisition of buildings and the management for the account of third parties, has announced a turnover of €10.67m for 2005, which is an increase of 115% when compared with the previous twelve months (€4.95m).

Over the last quarter of the 2005 financial year, turnover came to €3.15m.

Turnover on the rise for all of the Group's activities

€ x1000* 2005 2004 % Var
Rent and recovered charges 4,683 2,450 91%
of which residential 1,465 357 310%
commercial 3,218 2,093 54%
Property deals 2,376 75 ns
Management fees 3,610 2,426 49%
Consolidated IFRS turnover 10,669 4,951 115%
*Non-audited figures

The main characteristics of the 2005 turnover are as follows:

  • Housing rents have tripled, now standing at €1,465k (against €357k in 2004). This strong growth is explained by the acquisition of tenancies in buildings rue de la Bastille and rue Saint Antoine (May 2005).
  • Commercial rents have risen by 54 % and should increase sharply in the months to come, thanks to acquisitions currently underway.
  • The property deals business saw a significant rise with a total of €2,376k, on account of the sale of a building on Boulevard Beaumarchais.
  • Management fees have gone up from €2.4m to €3.6m, as a result of the new money raised by the SCPIs (real estate investment trusts) managed by the Group.

Strong growth for assets under management

Assets under management increased by 16.5 % in terms of surface area, and by 27.4 % in value. This growth mainly concerns PAREF's own assets and that of the SCPIs managed by the subsidiary Sopargem, and in particular Pierre 48, a zero-coupon real estate trust, and Novapierre 1, a trust holding retail premises.

Capital managed 31/12/2005 31/12/2004 Variation
  sqm € x1000 sqm € x1000 sqm € x1000
Paref group 31,059 48,810 24,324 33,787 27.7% 38.5%
Interpierre 4,863 3,418 3,556 2,100 36.8% 62.8%
Novapierre 1 6,526 23,808 4,767 12,288 36.9% 93.8%
Pierre 48 37,285 125,511 28,563 87,793 30.5% 43.0%
Total SCPI 48,674 152,737 36,886 102,181 32.0% 19.5%
Third parties 51,220 88,491 51,220 90,130 0.0% -1.8%
Overall total 130,953 288,038 112,430 226,098 13.5% 27.4%

PIERRE 48:

  • Overall performance: 12.8 % (issue price up from €650 to €733 during the year)
  • Net new money: €22.1m (against €16.2m in 2004)
  • Cash-in value on 31 December 2005 : €125.5m (compared with €87.8 at the end of 2004)

NOVAPIERRE 1:

  • Overall performance: 9.4 % (issue price up from €360 to €373 during the year, meaning + 3.6 %, plus dividend of €21, giving a yield of 5.8 %)
  • Net new money: €12m (against €4.8m in 2004)
  • Cash-in value on 31December 2005: €23.8m (compared with €12.3 at the end of 2004)

Investment projects announced in December 2005 take shape

Acquired 22 December 2005 , 2,086 m² of office space at the Forum des Halles (porte Berger) rented out to France Télécom (€11.2m).

Since its flotation on the stock market, PAREF has finalised four projects in Paris , including one notarial deed, one commitment to sell and two offers accepted, representing total investments of €36m:
  • Acquired 22 December 2005, 2,086 m² of office space at the Forum des Halles (porte Berger) rented out to France Télécom (€11.2m).
  • Offer accepted for a residential building with a surface area of 1,300m² in the 1st district of Paris (€6m).
  • Offer accepted for a building with a surface area of 6,400m² rented out to a major Group in the 11th district of Paris (€10m).
  • Commitment to sell, dated 30 January 2006, for two commercial and residential buildings, with a surface area of 1,927m² located rue de Rivoli, rented out to various tenants (€9m).

"Other operations should materialise over 2006 in line with the forecast set out in the prospectus,? declared Hubert Lévy-Lambert, Chairman of the Board of Management of PAREF.

As concerns the assets managed for the account of foreign investors, extension projects are underway covering more tna ten thousand m².

Reforms that are positive for PAREF's business

  • SIIC 3: Favourable impact for PAREF

The modification of article 210 E of the General Tax Code, by the finance law amendment of 2005, sometimes referred to as SIIC 3, has already had a significant impact on the competitive position of PAREF.

On the one hand, market offers are on the up - building owners want to make the most of this system, valid until the end of 2007, which offers them a 50% reduction in their capital gains tax.

On the other hand, listed companies and SCPIs are favoured by sellers, who prefer them to other potential buyers.

  • The new OPCI status is on its way

The new legal status of the OPCI (collective real estate investment vehicle) was defined by the ordinance of 13 October 2005 , and their tax status by the finance law amendment for 2005. The OPCIs offer numerous advantages when compared with the SCPIs. In particular, they can directly acquire companies and not only buildings. As soon as the application texts are published, the shareholders in the three SCPIs managed by the PAREF Group will have the opportunity to transform them into OPCIs.

PAREF was floated on the Eurolist C of the Euronext Paris stock market in December 2005.
PAREF works in four complementary areas of business: commercial investment, housing investment, property deals, management for the account of third parties.
PAREF is going to opt for SIIC (listed real estate company) status for this financial year.

?A liquidity contract on the company's securities, in accordance with the new charter of professional ethics drawn up by the AFEI (French Association of Investment Firms) and approved by the AMF (French stock market regulator) on 22 March 2005 was signed with the company Banque Privée Fideuram Wargny'.

PAREF ? Eurolist C by Euronext Paris
Code ISIN: FR00110263202
Mnemonic: PAR

For further information consult the PAREF Group website : http://www.PAREF.com

Next financial information bulletin : Annual results for the 2005 financial year (27 March 2006)

CONTACTS

PAREF
Hubert LEVY-LAMBERT
Chairman of the Board of Management
Tel: +33 (0)140 29 86 86

Alain PERROLLAZ
Director
Tel: +33 (0)1 40 29 86 86
ACTUS Finance & Communication
Sébastien BERRET
Analyst-Investor Relations

Tel: +33 (0)1 53 67 36 36
sberret@actus.fr

Chantal FARANT
Press Relations
Tel: +33 (0)1 53 67 36 36
cfarant@actus.fr

This publication embed "Actusnews SECURITY MASTER".
- SECURITY MASTER Key: mpxsYpiblJnInJufYphobZOXmJxlmpaWmWaYmWdplZrGcJ1gxZxpaZnKnGZnlWxm
- Check this key: https://www.security-master-key.com.

Share this press release :  facebook  twitter  linkedin


Subscribe to all PAREF financial information by registering here.

Part provided by Actusnews Wire © (professional distributor of regulated information)

Other information