Société de la Tour Eiffel has presented its results over the first half 2007. During the first six months of 2007, the company continued its growth through acquisitions amounting to €135 million. These will generate an additional rental income of €10 million p.a, and offer significant capital gains on completion.
In particular, the acquisition of Parcoval (€110 million) has strengthened the company's position on the business park market. As at 30th June 2007, the overall portfolio represents €1230 million of commitments of which €1025 million is up and let.
Net Asset Value: +25%
The value of the company's portfolio as at 30 June 2007 was at €1080 million (excluding transfer costs) broken down into:
- 54% offices located in central Paris, emerging business locations around Paris and major regional cities
- 35% business space and parks located in the Paris area as well as around major regional centers
- 8% warehouses mainly located in the regions
- 3% nursing homes
The loan-to-value ratio is 52% to be compared with the company's target of 65%, ensuring funding capabilities for maintaining growth and development on the portfolio.
The NAV (excluding transfer costs) attained €104 per share as at 30/06/07, up from €83.5 per share as at 31/12/2006.
Dividend: +20%
Following a total dividend of €5 for 2006, the company will pay out on 7th of August an interim dividend of €3 per share for the first half 2007.
Prospects
In addition to the selective disposal of non strategic assets, the company intends to pursue its policy of overall value creation across the entire portfolio including its historical assets.
During the first half, the leasing of some 16,000 m², representing €2 million rental income, was achieved. The marketing of new development projects, launched in 2006, in Rueil Malmaison and in Grenoble, should be successfully completed by the year end.
Employing its financing capacity, the company will focus on project development from within its captive land bank (160,000 m² buildable), in particular the launching of business parks in Le Bourget, Marseille, Aix and Bordeaux (20,000 m²), and the accelerated office redevelopment on the Massy Ampère site.
This investment strategy profile underwrites the company's sustained growth potential.
Source: Société de la Tour Eiffel
