PR Newswire/Les Echos/ Press release Paris, February 25th 2008, 8:30am Earnings continue to rise in 2007 The Affine group continued to grow in 2007, despite the impact of the financial market crisis during the second half. During the year, the Group: took control of Fideimur, subsequently renamed AffiParis, a new REIT (SIIC) - specialised in commercial properties in Paris and listed in Compartment C on Euronext Paris; strengthened its equity base through new issues by Affine (€75m of subordinated - perpetual notes [TSDI] in July), Banimmo (€56.7m in June, when it was listed on Euronext Brussels) and AffiParis (€11.1m in March). Consolidated net profit: €91.6m (+ 43.2%) The strong growth of Affine's consolidated net profit came mainly from its rental property business, of which the operating margin increased by 33.9% to €57.0m. Net gains on disposals generated €27.0m, and the change in the fair value of the assets contributed a profit of €27.8m. In 2007, the Group also benefited from two non-recurring items: a €12.6m dilution profit from the floating of the shares of Banimmo, and an €8.9m net tax credit on AffiParis's adoption of REIT (SIIC) status. The contributions from the Group's other activities remained unchanged compared with 2006. Excluding overheads, cash flows provided by operating activities rose by 12.2% to €93.3m, compared with €83.1m in 2006. Including overheads, these same cash flows increased by 4.7% to €65.7m. Investments: €164,2m The Group's investments, which were particularly high in 2006 due to the acquisition of the stake in Banimmo, amounted to €164,2m in 2007. The investments were spread between France and Belgium, and included €28.2m for the acquisition of the controlling interest in AffiParis (formerly Fideimur) and €33.2 for the acquisition of Dolce Chantilly shares. Net asset value: €63.9 per share (+ 47%) The market value of the Group's property assets (95% of the value was estimated by independent appraisals) amounted to €996m at 31 December 2007 (including transfer taxes), up from €746m one year prior. The occupation rate totalled 94.5% (94.0% at the end of 2006). In the light of the strengthening of the Group's equity, its net asset value increased sharply, with a replacement NAV of €518m (+ 47%), or €63.9 per share, and a liquidation NAV of €469m, or €57.9 per share. Share price: - 17.7% Like all property stocks, Affine's share price was affected by the market trends that began in the summer of 2007. After rising by 53.8% in 2006, the stock decreased by 17.7% by the end of 2007. With the three-for-one stock split on July 2nd, the closing price amounted to €37.5 on December 31st. Affine shares, as well as other property stocks, further declined since the beginning of 2008 and is currently trading at around €32, approximately 50% below its NAV. Dividend increased: €1.65 (+ 10%) In 2007, the Affine SA parent company generated net profit of €16.8m, an 11.4% increase over 2006. This favourable situation allowed the company to pursue its policy of regularly increasing its dividend. Accordingly, at the Annual General Meeting of 9 April 2007 a request for approval of a €1.65 dividend per share, compared with a €1.50 dividend in 2006 (after adjusting for the stock split). At the current Affine share price, this corresponds to a yield of around 5%. The AGM will also be asked to approve the payment of the balance of the dividend in shares (net of the €0.45 interim dividend already paid). Outlook Under the prevailing economic conditions, the Affine group will continue to pursue its growth, maintaining caution and selectivity in its investments. If economic and financial conditions permit, the Group should in 2008, generate a net consolidated profit similar to the one reported in 2007 (excluding the impact of non-recurring items). Euro millions 2006 restated 2007 Consolidated profits Investment properties 91.1 111.8 of which variation in assets fair value 36.2 27.8 of which disposal gains 12.3 27.0 Lease finance 10.0 10.2 Development 10.7 10.6 Other activities 3.3 8.7 Other financial income and expense (21.6) (29.7) Operating and other expenses (24.7) (24.1) of which dilution gain - 12.6 Pre-tax income 68.7 87.5 Income tax and other items (4.8) 4.1 of which net tax credit - 8.9 Net consolidated profit 64.0 91.6 of which Group share 59.0 78.2 About the Affine Group: The Affine Group is structured around three property companies: - Affine, a property company with French REIT (SIIC) status, which is listed in Compartment B on Euronext Paris, and which acts as an investor (offices, warehouses, stores) throughout France and in neighbouring countries. It is also a credit institution in respect of its financial leasing business. Affine's shares are included in the SBF 250 (CAC Small 90), SIIC-IEIF and EPRA indices; its market capitalisation represents approximately €250 million and, at the end of 2007, its assets were estimated at €631 million. - Banimmo, a Belgian property company listed on Euronext Brussels and Paris, is jointly controlled by Affine (50%) and the company's management (27%). It is specifically involved in renovating and repositioning buildings in Belgium, France and Luxembourg. Its market capitalisation represents approximately €220 million and, at the end of 2007, its assets were estimated at almost €300 million. - AffiParis is a French REIT (SIIC) listed in Compartment B on Euronext Paris, and specialises in commercial property in Paris. Its market capitalisation has reached €40 million and, at the end of 2007, its assets were estimated at €177 million. The Group also has subsidiaries specialised in logistics engineering (Concerto Développement and Concerto Développement Ibérica), retail investment (Capucine Investissements), property development (Promaffine) and business centres (BFI). CONTACTS CITIGATE DEWE ROGERSON : Nicolas Castex Agnès Villeret Tél. + 33(0)1 53 32 78 88/95 nicolas.castex@citigate.fr or agnes.villeret@citigate.fr AFFINE : Maryse Aulagnon - Alain Chaussard Tél. + 33(0)1 44 90 43 10 - info@affine.fr Antoine-Pierre de Grammont Tél. + 33 (0)1 44 90 43 53 antoine-pierre.de-grammont@affine.fr The content and accuracy of news releases published on this site and/or distributed by PR Newswire or its partners are the sole responsibility of the originating company or organisation. 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