SFL – Third-Quarter 2018 Financial Information

Rental income: €143.8m, up 4.6% like-for-like

PARIS–(BUSINESS WIRE)–Regulatory News:

SFL (Paris:FLY):

Consolidated revenue by business segment
(€000’s)

             
       

2018
(9 months)

 

2017
(9 months)

Rental income   143,790   147,819
o/w   Paris Central Business District 119,038 114,326
Paris Other 22,479 21,526
    Western Crescent   2,273   11,967
Other revenue   0   0
Total consolidated revenue   143,790   147,819

At €143.8 million, consolidated rental income for the first nine months
of 2018 was down €4.0 million or 2.7% compared to the €147.8 million
reported for the same period of 2017. The decline was due to the
disposal of the IN/OUT property in September 2017, the effects of which
were offset to a significant extent by growth in like-for-like income.

  • On a like-for-like basis (excluding all changes in the portfolio
    affecting period-on-period comparisons), rental income was €6.0
    million (4.6%) higher, reflecting the contribution of new leases
    signed in 2017 and 2018, mainly in the Washington Plaza, 103 Grenelle,
    Cézanne Saint-Honoré and 9 Percier properties, as well as an increase
    in rents for Galerie des Champs-Elysées retail units and for the
    #cloud.paris and 131 Wagram office properties.
  • The sale of the IN/OUT building on 29 September 2017 led to a €9.7
    million decrease in rental income compared to the first nine months of
    2017.
  • Lastly, income from assets under redevelopment and various penalties
    dipped by €0.3 million versus the year earlier period.

During the first nine months of 2018, leases were signed on close to
20,000 sq.m. of space, of which over 11,000 sq.m in the third quarter.

The average nominal rent for office space leased was €694 per sq.m. and
the effective rent was €605 per sq.m.

The physical occupancy rate for revenue-generating buildings remained
high, at 96.6% as of 30 September 2018 versus 96.4% as of 31 December
2017, while the EPRA vacancy rate stood at 2.5%.

No properties were purchased or sold during the first nine months of
2018.

At 30 September 2018, SFL’s consolidated net debt amounted to
€1,662 million, compared with €1,631 million at 31 December 2017,
representing a loan-to-value ratio of 24.4% based on the portfolio’s
appraisal value at 30 June 2018.

At 30 September 2018, SFL had €820 million in committed undrawn lines of
credit.

About SFL

Leader 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 €6.4 billion and is focused on
the Central Business District of Paris (#cloud.paris, Edouard VII,
Washington Plaza, etc.), and for the quality of its client portfolio,
which is composed of prestigious companies in the consulting, media,
digital, luxury, finance and insurance sectors. 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.

Stock market: Euronext Paris Compartment A – Euronext Paris ISIN
FR0000033409 – Bloomberg: FLY FP – Reuters: FLYP PA

S&P rating: BBB+ stable outlook

Contacts

SFL
Thomas Fareng, +33 (0)1 42 97 27 00
t.fareng@fonciere-lyonnaise.com
or
Evidence
Grégoire
Silly, 06 99 10 78 99
gregoire.silly@evidenceparis.fr
www.fonciere-lyonnaise.com

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