Cegereal - Solid Operational and Financial Performance: EPRA Earnings Up 5.1%

  • Rental income stable at €63.0m
  • Increase in EPRA earnings of 5.1%
  • Ranked global leader in sustainable development by GRESB
  • €2.0 per share distribution
  • A new corporate identity submitted to the General Shareholders' Meeting

PARIS--()--Regulatory News:

Cegereal (Paris:CGR):

Key indicators

In millions of euros

2020

2019

Change

Rental income (IFRS)

63.0

63.4

-0.5%

EPRA earnings

42.1

40.0

+5.1%

Portfolio (excl. transfer duties)

1448

1464

-1.1%

Occupancy rate

90.1%

96.9%

-6.8 pts

LTV ratio

53.0%

52.6%

+0.4 pts

EPRA NNNAV per share excluding transfer duties (in €)

44.3

43.7

+1.4%

Jérôme Anselme, Cegereal’s Chief Executive Officer commented: “2020 was an unusual year because of the global pandemic. Exclusively positioned in the office real estate segment in Paris and Greater Paris, Cegereal delivered a solid performance, demonstrating its strong resilience and ability to adapt, as well as its leadership in corporate social responsibility. Right from the start of the crisis, our teams and our partners rallied together to adapt our buildings to the new health restrictions in record time and to offer tailored solutions in consultation with our tenants. We continued to record brisk activity on our portfolio, with good rental transactions and projects delivered in accordance with the announced schedules.

We firmly believe that 2021 will be another dynamic year in which our teams will continue imagining the offices of the future and making them a reality. Over the past few years, Cegereal has successfully transformed into a leading office property company with a portfolio that is perfectly positioned to meet new user expectations and adapt to future work and lifestyle trends. To support its ambitions, at the General Shareholders’ Meeting to be held on May 12, 2021, the Group will ask shareholders to approve changing its identity to Vitura.”

Strong rental activity despite the health crisis

Over the course of 2020, leases were signed, extended or renewed on more than 21,000 sq.m – or 12% of the total surface area of Cegereal’s portfolio – attesting to the Company’s vitality. Each of Cegereal’s real estate assets was actively marketed, resulting notably in the renewal of the lease to Brandt at the Hanami property in Rueil-Malmaison until 2024 and the arrival of Nintendo and DLL Financial Solutions Partner at Europlaza in La Défense. The extension of Crédit Foncier de France's lease for half the surface area of Rives de Bercy for an additional year, signed in early 2021, brings the signed surface area to 36,000 sq.m. – or more than 20% of the total surface area in the portfolio.

Thanks to the sustained pace of activity, on a par with previous years, IFRS rental income remained stable over the period, totaling €63.0 million for 2020, just 0.5% lower than in 2019.

Cegereal’s occupancy rate was 90.1% at December 31, 2020 versus 96.9% a year earlier, representing a decline of 6.8 percentage points. The contraction primarily reflects the spaces vacated by Sagem in April, in the Arcs de Seine campus, and by Hewlett Packard at the end of the year, for which Cegereal received €2.9 million in early termination indemnities covering rent due in 2020. These departures will allow the Company to renovate the vacant space in line with new trends.

The estimated value of Cegereal’s property portfolio (excluding transfer duties) reflects this resilience and amounted to €1,448 million at December 31, 2020, down very slightly (1.1%) from the previous year.

Cegereal is exclusively positioned in the office real estate segment and its tenants, which are mainly large corporates, have solid profiles. As a result, the impacts of the health crisis on its business are limited and the rent collection rate for 2020 was 100%.

Gain in EPRA earnings and EPRA NNNAV

The asset management work undertaken had a positive impact on the Company’s operating and financial performance for the year. Cegereal’s EPRA earnings totaled €42.1 million in 2020, up 5.1% from 2019.

Cegereal’s recurring cash flow rose by 8.6% to €46.6 million in 2020, versus €42.9 million in 2019.

IFRS net attributable income came in at €16.1 million, compared with €80.8 million in 2019, the decline primarily reflecting the change in the estimated value of the buildings, which was negative in 2020 but was up strongly in 2019.

EPRA NNNAV stood at €704.5 million or €44.3 per share at end-December, up 1.4% from €695.1 million or €43.7 per share at December 31, 2019. The increase reflects growth in IFRS consolidated net income (€42.1 million), a decline in the portfolio value (€26.0 million) and the dividend distribution (€11.9 million).

IFRS consolidated net debt came to €768 million at December 31, 2020, representing a loan-to-value ratio of 53%, while the average maturity of the Group’s borrowings stood at 2.5 years with an average interest rate of 1.3%.

Global leader in sustainable development

Cegereal has been firmly committed to environmental, social and governance (ESG) issues since its creation.

Each year, its commitment has been acknowledged by organizations recognized as experts in this area. In 2020, GRESB rewarded the Company by naming it a Global Sector Leader in the listed office property companies category, with a score of 94/100. Cegereal also received two Gold Awards from the European Public Real Estate Association (EPRA) for the quality and transparency of its financial and non-financial reporting and a score of A from the Carbon Disclosure Project (CDP), which puts it among the world’s leading companies in terms of climate change strategy.

2021 distribution: €2.0 per share

In the interests of prudence and in light of the uncertainty surrounding the Covid-19 epidemic, the Company decided to adjust the 2019 dividend to €0.75 per share. The decision enabled Cegereal to protect its cash position and continue to do business as usual.

At the next General Shareholders' Meeting, on May 12, 2021, Cegereal will recommend a distribution of €2.0 per share.

New corporate identity

Cegereal has announced its intention to change its corporate identity to become Vitura. The name Vitura embodies the ideas of vitality, agility and responsibility, values on which the Company builds its strategy in order to continue developing the workplace of the future. The brand vision, “Workplaces for People. By People”, emphasizes the trust-based partnerships Cegereal forges with its stakeholders, who share its goal of long-term value creation.

The various aspects of this change in corporate identity are presented in a press release published today, which is available on the Company’s website.

The corporate rebranding will be subject to a vote by the General Shareholders’ Meeting to be held on May 12, 2021.

* * *

Cegereal’s Board of Directors met on February 18, 2021 to approve the audited consolidated financial statements for the year ended December 31, 2020.

The annual results presentation can be viewed on the Company’s website: www.cegereal.com

Investor Calendar

- May 12, 2021: General Shareholders’ Meeting

About Cegereal

Created in 2006, Cegereal is a listed real estate company that invests in prime office properties in Paris and Greater Paris. The total value of the portfolio was estimated at €1,448 million at December 31, 2020 (excluding transfer duties). Thanks to its strong commitment to sustainable development, Cegereal was named a Global Sector Leader in the 2020 Global Real Estate Sustainability Benchmark’s (GRESB) listed office property companies category and received two Gold Awards from the European Public Real Estate Association (EPRA) for the quality and transparency of its financial and non-financial reporting. Its entire portfolio has achieved NF HQETM Exploitation and BREEAM In-Use International certification. Cegereal is a REIT listed on Euronext Paris since 2006, in compartment B (ISIN: FR0010309096). The Company had a market capitalization of €509 million on February 17, 2021. Visit our website to find out more: www.cegereal.com

APPENDICES

IFRS Income Statement (consolidated)

In thousands of euros, except per share data

 

 

 

2020

2019

 

12 months

12 months

 

Rental income

63 032

63 369

Income from other services

21 845

20 045

Building-related costs*

(21 552)

(31 621)

Net rental income

63 324

51 793

 

Sale of building

0

0

Administrative costs*

(8 983)

(3 885)

Other operating expenses

(61)

(13)

Other operating income

600

165

Increase in fair value of investment property

29 129

60 710

Decrease in fair value of investment property

(55 103)

(14 480)

Total change in fair value of investment property

(25 974)

46 230

 

Net operating income

28 906

94 289

 

Financial income

230

0

Financial expenses

(13 042)

(13 529)

Net financial expense

(12 812)

(13 529)

 

Corporate income tax

0

0

 

CONSOLIDATED NET INCOME

16 094

80 760

of which attributable to owners of the Company

16 094

80 760

of which attributable to non-controlling interests

0

0

 

Other comprehensive income

 

TOTAL COMPREHENSIVE INCOME

16 094

80 760

of which attributable to owners of the Company

16 094

80 760

of which attributable to non-controlling interests

0

0

 

Basic earnings per share (in euros)

1,00

5,10

Diluted earnings per share (in euros)

1,00

4,92

* The IFRS income statement, including comparative data for 2019, has been modified to provide users of the financial statements with a better understanding of the rental performance of the Group’s properties. Accordingly, the advisory fee and incentive fee defined in the Asset Management Agreement have been reclassified from “building-related costs” to “administrative costs”. In 2020, these fees amounted to €5,383 thousand compared with €10,108 thousand in 2019.

IFRS Balance Sheet (consolidated)

In thousands of euros

 

 

 

Dec. 31, 2020

Dec. 31, 2019

 

Non-current assets

 

Property, plant and equipment

25

38

Investment property

1 448 170

1 463 920

Non-current loans and receivables

17 780

23 146

Financial instruments

8

34

Total non-current assets

1 465 983

1 487 138

 

Current assets

 

Trade accounts receivable

11 474

9 720

Other operating receivables

11 459

11 607

Prepaid expenses

366

292

Total receivables

23 299

21 620

 

Cash and cash equivalents

62 836

44 880

Total cash and cash equivalents

62 836

44 880

 

Total current assets

86 135

66 499

TOTAL ASSETS

1 552 118

1 553 637

 

Shareholders' equity

 

Share capital

60 444

79 532

Legal reserve and additional paid-in capital

74 206

66 462

Consolidated reserves and retained earnings

583 574

503 513

Net attributable income

16 094

80 760

Total shareholders’ equity

734 318

730 268

 

Non-current liabilities

 

Non-current borrowings

671 322

763 974

Other non-current borrowings and debt

8 585

10 087

Non-current corporate income tax liability

0

0

Financial instruments

658

682

Total non-current liabilities

680 565

774 743

 

Current liabilities

 

Current borrowings

96 821

3 468

Trade accounts payable

10 056

12 349

Corporate income tax liability

0

0

Other operating liabilities

8 916

10 437

Prepaid revenue

21 442

22 373

Total current liabilities

137 235

48 626

 

Total liabilities

817 800

823 369

TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES

1 552 118

1 553 637

IFRS Statement of Cash Flows (consolidated)

In thousands of euros

 

 

 

2020

2019

OPERATING ACTIVITIES

Consolidated net income

16 094

80 760

 

Elimination of items related to the valuation of buildings:

Fair value adjustments to investment property

25 974

(46 230)

Annulation des dotations aux amortissement

Indemnité perçue des locataires pour le remplacement des composants

0

0

 

Elimination of other income/expense items with no cash impact:

 

Depreciation of property, plant and equipment (excluding investment property)

13

9

Free share grants not vested at the reporting date

0

0

Fair value of financial instruments (share subscription warrants, interest rate caps and swaps)

2

427

Adjustments for loans at amortized cost

2 265

2 362

Contingency and loss provisions

0

0

Corporate income tax

Penalty interest

 

Cash ows from operations before tax and changes in working capital requirements

44 347

37 329

 

Other changes in working capital requirements

(1 708)

(8 277)

Working capital adjustments to reflect changes in the scope of consolidation

 

Change in working capital requirements

(1 708)

(8 277)

 

Net cash ows from operating activities

42 639

29 052

 

INVESTING ACTIVITIES

Acquisition of fixed assets

(10 224)

(9 170)

Net increase in amounts due to fixed asset suppliers

650

(1 745)

 

Net cash ows used in investing activities

(9 573)

(10 915)

 

FINANCING ACTIVITIES

Capital increase

0

11 204

Capital increase transaction costs

0

0

Change in bank debt

(1 500)

(1 500)

Issue of financial instruments (share subscription warrants)

0

0

Refinancing/financing transaction costs

(102)

(102)

Net increase in liability in respect of refinancing

0

(420)

Purchases of hedging instruments

0

0

Net increase in current borrowings

38

236

Net decrease in current borrowings

0

0

Net increase in other non-current borrowings and debt

(1 502)

544

Net decrease in other non-current borrowings and debt

0

0

Purchases and sales of treasury shares

(124)

(28)

Dividends paid

(11 919)

(36 557)

 

Net cash ows from nancing activities

(15 110)

(26 625)

 

Change in cash and cash equivalents

17 956

(8 488)

Cash and cash equivalents at beginning of period*

44 880

53 367

CASH AND CASH EQUIVALENTS AT END OF PERIOD

62 836

44 880

* There were no cash liabilities for any of the periods presented above.

French GAAP Income Statement

In euros

 

 

 

Dec. 31, 2020

Dec. 31, 2019

 

12 months

12 months

Sales of services

248 600

248 750

NET REVENUE

248 600

248 750

Reversal of depreciation and amortization charges, impairment and expense transfers

0

0

Other revenue

33 083

22 559

Total operating revenue

281 683

271 309

 

Purchases of raw materials and other supplies

0

0

Other purchases and external charges

1 602 280

1 901 020

Taxes, duties and other levies

36 536

39 809

Wages and salaries

254 999

340 980

Social security charges

163 553

175 048

Fixed assets: depreciation and amortization

3 435

3 561

Contingency and loss provisions

0

0

Other expenses

200 131

196 229

Total operating expenses

2 260 934

2 656 646

 

OPERATING LOSS

(1 979 251)

(2 385 337)

 

Financial income from controlled entities

802 677

3 022 000

Other interest income

0

0

Foreign exchange gains

0

0

Total financial income

802 677

3 022 000

 

Interest expenses

634

104 731

Foreign exchange losses

0

0

Total financial expenses

634

104 731

 

NET FINANCIAL INCOME

802 042

2 917 269

 

RECURRING LOSS BEFORE TAX

(1 177 208)

531 932

Non-recurring income on capital transactions

6 619

42 347

Reversal of impairment, provisions and non-recurring expense transfers

0

0

Total non-recurring income

6 619

42 347

Non-recurring expenses on management transactions

0

5 000

Non-recurring expenses on capital transactions

98 759

11 352

Total non-recurring expenses

98 759

16 352

 

NET NON-RECURRING INCOME

(92 140)

25 995

Corporate income tax

0

0

TOTAL INCOME

1 090 979

3 335 656

TOTAL EXPENSES

2 360 327

2 777 729

NET LOSS

(1 269 348)

557 927

French GAAP Balance Sheet

In euros

ASSETS

Gross amount

Depr., amort. & prov.

Dec. 31, 2020

Dec. 31, 2019

 

 

 

 

Property, plant and equipment

Other property, plant and equipment

34 218

(9 140)

25 078

5 071

 

Financial fixed assets

Receivables from controlled entities

201 434 031

-

201 434 031

235 004 686

Loans

-

-

-

-

Other financial fixed assets

748 879

-

748 879

791 653

 

FIXED ASSETS

202 217 128

(9 140)

202 207 988

235 801 410

 

Receivables

Trade accounts receivable

298 320

-

298 320

233 134

Other receivables

63 242 363

-

63 242 363

68 291 960

 

Cash and cash equivalents

21 628 362

-

21 628 362

2 236 722

 

CURRENT ASSETS

85 169 045

-

85 169 045

70 761 815

 

Prepaid expenses

26 587

-

26 587

-

 

TOTAL ASSETS

287 412 760

(9 140)

287 403 620

306 563 225

 

In euros

 

 

EQUITY AND LIABILITIES

 

 

Dec. 31, 2020

Dec. 31, 2019

 

 

 

Capital

 

 

Share capital (including paid-up capital: 66,862,500)

60 444 472

79 532 200

Additional paid-in capital

 

 

67 055 023

59 463 926

Revaluation reserve

 

 

152 341 864

152 341 864

 

 

 

Reserves

 

 

Legal reserve

 

 

7 953 220

7 800 625

Other reserves

 

 

-

-

Retained earnings

 

 

Retained earnings

 

 

10 389

27 867

Net loss for the year

 

 

(1 269 348)

557 927

 

 

 

SHAREHOLDERS’ EQUITY

 

 

286 535 620

299 724 408

 

 

 

OTHER EQUITY

 

 

-

-

 

 

 

Loss provisions

 

 

-

-

 

 

 

CONTINGENCY AND LOSS PROVISIONS

 

 

-

-

 

 

 

Non-current borrowings and debt

 

 

Miscellaneous borrowings and debt

-

5 793 854

 

 

 

Trade accounts payable and other current liabilities

 

 

Trade accounts payable

541 635

721 770

Tax and social liabilities

325 306

323 194

Amounts owed to fixed asset suppliers

-

-

Other debts

1 059

-

 

 

 

LIABILITIES

 

 

868 000

6 838 817

 

 

 

TOTAL EQUITY AND LIABILITIES

 

 

287 403 620

306 563 225

Reconciliation of Alternative Performance Measures (APM)

Recurring cash flow APM

 

 

In thousands of euros

2020

2019

Net income under IFRS

16 094

80 760

Restatement of changes in fair value of investment property

25 974

(46 230)

Other restatements of changes in fair value

2

454

Restatement of other fees

0

5 061

EPRA earnings

42 070

40 046

Restatement of deferred lease incentives (IAS 17)

2 373

602

Restatement of deferred finance costs

2 163

2 260

Cegereal recurring cash flow

46 606

42 908

(1) Non-recurring fees due under the Asset Management Agreement.

EPRA NNNAV APM

 

In thousands of euros

2020

2019

 

Shareholders’ equity under IFRS

734 318

730 268

 

Portion of rent-free periods

(26 241)

(28 614)

 

Market value of loans

(769 535)

(771 837)

 

Carrying amount of loans

765 930

765 240

 

NNNAV PER SHARE

704 472

695 057

 

(2) Lease incentives recorded in assets in the IFRS consolidated financial statements under “Non-current loans and receivables” and “Other operating receivables”.
(3) Consolidated gross debt at December 31, 2020 recorded in the IFRS consolidated financial statements under “Current borrowings” and “Non-current borrowings”, adjusted for interest not yet due of €2,213 thousand.

LTV ratio APM

 

In thousands of euros

2020

2019

 

Gross amount of balance sheet loans (statutory financial statements)

768

769

 

Fair value of investment property (excluding transfer duties)

1 448

1 464

 

LTV ratio (%)

53,0%

52,6%

 

(4) Consolidated gross debt at December 31, 2020 recorded in the statutory financial statements.

Occupancy rate APM

The occupancy rate is the ratio of space for which the Company receives rent under a lease agreement to the total amount of available space.

Contacts

Media Relations
Aliénor Miens/Quentin Dussart
+33 (0)6 59 42 29 35
cegereal@citigatedewerogerson.com

Investor Relations
Charlotte de Laroche
+33 1 42 25 76 38
info@cegereal.com

Contacts

Media Relations
Aliénor Miens/Quentin Dussart
+33 (0)6 59 42 29 35
cegereal@citigatedewerogerson.com

Investor Relations
Charlotte de Laroche
+33 1 42 25 76 38
info@cegereal.com