Vitura: First-Half 2024 Results
- Rental income of €21.7 million
- Portfolio value of €1.3 billion
- Occupancy rate of 67% at buildings in use
- EPRA NTA of €465 million or €27.3 per share
PARIS–(BUSINESS WIRE)–Regulatory News:
Vitura (Paris:VTR):
Particularly attractive repositioned assets
During the first half of the year, 11,000 sq.m were let, representing 7% of the total surface area of the portfolio of buildings in use1. The transactions mainly concern lease renewals and extensions at Europlaza and Arcs de Seine, two assets offering amenities inspired by hotel standards. A lease was signed for 5,600 sq.m, or 20% of the surface area, of the Rives de Bercy campus, less than three months after it was completely renovated. The tenant’s teams are scheduled to arrive in the third quarter of 2024.
Sale of a controlling interest in the Passy Kennedy and Office Kennedy holding companies
In early July, Vitura sold a controlling interest in the companies holding the Passy Kennedy and Office Kennedy properties to a European asset manager for a value of approximately €14 million.
Following the sale, Vitura reclassified the assets and liabilities of the holding companies as assets and liabilities held for sale as of June 30, 2024. In accounting terms, the transaction will result in a capital loss of around €139 million2 in the consolidated financial statements for the second half of 2024, or a negative impact of approximately €8.2 per share on EPRA NTA.
As part of this transaction, new bank financing of €270 million was arranged by the holding companies, used to repay the consolidated loans related to the properties at June 30, 2024 in an amount of €205 million, and notably the €139 million loan granted when Passy Kennedy was acquired, falling due on July 15, 2024.
The sale will help to finance the works program aimed at repositioning Passy Kennedy and Office Kennedy as a top-class property complex of 34,000 sq.m offering a broad range of upscale amenities including food services, conference facilities, a gym, and wellness and social areas. It was designed to feature facilities to promote low-carbon mobility, while the property will meet the highest environmental standards.
Vitura retains a non-controlling interest of around 7% and may be entitled to value created by the redeveloped properties.
First-half 2024 results
Rental income for the period totaled €21.7 million, compared with €25.6 million for first-half 2023. Excluding the impact of the Passy Kennedy and Office Kennedy buildings, which have been fully vacated, rental income rose from €19.2 million to €21.7 million, an increase of €2.4 million or 12.5%.
The occupancy rate of buildings in use came to 67% at June 30, 2024, stable compared with December 31, 2023.
EPRA earnings represented a loss of €7.8 million in first-half 2024, compared with earnings of €8.3 million for the prior-year period. EPRA earnings generated by the holding companies of Passy Kennedy and Office Kennedy (both vacant) represented a loss of €7.6 million at June 30, 2024, comprising mainly rental expenses and financial expenses. Excluding these two companies, EPRA earnings represent a loss of €0.3 million, compared with earnings of €2.7 million for the same period in 2023. This decrease is due to the cost of restructuring hedging instruments (negative €1.6 million impact) and interest for the period linked to the loan granted by the majority shareholder (negative €1.9 million impact) to cover the Group’s cash flow requirements.
Market pressure on capitalization rates, partially mitigated by the asset management work carried out, weighed on portfolio value. The value of the Group’s portfolio stood at €1,266 million (compared with €1,307 million at December 31, 2023). This decrease is mainly due to a rise in capitalization rates.
IFRS consolidated net debt came to €809 million at June 30, 2024, with an average loan-to-value ratio of 63.9%. An agreement was reached in April 2024 with Hanami’s banking pool to suspend the effects of the loan-to-value ratio being breached until December 31, 2024, and to restructure the existing debt of €92 million.
In light of high interest rates, the Group is maintaining its policy to hedge against changes in the Euribor using interest rate hedging instruments. For the next 12 months, 100% of the Group’s debt will be hedged at an average rate of 0.50%3.
The market value of the Group’s assets has an impact on EPRA NTA, which stood at €465 million or €27.3 per share at end-June 2024, compared with €523 million or €30.7 per share at December 31, 2023.
The Statutory Auditors’ review report is under way.
About Vitura
Created in 2006, Vitura is a listed real estate company (SIIC) that invests in prime office properties in Paris and Greater Paris. The total value of the portfolio was estimated at €1,266 million at June 30, 2024 (excluding transfer duties).
Thanks to its strong commitment to sustainable development, the Company’s leadership position is recognized by ESG rating agencies. Vitura has held a GRESB (Global Real Estate Sustainability Benchmark) 5-star rating since 2014 and has been ranked world number 1 (Global Sector Leader) in the listed office property companies category four times. It has 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. Vitura is ISO 14001-certified.
Vitura is a REIT listed on Euronext Paris since 2006, in compartment B (ISIN: FR0010309096).
Visit our website to find out more: www.vitura.fr/en
Find us on: LinkedIn / X
APPENDICES
Reconciliation of Alternative Performance Measures (APM)
|
EPRA earnings |
||
|
In thousands of euros |
June 30, 2024 |
June 30, 2023 |
|
Net income under IFRS |
(54 588) |
(79 443) |
|
Restatement of changes in fair value of investment property |
46 116 |
83 924 |
|
Other restatements of changes in fair value |
1 335 |
3 842 |
|
EPRA earnings |
(7 137) |
8 323 |
|
EPRA NTA |
||
|
In thousands of euros |
June 30, 2024 |
June 30, 2023 |
|
Shareholders’ equity under IFRS |
457 317 |
672 358 |
|
Portion of rent-free periods (1) |
(18 699) |
(16 689) |
|
Elimination of fair value of share subscription warrants |
0 |
0 |
|
Fair value of diluted NAV |
438 619 |
655 669 |
|
Transfer duties (2) |
54 349 |
63 412 |
|
Fair value of financial instruments |
(26 836) |
(49 414) |
|
EPRA NTA |
466 132 |
669 668 |
|
EPRA NTA per share |
27.3 |
39.3 |
|
(1) Lease incentives recorded in assets in the IFRS consolidated financial statements under Non-current loans and receivables and Other operating receivables. |
||
|
(2) Transfer duties of 5% applied to the net assets of the subsidiaries holding the properties to allow for the sale of the shares in these entities. |
||
|
LTV ratio |
||
|
In millions of euros |
June 30, 2024 |
June 30, 2023 |
|
Gross amount of balance sheet loans (statutory financial statements) (1) |
808 |
825 |
|
Fair value of investment property |
1 266 |
1 436 |
|
LTV ratio (%) |
63.8% |
57.4% |
|
(1) Consolidated gross debt recorded in the statutory financial statements. |
||
|
Occupancy rate |
||
|
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. |
||
IFRS Income Statement (consolidated)
|
In thousands of euros, except per share data |
|||
|
June 30, 2024 |
Dec 31, 2023 |
June 30, 2023 |
|
|
6 mois |
12 months |
6 mois |
|
|
Rental income |
21 756 |
51 195 |
25 639 |
|
Income from other services |
9 685 |
25 415 |
17 156 |
|
Building-related costs |
(17 884) |
(26 184) |
(17 048) |
|
Net rental income |
13 558 |
50 427 |
25 748 |
|
Sale of building |
0 |
0 |
0 |
|
Administrative costs |
(4 088) |
(8 716) |
(4 659) |
|
Depreciation, amortization and impairment |
307 |
0 |
(368) |
|
Other operating expenses |
0 |
(310) |
0 |
|
Other operating income |
0 |
0 |
1 |
|
Total change in fair value of investment property |
(46 116) |
(229 107) |
(83 924) |
|
Net operating income |
(36 339) |
(187 706) |
(63 204) |
|
Financial income |
11 794 |
20 470 |
7 410 |
|
Financial expenses |
(30 043) |
(72 618) |
(23 651) |
|
Net financial expense |
(18 248) |
(52 148) |
(16 240) |
|
Corporate income tax |
0 |
0 |
0 |
|
CONSOLIDATED NET INCOME |
(54 588) |
(239 854) |
(79 443) |
|
of which attributable to owners of the Company |
(54 588) |
(239 854) |
(79 443) |
|
of which attributable to non-controlling interests |
0 |
0 |
0 |
|
Other comprehensive income |
0 |
0 |
0 |
|
TOTAL COMPREHENSIVE INCOME |
(54 588) |
(239 854) |
(79 443) |
|
of which attributable to owners of the Company |
(54 588) |
(239 854) |
(79 443) |
|
of which attributable to non-controlling interests |
0 |
0 |
0 |
|
Basic earnings per share (in euros) |
(3.20) |
(14.07) |
(4.66) |
|
Diluted earnings per share (in euros) |
(3.20) |
(14.07) |
(4.66) |
IFRS Balance Sheet (consolidated)
|
In thousands of euros |
|||
|
June 30, 2024 |
Dec. 31, 2023 |
June 30, 2023 |
|
|
Non-current assets |
|||
|
Property, plant and equipment |
3 |
3 |
3 |
|
Investment property |
913 100 |
1 306 860 |
1 436 300 |
|
Financial assets |
1 |
0 |
0 |
|
Non-current loans and receivables |
11 291 |
15 871 |
13 000 |
|
Financial instruments |
17 684 |
25 360 |
47 958 |
|
Total non-current assets |
942 080 |
1 348 095 |
1 497 261 |
|
Current assets |
|||
|
Assets held for sale |
363 101 |
0 |
0 |
|
Trade accounts receivable |
13 758 |
14 647 |
16 473 |
|
Other operating receivables |
12 094 |
13 150 |
13 912 |
|
Prepaid expenses |
289 |
521 |
286 |
|
Total receivables |
389 242 |
28 318 |
30 672 |
|
Financial instruments |
9 960 |
7 712 |
5 636 |
|
Cash and cash equivalents |
9 856 |
11 720 |
15 053 |
|
Total cash and cash equivalents |
19 816 |
19 432 |
20 689 |
|
Total current assets |
409 058 |
47 749 |
51 361 |
|
TOTAL ASSETS |
1 351 137 |
1 395 844 |
1 548 621 |
|
Shareholders’ equity |
|||
|
Share capital |
64 933 |
64 933 |
64 933 |
|
Legal reserve and additional paid-in capital |
60 047 |
60 047 |
60 047 |
|
Consolidated reserves and retained earnings |
386 926 |
626 782 |
626 822 |
|
Net attributable income |
(54 588) |
(239 854) |
(79 443) |
|
Total shareholders’ equity |
457 317 |
511 908 |
672 358 |
|
Non-current liabilities |
|||
|
Non-current borrowings |
502 937 |
572 365 |
670 409 |
|
Other non-current borrowings and debt |
7 379 |
7 426 |
10 461 |
|
Non-current corporate income tax liability |
0 |
0 |
0 |
|
Financial instruments |
0 |
0 |
0 |
|
Total non-current liabilities |
510 316 |
579 791 |
680 870 |
|
Current liabilities |
|||
|
Current borrowings |
107 982 |
249 802 |
157 574 |
|
Financial Instruments |
0 |
0 |
0 |
|
Other financial debts |
30 569 |
25 510 |
0 |
|
Liabilities held for sale |
211 101 |
0 |
0 |
|
Trade accounts payable |
7 614 |
6 158 |
6 438 |
|
Corporate income tax liability |
0 |
0 |
0 |
|
Other operating liabilities |
12 083 |
8 128 |
14 801 |
|
Prepaid revenue |
14 154 |
14 546 |
16 580 |
|
Total current liabilities |
383 504 |
304 144 |
195 393 |
|
Total liabilities |
893 820 |
883 936 |
876 263 |
|
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES |
1 351 137 |
1 395 844 |
1 548 621 |
IFRS Statement of Cash Flows (consolidated)
|
In thousands of euros |
|||
|
June 30, 2024 |
Dec 31, 2023 |
June 30, 2023 |
|
|
OPERATING ACTIVITIES |
|||
|
Consolidated net income |
(54 588) |
(239 854) |
(79 443) |
|
Elimination of items related to the valuation of buildings: |
|||
|
Fair value adjustments to investment property |
46 116 |
229 107 |
83 924 |
|
Annulation des dotations aux amortissement |
0 |
0 |
0 |
|
Indemnité perçue des locataires pour le remplacement des composants |
0 |
0 |
0 |
|
Elimination of other income/expense items with no cash impact: |
|||
|
Depreciation of property, plant and equipment (excluding investment property) |
0 |
3 |
3 |
|
Free share grants not vested at the reporting date |
0 |
0 |
0 |
|
Fair value of financial instruments (share subscription warrants, interest rate caps and swaps) |
966 |
21 115 |
593 |
|
Adjustments for loans at amortized cost |
937 |
2 207 |
1 119 |
|
Contingency and loss provisions |
0 |
0 |
0 |
|
Corporate income tax |
0 |
0 |
0 |
|
Penalty interest |
0 |
0 |
0 |
|
Cash flows from operations before tax and changes in working capital requirements |
– 6 569 |
12 578 |
6 196 |
|
Other changes in working capital requirements |
11 341 |
(2 688) |
8 511 |
|
Working capital adjustments to reflect changes in the scope of consolidation |
|||
|
Change in working capital requirements |
11 341 |
(2 688) |
8 511 |
|
Net cash flows from operating activities |
4 772 |
9 890 |
14 707 |
|
INVESTING ACTIVITIES |
|||
|
Acquisition of fixed assets |
(4 827) |
(29 486) |
(13 744) |
|
Net increase in amounts due to fixed asset suppliers |
(1 774) |
169 |
(1 525) |
|
Net cash flows used in investing activities |
(6 601) |
(29 317) |
(15 269) |
|
FINANCING ACTIVITIES |
|||
|
Capital increase |
0 |
0 |
0 |
|
Capital increase transaction costs |
0 |
0 |
0 |
|
Change in bank debt |
(6 087) |
(9 065) |
(1 586) |
|
Issue of financial instruments (share subscription warrants) |
0 |
0 |
0 |
|
Refinancing/financing transaction costs |
0 |
0 |
0 |
|
Net increase in liability in respect of refinancing |
0 |
0 |
0 |
|
Purchases of hedging instruments |
0 |
0 |
0 |
|
Net increase in current borrowings |
1 565 |
4 179 |
3 605 |
|
Net decrease in current borrowings |
0 |
0 |
0 |
|
Net increase in other non-current borrowings and debt |
5 012 |
(3 115) |
(81) |
|
Net decrease in other non-current borrowings and debt |
0 |
0 |
0 |
|
Purchases and sales of treasury shares |
(2) |
(96) |
(57) |
|
Dividends paid |
0 |
(1 433) |
(1 433) |
|
Net cash flows from financing activities |
488 |
(9 530) |
448 |
|
Change in cash and cash equivalents |
(1 341) |
(28 957) |
(115) |
|
Cash and cash equivalents at beginning of period |
11 719 |
15 167 |
15 167 |
|
Cash relating to assets held for sale |
– 523 |
– |
– |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
9 855 |
(13 790) |
15 053 |
|
There were no cash liabilities for any of the periods presented above. |
_______
1 The property portfolio is divided into buildings in use and assets undergoing repositioning. The delivery of Rives de Bercy at the end of 2023 brings the total number of buildings in use to four. As from January 1, 2024, only Office Kennedy and Passy Kennedy are vacant and undergoing redevelopment work.
2 The accounting impacts on the consolidated financial statements for the second half of 2024 are presented in the 2024 interim financial report (section entitled Subsequent events).
3 Excluding debt relating to the Passy Kennedy and Office Kennedy buildings ( €205 million) which was refinanced on July 9, 2024.
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For more information, please contact:
Investor relations
Charlotte de Laroche
[email protected] +33 1 42 25 76 38
Media relations
Aliénor Miens
[email protected] +33 6 64 32 81 75
Source: Vitura
