SFL – First-Quarter 2021 Financial Information

Regulatory News:

SFL (Paris:FLY):

Consolidated revenue by business segment (€000's)

 

Q1 21

Q1 20

Rental income

44,172

46,638

o/w

Paris Central Business District

36,159

39,209

 

Paris Other

7,479

6,832

 

Western Crescent

534

598

Other revenue

0

0

Total consolidated revenue

44,172

46,638

First-quarter 2021 consolidated rental income amounted to €44.2 million, down by €2.5 million or 5.3% from the €46.6 million reported for the same period in 2020.

- On a like-for-like basis (excluding all changes in the portfolio affecting period-on-period comparisons), rental income was €0.8 million higher, an increase of 1.9%.

- Rental income from units being redeveloped was down by €2.3 million, mainly due to the renovation of several floors in the Cézanne Saint-Honoré and Washington Plaza buildings that were vacated in late 2020.

- The early-2021 sale of the 112 Wagram and 9 Percier buildings led to a €1.0 million contraction in revenue for the quarter compared with the year-earlier period.

In a rental market that remained muted, no material new leases were signed by SFL during the quarter.

Nonetheless, the physical occupancy rate for buildings in use remained high, at 93.5% as of 31 March 2021 (versus 93.7% as of 31 December 2020), while the EPRA vacancy rate was 6.2%.

The rent recovery rate for the quarter was once again very satisfactory, at 98%.

With the Covid‑19 crisis not yet over, SFL pursued and in some cases strengthened the measures taken to ensure that all of its buildings remained open and available for use by tenants.

The sale of the 112 Wagram and 9 Percier buildings was completed in January and February 2021 respectively, marking the end of a process launched in late 2020 as part of SFL’s asset rotation policy. 112 Wagram was sold for €120.5 million and 9 Percier for €143.5 million (net sale price) (see press releases dated 13 January and 17 February 2021).

No properties were acquired during the first quarter of 2021.

As a result of the above transactions, consolidated net debt was reduced significantly from €1,890 million at 31 December 2020 to €1,636 million at 31 March 2021. The loan-to-value ratio was 21.3% based on the portfolio’s appraisal value at 31 December 2020 (adjusted for these divestments).

The Company’s liquidity position at 31 March 2021 was excellent, with €1,040 million in undrawn confirmed 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 €7.5 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

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