SFL – Third-Quarter 2023 Financial Information

Regulatory News:

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#cloud.paris (Paris 2) - SFL Clément Guillaume

SFL (Paris:FLY):

Robust business performance

“SFL’s high-quality portfolio, 99% of which is located within Paris including 77% in the CBD, is a guarantee of resilience in a tight and highly selective market driven by demand, among companies and their employees, for centrally located, modern buildings meeting the highest environmental standards. The growth in our rental income and our robust operating ratios are proof of this.”
Dimitri Boulte, Chief Executive Officer of SFL

Rental income up by a sharp 13.1% to €171.6 million

Consolidated revenue by business segment (€000’s)
Rental income:		2023 (9 months)	2022 (9 months)	Change
	Paris CBD	129,235	116,743	+10.7%
	Paris Other	40,056	32,825	+22.0%
	Western Crescent	2,335	2,163	+7.9%
Total rental income		171,626	151,731	+13.1%

Consolidated rental income for the first nine months of 2023 totalled €171.6 million, up by a strong €19.9 million (up 13.1%) versus the year-earlier period:

• On a like-for-like basis (excluding all changes in the portfolio affecting period-on-period comparisons), rental income was €10.8 million higher (up 8.3%), reflecting:
  • application of rent escalation clauses (€6.4 million impact);
  • the gradual recovery in occupancy of the hotel located in the Edouard VII complex following the end of Covid-19 restrictions in February 2022 (€1.2 million impact);
  • the improved occupancy rate for the Group’s revenue-generating units, thanks to the signature of new leases in 2022 and 2023 (with long-standing tenants or new clients such as Promontoria, Atalante and Fabrique de Styles);
  • the effective rent uplifts negotiated for new leases, addenda or protocols on occupied space.

In particular, a significant increase in rental income was observed from the Edouard VII, #cloud.paris, Louvre Saint-Honoré, Washington Plaza and 103 Grenelle buildings.