1 half 2006 results

Texte intégral

(1)Société Anonyme (PLC) with capital of EUR 30,275,010 – Head office: 2 rue de Bassano, 75116, Paris – registered with the Paris Trade and Companies Registry under the number 73562020500121. Paris, 27 October 2006. 1st half 2006 results balance. sheet. figures. 30/06/06 (Fair value). 31/12/05 (Amortised cost). Buildings Clients and others Cash and cash equivalents Shareholder capital Bank loans Trade creditors and other debts. 401.01 14.36 78.89 390.84 103.00 10.79. 303.47 31.25 74.97 274.76 123.48 14.60. Consolidated income statement figures (€m) Rental income Net revenue from buildings Depreciation charges. 30/06/06. 31/12/05. 30/06/05. 7.55 6.94. 23.34 20.60 (2.85). 12.05 10.87 (5.28). 7.14 (0.31). 11.57 4.26. 2.34 6.15. 6.83. 15.83. 8.49. (0.95) (1.90) 5.88. (11.41) (10.57) 4.42. (6.06) (4.52) 2.42. 5.87. 9.30. 7.08. Operating income before divestments Income from sale of buildings Operating income Financial result o/w interest on borrowings Pre-tax profit Consolidated attributable net profit. EARNINGS AND ASSETS During the first half of 2006, Acanthe Développement continued to improve its operating ratios. In line with forecasts, rental income contracted as a result of the refocusing of the group's assets on top quality offices in the central Paris business district, an evolution that is now almost complete. Following the increase in the occupancy rate from 68% in 2005 to 75% in H1 2006, there has been a substantial improvement in the rental charges rebilling rate. Apart from the sharp reduction in general overheads in absolute terms (EUR 1.38m vs EUR 4.38m over full-year 2005) and an improvement of the overheads / net rents ratio to 18%, the accounts show a very sharp fall in financial costs due to the substantial reduction in debt (EUR 102.31m of bank debt at 30 June 2006) and the good net cash position. 1/3. WorldReginfo - ee7e9286-9e85-433c-af37-4dcaa7d907b7. IFRS Consolidated (€m).

(2) The Acanthe Développement Group practising a highly selective approach to its investments consisting of acquiring and keeping only the buildings with the best value potential or the highest profitability, has decided to adopt IAS 40 in order to value its investment buildings at fair value as of 1 January 2006. The objective of this option is to allow our consolidated accounts to reflect market fluctuations of the values of our "investment buildings" and thereby make our NAV figure truly reflective of market values. In accordance with the new standard – retroactive to the start of the year – valuation fluctuations are booked directly to the income statement in line with IAS 40. For the first half of 2006, the impact is EUR 1.75m. As at 30 June 2006, shareholder capital at fair value amounted to EUR 390.84m, i.e. EUR 411.09m before stripping out own-shares, compares with total assets of EUR 508.60m. Finally, with respect to our disputed fiscal claims, the group has decided not to make any provision since the validity of these claims is refuted by the group which is currently being advised on the matter by CMS Bureau Francis Lefebvre. A REFOCUSED PORTFOLIO During H1 2006 the group sold 12,947 m² for a total of EUR 9.6m, and a further 13,194 m² are subject to sale agreements worth EUR 16m. In addition, 3 buildings located in Paris and Guadeloupe, with a total surface area of 6,700 m², are being prepared for lot-by-lot sales due to be completed during 2007. Finally, in October 2006, the group acquired a top quality luxury office building of 3,345 m² located in the Brussels business district and generating an annual rental income of EUR 476,000. Taking these operations into account, along with the sale of various property assets for EUR 3m, Acanthe Développement's property portfolio now contains 29 buildings with a total surface area of 78,520 m²: ¾ Offices represent 47% (36,890 m²), hotels represent 38.8% (30,470 m²) and commercial premises represent 14.2% (11,160 m²),. ¾ In value terms, the geographical distribution of these assets is as follows: Paris central. From this portfolio, including the leases signed on 15 October 2006, the annual rental income from buildings amounts to EUR 16.5m to which we can add the potential rents notably from the building at 2-4 rue de Lisbonne (2,400 m², of which 700 m² is already rented), to the value of EUR 2m. A SOLID FINANCIAL STRUCTURE The group has continued the consolidation of its financial structure by strengthening its shareholder capital and continuing to reduce its debt. Following the different capital increase resulting from the exercise of equity warrants and the choice of 12.5% of shareholders to opt for reception of the 2005 dividend in the form of Acanthe Développement shares, the share capital of Acanthe Développement has been raised to EUR 30,275,010, represented by 80,126,105 shares.. 2/3. WorldReginfo - ee7e9286-9e85-433c-af37-4dcaa7d907b7. business district (81.2%), Paris other areas (2.4%), Paris suburbs (5.7%), rest of France (9.0%) and Brussels (1.7%)..

(3) EXTRAORDINARY DIVIDEND In line with our announcement in April 2006, the group has initiated a policy of periodical dividend payouts. Thus, dividend of EUR 0.28 per share was distributed in August 2006, and, at the next Ordinary General Meeting of shareholders (that, exceptionally, will be held on 14 November 2006), Acanthe Développement will propose to shareholders an exceptional dividend of EUR 0.30 per share, to be drawn from the issue premium account. A VERY UNDERVALUED SHARE With a NAV p/share of EUR 4.87 and of EUR 4.43 after dilution (before the exceptional dividend planned for November 2006), the Acanthe Développement share has strong upside potential. On the basis of its current price of EUR 3.20, the discount to NAV p/share stands at 34.3%, and at 28% compared to its NAV per share after dilution.. OUTLOOK Acanthe Développement should benefit fully from the implementation of its new strategy aand its new stock market profile. The group - that has almost completed the refocusing of its portfolio in accordance with its stated objectives, and having adopted fair value accounting standards - now has a financial structure that will allow it to maximise the distribution of dividends in line with its commitments.. Acanthe Développement, a property company listed on the Euronext Paris (Eurolist B segment) stock exchange, is a constituent of the IEIF–Foncières and EPRA–Europe indices. The Company’s Chairman is Alain Duménil. ISIN Code: FR0000064602 For further information about our group, please visit: www.acanthedeveloppement.com Contacts: Solange Stricker & Associés Geneviève de Négri / Jérôme Goaër. Tel.: 01 40 71 07 03 / 32 95. 3/3. WorldReginfo - ee7e9286-9e85-433c-af37-4dcaa7d907b7. The group should benefit from favourable conditions in the office segment of the real estate market, and this should enable the company to achieve an occupancy rate close to 100%, and an increase in its rental income during 2007 in view of the upward trend in rental prices and their indexation to the construction index which has significantly increased, particularly over the third quarter of 2006..

(4)