Cegereal, the French Core Office REIT - First-half 2017: Active rental activity with new leases signed for a total of 11,300 sq.m

Paris, July 21, 2017 - 8:00 a.m.
Regulated information

Cegereal
First-half 2017

ACTIVE RENTAL ACTIVITY WITH NEW LEASES SIGNED FOR A TOTAL OF 11,300 SQ.M

• Key figures

Rental income grew by 6.7% year-on-year mainly thanks to rents collected on the Hanami property.

Cegereal's IFRS in H1 net income came to €29.7 million for the six months ended June 30, 2017 (€32.6 million reported for the same period in 2016). The decrease mainly reflects a smaller rise in the value of the properties in our portfolio (up €14 million compared with €19.5 million).

Cegereal's EPRA earnings came to €14.9 million for the first half of the year. The rise of 7.8% is primarily due to higher rental income and savings achieved on financial expenses via refinancing, despite the increase in non-recurring transaction costs.

• A VIBRANT RENTAL BUSINESS

Cegereal enjoyed active rental activity in the first half of 2017, with new leases signed for a total of 11,300 sq.m.

Huawei increased its presence in the heart of TMT Valley, leasing an additional 6,500 sq.m in the Arcs de Seine complex for a minimum lease term of six years, to occupy a total of 11,700 sq.m. RT, a network of international news channels, also moved teams to the campus site, signing a firm nine-year lease for 1,800 sq.m.

GE Capital will vacate the space it occupies in the Europlaza building at the end of August, while at the same time My Money Bank will take up an additional 3,000 sq.m. As a result, a single 8,000 sq.m space will become available in 2018 on the top floors of a tower in La Défense, Europe's largest business district.

Cegereal's financial occupancy rate represented 92.6% including the second Huawei lease beginning on July 3^rd, 2017 compared with 87% at December 31, 2016.

• TOTAL SHARE RETURN (TSR) OVER THE LAST 12 MONTHS: up 8.7%

With the addition to the portfolio of a fourth property in late 2016, the estimated value of Cegereal's real estate assets at June 30, 2017 totaled €1,144 million excluding transfer duties (€1,230 million including transfer duties), versus €1,124 million excluding transfer duties (€1,209 million including transfer duties) at December 31, 2016.

EPRA NNNAV, excluding transfer duties, amounted to €41.4 per share, reflecting changes in fair value of properties (positive impact of €1.1 per share), dividend distributions (negative impact of €2.1 per share), consolidated earnings growth (positive impact of €1.2 per share) and movements in other line items (positive impact of €0.4 per share).

Total Share Return over the last 12 months came to 8.7%, with NAV growth of 3.5% and a distribution ratio of 5.2%.

• OUTLOOK

Given that discussions regarding most of its available space have reached an advanced stage, Cegereal will be focusing on acquisition opportunities and initiatives to innovate its Europlaza rental offering.

After twice receiving recognition for revolutionizing La Défense with Europlaza, the district's first totally overhauled property and its first "Garden Tower", Cegereal is planning a new transformative phase for Europlaza, where it aims to market the "first premium units available in a refurbished building" at La Défense. Europlaza will continue to reinvent its future with the creation of connected spaces that place digital technologies at the center of the user experience and encourage flexible, collaborative ways of working.

• INVESTOR CALENDAR

October 26, 2017: Third-quarter 2017 revenue

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About Cegereal

Created in 2006, Cegereal is a commercial property company that invests in prime office properties in Greater Paris. The portfolio's appraisal value is estimated at €1,209 million as of December 31, 2016 (replacement value).
To date, Cegereal is the first French property company with a fully certified portfolio from an environmental point of view (HQE and BREEAM "Very Good") and ranks as "Sector Leader" in the international benchmark GRESB.
Cegereal is a REIT listed on Euronext Paris since 2006, in compartment B (ISIN: FR0010309096). The Company had a market capitalization of €531 million on July 17, 2017.
www.cegereal.com.

Interim Financial Statements
(IFRS)
Six-month period ended June 30, 2017

Excerpts from the interim financial report
approved by the Board of Directors on July 20, 2017.

The Statutory Auditors have performed a review
of the interim financial statements.

Consolidated Statement of Comprehensive Income (IFRS) for the six months ended June 30, 2017

Consolidated Balance Sheet (IFRS) at June 30, 2017

Consolidated Statement of Cash Flows for the six months ended June 30, 2017