Cegereal, the French Core Office REIT - First-half 2017: Portfolio value strengthened by dynamic asset management

Paris, July 26, 2018 - 8:00 a.m.
First-half 2018 results - Regulated information

Portfolio value strengthened
by dynamic asset management 

• Key indicators

Rental income for the first half of 2018 remained stable at €26 million as a result of strong marketing activity, while the portfolio value rose by 2.7% to €1,174 million (excluding transfer duties) on the back of active asset management.

Cegereal's EPRA earnings came in at €14.7 million in first-half 2018, compared with €14.9 million in the same prior-year period.

• A premium portfolio with ever increasing appeal

Cegereal is highly committed to improving and optimizing its properties, and seeks to offer its tenants a superior quality of life that guarantees well-being at work.

In the first half of 2018, a major asset management project was carried out at the Europlaza building, with the aim of completing all the renovation work taking place in the property's upper floors, as well as in shared spaces such as the auditorium, gym and common area, before summer. The redesign complements the recently renovated garden and lobby, offering users outstanding amenities in a welcoming, modern atmosphere designed to the highest standards and full of natural light.

Despite strong competition in the La Défense business district, Europlaza's attractive features have won the approval of leading companies such as KPMG, which in recent months has leased additional space in the building's "garden floors".

In addition, a number of potential tenants have already expressed a keen interest in Europlaza's upper floors, the remaining vacant space in Cegereal's portfolio.

The occupancy rate of Cegereal's other assets stood at an average of 99.5%, resulting in an overall occupancy rate of 90.5% at June 30, 2018, compared with 91.4% at December 31, 2017.

• TOTAL SHARE RETURN (TSR) OVER THE LAST 12 MONTHS: 7.5%

The estimated value, excluding transfer duties, of Cegereal's real estate assets totaled €1,174 million at June 30, 2018, versus €1,144 million excluding transfer duties at June 30, 2017 and €1,169 million at December 31, 2017.

In first-half 2018, EPRA NNNAV, excluding transfer duties, amounted to €40.4 per share, versus €41.4 in first-half 2017, reflecting changes in fair value of properties (positive impact of €2.2 per share), dividend distributions (negative impact of €4.1 per share), consolidated earnings growth (positive impact of €1.0 per share) and movements in other line items (negative impact of €0.1 per share).

Total Share Return over the last 12 months came to 7.5%, with a distribution-to-NAV ratio of 9.9% and a slight 2.4% decline in NAV.

• AN OUTSTANDING ENVIRONMENTAL COMMITMENT

In first-half 2018, Cegereal continued with its ambitious environmentally friendly process rolled out several years ago as part of its "Upgreen your Business" program.

As a result of its CSR activities and its green capex policy, the Company has now achieved the highest environmental standards, with dual BREEAM In-Use International and NF HQE^TM Exploitation certification for its entire portfolio.

• Investor Calendar

-  November 15, 2018      Third-quarter 2018 revenue

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 €1,263 million at June 30, 2018 (replacement value).

From an environmental point of view, Cegereal's portfolio is fully certified with NF HQE^TM Exploitation and BREEAM In-Use International certification, and benefits from the "Green Star" rating in the international GRESB benchmark.

Cegereal is a REIT listed on Euronext Paris since 2006, in compartment B (ISIN: FR0010309096). The Company had a market capitalization of €511 million on July 24, 2018.

www.cegereal.com

Interim Financial Statements
(IFRS)
Six-month period ended June 30, 2018

Excerpts from the interim financial report
approved by the Board of Directors on July 25, 2018.

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, 2018

Consolidated Balance Sheet (IFRS) at June 30, 2018

Consolidated Statement of Cash Flows for the six months ended June 30, 2018

* There were no cash liabilities for any of the periods presented above.