EIFF Tour Eiffel

Société de la Tour Eiffel's consolidated annual turnover amounted to € 74.4m as at 31 December 2013, of which € 61.5m was represented by rents and the remainder, reinvoiced service charges. The portfolio value stood at € 701m compared to € 915m as at 31 December 2012 following the implementation of planned asset disposal program as part of the strategy aimed at refocusing activity on Parisian offices, outside of the CBD.

1) Turnover progression

Two factors played on rental evolution compared to 2012:

1. Rental growth on a like-for-like basis accounted for +€ 1.9m (+3.2%):

1. a positive net balance in relation to lettings on the existing portfolio (+€ 0.2m), a reflection of the quality of the asset management in a difficult market;
2. the positive impact of indexation (+€ 1.7m). 

1. Overall reduction in the portfolio had an impact of -€ 9.9m:

1. a rental reduction of -€ 11.3m resulting from the property disposal program. These disposals were earmarked as part of the strategic plan refocusing on Parisian offices;  
2. a rental uplift of +€ 1.4m generated by the delivery of new developments, mainly the Montrouge property during the first semester 2013. 

                             Consolidated turnover

(in €m)	2013	2012	Variation	LFL(1) variation
Annual total(2)	74.0	82.4	-10.2%	ns
Of which rents	61.5	69.5	-11.5 %	+3.2%

1. Variation on a like-for-like basis : i.e. ignoring variations in the extent of the portfolio  
2. n.b. 4th quarter 2013 turnover: € 17.4m 

The satisfying performance in the EPRA-defined financial occupancy rate, which improved from 91.6% end 2012 to 93.7% end 2013, demonstrates the pertinence of the Company's revised strategy, the Parisian core office properties enjoying a superior occupancy compared to the offloaded assets.  

As at 31 December 2013, annual secure rents amounted to approximately € 55m, being estimated as 6.7% above market rental value.

2) Portfolio valuation

The IFRS portfolio value, net of transfer costs, amounts to € 701m, a 0.7% reduction on a like-for-like basis relative to 30 June 2013. In this context of transformation, the portfolio homogeneity is much improved, the core element having increased from 49% to 69% year on year. Disposals over the last two years amounted to € 190m in 2013 and € 70m in 2012.

The portfolio value reduction in 2013 results for 95% from targeted non-strategic asset disposals at, or close to, their NAV together with the independent valuations of the residual non-core assets.

On the basis of this IFRS portfolio valuation, the Group's LTV is estimated to be approximately 47% as at 31 December 2013.

3) Other highlights

The Group renewed for a 9-year fixed term a lease to CS Communications for 2/3rds of the Plessis Robinson property at market rent. This outcome is a confidence booster for other up and coming renegotiations over the next two years.  

With regards to development, planning permission has been obtained at Massy for the construction of 34 000 m² of offices.

Finally, with respect to the all-cash voluntary public tender offer for the Company filed by SMABTP on 29 January 2014, the Board will convene on 20 February next in order to issue an opinion on the offer which will be made public.

Agenda:        20 February 2014 - Board's opinion as to the SMABTP tender offer         19 March 2014 - Release of 2013 consolidated accounts (post market close)         20 March 2014 - Analyst French presentation (2013 annual results)    

About Societe de la Tour Eiffel

A listed real estate investment company (SIIC) on NYSE Euronext Paris, the company pursues a strategy focused on the ownership and the development of quality offices mainly in Paris and its region capable of attracting a wide range of tenants The c ompany's portfolio stood at 701 million Euros of assets as at 31 December 2013. Societe de la Tour Eiffel is listed on NYSE Euronext Paris (compartment B) - ISIN code: 0000036816 - Reuters: TEIF.PA - Bloomberg EIFF.F. Indexes: GIEIF Foncières, IEIF Immobilier France.

Contact Presse	www.societetoureiffel.com						Communication
Jean-Philippe MOCCI						Philippe de TREMIOLLES
Capmot					Chief Financial Officer
Tel : +33 (0)1 71 16 19 13/+33 (0)6 71 91 18 83				Tel : +33 (0)1 53 43 07 06
jpmocci@capmot.com				p.detremiolles@stoureiffel.com

Société de la Tour Eiffel : Turnover 2013 http://hugin.info/143560/R/1761406/596342.pdf

HUG#1761406