SCBSM: Flawless course before facing an uncertain environment / 2021-2022 annual results – 10/31/2022 at 07:00

SCBSM: Flawless course before facing an uncertain environment

Annual results 2021-2022

Paris, October 31, 2022 – SCBSM, a real estate company listed on Euronext Paris, presents its financial statements for the year ended June 30, 2022 approved on October 19, 2022 by the Board of Directors. The Universal Registration Document is made available to the public today and is available on the company’s website.

As announced at the end of September, the financial year was marked by intense activity which reinforces the sustainable attractiveness of the company, both in terms of assets and financial structure.

A real estate portfolio of €441 million made up of 84% Parisian assets

During the 2021-2022 financial year, the value of the portfolio increased by €66 million to reach €441 million at the end of June 2022. This increase is the result of the appreciation in the value of the portfolio (+21.7 million €), net of the impact of disposals (-€8 million), mainly the vacant business building in Buc (Yvelines), and the acquisition of a new office building of nearly 2,400 m² located Avenue de l’Opera (Paris 1

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), one of the most emblematic arteries of Paris.

The Parisian portfolio now represents 84% ​​of the total value of assets (+3 points in one year) and constitutes a major asset in the face of the current crises. In 10 years, the total value of real estate assets has thus been multiplied by nearly 2 and that of Parisian assets by nearly 6 while reducing the LTV by 10 points.

An early redemption of two-thirds of the ORNANE

From a financial standpoint, SCBSM proceeded to the early redemption of nearly two-thirds of the ORNANE issued in 2017, i.e. €13.2 million, of which €10.2 million before the end of the financial year (50% in cash and 50% in SCBSM treasury shares) and €3 million after the end of the financial year (53% in cash and 47% in new shares). Thus, the company limits its cash outflow and the dilution of its shareholders, by using part of its treasury.

This strategic operation significantly improves the group’s financial structure (increase in equity

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, reduction in financial debt and financial expenses, improvement in LTV) and its stock market profile. Following this operation, SCBSM’s free float fell from 41.45% on June 30, 2021 to 47.25% and the company in turn welcomed new institutional investors.

As of June 30, 2022, the LTV ratio stood at 42.4% compared to 40.3% at the end of June 2021. This LTV ratio is calculated on the assumption of a cash redemption of the balance of the ORNANE. Taking into account the terms of the ORNANE redemption in July 2022, the restated LTV amounts to 42.1%. The company thus succeeded in making a new structuring acquisition while controlling its debt.

Taking into account the hedging contracts on the variable rate debt and the fixed rate debt, the debt hedged against the interest rate risk amounts to 81% of the bank debt as of June 30, 2022, including 46% at fixed rate. The sensitivity of the amount of financial charges to changes in interest rates is thus limited. The impact of the current rise in interest rates (Euribor 3 months at 1.607% on October 27, 2022 against -0.176% on

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July 2021) is estimated at approximately €1.3 million on the cost of gross financial debt. It would be limited to €1.7 million with a 3-month Euribor equal to 2%, excluding the favorable impact of the increased remuneration of cash.

Net profit and recurring result at a record level

SCBSM generated net profit (€33.8 million) and recurring profit (€8.8 million) at a record level as of June 30, 2022. This performance is above all the result of the improvement in operating profit before change in fair value (€14.1m vs. €12.4m) and the fall in the cost of net financial debt (-€5.4m vs. -€5.7m). SCBSM also benefited from the appreciation of €17.5 million in the value of its assets.

A Net Asset Value of €18.68 per share

The liquidation Net Asset Value (NAA) per share amounts to €18.68 per share at June 30, 2022 compared to €16.99 per share at the end of June 2021. Assuming a conversion of the balance of the ORNANE in shares, the liquidation NAV would be €17.40 (€15.28 a year earlier).

The NAV thus continues its continuous upward cycle initiated in 2009 despite the mechanical impact of the partial conversion of the ORNANE on the NAV per share

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.

Outlook

The Paris portfolio is a major asset for SCBSM, the quality of which continues to improve through the effect of its work, even if the company remains vigilant about the impact of the economic slowdown and the rise in interest rates.

Beyond the quality and attractiveness of its Parisian assets, SCBSM has a sound financial structure (gross cash of €40 million and no major repayment deadline before 2026) and liquidity reserves thanks to peripheral assets. Thus, the Group is continuing its search for real estate assets in Paris and is continuing to study asset arbitrage opportunities in Ile-de-France and in the provinces.

About SCBSM:

SCBSM has been listed on Euronext in Paris (FR0006239109 – CBSM) since November 2006. The Group’s real estate assets amount to €441 million, of which approximately 84% is located in Paris CBD. SCBSM has SIIC status and is part of the IEIF SIIC France index. More information on www.scbsm.fr.

ACTUS finance & communication contacts:

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Treasury shares that are not accounted for under IFRS are thus once again

valued on the balance sheet

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Operating profit before change in the fair value of investment properties

– Cost of net financial debt

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Treasury shares are not taken into account in the NAV calculation

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