SCBSM: Half-year results 2023-2024 // Resistance of the NAV much higher than the SiiC average – 03/29/2024 at 10:00 p.m.

Paris, March 29, 2024 – SCBSM, a real estate company listed on Euronext Paris, presents its audited accounts for the half-year ended December 31, 2023 approved by the Board of Directors on March 28, 2024. The half-year financial report is made available to the public and available on the company’s website.

Variation calculated compared to June 30, 2023, except for the variation in recurring profit

calculated in relation to December 31, 2022

In an unfavorable market context and in order to ensure a faithful image of the value of its real estate assets as close as possible to reality, SCBSM voluntarily had almost all of its buildings appraised as of December 31, 2023. This reveals a variation very measured, net of the valuation of the work, of only -2% during the past half-year (-€8.0 million).

This solid resistance, in an environment which is gradually tending to stabilize, is the result of the strategy of continuous investment in Parisian assets (90% of assets at the end of 2023) and above all of the creation of value resulting from improvement works undertaken.

After taking into account variations in scope, including the new tactical sale of assets in the provinces (-€6.6 million), and the acquisition of Parisian offices (+€10.3 million), the total value of the assets appears to €419.9 million as of December 31, 2023, a limited decline of 1% over 6 months.

A Revalued Net Asset per share that holds up better than comparables

SCBSM also demonstrates its resilience through the evolution of its Net Asset Value per share

[1]

. The latter shows a limited decline of 2% over 6 months (€17.71 compared to €18.02 as of June 30, 2023) and 5% over 12 months. At the same time, SiiCs listed in Paris saw their asset value decline by an average of 8% (more than 40% recorded a drop of more than 10%).

[2]

.

A steadily decreasing debt ratio

At the same time, SCBSM continues its regular debt reduction. As of December 31, 2023, net financial debt amounts to €169.2 million, down €4.2 million in 6 months. The debt ratio (LTV) thus stood at 37.85%, down 0.79 points during the half-year.

In January 2024, SCBSM repaid its entire bond issue issued in 2018 for €12.5 million. The Group has no significant short-term financial maturities and 53% of bank debt is over 5 years old. The average maturity is 4.1 years for an average financing cost of 3.24%, in line with the estimate made at the start of the year (3.29%).

Stability of recurring income

Thanks to the gradual re-letting of vacant space, some following work which allowed a revaluation of rents, half-yearly revenues increased by 6.9% (€9.0 million excluding re-invoiced charges) and operating income (before variation of the fair value of investment properties) increased by +7.7%, from €7.2 million to €7.8 million.

As anticipated, the rise in interest rates had an accounting impact on the fair value of assets (-€9.2 million) and on the cost of net financial debt (+€0.6 million).

The increase in rents offset the increase in the cost of net financial debt so that the recurring net profit is stable, at €4.9 million.

Outlook

The second half will be notably marked by the delivery of the Ponthieu site (Paris 8) which is undergoing a spectacular restructuring in an occupied environment (replacement of all the facades, extension of the rental areas and creation of several terraces). This policy allows occupants to benefit from much more quality buildings and will gradually make it possible to capture the potential increase in rents for the entire portfolio, currently estimated at nearly 10%.

[4]

.

As indicated at the start of the financial year, the group will continue to seize asset arbitrage opportunities outside Paris and will not refrain from the targeted search for Parisian real estate assets with potential, even if the significant drop in transactions in the sector suggests a rather calm year on the financial operations front.

About SCBSM:

SCBSM is a real estate company listed on Euronext in Paris (FR0006239109 – CBSM) since November 2006. The Group’s real estate assets amount to nearly €420 million, 90% of which 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:

[1]

Liquidation NAV

[2]

Calculation based on public information

[3]

Operating income before change in fair value of investment properties

(€7.8 million) – cost of net financial debt (€2.9 million)

[4]

Difference between market rental value and gross annual rents

© Copyright Actusnews Wire

Receive future company press releases free of charge by email by subscribing to www.actusnews.com