(Boursier.com) — Rental income amounted to 174.6 ME as of December 31, 2021 compared to 182.4 ME as of December 31, 2020, down 7.8 ME (-4.3%). Operating income (restated for income from disposals and valuation of assets) amounted to €134.2 million at December 31, 2021, compared to €152.6 million at December 31, 2020.
The valuation as of December 31, 2021 of the company’s assets according to an expert’s opinion increased by 5.7% on a like-for-like basis compared to the valuation of December 31, 2020. The change in value of investment properties generates income of 255 .2 ME, compared to 176.5 ME at December 31, 2020.
Net financial expenses amounted to €30.2 million as of December 31, 2021, compared to €34.3 million as of December 31, 2020, down €4.1 million. This drop comes for 2.5 ME from non-recurring charges and for 1.6 ME from recurring financial charges, favorably impacted by the reduction in the volume of debt and its average cost.
Taking these main elements into account, the net recurring income, EPRA Group share amounted to €92.4 million as of December 31, 2021 compared to €100.8 million as of December 31, 2020. Per share, they amount to €2.05 respectively. /a and 2.17 euros/a, a contained decline of 5.2%.
Consolidated net income, Group share at December 31, 2021 amounted to €292 million compared to €286.9 million at December 31, 2020
During the year, SFL maintained the measures put in place in 2020 to limit the impact of Covid-19 on its business and results as much as possible.
The recovery rate is very satisfactory over the year (between 96% and 98% for each of the quarters of 2021), the outstanding payments having been reviewed on a case-by-case basis to be provisioned if necessary . SFL granted very few new support measures during the year.
The property marketing activity, admittedly slowed down since the start of the health crisis, picked up again, particularly in the second half of the year, enabling SFL to conclude significant transactions.
The health crisis had little impact on the valuation of assets as of December 31, 2021. In particular, the valuation of SFL office assets demonstrates strong resilience despite the context of the health crisis, which makes it possible to post an overall increase , on a like-for-like basis, of 5.7% of the appraisal value of the portfolio over one year.
The Company’s net debt reached 1,792 ME as of December 31, 2021 compared to 1,890 ME as of December 31, 2020, i.e. a debt ratio of 22% of the appraisal value of the assets, a very conservative level guaranteeing strong room for maneuver at the investment. At the same date, the average cost of debt after hedging was 1.2% and the average maturity 4.6 years. The ICR (Interest Coverage Ratio) level is 4.9x in 2021.
As of December 31, 2021, SFL also benefited from €1,140 million in unused confirmed credit lines.
Net Asset Value
SFL’s consolidated portfolio is valued as of December 31, 2021 at €7,606 million in market value excluding duties, compared to €7,458 million as of December 31, 2020, up 5.7% at constant scope and 2% in gross consolidated data, taking into account of the two sales made during the financial year.
Buildings under development posted a very good performance given the smooth progress of construction sites and the commercial performance achieved. The other assets in operation increased more modestly, with retail space showing a further decline.
The average rental yield of the portfolio (EPRA “topped-up” NIY) is 2.9% as of December 31, 2021, stable compared to December 31, 2020.
As of December 31, 2021, the Company’s EPRA NTA Net Asset Value stood at 4,627 ME and the EPRA NDV at 4,375 ME.
Over one year, the EPRA NTA per share increased by 5.1% to 107.9 euros/share and the EPRA NDV per share by 3.3% to 102.1 euros/share, after distribution of a dividend of 2.10 euros/share in April 2021.
Also note the impact on the “Group share” value of SFL’s assets, which fell from €6,635 million (excluding duties) at December 31, 2020 to €6,537 million at December 31, 2021, i.e. a decrease of 1.5% in absolute value over the exercise.
The Board of Directors has decided to propose to the next General Meeting, which will be held on April 7, 2022, a dividend of 4.20 euros per share.