SOURCE: Société de la Tour Eiffel

February 13, 2007 09:37 ET

Société de la Tour Eiffel : 2006 Annual Results

PARIS -- (MARKET WIRE) -- February 13, 2007 -- The Société de la Tour Eiffel exceeds one billion euros of assets and confirms its dividend policy

The Board of Directors convened on 12th February 2007 under the chairmanship of Mark Inch to consider the 2006 consolidated results.

Consolidated results

|     In EUR Million     |  2006 |  2005 |  Variation %|
|  Rental income         |  55,0 |   27,2|        +102%|
|  Net operating income  |  129,5|   21,1|        +514%|
|  Net result            |  117,9|   15,8|        +646%|
|  Cash flow             |   24,7|   14,0|         +76%|
|  Share capital         |  410,8|  305,3|         +35%|
|  Portfolio value (net) |  867,0|  654,0|         +33%|
|  NAV (EUR per share)   |   83,5|   63,8|         +31%|
The corporate profit for the year amounted to EUR 36, 4 million (against EUR 9,7 million in 2005).

2006: Maintain selective investment policy

Following the twofold increase in its portfolio at year end 2005, Société de la Tour Eiffel pursued its investment policy in 2006, acquiring a further EUR 210 million in assets, mainly through forward purchases of developments, to reach an overall portfolio value of EUR 960 million (of which EUR 855 million is up and let) by year end.

In a dynamic and very competitive real estate market, Société de la Tour Eiffel adjusted its investment criteria in order to maintain the high yield of its portfolio.

Property portfolio (+33%) and NAV (+31%)

Société de la Tour Eiffel's portfolio as at 31st December 2006 was valued at EUR 867 million net of disposal costs, made up as follows:

- 61% offices located in the centre of Paris and in new up-and-coming office locations close to Paris as well as in major regional cities,

- 26% Business space and Parc Clubs located in the Paris area and on the periphery of major regional centres,

- 9% warehouses located mainly in the regions,

- 4% of Nursing homes.

The debt equity ratio of 52% is below the company's target of 65%, leaving financial capacity for further growth and development.

NAV was EUR 83,5 per share as at 31/12/2006 up from EUR 63,8 per share

post rights issue at year end 2005.


Following an interim dividend of EUR 2,50 per share distributed in September 2006, the Board will propose at the Annual General Meeting on March 29th, a final dividend of EUR 2,50 per share, thus making a total dividend of EUR 5 per share for 2006.

2007 Projections

Société de la Tour Eiffel entered into exclusive negotiations with a view to purchasing Parcoval, a company that owns 6 Business parks (80.000 sqm built) and a land bank of some 30.000 sqm with development potential, at a cost of EUR 110 million. This investment should generate an annual rental income in excess EUR 8 million, and should be complementary to Locafimo's existing holdings in the Parc Clubs of Aix, Lille, Montpellier, Nantes and Orsay with an additional Parc in Bordeaux. The company should now be close to its declared objective of achieving 100% ownership in most of its Parc Clubs.

Following this acquisition, Société de la Tour Eiffel

has assets in excess of one billion of EUR uros.


Following the sale of 10 secondary properties for EUR 45 million in 2006, the company is assessing the opportunity for further disposals of non-strategic buildings.

Given the company's available financial resources, it will be able to pursue its active investment policy through 2007, whilst also initiating the development of its overall 160.000sqm land bank.

This policy will ensure that in a highly competitive investment market the company can maintain its asset (and rental income) growth, with anticipated yield on cost of 9% to 10%.

Furthermore, by adopting a measured approach to the development of its land-bank, Société de la Tour Eiffel will be able to adapt the buildings to tenant demand and market opportunities, in particular with regard to environmental aspects (HQE) and rent level considerations.

Thanks to its judicious investment policy, Société de la Tour Eiffel attains it declared objective of ensuring for its shareholders attractive returns, by implementing a predictable dividend policy through active asset management of its portfolio.

About Société de la Tour Eiffel

Société d'Investissements Immobiliers Cotée (SIIC) quoted on Euronext Paris, its strategy is to focus on investing in areas with strong potential, and developing new buildings leased to major corporations. Its portfolio now exceeds one billion euros, with assets spread nationwide. The share price increased by more than 80% in 2006, giving it a market cap in excess of EUR 700 million.

Contact for financial information

Jérôme DESCAMPS, Deputy Managing Director (Finance)

Tel: +33 (0)1 53 43 07 06

Press contact

Jean-Philippe Mocci, Capmot

Tel: +33 (0)1 77 70 05 48 / (0)6 71 91 18 83

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