SOURCE: Société de la Tour Eiffel

March 11, 2010 02:44 ET

Societe de la Tour Eiffel : 2009 annual results : Strong progression in operating results and net cash flow

PARIS--(Marketwire - March 11, 2010) - SOCIETE DE LA TOUR EIFFEL

Strong progression in operating results and net cash flow

Key figures

The board of directors under the chairmanship of Mark INCH yesterday adopted the 2009 year end accounts.

+-------------------------+--+---------+---------+
|In M EUR                 |  |   2009  |   2008  |
+-------------------------+--+---------+---------+
|Rents                    |  |     75.7|     70.6|
+-------------------------+--+---------+---------+
|Net operating income     |  |     59.3|     50.6|
+-------------------------+--+---------+---------+
|Net recurring profit     |  |     34.9|     17.6|
+-------------------------+--+---------+---------+
|Fair value adjustments   |  |    -95.8|    -33.4|
|and sales results        |  |         |         |
+-------------------------+--+---------+---------+
|Group share net result   |  |    -60.1|    -16.7|
+-------------------------+--+---------+---------+
|Portfolio value net of   |  |  1 044.7|  1 095.5|
|transfer costs           |  |         |         |
+-------------------------+--+---------+---------+
|In ? / share*            |  |         |         |
+-------------------------+--+---------+---------+
|Net current cash flow    |  |      6.1|      3.6|
+-------------------------+--+---------+---------+
|NAV net of transfer costs|  |     70.0|     88.5|
+-------------------------+--+---------+---------+
|Distribution             |  |      4**|        5|
+-------------------------+--+---------+---------+

* number of shares as at 31st December 2009: 5 433 036 and as at 31st December 2008 : 5 193 003

** 2EUR distributed in October 2009, together with a final distribution of 2EUR per share being agreed at the shareholders meeting on 20th May 2010.

Satisfactory operating performance, targets achieved

Despite the morose trading conditions, Societe de la Tour Eiffel was able to take advantage of its defensive portfolio (moderate secure rents, long term leases on average until late 2015) including the leasing of some 20 000 m(2) of development deliveries, pragmatic negotiation of major standing leases and better than expected rental performance of the business parks (Parcs Eiffel).

Outcome of solid operational performance:

- Rents increased by 7.2 % to 75.7 M EUR in 2009 (+ 5.7 % on a like for like basis)

- The physical and financial occupancy rates at year end increased respectively to 89.5 % and 91.1 % (up from 88.2 % and 88.6 % end 2008), reflecting the leasing success of new developments in the face of the downturn.

Portfolio rejuvenation continues and N.A.V. reduction less marked in

second half

Over 30 000 m(2) of pre-let development deliveries during 2009 further enhanced the ratio of modern space in the portfolio (670 000 m(2), 82% in value being offices) which now represents 60% with 25% carrying a green label (HQE qualified).

Societe de la Tour Eiffel's portfolio of manageable, liquid assets is valued at

1,044.7 M EUR in the consolidated accounts compared to 1,095.5 M EUR , end 2008. The value reduction is attributable to the core portfolio (-7.7 % principally during first half) and disposals in 2009 (45 M EUR ), offset by value uplift on certain assets.

The net N.A.V. amounts to 70 EUR per share as at 31st December 2009, compared to

72.5 EUR at 30th June and 88.5 EUR end 2008, reflecting a reduction in property values (-16.5 EUR ) hedging instruments (-1.1 EUR ), and the dilution occasioned by the 5 % of new shares created in the context of the final dividend payment of 2008 which was in cash and shares.

Rigorous financial control

Confronted by the credit crush, the company carefully monitored its debt profile in 2009, off setting increased draw downs necessitated by its development program with reimbursements stemming from disposals.

The average cost of debt reduced significantly from 5.2 % to 3.9 %, reflecting the element of capped, floating rates applicable to 45% of the debt.

At 31st December 2009, the company had access to 102.6 M EUR of available financial resources made up of 77.8 M EUR unused credit lines and 24.8 M EUR cash.

Distribution 2009

Following an interim payment of 2 EUR per share voted at the Ordinary General Meeting of

15th October 2009, the board will propose to the Annual General Meeting on 20th May next,

a final payment of 2 EUR per share, payable exclusively in cash, from the share premium, on 28th May 2010.

Outlook

Operational objectives:

- Completion and marketing of remaining developments (Velizy and Chartres),

- Continued stabilisation of core revenues,

- Growth through development of land reserves (Massy, La Poste, Parcs Eiffel).

Selective disposals will be continued as market conditions permit with limited impact on the core portfolio.

Regular distributions to shareholders remains a long term key objective for the company in line with the progression of the recurring cash flow per share.

The company is currently refinancing a corporate credit line which matures 31st March 2010 and studying closely future hedging requirements in the light of prevailing and anticipated interest rates.

Further dates:

- 20th May 2010: General Meeting , Cercle National des Armees,

8, Place Saint Augustin, 75008 Paris

- 28th May 2010: Distribution of 2 EUR per share (subject to General Meeting approval).

Audit procedures on consolidated accounts have been performed and the statutory auditors report is pending.

+-------------------------+
|About Societe de la Tour |
|Eiffel                   |
+-------------------------+
|A "SIIC" quoted on the   |
|Euronext Paris Exchange, |
|the company pursues a    |
|strategy focused on the  |
|ownership and the        |
|development of quality   |
|office and business space|
|capable of attracting a  |
|wide range of tenants in |
|both established and     |
|emerging locations. The  |
|company's portfolio      |
|stands at 1 billion Euros|
|of assets spread evenly  |
|between the Paris area   |
|and the regions.         |
+-------------------------+
|Societe de la Tour Eiffel|
|is listed on the NYSE    |
|Euronext Paris           |
|(compartment B) - Code   |
|ISIN : 0000036816 -      |
|Reuters : EIFF.PA -      |
|Bloomberg : EIFF.FP -    |
|Indices member SBF 250,  |
|CAC Small 90, GPR 250,   |
|IEIF Foncieres, IEIF     |
|Immobilier France        |
+-------------------------+
+-------------------------+

Contact

Jerome DESCAMPS,

Deputy Managing Director (Finance)

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

jerome.descamps@societetoureiffel.com

Web site: www.societetoureiffel.com

Press Contact

Jean-Philippe MOCCI, Capmot

Tel.: + 33 (0)1 71 16 19 13 / + 33 (0)6 71 91 18 83

jpmocci@capmot.com

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