from PATRIMOINE ET COMMERCE (EPA:PAT)
PATRIMOINE ET COMMERCE: 2023 ANNUAL RESULTS
PATRIMOINE ET COMMERCE
PRESS RELEASE 2023 ANNUAL RESULTS
Paris - February 21, 2024
At its meeting on February 20, 2024, the Patrimoine & Commerce Supervisory Board reviewed the Company’s operations and approved the 2023 financial statements (1), prepared by Management.
Key figures
Eric Duval, Managing Director and Founder of Patrimoine & Commerce declared: « This year again, the Company's results are solid, despite the persistence of a complex economic context marked by a general decline in the entire real estate investment sector (including commercial real estate). Less affected than other commercial real estate segments, the retail park remains a safe haven market with solid fundamentals (low vacancy rate, affordable rents). We are continuing our objective of proactive portfolio management with the sale of non-strategic assets, the strengthening of the rental mix around growing verticals (discount, catering, leisure, food), the development and valorization of our existing assets. We remain attentive to opportunities to acquire relevant retail properties. In line with our profit distribution policy, and driven by our confidence in pursuing sustainable growth, we will propose the distribution of a dividend of € 1.35 per share, up +3.8% compared to last year. »
Operational performance Patrimoine & Commerce had a sustained leasing activity and signed 58 leases (of which 26 renewals). The financial occupancy rate is increasing and stands at 94.7% (5) on the portfolio. The collection rate on rents and service charges invoiced in 2023 stands at 98%.
FFO increasing by +4.8% In 2023, Patrimoine & Commerce continued to deliver a solid financial performance. For the fiscal year ended December 31, 2023, Patrimoine & Commerce reported consolidated gross rental income of € 50.5m, against € 47.3m for the fiscal year ended December 31, 2022:
The increase of gross rental income is mainly explained by (i) the effect of the acquisitions and disposals made in 2022 and 2023 (ii) the delivery of restructuring operations on a property in Martinique in 2022 as well as the delivery of the restructuring works in La Ville-du-Bois in 2023 and (iii) the like-for-like increase, driven by contractual indexation (4.2% in average on the period) and the decrease in the amortization of rent free periods.
Net rental income stands at 92% of gross rental income, mainly composed of unrecovered rental expenses and provisions for credit losses:
Operating expenses and other revenues remained under control at € 5.1m (vs. € 5.0m in 2022).
Net cost of debt amounted to € 10.8m in 2023, an increase of +13,3% compared to last year, driven by the tightening of financing conditions. The Company continues to benefit from the hedging of its debt portfolio, with 76% of the debt either at fixed rate or at hedged variable rate. The average interest rate on debt is 2.76% for the 12 months ending December 31, 2023 (versus 2.07% in 2022).
Recurring net result (FFO) amounted to € 30.7m in 2023, compared to € 29.3m in 2022:
Including the fair value adjustment of the portfolio (+€ 0.2m), the share of the result of companies accounted for using the equity method (-€ 1.1m), other non-recurring revenues and charges (-€ 0.5m), and the contribution of hedging strategies on debt (-€ 1.2m), net profit amounted to € 28.2m for the fiscal year 2023 and € 29.0m in group share.
Decrease of the LTV ratio and increase of the NAV per share at € 29.1 (+2.2%) The Group consolidated net debt of € 369.2m as of December 31, 2023, implies a Loan-to-Value ratio of 43.9%, leaving a significant investment capacity compared to the target of 50% set by Patrimoine & Commerce.
Net asset value per share amounted to € 29.12 (€ 439.2m) in 2023, an increase of +2.2% versus 2022.
Development and optimization of the portfolio As of December 31, 2023, the portfolio valuation (excluding transfer taxes and including properties accounted for using the equity method), reached € 858.3m, increasing by +2.0% compared to 2022. The capitalization rate of the properties in operation stands at 7.3%.
Over 2023, Patrimoine & Commerce continued its development through the acquisition, in April 2023, of a retail park of 7 500 sqm in Saint-Parres-aux-Tertres (Grand Est). The Company also continued its investments through the delivery of restructuring works in La Ville-du-Bois, a new building in Wittenheim as well as the delivery of two commercial units in Lexy. Those investments totalled € 19.4m in 2023.
Patrimoine & Commerce also completed the disposal of several assets in Vandoeuvre (Grand Est) and Salon-de-Provence (Provence-Alpes-Côte d'Azur), and an building plot in Lempdes (Auvergne- Rhône-Alpes), for a total consideration of € 2.6m, in line with external appraisers’ valuations.
Dividend payment of € 1.35 per share The distribution of a dividend |