PATRIMOINE ET COMMERCE: 2022 ANNUAL RESULTS
PATRIMOINE ET COMMERCE
PRESS RELEASE 2022 ANNUAL RESULTS
Paris - February 22, 2023
At its meeting on February 21, 2023, the Patrimoine & Commerce Supervisory Board reviewed the Company’s operations and approved the 2022 financial statements (1), prepared by Management.
Key figures
Eric Duval, Managing Director and Founder of Patrimoine & Commerce declared: « The solid results for fiscal year 2022, both in terms of operational and financial performance, confirm the attractiveness of the Group’s business model as the leader of low-cost retail park market players in France. With over € 50m in acquisitions and € 40m in disposals during the year, we demonstrated our capacity to carry out targeted acquisitions but also the good liquidity of our assets in line with appraisers values. Supported by a robust financial structure, and our confidence in delivering a sustainable growth, we will propose a distribution of a € 1.30 dividend per share, up by +4.0% compared to last year. »
Operational performance In an uncertain economic context, characterized by inflation and the rise in interest rates, Patrimoine & Commerce saw its gross rental income increase by +8.3%, and maintained a very dynamic asset rotation strategy, with the acquisition of seven retail properties, and the disposal of eight assets during 2022. The retail park model proved its performance and alignment with current trends in consumption. Besides core strengths of the model (human-sized stores, easy car parking, limited service charges, adapted rents), retail parks stand out with an activity not very dependent on tourism, focused on local consumption, open spaces and high attractivity for discount stores. Patrimoine & Commerce had a sustained leasing activity and signed 55 leases (of which 21 renewals). The financial occupancy rate is increasing and stands at 94.3% (5) on the portfolio. The collection rate on rents and service charges invoiced in 2022 stands at 98.1%.
FFO increasing by +9.6% In 2022, Patrimoine & Commerce continued to deliver a solid financial performance. For the fiscal year ended December 31, 2022, Patrimoine & Commerce reported consolidated gross rental income of € 47.3m, against € 43.7m for the fiscal year ended December 31, 2021:
The increase of gross rental income is mainly explained by (i) the effect of the acquisitions and disposals made in 2021 and 2022 (ii) the delivery of restructuring operations on a property in Martinique and (iii) the like-for-like increase, driven by contractual indexation (2.5% in average on the period) and the decrease in the amortization of Covid-19 rent free periods.
Net rental income stands at 93% of gross rental income (stable compared to 2021), mainly composed of unrecovered rental expenses and provisions for credit losses:
Operating expenses and other revenues remained under control at € 5.0m (vs. € 4.5m in 2021), the increase derives from property management costs (leasing fees, asset management fees based on the evolution of rents).
Net cost of debt amounted to € 9.5m in 2022, almost stable compared to last year (+0.7%). In a context of a rise in interest rates, the Company continues to benefit from the renegotiations carried out in the past years, as well as from the hedging of its debt portfolio. The average interest rate on debt is 2.07% for the 12 months ending December 31, 2022 (versus 2.04% in 2021), while 79% of the debt is either at fixed rate or at hedged variable rate.
Recurring net result (FFO) amounted to € 29.3m in 2022, compared to € 26.7m in 2021:
The external appraisal valuation campaign resulted in a fair value adjustment of +€ 14.9m in 2022, reflecting the resilience of the portfolio in a context of high inflation and of sharp rise in interest rates.
Including the share of the result of companies accounted for using the equity method (+€ 0.5m), other non-recurring revenues and charges (-€ 1.4m), and the contribution of hedging strategies on debt (+€ 2.8m), net profit amounted to € 46.1m for the fiscal year 2022 and € 47.8m in group share, increasing by +51.7% compared to last year.
Decrease of the LTV ratio and increase of the NAV per share at € 28.5 (+6.8%) The Group consolidated net debt of € 360.9m as of December 31, 2022, implies a Loan-to-Value ratio of 44.0%, leaving a significant investment capacity compared to the target of 50% set by Patrimoine & Commerce.
Net asset value per share amounted to € 28.48 (€ 431.2m) in 2022, an increase of +6.8% versus 2021.
Development and optimization of the portfolio As of December 31, 2022, the portfolio valuation (excluding transfer taxes and including properties accounted for using the equity method), reached € 841.3m, increasing by +4.3% compared to 2021. The capitalization rate of the properties in operation stands at 7.0%.
Over 2022, Patrimoine & Commerce continued its development through the acquisition of a retail property in Thonon-les-Bains (Auvergne-Rhône-Alpes), of a portfolio comprising five properties in Villefranche-de-Rouergue (Occitanie), Gonesse (Île-de-France), Tavers (Centre-Val de Loire), Avranches (Normandie), and Colomiers (Occitanie) and of a retail park in Saint-Paul-lès-Romans (Auvergne-Rhône-Alpes). Those investments totalled € 53.6m in 2022. Other investments were made on the existing portfolio as well as on restructuring operations in Ville-du-Bois and La Martinique, for a global amount of € 8.2m.
Patrimoine & Commerce also completed the disposal of several assets in Epagny (Auvergne-Rhône-Alpes), Vitrolles (Provence-Alpes-Côte d'Azur), Sarreguemines (Grand Est), Parigné L’Evêque (Pays-de-la-Loire), Bourgoin-Jallieu (Auvergne-Rhône-Alpes), Salon-de-Provence (Provence-Alpes-Côte d'Azur), and an office property in Guadeloupe, for a total consideration of € 42.5m, in line with external appraisers’ valuations.
Dividend payment of € 1.30 per share The distribution of a dividend of € 1.30 per share will be proposed to the Annual General Meeting of Patrimoine & Commerce. The proposed dividend is increasing by +4.0% compared to last year and implies a 4.6% yield on net asset value per share as of December 31, 2022, and of 7.9% on the current stock price as of February 21, 2023.
Agenda
April 12, 2023 First-Quarter 2023 activity June 8, 2023 Annual General Meeting July 26, 2023 First-Half 2023 results October 11, 2023 Third-Quarter 2023 activity
------------------------------------ About Patrimoine & Commerce
Patrimoine & Commerce owns and operates a real estate portfolio, largely comprising retail property, covering a total surface area of more than 520,000 sqm. The assets are mainly located in retail parks near mid-sized towns throughout France. Patrimoine & Commerce benefits from a significant identified deal flow that will enable it to feed its growth, in terms of both assets under development and operating assets.
Notes : 1 The consolidated financial statements have been subject to audit procedures. The Statutory Auditors’ report is to be issued shortly 2 Incl. Group share of Cherbourg and Studio Prod and assets held for sale. 3 Based on annualized rents (or market rental value for vacant spaces) and on property valuation excl. transfer taxes 4 Adjusted for hedging instruments 5 Excluding strategic vacancy 6 As of December 31, 2022, the current operational result and the net cost of debt are restated from operating expenses, other income and financial expenses of the real estate development activity (-€ 0.7m)
Patrimoine & Commerce is listed on NYSE Euronext Paris. ISIN code: FR0011027135 – Mnémo code: PAT
For further information, go to : www.patrimoine-commerce.com
For information, please contact :
Appendix 1 : Recurring net result and Net debt
Recurring net result
Consolidated Net debt
Regulatory filing PDF file File: 2022 ANNUAL RESULTS |
Language: | English |
Company: | PATRIMOINE ET COMMERCE |
45 avenue Georges Mandel | |
75016 PARIS | |
France | |
Phone: | +33146994762 |
E-mail: | [email protected] |
Internet: | https://www.patrimoine-commerce.com/ |
ISIN: | FR0011027135 |
Euronext Ticker: | PAT |
AMF Category: | Inside information / News release on accounts, results |
EQS News ID: | 1565209 |
End of Announcement | EQS News Service |
1565209 22-Feb-2023 CET/CEST