FINANCIAL INFORMATION FOR THE THIRD QUARTER OF 2016

• Total rental income:
  
  
  
  • 9 months: €49.9 million o/w 84% from Parisian office assets (vs 74% in 2015)
  
  
  • Q3: €17.1 million o/w 88% from Parisian office assets (vs 76 % in 2015)
  
  

• Good performance of strategic assets in Parisian office buildings :
  
  
  
  • Strategic rental income:
    
    
    
    • +6.3% over 9 months at €42.2 million
    
    
    • +10.5% over Q3 at €15.0 million
    
    
  
  
  • Reduction in EPRA vacancy rate: 3.3 % vs 3.7 % end of June 2016
  
  
  • Acquisition for €91.5 million of strategic assets (Paris 16^e) in June
  
  

• Total rental income impacted by the selling off strategy of non-strategic assets (Office buildings out of Paris and Residential):
  
  
  
  • €73.4 million of completed assets disposal over 9 months (+20,3 % vs 9 months 2015)
  
  
  • Sale promise signed on the Lebrun asset in Antony
  
  

• Payment of an interim dividend on November 16:
  
  €0.39 per share, +2.6 % vs interim dividend paid in 2015)

• Rental income: good performance of Parisian office assets

Rental income from Parisian office assets were up 6.3% over the first nine months of 2016. They increased by 10.5% over the third quarter, representing 90% of total rental income.

Acquisition made in 2015 and in 2016 had a positive impact of €1.5 million on rental income. The most recent acquisitions were three office buildings acquired from the « Centre National du Cinéma et de l'Image Animée » (CNC) for an amount of €91.5m excluding duties, located in the middle of Paris CBD: 11 rue Galilée, 32/34 rue Galilée and 10/12 rue de Lübeck (Paris 16^e) for a total lettable surface of 8,316 sq.m.

Over the first nine months of 2016, EPRA vacancy rate in office buildings in Paris, calculated on leasable properties, was 3.3 %, a reduction of 0.4 point compared to 3,7 % at the end of June 2016

 
9 months
Third Quarter


Rental income (€million)
2016
2015
Change%
2016
2015
 Change%


 
€m
%
 €m
%
€m
%
 €m
%


Parisian office buildings
42.2
84 %
39.7
74 %
+6.3 %
15.0
88 %
13.6
76 %
+10.5 %


Other assets

Office buildings out of Paris

Residential
7.8

5.2



2.6
16 %
13.6

10.6



3.0
26 %
-42.8 %
2.1

1.2



0.9
12 %
4.2

3.3



0.9
24 %
-50.6 %


Total
49.9
100 %
53.3
100 %
-6.3 %
17.1
100 %
17.8
100 %
-4.2 %

Total rental income for the first nine months of 2016 were €49.9 million, to be compared to €53.3 million over the same period of 2015. The decrease by 6.3% reflected the active selling off policy of non-strategic assets (Office buildings out of Paris and Residential) in line with the annual program.

Since the beginning of the year, €73.4 million of assets disposal have been completed (up 20.3% compared to nine months 2015). A sale promise has been signed on the rue Lebrun asset in Antony with an objective of effective sale in January 2017.

• Outlook: ongoing refocus on high-quality Paris office real estate

TERREÏS' goal is to increase its Paris commercial property portfolio, and to focus on Paris CBD. Over the 4^th quarter of 2016, TERREÏS will keep concentrating on the disposal of its regional and residential assets.

• Interim dividend

TERREÏS will pay on November 16 an interim dividend of €0.39 per share, up 2.6% compared to the interim dividend paid in November 2015.

Release of the sales figures for the FY 2016 on January 25, 2017

Contact: Fabrice Paget-Domet, Chief Executive Officer - Tel: +33 (0)1 82 00 95 23

About Terreïs (www.terreis.fr) - ISIN Codes: FR0010407049 - Ticker symbol: TER

TERREÏS is a real estate company where the assets consist of offices and retail premises that are primarily located in Paris. TERREÏS has been listed on the NYSE Euronext regulated market in Paris since December 2006, and has been included in Compartment B since January 2012. The Group has opted for the status of listed property investment company (“SIIC”) since 1 January 2007.

Source: Actusnews