SOCIETE IMMOBILIERE DE LOCATION POUR L'INDUSTRIE ET LE COMMERCE
- S I L I C -
French société anonyme with a share capital of €69,910,072
Registered office: 31 boulevard des Bouvets, 92000 Nanterre
572 045 151 RCS NANTERRE
APE code 6820B - SIRET no. 572 045 151 00063
QUARTERLY FINANCIAL REPORTING THIRD QUARTER 2012
The economic slowdown in France in the third quarter has
affected the property market, and particularly the office
rental market in the Paris Region, which has declined by
almost 20% over nine months.
Silic's business activity held up well in this
environment, with lettings totalling 17,000 m² in the third
quarter, equalling the Q3-2011 level. Over the first nine
months, lettings totalled 59,000 m² vs. 67,000 in the same
period of 2011.
After letting Montréal at Orly-Rungis in late 2011 and
Cézanne at Saint-Denis in early 2012, the entire Brahms
building (8,700 m²) at Colombes, which is scheduled for
completion in 2014, was pre-let during the third quarter. The
occupancy rate stood at 85.7%, virtually unchanged from the
end-December 2011 level of 85.3%.
Financial indicators are showing a gradual return to growth,
as announced:
Rental income rose by 5.4% to €137.5 million for the first
nine months, vs €130.5 million at 30 September 2011. Changes
in scope contributed 1.4% and revenue from new buildings more
than offset the impacts of the Rio sale in late 2011 and the
gradual freeing up of Défense 1 as part of the Mozart
project.
On a like-for-like basis, rental income rose by 4.0%, driven
notably by the effects of indexation. Tenant default at 0.4%
of rental income is stable.
EBITDA rose by 3.0% year-on-year, before non-recurring
expenses related to the merger operation currently in
progress (€3.8 million).
Pre-tax ordinary cash flow, which was severely affected in
the first half by the financial carrying cost of new
buildings, improved during the third quarter and declined by
3.0% over nine months. Gross cash flow was down
8.9%.
Investments during the quarter were almost entirely devoted
to Saint-Denis, with continued work on Sisley (23.000 m²) as
well as the acquisition of the land for the park's third
building. Work on the new 22,000 m² office building, which is
currently in the pre-letting phase, could begin early next
year for completion in 2014.
Studies on the Mozart project at Nanterre-Préfecture and the
eviction of tenants in the existing building continued
according to plan.
Sources of financing amounted to €1,580 million, of which
€1,430 million was drawn down at the end of September. At the
end of July, €270 million of bank credit lines with a
remaining maturity of less than one year were refinanced with
a
€350 million intra-group loan, extending the average maturity
of debt to almost four years. No loans are due for
refinancing before the end of 2012.
Silic's ownership structure remained stable in the third
quarter. The public offer made by Icade remains open pending
the
Paris Appeal Court's ruling on the claims for
annulment.
Activity and results for the first nine months of the year
confirm our full-year forecast of rental income growth
accompanied by stable EBITDA.
Nanterre, 19 October 2012
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