SFL -- First-Quarter 2025 Financial Information

PARIS--(BUSINESS WIRE)--April 29, 2025-- 

Regulatory News:

"During first-quarter 2025, in a very unstable economic and geopolitical environment, SFL (Paris:FLY) signed leases on 6,400 sq.m. at historically high rents (EUR1,000 per sq.m. on average), maintaining the highest possible overall occupancy rate of 99.3%, and an occupancy rate of 100% for office properties. Rental income was up 4.1% like-for-like, at EUR59.3 million. Consolidated revenue for the quarter was down versus first-quarter 2024, due to the departure of WeWork from the Haussmann Saint-Augustin building in June 2024 and GRDF from its historical rue de Condorcet headquarters building at the end of January 2025. These departures paved the way for two ambitious redevelopment projects which represent a significant future source of rental income", said Aude Grant, SFL's Chief Executive Officer.

Rental income of EUR59.3 million, up 4.1% like-for-like

Consolidated revenue (EUR thousands)

 
                                                    Q1 2024   Q1 2025   Change 
-------  ----------------------------------------  --------  --------  ------- 
 Rental income                                       63,931    60,775    -4.9% 
    o/w   Paris CBD                                  49,450    48,270    -2.4% 
  Paris Other & Western Crescent                     14,481    12,505   -13.6% 
 ------------------------------------------------  --------  --------  ------- 
 Rental income on a comparable portfolio basis       56,969    59,330    +4.1% 
-------------------------------------------------  --------  --------  ------- 
 

First-quarter 2025 consolidated rental income totalled EUR60.8 million, down EUR3.2 million or 4.9% from the EUR63.9 million reported for the same period of 2024. The decline, which was expected, was due to the combined effect of:

- The EUR6.2 million decrease in rental income versus first-quarter 2024, including EUR4.4 million related to the following two major redevelopment projects:

   -- Haussmann Saint-Augustin: WeWork moved out of its leased offices at the 
      end of June 2024 and redevelopment work started the following month, with 
      delivery scheduled for mid-2025. 
 
   -- Condorcet: GRDF moved out of its historical headquarters building at the 
      end of January 2025, allowing work to begin on the complete restructuring 
      of the building for delivery in 2027. 

- The allocation to first-quarter 2025 of the relevant portion of penalties received from tenants for breaking their leases, partly offset by the cancellation of the related rent accruals for the quarter in the IFRS financial statements, which added a net EUR0.7 million to rental income between first-quarter 2024 and first-quarter 2025.

- Rent increases (excluding all changes in the portfolio affecting period-on-period comparisons), which boosted rental income by EUR2.4 million or 4.1%, reflecting:

(i) the EUR1.4 million positive effect of applying rent escalation clauses;

(ii) pre-marketing of offices vacated before the end of the original lease, which were taken up by other tenants that needed more space (mainly in Washington Plaza and Edouard VII). This proactive asset management initiative enabled SFL to capture the offices' reversionary potential earlier than expected (EUR0.4 million positive impact);

(iii) the positive contribution from property management contracts related to the Edouard VII and #cloud.paris properties (approximately EUR0.6 million).

Occupancy rate kept at a record high of 99.3%

The physical occupancy rate for revenue-generating properties remained at a very high 99.3% as of 31 March 2025 (unchanged from 31 December 2024). The EPRA vacancy rate was 0.6% (versus 0.5% at 31 December 2024). The occupancy rate for the office portfolio (excluding properties undergoing redevelopment) was 100%.

In the first quarter, SFL signed leases on over 6,400 sq.m. (including 2,000 sq.m. in Haussmann Saint--Augustin) at an average office rent of EUR1,000 per sq.m. with lease incentives limited to 14% of rents. These leases will have a positive impact on SFL's 2025 results.

Lastly, on 8 April 2025, Standard & Poor's reaffirmed SFL's BBB+ rating with a stable outlook.

No properties were purchased or sold during the first quarter of 2025.

About SFL

Leader in the prime segment of the Parisian commercial real estate market, Société Foncière Lyonnaise stands out for the quality of its property portfolio, which is valued at EUR7.6 billion and is focused on the Central Business District of Paris (#cloud.paris, Edouard VII, Washington Plaza, etc.), and for the quality of its client portfolio, which is composed of prestigious companies. As France's oldest property company, SFL demonstrates year after year an unwavering commitment to its strategy focused on creating a high value in use for users and, ultimately, substantial appraisal values for its properties. With its sights firmly set on the future, SFL is committed to sustainable real estate with the aim of building the city of tomorrow and helping to reduce carbon emissions in its sector.

Stock market: Euronext Paris Compartment A -- Euronext Paris ISIN FR0000033409 -- Bloomberg: FLY FP -- Reuters: FLYP PA

S&P rating: BBB+ stable outlook

View source version on businesswire.com: https://www.businesswire.com/news/home/20250429720652/en/

 
    CONTACT:    SFL - Thomas Fareng - T +33 (0)1 42 97 27 00 - 

t.fareng@fonciere-lyonnaise.com

www.fonciere-lyonnaise.com

(END) Dow Jones Newswires

April 29, 2025 12:54 ET (16:54 GMT)