Icade : Sharp rise in Icade's earnings and revalued net asset value in 2007
Mercredi 13 février 2008 / 17h48
Press Release
Paris, 13 February 2007
Sharp rise in Icade's earnings and revalued net asset value in 2007
- Consolidated turnover was up 12% to EUR 1,482 million,
- EBITDA and Operating profit were EUR 291 and 333 million, an 11% and 4% increase respectively,
- Net current cash-flow increased by 15 % to EUR 224 million.
- The revalued liquidation net asset value represented EUR 5,317 million, i.e. EUR 108.4 per share, on the basis of an expert-assessed value of assets of EUR 6,231, representing a 42% increase compared to the end of 2006.
- The Group's share of net income, not including exit tax, was up 26% to EUR 266 million.
Turnover up 12%
At 31 December 2007, Icade had recorded consolidated turnover of EUR 1,482 million, up 11.6% compared to 31 December 2006. It is broken-down between investment (24%), development (66%) and services (16%):
(in millions of euros)
2007
2006
variation
Investment
358.4
327.6
+9%
Development
974.9
790.7
+23%
Services
237.9
214.7
+11%
Others**
-89.4
-5.8
Total Turnover
1,481.8
1,327.2
+12%
This increase is essentially due to the good investment performance levels with the variation of rent, on a like-for-like basis, reaching 4.1% in 2007 and the solidity of the development business (+23% compared to 2006), in particular, the public and health development business.
Operating profit up 4%
Operating profit was EUR 333 million in 2007 compared with EUR 320 million in 2006, representing a 4.3% increase. It is broken-down between investment (85%), development (28%) and services (4%):
(in millions of euros)
2007
2006
Variation
Investment
282.1
244.7
+15%
Development
93.8
88.5
+6%
Services
12.4
2.4
n.s
Others*
-55.0
-16.1
n.s
Total Operating profit
333.4
319.5
+4%
In particular, this increase is due to:
- the improvement in EBITDA to EUR 291 million in 2007 compared with EUR 262 million in 2006. The majority of the rise relates to the increase in the influence of Icade's property companies in-line with the strategy introduced (EBITDA of EUR 216 million in 2007 compared with EUR 179 million in 2006), the very satisfactory performance of the housing development margins (12.4% of EBITDA margin in 2007) and the significant improvement in the margins of the service business line (6.1% of EBITDA margin in 2007);
- by the increase in depreciation expenses from EUR 81 million in 2006 to EUR 97 million in 2007 (relating to Icade's investment policy);
- by the increase in income from disposals to EUR 139 million in 2007. This mainly consists of disposals of housing properties: 3,181 housing units sold as a block for an average price of EUR 753 per m² and 198 housing units sold unitarily for an average price of EUR 2,033 per m². In 2006, income from disposals represented EUR 125 million (disposal of 3 commercial-property SCIs and 780 housing units from the housing property company).
Net current cash-flow up 15%
Net current cash-flow rose by 14.8% to EUR 224 million in 2007 compared with EUR 195 million in 2006. The improvement in EBITDA for the period is partially offset by the increase in financial expenses, due, in particular, to mentoring development operations which do not yet generate rent.
Group's share of net income rose by 26% (not including impact of exit-tax)
The Group's share of net income of EUR 37 million in 2007 includes an exit tax charge of EUR 229 million relating to the extension of arrangements concerning SIIC (Listed Property Investment Companies) backdated to January 1st, 2007, with the merger, on 30 November 2007, of its property investment companies. Restated to take account of this charge, the Group's share of net income was EUR 266 million, i.e. a 26% increase compared to 2006 following.
During the General Meeting of 16 April 2008, it will be proposed to distribute a dividend of EUR 160 million (EUR 3.25 per share), representing a 27% increase compared to the 2006 financial year. This dividend could be paid on April 30, 2008.
A Group revalued liquidation net asset value 16% higher than at 30 June 2007
As at 31 December 2007, the value of the asset base, not including rights, was EUR 6,231 million, up 42% compared with 31 December 2006, 25% of which is on a like-for-like basis. Icade's revalued liquidation net asset value was EUR 5,317 million, i.e. EUR 108.4 per share (on the basis of the development and services business lines being valued at EUR 963 million and in the absence of any revaluation of the significant property reserves available to the company), up 16% compared to 30 June 2007 (EUR 93.2 per share). Calculation of the Group's revalued net asset value per share was calculated for the first time as at 30 June 2007 owing to the change of corporate business model.
The loan to value (LTV) ratio, which is calculated using the conservative method as the ratio between the Group's net debt on all business activities including funding development and service operations and the single expert-assessed value of the asset base (not including rights) of the property companies, was 25% at the end of 2007 compared with 14% at the end of 2006.
Investments
Investments net of disposals represented EUR 947 million in 2007 (EUR 41 million of which corresponds to an advanced payment made on 31 December 2007 for the acquisition of a 95% stake in the Mr Bricolage property company which was carried-out on 1 January 2008).
Main investments as follows:
For Business Property investment division:
- the acquisition of ESSO's head office in Rueil-Malmaison for EUR 101 million;
- the additional acquisition of 66% of Tour Descartes for EUR 258 million;
- the acquisition of 5 clinics for an investment of EUR 91 million.
For Housing Property investment division:
- EUR 95 million in investments and EUR 167 million of disposals
The balance, which mainly relates to buying-back Icade Foncière des Pimonts' Bonds Redeemable in Shares (ORA) from holders from outside the Group for EUR 263 million, the acquisition of SIIC Invest for EUR 74 million (89.65% hold as at 31 December 2007) and the acquisition of Opéra Construction for EUR 55 million.
Outlook
On 3 December 2007, Icade announced a provisional identified-investment programme of EUR 2.7 billion (including capex of EUR 0.3 billion) and a programme for EUR 1.6 billion of disposals for 2008-2012. These investments, both in Ile-de-France and regional France, have a controlled and limited marketing risk and will provide an expected average gross return (not including capex) of 6.7%. With a very moderate level of debt as at 31st December 2007, Icade intends following a prudent development policy and also has significant capital gains reserves in its portfolio.
Owing to its solid bases, healthy balance sheet, safe investment potential and controlled risk, Icade is able to make the following medium-term forecasts:
- two-figure net current cash-flow growth;
- an increase in dividends in-line with the average growth in cash-flow.
Key Consolidated Figures:
in millions of euros
31/12/07
31/12/06
Variation
Turnover
1,482
1,327
11.6%
EBITDA
291
262
11.1%
EBITDA margin %
19,6%
19,8%
Allocations to depreciation
97
81
19.7%
Income from disposals
139
125
11.4%
Operating profit
333
320
4.3 %
Financial profit / loss
(41)
(17)
Tax charge
(247)
(77)
Net income, Group share
37
211
n.s
Net income, Group share, ex. exit tax
266
211
25.7%
Net current cash-flow
224
195
14.8%
in millions of euros
31/12/07
31/12/06
Net financial debt
1,574
602
LTV
25%
14%
in millions of euros
31/12/07
30/06/07
Revalued Liquidation Net Asset Value
Revalued Replacement Net Asset Value
In E per share
5,709
In E per share
116.4
Revalued Liquidation Net Asset Value
Revalued Replacement Net Asset Value
In E per share
5,709
In E per share
116.4
- Number of diluted shares at 31/12/2007: 49,038,624
- Number of shares for calculation of Revalued Net Asset Value at 30/06/2007: 49,193,623
The consolidated financial statements at 31 December 2007 may be consulted on the icade.fr website. Finance. Regulated information. Quarterly financial information and/or Press releases from securities issuers published under ongoing disclosure requirements.
Serge Grzybowski will present the 2007 annual results on Thursday February 14th, at 10 am. The slide-show will be available on the Icade.fr website. Investor presentations.
The presentation will be accessible in English, dialling:
France : +33 (0) 1 70 99 42 72
UK : +44 (0) 20 7138 0824
Access Code: 5830540
From 14 February, and during 7 days, the presentation will be accessible in English, dialling:
France : +33 (0)1 71 23 02 48
UK : +44 (0)20 7806 1970
Access Code 5830540#
Coming events
General Meeting: 16 April 2008 at Salons Hoche
Payment of dividend: 30 April 2008
Turnover Q1 2008: 13 May 2008 post closing
Earnings 1st six months of 2008: 24 July 2008 post closing
About Icade
As a developer REIT, Icade, chaired by Serge Grzybowski, is a major player in the property market. Its business activities cover the whole value chain: investment, development and furnishing services in the housing, office, business parks, commercial property and shopping centre and public-health equipment sectors. The company's know-how expresses itself through designing, developing, investing, holding and arbitrating, using and managing. Expertise in its different business lines means that Icade is able to provide its clients with personalised solutions and to act in respect of all the sector's current concerns. In 2007, Icade recorded consolidated turnover of EUR 1,482 million and net current cash-flow of EUR 224 million. The revalued liquidation net asset value rose to EUR 5,317 million, i.e. EUR 108.4 per share.
Contacts
Nathalie Palladitcheff
Rémi Lemay
Member of the Executive Board, responsible for finance
Financial and External Communication Manager
+33 (0)1 41 57 70 12
+33 (0)1 41 57 71 05
nathalie.palladitcheff@icade.fr
remi.lemay@icade.fr
* Icade SA, Icade aménagement and intra-Group inter-business line
Copyright Hugin
The appendixes relating to the press release are available on:
