PARIS, Jan. 16, 2014 (GLOBE NEWSWIRE) -- The new strategic plan unveiled at the outset of 2013 aimed at repositioning Société de la Tour Eiffel on a growth path by the end of 2014 has met with operational success. Based on three major themes (refocusing of activity on Paris offices, improving the Company's risk profile and reducing debt, the initiation of transactions offering value creation potential), the plan has achieved excellent results a year ahead of schedule.
The Company achieved several disposals of non-strategic provincial assets during 2013, for a total of € 190 million virtually in line with their valuations. As a result of these sales, the core element of the Company's portfolio, concentrated on Parisian office assets, increased to 69% from 49% end 2012 .
In parallel with the stringent financial management, these disposals also enabled a significant reduction in the Company's LTV to around 47% at 31 December 2013 (56% end 2012) , close to the target set for end 2014. This LTV illustrates the Company's continued financial consolidation, positioning it to be able to reconsider growth operations and value creation, as demonstrated by the leasing of the 5,000 sq.m Eiffel O² office development in Montrouge to a subsidiary of La Poste in the spring of 2013.
The Company's robust operating performance is also illustrated by the historically high financial occupancy rate of 93.7% (2% increase on year).
As a consequence of this favourable operational outcome, the Total Shareholder's Return exceeded 16% for 2013. Respecting its historical commitment and despite a context of portfolio downsizing, the Company proposes to maintain an attractive dividend (estimated at € 3.20 per share), partly thanks to a continuing cost cutting program, which will produce a reduction in overhead costs in excess of 20% as from second half 2014.
This impetus initiated in 2013 enables the Company to set its sights on sustainable growth. This year should therefore bring new opportunities, partly financed by non-strategic asset sales. New acquisitions will be considered as will the development of our site reserves, for example at Massy where a planning permission has been obtained for 33,000 sq.m of offices .
« Société de la Tour Eiffel demonstrated in 2013 its ability and motivation to reposition itself on a difficult market. The undeniable operating success in the implementation of our strategic plan makes us stronger and opens the way to new value-added operations where our team has a recognized track record. The ability to return to a growth path offers our shareholders increased assurance for their investment in the future », comments Renaud Haberkorn, Chief Executive Officer of Société de la Tour Eiffel.
About Societe de la Tour Eiffel
A listed real estate investment company (SIIC) on NYSE Euronext Paris, the company pursues a strategy focused on the ownership and the development of quality offices mainly in Paris and its region capable of attracting a wide range of tenants The company's portfolio stood at 809 million Euros of assets as at 30 June 2013. Societe de la Tour Eiffel is listed on NYSE Euronext Paris (compartment B) - ISIN code: 0000036816 - Reuters: TEIF.PA - Bloomberg EIFF.F. Indexes: GIEIF Foncières, IEIF Immobilier France.
| Press contact | |||||||
| Jean-Philippe MOCCI | |||||||
| Capmot | www.societetoureiffel.com | ||||||
| Tel :+33 (0)1 71 16 19 13/+33 (0)6 71 91 18 83 | |||||||
| jpmocci@capmot.com | |||||||
STE : Operational success of new strategic plan in 2013 http://hugin.info/143560/R/1755008/592507.pdf
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