VTR Ventas Inc

• Rental income of €21.7 million
• Portfolio value of €1.3 billion
• Occupancy rate of 67% at buildings in use
• EPRA NTA of €465 million or €27.3 per share

Regulatory News:

Vitura (Paris:VTR):

Particularly attractive repositioned assets

During the first half of the year, 11,000 sq.m were let, representing 7% of the total surface area of the portfolio of buildings in use1. The transactions mainly concern lease renewals and extensions at Europlaza and Arcs de Seine, two assets offering amenities inspired by hotel standards. A lease was signed for 5,600 sq.m, or 20% of the surface area, of the Rives de Bercy campus, less than three months after it was completely renovated. The tenant’s teams are scheduled to arrive in the third quarter of 2024.

Sale of a controlling interest in the Passy Kennedy and Office Kennedy holding companies

In early July, Vitura sold a controlling interest in the companies holding the Passy Kennedy and Office Kennedy properties to a European asset manager for a value of approximately €14 million.

Following the sale, Vitura reclassified the assets and liabilities of the holding companies as assets and liabilities held for sale as of June 30, 2024. In accounting terms, the transaction will result in a capital loss of around €139 million2 in the consolidated financial statements for the second half of 2024, or a negative impact of approximately €8.2 per share on EPRA NTA.

As part of this transaction, new bank financing of €270 million was arranged by the holding companies, used to repay the consolidated loans related to the properties at June 30, 2024 in an amount of €205 million, and notably the €139 million loan granted when Passy Kennedy was acquired, falling due on July 15, 2024.

The sale will help to finance the works program aimed at repositioning Passy Kennedy and Office Kennedy as a top-class property complex of 34,000 sq.m offering a broad range of upscale amenities including food services, conference facilities, a gym, and wellness and social areas. It was designed to feature facilities to promote low-carbon mobility, while the property will meet the highest environmental standards.

Vitura retains a non-controlling interest of around 7% and may be entitled to value created by the redeveloped properties.

First-half 2024 results

Rental income for the period totaled €21.7 million, compared with €25.6 million for first-half 2023. Excluding the impact of the Passy Kennedy and Office Kennedy buildings, which have been fully vacated, rental income rose from €19.2 million to €21.7 million, an increase of €2.4 million or 12.5%.

The occupancy rate of buildings in use came to 67% at June 30, 2024, stable compared with December 31, 2023.

EPRA earnings represented a loss of €7.8 million in first-half 2024, compared with earnings of €8.3 million for the prior-year period. EPRA earnings generated by the holding companies of Passy Kennedy and Office Kennedy (both vacant) represented a loss of €7.6 million at June 30, 2024, comprising mainly rental expenses and financial expenses. Excluding these two companies, EPRA earnings represent a loss of €0.3 million, compared with earnings of €2.7 million for the same period in 2023. This decrease is due to the cost of restructuring hedging instruments (negative €1.6 million impact) and interest for the period linked to the loan granted by the majority shareholder (negative €1.9 million impact) to cover the Group's cash flow requirements.

Market pressure on capitalization rates, partially mitigated by the asset management work carried out, weighed on portfolio value. The value of the Group’s portfolio stood at €1,266 million (compared with €1,307 million at December 31, 2023). This decrease is mainly due to a rise in capitalization rates.

IFRS consolidated net debt came to €809 million at June 30, 2024, with an average loan-to-value ratio of 63.9%. An agreement was reached in April 2024 with Hanami’s banking pool to suspend the effects of the loan-to-value ratio being breached until December 31, 2024, and to restructure the existing debt of €92 million.

In light of high interest rates, the Group is maintaining its policy to hedge against changes in the Euribor using interest rate hedging instruments. For the next 12 months, 100% of the Group's debt will be hedged at an average rate of 0.50%3.

The market value of the Group's assets has an impact on EPRA NTA, which stood at €465 million or €27.3 per share at end-June 2024, compared with €523 million or €30.7 per share at December 31, 2023.

The Statutory Auditors’ review report is under way.

About Vitura

Created in 2006, Vitura is a listed real estate company (“SIIC”) that invests in prime office properties in Paris and Greater Paris. The total value of the portfolio was estimated at €1,266 million at June 30, 2024 (excluding transfer duties).

Thanks to its strong commitment to sustainable development, the Company's leadership position is recognized by ESG rating agencies. Vitura has held a GRESB (Global Real Estate Sustainability Benchmark) 5-star rating since 2014 and has been ranked world number 1 (Global Sector Leader) in the listed office property companies category four times. It has also received two Gold Awards from the European Public Real Estate Association (EPRA) for the quality and transparency of its financial and non-financial reporting. Vitura is ISO 14001-certified.

Vitura is a REIT listed on Euronext Paris since 2006, in compartment B (ISIN: FR0010309096).

Visit our website to find out more: www.vitura.fr/en

Find us on: LinkedIn / X

APPENDICES

Reconciliation of Alternative Performance Measures (APM)

EPRA earnings

 

In thousands of euros

June 30, 2024

June 30, 2023

Net income under IFRS

(54 588)

(79 443)

Restatement of changes in fair value of investment property

46 116

83 924

Other restatements of changes in fair value

1 335

3 842

EPRA earnings

(7 137)

8 323

 

EPRA NTA

 

In thousands of euros

June 30, 2024

June 30, 2023

Shareholders’ equity under IFRS

457 317

672 358

Portion of rent-free periods (1)

(18 699)

(16 689)

Elimination of fair value of share subscription warrants

0

0

Fair value of diluted NAV

438 619

655 669

Transfer duties (2)

54 349

63 412

Fair value of financial instruments

(26 836)

(49 414)

EPRA NTA

466 132

669 668

EPRA NTA per share

27.3

39.3

 

(1) Lease incentives recorded in assets in the IFRS consolidated financial statements under “Non-current loans and receivables” and “Other operating receivables”.

(2) Transfer duties of 5% applied to the net assets of the subsidiaries holding the properties to allow for the sale of the shares in these entities.

 

LTV ratio

 

In millions of euros

June 30, 2024

June 30, 2023

Gross amount of balance sheet loans (statutory financial statements) (1)

808

825

Fair value of investment property

1 266

1 436

LTV ratio (%)

63.8%

57.4%

 

(1) Consolidated gross debt recorded in the statutory financial statements.

 

Occupancy rate

 

The occupancy rate is the ratio of space for which the Company receives rent under a lease agreement to the total amount of available space.

IFRS Income Statement (consolidated)

In thousands of euros, except per share data

 

 

 

 

June 30, 2024

Dec 31, 2023

June 30, 2023

 

6 mois

12 months

6 mois

 

Rental income

21 756

51 195

25 639

Income from other services

9 685

25 415

17 156

Building-related costs

(17 884)

(26 184)

(17 048)

Net rental income

13 558

50 427

25 748

Sale of building

0

0

0

Administrative costs

(4 088)

(8 716)

(4 659)

Depreciation, amortization and impairment

307

0

(368)

Other operating expenses

0

(310)

0

Other operating income

0

0

1

Total change in fair value of investment property

(46 116)

(229 107)

(83 924)

 

Net operating income

(36 339)

(187 706)

(63 204)

 

Financial income

11 794

20 470

7 410

Financial expenses

(30 043)

(72 618)

(23 651)

Net financial expense

(18 248)

(52 148)

(16 240)

 

Corporate income tax

0

0

0

 

CONSOLIDATED NET INCOME

(54 588)

(239 854)

(79 443)

of which attributable to owners of the Company

(54 588)

(239 854)

(79 443)

of which attributable to non-controlling interests

0

0

0

 

Other comprehensive income

0

0

0

 

TOTAL COMPREHENSIVE INCOME

(54 588)

(239 854)

(79 443)

of which attributable to owners of the Company

(54 588)

(239 854)

(79 443)

of which attributable to non-controlling interests

0

0

0

 

Basic earnings per share (in euros)

(3.20)

(14.07)

(4.66)

Diluted earnings per share (in euros)

(3.20)

(14.07)

(4.66)

IFRS Balance Sheet (consolidated)

In thousands of euros

 

 

 

 

June 30, 2024

Dec. 31, 2023

June 30, 2023

 

Non-current assets

 

Property, plant and equipment

3

3

3

Investment property

913 100

1 306 860

1 436 300

Financial assets

1

0

0

Non-current loans and receivables

11 291

15 871

13 000

Financial instruments

17 684

25 360

47 958

Total non-current assets

942 080

1 348 095

1 497 261

 

Current assets

 

Assets held for sale

363 101

0

0

Trade accounts receivable

13 758

14 647

16 473

Other operating receivables

12 094

13 150

13 912

Prepaid expenses

289

521

286

Total receivables

389 242

28 318

30 672

 

Financial instruments

9 960

7 712

5 636

Cash and cash equivalents

9 856

11 720

15 053

Total cash and cash equivalents

19 816

19 432

20 689

 

Total current assets

409 058

47 749

51 361

TOTAL ASSETS

1 351 137

1 395 844

1 548 621

 

Shareholders' equity

 

Share capital

64 933

64 933

64 933

Legal reserve and additional paid-in capital

60 047

60 047

60 047

Consolidated reserves and retained earnings

386 926

626 782

626 822

Net attributable income

(54 588)

(239 854)

(79 443)

Total shareholders’ equity

457 317

511 908

672 358

 

Non-current liabilities

 

Non-current borrowings

502 937

572 365

670 409

Other non-current borrowings and debt

7 379

7 426

10 461

Non-current corporate income tax liability

0

0

0

Financial instruments

0

0

0

Total non-current liabilities

510 316

579 791

680 870

 

Current liabilities

 

Current borrowings

107 982

249 802

157 574

Financial Instruments

0

0

0

Other financial debts

30 569

25 510

0

Liabilities held for sale

211 101

0

0

Trade accounts payable

7 614

6 158

6 438

Corporate income tax liability

0

0

0

Other operating liabilities

12 083

8 128

14 801

Prepaid revenue

14 154

14 546

16 580

Total current liabilities

383 504

304 144

195 393

 

Total liabilities

893 820

883 936

876 263

TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES

1 351 137

1 395 844

1 548 621

IFRS Statement of Cash Flows (consolidated)

In thousands of euros

 

 

 

 

June 30, 2024

Dec 31, 2023

June 30, 2023

 

 

 

 

OPERATING ACTIVITIES

 

 

 

Consolidated net income

(54 588)

(239 854)

(79 443)

 

 

 

 

Elimination of items related to the valuation of buildings:

 

 

 

Fair value adjustments to investment property

46 116

229 107

83 924

Annulation des dotations aux amortissement

0

0

0

Indemnité perçue des locataires pour le remplacement des composants

0

0

0

Elimination of other income/expense items with no cash impact:

 

 

 

Depreciation of property, plant and equipment (excluding investment property)

0

3

3

Free share grants not vested at the reporting date

0

0

0

Fair value of financial instruments (share subscription warrants, interest rate caps and swaps)

966

21 115

593

Adjustments for loans at amortized cost

937

2 207

1 119

Contingency and loss provisions

0

0

0

Corporate income tax

0

0

0

Penalty interest

0

0

0

 

Cash flows from operations before tax and changes in working capital requirements

- 6 569

12 578

6 196

 

 

 

 

Other changes in working capital requirements

11 341

(2 688)

8 511

Working capital adjustments to reflect changes in the scope of consolidation

 

 

 

 

Change in working capital requirements

11 341

(2 688)

8 511

 

 

 

 

Net cash flows from operating activities

4 772

9 890

14 707

 

 

 

 

INVESTING ACTIVITIES

 

 

 

Acquisition of fixed assets

(4 827)

(29 486)

(13 744)

Net increase in amounts due to fixed asset suppliers

(1 774)

169

(1 525)

 

 

 

 

Net cash flows used in investing activities

(6 601)

(29 317)

(15 269)

 

 

 

 

FINANCING ACTIVITIES

 

 

 

Capital increase

0

0

0

Capital increase transaction costs

0

0

0

Change in bank debt

(6 087)

(9 065)

(1 586)

Issue of financial instruments (share subscription warrants)

0

0

0

Refinancing/financing transaction costs

0

0

0

Net increase in liability in respect of refinancing

0

0

0

Purchases of hedging instruments

0

0

0

Net increase in current borrowings

1 565

4 179

3 605

Net decrease in current borrowings

0

0

0

Net increase in other non-current borrowings and debt

5 012

(3 115)

(81)

Net decrease in other non-current borrowings and debt

0

0

0

Purchases and sales of treasury shares

(2)

(96)

(57)

Dividends paid

0

(1 433)

(1 433)

 

 

 

 

Net cash flows from financing activities

488

(9 530)

448

 

 

 

 

Change in cash and cash equivalents

(1 341)

(28 957)

(115)

 

 

 

 

Cash and cash equivalents at beginning of period*

11 719

15 167

15 167

Cash relating to assets held for sale

- 523

-

-

 

 

 

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

9 855

(13 790)

15 053

* There were no cash liabilities for any of the periods presented above.

_______________________ 1 The property portfolio is divided into buildings in use and assets undergoing repositioning. The delivery of Rives de Bercy at the end of 2023 brings the total number of buildings in use to four. As from January 1, 2024, only Office Kennedy and Passy Kennedy are vacant and undergoing redevelopment work. 2 The accounting impacts on the consolidated financial statements for the second half of 2024 are presented in the 2024 interim financial report (section entitled “Subsequent events”). 3 Excluding debt relating to the Passy Kennedy and Office Kennedy buildings (€205 million) which was refinanced on July 9, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731985509/en/

For more information, please contact: Investor relations Charlotte de Laroche info@vitura.fr +33 1 42 25 76 38

Media relations Aliénor Miens alienor.miens@margie.fr +33 6 64 32 81 75