AFFIPARIS : 2008 Results

PR Newswire/Les Echos/

Paris, 4 march 2009, 9:15 p.m.

2008 Results

Rents: +97%
Current profit: EUR1.7 million
Operating cash flow: EUR8.2 million
Value of assets (transfer taxes included): EUR239 million (+35%)
Fair value of real properties (on a like-for-like basis): -5.8%
Net assets value (excluding transfer taxes): EUR15 per share

Assembling high-qaualitv assets

AffiParis, a property company dedicated to Paris commercial property, continued
its growth during the first half of 2008, with an investment volume of EUR73.5
million, and the initial selling off of small assets outside Paris.

At the end of 2008, the value of the properties from independent expert
appraisals was EUR239 million (including transfer taxes), a 35% increase
compared to the end of 2007. On a like-for-like basis, the fair value of the
properties decreased by 5.8%. Occupancy rate was closed to 95%.

Consequently, rents collected increased by 97% (including 4.9% on a
like-for-like basis) bringing the operating margin to EUR10.2 million, versus
EUR5.3 million in 2007 (nine-month financial year). The leases are long-term for
the two largest Paris tenants (Baker & McKenzie and SNCF) and the weighted
average rent of the Paris properties is EUR440 per sqm.

A clear improvement in operating results

That increase in revenues, partially offset by service costs expenses which have
increased markedly (EUR7.7 million versus EUR4.6 million during the nine months
of the preceding financial year), led to a current profit before disposal of
EUR1.7 million, versus a loss of EUR1.4 million in 2007 (nine months). As the
disposals were made at prices close to their fair value at the end of 2007, the
group posted a slight capital loss on the sale, and the current result after
disposal is thus EUR1.3 million, versus EUR-1.4 million for the 

The operating cash flow also posted a sharp increase to reach EUR8.2 million
versus EUR1.5 million in 2007 (nine months).

Considering a significant drop in the fair value of the properties (EUR10
million) and financial instruments (EUR6.7 million), the net consolidated loss
amounts to EUR14.6 million, compared with a EUR8.2 million profit the previous
year (nine months).

Debt under control

In spite of the contraction in the credit supply during the year, AffiParis
managed to restructure the loans that had been set up by the former Fideimur and
to finance its investments under satisfactory conditions. Considering an amount
of EUR101.2 million in new loans set up, the debt towards banks reached EUR150.4
million. The 62.9% ratio of bank debt to the value of the properties, transfer
taxes included, (LTV), corresponds to that of a young company that has not yet
had time for any sizable amortisation of its loans. No significant instalment of
debt is due before 2016. The average rate of the debt is 4% on conditions
prevailing as at end of December.

Most loans granted to AffiParis have financial covenants that provide for the
company's compliance with ratios: LTV or DSCR,, calculated in most cases on the
asset financed and for only one loan (in the amount of EUR15.1 million) on the
company balance sheet. All these ratios were complied with as of 31 December
2008 and to date.

A significant drop in the price of the share

Net Assets Value, based on the value (excluding transfer taxes) of the
properties, amount to EUR43.5 million (i.e. EUR15 per share) at the end of 2008,
a decline of 26.8% compared to the end of 2007, due to the negative adjustments
in fair value.

On 31 December 2008, the price of the AffiParis share was EUR9, i.e. a drop of
41% in one year. That price shows a discount of 40% compared to the NAV.

Nevertheless, in spite of a sharp increase in its operating income of EUR3.2m,
the individual statements for AffiParis SA show a loss due to provisions on the
shares of subsidiary companies whose assets posted a drop in their fair value,
and the high amount of its financial expenses. Because of the loss carried over,
a first dividend for 2008 cannot be distributed as planned. However, at the
Meeting of Shareholders of 27 April 2009 it will be proposed to consider
distributing an interim dividend for financial year 2009.

Future Outlook

The sudden deterioration in the markets has prevented AffiParis from fully
implementing the strategy defined during its launch and the company decided not
to make any new investments until the situation has stabilised, both in terms of
the supply of credit and in terms of the valuation of the Paris properties.
Disposals of regional assets will be carried over in the year. The 2009
financial statements should reflect the favourable trend in interest rates, as
well as a slight increase in the annual amount of rents, and therefore a better
result.


Consolidated Result (EURm)         31 December 2007  31 December 2008
                                     (9 months)

Operating margin(1)                  5.3                10.2
Financial income(1)                 (4.6)               (7.7)
Operating costs and miscellaneous   (1.7)               (0.8)
Corporate income taxes              (0.4)                0.0
Current income                      (1.4)                1.7
Capital gains on disposal            0.0                (0.5)
Current income after disposals      (1.4)                1.3
Change in fair value of properties   0.1               (10.0)
Change in fair value of 
financial instruments                0.5                (6.7)
Miscellaneous non-operating          0.0                (0.2)
Deferred taxes net of exit tax       9.0                 1.1
Net book income                      8.2               (14.6)

(1) excluding change in fair value

About AffiParis

AffiParis is specialised in commercial property investment in Paris, and aims at
building a portfolio ofgood quality and high yield assets. AffiParis is listed
on Compartment C of NYSE Euronext Paris and opted for the REIT status (SIIC) on
1 April 2007. Affine is the reference shareholder ofAffiParis. The rest ofthe
company's capital is owned by the public.ISIN Code: FR0010148510

CONTACTS 

AFFIPARIS:
Alain Chaussard
Tel. + 33(0)1 44 90 43 10 - [e-mail]

Antoine-Pierre de Grammont, Corporate communication officer
Tél. + 33 (0)1 44 90 43 53 - [e-mail]

CITIGATE DEWE ROGERSON - Press Relations
Nicolas Castex - Agnès Villeret
Tel. + 33(0)1 53 32 78 88/95 - [e-mail] or
[e-mail]


SOCIÉTÉ ANONYME AU CAPITAL DE 15.011.640 EUROS - SIEGE SOCIAL : 
4 SQUARE EDOUARD VII, 75009 PARIS
TÉL.: [phone] - TÉLÉCOPIEUR : 01 44 90 01 48 - EMAIL : [e-mail]
RCS PARIS B379 2 19 405 - TVA INTRACOMMUNAUTAIRE FR32379219405
                      
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