Relations presse immobilier
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12 Apr 17

SFL – First-Quarter 2017 Financial Information

Rental income: €49.0 million, up 4.1% on a comparable portfolio basis

SFL – First-Quarter 2017 Financial Information


Rental income: €49.0 million, up 4.1% on a comparable portfolio basis


Consolidated revenue by business segment (€000's)




Q1 2017

Q1 2016

Rental income




Paris Central Business District




Paris Other




Western Crescent



Other revenue



Total consolidated revenue





SFL's consolidated rental income rose by 0.7% to €49.0 million in first-quarter 2017 from €48.6 million in the same period of 2016:


-  On a comparable portfolio basis, rental income grew by €1.8 million (up 4.1%). The increase was attributable to leases signed during 2016, mainly concerning the and Washington Plaza buildings.


-  Changes in assets under redevelopment between the two periods had a €2.0 million negative impact on rental income, with several floors of offices in the Cézanne Saint-Honoré complex and other properties taken off the market for extensive renovation after tenants moved out in 2016.


-  Lastly, in first-quarter 2017 SFL received a lease termination penalty from a tenant representing net income of €0.5 million.


During first-quarter 2017, leases were signed on over 6,000 sq.m. Office space accounted for half of the total, including two leases on over 1,000 sq.m. in the 103 Grenelle and Cézanne Saint-Honoré buildings. The average nominal rent for the new office leases was €714 per sq.m. and the effective rent was €612 per sq.m.


The occupancy rate for revenue-generating buildings remained high, at 94.4% as of 31 March 2017 versus 97.0% as of 31 December 2016, while the EPRA vacancy rate stood at 4.8%.

On 13 January 2017, SFL entered into a €165-million deal to acquire SMA's historical headquarters building  in the 15th arrondissement of Paris. The 21,000-sq.m. property will be redeveloped to create a major new business centre in the west of the capital. Contracts will be exchanged when SMA moves to its new headquarters in the fourth quarter of 2017 (for more details, see the press release dated 16 January 2017).


No properties were divested during the first quarter of 2017.


SFL's consolidated net debt at 31 March 2017 remained stable at €1,920 million compared to €1,931 million at 31 December 2016. This represented a loan-to-value ratio of 31.5% based on the portfolio's appraisal value at 31 December 2016.


At 31 March, 2017, SFL also had €510 million in undrawn lines of credit.