REGULATED INFORMATION
13 August 2024
INTERIM STATEMENT AT 30 JUNE 2024 THIRD QUARTER OF FINANCIAL YEAR 2023/2024
97.7%
EPRA OCCUPANCY
RATE
6.94%
GROSS YIELD ON THE
PORTFOLIO
+0.2%
CHANGE IN FAIR
VALUE OF THE
PORTFOLIO
93.0%
INTEREST RATE HEDGING RATIO
2.20%
AVERAGE COST OF
DEBT
SOLID OPERATING PERFORMANCE
OPERATING RESULTS
- Rental income: €39.9 million, up by 4.1%compared with €38.3 million at 30/06/2023
- EPRA Earnings: €27.9 million, up by 4.2% compared with €26.8 million at 30/06/2023
- EPRA Earnings per share: €4.23 (vs €4.06 at 30/06/2023)
- Net result: €21.0 million (vs €33.2 million at 30/06/2023), the decrease being solely due to the revaluation difference compared to 30/06/2023 (-€6.9 million vs +€6.8 million)
BALANCE SHEET INFORMATION
- Fair value of the real estate portfolio: €743.0 million (vs €740.9 million at 30/09/2023)
- Debt ratio (EPRA LTV): stable at 43.4% compared to 30/09/2023
- Net asset value (EPRA NTA) per share: €63.88 (vs €63.59 at 30/09/2023)
GENERAL CONTEXT AND SUMMARY OF ACTIVITY
Over the past quarter, the financial markets continued to be marked by a trend towards normalisation of inflation levels, although without the expected stabilisation around 2%, and by the prospect of a further decrease in interest rates, the expected pace of which depends on the publications of the main macroeconomic indicators.
In this context, which points to an economic recovery on a time horizon that is still uncertain, property markets remained relatively calm, both in terms of letting and investment.
In terms of rental activity, Ascencio signed 1 new lease and 3 lease renewals, bringing the total number of leases signed since the start of the financial year to 15 (4 new and 11 renewals), for a total leasable area of over 12,000m², as well as 10 short-term leases. On average, since the start of the financial year, the rental levels on signed leases are around 15% higher than market rental values and around 4% lower than previous rents for the commercial units concerned. On this basis, the EPRA occupancy rate at 30/06/2024 was 97.7% (vs 97.9% at 30/09/2023).
In France, Ascencio acted the transfer of the operations of its Casino supermarkets to Intermarché and Auchan as follows : the shops in Le Rouret, Marseille, Antibes and Aix-en-Provence by Intermarché, and the Mouans- Sartoux store by Auchan.
This takeover strengthens Intermarché's share within Ascencio's portfolio and further enhances the quality of its tenants. This solid and fast-growing food retailer is now representing around 18% of the Company's rental income.
In terms of investments within its portfolio, the Company namely continued its roof renovation program and the refurbishment work of its head office, bringing the total amount invested since the start of the financial year to €2.2 million.
Furthermore, Ascencio continued to roll out its ESG policy, notably by the installation of charging points in the car parks of its French buildings (260 charging points at completion) and by organising new sessions of the "Ascencio Academy", an ongoing training programme for its teams. In addition, for the third year running, Ascencio published its sustainability report according to the EPRA guidelines.
The Company also successfully switched over from its previous IT tools to its new integrated rental management and accounting system, enabling it to continue the process of automating its property analysis and reporting systems, for which a request for proposals has been issued.
In terms of property portfolio valuations, Ascencio recorded a positive change in value of €3.6 million over the past quarter, mainly due to the continuing favourable impact of rising market rental values, bringing the change in value to €1.7 million (+0.2%) since the beginning of the financial year.
In terms of financial management, Ascencio continued refinancing discussions with its banking partners and concluded a €10 million credit line renewal, bringing the total amount of new financing to €60 million since the start of the financial year.
These new credit lines will enable the Company to maintain the average residual duration of its debt above 3 years (3.1 years compared to 3.4 years at 30/09/2023) and to benefit from available credit lines totalling €88 million at 30/06/2024 (after deducting the back-up of commercial papers issued and a reservation for a pro rata dividend for the current financial year).
Ascencio also restructured IRSs for a total nominal amount of €20 million as part of its interest rate hedging policy. At 30/06/2024, the Company had a hedging ratio of 93.0% (vs 95.0% at 30/09/2023).
Taking these transactions into account, the Company's average cost of debt was 2.20% at 30/06/2024 (vs 2.02% at 30/09/2023), for an average debt of €320.6 million. This marginal increase in the average cost of debt, despite the significant interest rates rise over the past 2 years, illustrates the effectiveness of the hedging strategy implemented by Ascencio.
|
Press release ● 2 |
CONSOLIDATED RESULTS FOR THE FIRST THREE QUARTERS OF FINANCIAL YEAR 2023/2024
Consolidated income statement at 30 June 2024
|
(€000s) |
30/06/2024 |
30/06/2023 |
|
|
|
|
|
RENTAL INCOME |
39,938 |
38,348 |
|
|
|
|
|
Rental related charges |
-160 |
-201 |
|
|
|
|
|
Recovery of property charges |
570 |
818 |
|
|
|
|
|
Rental related charges and taxes not recovered |
-19 |
-30 |
|
|
|
|
|
Other revenue and rental related charges |
-92 |
181 |
|
|
|
|
|
PROPERTY RESULT |
40,238 |
39,116 |
|
|
|
|
|
Property charges |
-3,187 |
-3,599 |
|
|
|
|
|
Corporate overheads |
-3,683 |
-3,423 |
|
|
|
|
|
Other operating income and charges |
11 |
1 |
|
|
|
|
|
OPERATING RESULT BEFORE PORTFOLIO RESULT |
33,379 |
32,095 |
|
|
|
|
|
Operating margin |
83.6% |
83.7% |
|
|
|
|
|
Financial income |
303 |
0 |
|
|
|
|
|
Net interest charges |
-4,908 |
-4,545 |
|
|
|
|
|
Other financial charges |
-588 |
-512 |
|
|
|
|
|
Taxes |
-297 |
-273 |
|
|
|
|
|
EPRA EARNINGS |
27,889 |
26,765 |
|
|
|
|
|
Result on sales of investment properties |
1 |
0 |
|
|
|
|
|
Change in fair value of investment properties |
1,700 |
8,648 |
|
|
|
|
|
Change in fair value of financial assets and liabilities |
-8,594 |
-1,886 |
|
|
|
|
|
Deferred tax |
-25 |
-289 |
|
|
|
|
|
NET RESULT |
20,970 |
33,239 |
|
|
|
|
|
|
|
|
|
EPRA Earnings per share (€) |
4.23 |
4.06 |
|
|
|
|
|
Net result per share (€) |
3.18 |
5.04 |
|
|
|
|
|
|
|
|
|
Number of shares |
6,595,985 |
6,595,985 |
|
|
|
|
|
Press release ● 3 |
Rental income came to €39.9 million, up 4.1% compared with the same period of previous financial year (like-for- like: +4.5%), mainly due to the impact of rent indexation and the increase in the portfolio's average occupancy rate over the two periods under review.
|
RENTAL INCOME (€000s) |
30/06/2024 |
|
30/06/2023 |
Δ % |
|
|
|
|
|
|
|
Belgium |
57% |
22,417 |
21,372 |
4.9% |
|
|
|
|
|
|
|
France |
41% |
16,054 |
15,429 |
4.1% |
|
|
|
|
|
|
|
Spain |
3% |
1,467 |
1,546 |
-5.1% |
|
|
|
|
|
|
|
TOTAL |
100% |
39,938 |
38,348 |
4.1% |
|
|
|
|
|
|
The property result was €40.2 million, up from €39.1 million at 30/06/2023.
Property charges were down, largely due to lower technical costs within the portfolio, while corporate overheads were slightly up, mainly due to the strengthening of the team and costs of structure.
Taking these factors into account, operating result before portfolio result rose by 4.0% (€33.4 million vs €32.1 million).
The financial result was down by 2.7%, mainly due to the increase in interest expense on borrowings. However, this was largely offset by the income generated by the hedging instruments held by the Company.
Considering these movements, EPRA Earnings came to €27.9 million at 30/06/2024, up by 4.2% compared with €26.8 million generated at 30/06/2023. This takes EPRA Earnings per share to €4.23, compared to €4.06 for the first three quarters of the previous year.
The property portfolio was positively revaluedby +€1.7 million (+0.2%) at 30/06/2024 (vs + €8.6 million / +1.2% at 30/06/2023). Based on these values, the portfolio's gross yield was 6.94% at 30/06/2024 (vs 6.71% a year earlier).
The revaluation of hedging instruments amounted to -€8.6 million at 30/06/2024, (vs -€1.9 million for the same period of previous financial year). These valuations depend on the outlook for interest rates, which have been decreasing overall for several quarters.
Lastly, the net result was €21.0 million at 30/06/2024, compared to €33.2 million at 30/06/2023, or €3.18 and €5.04 per share respectively. This decrease is exclusively due to the revaluation differences described above.
|
Press release ● 4 |
Consolidated balance sheet at 30 June 2024
|
(€000s) |
30/06/2024 |
30/09/2023 |
|
|
|
|
|
ASSETS |
782,852 |
786,469 |
|
Intangible assets |
457 |
236 |
|
|
|
|
|
Investment properties |
743,002 |
740,856 |
|
|
|
|
|
Other tangible assets |
888 |
49 |
|
|
|
|
|
Other non-current assets |
22,023 |
30,670 |
|
|
|
|
|
Current financial assets |
1,616 |
867 |
|
|
|
|
|
Trade receivables |
2,222 |
5,556 |
|
|
|
|
|
Cash and cash equivalents |
3,862 |
5,423 |
|
|
|
|
|
Other current assets |
8,782 |
2,811 |
|
|
|
|
|
EQUITY AND LIABILITIES |
782,852 |
786,469 |
|
Equity |
438,374 |
444,763 |
|
|
|
|
|
Non-current financial debts |
203,010 |
262,670 |
|
|
|
|
|
Other non-current financial liabilities |
3,520 |
2,806 |
|
|
|
|
|
Deferred tax liabilities |
6,304 |
6,085 |
|
|
|
|
|
Current financial debts |
117,600 |
57,829 |
|
|
|
|
|
Other current liabilities |
14,045 |
12,316 |
|
|
|
|
|
Liabilities |
344,478 |
341,706 |
|
|
|
|
|
|
|
|
|
IFRS NAV (€/share) |
66.46 |
67.43 |
|
EPRA NTA (€/share) |
63.88 |
63.59 |
|
|
|
|
|
Debt ratio (in accordance with the Royal Decree) |
43.4% |
44.0% |
|
EPRA LTV |
43.4% |
43.4% |
|
|
|
|
The value of the investment properties portfolio at 30/06/2024 was €743.0 million, up (including investments and divestment) by €2.1 million (+0.3%) compared to its value at 30/09/2023. The main impacts on this value since the start of the financial year are (i) investments (3 commercial units at Couillet - Belgium) and divestment (commercial complex at Jemappes - Belgium); (ii) renovation work carried out within the portfolio and finally (iii) changes in market value reflected by independent property valuers.
|
|
|
30/06/2024 |
|
30/09/2023 |
|
|
|
|
|
|
|
|
|
|
|
Investment properties |
% |
Fair Value |
Gross yield |
Fair Value |
Gross yield |
Δ Fair Value |
|
(€000s) |
(€000s) |
9m. 2023/2024 |
||||
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
BELGIUM |
54.8% |
406,799 |
7.15% |
404,493 |
7.23% |
1.1% |
|
FRANCE |
40.8% |
303,171 |
6.72% |
305,863 |
6.38% |
-1.0% |
|
SPAIN |
4.2% |
31,025 |
6.51% |
30,500 |
6.49% |
1.2% |
|
TOTAL PROPERTIES |
99.7% |
740,995 |
6.94% |
740,856 |
6.84% |
0.2% |
|
AVAILABLE FOR RENT |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development projects |
0.3% |
2,007 |
|
0 |
|
|
|
TOTAL INVESTMENT |
100.0% |
743,002 |
|
740,856 |
|
|
|
PROPERTIES |
|
|
|
|||
|
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Press release ● 5 |
Intangible assets include the costs of acquiring and implementing the new rental and accounting management system put in place by the Company, while other tangible assets mainly include the costs of refurbishing the new premises at the headquarters in Gosselies (Belgium).
Other non-currentassets and current financial assets include, for the most part and depending on their maturity, hedging instruments, the total market value of which is positive and amounts to €22.9 million at 30/06/2024.
Trade receivables are subject to constant monitoring and do not record any significantly overdue amounts at balance sheet date.
Other current assets increased significantly due to the application of the IFRIC 21 standard, which requires the full amount of taxes and rebilled taxes to be recognised on an annual basis. This increase is offset by an equivalent increase in other current liabilities.
The Company's equity stood at €438.4 million at 30/06/2024 (vs €444.8 million at 30/09/2023), impacted both by the net result generated during the financial year and by the 2022/2023 dividend distributed in February 2024. The IFRS net asset value per share is therefore €66.46, while the EPRA NTA per share is €63.88 (vs €67.43 and €63.59 respectively at 30/09/2023).
Lastly, total financial debts (current and non-current) amounted to €320.6 million at 30/06/2024, compared to €320.5 million at 30/09/2023.
The balance of other non-currentfinancial liabilities increased significantly due to the decline in value of certain hedging instruments, which now have negative values, while deferred tax liabilities increased following the acquisition of Holdtub SRL, the owner of 3 commercial units in the Couillet retail park (Belgium), which includes a tax latency.
At 30/06/2024, the EPRA LTV was 43.4%, stable compared to 30/09/2023, while the Company's debt ratio calculated in accordance with the Royal Decree on Belgian REITs was 43.4% and 44.0% respectively at these same dates.
CORPORATE GOVERNANCE
During the past quarter, the directorships of Stéphanie Boniface, Alexandra Leunen and Gérard Lavinay in Ascencio Management SA were renewed for a period of 1 year.
OUTLOOK
Thanks to its solid balance sheet and liquidity position, Ascencio remains alert to any investment opportunities that may arise, in a market still slowed down but offering good medium-term prospects, provided that the interest rates situation continues to ease. However, Ascencio will stick to its investment strategy by maintaining a selective approach to projects in its niche commercial property market (food and retail parks) which has been attracting increased interest from investors for some time now.
In view of the good results generated since the beginning of the financial year and assuming there is no substantial deterioration in the macroeconomic context, Ascencio believes that it will be able to distribute a dividend for the current financial year at least in line with that of the previous financial year.
FINANCIAL CALENDAR
|
Press release on annual results at 30 September 2024 |
28 November 2024 |
(5.40 p.m.) |
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|
Ordinary general meeting 2023/2024 |
31 January 2025 |
(2.30 p.m.) |
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Press release ● 6 |
AURORE ANBERGEN
Head of IR, Marketing & Communication Tel: +32 (0)71.91.95.23 aurore.anbergen@ascencio.be
CÉDRIC BIQUET
Chief Financial Officer
Tel: +32 (0)71 91 95 00
VINCENT H. QUERTON
Chief Executive Officer
Tel: +32 (0)71 91 95 00
ABOUT ASCENCIO
Ascencio SA is a company incorporated under Belgian law, specialising in commercial property investments, and more specifically, supermarkets and retail parks.
The Company is present in Belgium, France and Spain, respectively under the status of SIR, SIIC and SOCIMI.
With its multidisciplinary team, it manages its assets and its relations with its tenant-retailers in a responsible manner, particularly with regard to sustainability.
The fair value of its portfolio amounts to approximately €740 million, spread over a hundred or so real estate assets with a total surface area of around 450,000 m² and generating rental income of around €53 million a year.
Ascencio SA is listed on Euronext Brussels, with a market capitalisation of almost €300 million at 30 June 2024.
For more information, please visit www.ascencio.be
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Press release ● 7 |
Attachments
Disclaimer
Ascencio SCA published this content on 13 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2024 15:23:34 UTC.
