SFL: Payment of an Interim Dividend
Actualité publiée le 15/11/07 20:00
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Regulatory News:
The Board of Directors of SFL (Paris:FLY), chaired by Luis Portillo Muñoz,
met on 15 November.
During the meeting, the Board noted that the Paris office market is
holding up well in a difficult international environment.
The office rental market in the Paris Central Business District remains
robust, with the number of new leases signed since the beginning of the
year on a par with 2006 levels and with prime rents up slightly
year-on-year. Investment volumes are also in line with 2006, and with
demand remaining strong, prices in the Central Business District show no
signs of easing.
In this environment, the Company’s portfolio
of prime properties delivered increases in both revenues and market
values:
- Consolidated property rentals for the first nine months of the
year amounted to EUR 125.5 million compared with EUR 121.2 million
for the same period of 2006, an increase of 4.0%.
- The occupancy rate (excluding properties undergoing renovation)
stood at a very high 98.1% at 30 September. In particular, the
fully-renovated 12,000-square meter office complex at 104-110
boulevard Haussmann in the eighth arrondissement of Paris was let
under a 9-year lease starting on 15 August.
- Based on independent valuations, the market value of the property
portfolio at 30 September 2007 was EUR 3,897 million excluding
transfer costs, up 11% on a comparable portfolio basis from 31
December 2006.
- The increase compared with 30 June 2007 was 2% on a comparable
portfolio basis.
The loan-to-value ratio at 30 September stood at 23.6%, allowing the
Company to make future investments without weakening its financial
position.
At the same date, diluted NAV per share amounted to €59.2
excluding transfer costs (€64.0 including
transfer costs), up 2.5% compared with 30 June.
In light of this performance, the Board examined a proposal to pay an
interim dividend, in line with the Company’s
practice in prior years.
Under the new “SIIC 4”
tax rules, the Company will be liable for 20% withholding tax on
dividends paid to corporate shareholders that hold at least 10% of the
capital and are not taxed on dividends received from an SIIC.
The Board noted Colonial’s decision to
reimburse the total withholding tax that would be due by SFL on an
interim dividend paid by the Company, in order to avoid penalizing other
shareholders.
The Board also decided to recommend, at the next General Meeting of
Shareholders, a change in the Articles of Association to require any
shareholders concerned by these new rules to reimburse the withholding
tax to SFL.
On this basis, the Board decided to pay an interim dividend of €1.10
per share. The dividend will be paid on 19 November.
With an exceptional portfolio of properties valued at some €3.9
billion net of transfer costs, essentially located in the Paris Central
Business District, SFL is a preferred vehicle for investors wishing to
invest in the Paris office and retail property market. As the leading
player in this market, the Group is firmly focused on pro-actively
managing high-quality property assets. SFL has elected to be taxed as an
SIIC since 2003.
STOCK MARKET:
Eurolist Compartment A – Euronext Paris ISIN
FR0000033409 – Bloomberg: FLY FP –
Reuters: FLYP PA
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