Société Foncière Lyonnaise (FLY) Q2 2024 earnings summary

Executive summary

• Portfolio valuation rebounded by 1.0% over 6 months after a prolonged decline, supported by strong leasing and favorable Paris market conditions.

• EPRA earnings per share rose 12.9% to €1.40, with recurring net income up 13.0% to €60.1m.

• Occupancy rate remained exceptionally high at 99.8%, with new leases at record office rents.

• Attributable net profit reached €76.7m, reversing a loss of €177.5m in H1 2023.

• All ESG targets linked to green financing were met, with 100% of assets certified and improved GRESB score.

Financial highlights

• Portfolio value (excl. duties): €7,406m (+1.0% at constant scope); average office value: €19,700/m².

• Revenue increased 14.0% to €127.0m; rental income up 9.2% to €121.6m.

• EPRA NTA: €3,649m (€85.0/share); EPRA NDV: €3,673m (€85.5/share), with NTA down 2.9% after dividend payout.

• Net debt increased to €2,688m; LTV at 34.0%; Interest Coverage Ratio at 3.5x.

• EPRA topped-up NIY: 3.8%; EPRA vacancy rate: 0.2%

Outlook and guidance

• Management expects continued positive rental dynamics in Paris, focusing on value from project deliveries and asset management.

• Major development projects (Scope, Condorcet) are on track, with phased deliveries through 2026 and 2027.

• Ongoing redevelopment and a robust pipeline are expected to support future growth.