Société Foncière Lyonnaise (FLY) Q2 2025 earnings summary

Executive summary

• Rental income rose 0.8% year-over-year to €122.6m, with EPRA earnings up 7.4% to €64.5m and net profit up 30.4% to €100.0m.

• Portfolio value increased 1.0% to €7,650m, with physical occupancy at 99.1% and economic occupancy at 99.3%.

• Record-high average headline rents for new leases above €1,000/sq.m, with strong demand for prime Paris offices.

• Major redevelopment projects (Scope, Condorcet, Haussmann Saint-Augustin) progressing, with phased deliveries through 2027.

• Merger with Colonial approved by shareholders and boards, completion expected October 2025.

Financial highlights

• EPRA NTA per share at €85.0 (down 3.4% over six months); NDV per share at €86.0 (down 1.1%).

• EPRA earnings per share increased 7.2% to €1.50; average number of shares 42,970.

• LTV (incl. transfer costs) at 34.3%, average debt maturity 3.8 years, interest cover 3.7x, and average spot cost of debt 2.2%.

• Adjusted operating income at €108.2m, down 1.5% year-over-year.

• Dividend of €2.85/share paid in April 2025.

Outlook and guidance

• Merger with Colonial expected to close in October 2025, pending Spanish regulatory approval.

• Development pipeline offers €79m annual reversionary potential, up €13m since December 2024.

• Redevelopment pipeline and high occupancy rates support strong cash flow visibility and rental growth.

• Future supply in Paris region expected to decrease by 2027 due to low building permit issuance.

• No significant changes in risk mapping; macroeconomic and real estate market uncertainties persist.