Société Foncière Lyonnaise (FLY) Q4 2023 earnings summary

Executive summary

• 2023 rental income rose 14.6% reported and 8.5% like-for-like; physical occupancy reached a record 99.7%, including 100% for offices.

• Adjusted operating profit increased 17.4% to €201.6m and EPRA earnings rose 1.7% to €109.9m, while the year ended with a €638.8m attributable net loss.

Financial highlights

• Rental income increased to €234.4m from €204.5m; like-for-like growth included €9.0m from rent escalation clauses.

• Adjusted operating profit was €201.6m, up 17.4%; EPRA earnings were €109.9m, up 1.7%, and EPRA earnings per share reached €2.56.

• Attributable net loss was €638.8m versus €143.4m net profit in 2022, reflecting €960.3m negative fair-value adjustments to investment property.

• Net finance costs rose to €56.0m from €31.6m, primarily due to higher interest rates and increased debt.

Outlook and guidance

• The Board will recommend a €2.40-per-share dividend at the AGM on 16 April 2024, following the €4.20-per-share dividend paid in April 2023.

• Redevelopment of the Scope office building is underway, with delivery scheduled for early 2026; management plans to continue balance-sheet strengthening and targeted Paris asset value creation.