French REIT Reports 4% Rise in Rental Income

PARIS-French REIT/SIIC Foncière des Régions reported strong rental income for the first nine months of 2009, a rise of 3.8% like-for-like against the 2008 period, to a total of €773 million.

The company said this confirms its business model as a real estate partner to large concerns, giving strong revenue visibility, as well as solid fundamentals in occupancy and tenant solvency despite a still-depressed economic climate. Group share revenue came in 2.1% at €488 million, down from the same period 2008 due to disposals. These were partially offset by an increase in shareholding in Italian subsidiary Beni Stabili.

“The good indicators we are getting from asset management confirm the soundness of our overall business model,” says CEO Christophe Kullman. “Foncière des Régions continues to benefit from the quality of its portfolio of offices leased to large commercial groups. We have also decided to restart a measured acquisitions policy to support the group’s characteristics as an income-generating property concern.”