FREY (EPA:FREY) - Outperformance of FREY’s open-air shopping centres

Transparency directive : regulatory news

23/09/2021 17:00

Bezannes, 23 September 2021 - 2021 half-year results - 5:00 pm

                Outperformance of FREY's open-air shopping centres

                         Rental income: EUR32.4m (+21%)
                        H1 2021 collection rate(1): 84%
                   Excellent financial occupancy rate: 97.8%
               Profit from recurring operations: EUR23.0m (+44%)

               EPRA NTA(2): EUR31.2 per share (-2.2% vs dec 2020)
  after taking into account the dividend payment of EUR1.50/per share in June

                   LTV ratio including transfer tax: 35.4%
                       Available liquidity: EUR182.8(3)

FREY confirms its responsible and pioneering approach by becoming the 1st
French real estate company to adopt "société à mission" status
and the 1st listed company to obtain the highly demanding international B Corp
certification

" FREY is pursuing its strategy very actively despite a context still
disrupted by the health crisis. The very limited impact on the collection
rate, the delivery of more than 100,000 m2 fully marketed, are the
demonstration of the relevance of our open-air shopping centres: more
sustainable, more practical, more user-friendly for consumers and more
efficient for retailers. This semester has also enabled us to transform FREY
into a "société à mission" and to obtain the highly demanding B CORP
certification, a first in France for a listed company. We are thus giving all
our stakeholders the guarantee of the level of excellence of our Environmental,
Social and Governance (ESG) commitments but also to always develop, invest and
manage a business as a service for common good. " Antoine Frey, Chairman and
CEO.

(1) Rents and charges collected compared to rents and charges invoiced (Group
share).
(2) EPRA NTA (Net Tangible Assets) calculated according to the standard
developed and published by the European Public Real Estate Association (EPRA)
and applicable to financial years beginning on or after 1 January 2020.
(3) EUR130 million in corporate facilities and EUR52.8 million in available
cash.

Key figures - In EUR million - 6 months
                                     30.06.2020  30.06.2021  Change
Consolidated revenue                     40.1        42.3      +5%
o/w property investment business
(gross rental income)                    26.7        32.4     +21%
Operating profit from recurring
operations                               16.0        23.0     +44%
Change in fair value of investment
property                                (15.6)        7.9      N/A
Net income Group Share                   (3.3)       25.0      N/A

Balance sheet indicators - In EUR million
                                    31.12.2020   30.06.2021  Change

EPRA NDV (Net Disposal Value)           767.4       765.4    -0.3%
Per share:                          EUR 31.20   EUR 30.70    -1.6%
EPRA NTA (Net tangible Asset)           784.7       780.1    -0.6%
Per share:                          EUR 31.90   EUR 31.20    -2.2%
LTV (including transfer tax)            32.4%       35.4%   +300 bp

On 23 September 2021, the FREY Board of Directors approved the consolidated
financial statements for the six months ended 30 June 2021. The half-year
financial statements were subject to a limited review by the statutory
auditors. The statutory auditors' reports on the half-year financial
information were issued without reservation.

SIGNIFICANT EVENTS SINCE THE BEGINNING OF THE FINANCIAL YEAR

* A more limited impact of COVID-19 related operating restrictions on open-air
shopping centres than on shopping malls

The third wave of the COVID-19 pandemic continued to disrupt our tenants'
business with an average of 1.9 months of closures in the first half of 2021 in
the three countries in which the Group operates (France, Spain and Portugal).

The Group has not renewed the support fund deployed in 2020, given the upcoming
aid announced by the French government. As a result, the rental collection
rate(4) for the first half of the year was 84%(5) (93% in Q1 and 76% in Q2).
Overall, the impact of the health crisis on the income statement as at 30 June
2021 amounts to -EUR3.2 million(6).

Excluding periods of closure, FREY's assets have retained their full appeal.
The open-air Shopping Promenade concept combined with a comprehensive
merchandising mix (fashion, beauty, sports, DIY, gardening, restaurants,
leisure, free play areas, services, click & collect, for families) is perfectly
aligned with consumers' needs.

As a result, on a like-for-like basis, the main performance indicators for
shopping centres in France are higher than those recorded over the comparable
period in 2019:

- footfall increased 7% between mid-May and end-June 2021 and 3% between
mid-May and end-August, on a like-for-like basis, compared to the comparable
periods in 2019. Open-air shopping centres are not affected by the
implementation of the sanitary pass;
- tenant's sales saw a sharp rise of 20% between mid-May and end-June 2021
versus 2019, with the trend remaining strong in July and August.

* Successful opening of two Shopping Promenade

(4) Rents and charges collected compared to rents and charges invoiced (Group
share).
(5) This collection rate reached 95% for the year 2020.
(6) The impact was recognised in revenue for -EUR3.2 million, in other income
for EUR0.5 million, in other operating expenses for -EUR0.6 million and in net
income from non-controlling interests for EUR0.1 million.

In the first half of the year, FREY inaugurated two new open-air shopping
centres in mid-March, totalling 111,000 m2 and representing a total investment
of EUR232 million:

- Shopping Promenade Claye-Souilly (77): enjoying a merchandising mix combining
the major worlds of retail (fashion, furniture and decoration, culture and
leisure) through 55 stores, cafés and restaurants and 9,000 m2 of leisure
activities (cinema, indoor go-carting, bowling, laser game, etc.). It also
offers two spacious free play areas and a Social Club (House of culture &
associations), in a green environment decorated by large street-art works on
the façade;

- Shopping Promenade Coeur Alsace in Strasbourg-Vendenheim (67): Here again,
the retail offer is diversified, with 86 international, national and local
brands. The Promenade provides numerous social areas: fountains, picnic and
birthday tables, participatory libraries, terraces, petanque, hopscotch,
mini-golf and a small planted maze for children, along with two large play
areas with ping-pong tables, table football, a Ferris wheel and a carousel. In
addition to the Social Club, it offers an agripark (5 hectares of land
cultivated by a collective of local producers) and the first Social Market
developed by FREY. This new solidarity store concept, entirely dedicated to
giving a second life to products, is run by associations promoting the social
and inclusive economy and local businesses to facilitate recycling and support
integration through employment.

The two sites have opened with a particularly high combined sales rate of
98.5%, a sign of the confidence that retailers have in the Shopping Promenade
concept, both on the part of the traditionally successful brands for this type
of asset (Decathlon, Kiabi, Boulanger, Leroy Merlin), and for new retailers
attracted by the format (Fnac, Nature & Découvertes, Cultura, Nocibé,
Rituals, Nike, Adidas, Superdry, New Yorker, Etam, La Chaise Longue, Kusmi Tea,
Haribo, Starbucks, Big Fernand, etc.).

* FREY confirms its status as a pioneer in the real estate industry: 1st real
estate company to adopt "société à mission" status and 1st French listed
company to be B Corp certified

FREY is daily committed to a more responsible society, respectful of the
environment and socially beneficial to its ecosystem and its stakeholders. As
further proof of this commitment, in 2021 FREY became:

- the 1st real estate company to adopt "société à mission" status
integrating its mission statement "Restoring retail as a service for the common
good" into its by-laws,

- the 1st French listed company to obtain the highly demanding B CORP (Benefit
Corporation) certification after a rigorous and in-depth audit of the Group's
governance and social and environmental performance. The teams at B LAB, the
non-profit organisation in charge of certification, awarded FREY an outstanding
score of 102.2 points, which guarantees to all its stakeholders the level of
excellence of its Environmental, Social and Governance (ESG) commitment.

FINANCIAL PERFORMANCE IN THE 1st HALF OF 2021

* Change in the portfolio

As at 30 June 2021, FREY's economic portfolio(7) in operation:

- covers a surface area of 525,400 m2 (compared with 433,800 m2 at end-2020)
following the delivery of Shopping
Promenade Coeur Alsace and Shopping Promenade Claye-Souilly in March 2021,

- is valued at EUR1,225.6m excluding transfer tax (of which EUR229.9m
internationally), up 25.8% compared to the end of 2020 (EUR947.5m at 31
December 2020),

- for EUR74.7m in annualised gross rents (+26.4% compared to 31 December
2020),

- has a vacancy rate(8) of 2.2%, i.e. an occupancy rate of 97.8%, compared with
97.6% at the end of 2020.

(7) The economic portfolio in operation comprises assets that are wholly-owned
by FREY, plus assets held in partnership, in proportion to FREY's percentage
interest.
(8) Calculated in accordance with EPRA Best Practices Recommendations.

As at 30 June 2021, the total value of the portfolio (economic portfolio in
operation + projects underway for EUR49.0 million) was EUR1,274.6 million
(excluding transfer tax), compared with EUR1,249.7 million at the end of
2020.

At the end of July, FREY also completed its presence in the south-east of
France with the acquisition of the Carré Sud open-air shopping centre in
Nîmes (EUR85.7m investment for 34,500 m2, EUR5.4m annual rent and 100%
occupancy rate).

* Rental income: EUR32.4m (up 21%)

As at 30 June 2021, rental income from the consolidated portfolio amounted to
EUR32.4 million, representing growth of 21% compared to June 2020, benefiting
from the development of the real estate company's rental portfolio, mainly due
to the two deliveries made at the beginning of the year.

FREY's consolidated revenue rose by 5% to EUR42.3 million (compared with
EUR40.1 million in the first half of 2020).

* Profit from recurring operations: EUR23.0 million (+44%) - Net profit Group
Share: 25.0 million

Profit from recurring operations grew very sharply to EUR23.0 million at
end-June 2021, compared with EUR16.0 million in 2020, thanks to the increase in
the property investment business, as described above, and good control of
overheads.

Operating profit at EUR31.0m (compared with EUR0.1m in H1 2020) benefited from
a positive change in fair value of EUR7.9m related to recent deliveries (in H1
2020, operating profit was penalised by a negative change of EUR15.6m as a
direct consequence of the impact of the health crisis being taken into account
by the experts).

Consolidated net profit Group Share was EUR25.0 million at end-June 2021
(compared with -EUR3.3 million in June 2020), after taking into account the
share of profit of associates (EUR1.3 million), a cost of net debt of -EUR5.5
million and EUR1.1 million in income taxes.

* Net asset value: EPRA NTA(9) per share to EUR31.2/share (-2.2%) after payment
of the 2020 dividend of EUR1.50/share

The Group's shareholders' equity was stable compared to 31 December 2020 at
EUR821.3 million, with earnings for the period offsetting the payment of the
2020 dividend(10) which took place on 4 June 2021. On that date, the company
made a partial payment of its dividend in shares (option subscribed to by
92.95% of shareholders), thereby enabling it to retain EUR10.3 million in
equity.

As a result, the EPRA NTA (Net tangible assets) (excluding transfer tax) was
EUR780.1 million at the end of June 2021, compared with EUR784.7 million at 31
December 2020 (-0.6%), and given the increase in the number of shares
outstanding, the EPRA NTA was EUR31.2/share, compared with EUR31.9/share at the
end of 2020 (-2.2%).

* Strong financial structure

The consolidated LTV ratio including transfer tax was 35.4%, compared with
32.4% at the end of 2020. The Group maintains a comfortable LTV level, in a
context of strong development activity.

At the end of June 2021, the Group's bank debt amounted to EUR573.2 million
(including EUR460.9 million in corporate lines) and FREY had EUR182.8 million
in liquidity, consisting of EUR130.0 million in undrawn cash lines and EUR52.8
million in cash and cash equivalents. The maturity of the bank debt amounts to
4.1 years (compared with 4.5 years at end-2020).

(9) EPRA continuation NAV, or EPRA NTA (net tangible assets) NAV.
(10) Payment of the dividend in cash for a total amount of EUR26.6 million and
creation of 359,524 new shares under the option for partial payment of the
dividend in shares (92.95% subscribed), thereby retaining equity by EUR10.3
million.

After taking interest rate hedges into account (hedging rate of 83.4%), the
average interest rate on bank debt based on market conditions at 30 June 2021
amounted to 1.18%, (compared with 1.48% at 31 December 2020), i.e. a decline of
30 bp.

2021 OUTLOOK

Over the next 12 months, the Group will pursue its growth strategy based on the
development of retail assets perfectly suited to the health context (open-air
retail, optimal value for consumers and retailers, user-friendliness and
support for the local economic fabric) with the launch of three projects:
Village des Docks in Saint-Ouen, Shopping Promenade Lleida in Spain and Open
near the Swiss border (128,000 m2 (of which 111,000 m2 will be retained as an
asset), EUR370 million in investment and EUR25.5 million in annual rental
income in total).

This press release is available on the website frey.fr/en under Finance /
Results and Press Releases
The half-year financial report is available (in French version) under Finance /
Regulatory Information

About FREY

A planner, developer, investor and manager, FREY is a real estate company
specialising in the development and operation of open-air shopping centres. A
pioneer in environmentally friendly retail parks (with its Greencenter?
concept) and inventor of next generation "Feel Good" open-air shopping centres
(Shopping Promenade?), the "entreprise à mission", B CORP certified FREY is
fully engaged in a more responsible, greener society that is socially
beneficial to its ecosystem and its stakeholders. As the company knows just how
essential it is to urban diversity, social contact, local economic resilience
and environmental transition, its mission is to restore retail as a service for
the common good.
FREY also supports major urban regeneration operations and mixed-use projects
through its dedicated subsidiary CITIZERS.
FREY is listed on compartment B of Euronext Paris. ISIN: FR0010588079 - Mnemo:
FREY

CONTACTS:
Sébastien Eymard - Chief Executive Officer
Mathieu Mollière - Director of Communications, Marketing and Innovation -
Tel.: + 33 (0)3 51 00 50 50

Victoire Birembaux - Head of Corporate Communications and Public Relations
v.birembaux@frey.fr - Tel.: +33 (0)6 07 35 64 04

Agnès Villeret - Investor relations and financial press - KOMODO
KOMODO - agnes.villeret@agence-komodo.com - Tel.: + 33 (0)6 83 28 04 15

APPENDICES - Financial statements as at 30 June 2021

* Figures relating to the portfolio in operation (in EUR million, excluding
transfer tax)

In EUR million (Excluding transfer tax) 30.06.2021

ASSET In EUR million            30.06.2021   31.12.2020
Non-current assets                1,403.7     1,367.6
of which Investment property      1,350.7     1,316.2
Of which shares of associates        17.8        16.9
Current assets                      164.5       171.5
of which Cash and cash equivalents   52.8        56.2
Assets held for sale                 21.9        17.7

EQUITY AND LIABILITIES In EUR million
Equity                              821.3       822.4
Non-current liabilities             636.5       573.9
of which long-term financial debt   611.6       549.2
Current liabilities                 124.1       149.4
of which short-term financial debt
(including bond issues)             27.4         27.8
Liabilities related to assets
held for sale                        8.2         11.1
Total statement of financial
position                         1,590.1      1,556.8

  IFRS consolidated cash flow statement

In EUR million                     30.06.2021    31.12.2020

Cash flow from operations             23.4          37.7
Dividends received from associates     -            10.5
Tax paid                              (0.9)         (1.7)
Change in working capital
requirement related to the activity   (2.6)         (8.7)
Net cash generated by operating
activities (1)                        19.9          37.8
Fixed asset acquisitions             (46.0)        (83.2)
Change in loans, advances and other
financial assets                       0.2         (11.9)
Fixed asset disposals                 17.8           3.1
Impact of change in consolidation
scope and miscellaneous              (14.0)        (14.6)
Change in other investments             -            0.6
Net cash flow from investment
activities (2)                       (42.0)       (106.0)
Dividends paid to shareholders of
the parent company                   (26.6)        (25.7)
Capital increase                        -            -
Net sale (acquisition) of treasury
shares                                (0.1)         (6.4)
Increase in borrowings               110.3         152.2
Repayment of loans (including
finance leases)                      (59.3)        (84.2)

Repayment of lease liabilities        (0.5)         (0.9)
Interest paid (including on lease
obligations)                          (4.9)         (8.3)
Change in other financing                -            -
Net cash related to financing (3)     18.9          26.7
Change in cash (1+2+3)                (3.2)        (41.4)

Net asset value (NAV)

The Group presents the EPRA NRV (Net Reinstatement Value), the EPRA NTA (Net
Tangible Assets) and the EPRA NDV (Net Disposal Value) as defined by the EPRA
recommendations for financial years beginning on or after 1 January 2020.

In EUR million                30.06.2021   31.12.2020    Change
EPRA NDV                        765.4       767.4       -0.3%
per share (EUR)                    30.7        31.2       -1.6%
EPRA NTA                        780.1       784.7       -0.6%
per share (EUR)                    31.2        31.9       -2.2%
EPRA NRV                        833.6       831.1        0.3%
per share (EUR)                    33.4        33.8       -1.2%
Diluted number of shares   24,962,787  24,603,263
Number of shares and
treasury shares held in
the liquidity contract         22,316      15,127
Corrected number of shares 24,940,471  24,588,136

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28/02/2024 17:00

FREY (EPA:FREY) - Outperformance of FREY’s open-air shopping centres

Transparency directive : regulatory news

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