FDR sees 2009 losses narrow to EUR 262m

French office-focused group Fonciere des Regions reporeted losses narrowed to EUR 262 mln in 2009, from EUR 556.5 mln a year before. The Metz-based property group saw its net asset value (NAV) drop 18% year-on-year, mostly reflecting writedowns in the first half of the year. In H2 2009, NAV increased by EUR 370 mln to EUR 4 bn, or EUR 79.2 per share.

The value of FDR's properties fell by 3.6% or EUR 398 mln in 2009, with the bulk of the writedowns reported in the first half of the year.

Revenue dropped 9% to EUR 633 mln at end-2009 from EUR 697 mln a year before following asset sales aimed at reducing the company's debt. The company divested EUR 751 mln of properties last year, exceeding its target of EUR 500 mln. As a result, FDR was able to reduce its debt of EUR 1 bn, with an LTV of 58.8% at end-2008 to an LTV of 55.6% at end-2009.

FDR will pay a dividend of EUR 3.3 a share plus six shares of Beni Stabili, its Italian office property arm. The distribution of Beni Stabili shares as dividend will lower FDR's stake in Beni Stabili to 52.5% from 68%, paving the way for the conversion of the Italian unit to the tax-efficient SIIQ status.

'Considering the growth opportunities in the Italian market, adopting a tax-transparency status (SIIQ), synonymous with exemption from income taxes, is a major asset to the company,' FDR said on Monday.

'After 10 years of growth and the good resistance of its busines model in 2009, FDR wishes to consolidate its real estate position focused on commercial real estate and large clients,' said CEO Christophe Kullmann. The company will seek growth in its net recurring income as its objective in 2010, Kullmann added.

At the end of 2009 FDR controlled EUR 13.2 bn of real estate in France, Italy and Germany through its participations in Beni Stabili; Fonciere des Murs; Fonciere Europe Logistique; Fonciere Developpement Logements; Altarea and Parcs GFR.