French listed property giant Foncière des Régions (FdR) said it swung to a net profit of €340 mln in 2013 from a loss of €26 mln in 2012.

French listed property giant Foncière des Régions (FdR) said it swung to a net profit of €340 mln in 2013 from a loss of €26 mln in 2012.

The positive result was largely due to a strong performance over the year and the positive impact of the fair value adjustment of financial instruments, FdR said.

Despite the impact of disposals, rental income increased by 4.8% to €526 mln, or 2.1% on a like-for-like basis. EPRA recurring net income came to €297 mln, up 1.7% on the previous year's figure, largely as a result of the positive impact from like-for-like rental income, the strengthening of the German market and a drop in the cost of debt (3.9% for 2013).

For 2014, the company is forecasting a stable EPRA recurring net income per share.

FdR, which owns some €16 bn of assets in France, Germany and Italy, is proposing a dividend for 2013 of €4.20 per share, representing a distribution rate of 84%.

'The FdR transformation process, emphasising high-quality properties and attractive markets, offers a sound basis for the ongoing growth of our activities and our results,' commented CEO Christophe Kullmann.

The company, which specialises in offices in France and Italy, hotels in France and residential in Germany, has divested over €2 bn of assets since announcing a refocusing of the business in 2008.

As part of the portfolio restructuring programme, FdR is focusing on green assets in strategic growth locations and strengthening partnerships with its major tenants including EDF, Orange, IBM, Telecom Italia, Suez Environnement, Eiffage, AON, Thales, Dassault Systèmes, and Nokia.