Fonciere Massena, the real estate investment arm of Groupe des Assurances du Crédit Mutuel, saw its net profit drop by 35% in the first half of 2010, mostly reflecting higher taxes of EUR 7 mln.
Fonciere Massena, the real estate investment arm of Groupe des Assurances du Crédit Mutuel, saw its net profit drop by 35% in the first half of 2010, mostly reflecting higher taxes of EUR 7 mln.
The company, one of five REITs in France which saw its tax privileges suspended earlier this year due to the breaching of a shareholding requirement, said its net profit amounted to less than EUR 8 mln in the first six months of 2010, compared to over EUR 12 mln in the same period a year earlier. Gross profits were higher in H1 2010, rising to EUR 14.5 mln from EUR 12 mln a year before.
'The difficult stock market context in the first semester of 2010 has not allowed Fonciere Massena to comply with the REIT requirement, which imposes a shareholding maximum of 60%,' the company said in a statement on Monday to the Paris stock exchange. Non-compliance with the regime after December 31 will lead to a 'final exit' from the tax-transparent REIT status, with a further EUR 11 mln in exit costs envisaged, it added.
The company's debt amounted to EUR 225 mln at end-June, reflecting a loan-to-value of 27.5%, compared to 25.3% at year-end 2009. Fonciere Massena's portfolio increased by 4% in value over the past six months, reaching a total of EUR 809 mln at end-June 2010.
'Foncière Masséna will continue to carry out a strategy of creating value in its existing portfolio, accompanied by a prudent development and controlled by targeted investments to strengthen its presence in the commercial real estate market,' it said.