Listed French commercial real estate company Mercialys has reported an increase of 16.6% in rental revenue in its first quarter figures compared to same period in 2007. The company said rental revenues grew to EUR 28.1mln at the end-March 2008. First quarter invoiced rents were also up 16.6% compared with a year earlier, invoiced rents rose from EUR 23mln in 2007 to EUR 28mln in 2008.
Listed French commercial real estate company Mercialys has reported an increase of 16.6% in rental revenue in its first quarter figures compared to same period in 2007. The company said rental revenues grew to EUR 28.1mln at the end-March 2008. First quarter invoiced rents were also up 16.6% compared with a year earlier, invoiced rents rose from EUR 23mln in 2007 to EUR 28mln in 2008.
According to the company statement, the strong growth in revenue was driven by a combination of organic growth and acquisitions in 2007. Renewals and relets rose 3.9 points in 2008. In the first quarter of 2008, 43 leases were renewed or relet with an annualised rent growth of +30% (2007) and +166% (2008) or a total amount of EUR 1.2mln.
Acquisitions in 2007 had a +9.9 points impact on the first quarter of 2008 invoiced rents growth. In the first quarter, acquisitions signed or engaged by Mercialys represented a total of EUR 4.8mln for 10 co-ownership lots. The company also said that Alcudia project generated some voluntary vacancy which had a negative impact of -0.2 point on the invoiced rents growth of the first quarter of this year.
Overall, the company said its financial structure was strong with a debt limited to leasehold rights and its cash reserves of EUR 79mln would enable it to pursue a value creation stategy in a pragmatic and opportunistic way.
Mercialys owns 167 assets and the portfolio value rose by 42% as at 31 December 2007 to reach EUR 1.9bn at an average yield of 5.5%.
