French commercial property company Société Foncière Lyonnaise (SFL) reported net losses narrowed by 36% in 2009 to EUR 252 mln. '2009 saw a further improvement in operating indicators thanks to firm rental revenues and reductions in both operating expenses and financing costs', the company said in a statement.

French commercial property company Société Foncière Lyonnaise (SFL) reported net losses narrowed by 36% in 2009 to EUR 252 mln. '2009 saw a further improvement in operating indicators thanks to firm rental revenues and reductions in both operating expenses and financing costs', the company said in a statement.

The value of SFL's portfolio decreased by 7.8% like-for-like for full-year 2009, reflecting sharp declines in the first half. In the course of 2009, SFL sold five buildings for a total of EUR 117 mln, representing an average yield of 6.3%. SFL said it also withdrew from the T8 development project on the Paris Rive Gauche site during the year.

The company, with a portfolio of nearly EUR 3.3 bn, saw the occupancy rate of its portfolio fall from 98.3% at end-2008 to 93.9% a year later. According to the French SIIC, the decline largely reflects propblems in the letting of a fully-renovated building at 103 rue de Grenelle in Paris. The building was delivered in March 2009 'in the midst of a flat rental market'.

Net debt at end-2009 amounted to EUR 1.1 bn, representing a loan-to-value ratio of 34.2%.

During the last board meeting the company appointed Aref Lahham of Orion Capital to the board of directors, replacing Yves Defline. Defline, who has been the company's CEO until 2002, will remain as a non-voting director. The company is proposing a dividend of EUR 2.10 per share for 2009.