ANF Immobilier : a major real estate investor
ANF Immobilier is a listed real estate investment company which owns a portfolio of French retail, office, hotel and residential property worth €884 million. It is a real estate company specializing in large regional cities and has a presence in Lyon, Marseille and Bordeaux city centers.
The portfolio includes 184,500 sqm in the city center of Marseille (148 mixed-use Haussmann-era buildings), plus projects in excess of 50,000 sqm, 10,000 sqm in the city center of Lyon (four mixed-use Haussmann-era buildings), plus 4,200 sqm being developed (Milkyway project) and a renovation project (TAT) and 13,000 sqm of offices in the city center of Bordeaux, currently being developed. ANF Immobilier also owns nine hotel premises in France.
As of December 31, 2012, rental income in the portfolio came 40% from of commercial leases, 24% from residential, 22% from offices and the remainder from other properties such as hotels or car parks.
The diversity of ANF Immobilier’s majority retail tenants and its prime central locations in cities with strong growth potential make the rental income from these assets particularly resistant to falls in consumer spending and to economic difficulties.
Since 2005, ANF Immobilier has been making significant improvements to its historical assets in the city centers of Lyon and Marseille. Major restructuring of the existing buildings alongside the development of new buildings on the Company’s land reserves has already generated an increase in the Group’s rental income of close to 95% on a like-for-like basis. The improvement of the rental income has translated into an improvement in the margin. The EBIDTA margin grew from 44% in 2005 to 79% in 2012 while the Group’s financial structure remained highly defensive with a debt ratio of just 33% as of December 31, 2012. As some of its assets had matured, the Company initiated and carried out major disposals in 2012, thereby refocusing activities on its core business, i.e. the renovation and restructuring of property complexes in large French regional cities.
On the strength of this refocus, the Company envisages a medium-term growth in rental income along three lines: renegotiating leases at higher rates linked to the property’s growth potential, value creation from already identified and secured projects and a major acquisition program. In order to achieve this ambition, a €410 million investment plan was launched, primarily in new acquisitions (€240 million) and in already identified projects (€170 million). These investments are linked to an arbitration policy enabling the rebalancing of the portfolio, both geographically and in the nature of its assets. Thus, ANF Immobilier estimates that it can operate various real estate levers to increase rental income to approximately €67 million by 2017.
With a sound and resilient profile, ANF Immobilier is continuing its growth strategy based on generating new rental income and improving the return on its assets.
Listed on Euronext Paris (compartment B, ISIN FR0000063091), ANF Immobilier opted for the SIIC (listed real estate investment companies – SIIC) tax status in 2006. Eurazeo, which owns 49% of the Company’s capital at the date of drafting of the Registration Document, is the principal shareholder and it ensures the stability of the Company’s shareholder structure.
ANF Immobilier is listed on the EPRA index since March 2012. The EPRA index represents the largest European real estate companies and is the benchmark index for the real estate sector.