ANF Immobilier is a French listed real estate investment company which owns a diversified portfolio of French retail, office, hotel and residential property worth €1 004 million. It specializes in existing and new city centers of large French metropolitan areas and currently has a presence in Lyon, Marseille and Bordeaux.
As of December 31, 2013, ANF Immobilier’s portfolio totals 375,000 sq.m., including 276,000 sq.m. of built assets and 99,000 sq.m. of projects under development. Marseille accounts for 73% of the portfolio (with 29,000 sq.m. of projects), Lyon for 17% (with 62,000 sq.m. of projects) and Bordeaux for 5% (with 9,000 sq.m. of projects). ANF Immobilier also owns nine hotels in France, representing 5% of the properties (19,000 sq.m.).
The portfolio’s rental income came 41% from retail, 25% from offi ces, 21% from residential and 9% from hotel properties. The remainder derived from car parks or other properties.
The prime locations in existing and new city centers, with predominantly retail leases in three high-growth metropolitan areas, combined with a high lessee granularity make ANF Immobilier’s revenues particularly resistant and resilient to a rapidly changing economic environment.
ANF Immobilier has demonstrated regional expertise and established itself as a key real estate investor and developer specialized in large metropolitan areas.
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 doubled rental income at constant scope and significantly increased EBITDA margin. As some of its assets had matured and were disposed of at the end of 2012, the Company has refocused its activities on its core business, which is to create value in the most dynamic French metropolitan areas.
Backed up by this identity and strategic refocus, the Company expects significant rental growth in the medium term, driven by three factors: renegotiating leases at higher rates made possible by the growth potential of the current portfolio, additional rental income from secured projects, and a major acquisition program. In order to implement this strategy, 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 asset trade-off policy enabling the rebalancing of the portfolio, both geographically and in the nature of its assets, while maintaining a conservative debt ratio of around 40%.
ANF Immobilier estimates that it can operate various real estate levers to increase rental income to €67 million by 2017, a rise of 120% compared with 2012 rental income restated for disposals. In 2013, the Company’s rental income grew by 14% to €34.9 million. The year 2013 was also marked by the delivery of 27,000 sq.m. developed on existing land reserves, a major acquisition pipeline (with a total commitment of €182 million or 76% of the initial target of €240 million), a successful trade-off program at prices corresponding to the latest appraisal values, and the conclusion of the refinancing negotiations for the Company’s main line of credit under very favorable terms.