Rents and occupancy rates
The theoretical rent for the French portfolio as a whole increased by 27.9% from € 94.8 million to € 121.2 million. This increase was due on the one hand to indexations, relettings and renewals of leases at higher rents and on the other to movements in the portfolio which had a net positive effect on the theoretical rent of € 21.5 million. The average occupancy rate (EPRA definition) decreased slightly from 97.2% in 2007 to 96.9% in 2008, chiefly as a result of the acquisition of Grand Littoral in Marseille, where optimisation of the tenant mix is in full swing. Total lost rent reduced from 7.3% of the theoretical rent in 2007 to 5.9% in 2008, mainly due to the successful completion of the renovation of Quais d’Ivry. Operating costs increased from € 6.4 million in 2007 to € 8.8 million in 2008, or from 6.8% to 7.2% of the theoretical rent, which is still an efficient level. Net rental income rose by 29.3% (2007: 15.4%) to € 105.3 million. On a like-for-like basis, the net rental growth of properties which were in portfolio for the whole of 2007 and 2008 increased by 8.0% in 2008 (2007: 12.6%), well above the rent indexation of 5.0%.
Source: Annual Report 2008, Chapter Review of operations, page 71 (PDF, 2,1 MB)
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