SFL : Yves Mansion Named Chairman and Chief Executive Officer, and First-Half Results...

SFL : Yves Mansion Named Chairman and Chief Executive Officer, and First-Half Results 2008

PARIS--(Business Wire)--
Regulatory News:

Societe Fonciere Lyonnaise (Paris:FLY)

-- Yves Mansion named Chairman and Chief Executive Officer.

-- First-half 2008 sees further growth in operating profit and a
modest decline in appraisal values.

First-half property rentals up 7.8% to EUR 89.7 million

Operating profit before fair value adjustments up 3.6% to EUR 74.9
million

Attributable current cash flow up 4.2% to EUR 50.2 million

NAV/share including transfer costs: EUR 57.5

At its meeting today, the Board of Directors appointed Juan Jose
Brugera Clavero, Carlos Fernandez-Lerga Garralda and Pere Vinolas as
directors to replace three Board members who had resigned, including
Mariano Miguel, the former Chairman of the Board.

Yves Mansion was renamed Chairman, following the Board's decision
to once again combine this position with that of Chief Executive
Officer. At the same time, Philippe Depoux's position as Chief
Operating Officer was confirmed.

The Board also approved the interim financial statements for the
six months ended 30 June 2008.

Consolidated results (EUR millions)

-0-
*T
First- First-
half half
2008 2007
--------------------------------------------------- -------- ---------
Property rentals 89.7 83.3
Operating profit before fair value adjustments 74.9 72.3
Attributable (loss) profit (180.8) 306.4
Attributable current cash flow 50.2 48.2
--------------------------------------------------- -------- ---------

--------------------------------------------------- -------- ---------
30 June 30 June
2008 2007
--------------------------------------------------- -------- ---------
Portfolio value excluding transfer costs 3,714 3,827
Portfolio value including transfer costs 3,924 4,047
--------------------------------------------------- -------- ---------
Diluted NAV/share excluding transfer costs EUR 53.0 EUR 57.7
Diluted NAV/share including transfer costs EUR 57.5 EUR 62.5
--------------------------------------------------- -------- ---------
*T

Results

-- Property rentals totalled EUR 89.7 million in the first six
months of 2008, an increase of 7.8% compared with the EUR 83.3
million reported in the first half of 2007. On a comparable
portfolio basis, property rentals were up 2.7% for the period.
Excluding the Louvre des Entreprises - Louvre des Antiquaires
(LDE-LDA) complex, part of which is currently being renovated,
the increase on a comparable portfolio basis was 8.3%.

-- Operating profit before fair value adjustments rose 3.6% to
EUR 74.9 million from EUR 72.3 million in first-half 2007.

-- The estimated market value of the property portfolio declined
by 5.0% between 31 December 2007 and 30 June 2008, leading to
the recognition of a net negative fair value adjustment of EUR
253.0 million in first-half 2008, compared with a net positive
adjustment of EUR 274.2 million in the year-earlier period.

-- The Group ended the period with a EUR 180.8 million loss
versus a EUR 306.4 million profit in first-half 2007. This was
entirely due to the negative fair value adjustment to
investment property and all other profit indicators improved
over the period.

-- Current cash flow attributable to equity holders (excluding
disposal proceeds) amounted to EUR 50.2 million in first-half
2008, up 4.2% from EUR 48.2 million in the same period of
2007.

Business review

At 30 June 2008, the occupancy rate (excluding properties
undergoing renovation) stood at a very high 98.5%, with over 10,000
sq.m. of offices and retail units let during the first half on very
good terms. The whole of the renovated 62 rue Beaubourg property was
let as soon as it was put back on the market, and leases were signed
on units in the Louvre des Entreprises (LDE) building that are
scheduled for delivery at the end of the year.

In February, SFL agreed the off-plan purchase of a 6,000 sq.m.
property at 108 avenue de Wagram in Paris, consisting essentially of
offices. Contracts are expected to be exchanged before the end of the
year.

NAV

The estimated market value of the portfolio at 30 June 2008 was
EUR 3,714 million excluding transfer costs, down 5.0% on a comparable
portfolio basis from EUR 3,909 million at 31 December 2007. The
estimated replacement value, including transfer costs, at 30 June 2008
was EUR 3,924 million.

The composition of the portfolio was unchanged, with prime office
properties in Paris's Central Business District accounting for 80% of
the total and retail units on the capital's best shopping streets
representing 15%.

Net debt at 30 June 2008 amounted to EUR 1,136 million,
representing a loan-to-value ratio of 29%. The average cost of debt
was stable in the first-half at 5.4%.

On this basis, at 30 June 2008 fully-diluted NAV per share stood
at EUR 57.5 including transfer costs - down 9.6% from EUR 63.6 at 31
December 2007 - and EUR 53.0 excluding transfer costs.

With an exceptional portfolio of properties valued at nearly EUR 4
billion including transfer costs, essentially located in the Paris
Central Business District, SFL is a preferred vehicle for investors
wishing to invest in the Paris office and retail property market. As
the leading player in this market, the Group is firmly focused on
pro-actively managing high-quality property assets. SFL has elected to
be taxed as an SIIC since 2003.

STOCK MARKET:

Euronext Paris Compartment A - Euronext Paris ISIN FR0000033409 -
Bloomberg: FLY FP - Reuters: FLYP PA

Company
SFL
Nicolas Reynaud
Phone: + 33 (1) 42 97 01 65
n.reynaud@fonciere-lyonnaise.com
or
Communication
INFLUENCES
Media contact: Catherine Durand-Meddahi
Phone: + 33 (1) 44 82 67 07
c.meddahi@agence-influences.fr

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