Fonciere Paris France - First-Half 2008 Results

-- Asset portfolio as of June 30: EUR 434.4 million

-- Consolidated net profit: EUR 11.4 million

-- NAV per share, excluding transfer costs: EUR 146.3

-- NAV per share, including transfer costs: EUR 157.4
PARIS--(Business Wire)--
Regulatory News:

The Board of Directors of Fonciere Paris France (Paris:FPF) met on
July 23, 2008 to approve the Company's financial statements for the
six months ended June 30, 2008.

KEY FIGURES

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June June Dec.
30, 30, 31,
2008 2007 2007
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Asset portfolio - EUR millions 434.4 371.1 428.3
Gross rental income - EUR millions 13.3 9.2 22.8
Recurring operating profit - EUR millions 13.1 7.4 18.6
Consolidated net profit - EUR millions 11.4 25.3 41.0
NAV per share, excl. transfer costs (EUR ) 146.3 136.7 144.4
NAV per share, incl. transfer costs (EUR ) 157.4 146.8 156.3
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"We are satisfied with the first-half results, which were achieved
in an environment that has become more difficult for property
companies," said Chairman and Chief Executive Officer Jean-Paul
Dumortier. "Since the beginning of the year, we have intentionally
scaled down our acquisitions program and focused on projects currently
in development, as well as on rental operations. Backed by a strong
balance sheet, Fonciere Paris France intends to pursue its strategy of
selective growth in the months ahead."

BUSINESS REVIEW

-- Rental activity

Rental activity was particularly sustained in the first six months
of the year. During the period, Fonciere Paris France successfully
negotiated several leases for major assets in its portfolio. In all,
53,500 square meters of space was let or re-let, representing total
annual rental income of EUR 10 million.

The financial occupancy rate stood at 96.2%. In addition, more
than 75% of buildings under construction or renovation are already
let.

-- Developments

During the first half, the Company made significant headway in its
new building and renovation projects.

-- In Rueil, Fonciere Paris France obtained a building permit and
began restructuring the 24,500 square-meter office complex it
owns there. The units will be delivered in phases between end
2008 and early 2009.

-- In Saint Denis, the building permit for the first phase of
Studios du Lendit was obtained in March 2008. Work is
scheduled to begin in the fall 2008 on this 22,500
square-meter program, which comprises television production
studios and dedicated offices for multimedia operations. The
program should be delivered in mid-2010.

-- Also in Saint Denis, the Company acquired the site for the
Mediacom 3 project in February 2008. The approximately
4,000-square-meter property will be the first zero-energy
office building in the Greater Paris area. Work will start in
fall 2008, with delivery scheduled for early 2010.

-- Acquisitions and Disposals

Fonciere Paris France intentionally scaled down its acquisitions
in the first half to a few transactions that meet its new
profitability criteria.

The Company acquired three new assets worth EUR 11 million during
the period, and took over a EUR 3.6 million finance lease in July.

It disposed of a building on rue d'Enghien in Paris, for EUR 6.5
million, and signed a commitment to sell the Ellipses property complex
in Saint Maurice for EUR 33.7 million.

-- Asset Portfolio

Fonciere Paris France currently owns 40 commercial properties in
the Paris area, including office buildings, business premises and
local warehouses. The portfolio represents a total surface area of
roughly 213,262 square meters, of which 38% in Paris, 49% in the inner
suburbs and 13% in the outer suburbs.

-- Asset Value

At June 30, 2008, the appraisal value of the portfolio was EUR
434.4 million excluding transfer costs and EUR 459.1 million including
transfer costs. The gross rental yield stood at 7.4% and the financial
vacancy rate was 3.8%.

On a like-for-like basis, the portfolio's overall value edged up
by 0.41% from December 31, 2007. This reflects a mixed situation
within the portfolio: 8 assets showed a decline in value of more than
5% and 14 declined by around 3%, while 8 remained stable and 7
increased in value.

FINANCIAL REVIEW

-- Revenue for the period came to EUR 13.3 million, up from EUR
9.2 million in first-half 2007.

Recurring operating profit rose to EUR 13.1 million from EUR 7.4
million the year before.

After fair value adjustments totaling EUR 1.9 million, disposal
gains of EUR 0.5 million and finance costs of EUR 4 million,
consolidated net profit for the period stood at EUR 11.4 million. This
compares with EUR 25.2 million in first-half 2007, a figure that
included EUR 20.7 million in fair value adjustments.

-- Debt totaled EUR 155.8 million at June 30. Of this, EUR 149.1
million was hedged at fixed rates. The average interest rate
on debt stood at 4.6%.

The Company ended the period with EUR 44.4 million in cash and
cash equivalents. After deducting this amount, net debt totaled EUR
111.4 million, for a loan to value ratio of 25.6% (net debt/assets
excluding transfer costs).

-- At June 30, equity and quasi-equity - represented by equity
notes - totaled EUR 323.7 million. Diluted for the equity
notes, NAV per share stood at EUR 146.3 excluding transfer
costs, and EUR 157.4 including transfer costs, a slight
increase from December 31, 2007.

OUTLOOK

In the second half of 2008, Fonciere Paris France should add to
its financing resources to increase its investment capacity.

Looking out through 2009, Company intends to pursue its growth
strategy by making selective investments in a real estate market that
is expected to see prices and volumes decline.

ABOUT FONCIERE PARIS FRANCE

Fonciere Paris France is an SIIC specialized in commercial real
estate in the greater Paris region. The Company was founded in May
2005 by Jean-Paul Dumortier, President of the Federation des Societes
Immobilieres et Foncieres.

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Fonciere Paris France is listed on NYSE Euronext Paris, compartment B
(symbol FPF, ISIN code: FR0010304329).
www.fonciereparisfrance.fr
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Fonciere Paris France
Didier Brethes
Chief Operating Officer
Tel.: +33 1 43 12 39 00
didier.brethes@sfpif.com
or
LT Value
Nancy Levain / Maryline Jarnoux-Sorin
Investor Relations
Tel.: +33 1 44 50 39 30
nancy.levain@ltvalue.com
maryline.jarnoux-sorin@ltvalue.com
or
Sophie Accaoui
Media Relations
Tel.: +33 1 44 50 39 31
sophie.accaoui@ltvalue.com

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