Press release - Société de la Tour Eiffel - 2026 Half-Year Results: Completion of the first delivery cycle, paving the way for the next phase of transformation
2026 Half-Year Results - Completion of the first delivery cycle, paving the way for the next phase of transformation
The Board of Directors of Société de la Tour Eiffel, meeting on 22 July 2026, approved the half-year financial statements as at 30 June 2026. The audit procedures for these financial statements have been completed and the corresponding report is currently being issued.
"In the first half of 2026, the French real estate market remained strongly polarised: the increasing selectivity of both occupiers and investors continues to widen the gap between assets depending on their location, quality and environmental performance. In this demanding environment, strength and diversification of the portfolio stand out more than ever as decisive difference makers. With the delivery of Syrah in Bobigny and of Rivage in Puteaux, due in September, Société de la Tour Eiffel is bringing to completion the first development cycle launched in 2022, confirming the relevance of its positioning and its long-term asset management. With a strengthened financial structure and the backing of a solid majority shareholder, the company is making the letting of its portfolio its priority, in a rental market that remains challenging, and is embarking on a new phase of transformation structured around a renewed cycle of developments, redevelopments and disposals, with a view to sustainable and responsible value creation," said Christel Zordan, Chief Executive Officer of Société de la Tour Eiffel.
The Company continues to implement its roadmap on an adjusted basis…
- Tender offer for withdrawal followed by a mandatory squeeze-out by the SMABTP Group at a price of €8.20 per share
- Portfolio value down 2.9% on a like-for-like basis to €1.6bn
- €11m in developments of assets with sound fundamentals
- Loan-to-value ratio (LTV) at 24.4% (covenant: < 50%) and EPRA LTV at 31.9%
- ICR (EBITDA/Financial costs) at 2.5x (covenant: > 2x)
- €440m in remaining drawdown capacity
- EPRA NTA of €7.72/share
- EPRA Topped-up Net Initial Yield: 4.4%
… essential to the sustainable transformation of its assets in response to the challenges of the property market
- Gross rental income of €38.0m, up 4.3% (-1.1% on a like-for-like basis)
- 96% of rents collected as at early July 2026
- EPRA occupancy rate down to 71.0% (vs. 73.1%) and secured occupancy rate at 72.4%
- Cost of debt at 3.64%
- Net consolidated result of -€23.0m (vs. -€46.0m)
- EPRA Earnings of €8.7m, or €0.07 per share (vs. €0.04)
- Recurring cash flow of €10.1m (vs. €5.1m)
Continued disposal of assets unsuited to the Group's challenges
During the period, the Group continued to implement its disposal strategy, signing preliminary sale agreements for three assets located on the outskirts of Paris for a total amount of €21.4m. One of these sales was completed in early July 2026, and the other two are expected to be completed by the end of September 2026.
While one of the assets is being sold at a price in line with its appraised value, the other two are being sold at significant discounts. Overall, the disposals carry a 43% discount to their end-2025 appraised values and demonstrate the Company's determination to continue rationalising its portfolio in a still sluggish investment market.
Evolution of developments and redevelopments
In Puteaux, on the banks of the Seine, at the foot of the Pont de Neuilly, the Group is finalising the redevelopment of Rivage, a mixed wood-concrete office building (not a high-rise) with a surface area of 9,850 sqm. Launched at the end of 2023, the project is aiming for a high level of environmental certifications and labels: HQE BD Excellent, BREEAM NC Excellent, E+C- level E2C1, BBCA standard, Osmoz Bâti, Wiredscore Gold and Label Biosourcé level 3. The full range of services will include a Skybar on the 8th/9th floor, and the building benefits from numerous terraces, some offering unobstructed views over the whole of Paris. Delivery is scheduled for September 2026.
In the ZAC des Vignes urban development zone in Bobigny, the Company delivered Syrah in June 2026, an 8,000 sqm multi-storey light industrial and last-mile logistics asset under its LILK (Light Industrial Last Kilometer) brand. The second project of this type delivered after Nanturra, this multi-purpose building concept meets the needs for urban light industrial and last-mile logistics space close to urban centres while preserving as much of the natural environment as possible. Syrah stands out in particular for its environmental performance (geothermal heating using probes, low-carbon materials, urban agriculture, etc.) and is also aiming for BREEAM Excellent certification.
Together with Nanturra, EvasYon, Jade and Saphir, delivered in 2024 and 2025, these six projects (Rivage, Syrah) embody the property company's strategy of value creation, diversification and environmental commitment launched in 2022, and represent up to €11.0m in potential rental income, including €4.1m secured by signed leases.
Implementation of the Property Company's sustainable commitments
The property company's ESG strategy is part of a comprehensive approach combining environmental performance, asset resilience and social responsibility. Deployed across both the existing portfolio and new developments, it favours practical solutions designed to reduce the environmental footprint of projects and strengthen their sustainability.
The projects developed by the property company illustrate this ambition, most recently with Syrah in Bobigny, a new multi-storey light industrial asset designed to limit land take through its vertical structure and incorporating low-carbon materials, renewable energy and biodiversity-friendly features. These achievements reflect the Company's determination to combine real estate innovation, environmental performance and sustainable value creation.
A portfolio being transformed
As at 30 June 2026, the value of the portfolio stood at €1,563m, 75% in offices (€1,166m), 12% in business/logistics premises (€189m), 11% in mixed use (€175m) and a still marginal amount of serviced residential property. This portfolio is located entirely in France, with 75% in Greater Paris (€1,169m). As part of a process of continuous improvement in the quality of the portfolio, 85% of it was certified for its environmental performance at end-2025.
Rental activity reflecting a portfolio with fewer break options in the short term
In the first half of 2026, €3.8m in annualised rental income was agreed with tenants, including €1.3m in new leases signed and €2.5m in renewals.
Including the announced departures, the net balance of the rental activity stands at -€2.1m in annualised rental income.
This change includes in particular:
- renegotiations with Transactis (2,310 sqm) and Europ Net (2,120 sqm) in Nanterre, Greenbig (1,140 sqm) in Puteaux and Hirsch Secure (1,260 sqm) at the Aix-en-Provence business park;
- the signing of new leases with Schneider Electric (1,290 sqm) at Nanturra in the Nanterre Seine park, Future Electronics (870 sqm) in Vélizy and Simoldes Plasticos (810 sqm) in Guyancourt;
- as well as the announced departures of IBM (5,400 sqm) in Orsay, Inetum (2,320 sqm) in Lyon, Poush (11,228 sqm) in Aubervilliers and Eqiom (370 sqm) in Nanterre.
As at 30 June 2026, the financial occupancy rate (EPRA) is down to 71.0% (vs. 73.1% at end-2025). Including the signing of Lyon EvasYon, which is effective after 30 June 2026, the secured occupancy rate stands at 72.4%. Adjusted for provoked vacancy (redevelopment operations: 6.9%), the financial occupancy rate (EPRA) stands at 78.0% (vs. 79.9%). In addition, the average length of leases and their firm periods stand at 5.5 years and 3.3 years respectively (vs. 5.7 and 3.4 years at end-2025). With fewer leases subject to break options over the next 12 months, this rental-securing activity is mechanically lower in 2026, allowing the teams to step up their efforts to attract new tenants, in an environment even more challenging than in previous years.
96% of H1 2026 rents collected
As at early July, 96.2% of the €39.0m of total rents invoiced in H1 2026 had been collected (vs. 96.0% last year).
This performance is the result of the internalised property and rental management model, combining thorough selection with proximity to tenants to build a high-quality tenant base. In a fragile economic climate, the Company remains particularly vigilant and maintains close contact and dialogue with its clients.
Monitoring of tenant risk on the basis of Coface and Credit Safe ratings continues to indicate that more than 85% of the rental base consists of tenants belonging to the top two categories (low or very low risk), thus demonstrating the resilience of the Company's management model.
EPRA Earnings up to €8.7m
Gross rental income rose by 4.3% to €38.0m, driven by the impact of deliveries (+€2.0m). On a like-for-like basis, rents fell by 1.1%, with the impact of departures and negotiations (-€0.7m) partially absorbed by indexation (+€0.3m, +0.8%). Net rental income increased by 7.1%, reflecting the favourable impact of service charge adjustments over the period.
Current EBIT amounted to €18.0m (vs. €16.8m), partly reflecting the €1.1m increase in operating expenses to €8.4m (vs. €7.3m). Half of this increase relates to the upgrade of business tools and the roll-out of electronic invoicing, and the other half to the reclassification of the head office rent (previously accounted for under IFRS 16). This reclassification is neutral for EPRA Earnings and net result, as the higher operating expenses are essentially offset by the corresponding decrease in depreciation charges.
Financial costs amounted to €7.6m (vs. €6.4m), representing an average cost of debt of 3.6% (vs. 1.9% in H1 2025, which was reduced by the non-recurring income detailed below). This €1.2m increase reflects two opposing effects. The first half of 2025 had benefited from €5.9m in non-recurring financial income from the investment of part of the proceeds of the capital increase carried out in January 2025 (including €1.8m related to the investment of the €180m earmarked for the repayment of the 2020 perpetual subordinated loans (PSL)). Conversely, the use of the remaining proceeds of this capital increase reduced average debt from €661m to €420m, generating interest savings of €4.7m over the half-year.
Following the update of the EPRA performance measures guide (EPRA BPR) in September 2024, EPRA Earnings now include other costs related to the financial structure (such as PSL) as well as adjustments related to non-operating and exceptional items. The cost of PSLs represents €2.2m in the first half of 2026, compared with €6.2m for the same period in 2025, reflecting the repayment on 19 June 2025 of the €180m 2020 PSL and the fall in rates on the €75m 2007 PSL, indexed to the 3-month Euribor.
After taking into account this change of method, other income and expenses, taxes and income from equity-accounted companies, EPRA Earnings (net recurring profit adjusted for other financial structure costs) amounted to €8.7m compared with €4.3m in 2025, or €0.07 and €0.04 per share respectively.
After incorporating all EPRA adjustments (depreciation and provisions, reversals, gains/losses on disposals, other costs related to the financial structure, changes in the value of financial instruments), net consolidated result amounted to -€23.0m, compared with -€46.0m in 2025.
Recurring cash flow for the period was €10.1m, compared with €5.1m in 2025, reflecting the change in EPRA Earnings calculated using the new method.
Net asset value down, reflecting the value adjustment to the portfolio
The valuation of the Company's portfolio as at 30 June 2026 was down 2.9% on a like-for-like basis compared with the end of 2025. This decrease is mainly due to the continued rise in capitalisation rates (6.20% vs. 6.18%), lower rental income and higher restatements included in the appraisals. Including the changes in scope, the portfolio amounted to €1,563.0m (disposals: €0m, capital losses on disposals: €0m, change in fair value: -€45.7m, capex: +€5.6m, developments: +€11.2m and acquisitions: €0).
EPRA Net Asset Value (NTA) per share changed from €8.16 to €7.72 at the end of June 2026, mainly due to the adjustment in the value of the portfolio (-€0.34 per share) and the recognition of 50% of the deferred taxes related to unrealised capital gains (-€0.16 per share) following the exit from the SIIC regime (French REIT). Liquidation EPRA Net Asset Value (NDV) per share, which includes the fair value of financing instruments (fixed-rate debt, hedging instruments, PSL) and all of the deferred taxes related to unrealised capital gains, decreased from €8.13[1] to €7.65.
Tender offer for withdrawal followed by a mandatory squeeze-out by the SMABTP Group
On 2 July 2026, the AMF declared compliant the proposed tender offer for withdrawal for the shares of Société de la Tour Eiffel, filed on 17 April 2026 by SMABTP and SMAvie BTP (the "Offerors") at a price of €8.20 per share (see the documents and press releases in the "Tender offer for withdrawal" section of the Company's website www.societetoureiffel.com and on the AMF website www.amf-france.org).
The offer, which was open from 6 July 2026 to 17 July 2026 inclusive, resulted in the SMABTP Group holding, after assimilation of the 14,926 treasury shares, 128,923,602 shares representing 128,908,676 voting rights, i.e. 97.01% of the share capital and 97.00% of the theoretical voting rights of the Company. The offer will be followed by a mandatory squeeze-out, in return for a cash consideration equal to the offer price of €8.20 per share, resulting in the delisting of the Company's shares from Euronext Paris. In accordance with the notice published by the AMF on 21st of July 2026, the mandatory squeeze-out will be implemented on 3rd of August 2026.
Financial position
As at 30 June 2026, gross financial debt amounted to €424.0m (vs. €422.5m at end-2025). With a cash position of €42.1m (vs. €50.0m), net debt stands at €381.9m, up slightly from the €372.5m recorded at the end of 2025.
This change is mainly due to development expenditure during the period and to the decrease in the fair value of the portfolio. The LTV ratio (net debt/portfolio value excluding transfer taxes) thus stands at 24.4% as at 30 June 2026, compared with 23.4% at end-2025. EPRA LTV stands at 31.9%.
The interest coverage ratio (ICR: EBITDA/financial costs), for which the covenant is contractually set at a minimum of 2.0x in the Company's financing documentation, stood at 2.5x as at 30 June 2026, compared with 3.0x at the end of 2025.
This level remains in line with contractual commitments, although it is below the standards generally observed in the sector (4x-6x). It gives the Company just sufficient leeway to rebuild its EBITDA and gradually restore its financial flexibility in the medium term.
In a real estate market that remains highly complex, and given the resulting lag between different schedules (delivery, letting and sale of buildings), the Company anticipates that the ICR ratio (EBITDA/financial costs) may be very close to, or even below, its 2x covenant at 31 December 2026.
As part of its proactive risk management approach and given that the expected ICR is close to 2.0x, the Company has obtained amendments to the relevant financing agreements in respect of the 31 December 2026 covenant test date.
This context confirms that the 2025 capital increase was calibrated in a measured manner by the corporate bodies, based on reasonable assumptions regarding the ramp-up of recently delivered assets and those currently under delivery, and continued disposals.
The 2026 debt maturities include the refinancing of the €330m facility in October and the extension of the €350m SMABTP facility in November. To date, the Company has obtained an initial agreement in principle covering the entire €330m to be refinanced, in the context of the 100% buyout by the SMABTP Group through the tender offer for withdrawal followed by a mandatory squeeze-out.
Active and prudent portfolio management
With a strengthened financial structure, Société de la Tour Eiffel is entering a new phase in its portfolio transformation, under way since 2022. In a still demanding real estate environment, its operational priority is letting, in order to reduce vacancy and secure the rental income of recently delivered assets, in a market that remains highly selective. To this end, it favours active and disciplined management of its assets, focused on adapting them to changing uses and strengthening their resilience.
This new phase, currently being defined, will be structured around a renewed cycle of developments, redevelopments and disposals. Most of the projects have already been identified and will be adjusted in line with market conditions and the Group's priorities. The Company intends to pursue this phase while keeping its financial leverage under control, relying primarily on the rotation of its portfolio: disposals of buildings no longer suited to the Group's challenges fund the enhancement of the assets most in line with the expectations of occupiers and local communities. The projects delivered and the operations undertaken in recent years illustrate this shift towards a diversified, mixed-use portfolio much more in line with contemporary urban challenges.
At the same time, the teams are continuing their environmental performance efforts (reducing the carbon footprint, improving energy performance and maintaining a high level of portfolio certification), with the ambition of combining operational performance with sustainable responsibility.
Calendar
- 23 July 2026: Analyst conference (SFAF)
- 3 August 2026: Implementation of the mandatory squeeze-out
The results presentation will be available on the Group's website on Thursday 23 July before market opening: Financial information - Société Tour Eiffel (societetoureiffel.com).
[1] As a reminder, with the exit from the SIIC regime in 2026, the Liquidation EPRA Net Asset Value (NDV) will need to be adjusted for deferred taxes estimated at approximately €46m, or €0.35 per share, as at 31 December 2025.
Contacts
Press and Investor Relations
Alexandre Daudin
Managing Director - Agence Shan
+ 33 6 34 92 46 15
Press and Investor Relations
Claire Hilbert
Senior Consultant - Agence Shan
+33 6 15 80 91 30
About Société de la Tour Eiffel
Société de la Tour Eiffel, with a portfolio of €1.6bn, is an integrated property company with a strong service-oriented culture. Agile, it operates across different asset classes (offices, urban logistics, serviced residential, retail) in Greater Paris and in major regional metropolitan areas. Active across the entire real estate cycle, it supports its tenants, companies of all sizes and sectors, through a rigorous approach to the direct management of its assets. In terms of CSR, Société de la Tour Eiffel is pursuing a proactive and cross-cutting approach that is fully aligned with its strategic priorities.
Société de la Tour Eiffel is listed on Euronext Paris (compartment B) – ISIN code: FR0000036816 – Reuters: TEIF.PA – Bloomberg: EIFF.FP