French Affine sees higher revenues, focuses on tenant leases

French REIT/SIIC Affine said its three property companies, Affine, AffiParis, and Banimmo, boosted revenues in the first quarter by nearly 14% to e21.2m compared to 1Q08. Total revenues, including development, rose to e45.5m. However revenues continued to fall due to the amortisation of portfolio transactions and the low production of potential new deals. The sharp rise in gross revenues was mainly due to the disposal of a logistics platform in Spain for e14.5m. After the significant economic downturn at end-2008, Affine said it decided to focus on tenant leases expiring in the short term. This strategy paid off as three significant leases were renewed for slightly more than e1.6m of rent, while several renegotiations are still under way. Twenty-five new leases were signed, representing rent of e880,000 but seven tenants departed, representing annual rent of e550,000.