News Article | June 1, 2017
Red Spot Interactive (RSI) announced today the founding members of its Excellence in Patient Engagement and Practice Management Awards. These awards are given to elective health care practices that have consistently achieved patient satisfaction surveys in the top 10% of the country while at the same time generating in excess of $2,000,000 in patient lifetime value from practice marketing in less than 4 years. In today’s dynamic market of changing patient expectations accompanied by increased competition these practices have exceeded patient expectations during the patient engagement process while achieving the highest return on investment in practice performance. “The founding members of our Excellence in Patient Engagement & Practice Management Awards are clearly the top performing practices in the country in elective healthcare from both a patient engagement and practice performance perspective. These practices have shown four years of patient surveys that confirm the highest scores in patient engagement from inception of scheduling through to procedure and post care follow up. As well these practices have achieved the highest return on investment for both their marketing and practice administration investments,” noted Jason Tuschman, Chief Executive Officer and Co-Founder of RSI. “Our practice is honored to be a founding member of this award. My team has always started with the patient first in mind and by utilizing RSI’s platform we have been able to monitor and improve that process based on easy to understand real time patient surveys and practice performance metrics. To know each day your patient’s satisfaction while at the same time improving consistently our financial performance from marketing and administration has put my practice in the best place possible,” stated Dr. Jamal Yousefi a plastic surgeon from Baltimore, Maryland. “My team is able to focus nearly 100% of their time and effort on the patient engagement process which allows us to achieve this award and continued growth. When you know your return on investment from marketing and practice administration is increasing each year I am allowed to spend most of my time as a doctor versus a business owner,” confirmed Dr. Marc Wright an orthodontist from Atlanta, Georgia. “Our patient satisfaction rates allow us to understand where to constantly focus for perfection in the patient engagement experience, with that and RSI’s marketing automation we are able to consistently achieve 50% or higher repeat patients within a year,” stated Dr. Theda Kontis a facial plastic surgeon from Baltimore, Maryland. Founding members include: Dr. Jamal Yousefi - Plastic Surgeon - 95% Patient Satisfaction - 1,422% ROI from Marketing Dr. Ira Papel & Dr. Theda Kontis - Facial Plastic Surgeons - 96% Patient Satisfaction - 611% ROI from Marketing Dr. Christopher Coley - Cosmetic Surgeon - 95% Patient Satisfaction - 965% ROI from Marketing Dr. Marc Wright - Orthodontist - 96^ Patient Satisfaction - 411% ROI from Marketing About RSI: Red Spot Interactive (RSI) increases elective healthcare practice profits through its proprietary analytics software, patient acquisition and retention automation technology along with marketing and patient scheduling call center services. RSI’s clients have generated over $100 million in new patient fees and 100,000 patient consultations since 2011. For more information, visit http://www.redspotinteractive.com.
News Article | June 20, 2017
The Massachusetts court system’s e-filing initiative, which allows attorneys, state agencies, and self-represented litigants to file court cases and legal documents through a web portal, has completed a successful pilot phase and is now expanding. Boston-based Relational Semantics, Inc. (RSI), a provider of IT solutions and services for state courts and agencies, played a key role in the pilot’s success and is actively supporting the current program expansion. The e-filing program, called eFileMA, was officially launched in 2015 with the aim of providing litigants a convenient way to file cases and documents while also reducing the courts’ time and costs associated with managing paper documentation. The pilot program rolled out in six courts, with three at the Appellate Court level – including the Supreme Judicial Court – and three at the Trial Court level. By early 2017 an internal review of the pilot program had concluded that the program was successfully meeting its objectives, and in March the Massachusetts court system proposed updated rules and procedures that would make the e-filing program permanent and expand its scope. eFileMA’s expansion is well underway and has the program covering more case types, more document types, and more court locations. For example, at the Appellate Court level e-filing is now supported for criminal cases as well as civil cases, and for filing of motions as well as briefs. In the Trial Courts, e-filing is now available for 21 District Court locations and 7 Probate and Family Court counties. As the maker of the Forecourt® electronic case management system (CMS) that has long been used by the Appellate Courts to automate their daily business processes, RSI has been integral to the e-filing initiative from the outset. RSI provided technical and operational expertise in helping the Appellate Courts design the initial e-filing pilot program; developed the Forecourt ECF Adapter to integrate the Courts’ CMS with the third party e-filing web portal; and provided ongoing support for systems integration and business process optimization in connection with the e-filing pilot. “The e-filing pilot program entailed a range of technical issues, particularly around integration of systems from multiple vendors,” noted RSI President Bob Gorman. “Throughout the pilot we monitored the Courts’ core IT systems and identified, diagnosed, and resolved issues promptly to help keep the e-filing service running smoothly 24/7.” Along with contributing to the success of the e-filing pilot, RSI provided the systems integration work to facilitate the recent expansions of the Appellate Courts’ e-filing service to include additional case types and document types. Looking ahead to the remainder of 2017, RSI expects to support further extensions of the program, such as to include e-filing for Single Justice cases (currently e-filing is available only for panel cases), and e-filing for impounded cases and documents. As RSI continues to help the Appellate Courts extend the scope of the e-filing program, the Courts can build on the progress they have made in reducing reliance on costly and cumbersome paper-driven business processes while at the same time improving services for users of the court system. Relational Semantics, Inc. (RSI) has been building, deploying, and supporting IT solutions for state governments for three decades. Based in Boston, RSI serves the New England region exclusively. Our Forecourt systems for the judicial branch, and Paragon® systems for the executive branch, help state government meet core operational requirements like case management, application processing, data integration, mobile productivity, and public access. For more information, visit http://www.rsi.com.
News Article | February 23, 2017
NIRA Dynamics hat eine neue Fahrzeugfunktion im Programm, die die Verkehrssicherheit erheblich erhöht. Laufend und in Echtzeit wird die Griffigkeit (Reibwert) der Straßenoberflöche überwacht und von einer großen Zahl Fahrzeuge an einen zentralen Server geschickt und aufbereitet. Von dort können dann Fahrzeuge im entsprechenden Gebiet immer aktuell, hochauflösend und verlässlich über die jeweiligen Strassenverhältnisse informiert werden. Im aktuellen Winter 2016/2017 hat NIRA der schwedischen Strassenverkehrsbehörde Trafikverket und dem Spezial-Wetterdienst Klimator AB eine Software zur Verfügung gestellt, die den Straßenzustand in einer entsprechend ausgerüsteten Fahrzeugflotte laufend überwacht. Die gesammelten Daten werden dann auf einem NIRA-Server in einer Echtzeit-Analyse zusammengeführt. Road Surface Information, oder abgekürzt RSI, ermöglicht jedoch nicht nur die punktgenaue Warnung von menschlichen Fahrern, sondern kann auch als Schlüsselfunktion für selbstfahrende Fahrzeuge angesehen werden. Der sichere Betrieb solcher Fahrzeuge setzt nämlich voraus, jederzeit eine realistische Vorstellung vom nötigen Bremsweg zu haben. Dieser hängt wiederum ganz wesentlich vom aktuell zur Verfügung stehenden Reibwert ab. Deshalb ergänzt RSI einen entscheidenden Baustein auf dem Weg zum sicheren autonomen Fahren. Ein positiver Nebeneffekt ist, dass die RSI-Software von NIRA den Winterdienst erheblich effektiver machen kann: Es wird nur noch gestreut, wo es wirklich notwendig ist - das spart Kosten und schont die Umwelt. NIRA Dynamics hat in den vergangenen Jahren erhebliche Ressourcen investiert, um bei vernetzten und autonomen Fahrzeugen in der Weltspitze mitzuspielen. Nicht zuletzt durch Präsenz im Silicon Valley ist es NIRA Dynamics dabei gelungen, sich als führender Anbieter von Echtzeit-Straßenzustandsdaten auf Basis von vorhandenen Fahrzeuginformationen zu etablieren. Beitrag des schwedischen Fernsehens SVT über das Projekt und RSI (auf Schwedisch): Über NIRA: NIRA Dynamics AB, gegründet 2001, mit Hauptsitz im schwedischen Linköping ist spezialisiert auf Signalverarbeitung und Sensorfusion und entwickelt kosteneffektive Sicherheits- und Navigationslösungen für die globale Autoindustrie - mit dem Kundennutzen stets im Fokus. Zum wachsenden Kundenkreis gehören bereits Hersteller wie Audi, FIAT, Renault, SEAT, Skoda, Volvo und VW. Weitere Informationen: Johan Hägg, Leiter Marketing & Sales (englisch/schwedisch) Telefon: +46 700-454056 Email: email@example.com Jörg Sturmhoebel, Marketing & Sales (deutsch) Telefon: +46 733-580103 Email:
News Article | February 27, 2017
Rural Sourcing Inc. (RSI), the leading provider of US-based IT outsourcing services, announced today a new office location in Jonesboro, AR. The new office, located at 411 Union Street, has been recently renovated following a fire in July 2015.
News Article | March 2, 2017
Rush Street is the first brick and mortar casino to launch NYX digital content via a single integration in both social and real-money US-regulated formats NYX Gaming Group Limited (TSX VENTURE: NYX) ("NYX"), the market leading end-to-end supplier to lotteries, casinos and gaming operators across the globe, is extending its reach in the US online gaming market with the delivery of digital content to Rush Street Interactive's online casino brand, SugarHouse Casino (http://www.playsugarhouse.com). Through a single integration with the award-winning NYX Open Gaming System (OGS), Rush Street now has access to an extensive portfolio of market-leading NYX content, delivered via their PlaySugarHouse.com real-money casino, regulated in New Jersey, and their SugarHouse Casino4Fun™ site. Players can enjoy industry-leading games from NYX's wholly owned subsidiary, NextGen Gaming, such as Merlin's Millions and Gorilla Go Wild on the channel of their choice - including a significantly expanded mobile game selection. Kevin Vonasek, NYX's Chief Product Officer Americas said, "NYX is both excited and fortunate to be working with Rush Street Interactive. Richard Schwartz and his team are thought leaders in the interactive gaming space and we view Rush Street as a key strategic partner in our anticipation of further iGaming regulation in the US. We're very happy to add PlaySugarHouse.com to a list of over 200 international and US casinos who currently offer NYX games to their players." "We have been impressed by NYX's strategic foresight to build a large library of quality mobile casino games and enable operators such as RSI to deploy these games easily on both online gambling and social gaming sites via a single integration between our proprietary igaming platform and NYX's OGS," said Richard Schwartz, President, Rush Street Interactive. This transaction marks the launch of the new NYX Social OGS service, which allows social casino platform operators to easily integrate award-winning NYX content into their social offering, just like real-money casino operators. Via the same API integration, providers can also offer the widest global portfolio of content available from NYX and its wide partner network for real-money iGaming (when operating in regulated jurisdictions). NYX Gaming Group Limited is a leading digital gaming provider headquartered in Las Vegas, USA with a staff of more than 1000 employees based in 14 countries across Europe, North America, Asia, New Zealand and Australia. The Company provides one of the world's largest portfolios of leading content and technology to some of the foremost gaming operators, lotteries and casinos across the globe. NYX also has one of the broadest distribution bases in the industry with over 200 unique customers and the widest portfolio of content available from their own global studios and broad partner network. The diversified game catalogue delivers content across web and mobile formats, focusing on Bingo, Casino, Lottery and Sportsbook verticals. NYX's Open Gaming System (OGS(tm)) was recently named 2016 Platform of the Year in acknowledgement of its position as the industry's market-leading gaming offering, which allows licensees to leverage the best-of-breed multi-vendor casino content from around the world. NYX Gaming Group Limited is listed on the TSX Venture Exchange under the symbol (TSXV: NYX). Rush Street Interactive, an affiliate of Rush Street Gaming (http://www.rushstreetgaming.com), was founded by pioneers in the internet gaming industry with decades of collective experience in developing and operating online gaming sites. Rush Street Interactive is also the developer and operator of Casino4Fun at SugarHouse Casino in Philadelphia and the real-wager PlaySugarHouse.com site in New Jersey. Rush Street Gaming is one of the fastest-growing gaming companies in North America. Rush Street developed and operates SugarHouse Casino in Philadelphia, PA., Rivers Casino in Pittsburgh, PA, Rivers Casino in Des Plaines, IL, and Rivers Casino in Schenectady, NY. For more information, visit RushStreetGaming.com.
News Article | February 23, 2017
NIRA Dynamics har nyligen rullat ut en helt ny funktion för bilar, som förväntas öka trafiksäkerheten avsevärt. Funktionen räknar kontinuerligt och i realtid ut hur mycket grepp (friktion) en bil har mot vägbanan. Denna information om vägens tillstånd skickas från ett stort antal bilar till en central server, från vilken insamlad vägdata sedan kan skickas ut till bilar som är på väg in i det aktuella området. Dessa får därmed relevant väginformation och halkvarningar i tid. Under vintern 2016/2017 har NIRA försett Trafikverket och Klimator AB med mjukvara för ett stort antal bilar som kontinuerligt samlar in information om väglaget. Informationen skickas till NIRAs servrar och aggregeras för att möjliggöra insikter om väglaget i realtid. Den nya funktionen, som kallas för Road Surface Information (RSI), gör det inte bara möjligt för förare att få information om halt väglag. Självkörande bilar behöver också veta hur bra väggreppet är och hur lång bromssträckan är i varje ögonblick, och med Road Surface Information läggs ännu en pusselbit till möjliggörandet av säkra självkörande bilar. Som en positiv bieffekt möjliggör NIRAs mjukvara även effektivare och miljövänligare vinterlagshållning, något som kan innebära stora kostnadsbesparingar. NIRA Dynamics har de senaste åren satsat stora resurser på att ligga i framkant när det gäller funktioner för självkörande och uppkopplade bilar. Med satsningen, som bland annat inkluderar närvaro i Silicon Valley, har NIRA lyckats positionera sig som en unik leverantör när det gäller väglagsinformation insamlad från bilar i realtid. SVT publicerade nyligen ett inslag om lösningen: OM NIRA: NIRA Dynamics grundades 2001 och har sitt huvudkontor i Sverige. Med specialistkompetens inom bland annat sensorfusion utvecklar NIRA kostnadseffektiva säkerhets- och navigationslösningar som skapar mervärden för den globala fordonsindustrin. Kunderna inkluderar några av världens ledande biltillverkare, såsom Audi, Volkswagen, Seat, Skoda, Volvo, Fiat och Renault.
News Article | January 19, 2017
CHICAGO, Jan. 19, 2017 (GLOBE NEWSWIRE) -- GATX Corporation (NYSE:GATX) today reported 2016 fourth quarter net income of $30.9 million or $0.77 per diluted share, compared to net income of $58.2 million or $1.37 per diluted share in the fourth quarter of 2015. The fourth-quarter 2016 and fourth-quarter 2015 results include net negative impacts from Tax Adjustments and Other Items of $0.37 per diluted share and $0.07 per diluted share, respectively. Net income for the full-year 2016 was $257.1 million or $6.29 per diluted share, compared to $205.3 million or $4.69 per diluted share in the prior year. The 2016 full-year results include a net benefit from Tax Adjustments and Other Items of $0.52 per diluted share, and the 2015 full-year results include a net negative impact from Tax Adjustments and Other Items of $0.68 per diluted share. Details related to Tax Adjustments and Other Items are provided in the attached Supplemental Information. Brian A. Kenney, president and chief executive officer of GATX stated, “GATX achieved record earnings per share again in 2016 despite the rail industry experiencing a second year of reduced carloadings and a large oversupply of railcars. Our well-diversified fleet, quality customer base, and outstanding service helped Rail North America maintain high utilization of 98.9% at year end. We continued to optimize our fleet by selling railcars into a robust secondary market, with Rail North America remarketing income eclipsing $46 million in 2016. We also continued to improve the efficiency of our maintenance network, in part by successfully executing our strategy of servicing more of our railcars within our owned network. “Lease rates experienced significant pressure during the year. The fourth quarter renewal lease rate change of GATX’s Lease Price Index decreased by 36.2%. In response to the lower lease rate environment, we successfully shortened the term of lease renewals, achieving an average renewal term of 29 months in the fourth quarter of 2016. “Within Rail International, GATX Rail Europe continued to produce solid operating results and stable utilization of 95.6% at year end. In 2016, American Steamship Company transported less tonnage than in 2015, as difficult conditions for our Great Lakes’ customers continued. In Portfolio Management, the Rolls-Royce Partners Finance affiliates produced another year of outstanding financial results." Mr. Kenney added, “Many of the market challenges we faced in 2016 continue as we move into 2017. As a result, we currently expect 2017 earnings to be in the range of $4.40 - $4.60 per diluted share. Our guidance represents a level of performance that is considerably higher than in prior downturns. This illustrates our success over the last several years of stretching lease terms to lock in attractive lease rates; optimizing the fleet through secondary market acquisitions and divestitures; improving the efficiency of our maintenance network; and, ultimately, focusing our business on our core strengths. “In the fourth quarter of 2016, there were some improved metrics in the North American rail industry as well as some new pockets of opportunity with certain customers. Absent these positive signs becoming a trend, the downturn in the North American rail industry may be more prolonged than in prior cycles. However, regardless of economic and industry fundamentals, we believe that GATX is well positioned to outperform our competitors, pursue growth opportunities, and provide excellent service to our customers across the globe.” RAIL NORTH AMERICA Rail North America reported segment profit of $48.5 million in the fourth quarter of 2016, compared to $98.8 million in the fourth quarter of 2015. Full-year 2016, Rail North America reported segment profit of $321.9 million, compared to $379.5 million in the same period of 2015. The decrease in quarterly segment profit was partially attributable to lower revenues resulting from fewer cars on lease. Additionally, in the fourth quarter of 2016, Rail North America reported a non-cash asset impairment loss of $29.8 million related to certain older cars in flammable service that have been permanently and negatively impacted by regulatory changes. Following an assessment of the market’s response to the regulatory changes, GATX has determined that it will likely retire the subject cars earlier than originally anticipated. This impairment is included in Tax Adjustments and Other Items in the attached Supplemental Information. The decline in full-year 2016 segment profit was the result of higher operating expenses, higher ownership costs, lower disposition gains on owned assets, and the aforementioned non-cash asset impairment loss. This was partially offset by higher revenues due to new railcar additions. At December 31, 2016, Rail North America’s wholly owned fleet was approximately 122,000 cars, including more than 17,700 boxcars. The following fleet statistics exclude the boxcar fleet. Fleet utilization was 98.9% at the end of the fourth quarter, compared to 99.0% at the end of the prior quarter and 99.1% at 2015 year end. During the fourth quarter, the GATX Lease Price Index (“LPI”), a weighted average lease renewal rate for a group of railcars representative of Rail North America’s fleet, showed a negative 36.2% renewal rate change. This compares to negative 21.4% in the prior quarter and positive 20.5% in the fourth quarter of 2015. The average lease renewal term for all cars included in the LPI during the fourth quarter was 29 months, compared to 29 months in the prior quarter and 43 months in the fourth quarter of 2015. The fourth-quarter renewal success rate was 64.7%, compared to 74.1% at the end of the prior quarter and 81.8% at 2015 year end. For full-year 2016, the LPI was negative 20.3% and the average renewal term was 32 months, compared to positive 32.2% and 54 months in 2015. Asset remarketing income for the year was $46.3 million and total investment volume was $495.6 million. Additional fleet statistics, including information on the boxcar fleet, and macroeconomic data related to Rail North America’s business are provided on the last page of this press release. RAIL INTERNATIONAL Rail International’s segment profit was $14.1 million in the fourth quarter of 2016, compared to $13.7 million in the fourth quarter of 2015. Rail International reported full-year segment profit of $63.0 million in 2016, compared to $70.1 million in 2015. While more railcars were on lease at GATX Rail Europe (“GRE”), higher maintenance, predominantly driven by higher wheelset costs, and lower gains on asset dispositions negatively affected full-year segment profit. At the end of 2016, GRE’s fleet consisted of approximately 23,100 cars and utilization was 95.6%, compared to 95.0% at the end of the third quarter and 95.8% at 2015 year end. Additional fleet statistics for GATX Rail Europe are provided on the last page of this press release. AMERICAN STEAMSHIP COMPANY American Steamship Company (“ASC”) reported a segment loss of $2.8 million in the fourth quarter of 2016 compared to segment profit of $1.7 million in the fourth quarter of 2015. Segment profit for full-year 2016 was $10.1 million, compared to $15.1 million in 2015. In the fourth quarter of 2016, ASC reported $5.0 million of expense related to an increased accrual for pending litigation and costs associated with the scheduled return of a leased vessel in 2017. ASC operated 11 vessels during the year and carried approximately 25.4 million net tons of cargo, compared to 13 vessels which carried 26.5 million net tons in 2015. The decrease in tonnage and segment profit was driven by reduced coal and limestone demand. PORTFOLIO MANAGEMENT Portfolio Management reported segment profit of $17.7 million in the fourth quarter of 2016 compared to $40.9 million in the fourth quarter of 2015. The decline in fourth-quarter 2016 segment profit was the result of lower gains on asset dispositions and lower income from Rolls-Royce Partners Finance (“RRPF”) affiliates due to timing of engine dispositions. For full-year 2016, Portfolio Management reported segment profit of $136.9 million compared to $49.8 million in 2015. The increase was predominantly driven by residual sharing fees and a residual sharing settlement fee. The settlement fee is included in Tax Adjustments and Other Items in the attached Supplemental Information. COMPANY DESCRIPTION GATX Corporation (NYSE:GATX) strives to be recognized as the finest railcar leasing company in the world by its customers, its shareholders, its employees and the communities where it operates. As the largest global railcar lessor, GATX has been providing quality railcars and services to its customers for more than 118 years. GATX has been headquartered in Chicago, Illinois, since its founding in 1898. For more information, please visit the Company’s website at www.gatx.com. TELECONFERENCE INFORMATION GATX Corporation will host a teleconference to discuss its 2016 fourth-quarter and full-year results. Call details are as follows: Call-in details, a copy of this press release and real-time audio access are available at www.gatx.com. Please access the call 15 minutes prior to the start time. Following the call, a replay will be available on the same site. FORWARD-LOOKING STATEMENTS Forward-looking statements in this press release that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements that reflect our current views with respect to, among other things, future events, financial performance and market conditions. In some cases, forward-looking statements can be identified by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would,” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Specific risks and uncertainties include, but are not limited to, (1) inability to maintain our assets on lease at satisfactory rates; (2) weak economic conditions, financial market volatility, and other factors that may decrease demand for our assets and services; (3) decreased demand for portions of our railcar fleet due to adverse changes in commodity prices, including, but not limited to, sustained low crude oil prices; (4) events having an adverse impact on assets, customers, or regions where we have a large investment; (5) operational disruption and increased costs associated with increased railcar assignments following non-renewal of leases, compliance maintenance programs, and other maintenance initiatives; (6) financial and operational risks associated with long-term railcar purchase commitments; (7) reduced opportunities to generate asset remarketing income; (8) changes in railroad efficiency that could decrease demand for railcars; (9) operational and financial risks related to our affiliate investments, including the RRPF affiliates; (10) fluctuations in foreign exchange rates; (11) failure to successfully negotiate collective bargaining agreements with the unions representing a substantial portion of our employees; (12) the impact of new regulatory requirements for tank cars carrying crude, ethanol, and other flammable liquids; (13) deterioration of conditions in the capital markets, reductions in our credit ratings, or increases in our financing costs; (14) asset impairment charges we may be required to recognize; (15) competitive factors in our primary markets; (16) risks related to international operations and expansion into new geographic markets; (17) exposure to damages, fines, and civil and criminal penalties arising from a negative outcome in our pending or threatened litigation; (18) changes in or failure to comply with laws, rules, and regulations; (19) inability to obtain cost-effective insurance; (20) environmental remediation costs; (21) inadequate allowances to cover credit losses in our portfolio; and (22) other risks discussed in our filings with the US Securities and Exchange Commission (SEC), including our Form 10-K for the year ended December 31, 2015, and our subsequently filed Form 10-Q reports, all of which are available on the SEC’s website (www.sec.gov). Investors should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and are not guarantees of future performance. The Company undertakes no obligation to publicly update or revise these forward-looking statements. Investor, corporate, financial, historical financial, photographic and news release information may be found at www.gatx.com. (*) In addition to financial results reported in accordance with GAAP, we provide certain non-GAAP financial information. Specifically, we exclude the effects of certain tax adjustments and other items for purposes of presenting net income, diluted earnings per share, and return on equity because we believe these items are not attributable to our business operations. Management utilizes this information when analyzing financial performance because such amounts reflect the underlying operating results that are within management’s ability to influence. Accordingly, we believe presenting this information provides investors and other users of our financial statements with meaningful supplemental information for purposes of analyzing year-to-year financial performance on a comparable basis and assessing trends. _________ (1) Includes on- and off-balance-sheet recourse debt; capital lease obligations; commercial paper and bank credit facilities, net of unrestricted cash. (2) Calculated as total recourse debt / shareholder’s equity. (*) We disclose total on- and off-balance sheet assets because certain operating assets are accounted for as operating leases and are not recorded on the balance sheet. We include these leased-in assets in our calculation of total assets (as adjusted) because it gives investors a more comprehensive representation of the magnitude of the assets we operate and that drive our financial performance. In addition, this calculation of total assets (as adjusted) provides consistency with other non-financial information we disclose. We also provide information regarding our leverage ratios, which are expressed as a ratio of debt (including off-balance sheet debt) to equity. The off-balance sheet debt amount in this calculation is the equivalent of the off-balance sheet asset amount. Reporting this corresponding off-balance sheet debt amount provides investors and other users of our financial statements with a more comprehensive representation of our debt obligations, leverage, and capital structure. _________ (1) GATX’s Lease Price Index (LPI) is an internally-generated business indicator that measures lease rate pricing on renewals for our North American railcar fleet, excluding boxcars. The index is calculated using the weighted average lease rate for a group of railcar types that GATX believes best represents its overall North American fleet, excluding boxcars. The average renewal lease rate change is reported as the percentage change between the average renewal lease rate and the average expiring lease rate, weighted by fleet composition. The average renewal lease term is reported in months and reflects the average renewal lease term of railcar types in the LPI, weighted by fleet composition. (2) Excludes boxcar fleet. (3) As reported and revised by the Federal Reserve. (4) As reported by the Association of American Railroads (AAR). (5) As reported by the Railway Supply Institute (RSI). (6) Not available, not published as of the date of this release.
News Article | February 23, 2017
Value creation potential further strengthened in 2016 …around the four core strategic pillars defined at the start of 2015 with three new driving forces for acceleration: 1 All the figures presented in this document exclude any impact for IFRS 5 as well as the costs linked to the offer for Foncière de Paris, representing 4.2 million euros 2 Restated for costs linked to the departure of the previous Chief Executive Officer, recurrent net income represents 349.7 million euros (+0.1%) 3 Subject to approval by the General Meeting Strong focus on creating value and rationalizing the portfolio in 2016 Following on from an exceptional year for its portfolio’s rotation in 2015, Gecina maintained its firm focus on rationalizing its portfolio and creating value in 2016. The Group has secured nearly 2.0 billion euros of sales of real estate assets, delivering an immediate accretive impact on NAV, with 644 million euros excluding the healthcare portfolio’s sale and an average premium of around +15% versus the latest appraisal values, capitalizing on favorable conditions on the investment market to maximize value extraction by divesting mature or non-strategic assets. Alongside this, Gecina secured nearly 321 million euros of new investments in 2016 in the best business districts in the Paris Region, at the heart of Paris (rue Guersant, rue de Madrid) and in the Southern Loop of Paris’ Western Crescent (Be Issy in Issy-les-Moulineaux), through operations with strong potential for creating value. The total pipeline for development and redevelopment operations is up to over 3.7 billion euros, despite the delivery of two major projects in 2016 (City 2 and Le Cristallin in Boulogne). Seven new development projects were launched in 2016, thanks to the new investments secured during the year (Be Issy and rue de Madrid), as well as five new redevelopment operations that started up in 2016 on assets within the portfolio after the properties were vacated (three new projects in Paris City, with the other two located in Neuilly and Levallois-Perret). Gecina's pipeline for committed projects is up to over 1.5 billion euros (versus 910 million euros at end-2015), based on 15 operations, with nearly 90% located in Paris City and the Western Crescent's best sectors (Issy-les-Moulineaux, Neuilly and Levallois). This committed pipeline will have a significant accretive impact on NAV as the work progresses and on recurrent net income when the projects are delivered, expected for 2017 to 2019. NAV climbed +7.7% to 132.1 euros per share in 2016, with an increase of around +9.5 euros per share, driven primarily by the total return strategy rolled out, particularly with capital gains from sales, as well as growth in the value of assets acquired recently or under development. Including the 5 euro dividend paid in 2016, the total property return performance comes out at nearly +12%. Recurrent net income (Group share) was stable in 2016 compared with 2015 (-0.5%). Restated for costs linked to the departure of the previous Chief Executive Officer, recurrent net income represents 349.7 million euros (+0.1%). This performance factors in significant changes in scope, particularly with the major acquisitions made in 2015 (primarily the T1&B buildings in La Défense and the PSA Group's current headquarters in Paris' CBD), as well as sales of mature and non-strategic assets concentrated primarily over 2016 (sales of the healthcare portfolio and office buildings located in non-strategic areas for Gecina). The performance for 2016 also reflects the continued optimization of financial expenses, down -28.3%, with an overall average cost of debt of 2.2% (down 50 bp) and a significant increase in the maturity of drawn debt and rate hedging. Very positive market environment for central sectors, particularly in Paris City Take-up in Paris City - where Gecina holds 54% of its office portfolio – climbed +14% in 2016, accounting for nearly half of the total volume of transactions for the Paris Region, while immediate supply is down -30%. The vacancy rate for Paris City is close to an all-time low, with 3.5%, reflecting a shortage of quality properties. CBRE reports that a growing percentage of transactions are motivated by a preference for central locations, recognized as a productivity factor, while also making it possible to limit staff turnover, particularly for high value-added employees. These positive trends are in line with Gecina's expectations and confirm the relevance of the Group's realignment strategy announced at the start of 2015. The delivery of projects currently under development is expected to cover these growing needs, which will accelerate if this trend is reinforced by businesses relocating as a result of Brexit. Gecina is confirming its main strategic guidance as presented at the start of 2015 and will continue building on its progress from the last few years around four core pillars for creating value (Value added investments, opportunistic disposals, Harnessing value from our own portfolio and innovation), with its ambition to accelerate the process underway. Gecina's teams are already working on the following three drivers for acceleration: Outlook for the short and medium term 2017 will be marked by these strong choices made by Gecina in terms of value extraction, particularly the asset sales completed in 2016 and the launch of work to redevelop five buildings that were previously occupied, in order to optimize their value extraction. In 2017, recurrent net income, restated for the impact of the healthcare sale, is expected to contract by nearly -5% to -6%4. This expected performance reflects the combined impact of underlying growth, which is expected to reach around +2% to +3%5, and the start of redevelopment projects, which will be accretive when they are delivered, expected primarily for 2018 and 2019. Gecina therefore has very strong potential for growth and value extraction through its pipeline in particular, as well as positive trends for the Group's preferred sectors. In view of this, average recurrent net income growth (CAGR) over the medium term (between 2018 and 2021) is expected to come in at around +5% to +7%6. As a result, considering the Group’s confidence in its outlook for the medium term, Gecina plans to submit a proposal at the general meeting for a dividend up +4% to 5.20 euros per share for 2016. 4 These objectives do not include assumptions for any sales or investments and may therefore be revised up or down depending on opportunities for investments and sales during the year 5 Including the impact of sales (excluding healthcare) in 2016, deliveries of assets in 2016 and 2017, and organic growth 6 This objective may be revised up or down depending on opportunities for investments and sales Méka Brunel, Chief Executive Officer: “Our strategic project is moving forward, and we firmly believe that the direction taken by the Group since early 2015 is the right one for the future. In an environment marked by the end of rate cuts, it is essential to move more quickly and not curb our ambitions. Today, even more than in the past, we need to be selective, responsive and flexible, in a market that will involve not only new risks, but also new opportunities that will need to be capitalized on effectively. A dynamic approach therefore needs to be set in motion to give the Group's ambitions a new dimension. Our operational performances from 2016 are solid and encouraging, and our pipeline offers a source of value creation and growth that is unrivalled in continental Europe, in order to better serve our shareholders in the future”. Bernard Michel, Chairman: “The strategy put in place at the start of 2015 is already delivering benefits, as shown by our results for 2016. Acknowledging the major work accomplished by Gecina's teams, the Board of Directors believes that the strategy can be ramped up again in order to accelerate our effective creation of value. The Board is aware of Gecina's strategic potential and is therefore embarking on this new phase in the Group's history with confidence”. Rental income in line with the Group’s forecasts Gross rental income came to 540 million euros in 2016, down -6.0%, reflecting the significant changes in scope from the last two years. Like-for-like, rental income shows a moderate contraction of -0.5%. Like-for-like, this moderate contraction of -0.5% at end-2016 is consistent with the Group’s expectations. It factors in the level of indexation, which is still low (+0.2%), and the slightly negative reversion resulting from renegotiations in 2015, some of which came into effect at the start of 2016. Like-for-like growth has also been impacted by the departure of a tenant from a building located in the Outer Rim, while part of the space vacated has already been relet. Excluding just this asset, rental income is stable like-for-like (+0.1%). On a current basis, the -6.0% reduction is linked primarily to the high volume of sales completed and particularly the healthcare portfolio's sale, finalized on July 1, 2016. This drop also reflects the sales programs rolled out in 2015 and 2016, making it possible to achieve significant capital gains on residential assets, as well as mature or non-strategic office buildings. Lastly, the change in rental income on a current basis also factors in the temporary loss of rental income from office buildings with strong value creation potential, on which redevelopment work has been launched following their tenants' departures. Over the period, the additional rent generated by acquisitions and deliveries made in 2015 and 2016 totaled +46.1 million euros, with the T1&B buildings in La Défense, PSA-Grande Armée in Paris' CBD, City 2 in Boulogne-Billancourt, Guersant-2 in Paris and four student residences. On the other hand, the loss of rental income resulting from sales represents -70.5 million euros, with -37.1 million euros from the healthcare portfolio's sale and -33.4 million euros resulting from sales of commercial and residential assets in 2015 and 2016, particularly in Gentilly, Boulogne-Billancourt, La Garenne-Colombes, Neuilly, Suresnes and Rueil Malmaison. The change in rental income also reflects the impact of the building redevelopment projects launched in 2015 and 2016, representing a loss of rent of around -8.2 million euros. Offices: rental income up thanks to the Group’s growing specialization On a current basis, rental income from offices is up +2.4% thanks in particular to the impact of the acquisition of the T1&B buildings in La Défense and PSA’s current headquarters in Paris’ CBD in the second half of 2015, as well as acquisitions immediately generating rental income that were finalized in 2016 (City 2 in Boulogne-Billancourt, Guersant-2 in Paris). Over the year, these acquisitions offset the impact of sales and redevelopments (particularly the Paris-Guersant 1 building in 2015, as well as the Octant-Sextant assets in Levallois, Paris-Ville l’Evêque, Paris-Friedland and a real estate complex in Neuilly in 2016). Like-for-like, rental income is down slightly, with -0.5%, in line with the Group’s expectations. This slight contraction factors in a particularly low level of indexation (+0.2%) and the latest impacts of the renewals and renegotiations granted in 2015 and early 2016 on suburban Paris assets in return for extending the maturity of their leases. Like-for-like growth notably reflects the impact of the departure of Oracle, which vacated part of the Crystalys building in Vélizy at the end of August 2015 (in the Paris Region's Outer Rim). Today, this space has been partially relet. Excluding just this asset, like-for-like growth would be positive, with +0.3% for 2016. Like-for-like rental income growth is already positive for Paris City (+1.4%), confirming the first signs of rents picking up again in central sectors. In view of the improvement in rental market conditions in the Paris Region’s most central sectors, the like-for-like change in office rental income is expected to be positive in 2017. The trends observed for 2016 confirm Gecina’s confidence in the Paris Region’s most central business sectors picking up again. Although they reveal an upturn in take-up across the entire Paris Region, the Immostat statistics published recently show significantly contrasting trends within the region. While the most central areas and particularly Paris City have reached a rental turning point, the situation is still more delicate for more peripheral areas (Inner and Outer Rims), although Gecina has very few assets in these sectors. Take-up shows an average increase of +7% for the Paris Region compared with 2015, but the most central sectors have continued to account for the majority of the volume of transactions recorded. Take-up for Paris City climbed +14% in 2016, while the volume came in 32% higher than the 10-year average, accounting for nearly half of the total volume of transactions for the Paris Region. However, trends for the rest of the region are less positive, with an increase in take-up of only +1%, lower than the 10-year averages, particularly in more peripheral areas in the Inner and Outer Rims. Immediate supply levels are also contracting, with an average of -10% for the Paris Region. However, once again, the trends are very mixed and more positive for the most central sectors. While immediate supply levels are down -30% for Paris City and -7% for the Western Crescent and La Défense, they show only a moderate reduction for peripheral sectors (-5% for the Inner Rim and -2% for the Outer Rim). For Paris City, following the contraction in available supply, it now represents only 15% of total immediate supply for the Paris Region. As a result, the average vacancy rate for Paris City, reported by BNP Paribas Real Estate, is now down to less than 3.5% (vs. 5% at end-2015), highlighting the shortage of quality assets and moving close to an all-time low. On average for the Paris Region, this rate is down from 7.4% to 6.7%. The outlook in terms of available supply within one year suggests that the market balance will continue to be favorable in 2017. The lack of available supply for quality premises in the region's most central sectors is expected to support rental trends and confirm the moderate upturn in market rents seen primarily in Paris and La Défense. Rental income from traditional residential assets is virtually stable like-for-like (-0.3%), primarily due to no impact for indexation in 2016. On a current basis, the -6.2% contraction primarily factors in the program to sell apartments on a unit basis when they become vacant as tenants naturally free up assets. The student residence portfolio achieved strong growth in rental income (+17.5%) in 2016, driven by the major deliveries seen in the third quarter of 2015 in Paris, Bagnolet, Palaiseau-Saclay and Bordeaux. Like-for-like, rental income is down -1.6%, notably factoring in a temporary increase in the vacancy rate linked to work to overhaul the IT and operational systems in a residence in the Paris Region; excluding this residence, like-for-like growth comes out at +0.8%. The average financial occupancy rate for 2016 came to 95.5% excluding healthcare (95.9% including the healthcare portfolio), stable over six months and down slightly year-on-year, linked primarily to the delivery of Le Cristallin, which had not been let by the end of 2016. Indeed, this rate does not take into account the lease signed in January 2017 with the Renault Group to rent all of this asset. Significant lettings successes since the start of 2016 Gecina has secured major lettings transactions since the beginning of 2016, with nearly 95,000 sq.m let, prelet, relet or renegotiated. For instance, the Group has signed leases with CREDIPAR for the “Pointe Métro 2” building in Gennevilliers (10,000 sq.m), with the Orange Group for “SKY 56” in Lyon Part-Dieu (16,000 sq.m), with the Renault Group for “Le Cristallin” in Boulogne-Billancourt (11,600 sq.m), and with the Caisse Régionale RSI Ile-de-France for “Dock-en-Seine” (9 000 sq.m). Considering the discussions that are underway, Gecina is confident about the volume of transactions that will be able to be achieved in 2017. Recurrent net income (Group share) is almost stable year-on-year at 347.4 million euros (-0.5%). Excluding the costs linked to the departure of the previous Chief Executive Officer, recurrent net income (Group share) shows a very slight increase, up to 349.7 million euros (+0.1%). This stability reflects the impact of the acquisitions made in 2015 (including T1&B in La Défense and PSA’s current headquarters in Paris' CBD), as well as the continued optimization of financial expenses, which, during the year, offset the impact of the healthcare portfolio's sale (finalized on July 1, 2016) and the new projects launched to redevelop buildings after they have been vacated. The rental margin represents 92.4%, up 80 bp year-on-year, driven by the improved margin for the office portfolio, benefiting from the fully let, single-tenant assets acquired in 2015 being integrated into Gecina’s portfolio, with their higher rental margins than the Group average. The rental margin for offices also reflects the impact of the restatement of rental management fees previously recognized as revenue from “services and other income”. Like-for-like, the office rental margin is up +0.1%. 7 Recurrent net income excludes the costs linked to the offer for Foncière de Paris, representing 4.2 million euros Lower cost and higher average maturity for debt and hedging Gecina has continued to optimize its liabilities, capitalizing on a particularly positive environment to make progress on all its financial indicators. Net financial expenses are down -28.3% year-on-year to 86.0 million euros, thanks to the optimization work carried out in 2015 and 2016 in a very positive market environment. Overall, the average cost of debt (including undrawn credit lines) came to 2.2% for 2016, compared with 2.7% in 2015, down -50bp. As a result of this strong reduction in the average cost of debt and financial expenses, Gecina’s ICR shows a significant increase for the year, up from 3.9x at the end of 2015 to 4.9x at end-2016. In addition to optimizing the average cost of debt, Gecina has capitalized on favorable market conditions to increase its average maturity to 6.7 years (versus 5.7 years at end-2015). Gecina has also significantly strengthened hedging for its debt. At December 31, 2016, 77% of debt was hedged on average for the next seven years, with the average maturity of this hedging up to 7.3 years at end-2016 from 5.8 years one year previously. Net debt totaled 3,582 million euros at December 31, 2016, down 1,135 million euros for the year, resulting from a predominantly net seller profile in 2016. At end-2016, Gecina's LTV represented 27.7% including duties and 29.4% excluding duties, down -7.0 pts from end-2015 (36.4% excluding duties). This reduction primarily reflects the high volume of sales completed in 2016, and particularly the healthcare portfolio's sale, finalized on July 1. In addition, Gecina has 1.9 billion euros of available liquidity, making it possible to cover all its credit maturities through to 2020. Thanks to the Group’s balance sheet, Gecina has a particularly high level of financial headroom, enabling it to be extremely opportunistic, flexible and responsive on the investment market. 2.0 billion euros of sales secured or completed in 2016, with 644 million euros excluding healthcare In line with the Group's ambition to accelerate its portfolio rotation, Gecina has completed or secured nearly 2.0 billion euros of sales since the start of 2016 (excluding duties, Group share), including the sale of the Group's healthcare portfolio, which was finalized on July 1. The amount of sales completed or secured excluding the healthcare portfolio represents 644 million euros, including 483 million euros finalized with a premium of around +15% versus the latest appraisal values and an exit yield of approximately 4.2% based on expected annualized rents for 2016. Agreement to sell the healthcare portfolio for 1.35 billion euros, with a premium of around 16% Gecina finalized the sale of its healthcare portfolio to Primonial Reim on July 1, 2016. The transaction represented a total of 1.35 billion euros (including commissions and fees), with a net yield of 5.9% and a premium of around 16% versus the latest appraisal values. For reference, the value retained in the accounts at end-2015 already reflected the price agreed on with the buyer. 339 million euros of office sales completed or secured in 2016 Since January 1, 2016, the Group has completed or secured nearly 339 million euros of office sales, 319 million euros of which have already been finalized, primarily in Rueil-Malmaison, Suresnes and Neuilly. These operations show an average premium versus the end-2015 appraisals of almost 7.3%, with a loss of rental income of approximately 4.7% based on expected annualized rents for 2016. 305 million euros of residential sales completed or secured, with 189 million euros on a unit basis, achieving a premium of around 34% versus the appraisal values In 2016, Gecina completed or secured 189 million euros of vacant unit-based residential sales, with 162 million euros already completed on, achieving a premium of around 34% compared with their appraisal values, while the loss of rental income for Gecina represents 3.2%. At end-December 2016, nearly 28 million euros of sales were subject to preliminary agreements. Alongside this, Gecina has secured 113 million euros of block residential sales, also achieving a significant premium versus the latest appraisals (around 19%). Over 321 million euros of new investments secured Alongside these sales, Gecina has already secured over 321 million euros8 of new investments in assets for development or redevelopment that will be delivered in 2018 and 2019. This amount concerns the acquisition of three assets, including one off-plan in Issy-les-Moulineaux, while the other two assets - 34 rue de Guersant and 7 rue de Madrid, at the heart of Paris - are already being redeveloped or could benefit from redevelopment programs. During the first half of the year, Gecina signed an agreement with the developer PRD Office to acquire the “BE ISSY” office building off-plan, with delivery in 2018. This asset, located in Issy-les-Moulineaux, in the Southern Loop of Paris’ Western Crescent, will offer a gross leasable area of around 25,000 sq.m and 258 parking spaces. The transaction represents a total of 161 million euros including commissions and fees. Based on current market rents, Gecina expects this operation to achieve a net yield on delivery of 6.7%. At the start of the second half of 2016, Gecina also acquired a building at 34 rue Guersant (Paris 17th) for nearly 51 million euros. This building, currently occupied by CBRE under a lease that will end in 2017, is adjacent to another asset already owned by Gecina at 32 rue Guersant, which is under redevelopment. The two buildings will be able to represent a combined complex with 20,000 sq.m of space, which is rare at the heart of Paris, while potentially offering significant operational synergies. Lastly, the Group has acquired a 10,500 sq.m asset located at 7 rue de Madrid (Paris 8th), in Paris' CBD. This asset, which is currently vacant, is now being redeveloped, taking the total volume of investment up to almost 109 million euros, with a net yield on delivery of nearly 6.4%. 8 Total amount of investments secured including acquisition prices and outstanding capex through to project deliveries Buoyant project pipeline creating value over the short, medium and long term In 2016, Gecina's pipeline grew to over 3.7 billion euros, despite the delivery of the “City 2” and “Le Cristallin” buildings in Boulogne-Billancourt. More than 41% of this portfolio is made up of committed projects (1.54 billion euros), with 19% controlled and certain projects (0.70 billion euros), on which work will start up when their current tenants leave, while 40% (1.49 billion euros) is made up of projects identified within Gecina's portfolio, but when tenant departures are not yet certain. Seven new projects representing over 100,000 sq.m of offices were launched this year in Paris, Neuilly, Levallois-Perret and Issy-les-Moulineaux. In total, the pipeline for committed projects could generate up to 100 million euros of additional rental income. 1.54 billion euros of committed projects with deliveries expected primarily for 2018 The committed pipeline is up to 1.54 billion euros (versus 0.91 billion euros at end-2015), with an average yield on delivery of around 6.4% expected, offering significant value creation potential given the project locations. Half of this committed pipeline is concentrated in Paris City, with 37% in the Western Crescent (Levallois, Neuilly and Issy-les Moulineaux). The year-on-year increase in the committed pipeline (+628 million euros), despite the delivery of two buildings (City 2 and Le Cristallin), reflects the inclusion of seven new committed projects: At end-2016, 463 million euros were still to be invested on committed projects, with 276 million euros in 2017, 170 million euros in 2018 and 17 million euros in 2019. 0.70 billion euros of “controlled & certain” projects over the short or medium term, exclusively in Paris' CBD The “certain” controlled pipeline concerns the assets held by Gecina that are currently being vacated and for which a redevelopment project aligned with Gecina’s investment criteria has been identified. These projects will therefore be launched over the coming half-year or full-year periods. These “certain” projects that have not yet been committed to represent a combined total of 0.70 billion euros (versus 1.2 billion euros at end-2015). This reduction reflects the launch of redevelopment work for the “Octant-Sextant” and “20 Ville l’Evêque” buildings in the first half of the year, as well as a real estate complex in Neuilly and another two buildings in Paris during the second half of the year. The “certain” controlled pipeline is now concentrated exclusively in Paris' CBD, through projects with indicative delivery dates from 2020 to 2021. 1.49 billion euros of “controlled & likely” projects over the longer term, with 87% in Paris City The “probable” controlled pipeline covers the projects identified and owned by Gecina that may require pre-letting (for greenfield projects in peripheral locations within the Paris Region) or cases when tenant departures are not yet certain over the short term. (1) Total investment for the committed pipeline = latest appraisal value from when the project started up + total build costs. For the controlled pipeline = latest appraisal to date + operation's estimated costs (2) Includes the value of plots and existing buildings for redevelopments (3) This project, which is currently occupied, is classed as committed since the tenant's departure has been firmly agreed on for the end of the first half of the year Portfolio value up +3.8% like-for-like in 2016 The portfolio value (block) represents 12,078 million euros, up +3.8% (+4.6% on a unit value basis) like-for-like compared with December 31, 2015. This increase in value includes a very slightly positive rent effect, indicating the effective upturn on the rental market. Like-for-like, the office portfolio value is up +4.3%, reflecting a +6.4% increase in value for the Paris portfolio. The other sectors recorded lower increases, with +1.7% growth for the Western Crescent and La Défense, while the other sectors are virtually stable (Paris Inner and Outer Rim and Lyon). These appraisals reflect a 22 bp compression of capitalization rates for offices to 4.65% on a like-for-like basis since the end of 2015. The valuation retained for Gecina’s residential portfolio is up +2.2% like-for-like for the period. The average capitalization rate for Gecina’s portfolio, including the residential portfolio on a block value basis, comes to 4.60%, with an -18 bp compression over one year. NAV growth supported by the strategy and favorable market trends Diluted EPRA triple net NAV (block) came to 132.1 euros per share, with strong growth of +7.7% year-on-year. The total return performance represents nearly +12%, including the 5 euro dividend paid out in 2016. This performance reflects a compression of capitalization rates for offices in Paris in particular, and a slightly positive business plan effect, as well as the impacts of Gecina’s total return strategy, through high levels of capital gains on sales that have been completed or are underway (+1.3 euros per share), combined with the increase in the value of assets acquired recently, and the portfolio under development (+2.9 euros per share). NAV per share growth represents +9.5 euros for 2016 and can be broken down as follows: On a unit value basis, diluted EPRA NAV represented 143.6 euros per share at end-2016, compared with 133.7 euros per share at December 31, 2015, up +7.3%. Outlook for 2017 and the medium-term 2017 will be marked by Gecina's strong choices in terms of value extraction, particularly the sales of mature and non-strategic assets in 2016, as well as the launch of work to redevelop five previously occupied buildings (including three at end-2016) in order to optimize its extraction of value creation potential. In 2017, recurrent net income, restated for the impact of the healthcare sale, is expected to contract by nearly -5% to -6%9. This expected performance reflects the combined impact of underlying growth, which is expected to reach around +2% to +3%10 including the impact of sales (excluding healthcare) and the start of work to redevelop buildings from the portfolio after they have been vacated. Gecina therefore has very strong potential for growth and value extraction through its pipeline in particular, as well as positive trends for the Group's preferred sectors in terms of real estate investment. In view of this, average recurrent net income growth (CAGR) over the medium term (between 2018 and 2021) is expected to come in at around +5% to +7%11. As a result, considering the Group’s confidence in its outlook for the medium term, Gecina plans to submit a proposal at the general meeting for a dividend up +4% to 5.20 euros per share for 2016. 9 This objective may be revised up or down depending on opportunities for investments and sales during the year 10 Including the impact of sales (excluding healthcare) in 2016, deliveries of assets in 2016 and 2017, and organic growth 11 This objective may be revised up or down depending on opportunities for investments and sales Gecina owns, manages and develops property holdings worth 12.1 billion euros at end-2016, with nearly 97% located in the Paris Region. The Group is building its business around France’s leading office portfolio and a diversification division with residential assets and student residences. Gecina has put sustainable innovation at the heart of its strategy to create value, anticipate its customers' expectations and invest while respecting the environment, thanks to the dedication and expertise of its staff. Gecina is a French real estate investment trust (SIIC) listed on Euronext Paris, and is part of the SBF 120, Euronext 100, FTSE4Good, DJSI Europe and World, Stoxx Global ESG Leaders and Vigeo indices. In line with its commitments to the community, Gecina has created a company foundation, which is focused on protecting the environment and supporting all forms of disability. At the Board meeting on February 23, 2017, chaired by Bernard Michel, Gecina's Directors approved the financial statements at December 31, 2016. The audit procedures have been performed on these accounts, and the certification reports have been issued after verifying the information contained in the annual report, included in the reference document. 3- FACTORS FOR LIKE-FOR-LIKE RENTAL INCOME CHANGES IN 2016 VS 2015 Gecina's tenants operate across a very wide range of sectors responding to various macroeconomic factors. Breakdown of tenants by sector (offices - based on annualized rents): Volume of rental income by three-year break and end of leases: Gecina’s gross financial debt represented 3,640 million euros at December 31, 2016, compared with 4,863 million euros at end-2015; net financial debt came to 3,582 million euros at end-2016, down 1,135 million euros, primarily linked to sales completed during the year. The main characteristics of the debt are as follows: (1) Gross financial debt = Gross nominal debt + impact of the recognition of bonds at amortized cost + accrued interest not due + other items The following table presents the schedule for Gecina's financing facilities at December 31, 2016, including unused credit lines: All the credit maturities for the next three years are covered by the unused credit lines (2,245 million euros) at December 31, 2016. In addition, 100% of drawn debt (after factoring in undrawn credit lines) has a maturity of over three years and nearly 70% has a maturity of over five years. In line with the 2016 bond issue, the company has adapted its short-term hedging portfolio, with 23 million euros paid out. Gecina's financial position at December 31, 2016 is compliant with the various limits likely to affect the conditions for repayment or early repayment clauses in the various credit agreements. The following table presents the position for the main financial ratios covered under the agreements: The change in annualized rental income between December 31, 2015 and December 31, 2016 reflects Gecina's strategic choices. From 507 million euros (excluding healthcare) at end-2015, annualized rental income came to 479 million euros at end-2016 (down –5.4%), primarily due to the impact of sales (excluding healthcare) carried out during the year (-21 million euros, -4.1%), in addition to five assets that are now being redeveloped following their tenants’ departures (-17 million euros, -3.3%), which will have an accretive impact on Gecina’s rental and valuation aggregates. The significant changes in scope conceal a positive business plan effect (change in the vacancy rate, rental reversion on acquisitions and deliveries) of around +10 million euros, i.e. +2.0%. Annualized rental income corresponds to the effective rental position on the year-end reporting date. As such, it does not take into consideration lettings or properties vacated, or sales or acquisitions of buildings that would not have an impact by the year-end reporting date. A proposal will be submitted at the General Meeting on April 26, 2017 to approve a cash payout of 5.2 euros per share in relation to 2016. Once the dividend for 2016 has been released for payment, a 50% interim payment (2.6 euros) will be made on March 8, 2017, followed by the balance on July 7, 2017. This document does not constitute an offer to sell or a solicitation of an offer to buy Gecina securities and has not been independently verified. If you would like to obtain further information concerning Gecina, please refer to the public documents filed with the French Financial Markets Authority (Autorité des marchés financiers, AMF), which are also available on our internet site. This document may contain certain forward-looking statements. Although the Company believes that such statements are based on reasonable assumptions on the date on which this document was published, they are by their very nature subject to various risks and uncertainties which may result in differences. However, Gecina assumes no obligation and makes no commitment to update or revise such statements.
News Article | March 3, 2017
Relational Solutions, Inc., une société Mindtree et un leader des solutions d'analyse, de veille économique, d'entreposage des données et de dépôts de signaux de demandes d'entreprise, a été nommée en tant que Fournisseur représentatif dans le « Market Guide for Trade Promotion Management and Optimization » publié par Gartner en février 2017. Selon le rapport de Gartner : « Les fabricants de biens de consommation continuent de consacrer une part importante de leurs budgets à l'administration de promotions et réductions de prix dans le cadre d'efforts collaboratifs avec leurs partenaires commerciaux. » Le rapport poursuit ainsi : « La disponibilité de solutions d'analyse avancées a introduit des niveaux variés de sophistication algorithmique. » TradeSmart, la solution d'analyse en tant que service de Mindtree pour le secteur des biens de consommation emballés (CPG), offre une meilleure gestion des recettes aux sociétés ayant investi dans des solutions de TPM. Conçue pour l'analyse et l'automatisation post-promotion, TradeSmart améliore les séances de planification commerciale conjointe en tirant parti des données de planification, de COGS, de POS, de transport et syndiquées pour fournir un RSI de dépenses de commercialisation précis. « Les sociétés CPG consacrent 15 à 25 % de leurs recettes au commerce. La plupart gèrent déjà leurs promotions commerciales », a déclaré Janet Dorenkott, vice-présidente adjointe de Relational Solutions, une société Mindtree. « En les aidant à optimiser le commerce, nous pouvons accroître leur couverture, leur offrir un accès plus rapide à des informations plus fiables et leur faire économiser des millions de dollars, qui rejoignent directement leur bilan. » Le rapport de Gartner auquel il est fait référence dans ce communiqué de presse est : « Market Guide for Trade Promotion Management and Optimization for the Consumer Goods Industry » (du 2 février 2017), par Ellen S. Eichhorn et Stephen E. Smith. Gartner ne cautionne aucun fournisseur, produit ou service représenté dans ses publications de recherche et ne conseille pas aux utilisateurs de technologies de sélectionner uniquement les fournisseurs présentant les meilleurs résultats. Les publications de recherche de Gartner présentent les opinions de l'organisation de recherche Gartner et ne sauraient être considérées comme des déclarations de faits. Gartner décline toute garantie, explicite ou implicite, concernant cette recherche, y compris toute garantie de conformité ou d'adéquation à une utilisation particulière. Mindtree [NSE : MINDTREE] fournit des services technologiques et de transformation numérique depuis la conceptualisation jusqu'à l'exécution, permettant aux clients du palmarès Global 2000 de se démarquer de la concurrence. Mindtree est une société fondamentalement numérique qui adopte une approche agile et collaborative pour créer des solutions personnalisées dans l'ensemble de la chaîne de valeur numérique. Dans le même temps, notre vaste expertise dans la gestion des infrastructures et des applications aide à optimiser votre environnement informatique pour en faire un atout stratégique. Que vous souhaitiez que votre entreprise se distingue, réinventer vos fonctions commerciales ou accélérer la croissance de votre chiffre d'affaires, nous pouvons vous aider à y parvenir. Consultez le site http://www.mindtree.com pour en savoir plus. Relational Solutions a été fondée en 1996 et acquise par Mindtree en 2015. En tant que partie intégrante de l'équipe numérique de Mindtree, notre bureau de Cleveland en est le Centre d'excellence en analyse. Nous sommes des experts de l'offre de solutions d'entrepôts de données d'entreprise, d'intégration des données, de veille économique, d'analyse et d'analyse prévisionnelle. Nous fournissons des solutions de point de vente, POS, épuration des données, intégration, dépôts de signaux de demandes d'entreprise et analyse des promotions commerciales destinées aux sociétés de biens de consommation emballés (CPG). Pour tout complément d'information sur nos services d'analyse, d'entreposage des données, d'intégration des données, de DSR et nos pratiques de veille économique, rendez-nous visite à l'adresse http://www.relationalsolutions.com. Pour tout complément d'information, contactez : Inde Ankita Dubey Mindtree +91-7899169001 firstname.lastname@example.org États-Unis Andrea Dunbeck Matter Communications +1-978-518-4555 email@example.com Europe Imogen Nation Hotwire +44-20-7608-4675 firstname.lastname@example.org
News Article | February 15, 2017
Restaurant Solutions, Inc. (RSI), a national Restaurant Accounting and Management system and services company for independent restaurants, announced today that two of their top industry experts, Dan Jacobs, Director of New Business Development, and Catherine Reeves, Sales Engineer will be speaking at the Littleton Restaurant Seminar on Thursday, February 23, 2017.