PAREF: Revenue Increases by 5%, Subscription Fees Halved
In the first quarter of 2026, PAREF recorded a revenue of 6.2 million euros, up by 5% year-over-year. This growth is primarily driven by an increase in rental income, while the fund management activity for third parties shows signs of contraction, with subscription fees decreasing by 51% in a competitive market.
Revenue Details and Performance
PAREF's consolidated revenue reached 6.2 million euros as of March 31, 2026, marking a 5% increase from the first quarter of 2025 (5.9 million). This growth is almost entirely due to the gross rental income, which surged by 47% to reach 1.9 million euros from 1.3 million a year earlier. This increase is supported by the contribution of the new lease signed on the Parisian asset Tempo and by the positive impact of rent indexing. Conversely, overall commissions declined by 7% to 4.3 million euros. Management fees remained nearly stable, increasing by only 0.3%, amounting to 3.9 million euros. Adjusted for the scope of the SOLIA Paref disposal, they grew by 3%, reflecting, according to the group, resilience in managed funds. However, subscription fees plummeted by 51%, dropping from 0.7 million to 0.3 million euros. The group attributes this decline to a highly competitive environment and announces a reorganization of its sales forces to support collection and capture new market shares.
Operational Developments and Strategic Moves
The weighted average lease term (WALB) of the portfolio stood at 4.03 years as of March 31, 2026, compared to 4.23 years at the end of 2025, reflecting the natural evolution of the portfolio over the period. Operationally, PAREF continues to roll out its European strategy. In March 2026, the group signed a 15-year lease with Virgin Active for 2,800 sqm within The Medelan in Milan. It also secured an asset management mandate in Munich covering 28,000 sqm with high revaluation potential. The PAREF Evo SCPI renewed its ISR label for three years and was once again awarded at the Sustainable SCPI Awards. PAREF Gestion maintained its Excellent rating in the 2026 Deciders Magazine rankings. The group finalized in February 2026 the disposal of SOLIA Paref to the RYZE group, as part of its focus on high-value-added activities: Asset Management, Fund Management, and Investment.
Financial Discipline and Strategic Focus
The group asserts its continued disciplined development of its European platform, with heightened attention to revenue quality, cost control, and the gradual improvement of its financial balances. The activity in the first quarter reflects both concrete operational advancements and the effects of the refocusing initiated in 2025. According to the management, this approach is accompanied by a demanding asset management based on targeted arbitrages and selective capital allocation, aiming to preserve the quality and performance of the managed vehicles in a volatile environment. The next step is the Mixed General Assembly scheduled for May 28, 2026, and the semi-annual results are expected on September 29, 2026.
