PAREF in H1 2026: Rental income up 23.8%, asset value down 5%
PAREF closed its half-yearly accounts on 30 June 2026, marked by the improvement of its interest coverage ratio (ICR) to 1.64x, above the 1.20x threshold set by its banking partners.
The semester combines growth in rental income and recurring operating profit on one hand, and a decline in asset valuation and revalued net assets on the other, in a real estate market that the group describes as still constrained.
Rental income up 23.8%, asset value down 5%
Net rental income from assets held outright stands at €3.3 million on 30 June 2026, up 23.8% compared to the first half of 2025. This change is attributed to the new lease signed on the Tempo asset, a favorable base effect linked to the Tour Franklin, and rental indexation. On a constant scope basis, rents increased by 14.2%.
Meanwhile, the value of real estate assets declined by 5% compared to end-2025, to €165 million. This adjustment of -€7.9 million primarily concerned office buildings located in Paris and the Île-de-France region, in a context of rising yields required by investors and pressure on rental values. The portfolio comprises €152.8 million for 6 real estate assets (approximately 63,748 m²) and €12.7 million in financial interests in funds managed by the group.
Assets under management by the group amounted to €2.9 billion on 30 June 2026, down 5.1% compared to 31 December 2025.
Recurring operating profit at €1.8 million, SCPI subscriptions down 60%
Recurring operating profit came in at €1.8 million, up 80% compared to the first half of 2025. The group attributes this increase to higher rental income and cost control.
Asset management activities for third parties remain under pressure. Gross subscriptions recorded on SCPI funds during the semester stood at €4.9 million, down 60% compared to the first half of 2025, which the group attributes to market polarization where flows concentrate on a limited number of vehicles. PAREF Gestion also carried out arbitrages totaling €13.4 million over the period.
On the development front, the group signed a 15-year lease with Virgin Active covering 2,800 m² within "The Medelan" in Milan, and obtained an asset management mandate in Munich covering an asset of 28,000 m², alongside mandates already obtained in Berlin.
ICR at 1.64x, EPRA revalued net assets down 6.9%
The ICR ratio stands at 1.64x on 30 June 2026, above the 1.20x threshold applicable on this date. On 29 September 2025, the group obtained an agreement from all its banking partners for a waiver temporarily suspending the covenant related to the ICR for 2025 tests, when the ratio stood at 1.03x. This agreement provided for a reset of thresholds to 1.20x on 30 June 2026 and then 1.50x from 31 December 2026 onwards, accompanied by a suspension of dividend distribution until the ratio is restored (excluding SIIC obligation) and additional collateral.
EPRA Net Replacement Value (NRV) stands at €85.1 per share, down 6.9% compared to 31 December 2025. The group indicates it is continuing to refocus on its core business (Asset Management, Fund Management and Investment) and balance sheet cleanup, as part of the roadmap presented in February 2026.
The group has set 10 November 2026 for the publication of its financial information as of 30 September 2026.
