PAREF: revenue down 6% over nine months, rental income up 14%
For the first nine months of 2026, PAREF reported consolidated revenue of €18.5 million, down 6% year on year, due to two opposing movements.
Gross rental income of the property company rose 14%, to €5.9 million, while management fees from third-party asset management fell 13%, to €12.7 million.
The latter item accounts for the bulk of revenue, which is why it determines the overall trend. Excluding the effect of the sale of SOLIA Paref, the decline in revenue is reduced to 3%, according to the press release published on November 10, 2026.
Commissions fall 13%, recurring management income holds up better
The decline in commissions is primarily due to subscription commissions, which fell 67%, from €2.1 million to €0.7 million. The group attributes this to a SCPI market “once again weakened by the rise in long-term interest rates,” with fundraising “still concentrated on a limited number of vehicles.”
Management fees, which are recurring in nature, fell 4%, to €12.0 million, mainly due to a lower volume of disposal commissions, partially offset by new asset management mandates in Germany. Excluding the effect of the sale of SOLIA Paref, they rose 1% on a like-for-like basis.
To support distribution, PAREF Gestion strengthened its sales teams in September 2026. The subsidiary also launched PAREF Vitae Value Add Fund I at the end of September, a professional fund dedicated to healthcare, care and wellness real estate, invested mainly in France with selective extension into Europe.
Gross rents driven by the Tempo lease and indexation
On the property company side, gross rental income rose from €5.2 million to €5.9 million, owing to the new lease signed on the Parisian asset Tempo, a favorable base effect linked to the Franklin tower, and rent indexation.
Leasing activity at Tempo continued after the quarter-end. A nine-year firm lease covering more than 600 m² of office space was signed with a film production company, taking effect on December 31, 2026.
The portfolio continues to be refocused. On July 23, 2026, PAREF signed a preliminary sale agreement for the Croissy-Beaubourg (77) asset with a last-mile logistics real estate player. The sale, subject to the fulfilment of conditions precedent, is expected to be completed in the first quarter of 2027.
Average firm lease term falls to 3.83 years ahead of Wavestone's departure
The weighted average term until the next firm lease expiry stood at 3.83 years as of September 30, 2026, down from 4.06 years as of June 30, 2026, which the group attributes to the natural evolution of the portfolio.
In anticipation of upcoming expiries at the Franklin tower in La Défense, PAREF has begun marketing the spaces occupied by Wavestone. The consulting firm, which will consolidate its teams in central Paris, will vacate the two floors owned by PAREF in two stages, on June 30 and then September 30, 2027.
In third-party asset management, the SCPI PAREF Prima acquired two retail properties in Hamm and Bielefeld, Germany, in October 2026, totaling approximately 20,300 m², fully leased to Handelshof for seven and a half years firm.
For Parkway Life REIT, a preliminary agreement was signed for the acquisition of three nursing homes in France, for an amount of €38.8 million.
This latter transaction, subject to customary conditions precedent, is expected to be completed by the end of 2026. Parkway Life REIT's French portfolio will then comprise 14 nursing homes, valued at approximately €160 million.
Takuya Yamada, interim chairman and chief executive officer, sees in this “a refocused and actively managed portfolio, an expanded offer in healthcare real estate” and “rising recurring income”.
Over the first nine months, rental growth thus only partially offsets the decline in commissions, which remain the group's primary source of revenue.
