French office group Fonciere des Regions (FdR) posted a 1.3% increase in its recurrent net income to EUR 308 mln in 2010, and said it expects a stable result for 2011. Net Asset Value rose by 7.3% to EUR 4.44 bn in 2010, driven by a 5.3% like-for-like growth in its portfolio.

With a portfolio of EUR 8.6 bn, FdR said that in 2011 it will continue to focus on establishing partnerships with major tenants and improving the portfolio through a strategy of asset rotation. The company has unveiled a development pipeline of over EUR 1 bn for the coming years, as part of major efforts to take advantage of an ongoing upturn in the office market. In total, FdR has the potential to develop 300,000 m2 of commercial space with a target yield of over 7%, it said.

In 2010, the company improved its financial structure with the reduction of its total debt load by EUR 1 bn. Its loan-to-value (LTV) stood at 49% at end-2010, compared to 55.6% in 2009, allowing the company to meet its LTV target ahead of schedule.

Despite a context of rising interest rates, the average rate on debt improved to 4.4% versus 4.6% in 2009.

The group will propose a dividend of EUR 4.20 per share for 2010, representing 75% of the 2010 recurrent net income and in line with the company's policy to distribute between 70 and 85%.