July 3 (Bloomberg) -- Fonciere des Regions SA, the French office landlord with stakes in five other real estate investment trusts, will report a drop of about 5 percent in property values for the first half, according to its chief executive officer.
The estimate, based on preliminary property valuations, compares with the 10.2 billion-euro ($14 billion) value of FDR’s properties at the end of 2008, following a 3.1 percent decline for the whole of that year.
“It shows how well our portfolio has held up,” said Christophe Kullmann, 43, in a July 1 interview at his office near the Arc de Triomphe in Paris. “We have long leases, low market rents and high capitalization rates, plus we have few prime assets in central business districts -- the assets which are suffering the most.”
