The attributable net loss came in at €252 million, narrowing the €393 million loss in 2008, while rentals crept fractionally higher to €183 million and operating expenses and financing costs declined. A slide in appraisal values of 7.8% for the year mainly came in the first half.

The portfolio, including transfer costs, ended the year valued at €3.27 billion, down from €3.67 billion at end-2008. This compared with attributable equity of €1.82 billion, down from €2.16 billion. The group, just under 60% owned by Colonial, was carrying net debt of €1.12 billion, little changed over 12 months, and thus had a loan-to-value ratio of 34.2%. The average cost of debt at 31 December 2009 was 4.6% and the average maturity was 3.2 years. Fully-diluted NAV per share at year end stood at €43.3, including transfer costs – down 15.5% from end-2008.

SFL, which invests in office and retail exclusively in Paris, sold properties during the year at a loss of €14.0 million compared to appraisal value at Dec. 31 2008 – an average discount of 9.3%. But excluding the impact of disposals and fair value adjustments to properties and financial instruments, together with related tax effects which distort comparisons, the group said it ended the year with an underlying profit of €108.3 million, an increase of 11.9%. In light of an attributable current cash-flow per share of €2.37 in 2009, the board is to recommend to the shareholders' meeting a dividend at €2.10 per share.

The board has decided to appoint Aref Lahham, principal of Orion Capital Managers, to fill a board vacated by Yves Defline. Orion early last year bought a package of around 6% of SFL equity from Goldman Sachs.