The group has set new growth in its net recurring income as itsobjective in 2010. It is maintaining an active distribution policy,and for 2009 is proposing up to €6.9 per share, with €3.3 availablein cash, plus six shares of Italian unit Beni Stabili. Describingthe scheme as exceptional, it said it has should cut the directholding by FdR to 52.5% from the current 68%.

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CEO Christophe Kullmann says FdR has set new growth in its netrecurring income as its objective in 2010. "After 10 years ofgrowth and the good resistance of its business model in 2009,Foncière des Régions wishes to consolidate its real estate positionfocused on commercial real estate and large clients," he says.

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FdR was caught at the start of the global crisis with acomparatively high debt load. It noted that it cut debt last yearby €1bn to reduce loan to value to 55.6% from 58.8% atend-2008.

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"The objectives of the FdR 2010 plan, a plan initiated onJanuary 2009 to respond to a deteriorated economic and financialenvironment, have been exceeded," it says. At the same time, itconducted active asset management, investing €457 million in officein Ile-de-France last year, and making €751 million in asset sales- against a target of €500 million. It held average lease durationat over six years.

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The company said its main indicators are now stable. Net assetvalue rose 10% from June to €4.01 billion - 1.3% over 12 months -for a total group share portfolio of €9.3 billion. NAV per share,excluding transfer taxes and financial instruments, was stable at€79.2. Its stock was trading after the announcement around €75. FdRtotal assets fell last year to just under €14 billion from €17.4billion at end-2008.

AllanSaundersonis a managing editor of Property FinanceEurope and a contributor to GlobeSt.com.

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