(News Bulletin 247) – Orpea shares fell on the Paris Stock Exchange on Friday after the operator of retirement homes reported this morning a loss of four billion euros for its 2022 financial year. .

The group explains that its annual accounts take into account a “significant” drop in the value of the assets appearing on its balance sheet, a reduction having led to impairments of 3.8 billion euros.

The group, which had to launch a vast financial restructuring plan following accusations of mistreatment of its residents, explains that the impairments result from value tests carried out on each of its establishments as part of a strategic reflection which had been initiated last year.

As of December 31, 2022, its real estate portfolio was valued at 6.5 billion euros, compared to 8.4 billion euros at the end of 2021.

Its net financial debt increased by 800 million euros last year to 8.8 billion euros, an amount that the group intends to reduce to nearly 3.7 billion by the end of 2025 thanks to disposals.

Regarding the progress of its financial restructuring, the company – which has been in accelerated safeguard procedure since March – recalls that its capital increase projects will lead to massive dilution for existing shareholders.

These would hold, in the absence of reinvestment, less than 0.5% of the capital, or even less than 0.05% in the context of a forced application of the plan, a prospect which raised the ire of its shareholders minority.

Despite these numerous difficulties, Orpea recorded 10.2% growth in its turnover in the first quarter of 2023, to 1.23 billion euros, including organic growth of 9.5%.

Its average occupancy rate even increased by 1.6 percentage points over the first three months of the year, to now reach 83%.

This information allowed the title to limit its decline to less than 2% around 10:00 a.m., after having fallen by almost 7% in the first exchanges.

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