ALTAREA (EPA:ALTA) - FIRST QUARTER 2011 REVENUES ALTAREA COGEDIM
Transparency directive : regulatory news
11/05/2011 17:56
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Paris, 11 May 2011, 5.45pm
Q1 2011 Revenues and business performance
Firm business trends in line with forecasts
Consolidated revenues up 14%
Retail property
· Strong tenant revenues (up 2.3%), especially in large shopping centres and
retail parks
· Rental income stable at EUR40.8 million, with deliveries over the year
offsetting the decline related to asset disposals and refurbishments
launched in 2010
Residential property
· Net reservations stable at EUR246 million
· Drop in individual buy-to-let investors offset by owner-occupiers and
block sales
· Strong growth in percentage-of-completion revenues to EUR165 million (up
34%), as well as in all financial indicators
Office property
· Delivery of the "First" high-rise building (87,000 m2), France's largest
HQE(r) [High Environmental Quality] construction project
· First closing of Altafund, an office property investment vehicle with
EUR350 million in capital, with a view to raising over EUR500 million
Unaudited figures at 31 March 2011
I. BUSINESS REVIEW
1. RETAIL PROPERTY
Tenant revenues(1)
· Retail parks +3.4%
· Shopping centres +1.7%
· Overall +2.3%
The retail parks held in the portfolio recorded another very strong revenues
increase during the quarter, which demonstrates the relevance of their "mass
market" positioning in an environment characterised by highly price sensitive
end consumers.
Concerning the shopping centres, the largest assets posted a particularly
healthy performance. Cap 3000 was among the top performers, and its commercial
potential has proven to be greater than forecast when it was acquired.
Rental income
The combined effect of asset disposals and refurbishments launched in 2010 was
offset during the quarter by the deliveries made during 2010 (Okabé, Le Due
Torri, Limoges Family Village) and the acquisition of Cap 3000 in June 2010.
Rental income was stable at EUR40.8 million (up 0.5%). The like-for-like
growth was almost zero.
2. RESIDENTIAL PROPERTY
Trend in reservations
Net reservations remained stable at EUR246 million including VAT compared with
the first quarter of 2010. This overall trend is mainly due to different
factors:
- Momentum in the Paris region (Ile de France), which accounted for 64% of
sales (vs. 55% in the first quarter of 2010)
- Growth in the number of owner-occupiers, who accounted for 69% of sales
(vs. 42% in the first quarter of 2010) and a corresponding decline in
buy-to-let investors
- Recovery in block sales, which accounted for 37% of sales (vs. 23% in the
first quarter of 2010)
The introduction of the highly successful PTZ+ (first-time buyer) subsidies
partly accounted for the structure of sales during the quarter. This said, the
level of reservations remains highly dependent on the pace of marketing
launches, especially in the Paris region (Ile de France) where demand remains
strong. Outside the Paris region, certain markets slightly slowed down.
Across the country, buyers' property purchasing power seems to have reached a
plateau with the recent rise in mortgage rates, even though these continue to
languish at near-record low levels.
The backlog of new residential properties continued to rise, reaching close to
EUR1.4 billion excluding VAT or 28 months at 31 March 2011.
The residential pipeline grew by 12% compared with year-end 2010, representing
around 2 years of activity.
(1) Tenants' like-for-like revenues excluding the impact of extensions
Financial indicators
(EUR million) Q1 2011 Q1 2010 % change
Net reservations (incl. VAT) 246 244 +0.8%
Average price of sold units EUR 284,000 EUR225,000 +26.2%
Notarised sales (incl. VAT) 253 206 +22.8%
Percentage-of-completion revenues (excl. VAT) 165 123 +34.1%
Backlog (1)(excl. VAT) 1,431 1,395 +2.6%
(EUR million) 31 Mar. 2011 31 Dec. 2010 % change
Properties for sale 382 403 -5.2%
Future offer (land portfolio) 2,425 2,095 +15.8%
Residential property pipeline(2) 2,807 2,498 +12.4%
3. OFFICE PROPERTY
During February 2011, Altarea Cogedim delivered the 87,000 m2 "First"
high-rise building, the first refurbishment operation on this scale to have
received high environmental quality (HQE(r)) certification [" NF Bâtiments
tertiaires - démarche HQE(r)"] and reached the Very High Energy Efficiency
(THPE) level. For the design and construction of the "First" high-rise
building, Altarea Cogedim also won the 2009 Grand Prix National de
l'Ingénierie, as well as the "Best Refurbished Office Building" Award at the
2011 MIPIM.
This delivery was the highlight of the first quarter of 2011 and accounted for
the very strong increase in deliveries by comparison with the first quarter of
2010 (nine-fold rise).
Altarea Cogedim Enterprise completed the first closing of Altafund, an office
property investment vehicle with EUR350 million in capital. The funds were
raised from top-tier French and international institutional partners. The
closing marks the beginning of a six-month period for the Group to find new
partners with a view to raising over EUR500 million. The investment vehicle
will acquire land or existing office properties for restructuring and apply
its expertise to create high-quality "core" assets with high environmental
quality. These new properties will then be earmarked for sale in the medium
term.
(EUR million) Q1 2011 Q1 2010
Take-up (incl. VAT) 0 117
Deliveries (net floor area, m2) 92,000 10,200
Backlog (excl. VAT)(3) 178 194
Percentage-of-completion revenues (excl. VAT) 19 23.3
(1) The backlog comprises revenues excluding VAT from notarised sales to be
recognised according to the percentage-of-completion method and reservations
to be notarised. Backlog at 31 December 2010 by comparison with the backlog at
31 March 2011.
(2) Potential revenues from projects for which an option is held on the land +
potential revenues including VAT on properties for sale
(3) Backlog at 31 December 2010 by comparison with the backlog at 31 March
2011
II - REVENUES AND FINANCIAL POSITION
Altarea Cogedim's consolidated revenues grew by 14% during the first quarter
of 2011 compared with the first quarter of 2010, mainly due to growth in
residential property development.
In EUR thousand Q1 2011 Q4 2010 Q3 2010 Q2 2010 Q1 2010
Rental income 40 779 42 828 40 700 40 283 40 585
Services to third parties 3 003 4 428 2 004 2 043 1 956
Shopping centres 43 782 47 257 42 705 42 325 42 540
Property development for third parties
Revenues 183 578 212 884 145 637 140 095 143 972
Services to third parties 1 611 4 430 3 089 4 443 2 343
Property development
for third parties 185 189 217 314 148 725 144 538 146 315
Residential property
Revenues 164 413 195 121 133 502 126 144 122 644
Services to third parties 353 778 556 1 946 379
Residential property 164 766 195 899 134 058 128 089 123 023
Commercial property
Revenues 19 165 17 763 12 135 13 952 21 328
Services to third parties 1 257 3 652 2 532 2 497 1 964
Commercial property 20 423 21 415 14 667 16 449 23 292
Recurring activities 228 971 264 571 191 430 186 863 188 856
Revenues 1 432 9 355 2 973 4 586 11 758
Services to third parties 147 873 256 1 108 901
Non-recurring activities 1 579 10 228 3 228 5 694 12 659
Total revenues 230 550 274 799 194 658 192 557 201 515
Financial position
Net bank debt stood at EUR2,125.3 million at 31 March 2011 compared with
EUR2,054.5 million at 31 December 2010. This EUR70.8 million increase was
driven primarily by growth in residential property.
III - OUTLOOK
"The first quarter of 2011 confirmed the outlook of double-digit growth
(assuming economic conditions remain the same) in our earnings, with
residential property development providing the driving force this year. The
initial benefits of the strategy repositioning in larger shopping centres and
retail parks in the retail property segment are now showing up, with the full
effect anticipated over the next three to four years. What's more, the group
is well-equipped to seize any opportunities arising in the office property
segment", said Alain Taravella, Chairman and Founder of Altarea Cogedim.
2011 Investor relations calendar
Publication of interim 2011 results: Friday 29 July (after the market closes)
Annual General Meeting: Friday 17 June
About Altarea Cogedim - FR0000033219 - ALTA
Altarea Cogedim is a leading retail property investment and development group
active in all three main property markets: retail, office, and residential. It
has the skills and experience to effectively design, develop, sell, and manage
customised property assets in each of these markets. The Group's risk exposure
is aligned with its long-term vision, and it creates value by designing and
building attractive assets and by seizing profitable opportunities in the
property sector.
Altarea Cogedim operates in France and Italy and had a property portfolio
worth EUR2.6 billion at 31 December 2010. Altarea is listed in Compartment A
of NYSE Euronext Paris with a market capitalisation of EUR1.3 billion at
end-2010.
ALTAREA COGEDIM CONTACTS
Eric Dumas, Chief Financial Officer
dumas.e@altarea.com, +33 1 44 95 51 42
Nathalie Bardin, Group Communications Director
bardin.n@altarea.com, +33 1 56 26 25 36
CITIGATE DEWE ROGERSON CONTACTS
Agnès Villeret, Analyst and Investor Relations
agnes.villeret@citigate.fr, +33 1 53 32 78 95
Aliénor Miens, Press Relations
alienor.miens@citigate.fr, +33 1 53 32 84 77
NOTICE
This press release shall not constitute an offer to sell or the solicitation
of an offer to buy Altarea shares. For more information about Altarea, please
refer to the documents available on the Group's website,
www.altareacogedim.com. This press release may contain forward-looking
information. Although the Group feels that this information is based on
reasonable assumptions at the time this press release was issued, this
information is subject to inherent risks and uncertainties that may cause
actual results to differ materially from those stated in or implied by this
forward-looking information.
Q1 2011 revenues and business performance ALTAREA COGEDIM - Press release
11/05/2011