ALTAREA (EPA:ALTA) - Q 1 2012 REVENUES AND BUSINESS PERFORMANCES
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03/05/2012 18:08
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Paris, 3 May 2012, 6 pm Press release
Q1 2012 Revenues and business performance
Solid performance for all business lines
Consolidated revenues up +19.0%(1) to EUR363.9 Million
Retail: First contribution from e-commerce to the growth of the multi-channel
property company
* Shopping centers:
- Growth of like-for-like(2) rental income: +2.6%,
- Tenant revenues up: +1.5%(3),
* E-commerce:
- Successful public bid for RueduCommerce,
- Marketplace ("Galerie Marchande") merchants' revenues grew by +36%.
Residential: Very good visibility on revenues
* +35% growth of revenues on completion basis,
* Strong financial visibility with EUR1.6 Billion backlog (excl. VAT),
* Slowdown in reservations at EUR210 Million, i.e. a decrease of -14%:
- Sales to private individuals up +7%,
- Lower sales to institutional investors.
Office: Market just turning the corner
* Two significant contracts closed, total EUR130 Million(4).
Data as of March 31, 2012 (unaudited)
In the words of Alain Taravella, Founding Chairman:
"The positive results for Q1 2012 confirm the strength of our business model
and validate the strategic options adapted and applied to each of our markets.
In Retail, growth is to be noted on our innovative and well performing assets.
The Group is preparing for the future by adapting our portfolio to changes in
consumer behavior and by incorporating e-commerce into the multi-channel model.
In Residential, sharp revenue growth illustrates the progression of our market
share over the last three years. These gains in market share, obtained notably
with new products and locations, afford us good visibility on the P&L for the
months to come. Lastly, in Office property, we have just inked several
attractive deals, in a market environment that remain difficult."
(1) Pro forma revenues including RueduCommerce in Q1 2011 (i.e. +57.8% over
revenues reported).
(2) Excluding launches and sales.
(3) Figure for 100%, on a tenants comparable basis ("commerces constants")
cumulated over the last 12 months.
(4) Altarea Cogedim share.
I. BUSINESS PERFORMANCE
1. RETAIL: First contribution from e-commerce to the growth of the
multi-channel property company
1.1. Shopping centers: On like-for-like basis, growth of rental incomes and
tenant's revenues
Tenant revenues
Tenants' revenues were up by +1.5%(5) in a depressed consumer market.
Changes in Revenue(5) 100% Group share
Retail Parks and Family Village(r) 2.1% 2.1%
Shopping centers 1.2% 0.5%
Total 1.5% 1.0%
CNCC Index -1.7% -1.7%
Rental income
The impact of disposals was overall offset by asset management, deliveries and
the first results of restructuring operations. Like-for-like, rents increased
by 2.6%.
(In EUR Millions)
Rental income 3/31/2011 40.8
Delivery effect +0.3 +0.7%
Net impact of disposals -1.8 -4.4%
Variation like-for-like +1.1 +2.6%
Rental income 3/31/2012 40.4 -1.0%
The Group is pursuing the strategy of asset concentration in dynamic geographic
areas(6) and best-performing formats (regional shopping centers and large
retail parks with the Family Village(r) concept).
1.2. E-Commerce: +33% Marketplace Growth in Q1 2012
Following the success of the public tender offer completed on February 21,
2012, Altarea Cogedim Group owns 96.5% of RueduCommerce, one of the leading
e-commerce sites in France (average 5.9 million UVs(7) per month, +3% over
Q1 2011). In line with our strategy, RueduCommerce is continuing to refocus
its model from direct distribution (mainly consumer electronics) towards the
general merchandise-centered Marketplace ("Galerie Marchande"), which generates
fees on the revenues of the featured merchants.
In EUR Millions 03/31/2012 03/31/2011 Change
Site visits
(in average UV's Millions per month) 5.9 5.7 +3%
Revenues 69.5 5.3 -8%
incl. direct distribution and other revenues 67.2 73.8 -9%
incl. marketplace fees 2.3 1.5 +60%
Revenues, marketplace merchants 26.6 19.6 +36%
The fee percentage increased significantly over one year, thanks to the change
in the product mix at the Marketplace (strong growth of textiles, house and
garden, etc.).
(5) Figure for 100%, on a tenants comparable basis ("commerces constants")
cumulated over the last 12 months.
(6) Paris Region, Eastern Mediterranean / Rhône-Alpes, South-West / Atlantic
Coast.
(7) Unique Visitors per month: Number of web users who visited the site at
least once over a one-month period. Data for the average monthly audience in
Q1, for all the sites of the RueduCommerce Group.
2. RESIDENTIAL: Very good visibility on revenues
Revenues
In EUR Millions 03/03/2012 03/31/2011 Change
Revenues on completion basis (excl. VAT) 222 165 +35%
The +35% increase in revenues on completion basis (EUR222 Million excluding
VAT) is the result of the gain in market share achieved from 2008 to 2011, when
Cogedim's share jumped from 2.5% of national market reservations in value to
nearly 6%.
Net reservations
In EUR Millions 03/31/2012 03/31/2011 Change
Reservations, private individuals(8) 165 154 +7%
Reservations, institutional investors 45 91 -51%
Total reservations (incl. VAT) 210 246 -14%
Breakdown of reservations (in EUR Millions) 03/31/2012 03/31/2011
Greater Paris Area 121 57% 158 64%
Other Regions 89 43% 88 36%
High-end 95 45% 99 40%
Mid-range & Entry-level 103 49% 144 59%
Serviced Residences 12 6% 2 1%
Sales to consumers were up by 7% over Q1 2011, to reach EUR165 Million.
Real-estate again showed its status as a "safe haven," in an environment where
all the alternative savings asset classes (life insurance, equities, savings
accounts, etc.) are seen as more volatile or less profitable. Cogedim is also
showing good performance in serviced residences, a new investment product
recently developed by the Group which meets with strong demand in the market
and has maintained its volume of reservations in spite of a slow-down in the
market.
Compared to the excellent results of Q1 2011, sales to institutional investors
stepped back to 45 MEUR in early 2012, leading to a 14% drop in total sales.
Pipeline
In EUR Millions incl. VAT 03/31/2012 03/31/2011 Change
Property for sale 596 633 -6%
Future offer (land portfolio) 2,891 2,988 -3%
> Pipeline(9) 3,487 3,621 -4%
Number of months of revenue 35 months 36 months -3%
In a market racked by a high degree of uncertainty, Cogedim is carefully
managing risks and commitments. Nevertheless, Cogedim has built up a pipeline
sufficient to adequately respond to market changes, both in types of product
and in volume.
(8) Owner-occupiers and private investors.
(9) The pipeline is composed of revenues (incl. VAT) of the properties for sale
plus the land portfolio which represents all the land under option (generally
at purchaser's hand).
Backlog
In EUR Millions excl. VAT and duty 03/31/2012 12/31/2011
Backlog(10) 1,582 1,620
Number of months of revenue 22 months 24 months
With a backlog of EUR1.582 Billion, Cogedim is given strong visibility on
future revenues and is confirming a significant growth of revenues for 2012.
3. OFFICE: Market just turning the corner
In early 2012 Altarea Cogedim Office closed on 2 significant operations, for
revenues of approximately EUR130 Million(11):
- A CPI (Contrat de Promotion Immobilière or Property Development Contract)
to renovate an exceptional office complex with 237,000 ft2 (22,000 m2)
located in the 3rd arrondissement of Paris, for GE Capital Real Estate,
- In early April, a group of 5 CPI's for the Euromed Center project in
Marseille, a 678,000-ft2 (63,000-m2) GFA business and services development
with 4 HQE(r) and BBC(r) office buildings (549,000 ft2 or 51,000 m2), a
4-star hotel with 210 rooms and suites, 57,000 ft2 (2,500 m2) of retail
space and a 846-space parking area. This project will be developed in
partnership with Crédit Agricole Immobilier for Predica and Foncière des
Régions.
In EUR Millions 03/31/2012 03/31/2011 Change
Transactions (incl. VAT) 130(11) 0 n/a
Backlog (before VAT)(12) 141 178 -21%
Revenues by completion (before VAT) 26 20 +27%
As of today, Altarea Cogedim is not carrying any significant commitments in the
office asset class.
(10) The Residential backlog comprises revenues (excl. VAT) on notarized sales
remaining to be recognized on a percentage-of-completion basis plus sales
reservations remaining to be notarized.
(11)Altarea Cogedim share, including Euromed signed early April 2012.
(12) The Office backlog comprises of revenues (excl. VAT) on notarized sales
remaining to be recognized on a percentage-of-completion basis plus take-up not
subject to a notarized deed yet and fees owed by third parties on signed
contracts. The backlog at March 31, 2012 does not include the Euromed
operation, signed in April 2012.
II. FINANCIAL SITUATION
Net bank debt was EUR2.1345 Billion as of March 31, 2012 vs. EUR2.0811 Billion
at December 31, 2011. The increase is mainly due to the acquisition of
RueduCommerce, for which the tender bid was closed mid-February 2012.
The Group has pursued its capital turnover strategy, with three transactions
for a total of EUR126 Million (including EUR83 Million closed in April, whose
positive impact does not appear on net debt as of March 31, 2012).
Lastly, at Altarea Cogedim's General Meeting of Shareholders on May 25, 2012,
payment of a dividend of EUR9 per share (+12.5%) will be proposed, with an
option to receive payment in stock, in order to support the development of the
Group.
III. ALTAREA COGEDIM REVENUES FOR THE 1ST QUARTER, 2012
1. Pro forma RueduCommerce
In EUR Millions Q1 2012 Q1 2011 2012/2011
Rental income 40.4 40.8 -1.0%
Services 4.5 3.2 43.1%
Other 1.7 1.4 20.0%
Retail - "brick and mortar" 46.6 45.4 2.7%
Retail and other revenues 67.2 73.8 -9.0%
Marketplace Fees 2.3 1.5 60.4%
Retail - "online" 69.5 75.3 -7.6%
Revenues 221.6 164.4 34.8%
Services 0.2 0.4 n/a
Residential 221.8 164.8 34.6%
Revenues 25.5 19.2 33.0%
Services 0.5 1.3 n/a
Office 26.0 20.4 27.2%
Total Group Revenues 363.9 305.8 19.0%
2. Reported revenues
In EUR Millions Q1 2012 Q1 2011 2012/2011
Rental income 40.4 40.8 -1.0%
Services 4.5 3.2 43.1%
Other 1.7 1.4 20.0%
Retail - "brick and mortar" 46.6 45.4 2.7%
Retail and other revenues 67.2
Marketplace Fees 2.3
Retail - "online" 69.5 - -
Revenues 221.6 164.4 34.8%
Services 0.2 0.4 n/a
Residential 221.8 164.8 34.6%
Revenues 25.5 19.2 33.0%
Services 0.5 1.3 n/a
Office 26.0 20.4 27.2%
Total Group Revenues 363.9 230.6 57.8%
Next meeting:
General Meeting of Shareholders, Friday, May 25, 2012
About Altarea Cogedim - FR0000033219 - ALTA
Listed in compartment A of NYSE Euronext Paris (SRD Long Only), Altarea Cogedim
is a significant participant in the real-estate markets. As both a retail
property investor and a developer, it is the only group in the 3 main property
markets: retail, residential, office. For each it has the complete skill-set
required to design, develop, sell and manage bespoke real-estate products. By
acquiring French web merchant RueduCommerce on December 31, 2012, Altarea
Cogedim became the 1st multi-channel retail property company.
As of 31st March 2012, Altarea Cogedim owned investment assets comprised of
shopping centers worth 2.6 Million euros with a market capitalization of
1.2 Billion euros.
ALTAREA COGEDIM CONTACTS
Eric Dumas, Chief Financial Officer
edumas@altareacogedim.com, tel: + 33 1 44 95 51 42
Nathalie Bardin, Head of Communications
nbardin@altareacogedim, tel: +33 1 56 26 25 36
CITIGATE DEWE ROGERSON CONTACTS
Yoann Nguyen, Analyst and investor relations
yoann.nguyen@citigate.fr, tel: + 33 1 53 32 84 76
ServaneTasle, Press relations
servane.tasle@citigate.fr, tel: + 33 1 53 32 78 94
NOTICE
This press release does not constitute an offer to sell or solicitation of an
offer to purchase Altarea shares. If you wish to obtain more complete
information regarding Altarea, we invite you to refer to documents available on
our website, www. altarea-cogedim.com.
This release may con tain declarations in the nature of forecasts. While the
Company believes such declarations are based on reasonable assumptions at the
date of publication of this document, they are by nature subject to risks and
uncertainties which may lead to differences between real figures and those
indicated or inferred from such declarations.
Revenues and Business Performance Q1 2012 ALTAREA COGEDIM -Press Release