ALTAREA (EPA:ALTA) - Q3 2014 revenue and business activity of Altarea - Strong business momentum

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30/10/2014 18:08

Paris, October 30, 2014, 5:45pm                               Press release

                      Q3 2014 revenue and business activity

                            Strong business momentum

Retail: Solid performances

* Shopping centers: growth in tenant revenue (+1.5%) and like-for-like rental
  income in France (+2.1%)
* Cap 3000 shopping center: launch of the extension
* E-commerce: business affected by the competitive environment

Residential: Growth in entry-level and mid-range reservations

* Reservations: +18% in value terms to EUR708 million including tax, and +30% in
  volume terms
* Percentage-of-completion revenues (excluding Laennec): -3.5%(1)

Offices: Strong business activity

* Signature of several operations (off-plan, AltaFund) and a solid pipeline of
  projects
* Increasing contribution to future results confirmed

Consolidated indicators

* Consolidated revenue: EUR898.1 million (-16.1%).
* Net debt: EUR1.96 billion (+5.5% from June 30, 2014)

                                     Unaudited figures at September 30, 2014

(1) Including Laennec, percentage-of-completion revenues came to EUR535.5
    million (-14.5%).

I. BUSINESS

1. RETAIL - Solid performance

Shopping centers: Growth in tenant revenue and rental income in France (2)

In EUR million excluding tax         9/30/2014    9/30/2013    Change
Rental income                          128.1       130.6       -1.9%
Like-for-like change in France         +2.1%

Amidst sluggish consumer spending, tenant revenues grew 1.5%(3), outperforming
the CNCC index which remained stable (-0.2%) in late August. Like-for-like
(taking into account arbitrage and redevelopments), rental income in France rose
2.1% year-on-year.

During this quarter, Altarea also finalized the sale of two assets for a total
of EUR78.5 million.

Cap 3000: Authorization for extension work granted, work starting in Q4 2014

The Group was granted a definitive building permit for the 376,700-ft2
(35,000-sqm) extension of the Cap 3000 shopping center in Saint-Laurent-du-Var,
near Nice. Work will begin in Q4 2014. Once the extension has been delivered,
the center will be one of France's largest, with a GLA (gross leasable area) of
over 1.076 million ft2 (100,000 sqm).

E-commerce: Intense competitive pressure

Revenues declined 10.8% year-on-year as a result of increased competitive
pressure on the prices of high-tech products.
Galerie Marchande commissions grew 9.3%, enjoying a favorable mix effect.

2. RESIDENTIAL - Growth in reservations(4)in entry-level and mid-range programs:
+30% in volume (2,783 units) and +18% in value terms (EUR708 million including
tax)

Number of units                     9/30/2014          9/30/2013      Change
Sales to institutional investors       878               552           +59%
Sales to individuals                  1,905             1,595          +19%
Total sales                        2,783 units        2,147 units      +30%
In EUR millions including tax     EUR708 million    EUR598 million     +18%

In EUR millions excluding tax       9/30/2014         9/30/2013        Change
Percentage-of-completion revenues     535.5             529.8          626.2

Excluding Laennec                     548.8            -14.5%          -3.5%

In EUR millions excluding tax       9/30/2014         6/30/2014        Change
Backlog(5)                            1,380           20 months         1,417
Number of months of sales           20 months          -2.6%
Properties for sale                    753               860
Future offering                       4,116             3,839
=> Pipeline(6)                        4,869             4,699           +3.6%

Revenue growth in this quarter was mainly driven by entry-level and mid-range
programs (90% of sales in number of units). At the end of September, these types
of programs accounted for nearly 85% of the pipeline.

Percentage-of-completion revenues faced an unfavorable base effect related to
the significant contribution of the Paris Laennec operation in 2013. Excluding
Laennec, revenues were down slightly (-3.5%).

(2) Like-for-like.
(3) Figure at 100% on a "same-floor-area" basis in France, cumulative up to the
end of September 2014, excluding properties being redeveloped.
(4) Reservations net of cancellations, with Histoire & Patrimoine reservations
accounted for in proportion to the Group share of ownership.
(5) The residential backlog comprises revenues excluding VAT from notarized
sales to be recognized on a percentage-of-completion basis and reservations to
be notarized. Including Histoire & Patrimoine property for sale (Group share).
(6) The pipeline consists of VAT-inclusive revenues from properties for sale and
the land bank, which includes all plots on which contracts (generally
unilateral) have been signed. Including Histoire & Patrimoine property for sale
(Group share).

3. OFFICES - Strong business activity

During the quarter, the Group finalized the off-plan sale of the SAFRAN regional
head office in Toulouse-Blagnac to an institutional investor. It also signed a
purchase agreement via AltaFund with ALLIANZ VIE for a 382,100-ft2 (33,500-sqm)
building to be redeveloped in Paris (2nd arrondissement).

This Office business's development dynamic remains strong, with a pipeline of
managed projects at EUR1.6 billion at September 30, 2014, out of which EUR1,0
billion of projects in partnership consolidated in equity-method (AltaFund
notably). Thus is this business's development dynamic not to be analyzed based
on the turnover, but directly based on the contribution of these partnerships to
the Group result

II. OTHER HIGHLIGHTS OF THE QUARTER

The number-1 European property company(7) in sustainable development strategy
and performance

This year, the Group joined the GRESB's(8) illustrious Top 10 worldwide, and was
awarded a Green Star.

For its existing assets, the Group ranked 9th worldwide out of 637 market
players and 1st among European property companies. For new construction, the
company took 4th place out of 273 companies across the world.

These outstanding results are a testament to the strength of the sustainable
development strategy initiated in 2010, as well as to the Group's commitment to
environmental management of its assets and environmental aspirations for its new
projects.

III. FINANCIAL POSITION

Net financial debt (bank and bond debt) amounted to EUR1.96 billion at September
30, 2014, compared to EUR1.858 billion at June 30, 2014.

IV. ALTAREA COGEDIM Q3 AND 9-MONTH SALES

                                                   2014
In EUR millions                  Q1 2014   Q2 2014      2014          TOTAL
                                                                  9/30/2014

Rental income                      43.1       42.0       43.1         128.1

Services and other                  5.2        4.4        5.6          15.3

Brick-and-mortar retail            48.3       46.4       48.7         143.4

Distribution sales                 66.6       52.6       60.9         180.1

Galerie Marchande commissions       2.4        2.7        2.3           7.4

Online retail                      69.1       55.2       63.2         187.5

Revenue                           167.3      200.9      167.2         535.5

Excluding Laennec                 165.9      197.3      166.6         529.8

Services                            0.2      (0.2)        0.2           0.2

Residential                       167.5      200.7      167.4         535.6

Revenue                            14.2        3.2       10.8          28.2

Services                            0.6        1.7        1.1           3.3

Offices                            14.7        4.9       11.9          31.5

Revenue                           299.7      307.2      291.2         898.1

          2013 restated(9)
Q1 2013    Q2 2013  Q3 2013           TOTAL     9/30/2014
                                    9/30/2013        /
                                                 9/30/2013

   45.1       42.6      42.9           130.6         -1.9%
    5.0        6.0       4.6            15.6         -1.9%
   50.1       48.6      47.6           146.2         -1.9%
   72.0       61.8      69.7           203.5        -11.5%
    2.3        2.2       2.3             6.8         +9.3%
   74.3       64.0      72.0           210.3        -10.8%
  215.6      222.8     187.8           626.2        -14.5%
  185.6      191.1     172.1           548.8         -3.5%
    0.1        0.2     (0.1)             0.1           n/a
  215.7      222.9     187.7           626.3        -14.5%
   36.0       24.6      24.1            84.7        -66.7%
    0.7        1.2       0.7             2.6        +28.2%
   36.7       25.7      24.8            87.3        -63.9%
  376.8      361.2     332.1         1,070.2        -16.1%

(7) Results of the GRESB (Global Real Estate Sustainability Benchmark) rankings,
which assess the sustainable development strategies and performances of large
real estate funds and companies around the world.
(8) Global Real Estate Sustainability Benchmark, which assesses the sustainable
development strategies and performances of large real estate funds and
companies around the world.
(9) Restated retrospectively applying consolidation standards (IFRS 10 and 11)
as of January 1, 2013

ABOUT ALTAREA COGEDIM - FR0000033219 - ALTA
Altarea Cogedim is a leading property group. As both a commercial landowner and
developer, it operates in all three classes of property assets: retail,
residential and offices. It has the know-how in each sector required to design,
develop, commercialize and manage made-to-measure property products. With
operations in France, Spain and Italy, Altarea Cogedim manages a shopping center
portfolio of EUR4 billion and is a leader in e-commerce in France thanks to its
subsidiary Rue du Commerce. Listed in compartment A of NYSE Euronext Paris,
Altarea had a market capitalization of EUR1.7 billion at June 30, 2014.

ALTAREA COGEDIM CONTACTS               CITIGATEDEWEROGERSON CONTACTS

Eric Dumas, Chief Financial Officer    Agnès Villeret,
edumas@altareacogedim.com,             Analyst and Investor Relations
tel: + 33 1 44 95 51 42                agnes.villeret@citigate.fr,
                                       tel: + 33 1 53 32 78 95

Catherine Leroy,                       Nicolas Castex, Press Relations
Analyst and Investor Relations         Nicolas.castex@citigate.fr,
cleroy@altareacogedim.com,             tel: + 33 1 53 32 78 94
tel: +33 1 56 26 24 87

NOTICE

This press release does not constitute an offer to sell or solicitation of an
offer to purchase Altarea shares. For more detailed information concerning
Altarea, please refer to the documents available on our website:
www.altareacogedim.com.

This press release may contain 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.

ALTAREA COGEDIM Q3 2014 Revenues and Business Activity - Press release

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