ALTAREA (EPA:ALTA) - 9M 2017 revenue : €1,314 million (+19,0%) Operational success stories across all business lines

Transparency directive : regulatory news

13/11/2017 17:45

Press release                            Paris, 13 November 2017, 5:45 p.m.

                       9M 2017 revenue: EUR1,314 million (+19.0%)

              Operational success stories across all business lines

Property Development (residential and offices)

* New orders: EUR2,409 million (incl. tax)(+27.3%)
  - Of which residential: EUR1,702 million (+23.7%) and 6,787 units (+16.8%)
  - Of which offices: EUR707 million (+36.8%)

* Operational success stories:

  - Large mixed-use projects: Delivery of the largest Grand Paris development
    scheme (100,000 m2 in Massy)
  - Residential: Cogedim awarded "Customer Service of the Year 2018"
  - Offices: Signature of Orange and Parfums Christian Dior headquarters leases
    (81,000 m2 total)

Retail

* Rental income: +4.5% to EUR144.1 million (+2.8% on a like-for-like basis)
* Disposals for a combined amount exceeding EUR130 million(1)
* Bid won: 45,000 m2 iconic project near the Swiss border (Ferney-Voltaire)

CSR performance

* GRESB: Altarea Cogedim no. 1 out of 194 listed real estate companies assessed
  worldwide

Financial indicators

* Consolidated revenue: EUR1,314 million (+19.0%)
* Net debt: EUR2,577 million (vs. EUR2,578 million at 30 June 2017)

                                        Unaudited figures at 30 September 2017

"After another quarter of robust growth and substantial success across all the
business lines, Altarea Cogedim is strengthening its leadership position in
urban property development. We're seizing on new growth opportunities made
possible by our unique model that brings together expertise in development on
all asset lines and an optimised allocation of our balance sheet between
investment and property development.

We remain vigilant and keep a watchful eye on any change in economic or tax
environment and we reiterate our financial targets, including a 2017 recurring
net result (FFO) greater or equal to EUR16.00 per share."

Alain Taravella, Chairman and Founder of Altarea Cogedim

(1) As Group share.

I. PROPERTY DEVELOPMENT

Property Development New Orders         30/09/2017    30/09/2016     Change

Residential                              EUR1,702m     EUR1,376m     +23.7%
Nbr of units                           6,787 units   5,813 units     +16.8%
Offices                                    EUR707m       EUR517m     +36.8%
TOTAL (incl. tax)                        EUR2,409m     EUR1,893m     +27.3%

Development Revenue                     30/09/2017    30/09/2016     Change

Residential                              EUR953.8m     EUR739.3m     +29.0%
Offices                                  EUR200.6m     EUR203.9m      -1.7%
TOTAL (excl. tax)                      EUR1,154.4m     EUR943.2m     +22.4%

Property Development Backlog            30/09/2017    31/12/2016     Change

Residential                              EUR2,981m     EUR2,640m     +12.9%
Offices                                    EUR644m       EUR630m      +2.2%
TOTAL (excl. tax)                        EUR3,625m     EUR3,270m     +10.9%

Large mixed-use projects

Opening of Massy Place du Grand Ouest

On 18 October, Altarea Cogedim opened Place du Grand Ouest scheme in Massy.
This 100,000 m2 mixed- use development, which is the largest development
project in the Paris Region, includes 850 residential units, a Cogedim Club
Residence (assisted housing for active seniors), a convention centre and retail
units in close proximity to the regional and highspeed railway stations in the
large-scale, mixed-use district of Massy-Atlantis. This above EUR290 million(2)
project illustrate the Group's ability to deliver complex development schemes
and consolidates its position as major urban designer of Grand Paris and
leading partner of French gateway cities.

Residential

The market is stabilising at historically high levels driven by the same
factors: low interest rates, and the attractiveness for French consumers of
real estate as both a rental investment and their main residence.

In this context, the 2018 renewal of the "Loi Pinel" for another four years and
its strengthening in high- demand areas are welcome news for the Group as more
than 99% of its pipeline (offering and future offering) is located in eligible
areas(3).

New orders (incl. tax)          30/09/2017           30/09/2016        Change

Institutional investors        EUR413m    24%       EUR291m    21%     +41.9%
Individuals                  EUR1,289m    76%     EUR1,085m    79%     +18.8%
TOTAL in value               EUR1,702m            EUR1,376m            +23.7%
Institutional investors    1,981 units    29%   1,733 units    30%     +14.3%
Individuals                4,806 units    71%   4,080 units    70%     +17.8%
TOTAL in units             6,787 units          5,813 units            +16.8%

Preferred bidder of two "Inventons la Métrople du Grand Paris" projects

Altarea Cogedim won two major projects as part of the "Inventons la Métrople
du Grand Paris" (Inventing the Grand Paris Metropolis) call for projects. The
urban projects "L'Hospitalité" at Kremlin-Bicêtre and "Campus Habité" at
Cachan won the jury over with their ability to provide mixed-use solutions
bringing together residential, retail and services.

(2) New orders included tax, all products combined.
(3) The "high-demand areas" correspond to areas A bis, A and B1. Only 268 units
(i.e., less than 1% of the Residential pipeline) are located in area B2, and
half of those are in French Genevois, which has strong appeal.

Cogedim awarded Customer Service of the Year 2018

The "Elu service client de l'année"(4) label (Customer Service of the Year
label) annually awards companies, in every economic sector, that have the best
customer relationships and provides the highest level of customer service. For
the first time this year, the label was opened to property development and
Cogedim was awarded in recognition of its actions taken for customer
satisfaction.

Offices

New orders (incl. tax)             30/09/2017   30/09/2016      Change
Offices                               EUR707m      EUR517m      +36.8%

Signature of leases for the new headquarters of Orange and of Parfums Christian
Dior

During this quarter, Altarea Cogedim signed two leases for the future global
headquarters of Orange and Parfums Christian Dior. Orange will move into the
Bridge building (56,000 m2) in Issy-les-Moulineaux due for delivery in summer
2020. Parfums Christian Dior, a subsidiary of the LVMH Group, will occupy the
Kosmo building (25,000 m2) in Neuilly-sur-Seine, scheduled for delivery in
early 2019.

By signing the leases with these two prime occupants, the Group solidifies its
position as a leader in office property development.

II. RETAIL

Portfolio assets: growth of rental income: +4.5% to EUR144.1 million

During this quarter, Altarea Cogedim posted a +4.5% increase in its rental
income (+EUR6.2 million). On a like- for-like basis, this increase was +2.8%
and resulted particularly from a reduction in lease inducement and rent-free
period, and the growing contribution of Specialty Leasing.

Retailer sales jumped +2.4%, versus stable figures for the CNCC(5) Index.

Development: win of a new iconic project near the Swiss border
(Ferney-Voltaire)

Altarea was chosen to develop a new, 45,000 m2 GLA retail scheme that offers a
innovative cultural and leisure experience featuring the first location in a
shopping centre of the Centre Pompidou (1,800 m2) and Universcience (2,500 m2).
This project, which is located at the gateway to Geneva in Ferney-Voltaire,
France, in an exceptionally affluent customer catchment area, proves the
Group's ability for designing ambitious, innovative retail projects in
partnership with local authorities.

Disposals: combined amount exceeding EUR130 million(6)

During the quarter, the Group sold Immochan its share in the Promenade de
Flandre retail park located in Roncq, near the Belgian border. This project,
which was developed jointly with Immochan, was leased by Altarea Cogedim's
teams and sold by the Group before it was opened on 18 October 2017.

(4) The "Elu service client de l'année" (Customer Service of the Year) award,
which was created in 2007 by Viséo Customer Insight, uses mystery shoppers to
annually test the customer service quality of French companies in 42 different
economic sectors. It is the benchmark ranking for customer relationships in
France.
(5) CNCC index at the end of September.
(6) As Group share.

In addition, in late July Altarea Cogedim sold the L'Aubette real estate
complex to Deka Immobilien GmbH. This asset, which consists of 5,700 m2 of
retail and 2,800 m2 of tourism residences, stands in Strasbourg's main retail
area, near Place Kleber.

III. CSR PERFORMANCE

GRESB: Altarea Cogedim no. 1 out of 194 listed real estate companies assessed
worldwide

GRESB (Global Real Estate Sustainability Benchmark), a leading international
ranking, annually assesses the CSR performance of real estate companies around
the world. In 2017 it assessed 823 companies and funds, of which 194 were
listed companies.

In its fourth year of participating, Altarea Cogedim reinforced its status as a
leader in the CSR area and for the first time took the top spot in the world
among listed companies (number 1 of companies in Europe and number 1 of
"retail" companies worldwide). With a score of 96/100, the Group ranked second
in the world, all categories combined (listed and unlisted companies).

IV. FINANCE

Consolidated revenue at 30 September 2017 (9 months): EUR1,313.6 million
(+19.0%)

                                                              TOTAL
In EUR million               Q1 2017   Q2 2017   Q3 2017    9M 2017

Rental income                   46.6      47.9      49.6      144.1
Services                         4.4       4.2       4.6       13.2
Property development
revenue                          2.0         -         -        2.0
Retail                          52.9      52.2      54.1      159.2

Revenue                        280.0     360.1     312.6      952.8
Services                         0.5       0.1       0.4        1.0
Residential                    280.5     360.3     313.0      953.8

Revenue                         69.9      92.2      27.3      189.4
Services                         1.7       2.6       6.8       11.1
Offices                         71,6      94.8      34.1      200.6

Consolidated revenue           405,1     507.2     401.3    1,313.6

                                                                         9M
                                                              TOTAL    2017/9M
In EUR million               Q1 2016   Q2 2016   Q3 2016    9M 2016     2016

                                43.4      49.4      45.1      137.8     +4.5%
                                 5.4       7.9       4.4       17.7    -25.6%
                                 3.8       1.7       0.0        5.5    -64.3%
                                52.6      59.0      49.5      161.1        -
                                                                         1.1%

                               234.6     271.1     233.6      739.2    +28.9%
                                 0.1       0.2      (0.3)       0.1        x
                                                                        10.0
                               234.7     271.3     233.3      739.3
                                                                       +29.0%

                                32.9      70.6      96.4      199.8     -5.2%
                                 0.9       1.7       1.5        4.1        x
                                                                         2.7
                                33.9      72.2      97.8      203.9        -
                                                                         1.7%

                               321.2     402.5     380.6    1,104.3    +19.0%

Financial position

Net debt (bank and bond) was stable at EUR2,577 million at 30 September 2017
compared to EUR2,578 million at 30 June 2017.

2017 outlook confirmed
- Recurring net result (FFO):  ≥ EUR16.0 /share (+18%)
- Dividend:  ≥ EUR11.5 /share
- LTV target: between 40% and 45%

ABOUT ALTAREA COGEDIM - FR0000033219 - ALTA
Altarea Cogedim is the leading owner developer in French Gateway cities. 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, commercialise and manage made-to-measure
property products. With operations in France, Spain and Italy, Altarea Cogedim
managed a shopping centre portfolio worth EUR4.6 billion at 30 June 2017.
Listed on compartment A of Euronext Paris, Altarea had a market capitalisation
of EUR3.2 billion at 30 September 2017.

ALTAREA COGEDIM CONTACTS

Eric Dumas, Chief Financial Officer
edumas@altareacogedim.com, tel: + 33 1 44 95 51 42

Catherine Leroy, Analyst and Investor Relations
cleroy@altareacogedim.com, Tel: +33 1 56 26 24 87

COMMUNICATION CONTACT

Agnès Villeret, Press Relations ? KOMODO
agnes.villeret@agence-komodo.com, tel.: + 33 6 83 28 04 15

GLOSSARY
Offices backlog: consists of revenue (excl. tax) from notarised sales not yet
recognised according to percentage of completion, new orders pending notarised
deeds (signed property development contracts (PDCs)) and fees to be received
from third parties on signed contracts.

Residential backlog: consists of revenues excluding tax from notarised sales to
be recognised according to percentage of completion and individual and block
reservations to be notarised.

Retailer sales: change in retailer revenue with the same locations over the
first nine months of the year, in France. Excluding assets being redeveloped.

Residential revenue (excl. tax): revenues recognised according to the
percentage-of-completion method in accordance with IAS 18. The percentage of
completion is calculated according to the stage of construction excluding
land.

CNCC (Conseil National des Centres Commerciaux): The French federation of
shopping centres. French professional organisation of all shopping centre
industry professionals, which publishes an index of revenue earned in the
shopping centres of the member companies.

FFO (Funds From Operations, or recurring net result): net result excluding
changes in value, calculated costs, transaction fees and changes in deferred
tax.

GRESB (Global Real Estate Sustainability Benchmark): reference ranking which
evaluates the annual CSR performance of property companies worldwide (823
companies and funds assessed in 2017).

Loan-to-Value (LTV): debt ratio. Consolidated net debt / Consolidated market
value of Group assets.

Residential properties for sale: units available for sale (in value or number
count).

Property development new orders (residential and offices): value (incl. tax) of
residential reservations and office orders (signed property development and
off-plan contracts and delegated project management fees capitalised and
AltaFund arbitrage items) signed over a period.

Residential pipeline: number of units of property for sale and in the
portfolio.

Future offering (residential): land portfolio consisting of controlled projects
(through preliminary sales agreements, almost exclusively in unilateral form)
which have not yet begun. (incl. taxes value when expressed in euros).

Residential reservations: reservations net of cancellations, with Histoire &
Patrimoine reservations accounted for in proportion to
the Group share of ownership (56%). (EUR incl. tax when expressed as a
value).

Rental income on a like-for-like basis: rental income excluding assets
delivered, purchased or sold during the period or the previous period, and
excluding asset being redeveloped.

CSR: Corporate Social Responsibility. All actions undertaken by companies, on a
voluntary basis, to take into account the social and environmental concerns
related to their activities and their interactions with other actors.

DISCLAIMER

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 9 - month revenue and business activity
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ALTAREA (EPA:ALTA) - 9M 2017 revenue : €1,314 million (+19,0%) Operational success stories across all business lines

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