ALTAREA (EPA:ALTA) - 9-month 2019 revenue up 21% - Strong momentum in each of the business lines

Transparency directive : regulatory news

07/11/2019 17:41

Press release                        Paris, 7 November 2019, 5:45 pm

                         9-month 2019 revenue up 21%
               Strong momentum in each of the business lines

Residential: robust performance and increased visibility

* New orders(1): EUR2,134 million (+12%) i.e. 7,784 units (+5%)
* Backlog: EUR3,580 million (+13%)
* Cogedim voted "Customer Service of the Year" for the third consecutive year

Business property: sustained activity in Paris and regional cities

* New orders (Group share): EUR388 million (+11%)
* Finalisation ofagreementswith CDCand CNP Assurances for Issy-Coeur de Ville
   and Paris-Montparnasse

Retail: growth in rental income

* Rental income: EUR152.1 million (+9% overall and +2.9% on a like-for-like
   basis in France)
* Opening of the new Cap3000 in Nice

CSR: extra-financial performance once again greeted in 2019

* Confirmation of "Green Star 5*" status for GRESB and "Prime" status for
   ISS-Oekom
* 3-point improvement in the Gaia Index

Consolidated financial indicators

* 9-month revenue: EUR1,900 million (+21%)
* Net financial debt(2): EUR2,677 million (+EUR215 million vs 30/06/2019)
* Successful EUR500 million BBB bond issue maturing in 2028

Unaudited figures at 30 September 2019

(1) On a like-for-like basis (excluding Severini and Woodeum), new orders up
+12% in value to EUR2,089 million and +2% in volume (7,608 units).
(2) Net financial bond and bank debt.

I. BUSINESS ACTIVITY AND EXTRA FINANCIAL PERFORMANCE

Residential

New orders(3): EUR2,134 million (+12%) i.e. 7,784 units (+5%)

Reservations incl. tax                30/09/2019        30/09/2018       Change
Individuals - Residential buyers  EUR737 million  35%  EUR677 million 36% +9%
Individuals - Investment          EUR811 million  38%  EUR706 million 37% +15%
Block sales                       EUR586 million  27%  EUR518 million 27% +13%

TOTAL in value                      EUR2,134 million     EUR1,901 million +12%
Individuals - Residential buyers     2,124 units  27%   2,131 units 33%     =
Individuals - Investment             3,152 units  41%   2,838 units 29%   +11%
Block sales                          2,509 units  32%   2,454 units 38%    +2%
TOTAL in units                       7,784 units        7,423 units        +5%
Average price per unit              EUR274 thousand      EUR256 thousand   +7%

Revenue and backlog
                                     30/09/2019        30/09/2018
Change
Revenue                             EUR1,365 million     EUR1,168 million +17%
                                     30/09/2019        31/12/2018
Change
Backlog                             EUR3,580 million     EUR3,169 million +13%

24 months of revenue

Momentum has been sustained with visibility clear in the Residential segment
since the beginning of the year. The Group continues to gain market share, with
new orders up 12% in value and 5% in volume. All brands are growing, confirming
the suitability of the Group's offer for all categories of customers, and the
pertinence of its geographical positioning.

The trend in the average price per unit year on year (+7%) is attributable
chiefly to very good marketing campaigns for large Grand Paris mixed-use
projects, especially Issy-Coeur de Ville.

Cogedim voted "Customer Service of the Year 2020" for the third consecutive
year

Cogedim, France's second-largest property developer, has been awarded the
"Customer Service of the Year 2020" trophy in the "Property Development"
category for the third consecutive year. The award promotes French companies
that place the quality of the customer relationship at the heart of their
concerns.

Business property

Finalisation of agreements between Altarea Cogedim, CDC and CNP Assurances(4)

In October, Altarea Cogedim Entreprise and CDC Investissement Immobilier (on
behalf of CDC) signed the off-plan sale contract with CNP Assurances for the
three office buildings of the Issy-Coeur de Ville eco-district and the
acquisition of CNP Assurances' current headquarters, located above the
Paris-Montparnasse railway station, for redevelopment.

(3) On a like-for-like basis (excluding Severini and Woodeum), new orders up
+12% in value to EUR2,089 million and +2% in volume (7,608 units).
(4) See press releases issued on 28 March 2019 and 8 October 2019, available on
the altareacogedim.com website, Press section.

Strong operating activity in Paris and regional cities

                                  30/09/2019   30/09/2018    Change
New orders (incl. tax)           EUR388 million  EUR351 million   +11%
Revenue                          EUR366 million  EUR248 million   +48%

                                  30/09/2019   31/12/2018    Change
Backlog                          EUR769 million  EUR862 million   -11%

Since the beginning of the year, the Group has recorded EUR388 million incl.
VAT in new orders (Group share), an increase of 11% year on year, including:

- the off-plan sale to CNP Assurances of the three office buildings of the
  Issy-Coeur de Ville project (in partnership with CDC);
- two property development contracts for EM Lyon Business School in
  Lyon-Gerland (29,000 m²) and a logistics platform for Lidl in
  Grands-Champs-des-Fontaines in Nantes (47,000 m²);
- the off-plan sale to Newton Offices of one of the four buildings of the Les
  Carrés du Golf programme in Aix-en-Provence. This 11,000 m² project, due to
  be delivered in 2020, is now fully leased following the signing of an
  off-plan lease agreement with EDF in mid-October.

Momentum is powerful in the Business property segment, both in Paris and in
regional cities. Since 30 September 2019, the Group has signed several major
transactions that will increase the year-end backlog, including a protocol with
a leading economic player to create a 700-room hotel complex in the Grand Paris
area.

Retail

Growth in rental income: +9.0% (+2.9% like-for-like in France)

Over the first 9 months of the year, rental income was up sharply at EUR152.1
million (+9.0%). The impact of deliveries and acquisitions (first tranche of
retail space at the Paris-Montparnasse railway station, extension of Cap3000
and acquisition of a portfolio of railway stations in Italy) largely offset
disposals made in 2018 and since the beginning of 2019(5). On a like-for-like
basis, rental income was up 2.9% in France.

Portfolio performance indicators(6) are strong. Tenants' revenue in France was
up 3.6% and footfall in shopping centres was up 2.0%, compared with +0.1% and
+0.1% respectively for the CNCC benchmark.

Strong commercial performance

Over the first nine months of the year, the Group signed 214 leases for a total
of EUR23.1 million in rents, including EUR10.0 million for new space (77
leases).

In terms of pipeline, the Group recently obtained the definitive commercial
approvals for the Ferney Voltaire shopping and leisure centre project in the
French Geneva area (46,000 m²) and for the future retail spaces of the
Paris-Austerlitz railway station (25,000 m²).

(5) The Group sold three assets (Okabe in the Kremlin-Bicêtre, the Galerie de
l'Hôtel de Ville in Châlons-en-Champagne and 14th Avenue in Herblay) for a
total amount of EUR122 million (including transfer duties) overall higher than
the appraisal values at the end of 2018 (+1.9%).
(6 Data for the France portfolio on a like-for-like basis - rolling 12-month
data as at end-September 2019 for footfall and tenants' revenue (excl. VAT) for
the Group's portfolio and CNCC (National Centre of Shopping Centres).

Opening of the new Cap3000: the Europe's most striking waterfront shopping
destination

On the occasion of Cap3000's 50th anniversary, Altarea Cogedim unveiled
recently its seafront extension, with more than 70 new brands and a unique
restaurant offer with panoramic views over the Mediterranean.

Fully rented, these new spaces are home to emblematic Cap3000 names, such as
Galeries Lafayette and Apple Store, much awaited brands such as Victoria's
Secret, Parfums Christian Dior, Urban Outfitters, Five- Guys, IT Villaggio, and
major brands such as Monoprix, Darty and Maisons du Monde. This extension also
offers a varied leisure and services offer, including a 360° immersive MK2+
space that currently features the "OCEANS" experience in partnership with the
Oceanographic Museum of Monaco, the 1st METROPOLITAN premium Fitness&Spa space
in France, as well as the CAPSULE concept store dedicated to e-commerce
players.

In the second half of 2020, the last milestone of the metamorphosis will be the
delivery of Corso, a premium mall of around thirty shops, mostly leased,
including Mauboussin, Mont-Blanc, a 500 m² multi-brand luxury watch area, as
well as a gourmet high-end offer. This last step will confirm the international
opening of Cap3000, both in terms of brands and customers. As a reminder,
Cap3000 is located next to Nice airport (2nd international airport in France)
and benefits from the unique tourist appeal of the Côte d'Azur.

Large mixed-use projects: 11 new "city centre" projects

In the very booming market segment of large mixed projects, Altarea Cogedim
manages 11 major mixed-use projects representing nearly 920,000 m² and more
than 9,000 residential lots.

Issy-Coeur de Ville: an acclaimed urban renewal project

The Group has started work on the largest mixed-use development in the Grand
Paris metropolitan area. This 100,000 m² eco-district is already a commercial
success: all office, all retail space and nearly 75% of the 600 housing units
offered (free, social rental and senior residence) have been sold 30 months
before the programme's delivery.

Extra-financial performance: an acknowledged CSR approach

Once again, several extra-financial ratings have applauded the long-term "Tous
engagés" (we are all involved) CSR approach driven with conviction by the
Group's teams and brands in response to the ongoing energy, ecological and
societal transitions:

- confirmation of the "Green Star 5*" status won in 2016 in the GRESB 2019
  (Global Real Estate Sustainability Benchmark), which attests to its CSR
  performance over time. Ranked fourth among listed retail companies in Europe,
  with a score of 90/100, the Group also obtained an A in Transparency, a
  recognition of the quality of its institutional publications, and the
  reliability and comprehensiveness of its CSR reporting;
- confirmation of the "Prime" status in the ISS-Oekom 2019 ranking, which
  rewards the quality of the CSR performance of the companies surveyed;
- present in the Gaia Index since 2017, the Group this year achieved a score of
  77/100 (+3 points compared with 2018), well above the average of the panel of
  230 companies surveyed (58/100) and that of companies with over EUR500
  million in revenue (69/100). On environmental aspects, the Group was awarded
  a rating of 100.

II. FINANCIAL OVERVIEW

Contribution of all business lines to 9-month consolidated revenue growth of
+21%

EUR millions       Q1 2019 Q2 2019 Q3 2019 TOTAL  Q1 2018 Q2 2018 Q3 2018 TOTAL
                                         9-mth                          9-mth
                                         2019                           2018
Rental income      49.1    52.9   50.2   152.1    46.5    47.1    45.8   139.4

Services            6.6     4.8    4.7    16.0     4.6     4.1     5.3    13.9

Property
development          -      -       -      -        -      3.1      -      3.1

Retail             55.7    57.6   54.8   168.2    51.0    54.3    51.1   156.4

Revenue
(% of completion) 433.0   460.9  463.3 1,357.2   339.5   458.3   368.6 1,166.4

Services            1.8     3.5    2.4     7.7     0.1     0.7     0.9     1.7

Residential       434.8   464.4  465.7 1,365.0   339.6   459.0   369.6 1,168.1

Revenue
(% of completion) 101.0   159.0   98.5   358.5    42.0   127.5    54.2   223.7

Services            1.0     5.7    1.3     8.0     2.0    20.3     2.2    24.5

Business property 102.0   164.7   99.8   366.5    44.0   147.8    56.3   248.1

Revenue           592.5   686.8  620.4 1,899.6   434.6   661.0   476.9 1,572.6

9-mth
2019 / 9-mth 2018

  +9%
+15%
   -
  +8%
+16%
X3.6
+17%
+60%
-67%
+40%
+21%

Consolidated 9-month revenue amounted to EUR1,900 million, up 21% year-on-year
(+18% excluding scope effects(7)), driven by Development (+22%) and a robust
performance by the Retail portfolio (+8%).

Financial structure: good management of liabilities in a context of growth

Net financial debt (bank and bonds) amounted to EUR2,677 million at 30
September 2019, up EUR215 million compared with 30 June 2019 (EUR2,479
million).

Successful EUR500 million rated bond issue maturing in 2028

On 25 September, S&P Global confirmed the "BBB, stable outlook" financial
rating for both Altarea and Altareit, the listed subsidiary for the Group's
development activities.

Following this confirmation, Altarea successfully placed, in October, a EUR500
million rated bond with an 8- year maturity, offering a coupon of 1.875%. The
proceeds from the issue will be used to refinance secured debt and for general
financing needs. The transaction fits in with the Group's broader
disintermediation policy; it reinforces the structure of its financing and
extends the maturity of its debt.

III. 2019/2020 OUTLOOK

For 2019, Altarea Cogedim is aiming for FFO ranging from EUR17.50 to EUR17.70
per share after taking into account the dilutive effect of the payment of the
2018 dividend in shares (issued in May 2019), and will propose a 2019 dividend
of EUR13.00 per share (subject to approval by the General Meeting called to
approve the 2019 annual financial statements).

For 2020, the Group confirms its trajectory and maintains its FFO target of
EUR300 million, taking into account the increase in taxes paid on non-SIIC
activities and changes in accounting standards (IFRS 15 & 16 and IAS 23).

Financial calendar 2020
2019 annual results:  Monday 2 March 2020 after trading
                      Presentation meeting at 8:30 am on 3 March 2020

(7) Histoire & Patrimoine and Severini have been fully consolidated since July
2018 and January 2019 respectively.

ABOUT ALTAREA COGEDIM - FR0000033219 - ALTA

Altarea Cogedim is the leading property developer in France. As both a
developer and an investor, the Group operates in the three main property
markets (Retail, Residential and Business property), leading major mixed-use
urban renewal projects in France. The Group has the required expertise in each
sector to design, develop, market and manage made-to-measure property products.
In Retail, Altarea Cogedim manages, at 30 June 2019 a portfolio worth EUR4.8
billion. Listed in Compartment A of Euronext Paris, Altarea has a market
capitalisation of EUR3.1 billion at 30 September 2019.

CONTACTS ALTAREA COGEDIM

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

CONTACT COMMUNICATION

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

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.

Press Release - 9-month 2019 Revenue and Business Activity - ALTAREA COGEDIM

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30/04/2024 17:45

ALTAREA (EPA:ALTA) - 9-month 2019 revenue up 21% - Strong momentum in each of the business lines

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