2022 First Quarter Revenues

Business driven by the urban transformation market

Altarea, leader in urban transformation

• A comprehensive real estate offering serving the city and its users
• A €19.4 bn pipeline¹ (4.3 million m², 800 projects)

Major progress on large mixed-use projects

• “Cœur de ville” delivered in Bezons (65,000 m²), construction in Bobigny (100,000 m²) launched
• New projects in the Regions (Rouen, Tours, Annecy)

Residential supply rebuilt amid persistently strong demand

• Supply ramped up, particularly in new regional markets
• Priority given to Individuals with new orders up +28%
• Agile monitoring of activity in a context of inflation

Multiple value-creating transactions in Business Property

• Sale of the remainder of Orange’s head office; offices sold off-plan in the Regions
• Lease of the Group’s first urban logistics project in Paris’s 12^th arrondissement

Retail business gets back to normal

• Retailer sales back to 2019 levels
• Net rental income up, collection rate near normal, sharp decline in bad debts

Financial performance

• Consolidated revenue up to €661.2 m (+0.9% vs 2021 and +11.6% vs 2019)
• Net debt down to €1,518 m (-€128 m vs 31/12/2021 and -€798 m over 12 months)
• Strong liquidity at €3,035 m

Annual General Meeting on 24 May 2022

• Proposed dividend for 2021: €9.75/share (+2.6% vs 2020)
• Change in payment terms: dividend to be paid fully in cash on 31 May 2022

Outlook

• Given the non-completion of the acquisition of the Primonial group, Altarea modifies the guidance announced on 22 February 2022
• Considering the first quarter performance, Altarea expects its 2022 operating profit to be significantly higher than 2021 and 2019, unless the macroeconomic and geopolitical context deteriorates further
• By 2025, Altarea is targeting FFO² per share of around €18, mainly generated by organic growth

Unaudited data as of 31 March 2022

“Since the beginning of the year, Altarea has taken full advantage of the booming urban transformation market, in which it holds undisputed leadership positions with its comprehensive offering and wide product ranges. Operational successes achieved in each of our business lines make us confident about our outlooks, while remaining vigilant as to the changes in the environment.

In an inflationary context, driven by the consequences of the war in Ukraine, Altarea has already hardened its criteria in terms of land commitments and project launches. We note, however, that demand remains strong from all customers, with real estate playing its full role as a safe haven in times of crisis. More than ever, Altarea is proactive in terms of risk management, and will make the most of its agility and ability to seize opportunities in a market that remains favourably oriented.

Altarea remains confident in its long-term outlooks, which are fundamentally based on the urban transformation market. Given the non-completion of the acquisition of the Primonial group, we modify the guidance announced on 22 February. Considering the first quarter performance, we expect its 2022 operating profit to be significantly higher than 2021 and 2019, unless the macroeconomic and geopolitical context deteriorates further. By 2025, we are targeting FFO per share of around €18, mainly generated by organic growth.

Altarea’s financial structure is particularly sound, with historically low net debt and abundant liquidity. As a result, and given the absence of any significant acquisition in the short term, Altarea will propose to the next Annual General Meeting of Shareholders the payment of the annual dividend entirely in cash.”

Alain Taravella, Chairman and Founder of Altarea 

1. Potential value at end-December 2021. Potential value = market value at delivery date. Retail: potential market value including transfer duties of projects on delivery (net rents capitalised at a market rate) at 100%, and revenue excluding tax for development projects. Residential: offer for sale + portfolio incl. VAT. Business property: potential market value excl. transfer duties on the date of disposal for investment projects (at 100%), amount excl. VAT of off-plan sales/PDCs for the other development programmes (at 100%, or Group share for jointly owned projects), and capitalised DPM fees, near stable year-on-year.

2. Funds from operations (FFO): net profit excluding changes in value, calculated expenses, transaction fees and changes in differed tax.