Quarterly financial information at 30 September 2023

 Altarea rolls out its roadmap 2023 outlook updated 

Retail: outstanding operating performance 

• Tenant’s revenue up sharply: +8.0 % 
• High occupancy rate: 97.2% 
• Rental income (9M): €169.5 million, up by 7.4% on a like-for-like basis (indexation included) 

Residential: accelerated repositioning to the new cycle 

• New orders (9M) down 14% in value terms in a market contracting by roughly 35%¹ 
• Steady disposal of units originated in the previous cycle 
• In-depth review of the land option portfolio 
• Development of a “new generation” offering that is low-carbon, affordable and profitable 

Business property: implementing ongoing projects 

• Imminent delivery of the emlyon campus (20,000 m²) 
• In-line progresses in logistics and offices in Regions 

New businesses (asset management, photovoltaics, datacenters,…) 

• Major agreements under finalisation 
• Launching of several projects 

Financials: solid balance sheet, a strength for Altarea 

• Consolidated 9M revenue: €1,815.5 million (-11.1%), 47.1% aligned with the EU Taxonomy 
• Net debt2 at €2,044 million, strong liquidity of €2,211 million 

2023 updated outlook 

• Guidance: FFO³ is expected to decline sharply compared to 2022, but to outperform significantly the H1 trend 
• Dividend⁴: €8.00 per share with an optional component in shares representing 75% of its amount⁵ 

AltaGroupe (A. Taravella’s family) and its affiliates on one hand, Crédit Agricole Assurances and its affiliates on the other, committed to opting for the full payment of the proposed dividend in shares. Together, these shareholders represent nearly 69% of Altarea’s capital. 

Publication of the 2023 annual results on Tuesday February 27, 2024 after market close 

Presentation Meeting on February 28 

 

“In an increasingly challenging environment, Altarea has been rolling out its roadmap: adapting to the real estate crisis and reducing commitments on the one hand, preparing a new generation offering for the recovery in property development and expanding into new business lines on the other hand. 

In residential and business property development, we have lowered commitments originated in the previous cycle, with drastically reduced land acquisitions since the start of the year, which will impact our 2023 results. An in-depth review is also under way to align the values that will be recorded in our consolidated annual accounts in order to reflect our views on the market perspectives. In the meantime, Altarea is working on a new generation offering fully adapted to the new context. This new offering will be low-carbon, affordable and profitable for a contribution starting as early as next year. With this new offering, we aim to achieve a satisfying level of profitability but with probably lower volumes than in the past. 

In retail, Altarea is experiencing one of its best years ever, driven by an inflationary environment. Our asset portfolio is more than ever the Group’s financial backbone, with an outstanding operating performance that will only partially offset the weak contribution from property development in 2023. 

Altarea expects its 2023 FFO to decline sharply compared to 2022, but to outperform the H1 trend significantly. 

The dividend to be proposed at the General Meeting in 2024 will now be €8.00 per share with an optional component in shares representing 75% of its amount, assuming there is no further deterioration related to geopolitical, health, or macroeconomic environment. 

My family group, on one hand, Crédit Agricole Assurances and its affiliates, on the other, committed to opting for the full payment of the proposed dividend in shares. Together, these shareholders represent nearly 69% of Altarea’s capital. 

With the support of its two main shareholders, Altarea can thus preserve its ability to absorb the impact of a deep crisis and also to invest in the future, especially in new businesses.” 

Alain Taravella, Chairman and Founder of Altarea 

 ¹ FPI (Fédération des Promoteurs Immobiliers) datas: -34.3% in Q1 2023, -30.2% in Q2 2023. Data for Q3 (published on 16 November 2023) are expected to fall sharply. 

² Bank and bonds debt, net of cash, cash equivalents and other liquid assets. 

³ Funds from operations (FFO): net income, Group share (i.e. attributable to equity holders of the parent company) exclusive of changes in value, estimated expenses and transaction costs. 

⁴ Submitted to the vote of shareholders at the General Meeting called to approve the 2023 financial statements and assuming there is no further deterioration of the geopolitical, health or macroeconomic environment. 

⁵ The new shares will be issued at a price of at least 90% of the average of the first trading prices in the twenty trading sessions preceding the day of the General Meeting, reduced by the amount of the dividend per share and rounded to the nearest one euro cent.