2024 HALF-YEAR RESULTS

Strong performance from Retail REIT (AuM of €5.2 billion¹)

• Tenants’ sales up 5.7% – Net rental income up 7.0% at constant scope
• Optimal occupancy rate at 97.3%

Residential: end of the adjustment period and launch of the new generation offer

• New orders 3,973 units (-10%), offer from previous cycle almost sold out
• Satisfactory level of risk, with historically low offer for sale
• Launch of Access, a new generation offering for first-time buyers
• Gradually resuming commercial launches in H2, depending on market conditions

Business property: reconstitution of a value reserve

• Offices: permit cleared for PRD-Montparnasse, operational progress on other projects
• Logistics: 835,000 m² of value to be cashed in at Altarea’s pace

New Businesses: acceleration in photovoltaics

• A fully operational set-up – A developer / asset manager / operator model
• Development of a pipeline covering a complete range of solar infrastructures
• €140m acquisition² of Préjeance, specialised in small-scale agricultural power plants
• Other new businesses on track in Data centres and asset management

Results driven by Retail and Residential improvement, robust financial position

• Sales of €1,197.3m (-4.2%), 59.6% aligned with the European Taxonomy
• FFO³ (recurring net profit) of €57.9m (compared with €21.7m)
• Net profit (Group share) of €26.8m (vs. -€17.8m)
• Net debt⁴ of €1,849m (+€202m vs end-23): sustained investment⁵, stable new Residential WCR
• Liquidity of €2.3 billion, LTV⁶ 31.3%

Altarea confirms its FFO growth target for 2024, the quantum of which will depend on changes in the macroeconomic and political environment.

In the midst of a deep crisis of real estate, Altarea has continued to implement its roadmap with determination, capitalizing in particular on the excellent performance of its retail REIT business. After a year 2023 dedicated to reducing risks and to clearing the impact of the previous cycle, the first half of 2024 was committed to laying the foundations for the new cycle.

In Residential, the adjustment period is coming to an end with the offer designed in the previous cycle being sold out. Our risks have been considerably reduced, and we are back on track with a new generation offer of products that are affordable, low-carbon and profitable, while remaining extremely strict and careful about our commitment criteria.

In Business property, we remained cautious in offices, acting mainly as a service provider in Paris. Our commercial successes in large-scale logistics have allowed us to build significant value reserve which can be potentially monetized when the time comes.

Finally, we have made substantial progress in photovoltaics. We now have a complete range of products, our teams are structured to implement our major pipeline, and our strategy now relies on both internal and external growth with the acquisition of Préjeance.

In financial terms, we have kept focusing on risk and liquidity control, while keeping capability to continue investing in product innovation, in high-potential retail and logistics projects, in new business lines as well as in the decarbonization of our activities.

Our perception of the environment has not changed. We are still foreseeing a long-lasting crisis, and we will continue to drive our Group in light with this vision and prepare ourselves to resume our growth on renewed basis. For 2024, we are confirming our FFO growth target, the quantum of which will depend on changes in the macroeconomic and political environment.

Alain Taravella, Chairman and Founder of Altarea

Change versus 1st half 2023 unless otherwise stated

Paris, 30 July 2024, 5.45 p.m. After review by the Supervisory Board, the Management has approved the consolidated financial statements for the half-year ended 30 June 2024. Limited review procedures have been completed. And the Statutory Auditors’ reports on the financial statements (Altarea SCA) will be issued without reservations on 30 July 2024.
 

¹ Funds From Operations (FFO): net profit excluding changes in value, calculated expenses, transaction fees and changes in differed tax. Groupe share.
² Funds From Operations (FFO): net profit excluding changes in value, calculated expenses, transaction fees and changes in differed tax. Groupe share.
³ Funds From Operations (FFO): net profit excluding changes in value, calculated expenses, transaction fees and changes in differed tax. Groupe share.
⁴ Bank and bond debt.
⁵ See on chapter 1.4.3.2 of the business review attached.
⁶ Loan To Value: Net bond and bank debt consolidated reported to the consolidated market value of the Group’s assets (bank covenant definition).