ALTAREA
Paris, October 30, 2014, 5:45pm Press release
Q3 2014 revenue and business activity
Strong business momentum Retail: Solid performances Shopping centers: growth in tenant revenue (+1.5%) and like-for-like rental income in France
(+2.1%) Cap 3000 shopping center: launch of the extension
E-commerce: business affected by the competitive environment
Residential: Growth in entry-level and mid-range reservations Reservations: +18% in value terms to €708 million including tax, and +30% in volume terms
Percentage-of-completion revenues (excluding Laennec): -3.5%1
Offices: Strong business activity Signature of several operations (off-plan, AltaFund) and a solid pipeline of projects
Increasing contribution to future results confirmed
Consolidated indicators Consolidated revenue: €898.1 million (-16.1%).
Net debt: €1.96 billion (+5.5% from June 30, 2014)
Unaudited figures at September 30, 2014
1 Including Laennec, percentage-of-completion revenues came to €535.5 million (-14.5%).
ALTAREA COGEDIM Q3 2014 Revenues and Business Activity - Press release 1
I. BUSINESS
1. RETAIL - Solid performance Shopping centers: Growth in tenant revenue and rental income in France 2In € million excluding tax | 9/30/2014 | 9/30/2013 | Change |
Rental income Like-for-like change in France | 128.1 +2.1% | 130.6 | -1.9% |
Amidst sluggish consumer spending, tenant revenues grew 1.5%3, outperforming the CNCC index which remained stable
(-0.2%) in late August. Like-for-like (taking into account arbitrage and redevelopments), rental income in France rose
2.1% year-on-year.
During this quarter, Altarea also finalized the sale of two assets for a total of €78.5 million.
The Group was granted a definitive building permit for the 376,700-ft² (35,000-sqm) extension of the Cap 3000 shopping center in Saint-Laurent-du-Var, near Nice. Work will begin in Q4 2014. Once the extension has been delivered, the center will be one of France's largest, with a GLA (gross leasable area) of over 1.076 million ft² (100,000 sqm).
E-commerce: Intense competitive pressureRevenues declined 10.8% year-on-year as a result of increased competitive pressure on the prices of high-tech products.
Galerie Marchande commissions grew 9.3%, enjoying a favorable mix effect.
2. RESIDENTIAL - Growth in reservations4 in entry-level and mid-range programs: +30% in volume (2,783 units) and +18% in value terms (€708 million including tax)Number of units | 9/30/2014 | 9/30/2013 | Change |
Sales to institutional investors Sales to individuals | 878 1,905 | 552 1,595 | +59% +19% |
Total sales In € millions including tax | 2,783 units €708 million | 2,147 units €598 million | +30% +18% |
In € millions excluding tax | 9/30/2014 | 9/30/2013 | Change |
Percentage-of-completion revenues Excluding Laennec | 535.5 529.8 | 626.2 548.8 | -14.5% -3.5% |
In € millions excluding tax | 9/30/2014 | 6/30/2014 | Change |
Backlog5 Number of months of sales | 1,380 20 months | 1,417 20 months | -2.6% |
Properties for sale Future offering => Pipeline6 | 753 4,116 4,869 | 860 3,839 4,699 | +3.6% |
Revenue growth in this quarter was mainly driven by entry-level and mid-range programs (90% of sales in number of units). At the end of September, these types of programs accounted for nearly 85% of the pipeline.
Percentage-of-completion revenues faced an unfavorable base effect related to the significant contribution of the Paris
Laennec operation in 2013. Excluding Laennec, revenues were down slightly (-3.5%).
2 Like-for-like.
3 Figure at 100% on a "same-floor-area" basis in France, cumulative up to the end of September 2014, excluding properties being redeveloped.
4 Reservations net of cancellations, with Histoire & Patrimoine reservations accounted for in proportion to the Group share of ownership.
5 The residential backlog comprises revenues excluding VAT from notarized sales to be recognized on a percentage-of-completion basis and
reservations to be notarized. Including Histoire & Patrimoine property for sale (Group share).
6 The pipeline consists of VAT-inclusive revenues from properties for sale and the land bank, which includes all plots on which contracts (generally
unilateral) have been signed. Including Histoire & Patrimoine property for sale (Group share).
ALTAREA COGEDIM Q3 2014 Revenues and Business Activity - Press release 2
3. OFFICES - Strong business activity
During the quarter, the Group finalized the off-plan sale of the SAFRAN regional head office in Toulouse-Blagnac to an institutional investor. It also signed a purchase agreement via AltaFund with ALLIANZ VIE for a 382,100-ft² (33,500-sqm) building to be redeveloped in Paris (2nd arrondissement).
This Office business's development dynamic remains strong, with a pipeline of managed projects at €1.6 billion at September 30, 2014, out of which €1,0 billion of projects in partnership consolidated in equity-method (AltaFund notably). Thus is this business's development dynamic not to be analyzed based on the turnover, but directly based on the contribution of these partnerships to the Group result
II. OTHER HIGHLIGHTS OF THE QUARTER
The number-1 European property company7 in sustainable development strategy and performance
This year, the Group joined the GRESB's8 illustrious Top 10 worldwide, and was awarded a Green Star.
For its existing assets, the Group ranked 9th worldwide out of 637 market players and 1st among European property companies. For new construction, the company took 4th place out of 273 companies across the world.
These outstanding results are a testament to the strength of the sustainable development strategy initiated in 2010, as well as to the Group's commitment to environmental management of its assets and environmental a spirations for its new projects.
III. FINANCIAL POSITION
Net financial debt (bank and bond debt) amounted to €1.96 billion at September 30, 2014, compared to €1.858 billion
at June 30, 2014.
IV. ALTAREA COGEDIM Q3 AND 9-MONTH SALES
In € millionsRental income
Services and other
Brick-and-mortar retail
Distribution sales
Galerie Marchande commissions
Online retail
Revenue
Excluding Laennec
Services
Residential
9/30/2014
/
9/30/2013
-1.9%
-1.9%
-1.9%
-11.5%
+9.3%
-10.8%
-14.5%
-3.5%
n/a
-14.5%
Revenue
Services
Offices
-66.7%
+28.2%
-63.9%
-16.1%
7 Results of the GRESB (Global Real Estate Sustainability Benchmark) rankings, which assess the sustainable development strategies and performances of large real estate funds and companies around the world.
8 Global Real Estate Sustainability Benchmark, which assesses the sustainable development strategies and performances of large real estate funds and
companies around the world.
9 Restated retrospectively applying consolidation standards (IFRS 10 and 11) as of January 1, 2013
ALTAREA COGEDIM Q3 2014 Revenues and Business Activity - Press release 3
ABOUT ALTAREA COGEDIM - FR0000033219 - ALTAAltarea Cogedim is a leading property group. 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, commercialize and manage made-to-measure property products. With operations in France, Spain and Italy, Altarea Cogedim manages a shopping center portfolio of €4 billion and is a leader in e-commerce in France thanks to its subsidiary Rue du Commerce. Listed in compartment A of NYSE Euronext Paris, Altarea had a market capitalization of €1.7 billion at June 30, 2014.
ALTAREA COGEDIM CONTACTS | CITIGATEDEWEROGERSON CONTACTS |
Eric Dumas, Chief Financial Officer edumas@altareacogedim.com, tel: + 33 1 44 95 51 42 | Agnès Villeret, Analyst and Investor Relations agnes.villeret@citigate.fr, tel: + 33 1 53 32 78 95 |
Catherine Leroy, Analyst and Investor Relations cleroy@altareacogedim.com, tel: +33 1 56 26 24 87 | Nicolas Castex, Press Relations Nicolas.castex@citigate.fr, tel: + 33 1 53 32 78 94 |
NOTICE
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: http://www.altareacogedim.com/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 Q3 2014 Revenues and Business Activity - Press release 4
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