ALTAREA ALTAREA
BUSINESS REVIEW 30 JUNE 201711V
CONTENTS
Altarea Cogedim, leading developer in French gateway cities 3
Property Development 11
CONSOLIDATED RESULTS 17
Results 17
1.3.3 Net asset value (NAV) 20
FINANCIAL RESOURCES 22
Financial position 22
Financing strategy 23
Financial ratios 23
ALTAREA COGEDIM BUSINESS REVIEW AT 30 JUNE 20172
- INTRODUCTION
-
Altarea Cogedim, leading developer in French gateway cities
Secured pipeline
(by metropolitan area)
Surface areas (m²)
Potential value (€m)
Grand Paris
1,827,400
9,985
Métropole Nice-Côte d'Azur
149,700
1,374
Marseille-Aix-Toulon
261,700
1,019
Toulouse Métropole
234,100
764
Grand Lyon
194,500
624
Grenoble-Annecy
116,600
432
Nantes Métropole
77,900
270
Bordeaux Métropole
242,700
745
Eurométropole de Strasbourg
89,800
318
Métropole Européenne de Lille
70,400
155
Montpellier Méditerranée Métropole
92,700
153
Métropole de Rennes
1,300
3
Italy
44,700
200
Spain
22,400
71
Other
43,500
177
Total
3,469,400
16,290
A multi-product offering
Altarea Cogedim is the only French real estate group with developer expertise covering all asset classes (including retail, residential, serviced residences, offices and hotels).
This positioning has enabled the Group to manage one of the largest portfolios of real estate projects in France, representing almost 3.5 million m² (all products combined), or €16.3 billion in market value.
Secured pipeline (by product)
Surface area
(m²) (a)
Potential value
(€m) (b)
Shopping centres
436,800
2,740
Convenience retail
148,500
428
Offices
851,800
4,629
Residential
2,032,300
8,494
Total
3,469,400
16,290
(a) Shopping centres and convenience stores surface area: in m² created. Office floor area: floor surface area or usable surface area.
Surface area residential: property for sale + future offering.
(b) Market value as of delivery date.
Value of shopping centres: potential value as of delivery, incl. tax (net rental income capitalised at a market rate).
Value of convenience stores: sales revenue, excl. taxes.
Value of offices: 100% (excl. tax) of the amounts signed or estimated for off- plan/property development contracts, or share of capitalised fees for delegated project management, and market value (excl. tax) for AltaFund.
This project portfolio is almost exclusively managed in the form of options or sale agreements that the Group can activate according to commercial and financial criteria, which enables the management of the Group's pace of commitments.
In addition, the Group usually works with financial partners in order to share risks on large projects.
Partnering with French gateway cities 1
The Group focuses its activities on approximately 12 gateway cities in France2, which hold most of France's demographic3and economic growth4, on less than 10% of its land5area. The Group has also set itself up in the Basque Country, in Bayonne. This regional targeting allows to take advantage of the dynamic of growing areas.
REIT/Developer model
The capital employed by the Group is mainly allocated to retail real estate development, which derives its growth from developping and implementing retail projects in order to hold them (100% owned or in partnership).
The other asset classes (such as offices and residential, etc.) are held for sale to third parties, generating significant profits on a relatively moderate balance sheet commitment given the scale of the Group.
Asset class
Capital employed
H1 2017 FFO contribution
Retail
80-85%
46%
Residential
10-15%
28%
Offices
0-15%
26%
1 Main urban district concentrating the local population movements, activities and wealth of a regional urban area at the local level for a population of more than 300,000 inhabitants. On 7 August 2015, the law concerning the New Territorial Organisation of the Republic (NOTRe) entrusted new authority to the regions and redefined those granted to each local authority.
2 Grand Paris, Métropole Nice Côte d'Azur, Marseille-Aix-Toulon, Toulouse Métropole, Grand
Lyon, Grenoble-Annecy, Nantes Métropole, Bordeaux Métropole, Eurométropole de
Strasbourg, Métropole Européenne de Lille, Montpellier Méditerranée Métropole et Rennes Métropole.
3 The population of the 12 French gateway cities where the Group's operations are
concentrated has increased by over 780,000 inhabitants in the last five years (Source: Insee). 4Average household income by taxable household is 15% higher than the national average (Source: Insee).
5 9.5% of the country territories account for more than 71% of GDP (Source: Insee).
ALTAREA COGEDIM BUSINESS REVIEW AT 30 JUNE 20173
- BUSINESS REVIEW
-
REIT
Altarea Cogedim REIT's activity is almost exclusively focused on shopping centres, mainly located in the most dynamic French metropolitan areas. A long-term carrying strategy may be implemented occasionally on some atypical assets (Rungis Market).
In terms of retail real estate, the Group's strength is in the size of its portfolio of projects developed on its own behalf and on behalf of third parties. The future growth in rents will be generated by the entry into operations of large secured projects whose size (in terms of rent) represents around 65% of the current portfolio: potential rents amounting to €142.5 million compared to a current portfolio generating €220.8 million6of rents today.
RETAIL REIT
Assets in operation Projects under development
30 June 2017
GLA
(in m²)
Current gross rent
Value assessed by specialist
GLA
(in m²)
Projected gross rent
Net investments
(€m) (d)
(€m) (e)
(€m)
(€m) (f)
Controlled assets (fully consolidated) (a)
720,800
192.6
4,231
378,400
134.9
1,790
Group share
564,100
136.7
2,878
353,300
110.2
1,503
Share of minority interests
156,700
55.8
1,352
25,100
24.7
286
Equity assets (b)
132,300
28.3
426
58,400
7.6
78
Group share
62,900
13.2
208
29,200
3.8
39
Share of third parties
69,400
15.1
218
29,200
3.8
39
Total portfolio assets
853,100
220.8
4,656
436,800
142.5
1,868
Group share
627,000
149.9
3,086
382,500
114.0
1,542
Share of third parties
226,100
70.9
1,570
54,300
28.5
325
Management for third parties (c)
167,700
34.8
611
-
-
-
Total assets under management
1,020,80
255.6
5,268
436,800
142.5
1,868
Group share
627,000
149.9
3,086
382,500
114.0
1,542
Share of third parties
393,800
105.7
2,181
54,300
28.5
325
Assets in which Altarea Cogedim holds shares and over which the Group exercises operational control. Fully consolidated in the consolidated financial statements.
Assets in which Altarea Cogedim is not the majority shareholder, but for which Altarea Cogedim exercises joint operational control or a significant influence. Consolidated using the equity method in the consolidated financial statements.
Assets held entirely by third parties who entrusted Altarea Cogedim with a management mandate for an initial period of three to five years, renewable.
Rental value on signed leases at 1 July 2017.
Appraisal value including transfer duties.
Total budget including interest expenses and internal costs.
6 Figures at 100%.
ALTAREA COGEDIM BUSINESS REVIEW AT 30 JUNE 20174
Altaréa SCA published this content on 27 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 July 2017 17:03:05 UTC.
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