Altareit · EURONEXT:AREIT
Altareit — FY2018 Earnings Presentation
27 slides from Altareit's earnings presentation, 2019
Slide 1: A pure player in property development in France
A pure player ALTAREIT Premier in property development développeur in France immobilier des territoires 2018 ANNUAL RÉSULTATS RESULTS ANNUELS 2018
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared for information purposes only, and is intended to supplement other information published by Altareit, which readers are encouraged to refer to. It is not, and must not be interpreted as, a solicitation, recommendation or offer to purchase, sell, exchang
Slide 3: 2018 in a nutshell
01/ 2018 in a nutshell 3 Issy Coeur de Ville, Issy-les-Moulineaux 2018 ANNUAL RESULTS
Slide 4: Building the city
Building the city Altareit, a pure player in property ALTAREIT development in France Consolidated pipeline Residential, Business Property 100% €14.9 billion projects with labels and quality and/or environmental potential value #1 certifications 630 projects 20% social housing 3,8 million m² LABEL VI
Slide 5: Territorial metropolisation: the major trend in our markets
Territorial metropolisation: the major trend in our markets Increasing polarisation Greater cities under pressure Outdated infrastructures Social inequalities, affordable housing, Widespread commercial, industrial and Populations, activities, wealth transport, pollution residential zones MÉTROPOLE D
Slide 6: Reshaping property infrastructures in greater cities
Reshaping property infrastructures in greater cities Redesigning property Intensifying land use Promoting mixed-uses to make the city sustainable to resolve the economic equation to enrich urban life LA MAISON D’ARRÊT – Nantes L’HOSPITALITÉ - Kremlin Bicêtre COEUR DE VILLE - Issy-les-Moulineaux 6 20
Slide 7: Large mixed-use projects: reconnecting cities
Large mixed-use projects: reconnecting cities 48,000 m² Communities which were once located on the outskirts of main built-up areas are being transformed into real urban centres, with all the city features Altareit: leader in large mixed-use projects 10 projects ongoing JOIA MERIDIA – Nice €3.3 bn i
Slide 8: 2018 highlights
2018 highlights Emblematic sales for €975 million (at 100%) Sale of Semmaris Disposal of its stake in Semmaris KOSMO – Neuilly/Seine RICHELIEU – Paris SEMMARIS – Rungis Finalist 2019 MIPIM Award Acquisition of Histoire & Patrimoine Rating of the Group by S&P Global First rating First rating First Eu
Slide 9: Residential: sales growth and market share up
Residential: sales growth and market share up 7.6% market share (+80 bps) Origination Commercial Launches New orders ECRIN DES DAMES – Paris 6 COEUR DE VILLE – Issy-les-Moulineaux L’ATELIER & GREEN LANE – Romainville Double Pyramide d’Or €5.1 bn (incl. tax) €3.2 bn €2.9 billion (+11%) +27% +10% 11,8
Slide 10: U-CARE (Paris 13th): innovating for wellness
U-CARE (Paris 13th): innovating for wellness Generational mix Mixed use 130 upgradeable and 2,200 m² of space dedicated modular units to Health & Care Wooden structure 10 2018 ANNUAL RESULTS
Slide 11: Business Property: high momentum
Business Property: high momentum New orders Construction launches Deliveries CONVERGENCE (Danone) – Rueil-Malmaison BASSINS À FLOT (Bordeaux) 52 CHAMPS ELYSÉES (Galeries Lafayette) - Paris €529 million incl. VAT 8 projects 8 buildings 96,000 m² 115,000 m² 11 2018 ANNUAL RESULTS
Slide 12: Richelieu: La Maison Altarea Cogedim, our vision for offices
Richelieu: “La Maison Altarea Cogedim”, our vision for offices Smart design Top of the art amenities Individual offices, social spaces Meeting rooms, project areas Parking for Auditorium Relaxation Business centre, models room bikes 287 spaces area Restaurant and food court Terraces Conciergerie The
Slide 13: 2018 performance
02/ 2018 performance 13 Quartier Belvédère, Bordeaux 2018 ANNUAL RESULTS
Slide 14: Another year of remarkable growth
Another year of remarkable growth Consolidated revenue Recurring operating income Net income, Group share € 2,196.6 m € 178.4 m € 272.8 m(1) +27% +17% X3,4 156.01 €/share X3,4 (1) Including the impact of the sale of the Group stake in Semmaris 14 2018 ANNUAL RESULTS
Slide 15: Residential
Residential Operating income (FFO) 3.4 X €127.5 m €116.2 m Strong operating income (FFO) growth €69.0 m +9.7% vs 2017 €52.1 m €37.8 m This level only partially reflects the gains in market share in recent years 2014 2015 2016 2017 2018 15 2018 ANNUAL RESULTS
Slide 16: Business Property
Business Property Operating income (FFO) 2.6 X €45.8 m An operational model that maximises €33.0 m sources of revenue €27.9 m €26.7 m Strong operating income (FFO) growth €17.8 m +64.5% vs 2017 Strong visibility in coming years 2014 2015 2016 2017 2018 16 2018 ANNUAL RESULTS
Slide 17: Consolidated results
Consolidated results Operating Changes in value, Business € millions Residential Diversification Other corporate cash flow from estimated expenses Total property operations (FFO) and transaction costs Revenue 1,848.2 345.2 3.1 - 2 196.6 - 2 196.6 Change vs 31/12/2017 +30.1% +14.8% na na +27.4% +27.4
Slide 18: Net Debt
Net Debt Net bond and bank debt 2018 FFO Others Gearing(1) 0.48x WCR Sale of Semmaris Vs. 1.34x (Group stake) 31/12/2017 (€ millions) 31/12/2018 (1) Net bond and bank debt / consolidated shareholders’ equity 18 2018 ANNUAL RESULTS
Slide 19: Debt profile
Debt profile Strong improvement 1st credit rating of Net Debt / EBITDA ratio by S&P Global Strong credit metrics 5.2x BBB / stable Altareit’s ratios 4.4x Net Debt / EBITDA: 2.3x ICR: 16.9x First European property 2.3x developer to issue a public bond Altarea Cogedim’s covenants LTV: 34.9% (-120 bps)
Slide 20: Appendices & Glossary
05/ APPENDICES & GLOSSARY 20 2018 ANNUAL RESULTS
Slide 21: Redevelopment of an industrial site into a new district
Redevelopment of an industrial site into a new district Toulouse: from the ex-site of CEAT ("La Soufflerie") to the new Guillaumet district 101,000 m² Capitole 13 hectares unoccupied since 2000, 3 metro stops from Capitole 1,200 units 5,800 m² 7,500 m² 17,000 m² 17,000 m² 21 2018 ANNUAL RESULTS
Slide 22: Redevelopment of a low-densified area into a lively city center
Redevelopment of a low-densified area into a lively city center Bezons: creating the heart of a new urban zone 67,000 m² Grande Arche La Défense 14 hectares of waste and brownfield land, 12 minutes from Défense by tram 730 units 18,000 m² 1 school group 4.6 hectares 22 2018 ANNUAL RESULTS
Slide 23: Redevelopment of fading retail sites
Redevelopment of fading retail sites: 120 potential sites already identified Bobigny2, an hypermarket anchored center transformed into an intense city centre 107,000 m² Place de la Concorde Built in 1974 near the Prefecture building An outdated urban model 1,170 units 13,000 m² 10,000 m² 23 2018 ANN
Slide 24: P&L 2018
P&L 2018 Funds from Changes in value, Other € millions Residential Office Diversification operations estimated expenses Total Corporate (FFO) and transaction costs Revenue 1,848.2 345.2 3.1 - 2,196.6 - 2,196.6 Change vs 31/12/2017 +30.1% +14.8% Na Na +27.4% +27.4% Net property income 176.1 18.2 0.8
Slide 25: Balance sheet (1/2)
Balance sheet (1/2) € millions 31/12/2018 31/12/2017 NON-CURRENT ASSETS 594.8 693.8 Intangible assets 284.2 233.7 o/w goodwill 178.6 139.6 o/w brands 100.7 89,9 o/w client relations - - o/w other intangible assets 4.9 4.2 Property. plant and equipment 18.2 15.6 Investment properties 37.6 38.3 Securi
Slide 26: Balance sheet (2/2)
Balance sheet (2/2) € millions 31/12/2018 31/12/2017 EQUITY 843.3 502.3 Equity attributable to Altarea SCA shareholders 807.8 487.8 Capital 2.6 2.6 Other paid-in capital 76.3 76.3 Reserves 456.2 329.4 Income associated with Altarea SCA shareholders 272.8 79.5 Equity attributable to minority sharehol
Slide 27: Glossary
Glossary • Business Property: New orders at 100%, with the exception of projects under • LTV (Loan-to-value): Net bond and bank debt/Restated value of assets including transfer joint control (equity-accounted) for which new orders are in Group share. duties. • Customer Service of the Year: The "Elu