Slide 1: 2023 Annual Results
2023 ANNUAL RESULTS ALTAREA
Slide 2: Agenda
AGENDA 01 - INTRODUCTION 02 - OPERATIONAL PERFORMANCE 03 - FINANCIAL AND ENVIRONMENTAL PERFORMANCE 04 - OUTLOOK ALTAREA – 2023 ANNUAL RESULTS 2 2
Slide 3: Introduction
01 INTRODUCTION ALTAREA – 2023 ANNUAL RESULTS 3
Slide 4: Altarea entered its third decade
ALTAREA ENTERED ITS THIRD DECADE EVERYTHING HAS CHANGED… BUT NOTHING HAS CHANGED 1994 2024 Same mindset, same determination, same ambition Leader of low-carbon urban transformation ALTAREA – 2023 ANNUAL RESULTS 4
Slide 5: A deep real estate crisis
A DEEP REAL ESTATE CRISIS The end of a 15-year cycle All real estate sectors are concerned An end to the crisis in 2025 at the earliest Adaptation to the new cycle is necessary ALTAREA – 2023 ANNUAL RESULTS 5
Slide 6: React with determination, stay focused
REACT WITH DETERMINATION STAY FOCUSED Insightful diagnostic Prompt and necessary adjustments Focus on cash, realignment of values Start the new journey on solid bases ALTAREA – 2023 ANNUAL RESULTS 6
Slide 7: The strategic roadmap
THE STRATEGIC ROADMAP Two years of adaptation to the change of cycle (2023 and 2024), followed by three years of ramping-up, in both the historical activities and the new businesses Throughout the duration of its roadmap, Altarea will rely on its strong financial structure, largely supported by its
Slide 8: In 2023, Altarea implements its roadmap
IN 2023, ALTAREA IMPLEMENTS ITS ROADMAP WITH STRONG WILL AND DETERMINATION Strong performance Focus on cash from Retail REIT +€346m €1.3bn €2.4bn Recovery of cash Signed financings Liquidity in Residential Significant reduction in commitments in Residential Assumed shortfall in results Voluntary adj
Slide 9: Operational Performance
02 OPERATIONAL PERFORMANCE 9 ALTAREA – 2023 ANNUAL RESULTS 9
Slide 10: Retail REIT: a highly performing shopping centers portfolio
RETAIL REIT A HIGHLY PERFORMING SHOPPING CENTERS PORTFOLIO €5.2bn in value - 43 assets - 4 high-performing formats(1) From left to right and top to bottom : CAP3000, Bercy Village, Qwartz, Paris-Montparnasse railway station, Avenue 83, convenience stores in the Toulouse Montaudran neighborhood. ALTA
Slide 11: Retail REIT: the best operating performance over a decade
RETAIL REIT THE BEST OPERATING PERFORMANCE OVER A DECADE Tenant sales +7% vs 2022 Footfall +3% vs 2022 Occupancy rate 97.3% Avenue 83 in Toulon La Valette ALTAREA – 2023 ANNUAL RESULTS 11
Slide 12: Retail REIT: developing the rental offer
RETAIL REIT DEVELOPING THE RENTAL OFFER (EXTENSION, RENOVATION, CREATION) La Vigie : Doubling of the retail area (22,000 m², 22 tenants), 1 800 m² of installed solar pannels and 8 Electra ultra rapid charging spots. ALTAREA – 2023 ANNUAL RESULTS 12
Slide 13: Retail REIT: growth in NRI, resilience in value
RETAIL REIT GROWTH IN NRI, RESILIENCE IN VALUE Net rental income €204.8m Assets under management €5,232m €2,240m Group Share Like-for-like growth +6.0% Change in value -4.6% vs 2022 -€114m Group Share Collection rate 96.3% Exit rate 5.92% vs 94.4% in 2022 +56 bps vs 2022 +103 bps vs 2019 ALTAREA – 2
Slide 14: Retail REIT: success in travel retail
RETAIL REIT SUCCESS IN TRAVEL RETAIL Paris-Austerlitz station, the new lively heart of the city 25,000 m² of retail, 45 million users by 2030 Paris-Est station renovation 7,200 m² of retail/restaurants, 2,700 m² of co-working ALTAREA – 2023 ANNUAL RESULTS 14
Slide 15: Residential: face double crisis with resolve
RESIDENTIAL FACE DOUBLE CRISIS WITH RESOLVE Offer crisis Reduce commitments Higher costs and standards Prepare the recovery tightening administrative and political constraints Accelerated sale of existing offer Demand crisis Buyers’ solvency issues (sharp rise in interest rates, less access to credi
Slide 16: Residential: accelerated sale of existing offer
RESIDENTIAL ACCELERATED SALE OF EXISTING OFFER Orders -16% Individuals remain the Group’s target client in a market down by -26%(1) €2,666m 65% €2,250m 35% 50% 50% Block sales 65% 50% Retail sales 2022 2023 Sold units are mainly from Invest in new-build property, it’s still possible ! Becoming a new
Slide 17: Residential: drastic reduction in land acquisitions
RESIDENTIAL DRASTIC REDUCTION IN LAND ACQUISITIONS 167 -63% Number of acquired lands 63 Potential revenue €1.1bn 5,064 units In 2023, acquisitions limited 2022 2023 to projects « in the market » Project located in Elancourt: 100 collective housing units (RE2020 threshold 2025 using low-carbon concre
Slide 18: Residential: significant reduction in commitments
RESIDENTIAL SIGNIFICANT REDUCTION IN COMMITMENTS Sale of offer from previous cycle Drastic reduction of land acquisitions Recovery of Unsold units under construction €346m in cash 3,500 units 1,500 units by the end of 2022 by the end of 2023 Residential WCR reduced to 16.7% of revenue ALTAREA – 2023
Slide 19: Residential: new organisation of the brand portfolio
RESIDENTIAL NEW ORGANISATION OF THE BRAND PORTFOLIO The Group’s leading brand Specialist of low-carbon Renovation & refurbishment Managed residences Geographic footprint development Historical monuments, Malraux Law Depth of product range properties, Real Estate Tax schemes for active seniors Therma
Slide 20: Residential: review of projects from previous cycle
RESIDENTIAL REVIEW OF PROJECTS FROM PREVIOUS CYCLE Acknowledgement of projects issued from Land options portfolio the previous cycle becoming unfit, in in number of units particular to customers' purchasing power 48,000 5,800 units Commercial 13,200 Review of design and cost launches Abandon of land
Slide 21: Residential: preparing the recovery
RESIDENTIAL PREPARING THE RECOVERY New generation offer Affordable, low-carbon, profitable design, carbon performance, optimisation of plans, unit sizes, commercial strategy, territorial strategy, construction costs, land prices 10,000 units supplied in 2023 launched from the end of 2024, contributi
Slide 22: Offices: intensive service activity in Paris and regions
OFFICES INTENSIVE SERVICE ACTIVITY IN PARIS AND DEVELOPMENT ACTIVITY IN REGIONS From left to right and top to bottom : delivery of Visionnaire for L’Oréal located in its historic headquarters at rue Royale in Paris, start of renovation work of Valhubert (the former headquarters of CACEIS) in Paris A
Slide 23: Offices: leader in education property
OFFICES LEADER IN EDUCATION PROPERTY Delivery of emlyon campus and several projects under development On the left: delivery of the emlyon Campus - Top right: Off-plan sale in Toulouse for Campus Claystone for Omnès Education (sold to Quaero Capital) - Bottom right: Off-plan sale to Cepac Foncière fo
Slide 24: Logistics: a significant inventory of valuable assets
LOGISTICS A SIGNIFICANT INVENTORY OF VALUABLE ASSETS OWNED BY THE GROUP 354,000 m² fully leased via long-term leases to major tenants From left to right and top to bottom: now fully owned Bollène Hub (260,000 m² in total, including 3 first platforms [185,000 m²] delivered and leased to date, launch
Slide 25: Asset management: launch of retail SCPI and credit platform
ASSET MANAGEMENT LAUNCH OF A RETAIL SCPI AND A REAL ESTATE CREDIT PLATFORM Launch of a 1st retail SCPI Launch of the Real Estate Credit platform ATREC in partnership with AMF Approval granted to Altarea Investment Managers asset management company 1st retail SCPI €1bn without pre-crisis inventory or
Slide 26: Photovoltaics: creating a pipeline of diversified projects
PHOTOVOLTAICS CREATING A PIPELINE OF DIVERSIFIED PROJECTS A « Developer – asset manager » business model 1,000 MWp of pipeline at end-2023 including 400 MWp already secured Agrivoltaism First incomes expected at the end of 2024 Large roofs (La Vigie) Developing a solar park generating 500 MWp Car pa
Slide 27: Data centers: infrastructure at the heart of the digital city
DATA CENTERS THE INFRASTRUCTURE AT THE HEART OF THE DIGITAL CITY 2 projects under construction NDC Noyal-sur-Vilaine (Rennes) NDC Normandie (Rouen) 15 assets 3,200 m² - Power of 3 MW 7,000 m² - Total power of 13 MW by 2030 Middle-size eco-responsible data centers combining geothermal cooling and con
Slide 28: Financial and Environmental Performance
03 FINANCIAL AND ENVIRONMENTAL PERFORMANCE ALTAREA – 2023 ANNUAL RESULTS 28
Slide 29: Results: assumed decrease in FFO, adjustment of values
RESULTS - ASSUMED DECREASE IN FFO, PROACTIVE ADJUSTMENT OF VALUES IN PROPERTY DEVELOPMENT Business New In €m (1) Retail REIT Residential businesses property & other Consolidated revenue 2,712.3 -10% 259.0 2,247.1 204.0 2.2 EBITDA(2) 248.1 -44% 195.5 56.8 10.5 (14.7) +2% -63% -91% FFO Group share 101
Slide 30: Voluntary adjustment of values in property development
VOLONTARY AJUSTMENT OF VALUES IN PROPERTY DEVELOPMENT SETTLE THE PREVIOUS CYCLE In €m Development costs and lands in portfolio -192.9 Fair assessment on values Assets under construction or unsold -119.3 Projects in partnership at risk -37.4 Turn the Group toward the future Reorganisation of brands(1
Slide 31: A strongly capitalized REIT financial structure
FINANCIAL STRENGTH A STRONGLY CAPITALIZED REIT FINANCIAL STRUCTURE Capital employed (1) Consolidated ressources €6,358m €6,358m €5,744m €5,744m Residential 25% Residential 19% Offices 5% Shareholders' Logistics 2% Offices 5% equity Shareholders' Logistics 4% equity including minority (2) including m
Slide 32: Net debt €1,647m
NET DEBT(1) €1,647m (+€92m) RECOVERY OF € 346m CASH IN RESIDENTIAL, FURTHER INVESTMENTS In €m 1,647 +€ 92m -101 +28 1,555 +172 2023 FFO +86 Other 2022 +83 Decarbonisation Dividend -346 +93 (Woodeum, Logistics Jouvence) +77 CAPEX Office (Bollène,…) Reduction of Retail CAPEX CAPEX (Saint-Honoré,…) Res
Slide 33: 16% reduction in carbon footprint
16% REDUCTION IN CARBON FOOTPRINT In thousands of tCO2e -16% 1 085 +7% -13% Surface intensity Retail Scope Effect(1) Volume Effect linked to the -10% 910 -9.8% activity Rate Effect 1,299 kg/m² (surface intensity) 2035 target : 777 kg/m² Development Economic intensity -6.8% 335 g/€ amount of GHG requ
Slide 34: Taxonomy: a key advantage in access to financial resources
TAXONOMY A KEY ADVANTAGE IN ACCESS TO FINANCIAL RESOURCES Aligned revenue 48.1% Universal standard designed to direct funding 44.0% in 2022 towards sustainable activities application to financial institutions from 2024 Green Asset Ratio (GAR) Opinion of the Statutory auditors(1) one year ahead of th
Slide 35: Refinancing the vast majority of the bank debt
REFINANCING THE VAST MAJORITY OF THE BANK DEBT €1,348m Financing put in place 7-year mortgage financing Corporate loans €1,133m RCF / Term Loan maturities in 2028 and beyond Villeneuve-la-Garenne Barcelona Mortgage loans 43,300 m² 43,000 m² €215m Qwartz and Sant Cugat Mortgage loan of €125m Mortgage
Slide 36: Strong financing visibility throughout the roadmap
STRONG FINANCING VISIBILITY THROUGHOUT THE DURATION OF THE ROADMAP Liquidity €2,410m €782m€ of cash Strong liquidity €1,628m de unused credit lines No RCF has been drawn NEU CP and NEU MTN(1) to zero LTV 28.7% Covenant ≤ 60% 2024 and 2025 bonds outflows(2) covered by existing liquidity partly with p
Slide 37: Proposed 2023 dividend
PROPOSED 2023 DIVIDEND(1) 8.0 €/share Key dates 2024 ▪ 11 June : detachment a full payment in cash, or ▪ 13 to 25 June included : option period for payment of dividend in 75% payment in share(2) and 25% in cash shares ▪ 5 July : payment/delivery of new shares Indicative taxation AltaGroupe (family A
Slide 38: Outlook
04 OUTLOOK 38 ALTAREA – 2023 ANNUAL RESULTS 38
Slide 39: Strategy
STRATEGY Leader in low-carbon urban transformation A huge market High entry barriers requiring complex expertise Targeting leading positions in deep markets New housing, Retail and Logistics infrastructures, transformation and decarbonisation of assets, renewable energies, digital infrastructures AL
Slide 40: Strong assets: a company turned toward the future
STRONG ASSETS A COMPANY TURNED TOWARD THE FUTURE The previous cycle has been settled The foundations of the new cycle have been layed Altarea has the capability to achieve its ambitions Strong balance sheet and liquidity A mindset with determination An experienced management, committed teams ALTAREA
Slide 41: 2024, the second year of the roadmap
2024, THE SECOND YEAR OF THE ROADMAP RESUMING DEVELOPMENT, WHILE STAYING CAUTIOUS Rely on the performance of the Retail REIT Capture rent indexation, active asset management, targeted developments Restore profitability in Residential development Target individuals with an affordable offer (interest-
Slide 42: Back on growth
BACK ON GROWTH 2023 FFO low point 2024 Increase in FFO, the extent of which will depend on the macroeconomic environment Net debt close to its current level except in case of external growth FFO Higher than the peak of previous cycle (>€300m) in 4 years At the end of the period of adaptation to the
Slide 43: Altarea
NN ALTAREA
Slide 44: Disclaimer
DISCLAIMER This presentation has been prepared for information purposes only and is intended to supplement other information published by Altarea, to which readers are encouraged to refer. It is not, and must not be interpreted as a solicitation, recommendation or offer to purchase, sell, exchange o
Slide 45: Glossary
GLOSSARY • Going Concern NAV (Net asset value): market value of equity with a view to continuing • Liquidity: cash and cash-equivalent (marketable securities, certificates of deposit, credit the business taking into account the potential dilution from its status as an SCA balances) plus drawing righ