Slide 1: 2010 Half-Year Results
1 2010 Half-Year Results 1
Slide 2: Summary
1 Summary 2
Slide 3: Introduction
1 Introduction A promising first half Sharp rise in residential take-up Tenant sales improving Two shopping centres delivered 95% let Acquisition of Cap 3000 Change in scale Residential properties: increase in market share to 4%-5% (vs. 2%-3% in 2007 when Cogedim was acquired) Portfolio: Improvement
Slide 4: 2010 Half-year Results summary
2010 Half-year 1 Results summary Net rental income (€m) Residential take-up (€m inc. taxes) 74.7 70.7 +5.5% +54% 590 53.7 381 384 353 44.1 June 2007 June 2008 June 2009 June 2010 June 2007 June 2008 June 2009 June 2010 Recurring net profit (€m) On-going NAV (€m) 60.0 1323.4 -3% 58.1 1273.6 46.5 1203
Slide 5: 2010 highlights
1 2010 highlights Shopping centres: change in scale Property development Two completions (Okabé and Le Due Torri) : Residential property: rise in market share 95% let First half of 2010 reservations: €590m (+54% vs. first half of 2009 and +55% vs. first half of 2008) €284m increase in value Market s
Slide 6: Consolidated net profit
Consolidated net profit 1 Property Total Total % €m (IFRS) Shopping centres development June 2010 June 2009 Net rental income 74.7 - 74.7 70.7 +5.5% Net property income - 28.2 28.2 37.6 External fees 4.0 6.8 10.8 13.5 Net overhead expenses (9.3) (12.0) (21.3) (21.6) Other (2.5) 0.2 (2.3) (2.7) Opera
Slide 7: Going-concern NAV
1 Going-concern NAV (€7.2) €5.8 Positive impacts: €3.3 Other Dividend (€6.2) €5.5 Value of Financial Recurring net profit NAV per assets instruments NAV per R. Net profit share Change in fair value of property share €114.5 +1.1% €113.3 assets Negative impacts: Dividend payment (€7.2 per share) Chang
Slide 8: Operating performance: shopping centre development
2 Operating performance: shopping centre development 8
Slide 9: Shopping centre development: Operating profit
Shopping centre development: 2 Operating profit Increasing operating profit (+5.1%) (en M€) June 2010 June 2009 Rental income 80.9 76.6 +5.6% Land expense (2.0) (1.7) Unrecoverable rental expenses (1.6) (1.4) Bad debt (2.6) (2.7) Net rental income 74.7 70,7 +5.5% Net overhead expenses (5.3) (5.3) Ot
Slide 10: Shopping centre portfolio (1/2)
Shopping centre portfolio 2 (1/2) Improvement of the tenant economic situation in the first half of 2010 Tenant sales rose by 1.7% in the first half vs. -1.6% in 2009 and -3.8% in the first half of 2009 Occupancy cost ratio: 9.1% (vs. 9.5% in 2009 and 9.9% in the first half of 2009) Bad debts droppe
Slide 11: Shopping centre portfolio (2/2)
Shopping centre portfolio 2 (2/2) Increase in value of portfolio mainly thanks €2,306m (€114m) €143m €28m €284m €2,647m to completion of 2 properties Capitalisation rate Disposals Acquisitions Like-for-like Completions down -13bp at 6.45% change France France 82% 80% International International 18%
Slide 12: First half of 2010 Completions and acquisitions
First half of 2010 2 Completions and acquisitions 2 properties completed representing 57,500 sqm (Group share) Okabé Dalmine Area: GLA of 25,100 sqm Area: GLA of 32,400 sqm Signed rental income: €7.7m Signed rental income: €8.0m Percentage let: 98% Percentage let: 93% Acquisition of Cap 3000 Cap 300
Slide 13: Arbitrage and investment policy
2 Arbitrage and investment policy Wagram disposal Hotel walls, shops and Salle Wagram €113.8m (9% more than appraised value at December 31st 2009) Disposal to a German fund The group is currently negotiating the disposal of several mature properties on a value basis at least equal to the June 30th e
Slide 14: Shopping centre projects portfolio: Controlled investment
Shopping centre projects portfolio: 2 Controlled investment Shopping centres pipeline €1,537m (€282m) 2 properties completed Completions €267m invested in the first (€280m) half of 2010 Under review 32% Withdrawals (essentially from Withdrawals €36m €1,011m projects in Italy) Change in budgets Under
Slide 15: Development project portfolio: Breakdown of commitments
Development project portfolio: 2 Breakdown of commitments Operational classification of risks and commitments Already invested: all Projects Projects at Preparing to investment costs (€m) under advanced stage Total begin works recognised at the construction of review accounting date Already invested
Slide 16: Operating performance: Residential property development
3 Operating performance: Residential property development 16
Slide 17: Residential property development: Operating profit
Residential property development: 3 Operating profit Drop in operating profit (€m) June 2010 June 2009 Revenues 248.8 262.5 -5.2% Cost of sales (224.2) (237.3) Net property income 24.6 25.2 -2.1% % of revenues 9.9% 9.6% Fees 2.3 2.2 Production held in inventory 26.9 20.1 Net overhead expenses (34.7)
Slide 18: Residential property development: Business activity 1/3
Residential property development: 3 Business activity 1/3 Very significant increase in residential sales June 2010 June 2009 June 2008 Average price of units sold: Number of lots sold 2,832 1,887 1,463 €265,000 vs. €236,000 in the first half of 2009 % change (June 2010 vs.) +50% +94% Rate of disposa
Slide 19: Residential property development: Business activity 2/3
Residential property development: 3 Business activity 2/3 Reservations in the first half 2010: €590m 78% of reservations sold to individuals (vs. 79% in 2009 and 72% in the first half of 2009) Private investors (Scellier tax breaks): 55% of reservations sold to individuals Last 12 months: €1,094m of
Slide 20: Residential property development: Business activity 3/3
3 Residential property development: Business activity 3/3 An exceptional operation Operation in central Paris, a positive environment with a very low supply Almost 4Ha covered, 191 homes, 80 social housing units Construction works should start at the beginning of 2011 Completion planned in 2013 20
Slide 21: Properties for sale and land portfolio
3 Properties for sale and land portfolio Properties for sale At June 30th 2010, properties for sale reached €366m, which is 4 months of activity 69% of the properties for sale relate to developments on which construction has not yet begun Very few finished products on sale (€3m at June 30th 2010) La
Slide 22: Operating performance: Office property
3 Operating performance: Office property 22
Slide 23: Office property Operating profit
Office property 3 Operating profit Sharp decline in the operating profit (€m) June 2010 June 2009 Revenues 35.3 81.6 -57% Cost of sales (32.8) (68.6) Net property income 3.6 12.4 -71% % of revenues 10.1% 15,2% Fees 4.5 7.5 -41% Production held in inventory 3.5 1.9 Net overhead expenses (7.7) (7.7) O
Slide 24: Office property Completions and transactions
3 Office property Completions and transactions Toulouse - Porte Sud Nice Meridia - Premium Activity 3 completions representing 44,000 sqm Take-up of €171m essentially from property development contracts (Hôtel Dieu in Marseille and Palais de Justice in Nantes) Development alongside Vinci 10,000 sqm
Slide 25: Office property Investment fund
Office property 3 Investment fund Investing in office property Focused on Paris region Benefiting from an attractive economical entry environment into the office property cycle Real Estate context: shortage in high-quality office space by 2012 and obsolescence of assets not complying with new enviro
Slide 26: Financial position
4 Financial position Debt Liquidity 26
Slide 27: Debt Summary
Debt 4 Summary Breakdown of gross debt Net debt at June 30th 2010 : €2.099m1 Property development debt Consolidated covenants (corporate debt) 5% Cogedim LTV ICR acquisition debt 11% Corporate debt 34% June 2010 54.7% 2.6x December 2009 55.7% 2.6x Covenant ≤65% ≥2x Mortgage debt 50% Group debt repay
Slide 28: Debt Coverage
Debt 4 Coverage 100% of debt covered at end-2009 Altarea: gross debt coverage €m Coverage 2,500 5.50% 2,000 5.00% 4.50% 1,500 4.00% 1,000 3.50% 500 3.00% - 2.50% June-10 June-11 June-12 June-13 June-14 June-15 June-16 June-17 Total coverage Average Swap Capitalisation rate/Average collar Total gross
Slide 29: Cash and cash equivalents Summary
Cash and cash equivalents 4 Summary Net cash position of €152m¹ Corporate resources: €126m Confirmed authorisations: €26m Current cash and cash equivalents covers identified commitments Shopping centres: €40m (see slide 15 « Breakdown of commitments ») Property development: no needs beyond allocatio
Slide 30: Outlook
30 A ALTAREA COGEDIM
Slide 31: Outlook
5 Outlook Reinforce the presence in the large shopping centres Extensions (Toulouse, Cap 3000) New Development projects (Villeneuve la Garenne) Arbitrage of small assets or others 2009: €110m of assets disposal 1rst half of 2010: €114m of assets disposal 2nd semester 2010: several projects under rev
Slide 32: I SFA mr
a I SFA mr LZ . —— * -* \ - im| ALTAREA COGEDIM | 7