Altarea Sca · EURONEXT:ALTA
Altarea Sca — Altarea Cogedim — H1 2019 Earnings Presentation
34 slides from Altarea Sca's earnings presentation, 2019
Slide 1: 2019 Half-Year Results
Leading Premier Property développeur Developer immobilier des territoires in France 2019 HALF-YEAR 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 Altarea Cogedim, which readers are encouraged to refer to. It is not, and must not be interpreted as, a solicitation, recommendation or offer to purchase, sell,
Slide 3: Building the city, a huge market
Building the city, a huge market Consolidated pipeline Residential, Business Property, Retail €19.4 billion of potential value 675 projects 4.5 million m² Altarea Cogedim, leading property developer in France 3 2019 HALF-YEAR RESULTS
Slide 4: 2019 half-year results and guidance
2019 half-year results and guidance ✓ Consolidated Revenues: +17% Strong sale increase in housing Residential Successes in Business Property and Mixed-use projects Significant value creation in Retail ✓ 2019 FFO: 17.50 – 17.70 €/share 2019 Dividend : 13.00 €/share pending on the General Assembly app
Slide 5: Business performance, Financial performance, Glossary
01/ BUSINESS PERFORMANCE 02/ FINANCIAL PERFORMANCE 03/ GLOSSARY 5 Existen’Ciel, Villeurbanne - La Soie (69) 2019 HALF-YEAR RESULTS
Slide 6: 01/ Business Performance
01/ BUSINESS PERFORMANCE 6 Cœur de Ville, Issy-les-Moulineaux (92) 2019 HALF-YEAR RESULTS
Slide 7: Large mixed-use projects: a step ahead of competitors
Large mixed-use projects: a step ahead of competitors Tender won in 1st semester 2019 Altarea Cogedim : leader in large mixed-use projects 11 ongoing projects €3.5 bn potential value Communities formerly located on the outskirts of main urban areas are being transformed into real cities, with all ci
Slide 8: Mixed-use projects: Bezons, redesigning a town centre
Mixed-use projects: Bezons, redesigning a town centre in a city which lacks urban centrality A new neighbourhood with all urban facilities 730 units 1 18,000 m² 4.6 ha of gardens school and sport grounds group A sustainable and certificated neighbourhood Cœur de Ville – Bezons (95) 100,000 m² 8 2019
Slide 9: Residential in high-demand areas: a shortage of housing
Residential in high-demand areas: a shortage of housing deepened by a low supply Shortage Complexity to deliver Quick sale turnover Municipal Elections + projects Increased shortage in the short term & carry-over effect phased- Low interest rates out post 2020 = Rise in prices & Increased buyers’ ef
Slide 10: Investment strategy to strengthen production tool and gain market share
Our investment strategy aims at strengthening the production tool and gain market shares (target of 15,000 units sold per year) Increased workforce Advertising & digital Pipeline (in units) e-resa 48,000 +220 net new hires dedicated to 44,800 operational functions (developers, program managers, vend
Slide 11: New orders: +16% in value, market share gains
New orders: +16% in value, market share gains 2nd developer in housing (up by one rank since 2018) Customer-focused Targeted locations approach 99.9% in high-demand areas Paris Greater Area & major regional cities A comprehensive A “multi-brand” range strategy New orders High end / Mid-market / Entr
Slide 12: Highly dynamic offer
Highly dynamic offer Origination Commercial Launches Properties for sale RESTRUCTURATION OF FORMER IBM CAMPUS – Nice La Gaude ROMAINVILLE LA MANUFACTURE – Paris Métropole 93 BORDEAUX BELVEDERE – Bordeaux 700 units by Cogedim + 250 units renovated by Histoire & Patrimoine Launch of commercialisation
Slide 13: Winning iconic competitions
Winning iconic competitions La Défense Cloud Towers HIGH GARDEN, Rueil-Malmaison (92) CAMPUS DE L’ENFANCE, Bourg-la-Reine (92) REDEVELOPMENT OF THE EMILE AILLAUD "CLOUD TOWERS“, Nanterre (92) Pitch Promotion – 220 units Cogedim – 150 units Cogedim and Histoire & Patrimoine – 1,000 units “Inventons l
Slide 14: 50% of Woodeum acquisition: low carbon residential developer
50% of Woodeum acquisition: a leader in low carbon residential development with a strong expertise in Cross-Laminated Timber (CLT) Strategic sector High potential player ▪ High ecological performance ▪ Niche expertise ▪ Speedy construction ▪ Broader residential offer ▪ Reduction of pollution and ▪ P
Slide 15: Business property: refuelling the pipeline
Business property: refuelling the pipeline Property development in Regions Investment Overall pipeline EM LYON BUSINESS SCHOOL – Lyon CNP ASSURANCES – Paris CAMPUS ORANGE – Lyon Acquisition of the head office for redevelopment 4 projects signed 1 major project with CDC €5.2 billion potential value (
Slide 16: Maine-Montparnasse: redevelopment of the CNP Assurances head office
Maine-Montparnasse: redevelopment of the CNP Assurances head office An exceptional In a rapidly modernising redevelopment neighbourhood New "Tower" in 2024 Urban window on Balconies north façade (700 m²) on south facade "Low carbon" pilot neighbourhood 3,500 m² services 8,000 m² planted area centre
Slide 17: Very strong commercial and operational activity
Very strong commercial and operational activity New orders Construction launches Projects under construction ISSY-CŒUR DE VILLE – Issy-les-Moulineaux (92) CARRÉS DU GOLF – Aix-en-Provence RICHELIEU (ALTAREA COGEDIM) – Paris €369 m incl. tax 4 projects 29 projects 63,300 m² 463,400 m² 17 2019 HALF-YE
Slide 18: Retail: portfolio rotation
Retail : portfolio rotation The Group acts as a buyer or seller of assets depending on the circumstances Development Acquisitions Disposals Local convenience stores: COEUR DE VILLE – Issy (92) PORTA GARIBALDI STATION– Milan OKABE – Kremlin Bicêtre (94) €1.8 billion of pipeline 5 Italian stations €12
Slide 19: Deployment of travel retail expertise in Italy
Deployment of travel retail expertise in Italy Turin Porta Susa Milan Porta Garibaldi Acquisition Diversification of 5 Italian stations of uses and extension +13,800 m² Sales and advertising spaces 9 mu / year 29 mu / year Long term concession Padua Centrale → 2041 Co-working Hotels ~65 ~170 21 mu /
Slide 20: Portfolio: strong operational performance
Portfolio : strong operational performance Large malls Travel retail Retail parks Trendy places to visit High frequentation by nature An effective price/product ratio CAP 3000 – St Laurent du Var (Nice) GARE PARIS-MONTPARNASSE FAMILY VILLAGE – Limoges Final phase of restructuration & extension High
Slide 21: Retail: strong value creation
Retail : strong value creation Disposals’ added-value Development Portfolio appraisals +1.9% Montparnasse station -0.5% vs. appraisals & Cap 3000 Sud like-for-like +€5,8 m +€81,8 m €(16,0)m €71.6 M value creation (Group share) 21 2019 HALF-YEAR RESULTS
Slide 22: 02/ Financial Performance
02/ FINANCIAL PERFORMANCE 22 Joia Meridia, Nice 2019 HALF-YEAR RESULTS
Slide 23: 2019 half-year key results
2019 half-year key results Consolidated FFO Revenues €1,279 M €110.2 M 6.87 €/share +16.8% -6.6% -7.0% like for like basis LTV Diluted 34.1 going €2,774 M 166.5 concern % €/share NAV +3.5% +3.6% -80 bps excl. dividend excl. dividend 23 2019 HALF-YEAR RESULTS
Slide 24: FFO group share: €110.2 M
FFO group share: €110.2 M (-6.6% vs. S1 2018 restated, -11.3% vs. S1 2018 released) €124.2 M (0.4) €118.0 M 5.2 (6.2) (13.5) €110.2 M IAS 23 (5.3) Impact 32% 29% Other Corporate 23% Retail : Strong performance Residential : high seasonality 33% 31% 32% effect Business Property : perimeter effect (pr
Slide 25: Retail FFO: €50.2 M up by +11.5%
Retail FFO: €50.2 M up by +11.5% +11.5% 2.0 Net rents (6.4) €50.2 M Increased emphasis on 7.4 (LFL basis) €47.1 M 3.1 travel retail Disposals (0.9) Phase 1 Gare-Montparnasse €45.0 M Other IFRS 16 Train stations Impact Italian train stations (Montparnasse & Italy) Increase in net rents +2.7% in a lik
Slide 26: Residential FFO: €37.2 M, in slight decrease
Residential FFO : €37.2 M, in slight decrease (-1.1%) (1.1% ) Increased investments in high-demand areas New hires Commercial and digital investments Margin Net overhead IFRS 16 expenses Impact Intensified seasonality effect Schedule of land acquisition in S2 Delivery of large operations Agreements
Slide 27: Business property FFO: €26.6 M
Business property FFO : €26.6 M, down by 34% (+21,0% excl. promote effect) (34.2%) +21.0% excl. promote effect 2018 perimeter effect Altafund performance fees (non-recurring promote) Net overhead Impact Promote Margin expenses IFRS 16 Main operations contribute to margin increase (CPI Bridge & Riche
Slide 28: Diluted going-concern NAV: €2,774 M, 166.5 €/share
Diluted going-concern NAV: €2,774 M, i.e. 166.5 €/share (+3.6% post dividend) -4.5% (+3.6% excluding dividend) 174.3 €/share 171.1 (0.4) €/share IAS 23 / IFRS 16 opening 4.3 166.5 Value creation in Retail (5.4) impacts €/share (13.3) Retail (0.1) 160.7 6.9 Financial Other Financial instruments €/sha
Slide 29: Net debt: remains at a steady €2,479 M
Net debt: remains at a steady €2,479 M +€30 M €2,479 M €2,449 M 60 Development 110 investments Retail investments 167 Capex (Montparnasse station, FFO S1 2019 Cap 3000) 87 Acquisition of Italian train stations Debt Retail Investments reclassification (ow assets held for Development investments sale)
Slide 30: High investment grade credit profile
High investment grade credit profil In €M Bond Altareit 1,053 Bond Success of dividend paid in Altarea shares LTV : 34.1% (-80 bps ) +€93.8 M in equity ICR : 5.9x 576 Cap 3000 511 Duration : 4 years 7 months Financial ratings confirmed by 159 65 104 S&P Global Average cost: 33 50 2.06% (+12 bps) 201
Slide 31: Guidance 2019 and 2020
Guidance 2019 and 2020 2019 FFO: 17.50 – 17.70 €/share 2019 Dividend : 13.00 €/share pending on the General Assembly approval 2020 FFO : €300 M (Group share) 31 Note : guidance includes IFRS 15 & 16 and IAS 23 impacts as well as the increase in taxes on non-SIIC activities 2019 HALF-YEAR RESULTS
Slide 32: Leading Property Developer
Leading Premier Property développeur Developer immobilier des territoires in France 2019 HALF-YEAR RÉSULTATS RESULTS ANNUELS 2018
Slide 33: Glossary 1/2
Glossary 1/2 • Average cost of debt: Average cost including related fees (commitment fees, • FFO (Funds from operations) or recurring net result: Net result excluding CNU…). changes in value, calculated expenses, transaction fees and changes in • Bad debt ratio / doubtful debtors: Net amount of allo
Slide 34: Glossary 2/2
Glossary 2/2 • ICR (Interest Coverage Ratio): Operating income / Net borrowing costs. (FFO • Operating income: Recurring operating cash flow (FFO column in the column). consolidated P&L account). • IAS 23 : this standard consists of directly entering the financial expenses on • Pipeline (in surface