Slide 1: 2020 half-year results
2020 half-year results 6 August 2020
Slide 2: 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
Slide 3: Half-year results: a successful end of lockdown
Half-year results: a successful end of lockdown Acceleration in Residential as lockdown ends Quick resumption of work on the 300 building sites CDC Habitat agreements Notarised sales doubled vs. 2019 Situation is stabilising in Retail Revenue: €1,383.2 m (+8.1%) Providing support for retailers Adjus
Slide 4: 1. Operational performance
1. OPERATIONAL PERFORMANCE 2020 half-year results 4
Slide 5: Residential: strong step-up in activity as the lockdown ends
Residential: strong step-up in activity as the lockdown ends Cycle almost fully interrupted Business resumption Outstanding results during the lockdown actively managed despite the current situation Halt of 300 building sites Resumption of work on building sites New orders for two months in early Ma
Slide 6: New orders: €1,921 m (+30%), 6,667 units (+25%)
New orders: €1,921 m (+30%), ie. 6,667 units (+25%) Strong appetite from institutional investors supplanting individuals Sales to institutional Sales to individual investors investors 64% vs. 26% in 2019 36% vs. 74% in 2019 €1,228 m €692 m 4,483 units 2,184 units CDC Habitat Intentional choice to ag
Slide 7: Growth in Residential revenue (+19.5%)
Growth in Residential revenue (+19.5%) An outstanding achievement Revenue depends on both the percentage of work completed (building sites) and the commercial rate (notarised deeds) Revenue recognised = Revenue total x Rate technical x Rate sales completion completion Risk management Thanks to a rem
Slide 8: Potential remains strong: increase in backlog and pipeline
Potential remains strong: increase in backlog and pipeline Backlog +11% €4.2 bn excl. VAT SKY PLACE - Strasbourg (67) Pipeline +5% €13.4 bn 51,240 units PALOMAYA - Montpellier (34) JOIA MERIDIA - Nice (06) 2020 half-year results 8
Slide 9: Retail: support tenants' recovery
Retail: support tenants’ recovery Significant impact of Successful resumption the lockdown Quick resumption Partial activity of footfall during 2 months and tenants’ revenues Essential services shops Figures slightly < 6% of rents below 2019 levels (outperformance of Retail Parks) The mutation of Re
Slide 10: Q2 rent invoicing: €63.9 m (€39.1 m in GS)
Q2 rent invoicing: €63.9 m (€39.1 m in GS) A greater clarity Q2 rents invoicing: €63.9 m Waived Deferred to incl. 75% paid H2 2020 Ongoing Incl. 12% depreciated negotiation Incl. 13% in progress Invoiced Due to date Ongoing negotiation on deferred rents Rent waiver option Extension of contractual du
Slide 11: Net rents: -€11.2 m impact recognised in interim results
Net rents: -€11.2 m impact recognised in interim results -11.2% decrease in net rents Deliveries Covid impact -€11.2 m Like-for-like Disposals change Waiver Depreciation H1 2019 H1 2020 Rents recognition Unrecoverable and waived1 rents recognised in expense in the financial statements as of 30th Jun
Slide 12: Portfolio value adjustment: -€117 m in Group share
Portfolio value adjustment: -€117 m in Group share A model combining ownership Value adjustment: -3,8% in a l-f-l basis and third-party asset management Scope effect1 3,086 2,969 2,893 L-f-l decrease in value (-3.8%) 44% 56% 31/12/2019 30/06/2020 Portfolio managed Group share An effect mainly due to
Slide 13: Retail: operating KPIs show early signs of recovery
Retail: operating KPIs show early signs of recovery Overall, retailers’ revenues are slightly below 2019 levels Revenue generated per activity vs. June 2019 % Food, restaurants 67% Beauty, Health 95% Culture, glfts, leisure Entertainment 99% 39% 95% Equipment 82% of June 2019 Home equipment 139% lev
Slide 14: Business Property: business resumption
Business Property: business resumption Delays due to the halt of A more vivid recovery in building sites regional areas Delivery of Orange’s future Agreement signed with headquarters Unedic in Marseille and in Issy-les-Moulineaux delivery of Enedis’ postponed to 2021 headquarters in Limoges Many dis
Slide 15: Richelieu: a new headquarters located in the heart of Paris
Richelieu: a new headquarters located in the heart of Paris Embodiment of Altarea’s corporate culture A headquarters hosting Performance 1,300 employees in the Paris region Teamwork and individual work Expertise Cross-functional teams A sense of belonging Exceptional quality of life in the workplace
Slide 16: 2. Financial performance
2. FINANCIAL PERFORMANCE 2020 half-year results 16
Slide 17: Key figures as of June 2020
Key figures as of 30 June 2020 Funds from 7.05 Consolidated €1,383.2 m operations €118.2 m €/share Revenue (FFO) +2.6% +8.1% +7.2% LTV 33.4% Going concern €2,724.2 m 163.1 €/share NAV -2.7% +0.2 pt -2.7% vs. 31/12/2019 vs. 31/12/2019 excl. dividend 2020 half-year results 17
Slide 18: Group share FFO: €118.2 m (+7.2%)
Group share FFO: €118.2 m (+7.2%) Other incl. taxes 118.2 M€ Retail 110.2 M€ -€11.2 m impact on net rents in financial statements 23% 23% Residential Revenue growth Decrease in the average margin rate (-1.5 bps to 8.3%) 33% 47% Business property Delivery of Richelieu Effective management of overhead
Slide 19: Going concern NAV: €163.1/share
Going concern NAV: €163.1 €/share (-2.7% vs. 31/12/2019 excl. dividend) -2.7% (-2.0% vs. 30/06/19) FFO Asset value impairment and write-down of tangibles in Financial instruments and progress Fixed-rate debt Dividend Increased spread on fixed- Retail rate debt and losses on Deferred tax IFRS 16 fina
Slide 20: Net debt decreased to €2,372 m (-€103.3 m)
Net debt decreased to €2,372 m (-€103.3 m) In €m RETAIL Investments Retail 2,475 (Cap3000, Paris-Montparnasse train station…) Closing of the Italian deals Other 2,372 Financial Successful regularisation Instruments FFO campaign in Residential Group share Property development WCR Disposals represents
Slide 21: Enhanced liquidity and capital increase resulting in strong ratios
Enhanced liquidity and capital increase resulting in strong ratios €750 m in long-term new financing Available liquidy: €3.3 bn Unused In €m Cash Total RCFs €457 m in new resources1 At the Group level 651 1,151 1,802 €293 m extension At the projects level 772 694 1,466 Total 1,423 1,845 3,268 No RCF
Slide 22: 3. Outlook
3. OUTLOOK 2020 half-year results 22
Slide 23: Altarea is ready to tackle the crisis
Altarea is ready to tackle the crisis A diversified model A strong financial An unprecedented crisis in terms of position REIT essence and magnitude Asset manager €3.3 bn in cash & cash equivalents Deterioration of the macroeconomic Developer in all asset classes LTV: 33.4% situation Priority given
Slide 24: Altarea stands by its convictions
Altarea stands by its convictions Tremendous needs are forevermore calling for urban transformation New ways of Ecological experiencing cities urgency Living, working, consuming Low carbon cities, and commuting inclusive cities Urban transformation, a complex business Support Cities Platform of real
Slide 25: Outlook
Outlook Carrying forward risk management policy, in line with the first semester of 2020 FFO expected for the 2nd semester of 2020 should be around the same levels as for the 1st semester taking into account the postponed deliveries in business property, the consequences arising from delayed municip
Slide 26: 4. Glossary and appendices
4. GLOSSARY AND APPENDICES 2020 half-year results 26
Slide 27: Glossary
Glossary • Appraisal value – Retail: Value of portfolio assets including transfer duties (at 100% or • LTV (Loan to Value): Net bond and bank debt/Restated value of assets Group Share). including transfer duties. • Average total cost of the debt: Average total cost including related fees (commitment
Slide 28: Income Statement
Income Statement Changes in value, Funds from operations In € million Retail Residential Business Property Other (Corporate) estimated expenses and TOTAL (FFO) transaction costs Revenue 109.7 1 074.2 199.2 0.1 1,383.2 - 1,383.2 Change vs. 30/06/2019 -3.1% +19.5% -25.3% n.a. +8.1% Net Rental Value 82
Slide 29: Net asset value (NAV)
Net asset value (NAV) NAV - GROUP 30/06/2019 30/06/2019 31/12/2019 Published In €m Change €/share Change In €m €/share In €m €/share Consolidated equity, Group share 1,859.8 -13.3% 111.4 -13.3% 1,979.5 118.8 2,144.4 128.4 Other unrealised capital gains 692.8 661.5 701.5 Deferred tax on the balance s
Slide 30: Loan to Value
Loan to Value As of 30/06/2020 In €m Gross debt 3,557 Cash and cash equivalents (1,185) Consolidated net debt 2,372 Shopping centres at value (FC) (a) 4,226 Shopping centres at value (FC) intended for sale - Shopping centres at value (EM affiliates' securities) (b) 214 Investment properties valued a
Slide 31: Detailed balance sheet (1/2)
Detailed balance sheet (1/2) 31/12/2019 In € million 30/06/2020 restated NON-CURRENT ASSETS 5,555.4 5,455.4 Intangible assets 333.0 331.4 o/w Goodwill 209.4 209.4 o/w Brands 105.4 105.4 o/w Client relations 0.3 0.6 o/w Other intangible assets 17.9 16.1 Property plant and equipment 22.3 20.9 Right-of
Slide 32: Detailed balance sheet (2/2)
Detailed balance sheet (2/2) in € million 30/06/2020 31/12/2019 restated1 EQUITY 2,938.5 3,335.5 Equity attributable to Altarea SCA shareholders 1,859.8 2,144.4 Capital 255.2 255.2 Other paid-in capital 171.4 311.8 Reserves 1,568.0 1,343.8 Income associated with Altarea SCA shareholders (134.8) 233.