Altarea Sca · EURONEXT:ALTA
Altarea Sca — Altarea — H1 2024 Earnings Presentation
25 slides from Altarea Sca's earnings presentation, Jul 30, 2024
Slide 1: Half-Year Results 2024
30 JULY 2024 HALF-YEAR RESULTS 2024
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 o
Slide 3: Introduction
01 INTRODUCTION ALTAREA – HALF-YEAR RESULTS 2024 4 Quartier d’Issy Cœur de Ville
Slide 4: Sound and determined implementation
SOUND AND DETERMINED IMPLEMENTATION The roadmap: ▪ Two years of adaptation to the new cycle (2023 and 2024) ▪ followed by three years of ramping-up, in both historical and new businesses Progress report after the first half of 2024 While 2023 was focused on fixing previous cycle issues, the 1st half
Slide 5: Sound and determined implementation
SOUND AND DETERMINED IMPLEMENTATION Results driven by Retail Strong performance and improvements in Residential from Retail REIT €1,197m €57.9m Revenue FFO -4.2% vs €21.7m End of the adjustment 59.6% aligned with period in Residential the Taxonomy Robust financial position Acceleration €2.3bn 31.3%
Slide 6: Operating performance at 30 June 2024
02 OPERATING PERFORMANCE AT 30 JUNE 2024 ALTAREA – HALF-YEAR RESULTS 2024 7 Quartier d’Issy Cœur de Ville
Slide 7: Retail REIT: strong operating performance
RETAIL REIT STRONG OPERATING PERFORMANCE Tenant sales +5.7% stable footfall vs H1 2023 Dynamic rental activity €20.0 196 leases signed Optimal occupancy rate 97.3% vs 97.3% Harvesting the results of the asset management strategy initiated a decade ago Extension, renovation, rotation, retenanting, an
Slide 8: Retail REIT: growth in net rental income, resilience of values
RETAIL REIT GROWTH IN NET RENTAL INCOME, RESILIENCE OF VALUES Stability of asset values NRI (6 months) €105.6m +7.7% vs H1 2023 57% 43% Like-for-like growth +7.0% incl. +5.4% of indexation €5,208m €2,241m Group share (-0.8% vs Dec. 2023) (-0.0%) Collection rate 97.0% on publication date 6.03% +11 bp
Slide 9: Residential: end of the adjustment period
RESIDENTIAL END OF THE ADJUSTMENT PERIOD Fall in new orders due to low offer for sale Priority disposal of the units designed in the previous cycle New orders 4,415 3,973 -10% (1) in units mainly in 2023 and the balance in 2024 43% 60% + Block sales 57% 40% Individual sales Drastic reduction in comm
Slide 10: Launch of an affordable, low-carbon and profitable offer for first-time buyers
LAUNCH OF AN AFFORDABLE, LOW-CARBON AND PROFITABLE OFFER DEDICATED TO FIRST-TIME BUYERS « Enabling first-time buyers to become homeowners for a monthly payment close to or equivalent to the price of a rent » A revamped offering Unprecedented financing Our dream is to buy our own home that can accomm
Slide 11: Launch of Rive Nature in Villeneuve-la-Garenne first access programme
LAUNCH OF RIVE NATURE IN VILLENEUVE-LA-GARENNE FIRST ACCESS PROGRAMME The Seine Front ▪ 640 residence units and shops certified NF Habitat HQE® RE 2020, ranging from studios to 5-room duplexes, a friendly square, shops at the foot of the building and a 30-baby nursery. ▪ A natural living environment
Slide 12: Paris offices: intensive service activity and permit cleared for Upper
PARIS OFFICES INTENSIVE SERVICE ACTIVITY AND PERMIT CLEARED FOR UPPER Permit cleared for Upper (ex PRD – Montparnasse) 2 PDC signed in Paris Work in progress on the Bellini Left: Signature of a PDC for the Madeleine building (21,000 m²) - Top: Building permit obtained for the renovation of the forme
Slide 13: Logistics: a significant value to cash in at Altarea's pace
LOGISTICS A SIGNIFICANT VALUE TO CASH IN AT ALTAREA’S PACE 835,000 m² under development 285,000 m² fully leased via long-term leases to prime tenants 55,000 m² already sold (off-plan sales) Top left: VEFA at LIDL in Béziers, bottom: Ecoparc Aquitaine project 495,000 m² under control Top right: Wareh
Slide 14: Photovoltaic infrastructure: a complete range, ramping up to full power
PHOTOVOLTAIC INFRASTRUCTURE A COMPLETE RANGE, RAMPING UP TO FULL POWER Artificialized Not artificialized Photovoltaic Ground-mounted Floating Photovoltaic Agrivoltaics shading solar plant photovoltaics roofs Car park shelters Ground-mounted solar plant On logistics platform Bollène Family Village Nî
Slide 15: Photovoltaic infrastructure: acquisition of Prejeance
PHOTOVOLTAIC INFRASTRUCTURE ACQUISITION OF PREJEANCE The specialist in small and medium-sized agricultural roofs An attractive operating model (between 100 and 500 kWp) simplified connection procedures higher prices (compared with large power plants) Strong embedded growth 42 MWp in operation 41 MWp
Slide 16: Other new businesses on track
OTHER NEW BUSINESSES ON TRACK ASSET MANAGEMENT DATA CENTERS Shared ecoresponsible data centers 1st retail SCPI 15 projects in development (Paris, Lyon, Marseille, Toulouse, Nantes) Without inventory pre-crisis financing Ramping up collection First diversified investments: 2 in retail (Paris, Annecy)
Slide 17: Financial and environmental performance
03 FINANCIAL AND ENVIRONNEMENTAL PERFORMANCE ALTAREA – HALF-YEAR RESULTS 2024 18 Quartier d’Issy Cœur de Ville
Slide 18: H1 2024 results driven by Retail and improvements in Residential
H1 2024 RESULTS DRIVEN BY RETAIL AND IMPROVEMENTS IN RESIDENTIAL H1 2024 Business New In €m Retail Residential Group (1) property businesses Revenue 136.4 966.0 90.8 4.1 1,197.3 -4.2% change vs H1 2023 +9.7% -4.3% -21.9% Operating income (FFO) (2) 106.0 23.8 7.5 (7.3) 121.6 +31.6% change vs H1 2023
Slide 19: Taxonomy: steadily improving environmental performance
TAXONOMY (1) STEADILY IMPROVING ENVIRONMENTAL PERFORMANCE Revenue aligned in H1 2024 59.6% Alignment objective achieved majority alignment 59.6% 55.6% 48.1% 44.0% Decisive asset for access to financial resources Almost all bank loans include a taxonomy alignment clause Integration into the CSRD (2)
Slide 20: Net debt €1,849m (+€202m)
NET DEBT (1) €1,849M (+€202m) STABLE WCR IN NEW RESIDENTIAL, CONTINUED INVESTMENT In €m +55 €1,849 +€202m +56 +87 New 1,647 -58 +21 +40 Decarbonation businesses (Woodeum, BP CAPEX rehabilitation) FFO H1 24 Retail (office, large-scale New CAPEX logistics) Residential (Austerlitz) WCR after a sharp fa
Slide 21: A highly capitalised REIT structure, strong ratios
A HIGHLY CAPITALISED REIT STRUCTURE STRONG RATIOS Use(1) Resources €5,903m €5,903m Residential 31.3% 24.2x 22% Loan-to-Value ICR Shareholders' New businesses equity Covenant ≤ 60% Covenant ≥ 2,0x BP 6% vs 28.7% at 31/12/23 vs 7.5x at 31/12/23 including minority (2) 64% 1.59% 4 years 5 months Retail
Slide 22: Robust liquidity, maturities covered until 2028
ROBUST LIQUIDITY, MATURITIES COVERED UNTIL 2028 €2,286m vs €2,410m at 31/12/23 liquidity at 30 June 630m in cash & cash equivalents 1,656m in undrawn credit lines Altarea 2024 bond issue redeemed on 5 July for €255 million 2025 bond redemption covered €335m covered by existing liquidity No maturitie
Slide 23: Outlook
04 OUTLOOK ALTAREA – HALF-YEAR RESULTS 2024 24 Quartier d’Issy Cœur de Ville
Slide 24: 2024 Outlook
2024 OUTLOOK In the second half of 2024, Altarea will pursue the same policy: • building on the quality and performance of its Retail portfolio • maintaining a high level of operational and financial discipline in property development • continuing to invest in new generation Residential offer and Ne
Slide 25: Glossary
GLOSSARY • Tenant sales: Change in merchant sales on the basis of the period • New orders Residential: New orders net of withdrawals at 100%, stated. with the exception of jointly controlled operations (Group share). In • Average total cost of the debt: Average total cost including related € incl. t