ALTAREA : First quarter 2024 revenue

Press release Paris, April 30^th, 2024 - 5.45 p.m. 

First quarter 2024 revenue €578.9 million (+4.0%)

Retail: all indicators are favorably oriented  Tenant’s revenue: +7.0% 

Occupancy rate: 97.2% 

Rental income (3-month): €59.7 million, up +9.2% at constant scope

Residential: new orders progressing in volume, stable in value  New orders¹: 1,687 units (+10%), €469 million (-2%) 

Revenue²: €457.5 million, up +2.6% 

"New-generation" offerings first launches expected in Q2

Business Property: significant progress on several projects 

Permit cleared for office project in Paris-Montparnasse (55,000 m²) 

Signing of a property development contract (PDC) on La Madeleine building in Paris (21,000 m²)

Solid financial position 

Revenue: €578.9 million, up +4.0% 

Taxonomy: revenue aligned at 55.6% (vs 48.1% in 2023) 

€2.1 billion in liquidity³ as of March 31^st 2024, no drawn RCF⁴

The strategic roadmap is progressing as per expectation shared during the 2023 annual results publication.                  A detailed update will be provided upon the release of the half-year results                   on Tuesday, July 30th (after market close)

Annual General Meeting on Wednesday, June 5^th, 2024 – Dividend terms and schedule  Proposed dividend for 2023: €8.00 per share 

Two payment options: 100% cash or 75% in shares and 25% in cash 

Option period for partial conversion into shares from June 13 to June 25, 2024 (inclusive) Ex-dividend date on June 11^th and payment date on July 5^th, 2024

Data as of March 31^st, 2024, unaudited – Change vs. first quarter 2023, unless otherwise state

1  For the first quarter.

2  Revenue in percentage of completion and external services.

3  Cash available in the form of investments (investment securities, certificates of deposit, credit balances) and drawdown rights on bank credit facilities (RCF, overdraft authorizations). 4 Revolving Credit Facilities.

I  - OPERATIONAL BUSINESS REVIEW AND FINANCIAL INDICATORS FOR Q1 2024

Consolidated revenue⁵ of €578.9 million (+4.0%)

In the first quarter of 2024, Altarea's consolidated revenue amounted to €578.9 million, an increase of 4.0% compared to the first quarter of 2023.

          Rental income                                                          

         External services                                                      

          Property development                                           

          Revenue (% of completion)                                   

         External services                                                      

          Revenue (% of completion)                                   

         External services                                                      

         Business Property                                                   

In the first quarter of 2024, Altarea's consolidated revenue were for the first time largely aligned with the European taxonomy with a rate of 55.6% (compared to 48.1% for FY2023), primarily driven by the increasing weight of new operations fully aligned in Residential Development projects.

Strong liquidity at €2.1 billion⁶  

The Group's liquidity stands at €2.105 billion after the repayment of €92 million⁷ in short and medium-term debt during the first quarter of 2024. As of the end of March, no RCF has been drawn, and the outstanding balances of the Group's NeuCP (commercial paper) and Neu MTN (Medium Term Note) programs are nil.

In Retail, all indicators are favorably oriented 

Tenant’s revenue rose by +7.0% with footfall up by +1.4%. 

Leasing activity remains dynamic, with nearly €7.0 million in minimum guaranteed rent signed during the period (compared to €7.8 million in the first quarter of 2023). 

The financial occupancy rate at the end of March stands at an optimal level of 97.2%. 

IFRS rental income amounts to €59.7 million in the first quarter of 2024, showing a total increase of +9.8% and of +9.2% at constant scope⁸ (including +4.8% indexation). 

5  Altareit, a 99.85%-owned subsidiary specialising in property development, generated revenue of €511.6 million in the first quarter of 2024 (compared to €496.5 million in the first quarter of 2023, representing a growth of +3.0%).

6  Of which €492 million in cash and €1,613 million in confirmed credit facilities, mainly in the form of RCF. 

7  This comprises €22 million in Neu CP and €70 million in Neu MTN. 

8  Excluding the extension of La Vigie shopping centre opened in September 2023.

In Residential, new orders progressing in volume and stable in value 

New orders⁹ have increased by 10% in volume to 1,687 units and are stable in value at €469 million (a decrease of 2%), driven by Block sales.

Individuals – Residential buyers

Individuals – Investment

Institutional investors – Block sales

Total in units

This quarter, new orders mainly concerned units from the previous cycle, with a significant contribution of Block sales. 

The offering available for sale at the end of March 2024 stands at 2,783 units, including 1,857 units under construction (compared to an inventory of 5,793 units a year ago, including 3,470 units under construction). This situation reflects the risk management policy adopted by the Group in 2023, which favors selling of the units from the previous cycle before putting on sale an offer adapted to the new market conditions.

Inventories from the previous cycle are now nearly sold out, Altarea can now launch the production of an affordable, low-carbon, and profitable "new generation" offering targeting Individuals, who remain the Group's core target. The first commercial launches of the completely redesigned offering are expected in the second quarter, although volumes will still be limited.

Altarea anticipates a decline in new orders for the first semester, followed by a ramp-up of the "new generation" offering in the second half of the year.

In Business Property, significant progress on several projects 

The main event of the quarter in Office sector is the final approval of the building permit for the renovation project of the former CNP headquarters located above the Paris-Montparnasse station. This 55,000 m² project, developed in a 50/50 partnership with Caisse des Dépôts, will undergo comprehensive restructuring in the coming years. The Group has also signed two property development contracts in Paris for La Madeleine (21,000 m²) and Louis Le Grand (3,000 m²) projects.

In Logistics, the Group is continuing work on several projects, notably in Bollène and La Boisse (Lyon). In all, the platforms under construction or delivered are already fully let through long-term leases to leading tenants.

9 New orders net of withdrawals, in euros, including VAT when expressed in value. Data at 100%, with the exception of operations under joint control which are reported in Group share.

II  - 2024 ANNUAL GENERAL MEETING - DIVIDEND TERMS AND SCHEDULE

For the financial year 2023, a dividend payment of €8.00 per share will be proposed to shareholders at the Annual General Meeting on June 5, 2024, at 11 a.m. at Altarea's headquarters. Shareholders will be able to choose between: 

•     a 100% payment in cash, 

•     or a 75% payment in shares¹⁰ and a 25% payment in cash.

The key dates for the dividend are as follows: 

•     June 11, 2024: ex-dividend date, 

•     June 13 to June 25, 2024, inclusive: option period for dividend payment in shares, 

•     July 5, 2024: payment/delivery of new shares.

AltaGroupe (A. Taravella family) and its affiliates on one hand, and Crédit Agricole Assurances and its affiliates on the other hand, have committed to opting for the entire payment of the dividend in shares proposed. Together, these shareholders represent nearly 69% of Altarea's capital.

Indicative financial calendar 2024 

Combined General Shareholders' Meeting:     5 June 2024 (11 a.m.)

Half-year results 2023:                                         30 July 2024 (after trading)

ABOUT ALTAREA - FR0000033219 - ALTA

Altarea is the French leader in low-carbon urban transformation, with the most comprehensive real estate offering to serve the city and its users. In each of its activities, the Group has all the expertise and recognised brands needed to design, develop, market and manage tailor-made real estate products. Altarea is listed on compartment A of Euronext Paris.

FINANCE CONTACTS

Eric Dumas, Chief Financial Officer                                 Agnès Villeret - KOMODO

edumas@altarea.com, tel: + 33 1 44 95 51 42             agnes.villeret@agence-komodo.com, tel: + 33 6 83 28 04 15

Pierre Perrodin, Deputy CFO                                            For any questions: investors@altarea.com

pperrodin@altarea.com, tel: + 33 6 43 34 57 13          More information:www.altarea.com/en/finance/investors

Disclaimer 

This press release does not constitute an offer to sell or solicitation of an offer to purchase Altarea shares. For more detailed information about Altarea, please refer to the documents on our website. This press release may contain certain forward-looking statements that are based solely on information currently available and are only valid as of the date of this document. They are not guarantees of the Altarea Group's future performance. While Altarea believes that such statements are based on reasonable assumptions at the date of publication of this document, they are by nature subject to risks and uncertainties which are unknown or that Altarea is unable to predict or control which may lead to differences between real figures and those indicated or inferred from such statements. This press release must not be published, circulated, or distributed, directly or indirectly, in any country in which the distribution of this information is subject to legal restrictions. 

(10) The new shares will be issued at a price of at least 90% of the average of the first trading prices in the twenty trading sessions preceding the day of the General Meeting, reduced by the amount of the dividend per share and rounded to the nearest one-euro cent.