AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Altarea

Earnings Release Apr 17, 2014

1101_10-q_2014-04-17_258dfd53-4e52-4dc9-8dee-d26125fc76fa.pdf

Earnings Release

Open in Viewer

Opens in native device viewer

Q1 2014 revenue and business activity

Step back in revenue, increase in sales activity

Retail: Performances in line with forecasts

  • Shopping centers: Growth of tenants' revenue (+1.7%) and like-for-like rents (+0.9%) in France
  • E-commerce: Performance impacted by a competitive environment

Residential: Strong increase in reservations, step back of the reported revenues

  • Reservations: €209 million incl. tax (+18% in value term, +49% in volume)
  • Percentage-of-completion revenues: €167.5 million (-22%)
  • Expected recovery of the percentage-of-completion revenues to start by end of 2014

Office property: A first quarter which does not stand for yearly forecasts

  • Revenue: €14.7 million
  • Very solid forecasts for the year 2014 (both in sales and result terms)

Key consolidated indicators

  • Consolidated revenue: €299.7 million (-20.5%)
  • Net debt: €1.842 billion

Unaudited figures at March 31, 2014

I. BUSINESS

1. RETAIL: Performances in line with forecasts

Shopping centers: Growth of tenants' revenue and like-for-like rents in France1

In France, tenants' revenue increases (+1.7%2 ) in a context of declining consumption (CNCC Index stable over the same period).

(In € millions)
Q1 2013 rental income 45.1
Net impact of disposals -1.4
Effect of deliveries -0.1
Refurbishments -0.4
Like-for-like change 0.0
o/w France +0.3 (+0.9%)
Q1 2014 rental income 43.1 (-4.4%)

E-commerce: Resistance of the Galerie Marchande marketplace and competitive pressure on High-Tech

In € million excluding tax 31/03/2014 31/03/2013 Change
Own-brand business volume (High-Tech) 64.3 69.5 -7.6%
Galerie Marchande business volume 28.7 28.7 +0%
Total business volume 93.0 98.2 -5.3%
Galerie Marchande Commissions 2.4 2.3 +4.2%
Rue du Commerce revenue 69.1 74.3 -7.1%

2. RESIDENTIAL: Strong increase in reservations, step back of the reported revenues

Reservations: +49% in volume (881 units) and +18% in value term (€209 million incl. tax)

Number of units 31/03/2014 31/03/2013 Change
Entry-level and mid-scale 784 540 +45%
Upscale 97 51 +90%
Sales to institutional investors 271 120 +226%
Sales to individual customers 610 471 +30%
o/w private investors 38% 27% +11 pts
Total reservations 881 lots 591 lots +49%
In € million including tax €209 million €177 million +18%

Reservations grow in all product categories and all investor profiles. The average value per unit is decreasing, following the Group's strategy of developing the entry-level and mid-scale products which now stand for 64% of total amount of sales (53% in Q1 2013).

Step back of the percentage-of-completion revenues

In € million excluding tax 31/03/2014 31/03/2013 Change
Percentage-of-completion revenues 167.5 215.7 -22.3%

Percentage-of-completion revenues reflect, with a 2-year shift, the fall in reservations registered in 2012.

1 Like-for-like.

2 Figure at 100% on a "same-floor-area" basis, cumulative for the first two months of the year, excluding properties being redeveloped.

Backlog & pipeline

In € million 31/03/2014 31/12/2013 Change
Backlog3 1,342 1,331 0.8%
Number of months of sales 19 months 17 months
Properties for sale 693 711
Future offering 3,955 3,730
=> Pipeline4 4,648 4,430 +4.9%

End of march 2014, the pipeline comprises over 80% of entry-level and mid-scale programs.

3. OFFICE PROPERTY: A first quarter which does not stand for yearly forecasts

In € million excluding tax 31/03/2014 31/03/2013 Change
Percentage-of-completion revenues 14.7 36.7 -59.9%
Backlog5 104 786 +33.3%

An off-plan forward lease agreement was signed with SAFRAN this quarter, to build a new 25,000 m² site close to Toulouse-Blagnac Airport.

A significant pipeline is currently being negotiated and should lead to the signature of new agreements in the coming months.

3 The residential backlog comprises revenues (excl. tax) from notarized sales to be recognized on a percentage-of-completion basis and reservations to be notarized.

4 The pipeline consists of tax-inclusive revenues from properties for sale and future offering, which includes all plots on which contracts (generally unilateral) have been signed.

5 The office property backlog comprises revenues (excl. tax) from notarized sales to be recognized on a percentage-of-completion basis, plus take-up not subject to a notarized deed yet and fees owed by third parties on signed contracts.

6 Backlog as of December 31, 2013.

II. FINANCIAL POSITION

Net bond and bank debt came to €1.842 billion at March 31, 2014, compared with €1.837 billion at December 31, 2013.

IV. ALTAREA COGEDIM Q1 2013 REVENUE

In € million Q1 2014 Q1 2013
restated7
2014/2013
Rental income 43.1 45.1 -4.4%
Services 5.2 5.0 4.8%
Brick-and-mortar retail 48.3 50.1 -3.5%
Retail revenue 66.6 72.0 -7.4%
Galerie Marchande commissions 2.4 2.3 4.2%
Online retail 69.1 74.3 -7.1%
Revenue 167.3 215.6 -22.4%
Services 0.2 0.1 n/a
Residential 167.5 215.7 -22.3%
Revenue 14.2 36.0 -60.6%
Services 0.6 0.7 n/a
Office property 14.7 36.7 -59.9%
Total Group revenue 299.7 376.8 -20.5%

ABOUT ALTAREA COGEDIM - FR0000033219 - ALTA

Altarea Cogedim is a leading property group. As both a commercial land owner and developer, it operates in all three classes of property assets: retail, residential and offices. It has the know-how in each sector required to design, develop, commercialize and manage made-to-measure property products. By acquiring Rue du Commerce, a leader in e-commerce in France, Altarea Cogedim became the first multi-channel property company.

With operations in both France and Italy, Altarea Cogedim managed a shopping center portfolio of €4 billion at December 31, 2013. Listed in compartment A of NYSE Euronext Paris, Altarea had a market capitalization of €1.5 billion at December 31, 2013.

ALTAREA COGEDIM CONTACTS CITIGATE DEWE ROGERSON CONTACTS Agnès Villeret, Analyst and Investor Relations

Eric Dumas, Chief Financial Officer [email protected], tel : + 33 1 44 95 51 42

Catherine Leroy, Investor Relations [email protected], tel : +33 1 56 26 24 87 [email protected], tel : + 33 1 53 32 78 95 Nicolas Castex, Press Relations

[email protected], tel: + 33 1 53 32 78 88

NOTICE

This press release does not constitute an offer to sell or solicitation of an offer to purchase Altarea shares. For more detailed information concerning Altarea, please refer to the documents available on our website: www.altareacogedim.com.

This press release may contain statements that could be considered forecasts. While the Company believes such declarations are based on reasonable assumptions at the date of publication of this document, they are by nature subject to risks and uncertainties that may lead to discrepancies between actual figures and those indicated or inferred from such declarations.

7 Restated applying the consolidation standards (IFRS 10 et 11) starting January 1, 2013.

Talk to a Data Expert

Have a question? We'll get back to you promptly.