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 Nov 6, 2013

1101_10-q_2013-11-06_90fac47e-089f-4640-ac6b-2697419e4b45.pdf

Earnings Release

Open in Viewer

Opens in native device viewer

Q3 2013 revenue and business activity

Consolidated revenue up 4.4% to €1.1388 billion as of September 30, 2013

Retail

  • Shopping centers: Stable performance of tenants' revenue and growth in rental income on a same-floorarea basis (+4.3% in France)
  • E-commerce : 2.8% increase in revenue

Residential

  • Reservations: Stable in value terms (€598 million), +4% by volume (2,146 lots sold)
  • Revenue: €652 million (-1.8%)
  • Backlog: €1.3 billion (excl. tax), i.e., 16 months of business

Office property

Strong growth for percentage-of-completion revenues: +42.2% to €117.4 million

Unaudited figures at September 30, 2013

I. BUSINESS

1. RETAIL: Stable performance of tenants' revenue and growth in rental income in France (+4.3%1 )

Shopping centers

Tenants' revenue

In France, tenants' revenue remained stable (-0.2%2 ) in a context of declining consumption (CNCC Index down 1.3% at August 31, 2013).

Rental income

(In € millions)
2012 9-month published rental income 120.0
Net impact of disposals3 -6.7 -5.6%
Delivery effect4 4.0 +3.3%
Full consolidation of Cap 30005 17.5 +14.5%
Shopping centers undergoing
redevelopment6
-1.5 -1.2%
Like-for-like change 2.1 +1.8%
2013 9-month rental income 135.4 +12.8%

The 12.8% growth in rental income year-on-year was particularly due to full consolidation of Cap 3000, now 100% controlled by the group.

Rents increased 4.3% like-for-like in France7 , while rents for international portfolio assets dropped 5.1%.

E-commerce

Rue du Commerce confirmed its positioning among leading e-commerce sites in France, with an average of 5.6 million unique visitors per month since the beginning of the year8 .

Revenue generated since the beginning of 2013 was up 2.8% against a backdrop of flat sales on major retail sites (iCE 100 Index9 up 1% since the beginning of 2013).

In value terms (in €millions) 9/30/2013 Change
Distribution business volume 195.4 +1.7%
Galerie Marchande business volume 84.9 +4.6%
Total business volume 280.3 +5.1%
Rue du Commerce revenue 210.3 +2.8%

1 Excluding impact of deliveries, extensions and disposals, growth measured on the basis of like-for-like rental value in Q3 2012.

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

3 Including the March disposal of the only owned office property asset, developed together with the Okabé shopping center. The shopping center remains in the Group's portfolio.

4 Including income generated by the Costières Sud Family Village® in Nîmes, inaugurated in early April 2013.

5 Impact of the full consolidation of Cap 3000 (initially consolidated using the proportionate consolidation method).

6 Including Aix-en-Provence, where extension works and the redevelopment of the shopping gallery began in August 2013.

7 Excluding impact of deliveries, extensions and disposals, growth measured on the basis of like-for-like rental value in Q3 2012.

8Médiamétrie//NetRating data, January-August 2013 average.

9 FEVAD iCE 100 survey (like-for-like growth of leading sites).

2. RESIDENTIAL: Stable business activity and percentage-of-completion revenues

Reservations

In volume (number of lots) 9/30/2013 9/30/2012 Change
Sales to institutional investors 552 537 +3%
Sales to individuals 1,594 1,522 +5%
Total reservations in number of lots 2,146 lots 2,059 lots +4%
Total reservations in value terms €598 million €599 million -0%

Business activity held steady (+4% in volume, 0% in value terms) for all product categories and all investor profiles.

Cogedim is continuing its strategy of enhancing its entry-level and midscale offering, as these ranges account for 76% of reservations in value terms.

Percentage-of-completion revenues

In € million excluding tax 9/30/2013 9/30/2012 Change
Percentage-of-completion revenues 651.9 663.5 -1.8%

Backlog & pipeline

In € million including tax 9/30/2013 6/30/2013 Change
Backlog 10 1,279 1,338 -4.4%
Number of months of sales 16 months 17 months
Pipeline 11 4,327 3,930 +10%
Properties for sale 761 796
Property assets 3,566 3,134

3. OFFICES: Business recovery

In € million including tax 9/30/2013 9/30/2012 Change
Percentage-of-completion revenues 117.4 82.6 +42.2%

10The residential backlog comprises revenues excluding VAT from notarized sales to be recognized on a percentage-of-completion basis and reservations to be notarized.

11The pipeline consists of tax-inclusive revenues from properties for sale and the land bank, which includes all plots on which contracts (generally unilateral) have been signed.

II. FINANCIAL POSITION

Net bank debt came to €2.223 billion at September 30, 2013.

III. ALTAREA COGEDIM CUMULATIVE Q3 2013 REVENUE

In € millions 9/30/2013 9/30/2012 2013/2012
"Brick-and-mortar" retail: 159.2 139.7 14.0%
Rental income 135.4 120.0 12.8%
Services and other 23.8 19.7 21.1%
"Online" retail 210.3 204.5 2.8%
Residential 652.0 664.0 -1.8%
Office property 117.4 82.6 42.2%
Total Group revenue 1,138.8 1,090.7 4.4%

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, 2012. Listed in compartment A of the NYSE Euronext Paris, Altarea had a market capitalization of €1.4 billion at September 30, 2013.

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

Catherine Leroy, Analyst and Investor Relations [email protected], tel: +33 1 56 26 24 87

ALTAREA COGEDIM CONTACTS CITIGATE DEWE ROGERSON CONTACTS

Agnès Villeret, Analyst and Investor Relations [email protected], tel: + 33 1 53 32 78 95

Servane Taslé, Press relations [email protected], tel: + 33 1 53 32 78 94

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 declarations in the nature of 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 which may lead to differences between real figures and those indicated or inferred from such declarations.

Talk to a Data Expert

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