Earnings Release • Nov 7, 2011
Earnings Release
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Q3 2011 Revenues and business performance
Strengthening in all businesses of the Group
• Revenues up +44% to €78m
Unaudited figures at 30 September 2011
Alain Taravella, Chairman and founder of Altarea Cogedim
"More than ever the strength of Altarea Cogedim is demonstrated by the growth in each of our business lines. Innovation remains a priority for the Group and we have demonstrated this by launching a takeover bid for RueduCommerce, which will make us a leading multi-channel retail real estate company. Despite the current economic environment the Group is still on track to hit its target of a recurring net profit growth of well above 10% over the full year 2011".
Tenant revenues have risen slightly (+1.0%1 ) and rental income remains stable at €121.1m in a context of slower consumer spending.
| Tenant revenues growth* | "Like-for-like" |
|---|---|
| Retail Parks et Family Villages | 3.2% |
| Shopping Centres | 0.0% |
| All | 1.0% |
| CNCC index | -0.3% |
* From 1 January to 31 August – France only
Rental income is stable and reflects the active management on the asset portfolio.
| (In €m) | |
|---|---|
| Net rental income 30/09/2010 | 121.6 |
| Shopping centres opened | 6.6 |
| Net impact of disposals | -10.9 |
| Net impact of acquisitions | 4.3 |
| Refurbishments | -1.2 |
| Like-for-like change | 0.7 |
| Net rental income 30/09/11 | 121.1 |
The Group has an €825m pipeline of shopping centre projects. Almost 85% of projects in the pipeline are located in demographically dynamic areas (Ile-de-France and the South East of France).
The commercial success of the Villeneuve-la-Garenne operation, which started in September 2011, has been confirmed with over 80 leases signed. The regional shopping centre (86,000 m²) is now 60% pre-let, 2 years before the opening date.
Sales and re-letting operations are in line with the road map, particularly for Cap 3000.
The 40% increase in percentage-of-completion revenues (€537m excl. VAT) reflects market shares gained between 2008 and 2011 by Cogedim, with an increase from 2.5% to 6% of market shares by value in France during this period.
1 Cumulative LFL sales over 8 months
Reservations remained stable at €787m (up +3%) including VAT (excluding exceptional impact of Laennec) despite uncertainties in terms of economic and fiscal environment. Take-up rates remain high (19% in September) and were driven by growth in buy-to-let investors and block sales.
| € millions | 30/09/2011 | 30/09/2010 | % change |
|---|---|---|---|
| Net reservations (excluding Laennec) | 787 | 765 | +3% |
| Laennec | 53 | 235 | N/A |
| Net reservations (including Laennec) | 840 | 1,000 | -16% |
| Percentage-of-completion revenues (excl. VAT) |
537.0 | 382.3 | +40% |
| Backlog5 (excl. VAT) |
1,570 | 1,3956 | +13% |
| € millions | 30/09/2011 | 31/12/2010 | % change |
|---|---|---|---|
| Properties for sale | 511 | 403 | +27% |
| Future offer (land portfolio) | 2,875 | 2,095 | +37% |
| Residential property pipeline7 | 3,386 | 2,498 | +36% |
| Months of activity | 36 | 24 | +50% |
At a time in which the sector is becoming increasingly uncertain, Cogedim benefits from a strong financial visibility (backlog of €1.6 billion excl. VAT as of 30 September, or 26 months) and from a pipeline8 allowing to meet market demand and to remain competitive.
Cogedim launched 13 new housing programmes during Q3. Including the operations due for launch in Q4, the Group will have launched a total of 86 programmes during 2011 for a total of 5 150 units.
The strong growth in revenues (+44% to €78m) reflects the completion of several programmes managed during the preceding cycle (Saint-Cloud, Aix-en-Provence) as well as contributions from several regional projects, particularly in the hotel sector (Marseilles and Nantes).
The Group has also gained contacts with major users for the development of tailor-made operations in the region of Paris.
| € millions | 30/09/2011 | 30/09/2010 | % change |
|---|---|---|---|
| Take-up (incl. VAT) | 88 | 210 | -58% |
| Deliveries (net floor area, m²) | 164,900 | 44,000 | x3.75 |
| Backlog (excl. VAT) | 164 | 1949 | -15% |
| Percentage-of-completion revenues (excl. VAT) |
78.4 | 54.4 | 44% |
2 Not including Laennec
9 As of 31 December 2010
3 Not including Laennec
4 Not including Laennec
5 The backlog comprises revenues excluding VAT from notarised sales to be recognised according to the percentage-of-completion method and reservations to be notarised. Backlog at 30 September 2011 represents 26 months of activity by comparison with backlog at end of December 2010 representing 29 months of activity.
6 Data as of 31 December 2010
7 Potential revenues from projects for which an option is held on the land + potential revenues including VAT on properties for sale
8 €3.4 billion incl. VAT, or 36 months of activity (€0.5 billion of assets for sale and a €2.9 billion property portfolio in the form of unilateral agreements, almost making up the whole)
| 30/09/2011 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| In thousands of Euros | Q1 2011 | Q2 2011 | Q3 2011 | Total | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | Total | vs 30/09/2010 |
| Rental income | 40,779 | 39,975 | 40,381 | 121,135 | 40,585 | 40,283 | 40,700 | 42,828 | 164,396 | -0.4% |
| Services to third parties | 3,003 | 2,873 | 3,205 | 9,081 | 1,956 | 2,043 | 2,004 | 4,428 | 10,431 | 51.3% |
| Shopping centers | 43,782 | 42,848 | 43,586 | 130,216 | 42,54 | 42,325 | 42,705 | 47,257 | 174,827 | 2.1% |
| Property development for third parties | ||||||||||
| Revenues | 183,578 | 211,038 | 216,758 | 611,374 | 143,972 | 140,095 | 145,637 | 212,884 | 642,588 | 42.3% |
| Services to third parties | 1,611 | 1,691 | 1,412 | 4,713 | 2,343 | 4,443 | 3,089 | 4,430 | 14,304 | -52.3% |
| Property development for third parties | 185,189 | 212,729 | 218,170 | 616,088 | 146,315 | 144,538 | 148,725 | 217,314 | 656,893 | 40.2% |
| Residential property | ||||||||||
| Revenues | 164,413 | 179,562 | 192,996 | 536,972 | 122,644 | 126,144 | 133,502 | 195,121 | 577,411 | 40.5% |
| Services to third parties | 353 | 200 | 145 | 698 | 379 | 1,946 | 556 | 778 | 3,659 | -75.8% |
| Residential property | 164,766 | 179,762 | 193,141 | 537,670 | 123,023 | 128,089 | 134,058 | 195,899 | 581,069 | 39.6% |
| Commercial property | ||||||||||
| Revenues | 19,165 | 31,476 | 23,762 | 74,402 | 21,328 | 13,952 | 12,135 | 17,763 | 65,178 | 56.9% |
| Services to third parties | 1,257 | 1,491 | 1,267 | 4,015 | 1,964 | 2,497 | 2,532 | 3,652 | 10,645 | -42.6% |
| Commercial property | 20,423 | 32,967 | 25,029 | 78,418 | 23,292 | 16,449 | 14,667 | 21,415 | 75,823 | 44.1% |
| Recurring activities | 228,971 | 255,577 | 261,756 | 746,304 | 188,856 | 186,863 | 191,430 | 264,571 | 831,719 | 31.6% |
| Revenues | 1,432 | 46 | 39 | 1,517 | 11,758 | 4,586 | 2,973 | 9,355 | 28,671 | -92.1% |
| Services to third parties | 147 | 98 | 2,463 | 2,708 | 901 | 1,108 | 256 | 873 | 3,138 | 19.5% |
| Ron-recurring activities | 1,579 | 144 | 2,501 | 4,224 | 12,659 | 5,694 | 3,228 | 10,228 | 31,809 | -80.4% |
| Total revenues | 230,550 | 255,721 | 264,257 | 750,528 | 201,515 | 192,557 | 194,658 | 274,799 | 863,529 | 27.5% |
Net bank debt stood at €2,221m as of 30 September 2011 compared to €2,055m as of 31 December 2010, related to the investments in shopping centres and the financing of residential and office development.
Altarea Cogedim is a leading retail property investment and development group active in all three main property markets: retail, office, and residential. It has the skills and experience to effectively design, develop, sell, and manage customised property assets in each of these markets. The Group's risk exposure is aligned with its long-term vision, and it creates value by designing and building attractive assets and by seizing profitable opportunities in the property sector.
Altarea Cogedim operates in France and Italy and had a property portfolio worth €2.7 billion at 30 June 2011. Altarea is listed in Compartment A of NYSE Euronext Paris and had a market capitalisation of €1.3 billion at end-September 2011.
| ALTAREA COGEDIM CONTACTS | CITIGATE DEWE ROGERSON CONTACTS |
|---|---|
| Eric Dumas, Chief Financial Officer [email protected], tel: + 33 1 44 95 51 42 |
Yoann Nguyen, Analyst and investor relations [email protected], tel: + 33 1 53 32 84 76 |
| Nathalie Bardin, Head of Communications | Aliénor Miens, Press relations |
nbardin@altareacogedim, tel: +33 1 56 26 25 36
[email protected], tel: + 33 1 53 32 84 77
This press release shall not constitute an offer to sell or the solicitation of an offer to buy Altarea shares. For more information about Altarea, please refer to the documents available on the Group's website, www.altareacogedim.com.
This press release may contain forward-looking information. Although the Group feels that this information is based on reasonable assumptions at the time this press release was issued, this information is subject to inherent risks and uncertainties that may cause actual results to differ materially from those stated in or implied by this forward-looking information.
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