Operational success stories across all business lines
Property Development (residential and offices)
* New orders: EUR2,409 million (incl. tax)(+27.3%)
- Of which residential: EUR1,702 million (+23.7%) and 6,787 units (+16.8%)
- Of which offices: EUR707 million (+36.8%)
* Operational success stories:
- Large mixed-use projects: Delivery of the largest Grand Paris development
scheme (100,000 m2 in Massy)
- Residential: Cogedim awarded "Customer Service of the Year 2018"
- Offices: Signature of Orange and Parfums Christian Dior headquarters leases
(81,000 m2 total)
* Rental income: +4.5% to EUR144.1 million (+2.8% on a like-for-like basis)
* Disposals for a combined amount exceeding EUR130 million(1)
* Bid won: 45,000 m2 iconic project near the Swiss border (Ferney-Voltaire)
* GRESB: Altarea Cogedim no. 1 out of 194 listed real estate companies assessed
* Consolidated revenue: EUR1,314 million (+19.0%)
* Net debt: EUR2,577 million (vs. EUR2,578 million at 30 June 2017)
Unaudited figures at 30 September 2017
"After another quarter of robust growth and substantial success across all the
business lines, Altarea Cogedim is strengthening its leadership position in
urban property development. We're seizing on new growth opportunities made
possible by our unique model that brings together expertise in development on
all asset lines and an optimised allocation of our balance sheet between
investment and property development.
We remain vigilant and keep a watchful eye on any change in economic or tax
environment and we reiterate our financial targets, including a 2017 recurring
net result (FFO) greater or equal to EUR16.00 per share."
Alain Taravella, Chairman and Founder of Altarea Cogedim
(1) As Group share.
I. PROPERTY DEVELOPMENT
Property Development New Orders 30/09/2017 30/09/2016 Change
Residential EUR1,702m EUR1,376m +23.7%
Nbr of units 6,787 units 5,813 units +16.8%
Offices EUR707m EUR517m +36.8%
TOTAL (incl. tax) EUR2,409m EUR1,893m +27.3%
On 18 October, Altarea Cogedim opened Place du Grand Ouest scheme in Massy.
This 100,000 m2 mixed- use development, which is the largest development
project in the Paris Region, includes 850 residential units, a Cogedim Club
Residence (assisted housing for active seniors), a convention centre and retail
units in close proximity to the regional and highspeed railway stations in the
large-scale, mixed-use district of Massy-Atlantis. This above EUR290 million(2)
project illustrate the Group's ability to deliver complex development schemes
and consolidates its position as major urban designer of Grand Paris and
leading partner of French gateway cities.
The market is stabilising at historically high levels driven by the same
factors: low interest rates, and the attractiveness for French consumers of
real estate as both a rental investment and their main residence.
In this context, the 2018 renewal of the "Loi Pinel" for another four years and
its strengthening in high- demand areas are welcome news for the Group as more
than 99% of its pipeline (offering and future offering) is located in eligible
New orders (incl. tax) 30/09/2017 30/09/2016 Change
Institutional investors EUR413m 24% EUR291m 21% +41.9%
Individuals EUR1,289m 76% EUR1,085m 79% +18.8%
TOTAL in value EUR1,702m EUR1,376m +23.7%
Institutional investors 1,981 units 29% 1,733 units 30% +14.3%
Individuals 4,806 units 71% 4,080 units 70% +17.8%
TOTAL in units 6,787 units 5,813 units +16.8%
Preferred bidder of two "Inventons la Métrople du Grand Paris" projects
Altarea Cogedim won two major projects as part of the "Inventons la Métrople
du Grand Paris" (Inventing the Grand Paris Metropolis) call for projects. The
urban projects "L'Hospitalité" at Kremlin-Bicêtre and "Campus Habité" at
Cachan won the jury over with their ability to provide mixed-use solutions
bringing together residential, retail and services.
(2) New orders included tax, all products combined.
(3) The "high-demand areas" correspond to areas A bis, A and B1. Only 268 units
(i.e., less than 1% of the Residential pipeline) are located in area B2, and
half of those are in French Genevois, which has strong appeal.
Cogedim awarded Customer Service of the Year 2018
The "Elu service client de l'année"(4) label (Customer Service of the Year
label) annually awards companies, in every economic sector, that have the best
customer relationships and provides the highest level of customer service. For
the first time this year, the label was opened to property development and
Cogedim was awarded in recognition of its actions taken for customer
Signature of leases for the new headquarters of Orange and of Parfums Christian
During this quarter, Altarea Cogedim signed two leases for the future global
headquarters of Orange and Parfums Christian Dior. Orange will move into the
Bridge building (56,000 m2) in Issy-les-Moulineaux due for delivery in summer
2020. Parfums Christian Dior, a subsidiary of the LVMH Group, will occupy the
Kosmo building (25,000 m2) in Neuilly-sur-Seine, scheduled for delivery in
By signing the leases with these two prime occupants, the Group solidifies its
position as a leader in office property development.
Portfolio assets: growth of rental income: +4.5% to EUR144.1 million
During this quarter, Altarea Cogedim posted a +4.5% increase in its rental
income (+EUR6.2 million). On a like- for-like basis, this increase was +2.8%
and resulted particularly from a reduction in lease inducement and rent-free
period, and the growing contribution of Specialty Leasing.
Retailer sales jumped +2.4%, versus stable figures for the CNCC(5) Index.
Development: win of a new iconic project near the Swiss border
Altarea was chosen to develop a new, 45,000 m2 GLA retail scheme that offers a
innovative cultural and leisure experience featuring the first location in a
shopping centre of the Centre Pompidou (1,800 m2) and Universcience (2,500 m2).
This project, which is located at the gateway to Geneva in Ferney-Voltaire,
France, in an exceptionally affluent customer catchment area, proves the
Group's ability for designing ambitious, innovative retail projects in
partnership with local authorities.
During the quarter, the Group sold Immochan its share in the Promenade de
Flandre retail park located in Roncq, near the Belgian border. This project,
which was developed jointly with Immochan, was leased by Altarea Cogedim's
teams and sold by the Group before it was opened on 18 October 2017.
(4) The "Elu service client de l'année" (Customer Service of the Year) award,
which was created in 2007 by Viséo Customer Insight, uses mystery shoppers to
annually test the customer service quality of French companies in 42 different
economic sectors. It is the benchmark ranking for customer relationships in
(5) CNCC index at the end of September.
(6) As Group share.
In addition, in late July Altarea Cogedim sold the L'Aubette real estate
complex to Deka Immobilien GmbH. This asset, which consists of 5,700 m2 of
retail and 2,800 m2 of tourism residences, stands in Strasbourg's main retail
area, near Place Kleber.
III. CSR PERFORMANCE
GRESB: Altarea Cogedim no. 1 out of 194 listed real estate companies assessed
GRESB (Global Real Estate Sustainability Benchmark), a leading international
ranking, annually assesses the CSR performance of real estate companies around
the world. In 2017 it assessed 823 companies and funds, of which 194 were
In its fourth year of participating, Altarea Cogedim reinforced its status as a
leader in the CSR area and for the first time took the top spot in the world
among listed companies (number 1 of companies in Europe and number 1 of
"retail" companies worldwide). With a score of 96/100, the Group ranked second
in the world, all categories combined (listed and unlisted companies).
Consolidated revenue at 30 September 2017 (9 months): EUR1,313.6 million
In EUR million Q1 2017 Q2 2017 Q3 2017 9M 2017
Net debt (bank and bond) was stable at EUR2,577 million at 30 September 2017
compared to EUR2,578 million at 30 June 2017.
2017 outlook confirmed
- Recurring net result (FFO): ≥ EUR16.0 /share (+18%)
- Dividend: ≥ EUR11.5 /share
- LTV target: between 40% and 45%
ABOUT ALTAREA COGEDIM - FR0000033219 - ALTA
Altarea Cogedim is the leading owner developer in French Gateway cities. As
both a commercial landowner 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, commercialise and manage made-to-measure
property products. With operations in France, Spain and Italy, Altarea Cogedim
managed a shopping centre portfolio worth EUR4.6 billion at 30 June 2017.
Listed on compartment A of Euronext Paris, Altarea had a market capitalisation
of EUR3.2 billion at 30 September 2017.
Offices backlog: consists of revenue (excl. tax) from notarised sales not yet
recognised according to percentage of completion, new orders pending notarised
deeds (signed property development contracts (PDCs)) and fees to be received
from third parties on signed contracts.
Residential backlog: consists of revenues excluding tax from notarised sales to
be recognised according to percentage of completion and individual and block
reservations to be notarised.
Retailer sales: change in retailer revenue with the same locations over the
first nine months of the year, in France. Excluding assets being redeveloped.
Residential revenue (excl. tax): revenues recognised according to the
percentage-of-completion method in accordance with IAS 18. The percentage of
completion is calculated according to the stage of construction excluding
CNCC (Conseil National des Centres Commerciaux): The French federation of
shopping centres. French professional organisation of all shopping centre
industry professionals, which publishes an index of revenue earned in the
shopping centres of the member companies.
FFO (Funds From Operations, or recurring net result): net result excluding
changes in value, calculated costs, transaction fees and changes in deferred
GRESB (Global Real Estate Sustainability Benchmark): reference ranking which
evaluates the annual CSR performance of property companies worldwide (823
companies and funds assessed in 2017).
Loan-to-Value (LTV): debt ratio. Consolidated net debt / Consolidated market
value of Group assets.
Residential properties for sale: units available for sale (in value or number
Property development new orders (residential and offices): value (incl. tax) of
residential reservations and office orders (signed property development and
off-plan contracts and delegated project management fees capitalised and
AltaFund arbitrage items) signed over a period.
Residential pipeline: number of units of property for sale and in the
Future offering (residential): land portfolio consisting of controlled projects
(through preliminary sales agreements, almost exclusively in unilateral form)
which have not yet begun. (incl. taxes value when expressed in euros).
Residential reservations: reservations net of cancellations, with Histoire &
Patrimoine reservations accounted for in proportion to
the Group share of ownership (56%). (EUR incl. tax when expressed as a
Rental income on a like-for-like basis: rental income excluding assets
delivered, purchased or sold during the period or the previous period, and
excluding asset being redeveloped.
CSR: Corporate Social Responsibility. All actions undertaken by companies, on a
voluntary basis, to take into account the social and environmental concerns
related to their activities and their interactions with other actors.
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:
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.
ALTAREA COGEDIM 9 - month revenue and business activity