Altareit : HY 2019 results - Press release & Business review

Press release

2019 half-year resultsParis, August 1st2019, 5:45 pm

Revenues: +17,5%

Strong growth in every business lines

Success in Business Property and Large Mixed-use projects

Pipeline

- Large Mixed-use projects: 11 projects underway (representing 920,000 m²) Winning of Simonettes tender in Champigny-sur-Marne (94) for 56,000 m²

- Property development:Acquisition of 50% of Woodeum, French leader in wooden residential property development

Residential: a winning strategy, strong growth in Residential sales

-	New orders:	€1,482 million incl. tax (+16%) and 5,336 units (+2%)
-	Revenues1:	€899 million (+12.6%)
-	Pipeline	€12,4 billion (+10%), 48 months of revenues

Business Property: sourcing of new investments projects and sustained activity in the regions

• - New orders:

  €186 million including tax, including EM Lyon Business School project won in June
  €267 million (+39.1%)
  €746 million
  -	Revenues:	€1,167 million (+17.5%)
  -	Recurring operating income2:	€74,5 million (-27%)
  -	Net income, Group share:	€22 million
  -	Gearing3:	0.52x (vs 0.48x at 31 December 2018)
  -

  Results

• - Revenues:

• - Backlog

BBB rating (outlook stable) confirmed by S&P Global in July 2019

Paris, August 1st2019, 5:45 pm. Following review by the Supervisory Board, Management approved the H1 2019 consolidated financialstatements. Limited review procedures have been carried out. The Auditors' certification report isbeing issued with no reservations.

ABOUT ALTAREIT - FR0000039216 - AREIT

A 99.85% subsidiary of the Altarea Cogedim Group, Altareit is a pure player in property development in France. Thanks to its unique multi-product expertise, Altareit is a leader in in mixed-use projects in French gateway cities. Altareit has the know-how in each sector required to design, develop, commercialise and manage made-to-measure property products. Altareit is listed in compartment B of Euronext Paris.

FINANCE CONTACTS

Eric Dumas, Chief Financial [e-mail], Tel: + 33 1 44 95 51 42

Catherine Leroy, Investor [e-mail], Tel: [phone]

DISCLAIMER

This press release does not constitute an offer to sell or solicitation of an offer to purchase Altareit shares. For more detailed information concerning Altareit, please refer to the documents available on our websitewww.altareit.comorwww.altareacogedim.com/Finance/regulatoryinformation/Altareit.. This press release may contain some forward-looking statements. 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.

• 1Revenue by % of completion and external services.

• 2 Funds From Operations (FFO): net profit excluding changes in value, calculated expenses, transaction fees and changes in differed tax. Group share..

• 3 Net bank and bond debt / consolidated shareholders' equity.

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BUSINESS REVIEW

30 JUNE 2019

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ALTAREIT

CONTENTS

1.1 A PURE PLAYER IN PROPERTY DEVELOPMENT IN FRANCE ........................................... 4

• 1.1.1 A unique model ............................................................................................................................................... 4

• 1.1.2 2019 half-year highlights ................................................................................................................................. 5

1.2 BUSINESS .............................................................................................................................. 6

• 1.2.1 Residential ...................................................................................................................................................... 6

• 1.2.2 Business property ........................................................................................................................................... 9

1.3 CONSOLIDATED RESULTS ................................................................................................. 12

• 1.3.1 Impacts of the application of IFRS 16 and IAS 23 ......................................................................................... 12

• 1.3.2 Strong growth in revenue (up by 17.5%) ....................................................................................................... 13

1.4 FINANCIAL RESOURCES .................................................................................................... 15

1.1

A pure player in property development in France

1.1.1

A unique model

A 99.85% subsidiary of the Altarea Cogedim Group, Altareit offers a skills platform covering all asset classes (residential, retail, offices, logistics, hotels, serviced residences, etc.), in order to respond effectively and comprehensively to the challenges of urban transformation4.

Residential: Altareit became the 2ndlargest French residential developer in 2018.

Office property: Altareit has developed a unique model that enables it to operate in a highly significant manner and with limited risk on the office property market:

• • as a medium-term developer-investor in assets with a srontg potential (prime location) to be redeveloped pending sale (via AltaFund5),

• •as a property developer6for external customers with a particularly strong position on the turnkey users market.

A huge pipeline

Metropolisation is the main underlying trend in real estate markets. The gathering of populations, businesses and wealth within large metropolitan areas is a complex phenomenon that is redrawing regional geography.

Communities formerly located on the outskirts of a main city are facing multiple challenges: social inequalities, affordable housing, transport, pollution, etc. Their property infrastructure is becoming outdated and needs to be reshaped to meet the challenges of growing population density.

By providing urban solutions to help these areas in their transformation, Altareit contributes to recreating the urban bond between the periphery and the heart of greater cities. Virtually all projects in the portfolio relate to rehabilitations or redevelopments: industrial sites, retail spaces, commercial complexes, residential buildings, low-density housing, etc.

At the end of June 2019, Altareit has secured a huge portfolio of projects with more than 4.1 million m² under developmentwith a potential value of nearly €16.6 billion.

Leadership in large mixed-use projects

The Group has also established itself as the leader in large mixed-use projects and manages 11 projects with a potentialvalue of approximately €3.5 billion as of June 30, 2019.Group has also established itself as the leader in large mixed projects andmanages 11 transactions with a potential value of approximately €3.5

Large projects at 100%	Total surface	Residential	Serviced	Cinemas	Public	Estimated
area (m²)(a)	(units)	Residences	infrastructure	delivery
Aerospace (Toulouse)	64,000	790	-	x	x	x	x	-	2019-2021
Gif sur Yvette	68,000	960	-	-	x	-	-	x	2019-2021
Joia Meridia (Nice)	47,000	630	x	-	x	-	x	-	2020-2023
Coeur de Ville (Bezons)	67,000	730	-	-	x	x	-	-	2021
Belvédère (Bordeaux)	140,000	1,230	x	x	x	-	x	x	2021-2024
Fischer (Strasbourg)	37,000	490	x	-	x	x	-	x	2021-2024
La Place (Bobigny)	104,000	1,270	x	x	x	x	-	x	2021-2024
Cœur de Ville (Issy les M.)	105,000	630	x	x	x	x	x	x	2022
Quartier Guillaumet (Toulouse)	101,000	1,200	x	x	x	-	-	-	2022-2023
Les Simonettes (Champigny/Marne)	56,000	450	-	x	x	-	-	-	2022-2023
Quartier des Gassets (Val d'Europe)(b)	131,000	nd	x	x	x	-	x	-	2024
Total (11 projects)	920,000
(a)Floor area.
(b)Detailed planning under way.

Office

Retail

>9,000

billion as of June 30, 2019.

Leisure/Hotels

4The Group focuses its development on 12 major French regions: Greater Paris, Métropole Nice Côte d'Azur, Marseille-Aix-Toulon, Toulouse Métropole, Bordeaux Métropole, Greater Lyon, Grenoble-Annecy, Eurométropole de Strasbourg, Nantes Métropole, Métropole Européenne de Lille, Montpellier Méditerranée Métropole, Métropole de Rennes.

5AltaFund is a discretionary investment fund, created in 2011, of which Altareit is one of the contributors alongside leading institutional investors.6This development activity does not present any commercial risk: Altareit carries only a measured amount of technical risk.

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1.1.22019 half-year highlights

Major mixed-use projects

As the French leader in terms of large mixed-use projects, the Group reconfirmed its position in early 2019 by winning the competition to deliver a mixed-use project of 56,000 m² in theLes Simonettesneighbourhood of Champigny-sur-Marne (Department 94). Located next to future line 15 of theGrand Paris Expressmetro, this development will include 28,000 m² of housing, 900 m² of shops and services, 12,000 m² allocated to tertiary activities and 15,000 m² dedicated to other activities, including 9,000 m² for an artisanal centre of the "Compagnons du Tour de France".

During the first half of 2019, there was significant progress in IssyCœur de Ville project:the launch in june of the construction works of the future 'EcoQuartier' and the enthusiasm for this project is evident for Residential (610 units over time), which is selling very well, including to local people.

Residential: €1,482 million in new orders (+16%)

As of June 30th, 2019, the Group recorded very strong sales results and continued to gain market share in a slightly decreasing market over the year. Housing reservations increased by +16% in value year-on-year to reach€1,482billion. Reserved units increased7by +2% to 5,336 units ordered. This performance confirms the relevance of the Group's offer located exclusively in high-demand areas eligible for the Pinel scheme8.

During the first half of the year, the Group won a number of iconic projects thanks to its multi-brand platform:

• • Cogedim and Histoire & Patrimoine jointly won two majorrestucturing projects: Tours Aillaud ("Cloud Towers") at the foot of the La Défense neighbourhood (1,000 units) and the former IBM campus in Gaude overlooking the city of Nice (950 units);

• • Cogedim and Pitch Promotion distinguished themselves bywinning 5 of the 23 projects put out to tender during the second edition of the "Inventons la métropole du Grand Paris" competition.

In terms of development, the Residential pipeline (offering and land portfolio) amounted to €12.4 billion (an increase of10% compared to end-2018).

Business property: refilling the pipeline

During the first half of the year, Altareit :

• • delivered Kosmo, the futureParfums Christian Diorhead office in Neuilly-sur-Seine, recognised as the "Best Redeveloped Building" by the MIPIM Award;

• • won the Early Makers Hub competition for the EM Lyon

Business School located in the heart of the Gerland neighbourhood. This project, with delivery planned for 2022,

7Including Histoire & Patrimoine (at 100%) and Sévérini, a developer of new housing active mainly in Nouvelle Aquitaine, in which the Group acquired a 85% stake on January 4th, 2019.

• 8The "high-demand areas" correspond to areas A bis, A and B1.

• 9GRESB (Global Real Estate Sustainability Benchmark), a leading international ranking, annually assesses the CSR performance of real estate companies around the world. In 2018 it assessed 874 companies and funds, 37 of which were listed retail companies.

will meet the highest environmental standards and is expected to obtain HQE Excellent and BREEAM Very Good certifications;

Thus, at end-June 2019, the Group had a portfolio of 62 projects (of which 29 under construction) representing apotential value of €4 billion.

Credit rating confirmed: BBB

In July 2019, S&P Global confirmed the Investment Grade, BBB rating, with a stable outlook, assigned at the time of its first rating in June 2018.

S&P Global highlights Altareit's strong positioning, as aproperty developer in both residential and office segments (the company namely owns Cogedim), in a market where fundamentals and trends are credit supportive. The ratingagency also underlines the company's prudent financialdiscipline in terms of commitments.

Extra-financial performance

Number 1 in the GRESB ranking9

In its 5thyear of participating in the GRESB, Altarea Cogedim Group, which Altareit is a 99.85% subsidiary, has reasserted its leader status and been ranked N°1 listed company in France (all sectors combined) and N°2 of all listed Retail companies worldwide.

"Re-elected Best Customer Service of the Year"10

For the 2ndyear in a row, Cogedim received this award that illustrates "the Cogedim difference": a state of mind, a unique way of designing housing and exacting quality in the services and relationships offered to customers.

10The "Élu 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 France. Property developers were included for the second year.