Altarea : 2021 annual results

Share on:

2021 annual results

22 Feb 2022

Finance

• Strong growth ahead of Primonial acquisition
• Guidance exceeded: FFO¹ Group share +14.8%

[1] Funds from operations (FFO): net profit excluding changes in value, calculated expenses, transaction fees and changes in differed tax.

"As Altarea prepares to write a new chapter in its history with the acquisition of Primonial, I would like to send a congratulatory message to all our teams who have once again demonstrated their commitment by going above and beyond the objectives. Our Group recorded growth in FFO of +14.8% compared to a guidance of +10%. This performance is even more remarkable given that it was achieved in a difficult context marked by both the persistence of the pandemic and an unstable economic environment.

In addition to the financial performance, Altarea has implemented a transformation strategy which is highly value-creating over the past two years.

First of all, our operational organisation has been strengthened and we have a comprehensive offering enabling us to systematically address the urban transformation market. Our regional coverage has been extended to adapt to new demographic trends, an ambitious roadmap has been assigned to each of our brands. More than ever, Altarea is a leader in the huge urban transformation market.

We then implemented a retail asset management strategy with an increase in the volume of assets managed on behalf of major partners. After having heavily suffered from the sanitary crisis, the retail asset class is rebecoming attractive and presents the prospects of a particularly strong recovery, pending of course on the evolution of sanitary situation.

Finally, our model has been revised to meet our environmental and societal responsibilities. As a leader in urban transformation, Altarea is implementing solutions that will make our cities more sober, more inclusive and, and above all, more pleasant to live in because our ambition is to shape today the city of tomorrow.

In a macroeconomic and political context full of uncertainties at the start of this year, real estate is the ultimate safe haven, especially in an inflationary context. Altarea, with its diversified business model, faces the year 2022 with confidence.

The operating result of the Development and Retail activities is expected to increase significantly in 2022 compared to both 2021 and 2019. This outlook includes a strong increase in Residential results, the impact of retail partnerships and a return to normal rental collection, subject to the evolution of sanitary situation. In total, with the integration of Primonial from its acquisition date, the Group expects a significant increase in its FFO Group share in 2022, despite the rapid rise of Corporate tax. More precised increase per share will be announced at the time of the half-year results, including Primonial for the first time.

With the forthcoming acquisition of Primonial, Altarea's business model should undergo a profound change, becoming less capital intensive and more recurrent. The Group reiterates its growth ambition for 2025 to reach a fully diluted FFO/share of between EUR 18 and 20. This perspective will be developed at an Investor Day scheduled for next autumn where Altarea will present its new operational organisation and its new growth model.

Altarea's prospects are structurally strong because tomorrow they will sit on positive momentum of both urban transformation and real estate investment & saving markets which are immense and dynamic. "

Alain Taravella, Chairman and Founder of Altarea

To secure its communication, contents are certified on the blockchain using Wiztrust