Altareit : HY 2022 results - Press release & Business review

Press release	Half-year results 2022
	Paris, 28 July 2022, 5.45 p.m.

Residential: supply and new orders up, increase in construction costs absorbed

New orders: +9% by value (+2% by volume)

Operating margin1 maintained at 7.2%

Operating income: €82.6 m

Business property: success across all ranges and regions

Leading Business property developer (pipeline of 63 projects)

Success in all markets and ramp-up in Regions

Operating income: €12.0 m

Consolidated results
- Revenue2:	€1,269m (-4.2%)
- Recurring operating income3:	€94.0m (+5.8%)
- Net income, Group share4:	€57.9m (+6.9%)
- Net debt5:	€267 m (vs net cash €107 m at end-2021)
- Gearing6:	0.2x (vs -0.10x at end-2021)

Paris, 28 July 2022, 5.45 p.m. Following review by the Supervisory Board, the Management has approved the consolidated financial statements for the first half-year 2022. Limited review procedures have been completed. The Statutory Auditors' reports on the half- year financial information were issued without reservations.

ABOUT ALTAREIT - FR0000039216 - AREIT

A 99.85% subsidiary of the Altarea Group, Altareit is a pure player in property development in France. Thanks to its unique multi-product expertise, Altareit is a pioneer 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 real estate products. Altareit is listed in Compartment A of Euronext Paris.

FINANCE CONTACTS

Eric Dumas, Chief Financial Officer Pierre Perrodin, Deputy Chief Financial Officer [e-mail], tel: + 33 (0)1 44 95 51 42 [e-mail], tel: + 33 (0)6 43 34 57 13

DISCLAIMER

This press release does not constitute an offer to sell or solicitation of an offer to purchase Altareit shares. If you would like more detailed information about Altareit, please refer to the documents available on our website. www.altareit.com. This press release may contain 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.

1 Operating income as a percentage of revenue by percentage of completion.

2 Revenue by % of completion basis (including external services).

3 Corresponds to the operating income in the Funds From Operations (FFO) column of the analytical income statement.

4 Corresponds to the net income in the Funds From Operations (FFO) column of the analytical income statement, Group share. 5 Net bank and bond debt.

6 Net bond and bank debt as a proportion of consolidated equity.

ALTAREIT HALF-YEAR RESULTS 2022 1

BUSINESS REVIEW

AT 30 JUNE 2022

1. A PURE PLAYER IN PROPERTY DEVELOPMENT IN FRANCE	3
1.1.	Residential ......................................................................................................................................................	4
1.2	Business property ...........................................................................................................................................	7
2. CONSOLIDATED RESULTS	10
3. FINANCIAL RESOURCES	12

ALTAREIT - HALF-YEAR RESULTS 2022 2

1. A pure player in property development in France

A resilient model

Altareit, a 99.85% subsidiary of Altarea Group, offers a platform of skills covering all asset classes (residential, offices, retail, logistics, hotels, serviced residences, etc.). This focused positioning means it can deliver effective and comprehensive solutions to the issues of urban transformation.

Residential: Altareit is now the second-biggest developer in France7, structured to be able to reach a potential of 18,000 units sold per year.

Business property: Altareit has developed a unique model that enables it to operate in a highly significant manner and with moderate risk on this market:

• as a property developer8 for external customers with a particularly strong position on the turnkey users market;
• as a medium-termdeveloper-investor in assets with a strong potential (prime location) to be redeveloped pending sale (via AltaFund9).

1. Source: Ranking of Developers 2021 carried out by Innovapresse which analyses and compares the volumes of activity, the number of housing units or square meters produced, or the equity and debt of the main property developers. It provides detailed figures, developer by developer, and outlines their projects and strategies.
2. This development activity does not present any commercial risk: Altareit carries only a measured amount of technical risk.

A unique positioning

Over the years, the Group has built up a unique platform of in order to respond effectively and comprehensively to the challenges of urban transformation :

• concentration of population, business and wealth in the big metropolises, which are currently expanding to absorb surrounding areas, which will constitute new real estate markets;
• the inadequacy of real estate infrastructures, which must be rethought to meet the challenges of densification. These long-term trends are at the root of the large mixed-use projects for urban redevelopment, a particularly dynamic segment of the market. As of 30 June 2022, Altareit managed 15 major mixed-use projects (for nearly 910,000 m²) with a potential value of €4.0 billion.

On top of these long-term trends we also have to deal with an environmental emergency that is transforming what citizens expect from property (energy performance, mobility, reversibility, mixed-use, new forms of consumption, etc.).

All Altareit's know-how is focused on developing mixed-use real estate products that integrate these issues into an economic equation, giving it access to a huge market: urban transformation.

With nearly 820 projects at the end of June 2022, Altareit has secured a huge portfolio of projects of over 4.1 million m² with

a potential value of nearly €18.3 billion in all product

categories10.

Primonial

Given the non-completion of the Primonial acquisition, Alta percier, indirect subsidiary of the Company were cited before the Paris Commercial Court by the different shareholder groups in New Primonial Holding 2 (parent of the Primonial Group) seeking compensation for their alleged damages. Altarea and Alta Percier plan to contest the complaints made, which they consider without merit, and to take all legal measures to, first, defend their legitimate interests and, second, hold Primonial shareholders liable and obtain compensation for the damages incurred by the Group. To this end, on 20 June 2022, Altarea and Alta Percier filed claims in response in a voluntary intervention before the Paris Commercial Court.

At the date of this press release, legal procedure is on-going.

1. AltaFund is a discretionary investment fund, created in 2011, of which Altareit is one of the contributors alongside leading institutional investors.
2. Potential value = market value on delivery date. Residential: offer for sale + portfolio incl. VAT. Business property: potential market value excl. transfer duties on the date of disposal for investment projects (at 100%), amount excl. VAT of off-plan sales/PDCs for the other development programmes (at 100%, or Group share for jointly owned projects), and capitalised DPM fees.

ALTAREIT - HALF-YEAR RESULTS 2022 3

1.1. Residential

1.1.1. Strategy

Altareit is the second-largest residential developer in France11 and the Group has structured itself to eventually sell a potential 18,000 units per year in the medium term.

National geographic coverage

The Group holds particularly strong positions in French major cities where it holds a leading or co-leading position. In recent years, it also develops its activity at a sustained pace in medium-sized cities, which offer new growth opportunities. These particularly dynamic territories are generally located along major intercity transport routes or in coastal or border areas.

Almost all of the offer for sale and the land portfolio are located in high-growth areas and multi-family buildings with a very high level of certification (quality and/or environmental).

A multi-brand strategy

Six complementary brands to cover the entire market

Cogedim ("healthy homes for healthy people") is the Group's leading brand in terms of geographic coverage, product lines and reputation (Cogedim has won "best customer service of the year" awards five times since 2018). Cogedim's offer is built around ten commitments to promote health, well-being and the environment, with particular attention paid to air quality, material neutrality and the reduction of CO2 emissions, energy and lighting savings, and thermal and acoustic comfort. This offer is particularly in line with the new expectations of French people in terms of high-quality housing12. Cogedim is structured to reach a potential annual sales of 11,000 units in the future.

Pitch Immo ("closer to go further") has a market position around four values: people at the heart (improving the regional network for greater proximity), local integration (tailored programs developed with local stakeholders), quality of life and CSR (outdoor spaces and green spaces, air quality, and NF Habitat, HQE and Energy+Carbon- certifications). The brand Severini (specialised in the Aquitaine region) reports to Pitch Immo operationally. In total, Pitch Immo has potential sales of 4,000 units per year.

Histoire & Patrimoine ("Historical places for your stories") is the Group's brand specialising in renovation and urban restoration. The expertise of Histoire & Patrimoine focuses on historical buildings, exceptional architectures and historical urban sites to give them a second life. Histoire & Patrimoine has future potential sales of around 1,000 units per year.

Cogedim Club ("Family home spirit") is the brand specialising in the development and management of senior housing, offering apartments for rent, with personalised

services and events, for the comfort and well-being of their occupants.

Woodeum ("100% committed to the planet and your well- being") is the brand specialising in the construction of CLT solid wood and low-carbon housing. The construction technologies developed by Woodeum contribute to reduce the carbon footprint and construction nuisance of buildings, while offering exceptional comfort of use. Woodeum is structured to reach potential sales of 2,000 annual units in the future.

The Group's various brands operate independently (own customers and products) while benefiting from the power of the Group and its umbrella brand Altarea (strategy, finance, other support).

A multi-product strategy

The Group provides adequate answer to requirements from all market segments and all customer types:

• High-end:products defined by demanding requirements in terms of location, architecture and quality;
• Entry-leveland mid-range: programmes specifically designed to address the need for affordable housing for first- time buyers and the challenges facing social landlords, private investment and institutional investors;
• Serviced Residences: the Group designs residences for active seniors (without daily medical supervision), tourist residences and student residences with city-centre locations and a range of à la carte services;
• Renovation of historical sites: under the Histoire &
  Patrimoine brand, the Group has a range of products for Historical Monuments, Malraux Law properties and Real Estate Tax schemes;
• Sales in dismemberment of ownership: the Group is developing programmes under a French Government policy known as social rental usufruct. This additional offering, whilst meeting the need for low-cost housing in high-demand areas and thereby helping out local communities, provides an alternative investment product for private investors;
• Timber housing development under the brand Woodeum, leader in carbon-free development in France and a 50%- owned subsidiary of the Group.

The Group has also developed Altarea Solutions & Services, an in-housevalue-added service platform to support its customers and partners through their real estate project (commercial support, financing brokerage, rental management, property management, etc.). At the end of June 2022, the Group was already managing, as part of its property management activity, more than 15,405 units spread over 373 buildings, and more than 6,330 units as part of its rental management offering.

11 Source: Ranking of Developers 2021 carried out by Innovapresse which analyses and compares the volumes of activity, the number of housing units or square meters produced, or the equity and debt of the main property developers. It provides detailed figures, developer by developer, and outlines their projects and strategies.

12 In September 2021, Cogedim conducted a study with the OpinionWay institute entitled "The French, housing and health", the results of which were published on 16 November 2021 and are available on the altarea.com website, under the Newsroom section.

ALTAREIT - HALF-YEAR RESULTS 2022 4

1.1.2 ACTIVITY OF THE HALF-YEAR

Reconstitution of the offer for sale13 in a context of sustained demand

The offer for sale at the end of June 2022 amounted to €1,971 million including tax, up by +13% compared to the end of December 2021.

The increase in the offer was made possible thanks to the work carried out at all stages of the production cycle (sales agreements, obtaining and clearing claims on building permits, and commercial launches).

Supply14

	Supply		H1 2022		H1 2021		Chge
In €m incl. VAT	2,811	2,222	+27%
In units	9,878	9,253	+7%

Procurement increased by +27% in value (+7% in volume) compared to the 1st half-year 2021.

This growth was mainly driven by the new territories (Angers, Tours, Caen, Amiens, etc.), confirming the effectiveness of the national coverage expansion strategy undertaken in 2021. The Group opened offices in Tours, Rouen, Caen, Angers, Rennes, Dijon, Clermont-Ferrand, Mulhouse, Metz and strengthened its presence in Lille, Strasbourg, La Rochelle and Amiens. This strategy enables the firm to benefit from the favourable momentum of these regions.

Building permits and land acquisitions

	In units		H1 2022		H1 2021		Chge
Building permit applications	8,118	6,211	+31%
Building permits granted	5,723	4,913	+16%
Land acquisitions	4,555	3,836	+19%

Commercial launches (retail sales)
Launches	H1 2022	H1 2021	Chge
Units	4,410	3,770	+17%
No. projects	103	82	+26%

1. Value of units available for new orders.
2. Preliminary sale agreements for land, valued as residential new orders (incl. tax) or units.

New orders15

New orders increased by +9% in value (+2% in volume). In a context marked by the return of inflation and economic and geopolitical instability, residential real estate is more than ever confirming its status as a safe haven.

	New orders		H1 2022		%		H1 2021	%		Chge
	Individuals - Residential buyers		421		30		321	25%	+31%
			%
	Individuals - Investment		560		40		495	38%	+13%
			%
	Block sales		434		30		478	37%	-9%
			%
	Total in value (€m)		1,414				1,294			+9%
	Individuals - Residential buyers		1,214		24		934	19%	+30%
			%
	Individuals - Investment		1,998		40		1,855	38%	+8%
			%
	Block sales		1,818		36		2,134	43%	-15%
			%
	Total in units		5,030				4,923			+2%

Highlights of the half-year:

• strong demand from Individuals (successful commercial launches with sales rates of over 12%) from both rental investors and first-time buyers, the proportion of which increased this half-year;
• Institutional investors' continued strong appetite for residential products, whose profile appears to be particularly high-performance (vacant housing, intermediate rental housing and managed residences).

Demand for new housing continues to be driven by real estate fundamentals: demographic growth, level of available savings and changes in housing expectations.

New orders by product range

In units	H1 2022	%	H1 2021	%	Chge
Entry-level/mid-range	3,179	63%	2,879	58%	10%
High-end	928	18%	920	19%	1%
Serviced Residences	555	11%	719	15%	-23%
Renovation/Rehabilitation	369	7%	405	8%	-9%
Total	5,031		4,923		+2%

Notarised sales

€ millions incl. VAT	H1 2022	%	H1 2021	%	Chge
Individuals	765	62%	667	56%	+15%
Block sales	468	38%	534	44%	-12%
Total	1,233		1,201		+3%

Projects under construction

At the end of June 2022, 312 projects were under construction in France for nearly 27,500 units (+2% vs. H1 2021).

15 New orders net of withdrawals, in euros, including VAT when expressed in value. Data at 100%, with the exception of operations under joint control which are reported in Group share (including Woodeum).

ALTAREIT - HALF-YEAR RESULTS 2022 5