Altarea (ALTA) H1 2024 earnings summary

Executive summary

• Strong retail REIT performance with assets under management of €5.2bn, optimal occupancy at 97.3%, and robust results in H1 2024; residential segment ended its adjustment period with new affordable, low-carbon offers launched.

• Acceleration in photovoltaics and new businesses, including the €140m acquisition of Préjeance, and ramp-up in data centers and asset management.

• Revenue reached €1,197.3m, down 4.2% year-over-year, with retail up 9.7% and residential down 4.3%.

• FFO Group share rose to €57.9m, up 2.7x from H1 2023, driven by retail and residential performance.

• Robust liquidity of €2.3bn and a loan-to-value ratio of 31.3% support a strong financial position.

Financial highlights

• Consolidated sales for H1 2024: €1,197.3m, down 4.2% year-over-year, mainly due to declines in residential (-4.3%) and business property (-21.9%), while retail rose 9.7%.

• Operating profit increased 31.6% to €121.6m; net recurring result (FFO) Group share was €57.9m (vs. €21.7m in H1 2023); net profit (Group share) reached €26.8m (vs. -€17.8m in H1 2023).

• Net rental income for retail: €105.6m (+7.7% vs H1 2023); like-for-like growth +7.0%.

• Net debt at €1,849m (+€202m from 31/12/23); average debt cost 1.59%, maturity 4 years 5 months.

• 59.6% of revenue aligned with EU Taxonomy, up from 48.1% in 2023.

Outlook and guidance

• Focus remains on retail portfolio quality, operational and financial discipline in property development, and investment in new generation residential and new businesses.

• FFO growth target for 2024 confirmed, subject to macroeconomic and political conditions.