Altarea (ALTA) H2 2024 earnings summary

Executive summary

• 2024 performance aligned with strategic roadmap, with revenue up to €2,768.5m (+2.1%) and FFO rising 25.7% to €127.2m, supported by strong investment turnover and financial stability.

• Net income rebounded to €86.1m from a €508.6m loss in 2023, with comprehensive income at €87.5m, reflecting a significant turnaround.

• Net debt remained stable at €1,681m; robust liquidity with €941m cash and €1,589m undrawn credit lines; average cost of debt reduced to 1.92%.

• Major focus on decarbonization, with a 15% drop in carbon emissions in 2024 and 50% reduction since 2019.

• Major events included the acquisition of Prejeance Industrial (photovoltaics), successful retail developments, and a favorable court ruling in the Primonial litigation.

Financial highlights

• Consolidated revenue: €2,768.5m (+2.1%); EBITDA: €274.1m (+10.5%).

• FFO Group share: €127.2m (+25.7%); net result Group share: €6.1m (vs. €-472.9m in 2023).

• Net rental income increased by 5.6% to €216.4m; net property income swung to €133.2m from a negative €172.6m.

• EPS improved to €0.29 (undiluted) and €0.28 (diluted), up from negative values last year.

• Funds from operations (FFO) for the group were €209.8m, with a diluted FFO per share of €5.84.

Outlook and guidance

• 2025 FFO expected to rise slightly, driven by early recovery in Residential and continued Retail strength.

• Stable dividend planned for 2025 (payable in 2026); ramp-up in earnings anticipated from 2026 as New Businesses contribute.

• Strategic focus on capitalizing Retail REIT, restoring Residential profitability, expanding Business Property, and accelerating New Businesses.

• The offer for sale is now focused on affordable, low-carbon, and profitable programs, with a quarter from the Access range.

• The group expects a recovery in land acquisitions and commercial launches in residential, with momentum building in 2025.