Altareit (AREIT) H1 2024 earnings summary

Executive summary

• Consolidated sales for H1 2024 were €1,060.9m, a 6% decrease year-over-year.

• Operating income (FFO) rose 73% to €29.0m, driven by a turnaround in residential property development.

• Net profit from ordinary activities was €13.5m, up from €3.1m in H1 2023, but net profit (Group share) remained negative at €-10.5m.

• Major acquisition of Prejeance Industrial expands renewable energy capacity, with €140m invested.

Financial highlights

• Residential segment operating income surged to €26.4m from €8.9m year-over-year.

• Business property operating income fell 30% to €7.4m, mainly due to office transactions.

• Available cash at 30 June 2024 was €1,465m, down from €1,640m at year-end 2023.

• Net debt increased to €333m from €146m at year-end 2023, mainly due to investments.

• Shareholders’ equity stood at €801.7m at 30 June 2024.

Outlook and guidance

• New land options signed in H1 2024 support a pipeline of projects aligned with new commitment criteria.

• Launch of “Le Nouveau Neuf” aims to address affordability for first-time buyers with innovative financing.

• Backlog at 30 June 2024 was €2.5bn (residential) and €311m (business property), indicating a robust project pipeline.