ALTAREA 2019 ANNUAL RESULTS (PRESS RELEASE AND BUSINESS REVIEW)

2 Mar 2020

2019 Revenue of €3.1 billion, up +29%

Good performance across all business lines

2019 FFO: €298.8 million (+9.7%)

2020 guidance reached one year ahead

Alain Taravella, Chairman and Founder of Altarea

Altarea's success in 2019 illustrates our vision of the city deeply in line with the expectations of our fellow citizens, their representatives and all stakeholders in urban transformation.

Our revenue has increased by +29% and our 2020 FFO objective has been reached one year early. Our market has a huge potential and we are organising our Group to meet the ever-increasing needs. The urban transformation market is in fact experiencing a clear acceleration under the combined impact of the metropolisation of territories and the environmental emergency that has deeply changed real estate expectations. Our project portfolio has doubled in five years. It now reaches 20 billion euros across all products, reflecting the underlying dynamism of our market.

In an uncertain economic environment marked by persistently low interest rates, real estate is a tangible asset for its users, a safe investment for its owners and an attractive asset class for major investors. As such, 2019 has confirmed the great return of institutional investors, not only in the new housing market, but also in retail, as evidenced by the two investment funds set up by Altarea for nearly 900 million euros of retail property.

Altarea's strength lies in having developed an exceptional platform of real estate expertise covering all asset classes. Our teams offer all the real estate portfolio solutions that enable cities to play a key role in their transformation, either in successive phases or on the scale of entire neighbourhoods. Altarea’s talents work on emblematic projects that will leave a sustainable mark on the urban landscape, such as Cap3000 in Nice and the major mixed-use project Cœur de Ville in Issy-les-Moulineaux. This variety of skills is also reflected through all our operational brands, which can express their specificities while benefiting from the strength and support of the Altarea group.

Given the potential of our market and our strategic positioning, we are raising our mid-term ambitions. In Residential, we are targeting an annual production of 18,000 to 20,000 units. In Retail, we are targeting a volume of assets under management between 6.0 and 7.0 billion euros while maintaining our economic ownership at around 3.0 billion euros in Group share. In Business Property, we are targeting annual production of 100,000 to 150,000 m² nationwide. A significant part of this growth will come from large mixed-use neighbourhoods, where we are way ahead. Altarea is also considering new development opportunities, through both internal and external growth, with the common goal of strengthening the Group’s skills platform (services, asset management, social housing, urban logistics). This development strategy will be cautiously implemented considering current context.

Altarea has demonstrated in the past years its ability to absorb economic challenges (“yellow vests” crisis, national strikes) without consequences on its results. An extended, worsened and widespread impact of the Covid-19 epidemic could nevertheless affect fiscal year 2020 through its effects on the French economy.

In the medium and long-term, we remain confident in keeping the path of a steady growth, for our company and its results. This growth will be sustainable and we pledge to maintain the highest ranking “Green Star five-stars” at GRESB.

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