Altarea (ALTA) H1 2024 earnings summary

Executive summary

• H1 2024 marked strong retail performance, improved residential results, and investments in photovoltaics and data centers, with a focus on low-carbon urban transformation and a diversified business model.

• 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.

• The group confirms its FFO growth target for 2024, subject to macroeconomic and political conditions.

• S&P affirmed BBB- rating but revised outlook to negative due to market environment.

Financial highlights

• Revenue reached €1,197m, down 4.2% year-over-year, with retail up 9.7% and residential down 4.3%.

• Operating income (FFO): €121.6m (+31.6% vs H1 2023); Net income Group share: €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 55.6% 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.