2023-09-13 15:47:01
REALITIES
Solid growth in REALITES results in the first half of 2023 in a declining market
13-Sep-2023 / 17:45 CET/CEST
Regulatory information transmitted by EQS Group.
The content of this press release is the responsibility of the issuer.
Turnover of €187.1 million: +32.6% EBITDA at €22.2 million: +27.1% Operating profit at €13.0 million: +44.4%
Annual performance forecast for 2023:
Turnover greater than €400 million Maintaining the Group’s net profitability
Saint-Herblain, September 13, 2023, 5:45 p.m. The Board of Directors of the REALITES territorial development group has approved the consolidated accounts for the first half of 2023.
In millions of euros HT IFRS
30/06/2023
30/06/2022
Variation N-1
Turnover
187,1
141,1
+32,6 %
EBITDA
22,2
17,5
+27,1 %
EBITDA margin rate
11,9 %
12,4 %
Operating income
13,0
9,0
+44,4 %
Operating margin rate
7,0%
6,4 %
Net profit
2,8
3,9
-29,0 %
Net margin rate
1,5 %
2,8 %
Net income Group share
3,6
2,8
Net income per share – Group share in €
0,83
0,79
Market outperformance with turnover up +32.6% to €187.1 million
In a real estate production market in sharp decline, requiring profound adaptation and change on the part of its players, the strategic positioning of the REALITES group, which has relied for several years on profitable acyclical operating activities, a policy of high turnover of its stocks and the development of its off-site production sector, is proving to be a major asset in overcoming the crisis and outperforming the market. In this difficult period, the Group’s growth indicators are showing good progress, in line with the expectations announced in the latest publications.
The two pillars of the Group (Project Management and Usage Management) jointly participate in this performance.
The project management activity (real estate development) is recording strong and profitable growth. Over the half-year, it increased by +38.6% to stand at €186.3 million, compared to €134.4 million over the same period of 2022. Its operational profitability reached 5.7% of turnover.
Acts increased over the period by 51.1% to reach €198 million. The transformation of land development generated by the Group stands at a controlled level of €326 million.
Reservations increased over the half-year by 29.4%, while the real estate market showed a drop of around 40%. They stand at €231 million, compared to €178.3 million for the same period of 2022.
Faced with a market undergoing profound change, the order book, made up of the commercial backlog, the commercial offer and the land portfolio, is strengthening and amounts to €3,341 million compared to €3,182 million as of December 31, 2022. REALITIES thus has quality on-board equipment, with very limited hard stock.
The Usage Control (operation) activity, which currently has 58 sites operated, continues to develop and becomes increasingly contributory. Its turnover shows an increase of 44.4% and amounts to €16.9 million for an operational profitability of 47.3%.
Results that support the Group’s economic model and strategic positioning
In a market context in sudden downturn, REALITES was able to demonstrate anticipation and agility, very quickly implementing the operational decisions necessary to preserve its results.
EBITDA for the first half of 2023 increased by 27.1% to €22.2 million, representing 11.9% of turnover. The EBITDA of Project Management stands at €10.8 million and represents 5.8% of its turnover; that of Usage Management amounts to €13.8 million.
Operating income, following deduction of depreciation and provisions for a total amount of €9.2 million, stood at €13.0 million, an increase of 44.4%, representing 7.0% of the operating profit. consolidated business, compared to 6.4% last year.
After taking into account a financial result of -€8.6 million compared to -€5.5 million as of June 30, 2022, due to the rise in rates and the financing of current projects, then a charge of taxes of €1.6 million, the net result comes to €2.8 million.
The anticipation strategy adopted allows us to have a solid financial structure
From 2022, REALITES had anticipated its financing needs by strengthening its financial structure. In addition, thanks to good control of its corporate debt and careful management of its cash flow, REALITES has a solid financial structure as of June 30, 2023, allowing it to implement its strategic plan.
As of June 30, 2023, the Group’s shareholders’ equity reached €161.1 million, compared to €144.5 million as of December 31, 2022. Active cash flow amounts to €69.1 million. Corporate net debt (debt excluding projects) stands at €120.3 million, a level close to that of December 31, 2022 (€110.5 million).
Furthermore, the strengthening of the Group’s equity, deployed since March 2023 through the “M100 Plan”, is a success. To date, €94.3 million has been collected and an additional €34.8 million has already been contracted. REALITES thus exceeds its initial objective and announces that it has already identified €70 million which are currently being negotiated, both with historical partners and new financiers.
REALITES updates below the information it communicated on June 1, 2023 on the strengthening of the Group’s financial resources, which its shareholders and managers intend to provide:
oRigine, the holding company of the founding shareholders, has invested €9 million in the Group’s projects at the end of July 2023. It is already planned that oRigine will complete this financing for €5 to €15 million by the end of the year; Chairman and CEO Yoann CHOIN-JOUBERT, via his holding company, created a co-investment vehicle in the Group’s real estate projects, which will have deployed €9 million by mid-September; REALITES and Financière du Nogentais, its shareholder up to 15.31%, are in discussions with a view to concluding an agreement by which the latter would finance the Group’s land reserve up to a maximum amount of €6 million; As a reminder, during the General Meeting general meeting of June 2023, the shareholders waived, by a vote, €4.6 million in dividend distribution.
A targeted investment policy responding to the challenges of transforming the sector
In a market undergoing profound change, REALITES aims to become one of the leaders in low-carbon construction. To achieve this, the Group is accelerating its investments in off-site construction through its subsidiary MAYERS (formerly REALITES BuildTech). Its industrial capacities already make it possible to produce 150,000 m² of 2D facade and up to 1,400 3D modules per year, thus perfectly meeting the State’s “France 2030” strategy which aims to support the development of the “outside” construction method. site” for new construction and renovation.
Investments in Usage Control activities, whose economic and financial performance meets objectives, are continuing. For the record, REALITES aims to operate 110 sites by 2027.
REALITES specifies that it has invested in tangible real estate assets held by its property company, for an amount greater than €20 million in the first half of 2023.
Finally, the Group is committed to developing a new generation of real estate assets adapted to new market expectations.
2023 forecast: profitable growth in a difficult market context
For the entire 2023 financial year, in a market that will remain difficult in the second half of the year, REALITES will deliver increased performance with a turnover excluding tax of more than €400 million and a growing operating profit. Authentic acts should exceed €500 million, reservations are also expected to increase, to more than €600 million.
These expectations are supported by the orientations adopted, aimed at making the Group more solid and more agile in a short and medium term vision. In order to continue to deliver profitable growth, the program to reduce structural costs across the entire Group scope will be continued to adapt to a still low 2024 market. A rationalization of certain investments will be implemented and financial management strengthened. Accelerating sales of residential programs to institutional investors will also be required, in order to secure part of the turnover.
Taking into account market conditions, and in order to maintain its level of profitability, the Board of Directors of REALITES has decided to reduce its growth trajectory, postponing its objective of reaching €800 million in turnover by 2025 .
“In a very disrupted market, marked by a total paradigm shift and a very significant effort from the teams and our shareholders, our results illustrate both the power of our economic model and our strong capacity to adapt to an unfavorable environment. . The whole challenge of this period is to get through it while preserving our fundamentals, while preparing for the future,” concludes Yoann CHOIN-JOUBERT, Chairman and CEO of the REALITES group.
About REALITIES
Founded in 2003 by Yoann CHOIN-JOUBERT, its CEO, REALITES is a territorial developer that builds with and for cities and metropolises new solutions that are meaningful, create values, attractiveness and economic development. Thanks to its dual positioning in Project Management (construction of housing, managed habitats, shops, offices, business premises, etc.) and in Use Management (hospitality, health, entertainment services), REALITES creates projects that anticipate the needs of cities and neighborhoods.
The Group is also engaged in a profound change in construction processes with Mayers, its subsidiary specializing in low-carbon construction and particularly off-site construction, which brings together the Group’s technical and industrial expertise in order to design projects that meet construction challenges. of future.
The first project owner for a mission-driven company in France, REALITES officially confirms its commitment to reconciling profit and collective interest, with the support of a Mission Committee made up of recognized experts.
With an ambitious development strategy in France and internationally (Morocco, Senegal, Portugal), REALITES will see a 27% increase in its turnover in 2022 to €364 million.
REALITES has been listed on Euronext Growth Paris since 2014 and its stock is eligible for the PEA PME (Isin code: FR0011858190, Ticker: ALREA). REALITES is eligible as a reinvestment support within the framework of a tax deferral as provided for by article 150-0 B ter of the General Tax Code.
To find out more: realites.com
Analyst/investor contact:
REALITIES – Jean-Michel Onillon: +33 2 40 75 50 91 – [email protected]
Economic and financial press contact:
CAPVALUE – Gilles Broquelet : +33 1 80 81 50 00 – [email protected]
Corporate and real estate press contact
REALITIES – Matthieu Maury: +33 6 80 12 29 94 – [email protected]
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Document: Solid growth in REALITES results in the first half of 2023 in a declining market
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