Promoter Altarea maintains course towards growth for 2024

In 2023, the group announced a 63% drop in its benchmark indicator, recurring net profit (FFO), an “assumed” decision to deal with the crisis.

“For 2024, we confirm our FFO growth objective, the quantum of which will depend on the evolution of the macro-economic and political environment,” indicated its president Alain Taravella in a press release.

“After a year 2023 dedicated to reducing risks and clearing the previous cycle, the first half of 2024 was devoted to laying the foundations for the new cycle,” he added, specifying that the group was still anticipating “a long crisis".

As of June 30, 2024, consolidated turnover stood at 1,2 billion euros, down 4,2% compared to the first half of 2023 due in particular to "the decline in promotion, both in housing ( -4,3%) than in commercial real estate (-21,9%).

The office real estate sector is suffering due to a lack of new major projects launched, in a context of sluggish demand.

The commercial real estate activity, which rents shopping centers and spaces, is on the other hand up significantly (+9,7%).

The FFO stood at 57,9 million euros in the first half compared to 21,7 last year for the same period.

Like other developers, Altarea is bearing the brunt of the new real estate crisis, torn between rising construction costs and sluggish demand, under the effect of rising interest rates.

During the year, it decided to abandon certain acquisitions of building land to concentrate on the most profitable operations and to revise downwards the value of some of its assets.