Altareit : 2022 annual results (press release and Business review)

Press release	2022 annual results
	Paris, February 28th, 2023, 5:45 pm

Residential: notable success with individuals in a market down 26%1

New orders down 12% in value (Retail sales up by 1,4%, Block sales down by 29%)

Agile management of land commitments at the year-end

Operating income: €155.8m (down by 15.3% compared to 2021)

Business property: strong contribution in 2022

Many transactions, all products, all territories

Operating income: €52m (x2.5 compared to 2021)

Financial results

Revenue2: €2,729 m (down by 3.0%)

Recurring operating income3: €205.8 m (up by 0.2%)

Net income, Group share4: €138.2 m (up by 1.8%)

Net Debt5: €146 m (vs net cash €107 m in 2021)

Gearing6: 0.13x (vs 0.10x on 31 December 2021)

Following review by the Supervisory Board, Management approved the annual 2022 consolidated financial statements. The audit procedures on financial statements have been carried out, and the audit reports relating to their certification are being issued.

ABOUT ALTAREIT - FR0000039216 - AREIT

A 99.85% subsidiary of the Altarea Group, Altareit is a pure player in property development in France. Thanks to its unique multi-product expertise, Altareit is a pioneer in mixed-use projects in French gateway cities. Altareit has the know-how in each sector required to design, develop, commercialise and manage made-to-measure real estate products. Altareit is listed in compartment A of Euronext Paris.

FINANCE CONTACTS

Eric Dumas, Chief Financial Officer	Pierre Perrodin, Deputy CFO
[e-mail], Tel: + 33 1 44 95 51 42	[e-mail], tel.: [phone]

DISCLAIMER

This press release does not constitute an offer to sell or solicitation of an offer to purchase Altareit shares. For more detailed information concerning Altareit, please refer to the documents available on our website www.altareit.com. This press release may contain some forward-looking statements. While the Company believes such declarations are based on reasonable assumptions at the date of publication of this document, they are by nature subject to risks and uncertainties, which may lead to differences between real figures and those indicated or inferred from such declarations.

1 The estimation of Altarea based on the data published by Fédération des Promoteurs Immobiliers (FPI) for the first 9 months of 2022. 2 Revenue by % of completion basis (including external services).

3 Corresponds to the operating income in the Funds From Operations (FFO) column of the analytical income statement.

4 Corresponds to the net income in the Current operating cash flow (FFO) column of the analytical income statement. Group share.

5 Net bank and bond debt.

6 Net bank and bond debt / consolidated shareholders' equity.

ALTAREIT 2022 ANNUAL RESULTS 1

BUSINESS REVIEW

31 DECEMBER 2022

	Agenda
1.1	A PURE PLAYER IN LOW CARBON PROPERTY DEVELOPMENT IN FRANCE	3
1.2	OPERATIONAL PERFORMANCE	4
1.2.1	Residential	4
1.2.2	Business property	7
1.3	ENVIRONMENTAL PERFORMANCE: EUROPEAN TAXONOMY AND CARBON PERFORMANCE	10
1.3.1	Taxonomy: new standard for environmental performance reporting	10
1.3.2	Carbon performance	11
1.4	CONSOLIDATED RESULTS	13
1.5	FINANCIAL RESOURCES	15

ALTAREIT - 2022 ANNUAL RESULTS 2

1.1 A pure player in low carbon property development in France

A 99.85% subsidiary of the Altarea Group, Altareit offers a skills platform covering all asset classes (residential, retail, offices, logistics, hotels, serviced residences, etc.), in order to respond effectively and comprehensively to the challenges of urban transformation.

Residential: Altareit is now the second-biggest developer in France7, structured to be able to reach a potential of 18,000 units sold per year.

Business property: Altareit has developed a unique model that enables it to operate in a highly significant manner and with moderate risk on this market:

• as a property developer8 for external customers with a particularly strong position on the turnkey users market,
• as a medium-termdeveloper-investor in assets with a strong potential (prime location) to be redeveloped pending sale (via AltaFund9).

A unique positionning

Over the years, the Group has built up a unique platform of real estate skills for low-carbon urban transformation

The successive crises of recent years (health, environmental, social) have highlighted the need to thoroughly rethink the organisation and functioning of our cities. A large number of real estate infrastructures have become obsolete and must be transformed to adapt to both the changes in use that now affect almost all real estate products and climate change (energy efficiency).

Altareit's know-how lies in developing low-carbon real estate products that integrate all these issues into a complex economic equation. The complementary nature of the Group's10 operating brands covers all the real estate portfolio solutions that enable cities to play a key role in their transformation, either through successive touches or on the scale of entire neighbourhoods.

Pipeline

At the end of 2022, Altareit has secured a huge portfolio of nearly 870 projects of more than 4.4 million m² with a potential value of more than 20.2 billion euros11.

These projects are carried out mostly in a "developer" model (development for sale). Almost all projects are managed under options that the Group can exercise based on prudential criteria adapted to each situation.

The Group is managing 21 major urban renewal projects with a cumulative potential value of nearly €5.1 billion and a surface area of 1,270,000 m², including 15,800 residential units (including hotels and serviced residences).

These new neighborhoods, which are microcosms of the city in all its components, help counter the artificialisation of the soil through densification and the conversion of existing land.

Primonial

On 2 March 2022, Altarea informed the public that the acquisition of the Primonial Group could not be completed under the agreed conditions. Altarea considers that the Sellers did not comply with the provisions of the acquisition agreement entered into in July 2021, which has lapsed.

Following the non-completion of the acquisition of Primonial, the Sellers (various groups of shareholders of Primonial (investment funds and managers)) summoned the Company and its indirect subsidiary, Alta Percier, before the Commercial Court of Paris, in order to obtain compensation for the damage they allegedly suffered. Altarea and Alta Percier challenge such claims, which they believe are groundless. On the contrary, Altarea and Alta Percier consider that the Sellers are responsible for the failure to complete the transaction. Altarea thus requests that the Sellers be ordered to pay damages (dommages et intérêts) for the damages suffered by the Group. To this end, Altarea and Alta Percier filed a brief in response (conclusions en réponse) and in voluntary intervention (intervention volontaire) before the Commercial Court of Paris on 20 June 2022.

In their brief in response (conclusions en réplique) dated 21 November 2022 and 16 January 2023, the various groups of shareholders maintained and developed their argumentation. As it stands, the seller managers allege a damage of €118,988,650 and the investment funds allege a damage of €588,082,058.50.

Based on the Sellers' claims, Altarea maintains its position that it has no liability in this respect, as the failure to complete the transaction was, in its view, caused by the Sellers, so that they cannot claim damages that are groundless and unjustified in view of the factual and legal elements. Altarea will develop its argumentation in its next brief in response.

As of the date of disclosure of the Group's financial statements, the proceedings are ongoing.

In agreement with the Group's advisors, the Group did not record any provision.

7 Source: 2022 Ranking of Developers carried out by Innovapresse which analyses and compares the volumes of activity, the number of housing units or square meters produced, or the equity and debt of the main property developers. It provides detailed figures, developer by developer, and outlines their projects and strategies.

8 This development activity does not present any commercial risk: Altareit carries only a measured amount of technical risk.

9 AltaFund is a discretionary investment fund, created in 2011, of which Altareit is one of the contributors alongside leading institutional investors.

10 Cogedim, Pitch Immo, Histoire & Patrimoine, Severini, Woodeum, Altarea Logistique, Altarea Entreprise, Cogedim Club, Altarea Solutions and Services.

11 Potential value = market value at delivery dateResidential: offer for sale +

portfolio incl. VAT. Business property: potential market value excl. transfer duties on the date of disposal for investment projects (at 100%), amount excl. VAT of off-plan sales/PDCs for the other development programmes (at 100%, or Group share for jointly owned projects), and capitalised DPM fees.

ALTAREIT - 2022 ANNUAL RESULTS 3

1.2 Operational performance

1.2.1 Residential

1.2.1.1 Strategy

Altareit is the second-largest residential developer in France12. The Group has structured itself to achieve potential sale of approximatly 18,000 units per year in the medium term depending on market conditions

National geographic coverage

The Group has a national geographical coverage with particularly strong positions in major cities where it is a leader or co-leader. In recent years, it also develops its activity at a sustained pace in medium-sized cities, which offer new growth opportunities. These particularly dynamic territories are generally located along transportation axes connecting major cities or in coastal or border areas.

Almost all of the offer for sale and in the land portfolio are located in high-growth areas and are collective buildings with a very high level of certification (quality and/or environmental).

A multi-brand strategy

Complementary brands to cover the entire market

Cogedim ("healthy homes for healthy people") is the Group's leading brand in terms of geographic coverage, product range and brand awareness (Cogedim was awarded "Best customer service of the year" for the for the sixth consecutive year in early 2023). Cogedim's offer is built around ten commitments that prioritize health, well-being and the environment, with particular attention paid to air quality, neutral materials, reducing CO2 emissions, energy savings, brightness, thermal and acoustic comfort. This offer is particularly in line with the new expectations of French people in terms of high-quality housing13. Cogedim is structured to reach potential annual sales of 10,000 to 11,000 units in the future.

Pitch Immo ("closer to go further") has a market position around four values: people at the heart (strengthening territorial coverage for greater proximity), local integration (tailor-made programs developed with local stakeholders), quality of life and CSR (outdoor spaces and green spaces, air quality, NF Habitat, HQE and Energy+Carbon- certifications). The brands Severini, specializing in the Aquitaine region, and Groupe XF, a Toulouse-based developer acquired in July 2022 to strengthen the Group's presence in Occitanie, are operationally attached to it. In total, Pitch Immo has potential sales of 4,000 units per year.

Histoire & Patrimoine ("Historical places for your stories") is the Group's brand specialising in urban renovation and rehabilitation. The expertise of Histoire & Patrimoine focuses on historical buildings, exceptional architectures and historical urban sites to

give them a second life. Histoire & Patrimoine has future potential sales of around 1,000 units per year.

Woodeum ("100% committed to the planet and your well-being") is a brand specialising in the construction of CLT solid wood and low-carbon housing. The construction technologies developed by Woodeum contribute to reduce the carbon footprint and construction nuisance of buildings, while offering exceptional comfort of use. Woodeum, a wholly owned subsidiary of the Group since early 2023, is structured to reach potential sales of 1,500 to 2,000 annual units in the future.

Cogedim Club ("Family home spirit") is a brand specialising in the development of managed residences for active seniors, offering apartments for rent, with personalised services and activities, for the comfort and well-being of their residents.

A multi-product strategy

The Group provides adequate answer to requirements from all market segments and all customer types:

• High-end:products defined by high requirements in terms of location, architecture and quality;
• Middle and entry-level: programs designed to address the need of affordable housing for first-time buyers and investment, as well as meeting the needs of social landlords and institutional investors;
• Serviced Residences: Altareit designs residences for active seniors (without daily medical monitoring), tourist residences as well as student residences combining a central location and a range of à la carte services;
• Heritage rehabilitation products: under the Histoire &
  Patrimoine brand, the Group offers a range of products in Historical Monuments, Malraux Law properties and Real Estate Tax schemes;
• Sales in dismemberment of ownership: the Group is developing programs under a French Government policy known as social rental usufruct. They offer an alternative investment product for private investors, whilst meeting the needs of social housing in high-demand areas and thus provide alternative solutions to local communities;
• Timber housing development under the Woodeum brand, a reference player in carbon-free development in France.

The Group has also developed Altarea Solutions & Services, an internal platform of value-added services to support its customers and partners throughout their real estate projects (commercial support, financing brokerage, rental management, property management, etc.). At the end of 2022, the Group was already managing, as part of its property management activity, nearly 16,100 units in 382 buildings, and more than 6,650 units as part of its rental management offering.

12 Source: Ranking of Developers 2022 carried out by Innovapresse which analyses and compares the volumes of activity, the number of housing units or square meters produced, or the equity and debt of the main property developers. It provides detailed figures, developer by developer, and outlines their projects and strategies.

13 In 2021, Cogedim conducted a study with the OpinionWay institute entitled

"The French, housing and health", the results of which are available on the altarea.com website, under the Newsroom section.

ALTAREIT - 2022 ANNUAL RESULTS 4

1.2.1.2 2022 environment

Adaptation of commercial policy and land commitments management to the context

Although the new residential market remains structurally under- supplied compared to needs in most large cities, it has been constrained since the beginning of 2022 by many unfavourable factors, both at the macroeconomic level (rise in interest rates, usury rate, maximum effort rate of 35% of income, inflation and purchasing power) and geopolitical level (war in Ukraine and energy shortages/tensions).

Access to financing, desire and purchasing power for real estate have eroded throughout the year, leading to a decline in sales in the last quarter, affecting all customer segments: private individuals in main residences, individual investors and institutional buyers.

As a result, Altareit, whose sales were still growing in the third quarter of 2022, has implemented greater selectivity in its projects to prioritize the sale of ongoing programs and the development of the most profitable projects. This policy has led to the postponement of certain commercial launches and land acquisitions initially planned for the end of 2022.

1.2.1.3 Activity of the year

Sourcing14

	2022		2021			Chge
In €m incl. VAT	6,381	5,502		+16%
In units	22,983	21,471		+7%

Procurements have increased by +16% in value (+7% in volume) compared to 2021, notably following the inclusion in the medium- term pipeline of several large urban projects (Cité de la gastronomie in Rungis, Grands Moulins in Corbeil-Essonnes,Marly-le-Roi, etc.).

Building permits and land acquisitions

	In units		2022		2021			Chge
Building permit applications		17,086	17,981		-5%
Building permits granted		14,052	12,057		+17%
Land acquisitions		12,487	11,523		+8%

Commercial launches (retail sales)
	Launches		2022		2021		Chge
Units	7,864	7,241	+9%
No. projects	182	166	+10%

Deliveries and projects under construction

In 2022, more than 9,170 units were delivered under 152 programs (compared to 12,175 in 2021 under 155 programs).

At the end of 2022, 344 projects were under construction in France, for nearly 32,000 units.

1. Preliminary sale agreements for land, valued as residential new orders (incl. tax) or units.
2. New orders net of withdrawals, in euros, including VAT when expressed in value. Data at 100%, with the exception of operations under joint control which are reported in Group share (including Woodeum).

New orders15
New orders	2022	%	2021	%	Chge
Individuals - Residential buyers	707	27%	667	22%	+6%
Individuals - Investment	1,015	38%	1,031	34%	-2%
Block sales	945	35%	1,340	44%	-29%
Total in value (€m incl. VAT)	2,666		3,038		-12%
Individuals - Residential buyers	2,000	20%	1,945	16%	+3%
Individuals - Investment	3,590	36%	3,866	34%	-7%
Block sales	4,428	44%	5,710	50%	-22%
Total in volume (units)	10,018		11,521		-13%

New orders, which were still increasing at the end of September 2022, are now down by 12% in value over the year, with strong disparities depending on the customer base:

• sales to Individuals have shown a very slight increase (+1.4% over the year), driven by first-time buyers;
• block sales recorded a decline of 29% in 2022, mainly due to the

postponed land acquisitions at the endof theyear, which traditionally involve a high proportion of block sales.

New orders by product range

In units		2022	%	2021	%	Chge
Entry-level/mid-range	6,286	63%	7,072	61%	-11%
High-end	1,946	19%	2,280	20%	-15%
Serviced Residences	1,031	10%	1,397	12%	-26%
Renovation	754	8%	772	7%	-2%
Total		10,017		11,521		-13%
Notarised sales
€ millions incl. VAT		2022	%	2021	%	Chge
Individuals		1,943	62%	1,609	55%	+21%
Block sales		1,182	38%	1,298	45%	-9%
Total		3,125		2,907		+7%

Notarised sales have experienced a strong increase among Individuals (+21%), particularly those who had their financing in place and who wanted to take advantage of the last year of the Pinel tax reduction in its current form.

Stability in revenue by % of completion16

€ millions excl. VAT	2022	%	2021	%	Chge
Entry-level/mid-range	1,578	64%	1,595	64%	-1%
High-end	649	26%	667	27%	-3%
Serviced Residences	88	4%	95	4%	-7%
Renovation	143	6%	128	5%	+12%
Total	2,459		2,485		-1%

Revenue in % of completion is stable overall at €2,459 million (-1%). Histoire & Patrimoine, a brand specialized in historical buildings, achieved an excellent performance (+12%) in a more difficult context for residential development.

16 Revenue by percentage-of-completion is calculated based on both percentage of sales realised (notarised sales) and the technical completion of the programmes (progress of construction sites).

ALTAREIT - 2022 ANNUAL RESULTS 5