Nexity : 9M 2020 business activity and revenue : Very good
performance of Nexity during the first nine months of the year
showing the strong resilience of its business model
|
9M 2020 BUSINESS ACTIVITY AND REVENUEVERY
GOOD PERFORMANCE OF NEXITY DURING THE FIRST NINE MONTHS OF THE YEAR
SHOWING THE STRONG RESILIENCE OF ITS BUSINESS
MODELGUIDANCE FOR 2020 AND 2021
SPECIFIED |
| |
| Paris, Wednesday
28 October 2020, 5:45 p.m.
CET |
9M 2020 business activity and revenue
- Strong growth in our market shares for new homes in
France: +4.3 points (16,4% in H1 2020 compared to 12,1% in
H1 2019)
- New home reservations in France: 13,635 units
representing €2,948 million (down 3% by volume and
up 4% by value)
- Commercial Real Estate order intake: €230 million
excluding VAT
- Development backlog: €5.7 billion (up 12% from
end-December 2019)
- Revenue: €2,737 million (down 2% from 9M
2019)
Guidance
for 2020 and 2021
2020 business activity
- New home reservations for Nexity: around 20,000 units,
expected to substantially outperform the market
- High level of Commercial real estate new orders
expected in Q4
Financial aspects
- Revenue of at least €4.2 billion in
2020, with a current operating margin
of around 5%, reaching a low
point
- For 2021, revenue growth of at least 10% relative to
2020 and a current operating margin of at least
7%
- Development pipeline (backlog + land under
options) of around €20 billion
- Net financial debt (before lease liabilities)
less than €1.2 billion at 31 December
2020
This guidance is based on business
assumptions considering new lockdown measures but excluding an
extended shutdown of construction sites.
Alain Dinin, Chairman and CEO of Nexity,
commented:
“After a start to the year marked by the shock
of a widespread lockdown, Nexity saw its business activity recover
starting in June, and this recovery has continued since then, with
the second wave of the Covid-19 pandemic not significantly
affecting our businesses today, although it has obviously weighed
on French consumer confidence.
Our new home reservations in the first nine
months of the year were almost equivalent by volume to those
recorded in 9M 2019 and were even higher by value. French housing
demand remained high, and Nexity demonstrated its capacity to meet
this demand. The introduction of stricter bank conditions weighed
on the solvency of lower-income clients, but strong demand from
institutional investors helped us offset this impact. Thanks to
Nexity’s geographic distribution, the diversity of our products and
client types, and our land sourcing capacity, we confirmed and
expanded our leadership position in our market. The ground-breaking
agreement we signed with Gecina to develop 4,000 homes together
illustrates this.
In the office space market, Nexity has confirmed
the steady development of the programmes in its portfolio, secured
by commitments made by high-calibre investors and users, and is
preparing to respond to the new context with unique solutions that
stand out with regard to their environmental performance, carbon
footprint and integration of services and user features.
With a new organisation2, Nexity has entered a
new phase in the development of our Property Management for
Individuals activities, making the client our teams’ number-one
priority by developing close relationships focused on quality of
service, offering solutions tailored to each client profile,
upgrading our digital tools and expanding our geographic coverage
to bolster our local presence.
For Nexity – France’s number-one timber-frame
developer and the first operator to achieve E3C2 certification for
a commercial building, deeply committed to championing an
environmentally responsible approach – the now central role of
energy renovation confirms the relevance of our Property Management
for Individuals businesses, with nearly 20,000 buildings managed on
behalf of condominium owners.
Based on these elements, and barring the
implementation of lockdown measures resulting in an extended
shutdown of construction sites, we are now ready to specify our
guidance:
- Around 20,000 new home reservations expected this year
- Revenue of at least €4.2 billion in 2020, and growth of at
least 10% in 2021
- Current operating margin of around 5% (low point) in 2020
and at least 7% in 2021
- Development pipeline of around €20 billion
- Net financial debt at 31 December 2020 less than €1.2
billion.
Lastly, Nexity has launched an assessment of the
performance and capacity to create value of the Group’s different
business lines and their relevance in offering our clients the
expanded range of services they are looking for, which will be used
to update our strategic plan. This plan will be presented to our
different stakeholders when we publish our 2020 accounts.”
***
9M 2020 BUSINESS ACTIVITY
INDIVIDUAL CLIENTS
Residential Real Estate
In the first six months of 2020, the MALONE3
market totalled 57,732 reservations, down 26% with respect to
end-June 2019. Market trends were primarily held back by a supply
deficit aggravated by the re-evaluation of local urban planning
policies following the shift in power that took place after the
second round of local elections in France. This supply shortage
resulted in an increase in prices, despite the fact that they
should logically decrease. In this context, Nexity demonstrated its
resilience and its market share surged to 16.4%, 4 points higher
than at 30 June 2019 (12.1%).
For full-year 2020, Nexity anticipates a sharp
downturn in the French market for new homes4 (around 125,000 units,
down around 25% compared to 2019), with a sharp decline in the
retail sales sector due to the lockdown period and the ongoing
public health crisis, while bulk sales are expected to grow,
spurred on by institutional investors’ appetite for residential
property. Nexity’s market share should continue to grow thanks to
its multi-product, multi-service and multi-brand strategy; its
geographical positioning, which is concentrated in Greater Paris
and major cities, where underlying demand is very buoyant; and its
unrivalled offering of products and services, enabling the Group to
meet the needs of all types of clients.
At end-September 2020, net new home reservations
in France totalled 13,635 units for €2,948 million including VAT,
down 3% by volume and up 4% by value with respect to end-September
2019.
This increase in reservations was mainly
concentrated in bulk sales (up 55% relative to 9M 2019), and more
specifically the growth in reservations made by institutional
investors (which tripled relative to 9M 2019). This change
reflected Nexity’s ability to adapt its offering to respond to this
demand. The firm commitment signed with CDC Habitat in April 2020
for 7,450 housing units contributed to reservations for the period
(2,880 reservations at end-September 2020, more than 2,000 of which
should have notarial deeds of sale signed by the end of the year),
but a growing number of other institutional investors have also
approached the Group. They include Gecina, with which the Group
signed an innovative partnership in early October5 to develop 4,000
new homes over a four-year period in supply-constrained areas.
Conversely, retail sales were lower (down 28%
from 9M 2019) amidst the public health crisis. First-time buyers
were also affected by the introduction of stricter conditions for
mortgage approval, despite financing terms remaining highly
attractive (1.22% on average in September 2020). Individual
investors also showed a certain wait-and-see attitude in view of
the current economic situation.
In the third quarter of 2020 alone, reservations
were down 8% by volume and up 2% by value at 4,184 units and €925
million including VAT, due to the supply deficit. Retail sales were
down 17% compared to Q3 2019, partially offset by a 7% increase in
bulk sales over the same period.
After including subdivisions (901 units, down
28% compared to 9M 2019, in line with the change observed in the
individual client market) and international sales (432
reservations, up 29% relative to 9M 2019), business activity for
Residential Real Estate at end-September 2020 came to 14,968 units
reserved and €3,088 million including VAT, down 4% by volume and up
3% by value relative to 9M 2019.
The average price including VAT of new homes
reserved by Nexity’s individual clients at end-September 2020 was
€241 thousand, up 6% compared to end-September 2019, due both to
the increase in the average floor area per home (up 2%) and the
average price per square metre including VAT (up 4%), amid a
context of lower volumes and supply shortage.
The average level of pre-selling booked at the
start of construction work was very high (76% at end-September
2020). The supply of homes for sale dropped back 18% from its level
at end-December 2019 to stand at 7,271 units at end-September 2020,
due to a particularly swift take-up period of 4.1 months6
(compared with 5.1 months in 9M 2019). Unsold completed stock
(72 units) as a proportion of the total supply for sale
remained very low.
At end-September 2020, the business potential
for new homes7 was down 7% from year-end 2019 and came to 51,365
units. This represented potential revenue of €9.6 billion excluding
VAT. This change reflected the one-off impact of the spring
lockdown and changes in political leadership at the local
government level with respect to project structuring. Including
subdivisions and international operations, the business potential
of Residential Real Estate represented €12.1 billion in potential
revenue excluding VAT.
Real Estate Services to Individuals
Property Management for Individuals
The portfolio of units under management amounted
to over 878,000 units at 30 September 2020, a slight decrease (down
0.7% from end-December 2019. This portfolio stability was due in
part to the postponement of annual meetings of condominium owners
that should have been held during the second quarter, which delayed
the renewal of managing agent mandates.
Brokerage activities (lettings and sales by
Nexity agencies and Century 21 franchises) gradually returned to a
satisfactory level of business activity, continuing the strong
recovery observed in June 2020.
Serviced residences
Nexity Studéa had 124 student
residences under management at 30 September 2020, totalling more
than 15,000 units (remaining stable since end-December 2019). The
marketing campaign for the 2020/2021 university year was not
affected by the public health crisis. At end-September 2020, the
occupancy rate returned to its normal level and came to 98%.
Domitys opened 10 new
residences since the beginning of the year, bringing its portfolio
to 110 serviced residences and over 12,500 residential units.
At end-September 2020, the rolling 12-month occupancy rate was 85%,
representing a slight increase relative to end-December 2019
(84%).
Distribution activities
In the period to end-September 2020,
iSelection and PERL recorded 2,700 reservations
(down 21% compared to 9M 2019). This decrease was in line with the
contraction of the individual investor market.
COMMERCIAL CLIENTS – NEXITY ENTERPRISE
SOLUTIONS8
Commercial Real Estate
As a result of the public health crisis, take-up
of office space in the Paris region and the overall amount of
investment in commercial real estate in France in the period to
end-September 2020 decreased sharply (down 46% and 33%,
respectively, relative to 9M 2019).
Order intake in the first nine months of 2020
was €230 million excluding VAT.
Business potential for Commercial Real Estate6
totalled €2.8 billion at end-September 2020 (down 6% from year-end
2019). This includes the La Garenne-Colombes eco-business park
project for approximately one billion euros (Nexity’s share), which
has been secured under a purchase agreement since Q4 2019 and is
still scheduled to be sold in the fourth quarter.
Real Estate Services to Companies
At end-September 2020, the volume of units under
management totalled 19.5 million sq.m, stable with respect to
year-end 2019.
At end-September 2020, Morning – a leading
player in the Paris coworking space market – operated 24 coworking
spaces totalling more than 55,000 sq.m and corresponding to
around 6,500 workstations. Given the length of lease terms,
and in line with our expectations, the occupancy rate was slightly
lower than in June 2020 (69% versus 77%).
BACKLOG AND BUSINESS POTENTIAL AT 30
SEPTEMBER 2020
The Group’s backlog at end-September 2020 stood
at €5,719 million (€5,397 million for Residential Real Estate and
€321 million for Commercial Real Estate).
Furthermore, development business potential at
end-September 2020 totalled over €14.9 billion in revenue
(€12.1 billion for Residential Real Estate and €2.8 billion
for Commercial Real Estate), providing the Group with high
visibility on its future business levels.
SOCIAL AND ENVIRONMENTAL
RESPONSIBILITY
The public health crisis and the spring lockdown
revealed or accelerated several pre-existing underlying trends in
the real estate market: the desire to be closer to nature; the need
for modular, flexible living spaces and workspaces; the rise of
sustainable transport; and concerns about indoor air quality.
Nexity is committed to making cities inclusive
and sustainable and aims to respond to its different Clients’ needs
with immediate, real-world solutions adapted to the current
context, as well as more long-term solutions for which the Group
plans to accelerate the development and/or widespread rollout.
The Group wishes to include access to nature in
its residential real estate programmes. Today, 90% of programmes
delivered include outside living space and access to private or
shared green space. Eventually the Group aims to make this
100%.
For a number of years Nexity has offered its
condominium owner clients tailored energy renovation solutions to
help them actively manage expenses while improving everyday comfort
and the value of their property. In this regard, the French
government’s energy stimulus plan should boost the Group’s
activities.
Nexity’s commitment to pursuing an ambitious
low-carbon policy was illustrated in particular by the completion
of the Palazzo Nice Méridia, France’s tallest timber-frame office
building with E+C- (positive-energy, low-carbon) certification,
which is the first commercial building in France to obtain the E3C2
level.
In September 2020, Nexity obtained Great Place
to Work certification for the Group in France, recognising its
approach taken for a number of years focused on making the Group an
employer of choice.
9M 2020 CONSOLIDATED REVENUE –
OPERATIONAL REPORTING9
Revenue for the first nine
months of 2020 was €2,737 million, down €68 million or 2% compared
to 9M 2019, versus the 7% drop in H1 2020 compared to H1 2019. This
change resulted from an excellent performance achieved in the third
quarter (€1,021 million, up 6% relative to Q3 2019).
|
(in millions of euros) |
|
9M 2020 |
|
9M 2019 |
|
% change |
| Individual Clients |
|
2,292.5 |
|
2,452.2 |
|
-6.5% |
| Residential Real Estate* |
|
1,640.0 |
|
1,797.1 |
|
-8.7% |
| Real Estate Services to Individuals |
|
652.5 |
|
655.1 |
|
-0.4% |
|
Property Management for Individuals (incl. franchises) |
|
246.2 |
|
268.6 |
|
-8.3% |
|
Serviced residences |
|
248.2 |
|
223.7 |
|
+10.9% |
|
Distribution activities |
|
158.0 |
|
162.8 |
|
-2.9% |
| Commercial Clients |
|
444.6 |
|
351.7 |
|
+26.4% |
| Commercial Real Estate* |
|
368.6 |
|
282.4 |
|
+30.5% |
| Real Estate Services to Companies |
|
76.0 |
|
69.3 |
|
+9.6% |
| Other Activities |
|
0.0 |
|
0.9 |
|
n.s. |
|
Revenue |
|
2,737.1 |
|
2,804.9 |
|
-2.4% |
* Revenue generated by Residential Real Estate
and Commercial Real Estate from VEFA off-plan sales and CPI
development contracts is recognised using the
percentage-of-completion method, i.e. on the basis of notarised
sales and pro-rated to reflect the progress of all inventoriable
costs.
Revenue for the Residential Real
Estate division was down €157 million or 9% relative to 9M
2019. In the third quarter alone, revenue was up 12% with respect
to Q3 2019 and reflected business activity starting up again after
the lockdown period. Revenue generated by the German subsidiary
Pantera, acquired in March 2020, was not significant over the
period.
Real Estate Services to
Individuals posted revenue of €652 million for the period
ended 30 September 2020 (stable with respect to 9M 2019). In the
third quarter alone, revenue was up 6% with respect to Q3 2019.
Growth in the portfolio of serviced residences and the strong
recovery in distribution activities (up 13% in Q3 2020) offset
lower business activity in Property Management for Individuals and
franchises (down 2% in Q3 2020).
Revenue growth in Commercial Real
Estate (up €86 million or 31% compared to 9M 2019) mainly
arose from the sale of the completed Influence 2.0 building in
Saint-Ouen (Seine-Saint-Denis)10 in the second quarter.
Revenue from Real Estate Services to
Companies amounted to €76 million, up €7 million. While
Morning posted revenue growth for the first nine months of the year
(€5 million), revenue was affected by lower occupancy rates at its
shared workspaces than at the beginning of the year, following the
lockdown period.
REVENUE UNDER IFRS
In IFRS terms, revenue to end-September 2020
totalled €2,554 million, down 4% relative to 9M 2019. This figure
excludes revenue from joint ventures, in accordance with IFRS 11,
which requires joint ventures – proportionately consolidated in the
Group’s operational reporting – to be accounted for using the
equity method.
GUIDANCE FOR 2020 AND 2021
Nexity has good visibility, with a backlog of
nearly €6 billion, business potential totalling nearly €15 billion
in development revenue, and a strong cash position, with €919
million in cash and €355 million in confirmed undrawn bank
borrowing facilities. The Group, which suspended its guidance on 7
April 2020, has specified its guidance for 2020 and 2021, within
the still-fraught context of the public health crisis considering
the implementation of lockdown measures but excluding an extended
shutdown of construction sites:
2020 business activity
- New home reservations for Nexity: around 20,000 units,
expected to substantially outperform the market
- High level of Commercial real estate new orders
expected in Q4
Financial aspects
- Revenue of at least €4.2 billion in
2020, with a current operating margin
of around 10%, reaching a low
point
- For 2021, revenue growth of at least 5% relative to
2020 and a current operating margin of at least
7%
- Development pipeline (backlog + land under
options) of around €20 billion
- Net financial debt (before lease liabilities)
less than €1.2 billion at 31 December
2020.
FINANCIAL CALENDAR & PRACTICAL
INFORMATION
|
2020 annual results (after market close) |
Wednesday, 24 February 2021 |
|
Q1 2021 revenue and business activity (after market close) |
Wednesday, 28 April 2021 |
|
2021 Shareholders’ Meeting |
Wednesday, 19 May 2021 |
|
2021 interim results (after market close) |
Wednesday, 28 July 2021 |
A conference call on 9M 2020
revenue and business activity will be held today in English at 6:30
p.m. CET, which may be accessed using code 1236373 by calling one
of the following numbers:
|
- Calling from France |
+33 (0)1 76 77 22 57 |
|
- Calling from elsewhere in
Europe |
+44 (0)330 336 9411 |
|
- Calling from the United States |
+1 720 452 9217 |
The presentation accompanying this conference
will be available on the Group’s website from 6:15 p.m. CET and may
be viewed at the following address:
https://orange.webcasts.com/starthere.jsp?ei=1385552&tp_key=f1f7879e9b
The conference call will be available on replay
at https://www.nexity.fr/en/group/finance from the following
day.
Disclaimer
The information, assumptions and estimates that
the Company could reasonably use to determine its targets are
subject to change or modification, notably due to economic,
financial and competitive uncertainties. Furthermore, it is
possible that some of the risks described in Section 2 of the
Universal Registration Document filed with the AMF under number
D.20-0280 on 9 April 2020, as revised by an amendment filed with
the AMF on 28 April 2020, could have an impact on the Group’s
operations and the Company’s ability to achieve its targets.
Accordingly, the Company cannot give any assurance as to whether it
will achieve its stated targets and makes no commitment or
undertaking to update or otherwise revise this information.
AT NEXITY, WE AIM TO SERVE ALL OUR CLIENTS AS THEIR REAL
ESTATE NEEDS EVOLVE
With more than 11,000 employees and €4.5 billion
in revenue, Nexity is France’s leading integrated real estate
group, with a nationwide presence and business operations in all
areas of real estate development and services for individuals,
companies and local authorities.Our services platform is designed
to serve all our clients as their real estate needs evolve.Firmly
committed to focusing on people and how they are connected with
each other, their cities and the environment, Nexity was ranked the
number-one low-carbon real estate developer in France by BBCA in
2019, is a member of the Bloomberg Gender-Equality Index (GEI) and
obtained Great Place to Work certification in 2020.Nexity is listed
on the SRD, Euronext’s Compartment A and the SBF 120.
CONTACTSDomitille Vielle – Head of Investor
Relations / +33 (0)1 85 55 19 34 –
investorrelations@nexity.frGéraldine Bop – Deputy Head of Investor
Relations / +33 (0)1 85 55 18 43 – investorrelations@nexity.fr
ANNEX 1: OPERATIONAL REPORTING
Reservations: Residential Real Estate
|
Reservations (units and €m) |
|
9M 2020 |
|
9M 2019 |
|
% change |
| New homes
(France) |
|
13,635 |
|
14,043 |
|
-2.9% |
|
Subdivisions |
|
901 |
|
1,252 |
|
-28.0% |
|
International |
|
432 |
|
334 |
|
+29.3% |
|
Total reservations (number of units) |
|
14,968 |
|
15,629 |
|
-4.2% |
| New homes
(France) |
|
2,948 |
|
2,833 |
|
+4.1% |
|
Subdivisions |
|
74 |
|
101 |
|
-26.6% |
|
International |
|
65 |
|
53 |
|
+23.9% |
|
Total reservations (€m incl. VAT) |
|
3,088 |
|
2,987 |
|
+3.4% |
|
Breakdown of new home reservations by client – France |
|
9M 2020 |
|
9M 2019 |
| Homebuyers |
|
2,305 |
|
17% |
|
3,041 |
|
22% |
|
o/w: - First-time buyers |
|
1,970 |
|
14% |
|
2,420 |
|
17% |
|
-
Other homebuyers |
|
335 |
|
2% |
|
621 |
|
4% |
| Individual
investors |
|
4,680 |
|
34% |
|
6,721 |
|
48% |
| Professional
landlords |
|
6,650 |
|
49% |
|
4,281 |
|
30% |
|
o/w: - Institutional investors |
|
4,201 |
|
31% |
|
1,520 |
|
11% |
|
- Social
housing operators |
|
2,449 |
|
18% |
|
2,761 |
|
20% |
|
Total |
|
13,635 |
|
100% |
|
14,043 |
|
100% |
Real Estate Services to Individuals
|
Property Management for Individuals – Portfolio of units under
management |
|
Sept. 2020 |
|
Dec. 2019 |
|
Change |
|
- Condominium management |
|
704,000 |
|
709,000 |
|
-0.8% |
|
- Rental management |
|
174,000 |
|
175,000 |
|
-0.2% |
|
Franchise networks – Century 21 |
|
|
|
|
|
|
|
- Number of agencies |
|
899 |
|
898 |
|
+0.1% |
|
Serviced residences – Students – Studéa |
|
|
|
|
|
|
|
- Number of residences in operation |
|
124 |
|
124 |
|
0 |
|
- Rolling 12-month occupancy rate |
|
94.2% |
|
94.7% |
|
-0.5
pts |
|
Serviced residences – Seniors – Domitys |
|
|
|
|
|
|
|
- Total number of residences in operation |
|
110 |
|
100 |
|
+10 |
|
o/w: Number of residences opened more than 2 years ago
(France) |
|
72 |
|
58 |
|
+14 |
|
- Rolling 12-month occupancy rate |
|
85.0% |
|
84.2% |
|
+0.8
pts |
|
Distribution activities – iSelection and PERL |
|
Sept. 2020 |
|
Sept. 2019 |
|
|
|
- Total reservations |
|
2,700 |
|
3,406 |
|
-20.7% |
|
- Reservations on behalf of third parties |
|
1,521 |
|
1,929 |
|
-21.2% |
QUARTERLY FIGURES
Reservations: Residential Real Estate
| |
|
2020 |
|
2019 |
|
2018 |
|
Number of units |
|
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
| New homes
(France) |
|
4,184 |
5,794 |
3,657 |
|
7,794 |
4,557 |
5,603 |
3,883 |
|
6,600 |
4,757 |
4,634 |
3,618 |
| Subdivisions |
|
244 |
297 |
360 |
|
836 |
435 |
559 |
258 |
|
812 |
336 |
576 |
339 |
|
International |
|
193 |
74 |
165 |
|
307 |
161 |
137 |
36 |
|
170 |
80 |
75 |
40 |
|
Total (number of units) |
|
4,621 |
6,165 |
4,182 |
|
8,937 |
5,153 |
6,299 |
4,177 |
|
7,582 |
5,173 |
5,285 |
3,997 |
|
Value (€m incl. VAT) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New homes
(France) |
|
925 |
1,231 |
792 |
|
1,529 |
909 |
1,150 |
773 |
|
1,327 |
922 |
951 |
715 |
| Subdivisions |
|
19 |
25 |
30 |
|
76 |
35 |
46 |
20 |
|
63 |
28 |
51 |
28 |
|
International |
|
29 |
11 |
26 |
|
47 |
37 |
13 |
3 |
|
15 |
7 |
6 |
4 |
|
Total (€m incl. VAT) |
|
973 |
1,267 |
847 |
|
1,652 |
981 |
1,209 |
797 |
|
1,405 |
956 |
1,008 |
747 |
Revenue
| |
|
2020 |
|
2019 |
|
2018 |
|
(in millions of euros) |
|
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
| Individual Clients |
|
930.7 |
659.4 |
702.4 |
|
1,562.0 |
840.8 |
849.4 |
761.6 |
|
1,470.3 |
764.3 |
712.3 |
603.1 |
| Residential Real Estate |
|
690.1 |
459.0 |
490.9 |
|
1,251.9 |
615.2 |
629.4 |
552.5 |
|
1,133.8 |
545.3 |
524.2 |
445.1 |
| Real Estate Services to Individuals |
|
240.5 |
200.4 |
211.5 |
|
310.1 |
225.6 |
219.9 |
209.1 |
|
336.5 |
219.0 |
188.1 |
158.0 |
| Property
Management for Individuals (including
franchises) |
|
87.9 |
76.8 |
81.6 |
|
90.2 |
90.0 |
91.7 |
86.9 |
|
91.5 |
91.6 |
91.8 |
84.9 |
| Serviced
residences |
|
87.6 |
76.4 |
84.2 |
|
92.5 |
78.5 |
73.3 |
71.9 |
|
68.9 |
70.1 |
21.3 |
22.5 |
|
Distribution activities |
|
65.1 |
47.3 |
45.7 |
|
127.3 |
57.1 |
54.9 |
50.3 |
|
176.1 |
57.3 |
75.0 |
50.6 |
| Commercial Clients |
|
90.3 |
269.9 |
84.4 |
|
132.0 |
123.2 |
109.6 |
118.9 |
|
167.3 |
174.2 |
154.4 |
84.7 |
| Commercial Real Estate |
|
63.7 |
247.6 |
57.3 |
|
102.0 |
96.1 |
88.0 |
98.3 |
|
146.1 |
157.6 |
138.7 |
69.6 |
| Real Estate Services to Companies |
|
26.6 |
22.2 |
27.1 |
|
30.0 |
27.1 |
21.6 |
20.6 |
|
21.2 |
16.6 |
15.8 |
15.1 |
| Other Activities |
|
(0.0) |
(0.0) |
0.0 |
|
0.0 |
(0.0) |
0.4 |
0.5 |
|
0.9 |
1.5 |
1.4 |
0.5 |
|
Revenue |
|
1,021.0 |
929.3 |
786.8 |
|
1,694.0 |
964.0 |
959.4 |
881.1 |
|
1,638.5 |
940.1 |
868.1 |
688.3 |
Backlog
| |
|
2020 |
|
2019 |
|
2018 |
|
(in millions of euros, excluding VAT) |
|
9M |
H1 |
Q1 |
|
12M |
9M |
H1 |
Q1 |
|
12M |
9M |
H1 |
Q1 |
| Residential Real Estate – New homes |
|
5,214 |
5,095 |
4,623 |
|
4,455 |
4,328 |
4,321 |
4,109 |
|
3,979 |
4,065 |
3,724 |
3,451 |
| Residential Real Estate – Subdivisions |
|
183 |
191 |
173 |
|
185 |
182 |
172 |
160 |
|
182 |
188 |
201 |
182 |
| Residential Real Estate
backlog |
|
5,397 |
5,285 |
4,796 |
|
4,640 |
4,510 |
4,493 |
4,269 |
|
4,161 |
4,253 |
3,924 |
3,634 |
| Commercial Real Estate backlog |
|
321 |
373 |
398 |
|
456 |
401 |
269 |
222 |
|
308 |
379 |
332 |
409 |
|
Total Group backlog |
|
5,719 |
5,659 |
5,194 |
|
5,095 |
4,911 |
4,762 |
4,491 |
|
4,469 |
4,632 |
4,256 |
4,042 |
ANNEX 2: BREAKDOWN BETWEEN DEVELOPMENT AND
SERVICES
To offer an additional tool for analysing its
operational performance, the Group also provides a breakdown of its
revenue by business line, separating its Real Estate Development
activities (Residential Real Estate and Commercial Real Estate)
from its Services businesses (Property Management for Individuals
including franchises, serviced residences, distribution activities
and Real Estate Services to Companies).
Revenue
|
(in millions of euros) |
|
9M 2020 |
|
9M 2019 |
|
% change |
| Development* |
|
2,008.6 |
|
2,079.5 |
|
-3.4% |
| Residential Real Estate |
|
1,640.0 |
|
1,797.1 |
|
-8.7% |
| Commercial Real Estate |
|
368.6 |
|
282.4 |
|
+30.5% |
| Services |
|
728.4 |
|
724.5 |
|
+0.5% |
| Property Management for Individuals,
Franchises, Property Management for Companies |
|
297.2 |
|
318.3 |
|
-6.6% |
| Serviced Residences, Shared Office
Space |
|
273.2 |
|
243.4 |
|
+12.2% |
| Distribution |
|
158.0 |
|
162.8 |
|
-2.9% |
| Other Activities |
|
0.0 |
|
0.9 |
|
n.s. |
|
Total Group revenue |
|
2,737.1 |
|
2,804.9 |
|
-2.4% |
* Revenue generated by Residential Real Estate and Commercial
Real Estate from VEFA off-plan sales and CPI development contracts
is recognised using the percentage-of-completion method, i.e. on
the basis of notarised sales and pro-rated to reflect the progress
of all inventoriable costs.
GLOSSARY
Business potential: The total
volume of potential business at any given moment, expressed as a
number of units and/or revenue excluding VAT, within future
projects in Residential Real Estate (New homes, Subdivisions and
International) as well as Commercial Real Estate, validated by the
Group’s Committee, in all structuring phases, including the
programmes of the Group’s urban regeneration business (Villes &
Projets); this business potential includes the Group’s current
supply for sale, its future supply (project phases not yet marketed
on purchased land, and projects not yet launched associated with
land secured through options)
Current operating profit:
Includes all operating profit items with the exception of items
resulting from unusual, abnormal and infrequently occurring
transactions. In particular, impairment of goodwill is not included
in current operating profit
Development backlog (or order
book): The Group’s already secured future revenue,
expressed in euros, for its Residential Real Estate and Commercial
Real Estate businesses. The backlog includes reservations for which
notarial deeds of sale have not yet been signed and the portion of
revenue remaining to be generated on units for which notarial deeds
of sale have already been signed (portion remaining to be
built)
EBITDA: Defined by Nexity as
equal to current operating profit before depreciation, amortisation
and impairment of non-current assets, net changes in provisions,
share-based payment expenses and the transfer from inventory of
borrowing costs directly attributable to property developments,
plus dividends received from equity-accounted investees whose
operations are an extension of the Group’s business. Depreciation
and amortisation includes right-of-use assets calculated in
accordance with IFRS 16, together with the impact of neutralising
internal margins on disposal of an asset by development companies,
followed by take-up of a lease by a Group company
EBITDA after lease payments:
EBITDA net of expenses recorded for lease payments that are
restated to reflect the application of IFRS 16 Leases
Free cash flow: Cash generated
by operating activities after taking into account tax paid,
financial expenses, changes in WCR, dividends received from
companies accounted for under the equity method and net investments
in operating assets, and before repayment of lease liabilities
Gearing: Net debt divided by
consolidated equity
Joint ventures: Entities over
whose activities the Group has joint control, established by
contractual agreement. Most joint ventures are Residential or
Commercial Real Estate developments undertaken with another
developer (co-developments)
Land bank: The amount of
projects in France for which the Group has acquired development
rights, before obtaining a building permit and in some cases other
planning permissions, expressed as an amount recognised within the
working capital requirement
MALONE (Marché du Logement
Neuf): New home market in France, calculated by adding
together the number of retail sales (source: French
Commissioner-General for Sustainable Development – CGDD) and bulk
sales (source: French Federation of Real Estate Developers –
FPI)
Net profit before non-recurring
items: Group share of net profit restated for
non-recurring items such as change in fair value adjustments in
respect of the ORNANE bond issue and items included in non-current
operating profit (any goodwill impairment losses, remeasurement of
equity-accounted investments following the assumption of
control)
Operational reporting:
According to IFRS but with joint ventures proportionately
consolidated. This presentation is used by management as it better
reflects the economic reality of the Group’s business
activities
Order intake – Commercial Real
Estate: The total of selling prices excluding VAT as
stated in definitive agreements for Commercial Real Estate
programmes, expressed in euros for a given period (notarial deeds
of sale or development contracts)
Property Management for Individuals
(PMI): Management of rented properties on behalf of
individual clients (management for the owner of all relations with
the tenant, management of the sale of the property if applicable)
as well as the management of the common areas of apartment
buildings (as a managing agent) on behalf of condominium owners.
This also includes brokerage activities
Reservations by value (or expected
revenue from reservations) – Residential Real Estate: The
net total of selling prices including VAT as stated in reservation
agreements for development programmes, expressed in euros for a
given period, after deducting all reservations cancelled during the
period
Residences open for more than 2 years
(Domitys): Residences open since 1 January 2018
The financial data and indicators used in this press release –
including forward-looking information – are based on Nexity’s
operational reporting with joint ventures proportionately
consolidated.
2 See press release of 21 October 2020
3 French market for new homes, including bulk
sales. Source: ECLN for retail sales and FPI for bulk sales
4 See glossary on page 11
5 See press release of 1 October 2020
6 Take-up period: Available market supply / Reservations for the
last 12 months, expressed in months
7 See glossary on page 11
8 Source of market data: Immostat
9 See glossary on page 11
10 See press release of 17 April 2020
- 20201028_PR_Q32020_28102020 vdef2
Grafico Azioni Nexity (EU:NXI)
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Da Mar 2024 a Apr 2024
Grafico Azioni Nexity (EU:NXI)
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