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
GUIDANCE FOR 2020 AND 2021 SPECIFIED
 
Paris, Wednesday 28 October 2020, 5:45 p.m. CET                                                                      

9M 2020 enterprise exercise and income

  • Robust progress in our market shares for brand spanking new houses in France: +4.3 factors (16,4% in H1 2020 in comparison with 12,1% in H1 2019)
  • New dwelling reservations in France: 13,635 models representing €2,948 million (down 3% by quantity and up 4% by worth) 
  • Industrial Actual Property order consumption: €230 million excluding VAT
  • Improvement backlog: €5.7 billion (up 12% from end-December 2019)
  • Income: €2,737 million (down 2% from 9M 2019)

      
Steering for 2020 and 2021

2020 enterprise exercise

  • New dwelling reservations for Nexity: round 20,000 models, anticipated to considerably outperform the market
  • Excessive stage of Industrial actual property new orders anticipated in This autumn

Monetary elements

  • Income of not less than €4.2 billion in 2020, with a present working margin of round 5%, reaching a low level
  • For 2021, income progress of not less than 10% relative to 2020 and a present working margin of not less than 7%
  • Improvement pipeline (backlog + land underneath choices) of round €20 billion
  • Internet monetary debt (earlier than lease liabilities) lower than €1.2 billion at 31 December 2020

This steering relies on enterprise assumptions contemplating new lockdown measures however excluding an prolonged shutdown of building websites.

 

Alain Dinin, Chairman and CEO of Nexity, commented:

“After a begin to the yr marked by the shock of a widespread lockdown, Nexity noticed its enterprise exercise recuperate beginning in June, and this restoration has continued since then, with the second wave of the Covid-19 pandemic not considerably affecting our companies right this moment, though it has clearly weighed on French client confidence.

Our new dwelling reservations within the first 9 months of the yr have been virtually equal by quantity to these recorded in 9M 2019 and have been even increased by worth. French housing demand remained excessive, and Nexity demonstrated its capability to fulfill this demand. The introduction of stricter financial institution situations weighed on the solvency of lower-income shoppers, however robust demand from institutional traders helped us offset this influence. Because of Nexity’s geographic distribution, the range of our merchandise and consumer sorts, and our land sourcing capability, we confirmed and expanded our management place in our market. The bottom-breaking settlement we signed with Gecina to develop 4,000 houses collectively illustrates this.

Within the workplace house market, Nexity has confirmed the regular growth of the programmes in its portfolio, secured by commitments made by high-calibre traders and customers, and is making ready to answer the brand new context with distinctive options that stand out with regard to their environmental efficiency, carbon footprint and integration of companies and person options.

With a brand new organisation2, Nexity has entered a brand new section within the growth of our Property Administration for People actions, making the consumer our groups’ number-one precedence by creating shut relationships centered on high quality of service, providing options tailor-made to every consumer profile, upgrading our digital instruments and increasing our geographic protection to bolster our native presence.

For Nexity – France’s number-one timber-frame developer and the primary operator to realize E3C2 certification for a business constructing, deeply dedicated to championing an environmentally accountable method – the now central function of vitality renovation confirms the relevance of our Property Administration for People companies, with practically 20,000 buildings managed on behalf of condominium house owners.

Based mostly on these parts, and barring the implementation of lockdown measures leading to an prolonged shutdown of building websites, we at the moment are able to specify our steering:

  • Round 20,000 new dwelling reservations anticipated this yr
  • Income of not less than €4.2 billion in 2020, and progress of not less than 10% in 2021
  • Present working margin of round 5% (low level) in 2020 and not less than 7% in 2021
  • Improvement pipeline of round €20 billion
  • Internet monetary debt at 31 December 2020 lower than €1.2 billion.

Lastly, Nexity has launched an evaluation of the efficiency and capability to create worth of the Group’s completely different enterprise strains and their relevance in providing our shoppers the expanded vary of companies they’re searching for, which can be used to replace our strategic plan. This plan can be introduced to our completely different stakeholders once we publish our 2020 accounts.”

***

 

9M 2020 BUSINESS ACTIVITY

INDIVIDUAL CLIENTS 

Residential Actual Property

Within the first six months of 2020, the MALONE3 market totalled 57,732 reservations, down 26% with respect to end-June 2019. Market tendencies have been primarily held again by a provide deficit aggravated by the re-evaluation of native city planning insurance policies following the shift in energy that came about after the second spherical of native elections in France. This provide scarcity resulted in a rise in costs, even if they need to logically lower. On this context, Nexity demonstrated its resilience and its market share surged to 16.4%, 4 factors increased than at 30 June 2019 (12.1%).

For full-year 2020, Nexity anticipates a pointy downturn within the French marketplace for new houses4 (round 125,000 models, down round 25% in comparison with 2019), with a pointy decline within the retail gross sales sector as a result of lockdown interval and the continued public well being disaster, whereas bulk gross sales are anticipated to develop, spurred on by institutional traders’ urge for food for residential property. Nexity’s market share ought to proceed to develop due to its multi-product, multi-service and multi-brand technique; its geographical positioning, which is concentrated in Higher Paris and main cities, the place underlying demand may be very buoyant; and its unrivalled providing of services and products, enabling the Group to fulfill the wants of all sorts of shoppers.

At end-September 2020, internet new dwelling reservations in France totalled 13,635 models for €2,948 million together with VAT, down 3% by quantity and up 4% by worth with respect to end-September 2019.

This improve in reservations was primarily concentrated in bulk gross sales (up 55% relative to 9M 2019), and extra particularly the expansion in reservations made by institutional traders (which tripled relative to 9M 2019). This alteration mirrored Nexity’s means to adapt its providing to answer this demand. The agency dedication signed with CDC Habitat in April 2020 for 7,450 housing models contributed to reservations for the interval (2,880 reservations at end-September 2020, greater than 2,000 of which ought to have notarial deeds of sale signed by the top of the yr), however a rising variety of different institutional traders have additionally approached the Group. They embody Gecina, with which the Group signed an modern partnership in early October5 to develop 4,000 new houses over a four-year interval in supply-constrained areas.

Conversely, retail gross sales have been decrease (down 28% from 9M 2019) amidst the general public well being disaster. First-time consumers have been additionally affected by the introduction of stricter situations for mortgage approval, regardless of financing phrases remaining extremely enticing (1.22% on common in September 2020). Particular person traders additionally confirmed a sure wait-and-see perspective in view of the present financial state of affairs.

Within the third quarter of 2020 alone, reservations have been down 8% by quantity and up 2% by worth at 4,184 models and €925 million together with VAT, as a result of provide deficit. Retail gross sales have been down 17% in comparison with Q3 2019, partially offset by a 7% improve in bulk gross sales over the identical interval.

After together with subdivisions (901 models, down 28% in comparison with 9M 2019, in keeping with the change noticed within the particular person consumer market) and worldwide gross sales (432 reservations, up 29% relative to 9M 2019), enterprise exercise for Residential Actual Property at end-September 2020 got here to 14,968 models reserved and €3,088 million together with VAT, down 4% by quantity and up 3% by worth relative to 9M 2019.

The common worth together with VAT of latest houses reserved by Nexity’s particular person shoppers at end-September 2020 was €241 thousand, up 6% in comparison with end-September 2019, due each to the rise within the common flooring space per dwelling (up 2%) and the typical worth per sq. metre together with VAT (up 4%), amid a context of decrease volumes and provide scarcity.

The common stage of pre-selling booked in the beginning of building work was very excessive (76% at end-September 2020). The availability of houses on the market dropped again 18% from its stage at end-December 2019 to face at 7,271 models at end-September 2020, as a consequence of a very swift take-up interval of 4.1 months6 (in contrast with 5.1 months in 9M 2019). Unsold accomplished inventory (72 models) as a proportion of the whole provide on the market remained very low.

At end-September 2020, the enterprise potential for brand spanking new houses7 was down 7% from year-end 2019 and got here to 51,365 models. This represented potential income of €9.6 billion excluding VAT. This alteration mirrored the one-off influence of the spring lockdown and adjustments in political management on the native authorities stage with respect to undertaking structuring. Together with subdivisions and worldwide operations, the enterprise potential of Residential Actual Property represented €12.1 billion in potential income excluding VAT.

Actual Property Providers to People

Property Administration for People

The portfolio of models underneath administration amounted to over 878,000 models at 30 September 2020, a slight lower (down 0.7% from end-December 2019. This portfolio stability was due partly to the postponement of annual conferences of condominium house owners that ought to have been held through the second quarter, which delayed the renewal of managing agent mandates.

Brokerage actions (lettings and gross sales by Nexity businesses and Century 21 franchises) steadily returned to a passable stage of enterprise exercise, persevering with the robust restoration noticed in June 2020.

Serviced residences

Nexity Studéa had 124 scholar residences underneath administration at 30 September 2020, totalling greater than 15,000 models (remaining secure since end-December 2019). The advertising and marketing marketing campaign for the 2020/2021 college yr was not affected by the general public well being disaster. At end-September 2020, the occupancy price returned to its regular stage and got here to 98%.

Domitys opened 10 new residences because the starting of the yr, bringing its portfolio to 110 serviced residences and over 12,500 residential models. At end-September 2020, the rolling 12-month occupancy price was 85%, representing a slight improve relative to end-December 2019 (84%).

Distribution actions

Within the interval to end-September 2020, iSelection and PERL recorded 2,700 reservations (down 21% in comparison with 9M 2019). This lower was in keeping with the contraction of the person investor market.

COMMERCIAL CLIENTS – NEXITY ENTERPRISE SOLUTIONS8 

Industrial Actual Property

Because of the general public well being disaster, take-up of workplace house within the Paris area and the general quantity of funding in business actual property in France within the interval to end-September 2020 decreased sharply (down 46% and 33%, respectively, relative to 9M 2019).

Order consumption within the first 9 months of 2020 was €230 million excluding VAT.

Enterprise potential for Industrial Actual Property6 totalled €2.8 billion at end-September 2020 (down 6% from year-end 2019). This contains the La Garenne-Colombes eco-business park undertaking for about one billion euros (Nexity’s share), which has been secured underneath a purchase order settlement since This autumn 2019 and continues to be scheduled to be offered within the fourth quarter.

Actual Property Providers to Corporations

At end-September 2020, the quantity of models underneath administration totalled 19.5 million sq.m, secure with respect to year-end 2019.

At end-September 2020, Morning – a number one participant within the Paris coworking house market – operated 24 coworking areas totalling greater than 55,000 sq.m and equivalent to round 6,500 workstations. Given the size of lease phrases, and in keeping with our expectations, the occupancy price was barely decrease 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 Actual Property and €321 million for Industrial Actual Property).

Moreover, growth enterprise potential at end-September 2020 totalled over €14.9 billion in income (€12.1 billion for Residential Actual Property and €2.8 billion for Industrial Actual Property), offering the Group with excessive visibility on its future enterprise ranges.

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY

The general public well being disaster and the spring lockdown revealed or accelerated a number of pre-existing underlying tendencies in the actual property market: the will to be nearer to nature; the necessity for modular, versatile dwelling areas and workspaces; the rise of sustainable transport; and considerations about indoor air high quality.

Nexity is dedicated to creating cities inclusive and sustainable and goals to answer its completely different Purchasers’ wants with speedy, real-world options tailored to the present context, in addition to extra long-term options for which the Group plans to speed up the event and/or widespread rollout.

The Group needs to incorporate entry to nature in its residential actual property programmes. Immediately, 90% of programmes delivered embody exterior dwelling house and entry to non-public or shared inexperienced house. Finally the Group goals to make this 100%.

For quite a few years Nexity has provided its condominium proprietor shoppers tailor-made vitality renovation options to assist them actively handle bills whereas enhancing on a regular basis consolation and the worth of their property. On this regard, the French authorities’s vitality stimulus plan ought to enhance the Group’s actions.

Nexity’s dedication to pursuing an bold low-carbon coverage was illustrated specifically by the completion of the Palazzo Good Méridia, France’s tallest timber-frame workplace constructing with E+C- (positive-energy, low-carbon) certification, which is the primary business constructing in France to acquire the E3C2 stage.

In September 2020, Nexity obtained Nice Place to Work certification for the Group in France, recognising its method taken for quite a few years centered on making the Group an employer of alternative.

9M 2020 CONSOLIDATED REVENUE – OPERATIONAL REPORTING9

Income for the primary 9 months of 2020 was €2,737 million, down €68 million or 2% in comparison with 9M 2019, versus the 7% drop in H1 2020 in comparison with H1 2019. This alteration resulted from a superb efficiency achieved within the third quarter (€1,021 million, up 6% relative to Q3 2019).

(in thousands and thousands of euros)   9M 2020   9M 2019   % change
Particular person Purchasers   2,292.5   2,452.2   -6.5%
Residential Actual Property*   1,640.0   1,797.1   -8.7%
Actual Property Providers to People   652.5   655.1   -0.4%
Property Administration for People (incl. franchises)   246.2   268.6   -8.3%
Serviced residences   248.2   223.7   +10.9%
Distribution actions   158.0   162.8   -2.9%
Industrial Purchasers   444.6   351.7   +26.4%
Industrial Actual Property*   368.6   282.4   +30.5%
Actual Property Providers to Corporations   76.0   69.3   +9.6%
Different Actions   0.0   0.9   n.s.
Income   2,737.1   2,804.9   -2.4%

* Income generated by Residential Actual Property and Industrial Actual Property from VEFA off-plan gross sales and CPI growth contracts is recognised utilizing the percentage-of-completion methodology, i.e. on the idea of notarised gross sales and pro-rated to replicate the progress of all inventoriable prices.

Income for the Residential Actual Property division was down €157 million or 9% relative to 9M 2019. Within the third quarter alone, income was up 12% with respect to Q3 2019 and mirrored enterprise exercise beginning up once more after the lockdown interval. Income generated by the German subsidiary Pantera, acquired in March 2020, was not important over the interval.

Actual Property Providers to People posted income of €652 million for the interval ended 30 September 2020 (secure with respect to 9M 2019). Within the third quarter alone, income was up 6% with respect to Q3 2019. Development within the portfolio of serviced residences and the robust restoration in distribution actions (up 13% in Q3 2020) offset decrease enterprise exercise in Property Administration for People and franchises (down 2% in Q3 2020).

Income progress in Industrial Actual Property (up €86 million or 31% in comparison with 9M 2019) primarily arose from the sale of the finished Affect 2.0 constructing in Saint-Ouen (Seine-Saint-Denis)10 within the second quarter.

Income from Actual Property Providers to Corporations amounted to €76 million, up €7 million. Whereas Morning posted income progress for the primary 9 months of the yr (€5 million), income was affected by decrease occupancy charges at its shared workspaces than in the beginning of the yr, following the lockdown interval.

REVENUE UNDER IFRS

In IFRS phrases, income to end-September 2020 totalled €2,554 million, down 4% relative to 9M 2019. This determine excludes income from joint ventures, in accordance with IFRS 11, which requires joint ventures – proportionately consolidated within the Group’s operational reporting – to be accounted for utilizing the fairness methodology.

GUIDANCE FOR 2020 AND 2021

Nexity has good visibility, with a backlog of practically €6 billion, enterprise potential totalling practically €15 billion in growth income, and a powerful money place, with €919 million in money and €355 million in confirmed undrawn financial institution borrowing amenities. The Group, which suspended its steering on 7 April 2020, has specified its steering for 2020 and 2021, throughout the still-fraught context of the general public well being disaster contemplating the implementation of lockdown measures however excluding an prolonged shutdown of building websites:

2020 enterprise exercise

  • New dwelling reservations for Nexity: round 20,000 models, anticipated to considerably outperform the market
  • Excessive stage of Industrial actual property new orders anticipated in This autumn

Monetary elements

  • Income of not less than €4.2 billion in 2020, with a present working margin of round 10%, reaching a low level
  • For 2021, income progress of not less than 5% relative to 2020 and a present working margin of not less than 7%
  • Improvement pipeline (backlog + land underneath choices) of round €20 billion
  • Internet monetary debt (earlier than lease liabilities) lower than €1.2 billion at 31 December 2020.

 

FINANCIAL CALENDAR & PRACTICAL INFORMATION

2020 annual outcomes (after market shut) Wednesday, 24 February 2021
Q1 2021 income and enterprise exercise (after market shut) Wednesday, 28 April 2021
2021 Shareholders’ Assembly Wednesday, 19 Might 2021
2021 interim outcomes (after market shut) Wednesday, 28 July 2021

A convention name on 9M 2020 income and enterprise exercise can be held right this moment in English at 6:30 p.m. CET, which can be accessed utilizing code 1236373 by calling one of many following numbers:

–      Calling from France +33 (0)1 76 77 22 57
–      Calling from elsewhere in Europe +44 (0)330 336 9411
–      Calling from america +1 720 452 9217

The presentation accompanying this convention can be out there on the Group’s web site from 6:15 p.m. CET and could also be considered on the following handle: https://orange.webcasts.com/starthere.jsp?ei=1385552&tp_key=f1f7879e9b

The convention name can be out there on replay at https://www.nexity.fr/en/group/finance from the next day.

Disclaimer

The data, assumptions and estimates that the Firm might fairly use to find out its targets are topic to alter or modification, notably as a consequence of financial, monetary and aggressive uncertainties. Moreover, it’s potential that among the dangers described in Part 2 of the Common Registration Doc filed with the AMF underneath quantity D.20-0280 on 9 April 2020, as revised by an modification filed with the AMF on 28 April 2020, might have an effect on the Group’s operations and the Firm’s means to realize its targets. Accordingly, the Firm can’t give any assurance as as to whether it’s going to obtain its said targets and makes no dedication or endeavor to replace or in any other case revise this data.

AT NEXITY, WE AIM TO SERVE ALL OUR CLIENTS AS THEIR REAL ESTATE NEEDS EVOLVE

With greater than 11,000 workers and €4.5 billion in income, Nexity is France’s main built-in actual property group, with a nationwide presence and enterprise operations in all areas of actual property growth and companies for people, firms and native authorities.
Our companies platform is designed to serve all our shoppers as their actual property wants evolve.
Firmly dedicated to specializing in folks and the way they’re linked with one another, their cities and the atmosphere, Nexity was ranked the number-one low-carbon actual property developer in France by BBCA in 2019, is a member of the Bloomberg Gender-Equality Index (GEI) and obtained Nice Place to Work certification in 2020.
Nexity is listed on the SRD, Euronext’s Compartment A and the SBF 120.

CONTACTS
Domitille Vielle – Head of Investor Relations / +33 (0)1 85 55 19 34 – investorrelations@nexity.fr
Géraldine Bop – Deputy Head of Investor Relations / +33 (0)1 85 55 18 43 – investorrelations@nexity.fr

 

ANNEX 1: OPERATIONAL REPORTING

Reservations: Residential Actual Property

Reservations (models and €m)   9M 2020   9M 2019   % change
New houses (France)   13,635   14,043   -2.9%
Subdivisions   901   1,252   -28.0%
Worldwide   432   334   +29.3%
Whole reservations (variety of models)   14,968   15,629   -4.2%
New houses (France)   2,948   2,833   +4.1%
Subdivisions   74   101   -26.6%
Worldwide   65   53   +23.9%
Whole reservations (€m incl. VAT)   3,088   2,987   +3.4%
Breakdown of latest dwelling reservations by consumer – France   9M 2020   9M 2019
Homebuyers   2,305   17%   3,041   22%
o/w:   – First-time consumers   1,970   14%   2,420   17%
           – Different homebuyers   335   2%   621   4%
Particular person traders   4,680   34%   6,721   48%
Skilled landlords   6,650   49%   4,281   30%
o/w:  – Institutional traders   4,201   31%   1,520   11%
          – Social housing operators   2,449   18%   2,761   20%
Whole   13,635   100%   14,043   100%

Actual Property Providers to People

Property Administration for People – Portfolio of models underneath administration   Sept. 2020   Dec. 2019   Change
– Condominium administration   704,000   709,000   -0.8%
– Rental administration   174,000   175,000   -0.2%
Franchise networks – Century 21            
– Variety of businesses   899   898   +0.1%
Serviced residences – College students – Studéa            
– Variety of residences in operation   124   124   0
– Rolling 12-month occupancy price   94.2%   94.7%   -0.5 pts
Serviced residences – Seniors – Domitys            
– Whole variety of residences in operation   110   100   +10
o/w: Variety of residences opened greater than 2 years in the past (France)   72   58   +14
– Rolling 12-month occupancy price   85.0%   84.2%   +0.8 pts
Distribution actions – iSelection and PERL   Sept. 2020   Sept. 2019    
– Whole reservations   2,700   3,406   -20.7%
– Reservations on behalf of third events   1,521   1,929   -21.2%

QUARTERLY FIGURES

Reservations: Residential Actual Property

    2020   2019   2018
Variety of models   Q3 Q2 Q1   This autumn Q3 Q2 Q1   This autumn Q3 Q2 Q1
New houses (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
Worldwide   193 74 165   307 161 137 36   170 80 75 40
Whole (variety of models)   4,621 6,165 4,182   8,937 5,153 6,299 4,177   7,582 5,173 5,285 3,997
Worth (€m incl. VAT)                            
New houses (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
Worldwide   29 11 26   47 37 13 3   15 7 6 4
Whole (€m incl. VAT)   973 1,267 847   1,652 981 1,209 797   1,405 956 1,008 747

Income

    2020   2019   2018
(in thousands and thousands of euros)   Q3 Q2 Q1   This autumn Q3 Q2 Q1   This autumn Q3 Q2 Q1
Particular person Purchasers   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 Actual Property   690.1 459.0 490.9   1,251.9 615.2 629.4 552.5   1,133.8 545.3 524.2 445.1
Actual Property Providers to People   240.5 200.4 211.5   310.1 225.6 219.9 209.1   336.5 219.0 188.1 158.0
      Property Administration for People
     (together with 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 actions   65.1 47.3 45.7   127.3 57.1 54.9 50.3   176.1 57.3 75.0 50.6
Industrial Purchasers   90.3 269.9 84.4   132.0 123.2 109.6 118.9   167.3 174.2 154.4 84.7
Industrial Actual Property   63.7 247.6 57.3   102.0 96.1 88.0 98.3   146.1 157.6 138.7 69.6
Actual Property Providers to Corporations   26.6 22.2 27.1   30.0 27.1 21.6 20.6   21.2 16.6 15.8 15.1
Different Actions   (0.0) (0.0) 0.0   0.0 (0.0) 0.4 0.5   0.9 1.5 1.4 0.5
Income   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 thousands and thousands of euros, excluding VAT)   9M H1 Q1   12M 9M H1 Q1   12M 9M H1 Q1
Residential Actual Property – New houses   5,214 5,095 4,623   4,455 4,328 4,321 4,109   3,979 4,065 3,724 3,451
Residential Actual Property – Subdivisions   183 191 173   185 182 172 160   182 188 201 182
Residential Actual Property backlog   5,397 5,285 4,796   4,640 4,510 4,493 4,269   4,161 4,253 3,924 3,634
Industrial Actual Property backlog   321 373 398   456 401 269 222   308 379 332 409
Whole 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 supply an extra device for analysing its operational efficiency, the Group additionally supplies a breakdown of its income by enterprise line, separating its Actual Property Improvement actions (Residential Actual Property and Industrial Actual Property) from its Providers companies (Property Administration for People together with franchises, serviced residences, distribution actions and Actual Property Providers to Corporations).

Income

(in thousands and thousands of euros)   9M 2020   9M 2019   % change
Improvement*   2,008.6   2,079.5   -3.4%
Residential Actual Property   1,640.0   1,797.1   -8.7%
Industrial Actual Property   368.6   282.4   +30.5%
Providers   728.4   724.5   +0.5%
Property Administration for People, Franchises, Property Administration for Corporations   297.2   318.3   -6.6%
Serviced Residences, Shared Workplace House   273.2   243.4   +12.2%
Distribution   158.0   162.8   -2.9%
Different Actions   0.0   0.9   n.s.
Whole Group income   2,737.1   2,804.9   -2.4%

* Income generated by Residential Actual Property and Industrial Actual Property from VEFA off-plan gross sales and CPI growth contracts is recognised utilizing the percentage-of-completion methodology, i.e. on the idea of notarised gross sales and pro-rated to replicate the progress of all inventoriable prices.

 

GLOSSARY

Enterprise potential: The overall quantity of potential enterprise at any given second, expressed as quite a few models and/or income excluding VAT, inside future initiatives in Residential Actual Property (New houses, Subdivisions and Worldwide) in addition to Industrial Actual Property, validated by the Group’s Committee, in all structuring phases, together with the programmes of the Group’s city regeneration enterprise (Villes & Projets); this enterprise potential contains the Group’s present provide on the market, its future provide (undertaking phases not but marketed on bought land, and initiatives not but launched related to land secured by choices)

Present working revenue: Contains all working revenue gadgets except gadgets ensuing from uncommon, irregular and sometimes occurring transactions. Particularly, impairment of goodwill shouldn’t be included in present working revenue

Improvement backlog (or order ebook): The Group’s already secured future income, expressed in euros, for its Residential Actual Property and Industrial Actual Property companies. The backlog contains reservations for which notarial deeds of sale haven’t but been signed and the portion of income remaining to be generated on models for which notarial deeds of sale have already been signed (portion remaining to be constructed)

EBITDA: Outlined by Nexity as equal to present working revenue earlier than depreciation, amortisation and impairment of non-current property, internet adjustments in provisions, share-based fee bills and the switch from stock of borrowing prices instantly attributable to property developments, plus dividends acquired from equity-accounted investees whose operations are an extension of the Group’s enterprise. Depreciation and amortisation contains right-of-use property calculated in accordance with IFRS 16, along with the influence of neutralising inner margins on disposal of an asset by growth firms, adopted by take-up of a lease by a Group firm

EBITDA after lease funds: EBITDA internet of bills recorded for lease funds which might be restated to replicate the appliance of IFRS 16 Leases

Free money circulate: Money generated by working actions after bearing in mind tax paid, monetary bills, adjustments in WCR, dividends acquired from firms accounted for underneath the fairness methodology and internet investments in working property, and earlier than reimbursement of lease liabilities

Gearing: Internet debt divided by consolidated fairness

Joint ventures: Entities over whose actions the Group has joint management, established by contractual settlement. Most joint ventures are Residential or Industrial Actual Property developments undertaken with one other developer (co-developments)

Land financial institution: The quantity of initiatives in France for which the Group has acquired growth rights, earlier than acquiring a constructing allow and in some instances different planning permissions, expressed as an quantity recognised throughout the working capital requirement

MALONE (Marché du Logement Neuf): New dwelling market in France, calculated by including collectively the variety of retail gross sales (supply: French Commissioner-Basic for Sustainable Improvement – CGDD) and bulk gross sales (supply: French Federation of Actual Property Builders – FPI)

Internet revenue earlier than non-recurring gadgets: Group share of internet revenue restated for non-recurring gadgets reminiscent of change in honest worth changes in respect of the ORNANE bond problem and gadgets included in non-current working revenue (any goodwill impairment losses, remeasurement of equity-accounted investments following the idea of management)

Operational reporting: In response to IFRS however with joint ventures proportionately consolidated. This presentation is utilized by administration because it higher displays the financial actuality of the Group’s enterprise actions

Order consumption – Industrial Actual Property: The overall of promoting costs excluding VAT as said in definitive agreements for Industrial Actual Property programmes, expressed in euros for a given interval (notarial deeds of sale or growth contracts)

Property Administration for People (PMI): Administration of rented properties on behalf of particular person shoppers (administration for the proprietor of all relations with the tenant, administration of the sale of the property if relevant) in addition to the administration of the frequent areas of condominium buildings (as a managing agent) on behalf of condominium house owners. This additionally contains brokerage actions

Reservations by worth (or anticipated income from reservations) – Residential Actual Property: The web complete of promoting costs together with VAT as said in reservation agreements for growth programmes, expressed in euros for a given interval, after deducting all reservations cancelled through the interval

Residences open for greater than 2 years (Domitys): Residences open since 1 January 2018


 

The monetary knowledge and indicators used on this press launch – together with forward-looking data – are primarily based on Nexity’s operational reporting with joint ventures proportionately consolidated.

 

2 See press launch of 21 October 2020

 

3 French marketplace for new houses, together with bulk gross sales. Supply: ECLN for retail gross sales and FPI for bulk gross sales

 

4 See glossary on web page 11

 

5 See press launch of 1 October 2020

 

6 Take-up interval: Obtainable market provide / Reservations for the final 12 months, expressed in months

 

7 See glossary on web page 11

 

8 Supply of market knowledge: Immostat

 

9 See glossary on web page 11

 

10 See press launch of 17 April 2020

 

 



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