Press release – 2023 turnover and activity
Sainte-Marie, February 6, 2024, 8:45 p.m.
2023 turnover: €84.9 million (+3.4%)
Sainte-Marie, La Réunion – CBo Territoria (ISIN: FR0010193979 – CBOT), a leading real estate player in Réunion for nearly 20 years, today announces its turnover for the financial year ending December 31, 2023.
Key figures 2023 2022 Variation Gross rental income 25,5 23,6 +8,0% Dt Commercial Property (hors Q/P SME) 22,7 20,5 +10,9% Dt Residential 1,7 2,2 -21,9% Dt other income 1,0 0,9 +15,3% Promotion 58,1 57,2 +1,5% Dt Residential 54,0 45,5 +18,8% Dt Tertiary 4,1 11,8 -65,5% Other activites 1,3 1,3 +2,7% Consolidated turnover (in €M) 84,9 82,1 +3,4% Tertiary income (Q/P SME) 3,7 3,3 +13,2% Tertiary economic rental income1 26,5 23,8 +11,3%
LAND
CBo Territoria, diversified tertiary property investment company (shops, offices, business premises, catering & leisure) records very strong growth in its gross rental income in 2023. In addition to the mechanical effect of indexation, the growth in gross rents reflects operational performance solid across all asset classes (occupancy rate high at 98%) and the entry into operation of the Combani shopping center inaugurated last October. Furthermore, growth was amplified by a non-recurring effect linked to a significant catch-up in variable rents.
In detail, the gross rental income from tertiary economic assets[1] increased by +11.3% to €26.5 million. The increase breaks down between +2.4% scope effect (+€0.6 million), +4.0% indexation effect (+€0.9 million), +4.9% d other effects (for +€1.2 million, including €0.9 million of non-recurring effect of variable rents).
CBo Territoria continued to sell its residential assets leading to a gradual decline in gross rents recorded (€1.7 million in 2023 compared to €2.2 million in 2022). Taking into account the sale to SHLMR/Action Logement in December 2023 of 135 lots located in Beauséjour (Anthurium, Canopée 2 and Venda residences), CBo Territoria now only owns 79 housing units.[2] as of December 31, 2023 (compared to 215 at the end of 2022), having generated €0.6 million in rent in 2023. Finally, the other gross rents (agricultural land and miscellaneous) amount to €1.0 million in 2023 (compared to €0.9 million in 2022).
PROMOTION
CBo Territoria is one of the main residential developers on the island of Reunion with an offer responding to all market segments: apartments in Intermediate Rental Housing (LLI) or Social Rental Housing (LLS) sold to institutional landlords, apartments in accession, also eligible for Pinel Overseas schemes[3] or Girardin Law for individuals and businesses, and building land.
The Group experienced sustained residential development activity this year in line with the commercial dynamics of 2021 and 2022. Thus, CBo Territoria delivered 68 lots and continued work on numerous programs now sold almost in full, in bulk or in retail. (395 batches in progress at the end of December[4]).
At the same time, the Group, which is generally cautious in terms of commercial launches in the current context, experienced mixed commercial activity depending on the products and customers:
- THE bulk sales increased to €16.9 million (+5.7% compared to 2022) and corresponds to the Jardin des Gardénias program sold to SHLMR / Action Logement. The order book contains an operation for €16.4 million, construction of which should be launched in the coming months;
- THE retail sales among individuals are quite logically down at €12.6 million (-42.9%) returning to their 2021 level (€11.2 million). Indeed, the very strong sales dynamic in 2022 (at €22.1 million) before the application of the reduction in Pinel DOM rates on January 1, 2023 and the delay in program launches have dried up the available supply. The end-of-year order book (€1.5 million) corresponds to the last batches available;
- finally the sales of building land fell by -37.8% to €11.6 million (for 67 lots). This development results on the one hand from an unfavorable base effect (record sales level in 2022 of €18.7 million and mainly linked to land located in the most sought-after tourist area) and on the other hand illustrates the multiple problems encountered by potential buyers to develop their real estate project in 2023 (financing difficulties linked to the increase in interest rates coupled with inflation in construction costs). The order book at the end of December fell by half compared to the end of 2022 to €6.2 million. The available supply therefore increases to €25.0 million (131 lots).
In total, the residential backlog stands at €29.0 million, compared to €41.9 million at the end of December 2022.
In 2023, Residential Promotion turnover (93% of consolidated Promotion turnover compared to 80% in 2022) stands at €54.0 million, up +18.8% year-on-year, and is characterized by a profound change in the product/customer mix.
The turnover from block sales (intermediate and social housing) at €23.3 million increased by +53% and now represents 43% of activity (+10 pts vs. 2022). Retail sales follow at €19.1 million, up +66%, which stems in particular from the rush on Pinel DOM programs at the end of 2022 and represent 35% of residential turnover (+10 pts). In return, sales of building land at €11.6 million were down -38% after a record year in 2022 where they represented 41% of turnover (compared to 22% in 2023) and had contributed to the strong increase in the Promotion margin in 2022.
Tertiary promotion turnover is limited due to the opportunistic nature of this activity. The 2023 turnover stands at €4.1 million (compared to €11.8 million in 2022) and corresponds to the completion of the EPSMR premises delivered last March and the sale of the last available tertiary lot in the Portal area.
Financial calendar 2024
2023 annual results : Wednesday March 6, 2024 (after trading) – Presentation meeting/webcast on March 7 at 11:30 a.m. (Paris)
About CBo Territoria (FR0010193979, CBOT)
A leading real estate player in Reunion Island for nearly 20 years, CBo Territoria has become a multi-regional development investment company specializing in tertiary assets (€300.8 million, or 81% of its total assets in value at the end of June 2023) . The Group, present across the entire real estate value chain (Developer, Promoter and Landlord), continues its development through the exploitation of its land reserves or the acquisition of land. CBo Territoria finances its development thanks in particular to its activity as a residential developer (collective buildings or plots) and incidentally tertiary and via the planned transfer of its residual residential assets to the SHLMR.
CBo Territoria is a yield property company eligible for the PEA PME listed on Euronext Paris (compartment C).
Responsible and committed to more sustainable real estate since its origin, CSR (Corporate Social Responsibility) is by nature in the company’s DNA. Its commitment and actions are recognized by the Gai?a-Index, the French benchmark index for the most virtuous small and medium-sized stocks in terms of CSR. Since its entry in 2016, CBo Territoria remains at the top of the rankings in its category.
More information on cboterritoria.com
INVESTOR CONTACTS
Caroline Clapier – Administrative and Financial Director – direction@cboterritoria.com
Agnès Villeret – Komodo – Tel. : 06 83 28 04 15 – agnes.villeret@agence-komodo.com
Contacts PRESSE
Finance: Agnès Villeret – agnes.villeret@agence-komodo.com
Corporate – Paris : Dina Morin – dmorin@capvalue.fr
Reunion: Catherine Galatoire – cgalatoire@cboterritoria.com
APPENDIX 1 – CONSOLIDATED TURNOVER
In M€ 2023 2022 V ariation GROSS RENTAL INCOME 25,5 23,6 +8,0% Dt Tertiary rental income (hors Q/P SME) 22,7 20,5 +10,9% Dt Residential rental income 1.7 2.2 -21.9% Dt Other rental income 1.0 0.9 +15.3% PROMOTION 58,1 57,2 +1,5% Dt Residential 54,0 45,5 +18,8% Dt Block Sales (Intermediate and Social) 23,3 15,3 +52,6% Dt Individual Customers (Intermediary – Pinel DOM) 19,1 11,5 +66,0% Dt Sales of building land 11,6 18,7 -37,8% Dt Tertiary 4,1 11,8 -65,5% Dt Tertiary buildings 3,3 6,8 Dt Sales of building land and miscellaneous 0,7 5,0 OTHER ACTIVITES 1,3 1,3 +2,7% CONSOLIDATED TURNOVER 84,9 82,1 +3,4%
ANNEX 2 – OPERATIONAL INDICATORS RESIDENTIAL PROMOTION
GLOBAL SALES ORDER BOOK as of 12/31 In M€ 2023 2022 Was (%) 2023 2022 Was (%) Residential 41,1 56,8 -27,5% 24,1 39,7 -24,7% Dt Block Sales (Intermediate and Social) 16,9 16,0 +5,7% 16,4 16,9 -3,0% Dt Individual Customers (Intermediary – Pinel DOM) 12,6 22,1 -42,9% 1,5 9,9 -79,7% Dt Sales of building land 11,6 18,7 -37,8% 6,2 12,9 -62,6%
GLOSSARY
Other activites : real estate and coworking services under the Lizine brand
Backlog : Turnover excluding tax remaining to be recorded from sales of residential and/or tertiary buildings carried out (excluding sales of building land)
Order book (or reservation stock) : total lots under reservation contract not recorded on the closing date expressed in value (sale price excluding tax) or in volume (in units)
SME : Equity-accounted company. Equity accounting is an accounting technique giving the possibility of replacing the book value of the shares of a company held by a parent company, by the valuation of the share that the parent company holds in the equity of the entity
Financial occupancy rate : Ratio between the market rent of rented space and the rent of the total space (= actual rent of rented space + market rent of vacant space)
Sales (global) – Promotion : total of recorded lots expressed in value (sale price excluding tax) or in volume (in units)
Building land – Promotion : Sales of building plots in residential or tertiary real estate
Block Sales – Promotion : Acquisition of an entire building or an entire real estate program by a single buyer
Retail Sales – Promotion : Acquisition of housing or a lot by an individual client
[1] Tertiary economic assets are made up of investment assets (excluding residential and land assets) and the share of assets held using the equity method (Q/P SME).
[2] Including the Catleya program (55 lots) which can be sold from the end of 2026.
[3] Or Pinel Dom, a tax exemption system with rates of 21.5%, 26% and 28.5% in 2023 depending on the rental commitment (6, 9 or 12 years) vs. 10.5%, 15% and 17, 5% in mainland France. In 2024, the rates are slightly revised to respectively 20%, 23% and 25% in Overseas Territories. In addition, the ceiling for tax loopholes in Reunion Island is €18,000, compared to €10,000 in mainland France.
[4] Spread over 3 large ZACs: 163 lots on Beauséjour in Sainte-Marie, 147 on Marie Caze in Saint-Paul, 85 on Roche Café in Saint-Leu.
2024-02-07 04:48:46
#CBO #TERRITORIES
