Nexity: 9M 2021 Business activity and revenue
Paris,
October 26, 2021, 5.45pm CEST
STRONG REVENUE
GROWTH:
+26% OVER
THE FIRST 9 MONTHSANNUAL TARGETS
CONFIRMED
Positive momentum in
reservations
- 13,180 new home
reservations at the end of September 2021: -3% in volume over 9
months, +6% in Q31
Encouraging signs for the
refilling of the
supply for sale
- Number of building
permits obtained: +28% vs. 2020, up for the first
time since 2019 (+8%)
Strong revenue
growth1: +26%
vs. 2020 and +22% vs. 2019
- Revenues of
€3.1bn for the new scope1, driven by residential
real estate development (+38%) and services (+10%)
- Strong rebound in
coworking activities (+20%), benefiting from the change in office
uses
Annual targets confirmed
- Around
20.000 new home reservations in 2021
- Revenues over
€4.4bn (excluding the contribution of disposed
activities), at least equal to 2020 on the new scope
- Current operating
profit of over €360m, on the new scope, equivalent
to an operating margin above 8%
Strong visibility on future activity
(pipeline of more than
€20bn)
- Business potential
of €13.8bn, i.e. 5 years of development
activity
- High backlog of
€6.6bn, i.e. 3 years of development activity
Key figures as of
end-September
2021
New home
reservations France |
9M 2021 |
Change21/20 |
|
Revenue
(€m) |
9M 2021 |
9M 2020 |
9M 2019 |
Change21 vs.
20 |
Change21 vs.
19 |
Volume (nb of
units) |
13,180 |
-3% |
|
Development |
2,492 |
1,907 |
1,966 |
+31% |
+27% |
of which retail sales |
8,140 |
+17% |
|
Residential Real estate |
2,133 |
1,543 |
1,691 |
+38% |
+26% |
of which bulk sales |
5,040 |
-24% |
|
Commercial Real estate |
359 |
364 |
275 |
-1% |
+31% |
|
|
|
|
Services |
583 |
531 |
547 |
+10% |
+7% |
Value
(€m) |
2,868 |
-3% |
|
Other
activities |
1 |
- |
1 |
ns |
ns |
of which retail sales |
1,962 |
+18% |
|
Revenue new scope
(1) |
3,077 |
2,438 |
2,514 |
+26% |
+22% |
of which bulk sales |
906 |
-30% |
|
Disposed activities |
211 |
299 |
291 |
|
|
|
|
|
|
Reported
revenue |
3,288 |
2,737 |
2,805 |
+20% |
+17% |
(1) Calculated on the new scope
basis, i.e. without H1 2021 disposed activities: Century 21
(consolidated until March 31st) and Ægide-Domitys (consolidated
until June 30th).
Véronique
BEDAGUE, Chief Executive Officer,
commented
"For Nexity, the third quarter confirms the
recovery momentum that has been underway since the beginning of the
year. The increase in our granted permits for the first time since
2019 confirms the expertise of Nexity's teams in developing the
most relevant projects to meet the challenges of tomorrow's cities.
This is an encouraging sign for the future. Our new home
reservations rose in the third quarter on a comparable basis.
Demand for residential real estate is still strong from
institutional investors. The extension of tax incentives scheme
beyond 2022 for individual investors and first-time buyers gives us
visibility to produce more housing. Nexity is confident in its
ability to deliver its 2021 targets despite the observed rise in
construction costs and certain supply delays. Our high level of
backlog allows us to look at the future with confidence and
ambition. In the face of climate, environmental and social
emergency, it is more than ever necessary to accelerate the
building of "the city over the city", and to support the renewal of
city centers whose infrastructures must be transformed to become
more resilient and service-oriented. Our financial capacity will
allow us to intensify our efforts with investments in this
direction starting this year, and prepare for future growth.”
Consolidated revenue
In Million
euros |
9M 2021 |
9M 2020 |
9M 2019 |
Change21 vs.
20 |
Change21 vs.
19 |
|
Q3 2021 |
Q3 2020 |
Q3 2019 |
Change21 vs.
20 |
Change21 vs.
19 |
Development |
2,492 |
1,907 |
1,966 |
+ 31% |
+ 27% |
|
815 |
703 |
682 |
+ 16% |
+ 20% |
Residential Real estate |
2,133 |
1,543 |
1,691 |
+ 38% |
+ 26% |
|
735 |
642 |
586 |
+ 15% |
+ 26% |
Commercial Real estate |
359 |
364 |
275 |
- 1% |
+ 31% |
|
80 |
61 |
96 |
+ 30% |
- 17% |
Services |
583 |
531 |
547 |
+ 10% |
+ 7% |
|
198 |
198 |
189 |
- 0% |
+ 5% |
Other activities |
1 |
- |
1 |
ns |
ns |
|
- |
- |
- |
ns |
ns |
Revenue - new scope |
3,077 |
2,437,6 |
2,514 |
+ 26% |
+ 22% |
|
1,013 |
901 |
871 |
+ 12% |
+ 16% |
Revenue - disposed activities (1) |
211 |
299 |
291 |
|
|
|
- |
120 |
94 |
|
|
Revenue |
3,288 |
2,737 |
2,805 |
+ 20% |
+ 17% |
|
1,013 |
1,021 |
964 |
- 1% |
+ 5% |
(1) The new scope of consolidation corresponds to the scope of
business excluding the contribution of disposed activities (Century
21 and Ægide-Domitys). Disposed activities have been consolidated
until March 31 for Century 21 and until June 30 for Ægide-Domitys.
In H1 2019, disposed activities include Guy Hoquet
l’Immobilier.
Note: Revenues from development activities are recognized using
the percentage of completion method for VEFA and property
development contracts, i.e. calculated on the basis of notarized
sales and pro rata to the stage of completion of all inventory
costs incurred.
Reported revenues (in operational reporting) for
the first 9 months 2021 were
€3,288 million, and €3,077 million on the new scope (excluding the
contribution of businesses sold in the first half), up €639 million
(+26%) compared to the end of September 2020 (which, as a reminder,
had been affected by a drop in revenues due to the impacts of the
Covid-19 health crisis of around €430 million). Revenues increased
by 22% compared to the first nine months of 2019, reflecting strong
growth in all of the Group's businesses over the past two
years.
In the third quarter alone,
revenues were up 12% compared with Q3 2020 given the good level of
revenues from residential and commercial real estate.
In Q4, revenues are expected to be lower than in
Q4 2020, mainly due to the base effect on revenues from commercial
real estate, which will not benefit from major orders (such as the
Eco-campus in La Garenne-Colombes, which have represented €400
million in Q4 2020, and for residential real estate, forecasts of
notarized deeds and completion rates that are expected to be lower
than last year given the portfolio of operations and economic
conditions.
Under IFRS, reported revenues
at the end of September 2021 amounted to €3,022 million, compared
with €2,554 million at September 30, 2020, an increase of 18%.
These revenues exclude revenues from joint ventures in application
of IFRS 11, which requires the equity accounting of proportionately
consolidated joint ventures in operational reporting.
Residential Real estate
Development
Nexity's activity is resilient, with
new home reservations in
France down slightly in volume (-3%) and in value (-3%) at
the end of September 2021, with an improvement in momentum in the
third quarter of 2021 (+6% in volume on the new scope). Given the
low level of commercial launches since the beginning of the year
and the still very rapid time-to-market (nearly 5 months), the
level of commercial supply remains at a low level at the end of
September (7,709 lots), but up 6% compared to June 30, 2021. This
trend should continue in the coming months given the
increase in building permits obtained by Nexity at
the end of September, up for the first time since
2019 (+8% compared to 2019, +28% compared to 2020 at the
same date). This performance outstrips the slight, but still
insufficient, recovery in the issuance of collective permits at the
national level (-6% vs. 2019, +7% vs. 2020). Solid level of
activity in planning and development (permits filed up by around
50% compared with 2020).
On the commercial front, the marked return of
individual investors, helped by financing conditions that are at
the lowest level on record, is being confirmed: individual
clients reservations rose by 17% in volume (8,140
reservations at end-September) with a slight increase in the
average selling price (+1.2% to €243,800 including tax), with
contrasting performances between the Paris region and medium-sized
cities in the rest of France, whose attractiveness is increasing.
As anticipated by the Group, bulk
sales continued to grow (+10% over the quarter,
i.e., nearly 40% of all reservations made since the beginning of
the year), and should accelerate in the fourth quarter given the
growing interest of institutional investors and pre-contracts.
Across the entire scope of Residential Real
estate Development (including subdivisions and international),
reservations for the first nine months of the year were up 2% in
volume and 1% in value, with particularly dynamic activity outside
France and a strong growth in reservations in Poland.
Total revenues amounted to
€2,133 million, up 38% compared with the end of September 2020,
when activity was penalized by the complete halt in construction at
the start of the health crisis. In the third quarter of 2021 alone,
revenues were up 15% to €735 million.
During the third quarter, Nexity was selected as
the winner of a number of large-scale mixed-use urban
projects, notably in Lyon-Confluence (69) (a mixed-use
development of housing and higher education and training
establishments with a total surface area of 33,000 sq.m.) and in
Sainte-Adresse near Le Havre (76) (a mixed-use development with a
total surface area of 22,000 sq.m. comprising apartments, a
serviced residence, premises for cultural purpose, retail units and
light industrial spaces). These projects are based on Nexity's
innovative environmental and social ambitions (bioclimatic
architecture that revolutionizes energy standards to radically
reduce energy consumption, integration into the local economy,
biodiversity refuges, mixed use and reversibility).
Commercial Real estate Development
As of end-September 2021,
Nexity recorded €335 million of order intake, of which €260 million
in the Paris region, thanks in particular to Reiwa, the Group's
future headquarters in Saint-Ouen, making it possible to be
confident about reaching the annual target of €400 million.
Commercial real estate development revenues at the end of September
were down slightly by 1.4% compared with the end of September 2020
at €359 million. In the third quarter of 2021
alone, revenues were up 30% compared with Q3 2020 to €80
million, given the progress of operations under construction. The
Eco-campus in La Garenne-Colombes, which is at the construction
start-up stage, is still making a small contribution to
revenue.
In a commercial real estate market that is still
below its pre-Covid levels, Nexity does not anticipate any major
order intake in the coming months. On the other hand, discussions
on new uses show the need to design new buildings in line with
these new requirements.
Services
At end-September 2021, Services revenue in the
new scope is up 10% compared with end-September 2020, at €583
million.
- Revenue from Property
Management activities is up 6% at end-September 2021, and
up 5% in the third quarter alone
- Revenue from property management
activities is up 5%, driven by services to companies, which grew by
6% with the acquisition of new mandates, and by the good recovery
in services to individuals (transactions and rentals), which grew
by 4%.
- Revenue from the Studéa student
residences business is also up 6% compared with the end of
September. The success of the marketing campaign for the 2021/2022
academic year has enabled the Group to achieve an occupancy rate of
close to 100% at the end of September with the resumption of
classroom studies, reflecting student demand for this type of
accommodation.
- Revenue from coworking activities
is sharply up by 20%, with a significantly improved occupancy rate
of 79% compared with 69% at the end of December 2020 (and June
2021). This growth is due to increased demand from users for
greater flexibility in line with changing usage, and Nexity is
particularly well placed to take advantage of this trend. This
business should continue to grow strongly with the change in office
uses and the dedicated offer that the Group is proposing with
Nexity@work.
- Revenue from the
Distribution business rose by 19%, reflecting the
good level of commercial activity with the interest of individual
investors in investing in real estate
A conference call will be held
today in English at 6.30 p.m. CET, available in
Our financial information section within the website
https://nexity.group/en/finance with the code 6606778# calling one
of the following numbers:
|
+33 (0)1 76 77 25 07 |
- Calling from elsewhere in
Europe
|
+44 (0)330 336 9434 |
- Calling from the United States
|
+1 646 828 8193 |
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=1500932&tp_key=04eb2d9b84The
conference call will be available on replay at
https://nexity.group/en/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.
ContactGéraldine Bop – Deputy
Head of Investor Relations / +33 (0)6 23 15 40 56 -
investorrelations@nexity.fr
ANNEX
OPERATIONAL REPORTING
Residential Real Estate - Quarterly
Reservations
|
2021 |
|
2020 |
|
2019 |
Number of units |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
New homes
(France) |
4,092 |
4,843 |
3,508 |
|
7,299 |
3,848 |
5,402 |
3,450 |
|
7,344 |
4,163 |
5,246 |
3,598 |
Subdivisions |
367 |
439 |
338 |
|
660 |
244 |
297 |
360 |
|
836 |
435 |
559 |
258 |
International |
247 |
404 |
249 |
|
503 |
193 |
74 |
165 |
|
307 |
161 |
137 |
36 |
Total new
scope |
4,706 |
5,686 |
4,095 |
|
8,462 |
4,285 |
5,773 |
3,975 |
|
8,487 |
4,759 |
5,942 |
3,892 |
Reservations
directly recorded by Ægide |
|
348 |
389 |
|
143 |
336 |
392 |
207 |
|
450 |
394 |
357 |
285 |
Total number of
reservations |
4,706 |
6,034 |
4,484 |
|
8,605 |
4,621 |
6,165 |
4,182 |
|
8,937 |
5,153 |
6,299 |
4,177 |
|
|
OK |
OK |
|
OK |
OK |
OK |
OK |
|
OK |
OK |
OK |
OK |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
2019 |
Value, in €m incl. VAT |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
New homes
(France) |
845 |
1,056 |
792 |
|
1,534 |
855 |
1,141 |
750 |
|
1,442 |
797 |
1,079 |
714 |
Subdivisions |
33 |
42 |
29 |
|
57 |
19 |
25 |
30 |
|
76 |
35 |
46 |
20 |
International |
48 |
72 |
41 |
|
91 |
29 |
11 |
26 |
|
47 |
37 |
13 |
3 |
Total new scope |
927 |
1,170 |
862 |
|
1,682 |
903 |
1,177 |
806 |
|
1,565 |
868 |
1,138 |
738 |
Reservations directly recorded by Ægide |
|
85 |
90 |
|
32 |
70 |
90 |
41 |
|
87 |
113 |
72 |
59 |
Total amount reserved (€m incl. VAT) |
927 |
1,255 |
952 |
|
1,713 |
974 |
1,267 |
847 |
|
1,652 |
981 |
1,209 |
797 |
Residential Real Estate - Cumulated
Reservations
|
2021 |
|
2020 |
|
2019 |
Number of units |
9M |
H1 |
Q1 |
|
FY |
9M |
H1 |
Q1 |
|
FY |
9M |
H1 |
Q1 |
New homes
(France) |
12,443 |
8,351 |
3,508 |
|
19,999 |
12,700 |
8,852 |
3,450 |
|
20,351 |
13,007 |
8,844 |
3,598 |
Subdivisions |
1,144 |
777 |
338 |
|
1,561 |
901 |
657 |
360 |
|
2,088 |
1,252 |
817 |
258 |
International |
900 |
653 |
249 |
|
935 |
432 |
239 |
165 |
|
641 |
334 |
173 |
36 |
Total new scope |
14,487 |
9,781 |
4,095 |
|
22,495 |
14,033 |
9,748 |
3,975 |
|
23,080 |
14,593 |
9,834 |
3,892 |
Reservations directly recorded by Ægide |
737 |
737 |
389 |
|
1,078 |
935 |
599 |
207 |
|
1,486 |
1,036 |
642 |
285 |
Total number of reservations |
15,224 |
10,518 |
4,484 |
|
23,573 |
14,968 |
10,347 |
4,182 |
|
24,566 |
15,629 |
10,476 |
4,177 |
Including new
homes France |
13,180 |
9,088 |
3,897 |
|
21,077 |
13,635 |
9,451 |
3,657 |
|
21,837 |
14,043 |
9,486 |
3,883 |
|
|
ECART |
OK |
|
OK |
OK |
OK |
OK |
|
OK |
OK |
OK |
OK |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
2019 |
Value, in €m incl. VAT |
9M |
H1 |
Q1 |
|
FY |
9M |
H1 |
Q1 |
|
FY |
9M |
H1 |
Q1 |
New homes
(France) |
2,693 |
1,848 |
792 |
|
4,281 |
2,747 |
1,892 |
750 |
|
4,031 |
2,589 |
1,793 |
714 |
Subdivisions |
104 |
71 |
29 |
|
131 |
74 |
55 |
30 |
|
177 |
101 |
66 |
20 |
International |
162 |
113 |
41 |
|
156 |
65 |
36 |
26 |
|
100 |
53 |
16 |
3 |
Total new scope |
2,959 |
2,032 |
862 |
|
4,568 |
2,887 |
1,983 |
806 |
|
4,308 |
2,743 |
1,875 |
738 |
Reservations directly recorded by Ægide |
175 |
175 |
90 |
|
233 |
201 |
131 |
41 |
|
330 |
244 |
131 |
59 |
Total amount reserved (€m incl. VAT) |
3,134 |
2,207 |
952 |
|
4,802 |
3,088 |
2,115 |
847 |
|
4,639 |
2,987 |
2,006 |
797 |
Including new homes France |
2,868 |
2,023 |
882 |
|
4,515 |
2,948 |
2,023 |
792 |
|
4,362 |
2,833 |
1,923 |
773 |
Breakdown of new home reservations by client – France |
9M 2021 |
9M 2020 |
Change21 vs.
20 |
Homebuyers |
2,447 |
19% |
2,305 |
17% |
6% |
o/w: - First-time buyers |
2,082 |
16% |
1,970 |
14% |
6% |
- Other homebuyers |
365 |
3% |
335 |
2% |
9% |
Individual investors |
5,693 |
43% |
4,680 |
34% |
22% |
Professional landlords |
5,040 |
38% |
6,650 |
49% |
-24% |
o/w: - Institutional investors |
1,735 |
13% |
4,201 |
31% |
-59% |
- Social housing operators |
3,305 |
25% |
2,449 |
18% |
35% |
Total |
13,18 |
100% |
13,635 |
100% |
-3% |
Services
|
|
September
2021 |
|
December
2020 |
|
Change |
Property Management |
|
|
|
|
|
|
Portfolio of
managed housing |
|
|
|
|
|
|
- Condominium
management |
|
|
|
703,000 |
|
|
Restatement of
disposed activities* |
|
|
|
18,000 |
|
|
- Condominium management
restated |
|
680,000 |
|
685,000 |
|
- 0.7% |
- Rental
management |
|
|
|
173,000 |
|
|
Restatement of
disposed activities* |
|
|
|
12,900 |
|
|
- Rental management restated |
|
159,000 |
|
160,100 |
|
- 0.7% |
Commercial real estate |
|
|
|
|
|
|
- Assets under
management (in millions of sq.m) |
|
20.4 |
|
19.7 |
|
+ 3.6% |
Serviced properties |
|
|
|
|
|
|
Student residences |
|
|
|
|
|
|
- Number of
residences in operation |
|
129 |
|
125 |
|
+ 4 |
- Rolling
12-month occupancy rate |
|
92.5% |
|
94.0% |
|
- 1.5 pt |
Shared office space |
|
|
|
|
|
|
- Number of
sites opened |
|
25 |
|
25 |
|
0 |
- Rolling
12-month occupancy rate |
|
70% |
|
69% |
|
- 5.0 pts |
Distribution |
|
9M 2021 |
|
9M 2020 |
|
Change |
- Total
reservations |
|
3,716 |
|
2,700 |
|
+ 38% |
- Reservations on behalf of third parties |
|
2,428 |
|
1,527 |
|
+ 59% |
|
|
|
|
|
|
|
* Apartments managed by Nexity’s Polish team in
Condominium management and by Domitys for rental management.
Revenue - Quarterly
|
2021 |
|
2020 |
|
2019 |
In million euros |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Development |
814.8 |
826.8 |
850.7 |
|
1,746.6 |
702.8 |
680.5 |
523.7 |
|
1,252.4 |
681.7 |
678.7 |
605.6 |
Residential Real
estate |
735.4 |
742.3 |
655.4 |
|
1,216.1 |
641.7 |
433.7 |
467.2 |
|
1,151.1 |
585.8 |
594.3 |
510.9 |
Commercial Real
estate |
79.5 |
84.5 |
195.3 |
|
530.5 |
61.0 |
246.7 |
56.6 |
|
101.37 |
95.8 |
84.4 |
94.7 |
Services |
197.9 |
209.2 |
176.2 |
|
236.8 |
198.0 |
161.2 |
171.4 |
|
259.6 |
189.3 |
184.9 |
173.0 |
Property
management |
140.2 |
129.1 |
126.5 |
|
129.3 |
133.3 |
114.2 |
126.1 |
|
136.8 |
132.9 |
130.2 |
123.1 |
Distribution |
57.7 |
80.0 |
49.7 |
|
107.5 |
64.8 |
47.0 |
45.3 |
|
122.8 |
56.5 |
54.7 |
50.0 |
Other
activities |
0.3 |
0.0 |
0.6 |
|
0.0 |
(.0) |
0.0 |
(.0) |
|
0.0 |
(0.0) |
0.5 |
0.4 |
Revenue - New scope |
1,013.0 |
1,036.0 |
1,027.5 |
|
1,983,4 |
900,8 |
841,7 |
695,2 |
|
1,512,1 |
871,0 |
864,0 |
779,0 |
Revenue
- disposed
activities
(*) |
|
107.1 |
104.2 |
|
134.2 |
120.2 |
87.6 |
91.6 |
|
181.9 |
93.5 |
95.3 |
102.1 |
Revenue |
1,013.0 |
1,143.1 |
1,131.7 |
|
2,117.6 |
1,021.0 |
929.3 |
786.8 |
|
1,694.0 |
964.5 |
959.4 |
881.1 |
* Disposed activities have been consolidated until March 31st
for Century 21 and until June 30th for Ægide-Domitys.
Backlog
|
2021 |
|
2020 |
|
2019 |
In million euros, excl. tax |
9M |
H1 |
Q1 |
|
12M |
9M |
H1 |
Q1 |
|
12M |
9M |
H1 |
Q1 |
Residential Real
estate |
5,610 |
5,504 |
5,641 |
|
5,789 |
5,397 |
5,285 |
4,796 |
|
4,640 |
4,510 |
4,493 |
4,269 |
Commercial Real
estate |
1,013 |
1,059 |
1,138 |
|
1,032 |
321 |
373 |
398 |
|
456 |
401 |
269 |
222 |
Total Backlog |
6,622 |
6,563 |
6,778 |
|
6,820 |
5,719 |
5,659 |
5,194 |
|
5,095 |
4,911 |
4,762 |
4,491 |
Restatement of
projects directly recorded by Ægide |
|
|
242 |
|
280 |
|
|
|
|
|
|
|
|
Total Backlog new scope |
6,622 |
6,563 |
6,536 |
|
6,540 |
|
|
|
|
|
|
|
|
GLOSSARY
Time-to-market: Available
market supply compared to reservations for the last 12 months,
expressed in months, for new home reservations segment in
France
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 Development (New homes,
Subdivisions and International) as well as Commercial Real Estate
Development, validated by the Group’s Committee, in all structuring
phases, including the projects 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 real estate development businesses (Residential Real
Estate Development and Commercial Real Estate Development). 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, amortization
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 amortization include 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, repayment of lease liabilities, changes in WCR,
dividends received from companies accounted for under the equity
method and net investments in operating assets
Joint ventures: Entities over
whose activities the Group has joint control, established by
contractual agreement. Most joint ventures are property
developments (Residential Real Estate Development and Commercial
Real Estate Development) undertaken with another developer
(co-developments)
Land bank: The amount
corresponding to acquired land development rights for projects in
France carried out before obtaining a building permit or, in some
cases, planning permissions
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 (disposal of significant operations, any goodwill
impairment losses, remeasurement of equity-accounted investments
following the assumption of control)
New scope: Scope of
consolidation excluding the contribution of disposed activities
(Century 21 and Ægide-Domitys) and capital gains. Disposed
activities have been consolidated until March 31 for Century 21 and
until June 30 for Ægide-Domitys. In H1 2019, disposed activities
include Guy Hoquet l’Immobilier.
Order intake:
Development for Commercial Real Estate: The total of selling prices
excluding VAT as stated in definitive agreements for Commercial
Real Estate Development projects, expressed in euros for a given
period (notarial deeds of sale or development contracts).
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
Pipeline: The pipeline is the
sum of business potential and backlog. it can be expressed as a
number of months or years of activity (like the backlog or the
potential) on the basis of a reference revenue (calculated on the
previous financial year for residential real estate and on the
average of the last 5 years for commercial real estate).
Property Management: Management
of residential properties (rentals, brokerage), common areas of
apartment buildings (as managing agent on behalf of condominium
owners), commercial properties, and services provided to users. The
Group’s business activities in the management and operation of
student residences as well as flexible workspaces are included in
this segment.
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 projects, expressed in euros for a given period, after
deducting all reservations cancelled during the period
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