2023-2024: CONTINUATION OF THE STRATEGY OF FOCUSING ON BLOCK SALES
APPROXIMATELY 1,500 DWELLINGS SHOULD BE DELIVERED DURING THE YEAR
BACKLOG AT €580M, INCLUDING €454M WITH INSTITUTIONAL INVESTORS (BLOCK SALES), A HISTORICAL LEVEL
The CAPELLI Group, a European real estate developer listed on Euronext Growth Paris, today announces its turnover for the 2022-2023 financial year closed on March 31.
Points to remember:
The 2022-23 financial year was severely disrupted by a shortage of production linked to the lack of issuance of building permits in 2021 and 2022, a recurring increase in appeals and finally a surge in construction costs which led the Group to having to postpone commercial launches and postpone numerous construction sites so as not to suffer during the next 24 months from operations with sharply degraded margins.
Among these delays, of between 6 and 9 months, are programs which have since been the subject of announcements of block sales signatures such as Étampes (91), Lagny-sur-Marne (77), Courtry (77), … Others are being finalized with sales to be announced in the coming days and weeks.
At the same time, in a diffuse real estate market that has deteriorated sharply for several months for all real estate players due to the combination of the rise in interest rates and prices and a tightening of conditions for granting loans, and in accordance with the strategy decided and implemented over the past four years, the Group has accelerated its development aimed at:
– Focus its sales to qualified institutional investors (block sales) in order to secure the launch of its programs and accelerate the return on investment;
– Positioning itself on projects integrating a virtuous approach to rebuilding the city on the city with numerous programs that relate to the rehabilitation/renovation of real estate complexes (residential, offices or shopping centers) and urban recycling. As such, CAPELLI was a forerunner in this area and has real know-how, such as the program currently being delivered in Saint-André-Lez-Lille (nearly 200 housing units have already been delivered). In addition, almost all of the current programs relate to buildings or rehabilitation areas;
– Increase the diversity of its programs: residential, social, managed residences (seniors, students, tourism, etc.), coliving residences and coworking spaces, etc., in order to meet new needs and uses;
– Minimize inventory. In France, the inventory level is at a very optimized level and represents only 80 housing units;
Thus, overall, the Group has succeeded in achieving its bulk sales targets for the most part with institutional investors, who represent €100 million of the Group’s turnover (the proportion is 2/3 of sales to institutional investors in France) and now provide margins equivalent to those of the diffuse pre-covid. The broadcast segment, which has suffered greatly from the current environment, particularly in Luxembourg, explains the drop in activity.
In this context, the Group achieved a turnover of €202 million for the whole financial year (unaudited), down from the previous financial year which stood at €290.3 million. Activity in France stands at €145.9 million compared to €215.1 million last year and international activity (Switzerland and Luxembourg) represents €56.2 million compared to €75 million in 2021 -2022. Consequently, the Group will announce a net loss for the full year but should remain profitable at the operational level.
Better visibility for the coming months thanks to the bulk sales strategy developed over several years
For the coming months, in a diffuse real estate market which should remain weak, the Group will continue to focus its strategy on programs subject to block sales. The share of the backlog with institutions represents 80%. In France this proportion is 85%.
Several signatures with institutional investors specializing in real estate should thus be announced in the coming weeks, including:
Several programs in Ile-de-France: Aubervilliers (93) where the Group is in the process of delivering around 200 housing units, Moiselles (95), Livry-sur-Seine (77), etc. illustrating the Group’s dynamic in this region and the quality policy (zero reserve objective on delivery) adopted by the Group to achieve the criteria of excellence expected by institutional investors.
But also in territories where the Group is well established: Saint-Germain-aux-Monts d’Or (69), Bron (69), Saint Priest (69), Nice (06), Roquevaire (13), Bordeaux ( 33), …
At the same time, emblematic programs are entering a phase of realization such as La Scène des Loges (Paris 15
th
) whose work will begin at the end of the year (expected turnover of €130 million) or South Village in Howald in Luxembourg (expected turnover of €200 million) where the Group has just finalized, with a world leader in coliving , a 15-year lease for more than 80 units.
As part of this strategy aimed at positioning itself on large-scale programs, the Group should also soon announce the signature of a block sale of €100 million in Luxembourg with a renowned international institutional investor.
Finally, in Luxembourg, the programs under construction (diffused) show a small commercial dynamic allowing to maintain a constant rhythm of reservations and acts.
To date, the backlog amounts to €580 million, including €454 million in block. The level of commercialization of the programs represents more than 92% of the lots reserved or recorded.
“Real estate market players have been going through a brutal market downturn for several months and a complex environment linked to the consequences of the post-covid period, the conflict in Ukraine and a rise in interest rates and inflation, while the whole of the profession had structured itself to respond to strong demand and a growing need for housing to compensate for a shortage of supply which persists and worsens. In this environment, we have made choices that have weighed occasionally on our growth trajectory and our performance but which do not call into question the strategy that we have adopted for 4/5 years which consists in favoring block sales to investors. institutions in order to i/ secure the launch of our programs, ii/ optimize our working capital and therefore reduce our debt, iii/ improve our visibility. This approach, which guarantees us margins today equivalent to those we achieved in broadcast, is, we are convinced, a winning strategy in the medium term. Our priorities for the current financial year will focus on adapting our structures to the current context, resuming rapid program rotation and maintaining our margins at historic levels. »
concludes Christophe Capelli, Chairman and CEO.
Next release:
– 2022-2023 annual results: June 28, 2023, after market close.
Lexicon :
Backlog: The backlog corresponds to the sum of reservations in the Group’s portfolio and lots sold (past notarial deed) over the current financial year, multiplied by their selling price excluding tax. The backlog represents the potential turnover for the current financial year and the following ones. Indeed, given the sales process, a reservation can be transformed at a deadline ranging from 3 to 24 months.
About the CAPELLI Group
With more than 45 years of experience in the design of living spaces, the Group has focused for more than 15 years on the real estate development of housing. Active through 7 locations in Europe (Paris, Lyon, Lille, Bordeaux, Marseille, Luxembourg and Geneva), the Group addresses 4 types of clients: owner-occupiers, natural person investors, institutional investors and social landlords. In addition to its housing offer (collective, residential tower, duplex villa, rehabilitation), the Group develops turnkey products such as managed residences (students, seniors, hotels, business, etc.). Its sustained historical organic growth is based on the quality of its 165 employees internalizing a great deal of know-how with land developers, design offices and internal sales forces. The Group is managed and 73.74% owned by the Capelli family
Listed on Euronext Growth Paris – Isin Code: FR0012969095 – ALCAAP
contacts
CAPELLI Group
Christophe Capelli – Chairman and CEO
Rodolphe Peiron – Deputy Managing Director
Julien Buronfosse – Strategy and Financing Director
Phone: + 33 (0)4 78 47 49 29
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Regulated information:
Inside information:
– Information on annual turnover
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