Nexity: 9M 2013 Revenue and Business Activity

                Nexity: 9M 2013 Revenue and Business Activity

Paris La Défense, Tuesday, 29 October 2013

  oRise of 2% in value of net new home reservations in France to
    €1.3billionincl.VAT over the first nine months of the year, for a
    volume of 6,540units (versus 7,139units at end_September2012)
  oAnnual target exceeded for order intake in Commercial real estate:
    €409million already recorded at end_September
  oBacklog up 7% at end-September compared to end-2012 (at €3.3 billion),
    equivalent to 16months' revenue from development activities^[1]
  oRevenue for the first nine months of the year totalling €1.9 billion, up
    1.9% compared to the same period in 2012

Outlook for 2013 confirmed

  oResidential: around 9,000 net new home reservations in an expected market
    of between 70,000 and 75,000 units
  oCommercial: order intake of more than €400million (versus an initial
    target of €350 million)
  oConsolidated revenue for 2013 expected to exceed €2.6 billion
  oCurrent operating profit targeted for 2013 at over €180 million
  oBased on its outlook, the Company will consider proposing to its
    shareholders the renewal of a €2 per share dividend in 2014

             Alain Dinin, Chairman and CEO of Nexity, commented:

"Over the past year or so, France has taken quite a few steps to support the
new homes market. These include the Duflot buy_to_let investment scheme, the
enhanced 'PTZ+' interest_free loan, and a reduction in the VAT rate for social
housing. In terms of urban planning laws and stimulus for new home starts, the
latest legislation is definitely a move in the right direction, namely with
regard to recent ordinances and certain provisions of the ALUR act. But that
will probably not be enough, in the short term, to reverse the downward trend
in construction starts. Further confirmation of this trend has just come from
the decline in building permit requests (-16% over the twelve months to

Unfortunately, based on the ongoing debate in France's parliament over such
issues as the 2014 budget and ALUR act, it does not look as though any of the
upcoming legislation will spur a significant short_term market rebound. The
actual attractiveness of the new 'intermediate' social housing status for
institutional investors is still hard to measure, and could fail to offset the
ALUR act's damaging effects on residential real estate investment. We may have
to wait until local elections are over in March 2014 before persistent market
weakness drives the government to take more immediately effective action for

It is no secret that our economy genuinely needs a healthier new homes market
to help galvanize GDP growth, employment and tax receipts. Other countries
such as the United Kingdom and the United States have shown us that economic
recovery and a robust, dynamic real estate market go hand in hand.

Nexity's confirmation of annual targets reflects resilience and a strong
business model. We are adapting to changes in the legislation, while also
continuing to analyse market opportunities such as buildable land and external
growth. Via our process of constant innovation, we are pursuing the
development of new offerings, products and market segments."



Consolidated revenue for the first nine months of the year totalled €1,887
million (+1.9% compared to the first nine months of 2012)^[2].

€ millions                          9M 2013  9M 2012  Change %
Residential real estate             1,195.9  1,200.7     -0.4%
Commercial real estate                355.9    313.2    +13.6%
Services and Distribution Networks    330.3    332.7     -0.7%
Other activities                        4.5      4.3     +3.5%
Total Group revenue*                1,886.6  1,851.1     +1.9%

* Revenue generated by both the Residential (excluding Italy) and Commercial
real estate divisions is calculated using the percentage-of-completion method,
i.e. on the basis of notarised sales pro-rated to reflect the progress of
committed construction costs.

· Residential real estate revenue totalled €1,196 million, holding
nearly steady (-0.4%) compared to the same period in 2012. The increase in
international revenue (higher delivery volumes in Italy, where revenue is
recognized on a completed contract basis) largely offset the decrease in
revenue from new homes in France.

· Commercial real estate revenue (€356 million) benefited from the
high order intake recorded in 2011 and was up sharply in comparison with the
first nine months of 2012 (+14%). It included substantial contributions from
the Solstys (Rocher-Vienne) and T8 projects in Paris. The increased revenue
recorded for the first nine months of the year is not representative of the
revenue that will be recorded for the whole year. This is because a large
number of projects, including the two mentioned above, will be delivered
sometime during the fourth quarter of 2013 and will therefore not generate
revenue over the entire quarter.

· Revenue from Real estate services totalled €308 million, down 1%
compared to the first nine months of 2012. Additional revenue from the
consolidation of Icade Résidences Services in the first quarter of 2013
(whereas it was only consolidated as from Q2 in 2012) partially offset the
absence of revenue from the services businesses in Germany sold in late 2012,
as well as the revenue impact of erosion in the condominium management
portfolio and a brokerage slowdown.

9M 2013 Business Activity

Residential real estate

In line with its expectations for the financial year as a whole, the Group
recorded a 9% decline in net reservations for new homes and subdivisions in
France and abroad over the first nine months of 2013, compared to the same
period last year, with 7,957 units^[3] reserved. In value terms, net
reservations for new homes and subdivision lots in France and abroad were down
2% to €1,441 million including VAT.

After reaching a historic low in June (2.89% on average excluding insurance),
mortgage rates have edged upward since July, reaching an average of 3.00% in
September (source: Observatoire Crédit Logement). The increase has been
meagre, with rates still particularly low in absolute terms. This is unlikely
to change in the short term, based on the ECB's announcements about keeping
interest rates low for an extended period of time, which should help the
market considerably. But the new home market in France is still feeling the
impact of the weakened economic environment (rise in unemployment, economic
recession, increased tax burden, etc.) and its toll on consumer morale and
purchasing power, as well as the fiscal and regulatory uncertainty (ALUR bill)
that has hampered investment decision_making.

In France, net reservations for new homes registered by the Group in the first
nine months of the year were down 8% in volume terms but rose in value terms
(+2%), essentially due to a sharp drop in the volume of bulk sales to
professional landlords (-23%) compared to last year, and to the growing
proportion of sales in the areas of tightest supply (45% in zones A and Abis,
versus 40% over the first nine months of 2012), which also carried higher
average prices.

The first nine months of the year also saw fewer commercial launches (-18% by
number of units compared to the same period one year earlier), especially in
the first quarter, due to the need to redefine the schedule for certain
operations and renegotiate certain land deals to best align with the
requirements of the new Duflot buy-to-let investment scheme (published at the
very end of 2012). Based on assumed project launch figures for the fourth
quarter, the total number of launches over the whole financial year should
match initial annual Group forecasts.

New home and subdivision reservations - France
(units and €m)                                      9M 2013  9M 2012  Change %
New homes (number of units)                           6,540    7,139     -8.4%
Subdivisions (number of units)                        1,339    1,382     -3.1%
Total new home and subdivision reservations
(number of units)                                     7,879    8,521     -7.5%
New home reservations (€m incl. VAT)                  1,311    1,285     +2.1%
Subdivision reservations (€m incl. VAT)                 106      107     -0.9%
Total new home and subdivision reservations (€m       1,417    1,392     +1.8%
incl. VAT)

The drop in net new home reservations registered over the first nine months of
the year was caused solely by a decrease in sales to professional landlords
(-23%), while sales to individuals (home buyers and individual investors)
remained stable overall (4,438 reservations at end-September 2013 versus 4,404
reservations at end-September 2012). The first half of 2012 had seen
especially high sales to professional landlords, but it is possible that some
of them have adopted a wait_and_see attitude this year, in anticipation of the
new 2014 VAT rate on social housing.

Breakdown of new home reservations by
client - France (number of units)       9M 2013        9M 2012        Change %
Home buyers                               2,180  33%     1,946  27%     +12.0%
             o/w: - first-time buyers    1,689  26%    1,507  21%    +12.1%
                  - other home buyers       491   7%      439   6%    +11.8%
Individual investors                      2,258  35%     2,458  34%      -8.1%
Professional landlords                    2,102  32%     2,735  38%     -23.1%
Total new home reservations               6,540 100%     7,139 100%      -8.4%

Excluding bulk sales to professional landlords and Iselection sales, the
average price of homes sold in France rose by 4.2%, consistent with an
increase in average floor area (+1.2%) and average price per square metre
(+2.9%). This uptrend is mainly due to the geographic mix of sales. More sales
occurred in the Paris region, where average prices are higher.

Average sale price & floor area* - France  9M 2013  9M 2012 Change %
Average home price incl. VAT per sq.m (€)    3,876    3,766    +2.9%
Average floor area per home (sq.m)            57.5     56.8    +1.2%
Average price incl. VAT per home (€k)        222.9    214.0    +4.2%

  * excluding bulk sales and Iselection

For new residential developments in France, the average pre-sale rate recorded
at the time construction work was launched remained very high (75% on average
over the first nine months of the year), and unsold completed stock held by
the Group remained very low (79 units versus 60 units at end_September 2012).

The business potential^[4] of the Group's Residential real estate division for
new homes in France shrank 5% compared to 30 September 2012, coming in at
approximately 23,500 units.

Subdivision reservations totalled 1,339 units, down 3% compared to the first
nine months of 2012, while the average price of net reservations by private
individuals climbed 3% to €78.6 thousand. The drop in volume was part of a
general contraction affecting the detached houses market, the main driver for
this business. According to Union des Maisons Françaises^[5], sales of
detached houses were down 16% at end_July compared to the previous 12month
period. The business potential for subdivisions rose 15% compared to
end_September 2012, reaching close to 10,600 units.

Commercial real estate

· Transaction volumes in the French commercial investment market
during the first nine months of 2013 reached €10.7 billion, a 15% year-on-year
increase. As investors began expanding to a wider geographic area, the third
quarter saw major deals in the area around Paris, such as Nexity's Éco Campus
joint development in Châtillon. Over the year, investment volumes should total
between €15 and €16 billion, as they did in 2011 and 2012 (source: CBRE).
Business activity recorded at end_September mainly involved existing and
rented properties. The market showed little appetite for unsecured (i.e. not
partially or totally pre_let) projects involving either new or refurbished
buildings. Over the first nine months of the year only one "speculative" (en
blanc) VEFA off_plan project was sold (source: JonesLangLaSalle). With
economic forecasts still gloomy and the market interested only in pre_let
projects, which are more complex and time_consuming to put together, new_build
volumes are not expected to pick up in 2014.

· The weakened economic environment weighed on take-up in the Paris
region, which totalled 1.3 million sq.m at end_September 2013, down 30%
compared to the same period in 2012, particularly affecting transactions in
excess of 5,000 sq.m. Over the year, take-up in the Paris region is expected
to be even lower than the levels predicted in July, at around 1.8 million sq.m
versus 2.4 million sq.m last year, i.e. a drop of roughly 25% (source: CBRE).

· The Group has met and exceeded its annual order intake target of
€350million, with €409million in new orders recorded over the first nine
months of the year (including the ÉcoCampus project in Châtillon and the
LeNuovo project in Clichy, both of which were totally or partially pre_let
under firm-term leases). Major orders placed in the third quarter included the
ÉcoCampus project and an office_building refurbishment in Paris' 8^th
arrondissement on behalf of an institutional investor.

Services and Distribution Networks

In Real estate services, the portfolio of units under management for
individuals amounted to 792,700 units at 30 September 2013 (a 2.9% attrition
rate compared to end_December2012). This decrease mainly affected the
condominium management business and was driven by the natural attrition rate,
insufficiently offset by new appointments entering the portfolio. In real
estate services to companies, total floor space under management amounted to
11.2 million sq.m at end_September 2013. The new management team is taking
measures to enhance the business model to improve operating profitability. If
the ALUR bill passes in its current form, certain provisions directed at the
rental and condominium management professions will alter the economic
landscape and require further changes to the business model.

In Distribution Networks, the number of promissory sale agreements recorded in
the first nine months of the year by Century21 and Guy Hoquet l'Immobilier
was up 2.4% compared to the same period last year, while the market for
existing property is expected to decline by 9% over the year, to 645,000
transactions (source: CréditFoncierImmobilier^[6]). The number of franchised
agencies totalled 1,281 at end_September 2013, compared to 1,325 at
end_December 2012.

Backlog - Order book at 30 September 2013

€ millions (excluding VAT)      30 September 2013  31 December. 2012  Change %
Residential real estate - New
homes*                                      2,582              2,449     +5.4%
Residential real estate -
Subdivisions                                  267                266     +0.2%
Residential real estate
backlog                                     2,849              2,715     +4.9%
Commercial real estate backlog                453                383    +18.3%
    Total Group backlog                     3,302              3,098     +6.6%

* including outside France and Iselection

The Group's order backlog at end-September 2013 amounted to €3.3 billion, up
7% from year-end 2012 and equivalent to 16 months' revenue from Nexity
development activities^[7]. Order backlog in Residential real estate was €2.8
billion at end-September, i.e. a nearly 5% increase over end-December 2012.

Outlook for 2013

  oResidential real estate: around 9,000 net new home reservations in an
    expected market of between 70,000 and 75,000 units
  oCommercial real estate: order intake of more than €400 million (versus an
    initial target of €350million)
  oConsolidated revenue for 2013 expected to exceed €2.6 billion
  oCurrent operating profit targeted for 2013 at over €180 million
  oBased on its outlook, the Company will consider proposing to its
    shareholders the renewal of a €2 per share dividend in 2014


Financial Calendar & Practical Information

2013 Business activity and results: Tuesday, 18 February 2014

A conference call on 9M 2013 revenue and business activity will be  accessible 
in English at 19:00 CET on Tuesday, 29October 2013, by dialling the following

- Dial_in number (France)   + 33 (0) 1 70 99 35 15 Access code: Nexity
- Dial_in  number (rest  of + 44 (0) 207153 2027  Access code: Nexity
-  Dial_in  number  (United + 1 (0) 480 629 9822   Access code: Nexity

Playback will be available by phone after the conference call by dialling  the 
following number:
+44 (0) 207 959 6720 (Access code: 4626021#)

The presentation accompanying this conference can be accessed at the following

This presentation will be available on  the Group's website starting at  19:00 
CET on 29 October 2013.


The information, assumptions and estimates  that the Company could  reasonably 
use to determine  its objectives  are subject  to change  or modification  due 
notably to economic, financial and competitive uncertainties. Furthermore,  it 
is possible that some of the risks  described in chapter 4 of the Document  de 
Référence, filed with the  AMF under number D.13-0342  on 12 April 2013  could 
have an impact on the Group's activities and the Company's ability to  achieve 
its objectives.  Accordingly, the  Company  cannot give  any assurance  as  to 
whether it will achieve the objectives  described, and makes no commitment  or 
undertaking to update or otherwise revise this information.
This release constitutes quarterly financial  reporting within the meaning  of 
the Transparency Directive as transposed by the AMF.


Nexity offers the widest range of advice and expertise, products, services and
solutions for private individuals, companies and local authorities, so as to
best meet the needs of our clients and respond to their concerns.
Our businesses - transactions, management, development, urban regeneration,
advisory and related services - are now all fully client focused, optimally
organised to serve and support our clients. As the benchmark operator in our
sector, we are resolutely committed to all of our clients, but also to the
environment and society as a whole.

Nexity is listed on the SRD and on Euronext's Compartment A
Member of the indices SBF80, SBF120, CACMid60, CAC Mid & Small and CAC All
Mnemo: NXI - Reuters: NXI.PA - Bloomberg: NXI FP
ISIN code: FR0010112524

Amélie Laroche-Truong - Head of Investor Relations / +33 (0)1 71 12 15 49 -
Blandine Castarède- Director of communication and brand strategy/ + 33 (0)1
71 12 15 52-


Revenue by division

residential real estate

€ millions               9M 2013  9M 2012  Change %
New homes                1,039.3  1,088.3     -4.5%
Subdivisions                87.1     83.2     +4.7%
International               69.5     29.3      x2.4
Residential real estate  1,195.9  1,200.7     -0.4%

commercial real estate

€ millions              9M 2013  9M 2012  Change %
Commercial real estate    355.9    313.2    +13.6%

Services and Distribution Networks

€ millions                          9M 2013  9M 2012  Change %
Services                              307.7    309.9     -0.7%
Distribution Networks                  22.6     22.8     -0.9%
Services and Distribution Networks    330.3    332.7     -0.7%

Quarterly progression of revenue by division

                                          2012                    2013
€ millions                        Q1    Q2    Q3    Q4     Q1      Q2    Q3 Q4
Residential real estate          396.8 399.2 404.7 654.7  364.1 440.0 391.8
Commercial real estate            81.8 105.2 126.2 204.3  114.0 130.5 111.4
Services and Distribution
Networks                         107.8 112.1 112.8 120.0  107.4 113.0 109.9
Other activities                   1.4   1.2   1.7   1.3    1.1   1.6   1.8
Revenue                          587.9 617.6 645.6 980.2  586.5 685.2 614.9


[1] Revenue basis - previous 12-month period

[2]Iselection, previously attached to  the Services and Distribution  Networks 
division, was  organisationally integrated  into the  Residential real  estate 
division at  the start  of  the year.  The  revenue data  hereafter  presented 
reflect this  reclassification. Data  for  the 2012  financial year  are  also 
presented  after  this   reclassification  to   facilitate  comparison.   This 
reclassification  is  without   impact  on   the  recognition   of  new   home 

[3] Of  which, 59  units in  Italy and  19 units  in Poland  for €23  million, 
compared to 197 units reserved outside France (89 units in Italy and 108 units
in Belgium) over the first nine months of 2012 for €84 million

[4] Includes the Group's current supply for sale, its future supply
corresponding to project stages not yet marketed on acquired land, and
projects not yet launched associated with land secured through options

[5] Press release dated 12 September 2013

[6] Press release dated 15 October 2013

[7] Revenue basis - previous 12-month period

9M 2013 Revenue and Business Activity


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