Altarea offers discounted NAV-backed recovery upside as Access housing, resilient retail rents and a 400MW data-center option rebuild FFO.
Overview
Altarea SCA is an integrated French real-estate developer and investor spanning Retail REIT, residential development, Business Property and emerging infrastructure. Its differentiated model combines recurring rental income with development upside and allows the group to deliver complex, low-carbon mixed-use projects. The retail portfolio generated approximately €216.4 million of FY 2025 net rental income, with 97.5% collection and 2.8% vacancy, while long-term SNCF and RATP concessions create durable transit-retail exposure. Residential earnings are being repositioned through the Access range, which represented 44% of launches and helped support 7,601 reserved orders. **Operational profitability is inflecting despite weak reported revenue:** H1 2026 revenue fell 9.3% to €833.8 million, but FFO rose 39.0% to €86.6 million, FFO per share increased to €3.70 and the FFO margin expanded 320 basis points to 10.0%. FY 2025 revenue was €2.00 billion and FFO was €144.9 million, while management targets approximately €300 million FFO by 2028–2029. **Valuation remains discounted:** the €84.20 share price is approximately 16.6% below €101.00 NAV and about 30% below the €120.50 average analyst target. Near-term catalysts include residential order recovery, retail indexation, further margin improvement and Vantage’s 400MW Bordeaux data-center development, with technical resistance at €88.00 and support at €82.50–€83.50.