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Nexity 2022 half-year results: Resilient first half results

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·38-min read
In this article:
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Nexity
Nexity

Paris – France, 27 July 2022, 17h45 CEST

Resilient first half results
Cautious management of development activities
Strong growth of Services
Annual objectives specified

Cautious management of residential development: commercial launches postponed

  • Recovery in permits granted, but commercial launches postponed to manage the consequences of inflation and protect margins

  • Anticipation of a 17% market decline in 2022 (estimated at ~130,000 units vs. 157,000 in 2021)

  • Nexity's robustness: 7,639 reservations in the first half (-9% in volume, -5% in value)

Financial performance: resilience in development activities, strong growth in services, indebtedness under control

  • Revenue of €1,964 million, with service activities up by 9%

  • Current operating profit of €110m, i.e. a half-year margin of 5.6%, not representative of annual performance

  • Solid financial structure: net debt of €878m, i.e. 2.3x EBITDA, highest point of annual debt

2022 targets specified to better reflect the uncertainty of the macro-economic environment

  • Confirmation of over 14% market share in 2022, in a new home market now expected to decline

  • Maintain a high operating margin around 8% based on revenue at least equal to 2021

Nexity is well-prepared to address the tremendous needs of the sustainable city

  • Closing of the acquisition of the Angelotti Group, a leading residential developer in Occitanie (south of France), expected at year-end

  • Investor Day on 28 September: accelerating Nexity's integrated real estate operator model for sustainable cities

H1 2022 KEY FIGURES1

BUSINESS ACTIVITY

FINANCIAL RESULTS

 

H1 2022

Change

(€m)

H1 2022

H1 2021

22 vs 21

New home reservations in France

 

vs. H1 2021

Revenue

1,964

2,063

-5%

Volume

7,639 units

-9%

Operating profit

110

133

-17%

Value

€1,756m

-5%

Operating margin (% of revenue)

5.6%

6.4%

-80 bps

Commercial real estate

 

 

Net profit – Group share

54

75

-27%

Order intake

€92m

 

 

 

 

 

 

 

 

(€m)

Jun-22

Dec-21

 

Development outlook

 

vs. Dec-21

Net debt2

878

598

 

Backlog

€6.5bn

-1%

x EBITDA after leases (12 month)

2,3x

1,5x

 

1 Data on a like-for-like basis i.e without businesses sold in H1 2021: Century 21 consolidated until 31 March and Ægide-Domitys consolidated until 30 June 2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode 2 Net debt before leases.

VÉRONIQUE BÉDAGUE, CHIEF EXECUTIVE OFFICER, COMMENTED:

« The geopolitical and macroeconomic uncertainty leads us to manage our operations with greater caution. To cope with inflationary pressures, we are more selective in launching operations and take the time to work on optimising our products in terms of both cost and selling price. Finally, once the launch has been decided, we capitalise on our diversified offer and our multi-channel marketing capability to ensure optimal time to market. This is how we protect our margins and contain our debt. This tight control of our supply for sale enables us to adapt to changes in demand, which remains strong, both from individuals and institutionals, despite macro-prudential measures aimed at reducing the credit availability to individuals and the rise in interest rates. Nexity's performance demonstrates the strength of its business model, capitalising in particular on its position as France's leading developer and on the very strong growth in the results of its service activities. The volume of our business potential, the strength of our backlog, the solidity of our balance sheet and the quality and commitment of our teams, give us confidence that we will be able to weather this period of uncertainty as well as possible, and we will be able to meet the immense needs in the French housing market. We have also just strengthened our positions in Occitania region (South of France) by acquiring a majority stake in Angelotti and remain in motion to participate in the future consolidation of the sector and better respond to the challenges of sustainable cities. »

RESIDENTIAL REAL ESTATE 

Business activity
The supply shortage, observed for several years on the French market, persists despite a recent recovery in the delivery of building permits for collective housing. The acceleration of the inflationary context recorded in the second quarter lengthens the operations’ set-up time, delays the start of their marketing, thus constraining the supply for sale. The new home market in France is therefore affected despite a still sustained demand, both from individuals and institutional investors. According to the FPI (Fédération des Promoteurs Immobiliers), new home sales fell by around 20% in the first quarter which should continue for the rest of the year.

Against this backdrop, Nexity's business activity held up well in the first half of the year, with 7,639 reservations (-9% in volume compared with H1 2021, -5% in value to €1.8 billion), with its customer base still balanced between retail sales (63% of reservations in the first half of the year) and bulk sales (37%). Sales prices per square metre in supply constrained areas (A and B1), which account for around 80% of reservations during the period, remain on an upward trend, in line with the first quarter (+3.7% vs H1 2021).

As expected, Nexity saw during the first half a recovery in building permits (+19% vs H1 2021), but is keen to secure its margins in a more difficult environment. Therefore, these new permits did not allow to increase the supply for sale as anticipated at the beginning of the year, mainly given the negotiation time required to integrate the inflationary trend in construction costs and validate the selling price. As a result, housing launches fell by 12% over the period. The supply for sale therefore remains low (7,199 units against 7,655 on 31 December 2021) and does not meet demand. This supply is low-risk (no stock of completed homes, and more than 70% of the supply not launched) and the time-to-market remains very fast (4.5 months vs. 4.4 months at 31 December 2021).

New scope (€m)

H1 2022

H1 2021

2022/2021
change

Revenue

1,377

1,398

- 2%

Current operating profit

65

81

- 20%

Margin (as a % of revenue)

4.7%

5.8%

-110 bps

 

30/06/22

31/12/21

 

Working capital requirement (WCR)

1,152

1,029

 

Financial results
Revenue was slightly down in the first half of 2022, reflecting the lower level of new operations starts during the period. The margin rate is down, affected by the cautious management of operations leading to a lower coverage of fixed costs due to operations delay and higher costs related to projects’ exits. Working capital requirement amounted €1.2 billion. Working capital for new homes in France represented 18% of the backlog, in line with historical levels.

Outlook
Given the tougher housing environment observed in the second quarter, Nexity now expects the market to decline by 17% in 2022 (~130,000 units vs. 157,000 units in 2021). Nexity is maintaining its target of over 14% market share, with an acceleration in bulk sales expected in the second half of the year. The contribution to 2022 earnings from the acquisition of the Angelotti Group announced in June 2022 should be small, in the event of a year-end closing. The Group remains confident in its ability to contain the pressure on construction costs for ongoing operations. Expectations of rising real estate mortgage rates lead us to increase our vigilance regarding the relevance of new production in relation to market conditions.


COMMERCIAL REAL ESTATE 

Business activity
In a market context at the bottom of the cycle and still wait-and-see, Nexity recorded, as expected, a low level of order intake in the first half of the year (92 million euros at the end of June). This amount includes 66 million euros in order intake in the regions (+41% compared to H1 2021) where Nexity continues to strengthen its presence.

New scope (€m)

H1 2022

H1 2021

2022/2021
change

Revenue

161

280

- 43%

Current operating profit

21

44

- 53%

Margin (as a % of revenue)

13.0%

15.8%

-280 bps

 

30/06/22

31/12/21

 

Working capital requirement (WCR)

64

24

 

Financial results
H1 2021 basis of comparison is high, as it included the contribution of the order intake for the Reiwa building in Saint-Ouen, which contributed €124 million to revenue and €16 million to operating profit. The half-year results for 2022 are logically down due to this significant base effect. Restated for this item, revenue is up 3%. The margin rate for the first half of 2022 remains higher than the normative level of the business. The level of WCR remains low and takes into account the rate of customer advances collection during the construction period.

Outlook
The outlook for Commercial real estate business remains unchanged. Given the wait-and-see attitude of companies, order intake should reach a low point in 2022. The backlog consumption should lead to achieve a consolidated revenue of around €400 million in 2022.

SERVICES 

New scope (€m)

H1 2022

H1 2021

2022/2021
change

Revenue

421

385

9%

o/w Property Management

188

186

1%

o/w Serviced Properties

102

70

45%

o/w Distribution

132

130

2%

Current operating profit

36

26

39%

Margin (as a % of revenue)

8.5%

6.7%

+180 bps

 

30/06/22

31/12/21

 

Working capital requirement (WCR)

52

75

 

Services revenue amounted 421 million in the first half of 2022, up 9% compared to H1 2021, mainly driven by serviced properties activities, particularly coworking (Morning), which saw its revenue double in H1 2022, driven by the increase in the occupancy rate over the period (+11 points) and the 30% increase in the number of managed spaces (9 openings during H1 representing 19,000 sqm). Student residencies (Studea) had also a strong performance with a3 points increase in occupancy rate at 96% compared to 93% at end-December 2021.

Current operating profit rose by 39% to €36 million. The operating margin rate increased by 180 basis points to 8.5%.

Outlook
In the second half of the year, the Services activities should benefit from the continued good momentum of profitable growth recorded in the first half of the year.

CONSOLIDATED RESULTS OPERATIONAL REPORTING

Reported H1 2021 net profit amounted to €281 million and included non-recurring items relating to the disposal of Ægide-Domitys and Century 21 (€206 million). Restated on a like-for-like basis, H1 2021 net profit amounted to €75 million.

 

 

H1 2021 restated*

 

H1 2022

 

2022/2021
change
Like-for-like basis


in € million

 


Reported

Disposed activities and non-recurring items


Like-for-like basis

 

 

 

 

Consolidated revenue

 

2,275

211

2,063

 

1,964

 

-5%

Operating profit

 

359

226

133

 

110

 

-17%

As a % of revenue

 

 

 

6.4%

 

5.6%

 

 

Net financial income/(expense)

 

(44)

(13)

(31)

 

(26)

 

-18%

Income tax

 

(31)

(7)

(24)

 

(24)

 

 

Share of profit/(loss) from equity-accounted investments

 

(1)

 

(1)

 

(1)

 

 

Net profit

 

283

206

77

 

59

 

-23%

Non-controlling interests

 

(2)

 

(2)

 

(5)

 

 

Net profit attributable to equity holders of the parent company

 

281

206

75

 

54

 

-27%

(in euros)

 

 

 

 

 

 

 

 

Net earnings per share

 

€5.07

 

€1.35

 

€0.98

 

 

*2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

REVENUE

Reported revenue amounted to 1,964 million, down 5% compared to H1 2021 on a like-for-like basis. H1 2021 reported revenue included revenue from disposed activities in 2021 (Century21 and Ægide-Domitys) and amounted to €2,275 million. Restated for the base effect of the Reiwa Commercial real estate order taken in the first half of 2021, revenue rose by 1%.

in € million

 

H1 2022

H1 2021

 

2022/2021
change

Development

 

1,538

1,678

 

- 8%

Residential Real Estate Development

 

1,377

1,398

 

- 2%

Commercial Real Estate Development

 

161

280

 

- 43%

Services

 

421

385

 

+ 9%

Property Management

 

188

186

 

+ 1%

Serviced properties

 

102

70

 

+ 45%

Distribution

 

132

130

 

+ 2%

Other Activities

 

5

1

 

ns

Revenue new scope

 

1,964

2,063

 

- 5%

Revenue from disposed activities (1)

 

 

211

 

 

Revenue

 

1,964

2,275

 

- 14%

(1) Disposed activities were consolidated until 31 March 2021 for Century 21 and until 30 June 2021 for Ægide-Domitys.


Under IFRS, reported revenue was €1,800 million. It excludes revenue from joint ventures in application of IFRS 11, which requires their recognition by equity accounting of proportionally integrated joint ventures in operational reporting. Reported revenue in H1 2021 (€2,099 millions) is not comparable as it included the revenue of the disposed activities in 2021 (Century21 and Ægide-Domitys).

As a reminder, revenue generated by the development businesses from VEFA off-plan sales and CPI development contracts is recognised using the percentage-of-completion method, i.e. on the basis of notarised sales and pro-rated to reflect the progress of all inventoriable costs.

OPERATING PROFIT

Current operating profit amounted to 110 million and the current operating margin reached 5.6% of revenue, at a level not representative of annual performance. Half of the decline in the margin rate (-80 bps) is due to the base effect from the Reiwa Commercial real estate order taken in H1 2O21.

 

 

H1 2022

 

H1 2021*

 

in € million

 

Operating
profit

Margin
rate

 

Operating
profit

Margin
rate

 

Development

 

86

5.6%

 

125

7.4%

 

Residential Real Estate Development

 

65

4.7%

 

81

5.8%

 

Commercial Real Estate Development

 

21

13.0%

 

44

15.8%

 

Services

 

36

8.5%

 

26

6.7%

 

Other Activities

 

(11)

ns

 

(18)

ns

 

Current operating profit new scope

 

110

5.6%

 

133

6.4%

 

*2021 figures have been restated following the IFRS IC decision of March 2021 on the costs of software used in Saas mode

OTHER INCOME STATEMENT ITEMS

Financial expense amounted to -€26 million in H1 2022 and improved by €5 million compared to 30 June 2021 on a like-for-like basis. The increase in interest expenses on leases (€2 million vs. H1 2021) following the growth in coworking activities is largely offset by the decrease in the cost of financial debt for €7 million. The average cost of financing is down to 1.8% from 2.1% at end 2021. Given its mainly fixed-rate debt structure, the Group has little exposure to an increase in interest rates on the 2022 financial result.

Tax expense (including the Cotisation sur la Valeur Ajoutée des Entreprises, CVAE) on a like-for-like basis was stable at - €24 million. The current effective tax rate (excluding CVAE) was 27% at end-June 2022 in line with the normative fiscal rate.

Net profit Group's share on a like-for-like basis during H1 2022 was €54 million (compared to €75 million at 30 June 2021).

CASH FLOW AND BALANCE SHEET ITEMS

CASH FLOWS

Cash flow from operating activities after lease payments but before interest and tax expenses was €125 million at end-June 2022, comparable to the contribution in the first half of 2021.

Operating working capital (excluding tax) rose by €196 million, which is comparable to the usual increase in the first half of the year, still marked by expenditure flows on construction sites, which exceeds the inflows for the period. The change in WCR in H1 2021, which amounted to €355 million, took into account €238 million related to the consumption of advances paid for Commercial real estate on 2020 orders (mainly the Eco-campus in La Garenne Colombes).

Nexity’s free cash-flow was a net outflow of €136 million at end-June 2022 compared to a net outflow of €95 million at 30 June 2021 restated for the effect of the consumption of customer advances. This reflects a controlled increase in working capital in H1 2022.

in € million

 

H1 2022

H1 2021*

Cash flow from operating activities before interest and tax expenses

 

188

233

Repayment of lease liabilities

 

(63)

(117)

Cash flow from operating activities after lease payments but before interest and tax expenses

 

125

116

Change in operating working capital

 

(196)

(355)

Interest and tax paid

 

(36)

(71)

Net cash from/(used in) operating activities

 

(107)

(310)

Net cash from/(used in) operating investments

 

(29)

(23)

Free cash-flow

 

(136)

(333)

Net cash from/(used in) financial investments

 

(7)

185

Dividends paid by Nexity SA

 

(138)

(111)

Net cash from/(used in) financing activities, excluding dividends

 

22

(165)

Change in cash and cash equivalents

 

(259)

(423)

*2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

Net cash from/(used in) financial investments totalled €7 million in H1 2022. It mainly included in H1 2021, the disposal of 100% of Century 21 and 45% of Ægide.

Net cash flow from/(used in) financing activities totalled only €22 million as there were no repayments during the period. In H1 2021, they included the repayment at maturity of a bond.

WORKING CAPITAL REQUIREMENT

in € million

 

30 June 2022

31 December 2021

2022/2021
change

Development

 

1,215

1,053

162

Residential Real Estate Development

 

1,152

1,029

123

Commercial Real Estate Development

 

64

24

39

Services

 

52

75

(23)

Other Activities

 

46

(7)

52

Total WCR excluding tax

 

1,313

1,121

192

Corporate income tax

 

5

(2)

7

Working capital requirement (WCR)

 

1,318

1,119

199


At 30 June 2022, WCR excluding tax increased by €192 million compared to end-December 2021, driven by Residential real estate (+€123 million).

Land commitments considered as Landbank totalled around €250 million at 30 June 2022 (compared to around €280 million at 31 December 2021).

BALANCE SHEET AND FINANCIAL STRUCTURE

The Group’s net debt before lease liabilities amounted to €878 million at end-June 2022, up €280 million compared to end-2021. This increase came in particular from the dividend payment in the first half of the year (€138 million) and the increase in working capital requirement (€192 million).

The level at end-June represents the highest point in annual indebtedness.

Leverage ratio was 2.3x EBITDA at 30 June 2022, well below the bank covenant thresholds (3.5x).

The Group has a solid financial situation as of 30 June 2022, with a total cash position of €914 million, to which are added €600 million of confirmed and undrawn credit lines.

Gross debt is mainly fixed rate (56%), reducing the Group's exposure to rising interest rates.

in € million

 

30 June 2022

31 December 2021

2022/2021 change

Bond issues and others

 

999

994

5

Bank debt and commercial papers

 

793

768

26

Net cash and cash equivalents

 

(914)

(1,163)

249

Net financial debt before lease liabilities

 

878

598

280

At 30 June 2022, the average debt maturity was high at 2.6 years (compared to 3.1 years at end-2021) with an average cost of debt down to 1.8% compared to 2.1% in 2021 given the refinancing policy pursued in 2021.

Lease liabilities rose during H1 2022 by €51 million, to reach €677 million, reflecting the growth in the number of managed coworking office spaces. Net debt including lease liabilities amounted to €1,554 million at 30 June 2022, compared to €1,224 million at 31 December 2021.

2022 OUTLOOK

2022 targets specified 1 to better reflect the uncertainty of the macro-economic environment

  • Confirmation of over 14% market share in 2022, in a new home market now expected to decline

  • Maintain a high operating margin around 8% based on revenue at least equal to 2021

Nexity will continue to closely monitor the current economic, social and health situation.



ACQUISITION OF A MAJORITY STAKE IN THE ANGELOTTI GROUP

As the regional leader in residential development and urban planning in Occitania region (South of France), this acquisition is a major step forward for Nexity. Fully in line with the Group's strategic ambition, this transaction will strengthen Nexity's urban planning offer, a business that has been in place for a long time and that transforms territories to serve our local authority clients. It will also enable Nexity to strengthen its market share in residential development in Occitania and PACA regions, two regions with strong growth prospects, by relying on reputable and well-established local partners. In 2021, the Angelotti group totalled revenue of €150 million (+20% compared to 2020) and has a pipeline of projects representing around 6 years of activity.

***

FINANCIAL CALENDAR & PRACTICAL INFORMATIONS

Investor Day (only with invitation)                                Wednesday 28 September 2022
Q3 2022 business activity and revenue                                Wednesday 26 October 2022 (after market close)

A conference call will be held today in French with a simultaneous translation into English at 6.30 p.m. (Paris Time), available on the website https://nexity.group/en/ in the Finance section and with the following numbers:

  • Calling from France

+33 (0) 1 70 37 71 66

  • Calling from elsewhere in Europe

+44 (0) 33 0551 0200

  • Calling from the United States

+1 212 999 6659

Code: Nexity en

The presentation accompanying this conference will be available on the Group’s website from 6:15 p.m. (Paris Time) and may be viewed at the following address: Nexity H1 2022 webcast

The conference call will be available on replay at https://nexity.group/en/finance from the following day.

The French version of the 2022 interim financial report is filed today with the Autorité des Marchés Financiers (AMF) and is available on the Group’s website.

Avertissement: 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.22-0248 on 6 April 2022, 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.

Contact:
Domitille Vielle – Head of Investor relations / +33 (0)6 03 86 05 02 – investorrelations@nexity.fr

ANNEX : OPERATIONAL REPORTING

Quarterly reservations – Residential Real Estate

 

 

2022

 

2021

 

2020

Number of units

 

Q2

Q1

 

Q4

Q3

Q2

Q1

 

Q4

Q3

Q2

Q1

New homes (France)

 

4,149

3,490

 

7,658

4,092

4,843

3,508

 

7,299

3,848

5,402

3,450

Subdivisions

 

423

337

 

772

367

439

338

 

660

244

297

360

International

 

100

133

 

216

247

404

249

 

503

193

74

165

Total new scope

 

4,672

3,960

 

8,646

4,706

5,686

4,095

 

8,462

4,285

5,773

3,975

Reservations carried out directly by Ægide

 

 

 

 

 

 

348

389

 

143

336

392

207

Total (in number of units)

 

4,672

3,960

 

8,646

4,706

6,034

4,484

 

8,605

4,621

6,165

4,182


 

 

2022

 

2021

 

2020

 

Value, in €m incl. VAT

 

Q2

Q1

 

Q4

Q3

Q2

Q1

 

Q4

Q3

Q2

Q1

 

New homes (France)

 

992

764

 

1,447

845

1,056

792

 

1,534

855

1,141

750

 

Subdivisions

 

37

27

 

55

33

42

29

 

57

19

25

30

 

International

 

2

18

 

31

48

72

41

 

91

29

11

26

 

Total new scope

 

1,032

808

 

1,533

927

1,170

862

 

1,682

903

1,177

806

 

Reservations carried out directly by Ægide

 

 

 

 

 

 

85

90

 

32

70

90

41

 

Total (in €m incl. VAT)

 

1,032

808

 

1,533

927

1,255

952

 

1,713

974

1,267

847

 

Breakdown of new home reservations in France by client

In number of units, new scope

H1 2022

H1 2021

H1 2022/H1 2021
change

Homebuyers

1,513

20%

1,778

21%

-15%

o/w: - First time buyers

1,317

17%

1,514

18%

-13%

- Other home buyers

195

3%

264

3%

-26%

Individual investors

3,335

44%

3,686

44%

-10%

Professional landlords

2,791

37%

2,887

35%

-3%

O/w : - Institutional investors

727

10%

936

11%

-22%

- Social housing operators

2,064

27%

1,951

23%

6%

Total

7,639

100%

8,351

100%

-9%


Services

 

 

June 2022

 

December 2021

 

Change

 

 

Property Management

 

 

 

 

 

 

 

 

Portfolio of managed housing

 

 

 

 

 

 

 

 

- Condominium management

 

675,000

 

672,000

 

+ 0.4%

 

 

- Rental management

 

158,000

 

155,000

 

+ 1.9%

 

 

Commercial real estate

 

 

 

 

 

 

 

 

- Assets under management (in millions of sq.m)

 

20.2

 

20.4

 

- 1%

 

 

Serviced properties

 

 

 

 

 

 

 

 

Student residences

 

 

 

 

 

 

 

 

- Number of residences in operation

 

129

 

129

 

0

 

 

- Rolling 12-month occupancy rate

 

96%

 

93%

 

+ 3 pts

 

 

Shared office space

 

 

 

 

 

 

 

 

- Managed areas (in sq.m)

 

76,000

 

57,000

 

+ 19.000

 

 

- Rolling 12-month occupancy rate

 

85%

 

74%

 

+ 11 pts

 

 

Distribution

 

June 2022

 

June 2021

 

Change

 

 

- Total reservations

 

2,425

 

2,731

 

- 11%

 

 

- Reservations on behalf of third parties

 

1,497

 

1,770

 

- 15%

 

 

 

 

 

 

 

 

 

 

 

Quarterly figures - Revenue

 

2022

 

2021

 

2020


in € million

Q2

Q1

 

Q4

Q3

Q2

Q1

 

Q4

Q3

Q2

Q1

Development

839

699

 

1,279

815

827

851

 

1,747

703

680

524

Residential Real Estate development

750

626

 

1,146

735

742

655

 

1,216

642

434

467

Commmercial Real Estate development

89

72

 

133

79

85

195

 

530

61

247

57

Services

226

195

 

270

198

209

176

 

237

198

161

171

Property management

149

141

 

141

140

129

126

 

129

133

114

126

Distribution

77

54

 

129

58

80

50

 

108

65

47

45

Other activities

4

1

 

 

 

 

1

 

 

 

 

 

Revenue - New scope

1,069

895

 

1,549

1,013

1,036

1,027

 

1,983

901

842

695

Revenue from disposed activities*

 

 

 

 

 

107

104

 

134

120

88

92

Revenue

1,069

895

 

1,549

1,013

1,143

1,132

 

2,118

1,021

929

787

* Disposed activities are consolidated until 31 Mars 2021 for Century 21 and until 30 June 2021 for Ægide-Domitys

Backlog

 

2022

 

2021

 

2020

In € million, excluding VAT

H1

Q1

 

FY

9M

H1

Q1

 

FY

9M

H1

Q1

Residential Real Estate development

5,541

5,551

 

5,565

5,610

5,504

5,399

 

5,509

5,100

4,986

4,522

Commercial Real Estate development

906

935

 

974

1,013

1,059

1,138

 

1,032

321

373

398

Total Backlog

6,447 

6,485

 

6,538

6,622

6,563

6,536

 

6,541

5,421

5,359

4,920

Restatement of operations carried out directly by Ægide

 

 

 

 

 

 

242

 

280

298

300

274

Total Backlog new scope

6,447 

6,485

 

6,538

6,622

6,563

6,778

 

6,820

5,719

5,659

5,194

Half-year figures
ReservationsResidential Real Estate

 

 

2022

 

2021

 

2020

Number of units

 

H1

 

FY

H2

H1

 

FY

H2

H1

New homes (France)

 

7,639

 

20,101

11,750

8,351

 

19,999

11,147

8,852

Subdivisions

 

760

 

1,916

1,139

777

 

1,561

904

657

International

 

233

 

1,116

463

653

 

935

696

239

Total new scope

 

 8,632

 

23,133

13,352

9,781

 

22,495

12,747

9,748

Reservations carried out directly by Ægide

 

-

 

737

-

737

 

1,078

479

599

Total (in number of units)

 

8,632 

 

23,870

13,352

10,518

 

23,573

13,226

10,347


 

 

2022

 

2021

 

2020

Value, in €m incl. VAT

 

H1

 

FY

H2

H1

 

FY

H2

H1

New homes (France)

 

1,756

 

4,140

2,292

1,848

 

4,281

2,389

1,892

Subdivisions

 

64

 

159

88

71

 

131

76

55

International

 

20

 

192

79

113

 

156

120

36

Total new scope

 

1,840 

 

4,491

2,459

2,032

 

4,568

2,585

1,983

Reservations carried out directly by Ægide

 

 

 

175

-

175

 

233

102

131

Total (in €m incl. VAT)

 

1,840 

 

4,666

2,459

2,207

 

4,802

2,687

2,115

Revenue

 

 

2022

 

2021

 

2020


in € million

 

H1

 

FY

H2

H1

 

FY

H2

H1

Development

 

1,538

 

3,771

2,094

1,678

 

3,654

2,449

1,204

Residential Real Estate development

 

1,377

 

3,279

1,882

1,398

 

2,759

1,858

901

Commmercial Real Estate development

 

161

 

492

212

280

 

895

592

303

Services

 

421

 

853

468

385

 

767

435

333

Property management

 

289

 

537

281

256

 

503

263

240

Distribution

 

132

 

316

186

130

 

265

172

92

Other activities

 

5

 

1

 

1

 

 

 

 

Revenue - New scope

 

1,964

 

4,625

2,562

2,063

 

4,421

2,884

1,537

Revenue from disposed activities*

 

 

 

211

 

211

 

434

254

179

Revenue

 

1,964

 

4,836

2,562

2,275

 

4,855

3,139

1,716

* Disposed activities are consolidated until 31 Mars 2021 for Century 21 and until 30 June 2021 for Ægide-Domitys

Current operating profit

 

 

2022

 

2021*

 

2020*

In € million

 

H1

 

FY

H2

H1

 

FY

H2

H1

Development

 

86

 

330

205

125

 

275

213

61

Residential Real Estate development

 

65

 

271

191

81

 

203

195

8

Commmercial Real Estate development

 

21

 

59

15

44

 

72

19

54

Services

 

36

 

74

48

26

 

41

27

14

Property management

 

23

 

37

23

14

 

20

12

8

Distribution

 

13

 

37

25

12

 

21

15

6

Other activities

 

(11)

 

(33)

(16)

(18)

 

(35)

(26)

(9)

Current operating profit - New scope

 

110

 

371

238

133

 

281

215

66

Non-current operating profit

 

 

 

157

116

41

 

(2)

14

(16)

Operating profit

 

110

 

528

353

174

 

279

228

50

*2020 and 2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

Consolidated income statement - 30 June 2022

In € million

 

30/06/2022
IFRS

 

Restatement
of joint
ventures

30/06/2022
Operational
reporting

 

30/06/2021
Restated*
Operational
reporting  
New scope before non-recurring items

Revenue

 

1,800.2

 

163,5

1,963.7

 

2,063.5

Operating expenses

 

(1,623.6)

 

(1,772.0)

(1,772.0)

 

(1,853.4)

Dividends received from equity-accounted investments

 

2.2

 

(2.2)

-

 

-

EBITDA

 

178.8

 

12.9

191.7

 

210.1

Lease payments

 

(63.5)

 

-

(63.5)

 

(60.8)

EBITDA after lease payments

 

115.3

 

12.9

128.2

 

149.3

Restatement of lease payments

 

63.5

 

-

63.5

 

60.8

Depreciation of right-of-use assets

 

(63.0)

 

0.0

(63.0)

 

(59.3)

Depreciation. amortisation and impairment of non-current assets

 

(16.6)

 

(0.0)

(16.6)

 

(15.6)

Net change in provisions

 

4.0

 

0.2

4.1

 

4.1

Share-based payments

 

(6.1)

 

-

(6.1)

 

(6.3)

Dividends received from equity-accounted investments

 

(2.2)

 

(0.0)

 

 

-

Current operating profit

 

94.9

 

15.2

110.1

 

133.0

Capital gains on disposal

 

-

 

-

-

 

-

Operating profit

 

94.9

 

15.2

110.1

 

133.0

Share of net profit from equity-accounted investments

 

9.8

 

(9.8)

 

 

-

Operating profit after share of net profit from equity-accounted investments

 

104.7

 

5.4

110.1

 

133.0

Cost of net financial debt

 

(14.1)

 

(1.2)

(15.3)

 

(22.8)

Other financial income/(expenses)

 

(2.0)

 

(0.3)

(2.2)

 

(2.4)

Interest expense on lease liabilities

 

(8.1)

 

-

(8.1)

 

(5.9)

Net financial income/(expense)

 

(24.2)

 

(1.4)

(25.6)

 

(31.1)

Pre-tax recurring profit

 

80.5

 

4.0

84.5

 

101.9

Income tax

 

(20.5)

 

(4.0)

(24.4)

 

(24.2)

Share of profit/(loss) from other equity-accounted investments

 

(1.0)

 

-

(1.0)

 

(0.9)

Consolidated net profit

 

59.0

 

0.0

59.0

 

76.7

Attributable to non-controlling interests

 

4.9

 

-

4.9

 

1.9

 

 

 

 

 

 

 

-

Attributable to equity holders of the parent company

 

54.2

 

0.0

54.2

 

74.8

(in euros)

 

 

 

 

 

 

 

Net earnings per share

 

0.98

 

 

0.98

 

1.35

*2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

Simplified consolidated balance-sheet - 30 June 2022

ASSETS
(in € million)

 

30/06/2022
IFRS

 

Restatement
of joint
ventures

 

30/06/2022
Operational
reporting

 

31/12/2021
Operational
reporting

Goodwills

 

1,358.2

 

-

 

1,358.2

 

1,356.5

Other non-current assets

 

873.8

 

0.2

 

874.1

 

817.7

Equity-accounted investments

 

126.8

 

(65.3)

 

61.5

 

62.5

Total non-current assets

 

2,358.8

 

(65.1)

 

2,293.7

 

2,236.7

Net WCR

 

1,150.2

 

168.2

 

1,318.4

 

1,118.9

Total Assets

 

3,509.0

 

103.1

 

3,612.1

 

3,355.6

 

 

 

 

 

 

 

 

 

Liabilities and equity
(in € million)

 

30/06/2022
IFRS

 

Restatement
of joint
ventures

 

30/06/2022
Operational
reporting

 

31/12/2021
Operational
reporting

Share capital and reserves

 

1,794.4

 

(0.0)

 

1,794.4

 

1,603.6

Net profit for the period

 

54.2

 

0.0

 

54.2

 

324.9

Equity attributable to equity holders of the parent company

 

1,848.6

 

(0.0)

 

1,848.6

 

1,928.6

Non-controlling interests

 

24.9

 

0.0

 

24.9

 

19.6

Total equity

 

1,873.5

 

(0.0)

 

1,873.5

 

1,948.2

Net debt

 

1,463.4

 

91.0

 

1,554.5

 

1,223.8

Provisions

 

99.0

 

1.7

 

100.6

 

104.2

Net deferred tax

 

73.1

 

10.4

 

83.5

 

79.5

Total Liabilities and equity

 

3,509.0

 

103.1

 

3,612.1

 

3,355.6

Net debt - 30 June 2022



 

 

(in € million)

30/06/2022
IFRS

Restatement
of joint
ventures

30/06/2022
Operational
reporting

 

31/12/2021
Operational
reporting

Bond issues (incl. accrued interest and arrangement fees)

809.7

-

809.7

 

806.3

Loans and borrowings

904.1

78.2

982.3

 

955.3

Loans and borrowings

1,713.8

78.2

1,792.0

 

1,761.6

 

 

 

 

 

 

Other financial receivables and payables

(163.3)

157.5

(5.8)

 

4.7

 

 

 

 

 

 

Cash and cash equivalents

(782.9)

(164.8)

(947.7)

 

(1,204.2)

Bank overdraft facilities

19.0

20.2

39.2

 

36.2

Net cash and cash equivalents

(763.9)

(144.6)

(908.5)

 

(1,168.0)

 

 

 

 

 

 

Total net financial debt before lease liabilities

786.5

91.0

877.6

 

598.3

 

 

 

 

 

 

Lease liabilities

676.9

-

676.9

 

625.5

 

 

 

 

 

 

Total net debt

1,463.4

91.0

1,554.5

 

1,223.8

Simplified statement of cash flows - 30 June 2022

(in € million)

30/06/2022
IFRS
(6-month
period)

Restatement
of joint
ventures

30/06/2022
Operational
reporting

 

30/06/2021
Operational
reporting Restated *

Consolidated net profit

59.0

-

59.0

 

283.0

Elimination of non-cash income and expenses

72.1

9.6

81.7

 

(123.5)

Cash flow from operating activities after interest and tax expenses

131.1

9.6

140.8

 

159.5

Elimination of net interest expense/(income)

22.2

1.2

23.4

 

41.4

Elimination of tax expense, including deferred tax

20.2

4.0

24.2

 

31.0

Cash flow from operating activities before interest and tax expenses

173.5

14.8

188.3

 

231.9

Repayment of lease liabilities

(63.5)

-

(63.5)

 

(116.7)

Cash flow from operating activities after lease payments but before interest
and tax expenses

110.1

14.8

124.8

 

115.2

Change in operating working capital

(200.3)

4.4

(195.9)

 

(355.2)

Dividends received from equity-accounted investments

2.2

(2.2)

-

-

 

Interest paid

(7.7)

(1.1)

(8.8)

 

(15.5)

Tax paid

(26.2)

(1.3)

(27.6)

 

(50.9)

Net cash from/(used in) operating activities

(122.0)

14.6

(107.4)

 

(306.4)

Net cash from/(used in) net operating investments

(28.9)

-

(28.9)

 

(22.2)

Free cash flow

(151.0)

14.6

(136.4)

 

(328.6)

Acquisitions of subsidiaries and other changes in scope

(2.8)

(0.0)

(2.9)

 

208.1

Other net financial investments

(3.7)

(0.1)

(3.8)

 

(27.4)

Net cash from/(used in) investing activities

(6.5)

(0.1)

(6.7)

 

180.7

Dividends paid to equity holders of the parent company

(138.1)

-

(138.1)

 

(110.6)

Other payments to/(from) minority shareholders

0.2

-

0.2

 

(6.3)

Net disposal/(acquisition) of treasury shares

(1.5)

 

(1.5)

 

2.0

Change in financial receivables and payables (net)

18.3

4.5

22.8

 

(160.8)

Net cash from/(used in) financing activities

(121.2)

4.5

(116.6)

 

(275.8)

Impact of changes in foreign currency exchange rates

0.2

-

0.2

 

0.4

Change in cash and cash equivalents

(278.5)

19.0

(259.4)

 

(423.3)

*2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

Capital employed

In € million

 

 

 

 

30 June 2022

 

 

Total
excl. right-of-use assets

Total
incl. right-of-use assets

 

Non-current
assets

 

Right-of-use
assets

 

WCR

 

Goodwill

Development

 

1,274

1,322

 

59

 

48

 

1,215

 

-

Services

 

163

715

 

111

 

552

 

52

 

-

Other Activities and not attributable

 

1,466

1,492

 

56

 

26

 

51

 

1,358

Group capital employed

 

2,903

3,529

 

226

 

626

 

1,318

 

1,358

 

 

 

 

 

 

 

 

 

 

 

 

In € million

 

 

 

 

31 December 2021

 

 

Total
excl. right-of-use assets

Total
incl. right-of-use assets

 

Non-current
assets

 

Right-of-use
assets

 

WCR

 

Goodwill

Development

 

1,086

1,135

 

33

 

49

 

1,053

 

 

Services

 

179

678

 

104

 

499

 

75

 

 

Other Activities and not attributable

 

1,430

1,463

 

82

 

33

 

(9)

 

1,356

Group capital employed

 

2,694

3,276

 

219

 

582

 

1,119

 

1,356

 

 

 

 

 

 

 

 

 

 

 

 

ANNEX: IFRS

Consolidated income statement - 30 June 2022

In € million

 

30/06/2022
IFRS

 

30/06/2021
IFRS Restated*

Revenue

 

1,800.2

 

2,099.0

Operating expenses

 

(1,623.6)

 

(1,867.1)

Dividends received from equity-accounted investments

 

2.2

 

2.5

EBITDA

 

178.8

 

234.4

Lease payments

 

(63.5)

 

(116.7)

EBITDA after lease payments

 

115.3

 

117.7

Restatement of lease payments

 

63.5

 

116.7

Depreciation of right-of-use assets

 

(63.0)

 

(59.4)

Depreciation. amortisation and impairment of non-current assets

 

(16.6)

 

(16.0)

Net change in provisions

 

4.0

 

4.9

Share-based payments

 

(6.1)

 

(6.6)

Dividends received from equity-accounted investments

 

(2.2)

 

(2.5)

Current operating profit

 

94.9

 

154.8

Capital gains on disposal

 

-

 

184.7

Operating profit

 

94.9

 

339.5

Share of net profit from equity-accounted investments

 

9.8

 

13.3

Operating profit after share of net profit from equity-accounted investments

 

104.7

 

352.8

Cost of net financial debt

 

(14.1)

 

(24.2)

Other financial income/(expenses)

 

(2.0)

 

(2.0)

Interest expense on lease liabilities

 

(8.1)

 

(16.3)

Net financial income/(expense)

 

(24.2)

 

(42.5)

Pre-tax recurring profit

 

80.5

 

310.3

Income tax

 

(20.5)

 

(26.4)

Share of profit/(loss) from other equity-accounted investments

 

(1.0)

 

(0.9)

Consolidated net profit

 

59.0

 

283.0

Attributable to non-controlling interests

 

4.9

 

2.1

 

 

 

 

 

Attributable to equity holders of the parent company

 

54.2

 

280.9

(in euros)

 

 

 

 

Net earnings per share

 

0.98

 

5.07

*2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

Simplified consolidated balance-sheet - 30 June 2022

ASSETS
(in € million)

 

30/06/2022
IFRS

 

31/12/2021
IFRS

Goodwills

 

1,358.2

 

1,356.5

Other non-current assets

 

873.8

 

817.6

Equity-accounted investments

 

126.8

 

124.9

Total non-current assets

 

2,358.8

 

2,299.0

Net WCR

 

1,150.2

 

943.8

Total Assets

 

3,509.0

 

3,242.8

 

 

 

 

 

Liabilities and equity
(in € million)

 

30/06/2022
IFRS

 

31/12/2021
IFRS

Share capital and reserves

 

1,794.4

 

1,603.6

Net profit for the period

 

54.2

 

324.9

Equity attributable to equity holders of the parent company

 

1,848.6

 

1,603.6

Non-controlling interests

 

24.9

 

19.6

Total equity

 

1,873.5

 

1,948.2

Net debt

 

1,463.4

 

1,122.1

Provisions

 

99.0

 

102.4

Net deferred tax

 

73.1

 

70.2

Total Liabilities and equity

 

3,509.0

 

3,242.8

Consolidated net debt - 30 June 2022



 

 

(in € million)

 

30/06/2022
IFRS

 

31/12/2021
IFRS

Bond issues (incl. accrued interest and arrangement fees)

 

809.7

 

806.3

Loans and borrowings

 

904.1

 

865.7

Loans and borrowings

 

1,713.8

 

1,672.0

 

 

 

 

 

Other financial receivables and payables

 

(163.3)

 

(133.0)

 

 

 

 

 

Cash and cash equivalents

 

(782.9)

 

(1,061.6)

Bank overdraft facilities

 

19.0

 

19.2

Net cash and cash equivalents

 

(763.9)

 

(1,042.4)

 

 

 

 

 

Total net financial debt before lease liabilities

 

786.5

 

496.6

 

 

 

 

 

Lease liabilities

 

676.9

 

625.5

 

 

 

 

 

Total net debt

 

1,463.4

 

1,122.1

Simplified statement of cash flows - 30 June 2022

(in € million)

30/06/2022
IFRS

 

30/06/2021
IFRS Restated*

Consolidated net profit

59.0

 

283.0

Elimination of non-cash income and expenses

72.1

 

(136.8)

Cash flow from operating activities after interest and tax expenses

131.1

 

146.2

Elimination of net interest expense/(income)

22.2

 

40.5

Elimination of tax expense, including deferred tax

20.2

 

26.0

Cash flow from operating activities before interest and tax expenses

173.5

 

212.7

Repayment of lease liabilities

(63.5)

 

(116.7)

Cash flow from operating activities after lease payments but before interest
and tax expenses

110.1

 

96.0

Change in operating working capital

(200.3)

 

(333.1)

Dividends received from equity-accounted investments

2.2

 

2.5

Interest paid

(7.7)

 

(14.7)

Tax paid

(26.2)

 

(45.3)

Net cash from/(used in) operating activities

(122.0)

 

(294.7)

Net cash from/(used in) net operating investments

(28.9)

 

(22.2)

Free cash flow

(151.0)

 

(316.8)

Acquisitions of subsidiaries and other changes in scope

(2.8)

 

208.2

Other net financial investments

(3.7)

 

(23.5)

Net cash from/(used in) investing activities

(6.5)

 

184.7

Dividends paid to equity holders of the parent company

(138.1)

 

(110.6)

Other payments to/(from) minority shareholders

0.2

 

(6.3)

Net disposal/(acquisition) of treasury shares

(1.5)

 

2.0

Change in financial receivables and payables (net)

18.3

 

(176.8)

Net cash from/(used in) financing activities

(121.2)

 

(291.8)

Impact of changes in foreign currency exchange rates

0.2

 

0.3

Change in cash and cash equivalents

(278.5)

 

(423.5)

*2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

GLOSSARY

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 31 March 2021 for Century 21 and until 30 June 2021 for Ægide-Domitys.

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: sum of backlog and business potential; could be expressed in months or years of activity (as the backlog and the business potential) based on the last 12 months revenue.

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.

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.

Revenue: revenue generated by the development businesses from VEFA off-plan sales and CPI development contracts is recognised using the percentage-of-completion method, i.e. on the basis of notarised sales and pro-rated to reflect the progress of all inventoriable costs.

Serviced properties: the Group’s business activities in the management and operation of student residences as well as flexible workspaces.

Time-to-market: supply for sale compared to reservations for the last 12 months, expressed in months, for new home reservations segment in France

1 Objectives for the full year 2022 communicated last February: a market share of over 14% in a new home market expected to slightly grow (c.150,000 units) and a current operating profit of at least €380 million, enabling the operating margin to be maintained at around 8%.

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