(News Bulletin 247) – The number one European retirement home announced its roadmap for 2023-2026, a few days after revealing the capital increase operations intended to strengthen its financial structure.

After going through “a series of unprecedented ordeals” according to management, Clariane wants to turn the page. The former Korian commits to the market on medium-term financial objectives covering the financial years 2023-2026.

For this period, the number one European retirement home is therefore targeting average annual organic growth of around +5% over this period. According to the company, this growth will be supported “by a progressive and regular increase in its occupancy rates, and its activity volumes, particularly ambulatory, and the ongoing price catch-up, particularly in Germany”.

The company also expects a gross operating margin (Ebitda) before an accounting standard to increase by 100 to 150 basis points (or from 1 point to 1.5 percentage points) still by 2026. This improvement in profitability will, according to management, be driven “by growth in turnover as well as targeted improvement measures relating to the central cost structure, rent expenses and energy expenses”.

Reduction in debt level

On the debt side, Clariane intends to reduce the debt leverage ratio to a level below 3 times Ebitda by the end of 2025. At the end of December 2023, it stood at 3.8 times and the group had a net debt of 3.78 billion euros. The level of Loan to Value (LTV) which is the ratio between real estate debt and the value of the real estate portfolio is therefore expected to be 55% at the end of 2025.

The company also says it confirms its objectives for 2024, announced last April during its first quarter activity update. For 2024, Clariane expects continued organic growth of its turnover at a level above 5%. The level of Ebitda, excluding IFRS 16 accounting standard on a pro forma basis of expected disposals, should remain stable in amount.

At the Paris Stock Exchange, this roadmap communicated by Clariane is welcomed. The stock jumped another 17.6% this Tuesday, to take the lead in the SBF 120, in strong volumes with 2.41 million shares traded since the opening. On Monday, Clariane shares soared by 22.7%, again in particularly high volumes with nearly 3.18 million shares traded.

It must be said that the file has come a long way, the stock had seen its value melt by more than 90% after two particularly nightmarish stock market years.

A four-part refinancing plan

The market is taking note of the efforts of the former Korian to get back on a healthy footing. The number one European retirement home has also been weakened by the negative fallout from the Orpea affair, but also by the violent rise in interest rates.

So many factors made it difficult for him to access financing. The company was therefore forced last November to announce a refinancing plan amounting to 1.5 billion euros intended to strengthen its financial structure. The goal was very clearly to avoid default for Clariane.

The former Korian affirms that its refinancing plan of 1.5 billion euros to strengthen its financial structure is well underway. This plan will also involve recapitalization operations. On Friday, the company unveiled the outlines of these fundraising aimed at strengthening its equity.

A first fundraising will be reserved for the investment company HLD Europe, which will allow it to take 20% of the capital of Clariane, subject to the vote of the next general meeting of shareholders on June 10. HLD Europe would subscribe 74.1 million euros of this reserved capital increase. Furthermore, the Flat Footed and Leima Valeurs funds, currently holding respectively 8.6% and 5.0% of the company’s capital, would also participate in this reserved capital increase, to the tune of approximately 15 and 3 million respectively. euros. The reserved capital increase would therefore be carried out for a total amount of 92.1 million euros.

Subsequently, a second capital increase, this time maintaining preferential subscription rights, will be launched, and will cover a maximum amount of approximately 236 million euros. In total, Clariane will see its equity capital reinforced for a maximum amount of 328 million euros.

At the end of these operations, the maximum share held by HLD Europe and Crédit Agricole Assurances would remain less than 30% of the capital and voting rights (29.9%), i.e. below the threshold which requires launching a public offer. purchase.

These two fundraisers fit together into a roadmap which is broken down into four parts. The company recalls that it completed, as of December 2023, the first two parts of this refinancing plan, namely two real estate partnerships with Crédit Agricole Assurances for an amount of 140 million euros and 90 million euros. euros.

In addition to these real estate partnerships with Crédit Agricole Assurances, Clariane had indicated that it was carrying out an asset sale program from this year 2024, allowing it in particular a “geographical refocusing (of its) activities”. The former Korian thus hopes to collect around 1 billion euros gross in proceeds from sales, which constitutes the fourth and final part of the plan.

The group indicates that it has already completed around 40% of this total disposal program to date. Clariane announced at the beginning of May that it was initiating the sale of its home hospitalization (HAD) activities in France. It will be added to operations already finalized in March and April, in the United Kingdom and the Netherlands.