Hello, ladies and gentlemen, welcome to the Nexity full-year results for 2022 for Nexity. During the call, you can only listen, but you will be able to ask questions at the end of the call. You can do this by hitting star one on your keyboard to record your question. If you need help, please call star zero and you will be connected with an operator. Now I'd like to give the floor to Véronique Bédague, who is our Chairwoman and CEO. Véronique, over to you.
Hello, everyone. Thank you for joining us this evening. Here we have Jean-Claude Bassien, Nadia Ben Salem, Eric Lalechère, and Stéphane Dalliet, who is in charge of residential real estate, and he will be participating in our conference call this evening. Of course, we have our regular teams who are with us this evening, as I'm sure you would expect.
As usual, you know, it's part of our DNA really to discuss our objectives. We have achieved our 2022 objectives, but the economic conditions were quite different from 2021, of course. Despite the fact that the market turned around in October, Nexity was able to achieve all of our objectives with historically good results. You know very well the market started out before the war in Ukraine. We thought that we would have a stable market with regard to 2021 with 157,000 units. In July, I said I thought that we'd be closer to 130,000, and you thought that I was pessimistic. We will probably actually have achieved 120,000 units. You can see that the market has fallen off 26%.
We talked about the new home market share. We expect it to be above 14%, and we achieved 15%. We talked about revenue. We looked at more than EUR 4.6 billion, and we reached EUR 4.7 billion. We looked at the operating margin. We estimated, I think, around this time last year that you had a lot of questions about that. We anticipated 8%, and we have achieved 7.8%. We consider that we have met our objectives. At the time, I didn't know much about what our indebtedness would be, but you know this is a subject that came under scrutiny in September. We have reached a 2.1x EBITDA, which is well below our strategic plan ceiling. Much far below the 3.5x EBITDA level that we had talked about earlier.
Last year, you showed a special interest in capital allocation. We talked about stopping international development, and we have halted some of this business. We are slowing down in Poland, Italy, and Germany. We're looking at indebtedness of about EUR 200 million related to this international extinctive management. We looked at acquisitions as well, purchased cash. The land bank. The land bank remained stable at EUR 280 million. We brought in 100 million new parcels of land. I won't come back to this, but we did focus also on external growth in the French region of Occitania. We have integrated this into the group as of last fall. A very important sheet. A very important point here is the indebtedness, which is under control.
I told you that in September when we met, I told you that I would ensure that indebtedness would not go beyond what we had experienced in June, despite the purchase of Angelotti. Indeed, as of 31 December 2022, it is EUR 820 million. That is 2.1x EBITDA. I think that it's important to mention some of these points that our bankers, who are well aware of our business operations and our accounts, have agreed to extend our credit from EUR 500 million-EUR 800 million. This credit line extension is a proof of their conviction that we are a solid group.
Another important point is that our traditional banks, Crédit Agricole, Arkéa, BPCE, I think I've forgotten some. Two new banks have asked to join the pool of lenders. This is very interesting. We now also have BNP Paribas, which is a very solid bank, and also the Banque Postale, which is a very cautious bank. I think it's interesting to see that our pool of lenders ensures that we will be able to continue our financing because we have a very good group of French banks backing us. We can talk about this later. It's also interesting to mention that our corporate and social responsibility has also been reinforced. The debt leverage, which is included in our covenants, is 3.5x EBITDA. As I said in September, we have agreed not to go beyond 2.5.
As you can see, indeed, at the end of the year, we were at 2.5 times EBITDA. We're looking at the pipeline in France for visibility. You can see that we have some in the tertiary. Most of the backlog is in France. We can see there's quite a bit in the pipeline, about EUR 2 billion. That is that we are really reloading our capacity to do business. The market is changing, real estate is changing. We are quite ready to engage in this new market because we do have land and real estate that we will be able to put on the market and put products on the market that will be welcomed. I would say, the last point in my introduction is a very important point.
We achieved our objectives, and so naturally, we have offered the board, and the board will extend to the general assembly for 2022, EUR 2.5 per share in dividends. This will be suggested at the meeting in May 2023. Stéphane, would you like to step in now?
Turning now to the residential market in 2022, you need to look at it at 2 periods, different effects, but the same consequences. First half, with weak offering for all developments, difficult to obtain planning permits, but also difficulty to identify the costs of deals with construction costs rising sharply since the Ukrainian crisis that has shifted certain marketing plans. In spite of sustained growth of volume lower than that of the first half of 2021, -16% in Q1 and -22% in Q2. Rebuild demand very much wait and see approach. A major reason, a sharp hike in mortgage rates times 2.5 in a year, offset by an extension of the mortgage loan.
The year the loan period has increased by six months, but also with the granting conditions that are a lot more constraining than on the reservations market. A very sharp drop in acceleration of the decline in Q3 and Q4 landing. First estimate, a market at around 100,000 reservations versus 162,000 in 2021, -26%. Nexity, at the end of Q1, we saw a decline in the number of contacts, a decrease in the conversion rate, revealing a financing issue and a certain wait and see on behalf of our buyers. We immediately anticipated the market difficulties and shifted part of our commercial offering to individuals, to our institutional partners, be they social or private landlords.
Retail sales, we were able to outperform on bulk sales and to outperform the market and to gain market share. For over 10 years, Nexity has always grown its market share. Whatever difficulties at the moment, even outperforming when the market becomes even more challenging, and we see that in 2020, it's the result of our agility. Anticipation allows us each and every time to face these difficulties, and there's no reason for us not to have the same ambition going forward. If we look at the product rate, we're at 54% of bulk sales.
Retail sales, as I said, we followed the market trend. We limited the impact in value, only -19%, linked primarily to the rising average cost of home in the first half, 2.4% in the Paris region, 3.2% the region. That's an increase of 2.5% on average. Bulk sales. Our partnerships with institutional clients, also new private investors, allowed us to outperform by offering products, meeting their needs, outperforming both in volume above all in value. We're seeing an increase in the average price of 13% linked to a different geographic mix and a new offering, including the Build-to-Rent, increasing rents, delivering expected profitability, improving the average sale price of the home.
Since we have rebuilt our commercial offering, thanks to an increase in delivering a planning permission, because we've seen a 16% in planning permission versus 2021, we have a sound commercial offering, really not exposed to market fluctuation. 70% of this offering rests on deals that have been learned, that has not been acquired and construction not started. On all these transactions, we can either redirect our bulk retail mix or to reconfigure transactions if need be. Over to Jean-Claude. Thanks. I'll start with commercial real estate, which since the COVID crisis, as you know, is experiencing a significant market dip that continued into 2022. Just to illustrate this as a metric, we have the investment trend, which overall is down 2% versus the previous year, still not back to its decennial average.
In Q4 of the year was down 49%, which really puts a stop to this activity sector with a different lens for investment. An investment that is more driven on regional cities than in the Paris region. A second trend that's underway on this business sec is that of transformation of usage is very profound that forecasting over the next 4 or 5 years an anticipation of a decrease in traditional leases, 3-6-9, in favor of coworking spaces set to rise sharply over the next 5 years. We're in a situation to be able to capture this trend.
This trend really does illustrate something that we posted when we presented our Imagine 2026 strategic plan, a shift of value from the product to usage. Of course, in this residential market, our commercial activity is suffering. Our revenue is down 23% and our order intake on this activity, EUR 190 million full year, with a distortion reflecting the current market situation, regional predominance representing 70% of order intake. Just to illustrate the fact that we're still in a position to deliver to the market, the products that they're expecting. We're moving forward on La Garenne-Colombes, expected to be delivered in 2024. We recently delivered our regional headquarters at Lyon Vaise. Final point on this activity segment.
The fact that we have in the same activity, have both development and coworkers will be able to capture the market recovery build to mix as we announced as part of Imagine 2026, our strat plan, our product expertise and our usage expertise in terms of coworking. On service activity as well. Here we see a very strong growth momentum up 10% top line. If I review the three segments, property management, distribution and services property by order of the revenue side. On property management, very good resilience of the business that in 2022 began to reap the impact of cost inflation offset as regards ADB by net growth in the number of units under management.
Which is an historic performance and good performance in terms of transaction offsetting the slowdown in rental in the second half. ADB activities that is stable up 21% property management. Here we're seeing a competency between property management for companies slightly down in revenue owing to customer demand that leading to a revision of scope and through an acceleration of commercial property management. There again, a flat revenue. Distribution reflects very fine performance achieved. Now the reservations booked, -17% as against the market, down 26%. Very fine performance in terms of transformation of deeds for Selection and PERL. That's a growth in revenue of +7% full year.
The serviced properties growing strongly, as we'd already stressed for H1. It's a confirmation of this very strong acceleration, driven essentially by coworking. On coworking, the prime activity, Morning activity has really seen its revenue doubling. We now operate 38 spaces, average occupancy rate of 27%, making this activity growing strongly and profitable. On student residences, very strong rise. Occupancy rate up 4 points, reaching 97%. The occupation level was almost close to 100%, never seen before, so that's a revenue growth totaling 38%. The final point really just to illustrate our ability to deliver our commitments to the market and to adapt to the current market changes.
We identified as part of Imagine 2026 that the acceleration of eco-renovation and ever-increasing demand for that. We're really well-positioned to capture our leadership position. For residential, we're very active. For condominiums, 75 condominiums being renovated or under renovation. Over 500 buildings in the study phase that we put in place. For the landlords who rent, we have over 500 energy audits underway. All this to say that we have expertise recognized by the market that's meeting the demand of our clients. We have the same thing for tertiary, where we're supporting 400 buildings, 2 million square meters, to ensure that they're compliant with the Tertiary Sector Scheme. It's a strong signal of our ability to capture significant market share in a new demand expressed by our clients. Over now to Nadia for the financials.
Good evening, everyone. I'd like to begin by looking at the consolidated income statement. We will be able to easily compare with last year. For 2021, it has been restated, including non-recurring items and including Century 21, which came in last year. 2021 included Angelotti, which took place in October, as Veronique said. For insignificant amounts, non-significant amounts, because it only affected the last two months of the year. The revenue was EUR 4.7 million, which was above what we had anticipated and 2% above last year. The operating profit, EUR 367 million, which is stable with regard to last year's historic levels, with a margin of 7.8%, with an objective around 8%.
With regard to the income statement, we have an improvement of EUR 10 million, giving the active management of our indebtedness. We've also improved our income expenses, income tax expenses with 28% compared to 38% in the previous year. We have about EUR 8 million in performance. These are among the highest historic results of the years. 2022 has seen a strong turnaround in the market, and we have net earnings per share at EUR 3.40, which will be approved in the next annual general meeting in May. We have some key figures by business lines. In particular, we see the growing share of services, 22% of the revenue. This is four times greater than the previous year. We can see this is a growth sector.
We also have increased our income in regard to transformation. We can see that the income is up 2% with different results in different business lines. Residential is up 3% over the year, with a very dynamic fourth quarter up 15%. This is in particular with regard to reservations and transformation. International activities contributed for EUR 200 million to this, and this will not be the case in 2023 because we have stopped these activities. They have been extinguished. With regard to commercial real estate, it has been dropped as expected. Just below EUR 400 million, given that it was a very high basis in 2021 and that there were very few orders taken in 2022.
We can see the great operations that are currently in our backlog and the Eco-campus activity will certainly bring growth to this sector next year. Finally, for services, once again, this has been a driving force for our Natixis' growth, and we have seen a good dynamic in Jean-Claude's management, and this should continue through next year, whereas distribution will certainly be facing a much less prosperous situation. When we look at operating profit by different business lines, we can see that all business lines will have profitability. With regard to development, we have reached a stable level, levels of profitability, up 8% for residential, almost 12% in commercial real estate, and services up 9.8%. We have thus seen that the levels are higher than they had been expected.
For services, the profitability is in strong increase, which is now almost at 12%. All of the service activities, management and distribution and operation, have all seen their profitability increase in 2022. Let's look at the balance sheet. As of December 31, we have a very good end of the year with more than EUR 2 billion. This is EUR 5 million more than 2021. Net indebtedness at EUR 820 million. We have just about 2 times EBITDA as we had expected. The balance sheet is at a gearing rate at 40%, which is considered moderate. Our needs for operating funds are about EUR 3 billion. Here we see working capital requirements. There are two messages here concerning the changes in this working capital requirement.
We see that the stable WCR, but it has increased in residential real estate, which is the main WCR for the group. This increase is related to delayed starting of building projects and delayed offering of rental properties. This is in the context of the current inflation rates. You can see that we're at a very reasonable rate for our backlog ratio. In the second half of the year, it remained stable for working capital requirements. This is a reflection of the good management of our projects and the increase of collections at the end of the year, thanks to bulk sales in particular. This working capital requirement includes the land bank.
This is the last line of the table. It remains stable around EUR 280 million within the EUR 300 million envelope that we had established with acquisitions around EUR 500 million, which is equivalent to the land that received authorization for building. Now we look at net debt. We can see that despite acquiring Angelotti, we have managed to maintain a reasonable level of indebtedness. We had EUR 280 million use of cash in the first half. For the second half, the free cash flow was up to EUR 138, so much higher than the first half of the year compared to EUR 142.
This decreased indebtedness while enabling us to focus on external growth and acquire Angelotti for about EUR 80 million, which is the main part of our investments, our financial investments over this period. Finally, we can see that applying IFRS to the Polish entity has led to the reclassification for about EUR 8 million. Overall, we have a financial structure that is very healthy. More than 50% of the debt is at a fixed rate, which limits our exposure to the current rate. You can see up on the left of 53% of the debt is long-term debt at a fixed rate. We have been able to keep our indebtedness at a stable rate of 2% for 2022. In 2023, we expect a moderate increase around 3%.
We also have an indebtedness structure which is very healthy because without any repayment of bonds over the next 2 years. As you see on the right, we have a maturity schedule that will enable us to continue to be active on the market in the years coming. I would conclude by saying that overall, as Véronique has said, we are quite happy to be able to renew our banking contracts that have accompanied the growth of the group. This financing has been secured for the next 5 years for very high amounts, about EUR 3 billion overall, EUR 800 million in a credit line, EUR 2.1 billion engagement through signatures. This involves all the major French banks, which shows that they are convinced that Nexity will be a good actor on the market, and that we do have the means to continue to grow.
I'd like to pass the microphone back to Véronique for her conclusions.
Thank you, Nadia. First of all, let's have a quick look back at what we said in September. We had an objective to become a leading operator and a global real estate operator. In the short term, we have really been able to accelerate this strategic goal. We are a premium leader with regard to construction costs and bulk sales in particular, because as Stéphane said, we had 54% of bulk sales. You can see that we have had very significant partnerships that have enabled us to achieve this. We are also a leader in sustainable cities and real estate sector decarbonation. We have a new Green Deal with the state.
In 2022, as we had committed ourselves to, we have improved by 10% with regard to the permits that were granted. We are really the leading low-carbon real estate developer in the sector. The green value of our business will only increase in the coming years. We talked about new offers and stepping up managed real estate, which is very interesting to investors, whether they are individuals or institutional investors, and we have done very well in those fields. With regard to the outlook for 2023, in the context, we have, I'd like to quote an economist who I think has a good understanding of this market. "There will be fewer constraints on monetary activity in 2023.
We will see that the central banks will certainly be taking their foot off the gas. This means that our projections for 2023 are based on this type of wait-and-see market. As the leader of your company, my way of working is to work towards achieving the objectives that have been set. I think next year at the same time, I would like to be able to tell you that we were able to achieve what we had promised you. It's a real challenge in such a period of transition as we're living through now, especially because we've seen that the rates will certainly rise in the weeks to come. Nonetheless, markets probably expect the rates to be even higher than some predictions have said. In the coming weeks, I think that our customers will be losing purchasing power.
I think that for the first half of 2023, we could have sales that would be similar to 2022, excluding international, so it should be stable, and we expect it to be above EUR 4.5 billion. That is stable, excluding international. The operating profits, which take into account the need of adjustment for this transitional year because there will be an increase, a very quick increase in interest rates. Nonetheless, we expect to surpass EUR 300 million. We plan for 2023 that our margins will reflect. First of all, we will see production of projects that began in 2021 and 2022, and that will now be on the market with more bulk sales, more operations also that will be abandoned because they're not viable.
Also, we will see that it will be harder to generate upsides given the increase in costs and with the lowered purchasing power will continue to plague our customers. I feel comfortable with these financial targets, and I think this will something that we will be able to achieve, and particularly when I look at our backlog. Now I think the questions are open.
Sorry for that interruption, ladies and gentlemen. If you'd like to ask a question or comment on today's call, please press star one of your telephone keypad. First question comes from Christophe Chaput from Oddo. Your line is open.
Good evening. With stable excluding international, just like to know, could you specify once again 2022 how much international the disposed scope contributed to the recurring operating profit? On the guidance items that you just set out, notably, operating profit above EUR 300 million, there were items of pressure on this. If I read you right, residential real estate, we do understand that on the operating margin for the services and commercial real estate, it will be at least stable. Those are my questions.
Hello, Christophe. Perhaps I can answer the first question with regard to international. As I said, the sales for 2022 by international affairs was about EUR 200 million sales. With regard to Europe, this operating profit and profitability contributed to 2022. The main effect in Europe, and this is of course the weight on the ROC. There was the shock of inflation, of course, on services and sales. Services, of course, were really hit by the inflationary costs of insurance and others. Yes, and services-
Yes. Services, we have three activities, management, distribution, operation and a focus on operations really doesn't pose a problem going into 2023. Of course, on management services with the fixed cost business, there's an inflation impact, in part resolved by passing through in our service prices, but we have a regulated business, so we don't have full ability to do that. We can't pass through everything, so there'll necessarily be an impact on us on the management activity with regard to the profitability in 2023 and on distribution, while the issue is elsewhere, which is that the retail investment market has individuals has dried up in 2022, and this is projecting into 2023. The activity is gonna see its revenue and earnings slow down. Okay, next question.
Yes, please.
Just to help us on a bit more on the residential real estate. You're above 8% in terms of operating margin. That's a very good performance. Maybe on 2023, could you give us some a target of profitability or range? 'Cause I assume that the target must be very challenging at the start of the year. To see kind of the landing as you progress.
Well, I'd like to say that the guidance that you've just been given is that at this phase, it's really the beginning of the year, where there's a lot of uncertainty and the guidance that we can give you is cannot go any further than what I've already said. As I indicated, in 2022, we had high levels of profitability for development for both residential and commercial buildings. These were levels that were higher than normal for both activities. In terms of sales and marketing, I think that we will be integrating the margins on these two activities in 2023.
Thanks. Next question comes from Emmanuel Perrot from Gilbert Dupont, your line is open.
Yes. Good evening. I hope you can hear me. Sorry, 'cause my line's cutting out, I can't hear very well. Thanks. My first question on internationally, if I've understood, we're talking EUR 200 million consolidated revenue in 2022 and a cash in that you expect of EUR 200 million during the course of 2023, right?
In total, yes. The impact of the indebtedness is EUR 200 million, about EUR 1 million or half of that on assets in Portugal and Poland that have been extinguished and another half are assets that are in management.
The goodwill associated with that EUR 200, I mean, there's no risk of a goodwill impairment on that, no?
No risk.
My second question was more on the expected debt evolution to be expected in 2023. Net debt to EBITDA. Is that metric gonna be kept in 2023 if we don't take into account the EUR 200 million of cash hit? Is the likelihood that that might be exceeded or not? Or putting my question perhaps more bluntly, will net debt continue to rise in 2023 if we don't take the EUR 200 million of cash in?
That's a good question. We are confident in our capacity. I'll give you the short version. We are confident that we will be able to remain below the Imagine 2026 plan of 2.5 times established. I think the leverage ratio will be comparable to 2022, although it may from time to time go beyond that on the 30th of June in particular, given the level of activity between the first half and the second half of the year. We expect to have free cash flow over the period with a good management, a significant external growth that is expected in 2023 because we will be focusing on the integration of Angelotti, and we will be finalizing our extinction of the other international projects. This will consolidate.
That's with or without the EUR 200 million on international.
That includes the EUR 200 million, the first figure is without.
Okay. Great.
Maybe I could also add that throughout the plan, we should not go beyond 2.5x EBITDA, and we should end at 2.1.
Maybe just one final question. You haven't really mentioned, but on the limit of dividend, 2023 versus version 2024, so a target of maintaining that 2.5 EUR per share. Can that be an adjustment variable to really maintain that 2.5x EBITDA multiple? You confident you'll be able to distribute that?
We will look at this in due time and then at next February during the board meeting. There is so much uncertainty with regard to the evolution of rates, about inflation. I think that we'll have to look at this again in September.
Okay, one final question on the change in construction cost. How has it been trending? One of your peers mentioning stability maintained at a kind of a rather high level since last summer. Do you agree with that, Stéphane?
Yeah. It's true that BT01, which is the construction index, posted +6% at the end of 2022. We're seeing a rise slightly below. That's due to our volume effect and everything we put in place in bulking up purchasing and the strong industrial partnerships. What we're seeing since early 2023 and what kicked off at the end of 2020s is a kind of a leveling off of prices. Construction costs remain high. We haven't planned in our forecast a decline, a decrease, but more kind of leveling off, tracking inflation and energy prices that fluctuate.
All our new projects are configured with these new construction. On the balance sheet, the Prudential rule should allow to offset a slight fluctuation. Yes, we're seeing a slight stabilization.
Okay, thanks for those answers.
Final question comes from Jean-Pierre Levaye from LLM. Your line is open.
Good evening. Thanks for taking my question. I've actually got three question. I think I missed the pace at which you're exiting international. There's an acceleration in your exit from international ops. Could you repeat why you decided to shut down everything? My second question, you're explaining very clearly that prices per square meter on bulk sales were more than held 'cause they're sharply up versus retail, which seems counterintuitive. Could you explain this? I know the question was asked earlier. I didn't understand the answer.
I understand there's kind of a geographic mix, a new services. If you could perhaps explain that in greater. Final question, the land market for land is changing. Previously, one of your peers who reported before you listed that land prices are declining. I don't know if it's fantasy or reality. Some of the developers who jettisoned their operations paid the money are coming back to more interesting prices. Could you give us your feedback on this take? Thank you.
Thank you for these three questions. I'll answer the first. With regard to international, there's not necessarily an acceleration. On the contrary, I would say that we're a bit behind because last February, we had made announcements and then the war in Ukraine came along, and our projects were postponed. We had to evaluate the environment we were working in. We really began working on the second half of the year. Today, for Poland and Portugal, we have advanced quite well. We have our first offers for some of these assets.
Why, are you exiting all of a sudden, even if you announced it a year ago?
Well, this is a choice. International is much riskier than if we focus on France. It's much more complex. It's hard to control the risk. The BFR is much higher. I believe, and I have always believed, that with the green value and all the transformation and urban regeneration that will be taking place, we really have markets that will be opening here in France, and that it was important to dedicate our resources to that. That was the first choice that I made as of last year. Perhaps it took us a while to make this decision about stopping some of these international activities, but...
Turning now to the average price of +13% on bulk sale, it's linked to two facts, a different geographic mix, let me explain, versus the year 2021 are institutional investors and notably our social landlords have faced the housing units in A bis that have a higher value than those in Zones B and C. That drives upwards the average price. A new offering we put on the market is sold to institutional investors from the private sector, making B to Rent, Build to Rent that increases the expected rent with the same expected profitability, increases the price of the housing unit. We can have an average value of about 13%. You have a rental guarantee for the Build to Rent. What does that mean? No.
They're actually services that we put in place within a building and allows the investors to offer the same home but with higher rent, including service. We also sell the service because we're a global relay operator. For Build to Rent on deals, we'll sell this. It's an Urban Campus that assures them. In addition to that, we can obtain fees at group level. It's not the double whammy, it's actually the double benefit. Turning now to the price of land, we'd all like to see a decline. Of course, we're seeing not a decrease, but since slightly construction costs are leveling off because property developers are increasingly cautious on the exit value, which avoids this, avoids fierce competition on land prices. We've heard some of our peers say that prices were decreasing in Paris.
We're seeing actually, in real life, it's more a stagnating than an increase. It's true that versus 19, pre-COVID, we're seeing that there's been an acceleration in the price of land. We're all calling for a return to a pre-COVID situation with more reasonably priced land plots, which is obviously a key factor in our cost price, 'cause on average, it represents 25% of our cost price. If the price of land decreases, we should have home prices way below those of today.
I think that it's important that these, that this housing be available to citizens. This will be part of the market regulation. I agree with you when you say that land prices will drop off.
Okay. Can we imagine there will be small property developers who might be in a stressed situation, who might have a portfolio where you could do some M&A, or is that not really in the cards for you?
Well, it was the case already back in 22. We see that there was a consolidation of players, more the market consolidation because many small property developers no longer had a clear take on the cost price, brought their transaction to us. It's really easier for us because our size in terms of construction that we can really generate an acceptable cost price. We've been able to recover some deals. Thank you. Your explanation's already crystal clear. Meeting's very well-organized. Congratulations to all who organized these sessions. Thank you to have the meeting in both languages.
That's always very useful.
We have further questions. The next question comes from Marie-Line Fort from SocGen. Your line's open.
Good evening. Thank you. My first question concerns commercial real estate. Do you think that the market for business buildings will pick up again? I think you have significant deliveries this year. Do we have an idea of what your lending will be in 2023, 2024? Beyond that, what type of cycles will we be looking at? Would it be possible to have an idea with regarding the margins for EBITDA? Could we have more granularity with regard to that, given the provisions that we have to prepare for 2023? A final question with regard to your guidance for ROC. What will be the contribution of Angelotti in 2023? Is this included in your guidance? Thank you.
Hello, Marie-Line. I can answer the first question with regard to La Garenne-Colombes.
Jean-Claude can answer about business real estate and services picking up. La Garenne-Colombes, you know, this is an, a record order for us, about EUR 1 billion, and we're 50% completed at this. There's EUR 500 million that will be coming in 2023, 2024 with regard to that operation, so it's about 50/50. A little bit more in 2024 when it will be delivered. A bit more in 2024 than 2023.
Turning to the commercial property sector, it'd be difficult to give you a firm date for the exit of the tunnel. What I can say is what I presented in market developments is such that today, the market players that we are working on the offering proposals that are consistent with usage change. There's place demand out there that exists. It's up 10% this year. It is set out very clearly what is asking for flexibility. It wants low-carbon, it wants regionalization and services. We're working on such offerings that we're proposing to investors. I think the product, when investors will be able to decide, because there's an issue they have to the trade-offs in their asset portfolio.
What we're seeing on the Paris region, where in-investment collapsed in the second half of the year. What does it say? Which is the prime French market just says there's an issue of market structure and repricing of the activity portfolio. Once investors have done their repricing homework on the portfolio, the issue of renovation of their properties will open up genuine prospects for operators offering, mixing both capacity on the products and also onboarding new usages. It so happens we're the best placed.
With regard to Angelotti, Marie-Line. Angelotti, when we acquired it, represented about EUR 200 million in sales, and I can confirm that it has been integrated into our 2023 objectives for the full year.
Service margin is around 10%, margin that we have on that segment, and then there are disparities. For example, in 2022, where distribution were driving the margin upwards because it was break-even activities we outperformed in revenue terms. There's a higher level on that distribution activity. For the half, we can indicate that coworking activities for some EUR 100 million this year are positive. That's good news, and it confirms the strategy of the model, good occupancy rates. In 2023, we should reach our normative margin of around 8% on this segment.
The final question comes from Pierre Clouard from Kepler Cheuvreux. Your line's open.
Yes, thanks for taking my question. In fact, I've got two.
Don't think I saw your anticipated reservations for the market and your market share. I know there's a lot of uncertainty, and for several years that you've been sticking your neck out there. You're ready to do the same in 23? My second question on the guidance on the margin, I was looking at the past history, EUR 300 million of operating profit. That's about 6.7%. That's a margin rate that you never reached, say, when we shut down the construction sites in 2020 for 2 months. Since 2017, you never reached that margin rate. Trying to understand to what extent you're being a bit prudent on this operating margin.
Yes, it's a very perspicacious question. Indeed, I think we can say that the market in 2023 will be lower than in 2022. There is such a degree of uncertainty that I would not like to give an estimate of the market at this point. The second subject was? The margins. I think that these are evaluations and estimates that we make at the beginning of the year based on the three main elements that we have, as I expressed them to you. If during the year things improve, we will communicate that. I continue to believe that 2020 was COVID.
That had a big impact. I think the rapid increase of interest rates that have intervened over the past 6 months is an event that is rather rare and that really has a hard impact on us and a hard impact on our customers with regard to their purchasing. We shouldn't forget some of the simplest things. We did calculations. If I remember well, someone who wants to borrow EUR 400,000 today over 25 years has to have EUR 1,000 more income per month than he needed 5 years ago. This is huge in order to have access to a real estate loan. This has really been a shock to the market. Maybe things will calm down in September.
This would be good news, but we all know that interest rates will continue to rise, and the impact on household purchasing power has been huge. The margins that you calculated quickly, I think, honestly, with these margins, we will be overperforming our market and our competitors.
Yes. Thank you. Very good. That's crystal clear. Thanks.
Thank you all, and have a good evening.
Thank you for taking part in today's call.