Sustainable outperformance
- Strong Recurring Net Income up +8.4% per share
- Portfolio valuation stabilized (+0.2% LfL) leading to NTA at
€142.1 per share
- Strong rental uplift captured in both on offices (+14%) and
residences (+15%)
- Sound balance sheet with low LTV at 35% and decreasing
financial expenses
- 2 new emblematic and accretive large development projects to be
launched in Neuilly and Paris City
- Guidance confirmed: RNI per share expected between €6.35 and
€6.40 (i.e. +5.5% to +6.5%)
Regulatory News:
Gecina (Paris:GFC):
Strong Recurring Net
Income growth per share (+8.4% in
H1-2024), for the 3rd consecutive
year
- Centrality: +6.3% LfL rental
growth
- Rental uplift along tenants’ rotation on residential
segment (+15%) and offices (+28% in Paris, +14% in average)
- Indexation still supportive (+5.4%) and roughly stable
occupancy
- Pipeline: accretive contribution
(+€7m)
- Fully pre-let office assets delivered in 2023-2024
(Boétie-Paris CBD and Porte Sud-Montrouge) and one residential
project in Ville d’Avray
- Best in class balance sheet:
decreasing financial expenses (-€8m)
- Stable cost of drawn debt at 1.1%, with optimum hedging
(c.100% until end-2026, and 84% in average until end-2029)
- Net debt lowered by -€0.8bn following disposals since early
2023
Portfolio value stabilized
driven by central locations
- Portfolio valuation up +0.4% LfL (Offices) over 6
months
- Revaluation +2% in Paris City …
- … offsetting still decreasing values outside (-2% La Défense,
-5% secondary locations)
- NTA stable at €142.1 per share (-1% in 6
months)
Preparing future growth
- In an uncertain context, best in class
balance sheet provides agility and capacity to fund development
projects
- Stable LTV at 35.0% (incl. duties) vs. 34.4%
end-2023
- ICR up to 6.7x (vs. 5.9x end-2023)
- €4.1bn extra liquidities covering bonds redemptions
until end-2028
- New emblematic large projects to be
launched, with strong accretive potential in central
locations
- 2 new redevelopment projects in Paris City and Neuilly:
55,000 sq.m to be delivered by 2027. Nearly €280m capex
required for more than €30m potential new rents
- Total « committed » or « to be committed » pipeline requiring
€850m capex from 2024 to 2027, for c.€100m to €120m
potential new rents
- Deploying promising new business approach
on « ready to use » operated offices and residential assets
- Yourplace, a « plug and play » office solution, to be
progressively deployed (5,000 sq.m today), floor by floor in c. 40
assets in Paris, providing extra rental return of more than
+20%
- Fully-amenitized apartments also to be progressively deployed
on residential segment in the coming years, 150 units on going that
way, 600 expected by early 2025
- Energy consumption reduction: -3.4%
further decline in H1, after already strong achievement in 2023,
illustrating Gecina’s CSR leadership
2024 Guidance confirmed
Recurring Net Income expected between €6.35
and €6.40 per share (i.e. +5.5% to +6.5%)
Beñat Ortega, Chief Executive Officer: “The first-half
performance is particularly strong and reflects Gecina’s unique
position, which benefits from both the quality and the very
favorable location of its portfolio, generating organic growth, and
an accretive pipeline, ramping up this growth, as well as a
particularly robust balance sheet, protecting our cost of debt. As
a result, recurrent net income shows a rarely achieved level of
growth with +8.4%. But looking beyond this very solid
performance for the first half of the year, Gecina has an
opportunistic strategic position, with a financial structure able
to not only withstand the uncertainties faced, but also finance
projects to create value and drive growth. While the valuation
of our portfolio stabilized over the first half of this year, we
are increasing our visibility and the rental markets in central
areas are positive, our balance sheet enables us to launch the
development of two major operations, in Paris (Gamma) and Neuilly
(Carreau de Neuilly), which will help drive the Group’s
outperformance over time. Alongside this, we are ramping up the
rollout of new “serviced” offers for both offices and residential,
which will also support the Group’s ability to deliver sustainable
outperformance”.
In €m
Jun-23
Jun-24
Current basis
Like-for-like
Offices
266.6
279.3
+4.8%
+6.5%
Residential
66.3
63.8
-3.8%
+5.4%
Gross rental income
332.9
343.1
+3.1%
+6.3%
Recurrent net income (Group share)
216.5
235.1
+8.6%
Per share (€)
2.9
3.2
+8.4%
Dec-23
Jun-24
LTV (including duties)
34.4%
35.0%
EPRA Net Reinstatement Value (NRV) per
share
158.1
156.5
-1.0%
EPRA Net Tangible Assets (NTA) per
share
143.6
142.1
-1.0%
EPRA Net Disposal Value (NDV) per
share
150.1
149.5
-0.4%
About Gecina
As a specialist for centrality and uses, Gecina operates
innovative and sustainable living spaces. A real estate investment
company, Gecina owns, manages and develops a unique portfolio at
the heart of the Paris Region’s central areas, with more than 1.2
million sq.m of offices and more than 9,000 housing units, almost
three-quarters of which are located in Paris City or
Neuilly-sur-Seine. These portfolios are valued at 17.1 billion
euros at end-June 2024.
Gecina has firmly established its focus on innovation and its
human approach at the heart of its strategy to create value and
deliver on its purpose: “Empowering shared human experiences at
the heart of our sustainable spaces”. For our 100,000 clients,
this ambition is supported by our client-centric brand YouFirst. It
is also positioned at the heart of UtilesEnsemble, our program
setting out our solidarity-based commitments to the environment, to
people and to the quality of life in cities.
Gecina is a French real estate investment trust (SIIC) listed on
Euronext Paris, and is part of the SBF 120, CAC Next 20, CAC Large
60 and CAC 40 ESG indices. Gecina is also recognized as one of the
top-performing companies in its industry by leading sustainability
benchmarks and rankings (GRESB, Sustainalytics, MSCI, ISS-ESG and
CDP).
www.gecina.fr
Recurrent net income: robust growth confirmed over the
past three years
In million euros
Jun 30, 2023
Jun 30, 2024
Change (%)
Gross rental income
332.9
343.1
+3.1%
Net rental income
301.3
313.1
+3.9%
Operating margin for other business
1.0
0.8
-25.7%
Services and other income (net)
1.9
0.5
-71.7%
Overheads
(39.7)
(39.4)
-0.8%
EBITDA - recurrent
264.6
275.1
+4.0%
Net financial expenses
(47.5)
(39.4)
-17.1%
Recurrent gross income
217.0
235.7
+8.6%
Recurrent net income from associates
1.1
1.3
+17.3%
Recurrent minority interests
(0.9)
(1.0)
+5.9%
Recurrent tax
(0.8)
(1.0)
+29.9%
Recurrent net income (Group share)
(1)
216.5
235.1
+8.6%
Recurrent net income (Group share) per
share
2.93
3.18
+8.4%
(1) EBITDA after deducting net financial expenses, recurrent
tax, minority interests, including income from associates and
restated for certain non-recurring items, excl. IFRIC 21
Recurrent net income (Group share) is up +8.4% per share
to €3.2, thanks to the combination of robust rental trends and the
optimization of rental expenses, overheads and financial
expenses.
Like-for-like rental
performance: +€19m Growth driven by particularly
favorable rental trends on Gecina’s core markets, reflected in the
rental uplift captured and the positive impacts of indexation.
Operations relating to the
pipeline (deliveries and redevelopments): +€7m in rental
income Recurrent net income (Group share) benefited from the
positive impact of the assets delivered following
redevelopments or long-term renovations. In total, +€7m
of additional rental income was generated by the recent
deliveries of office and residential buildings. These include
the Boétie-Paris CBD and Ville d’Avray buildings, as well as
various buildings relet following long-term renovations (3 Opéra,
Horizons) and, to a lesser extent, the Montrouge-Porte Sud
building, delivered during the second quarter of this year.
Asset disposals: -€16m net
change in rental income The high volume of disposals completed in
2023 (€1.3bn of disposals, with a loss of rental income of around
2.5%) was concentrated primarily at the end of the first half of
the year, with a negative impact on half-year gross rental income,
while also making it possible to achieve a significant reduction in
financial expenses.
Rental margin up +80bp
Group
Offices
Residential
Rental margin at June 30, 2023
90.5%
93.2%
79.6%
Rental margin at June 30, 2024
91.3%
93.6%
81.0%
The rental margin is up +80bp over 12 months. This increase is
linked primarily to the higher average occupancy rate and costs
being charged back to tenants more effectively.
EBITDA margin up +70bp: overheads under control In a still
inflationary context over the past 12 months, the Group paid
particularly close attention to changes in its overheads. This
focus delivered benefits across all of the Company’s cost areas,
including a reduction in overheads. As a result, the EBITDA margin
shows a significant increase, up +70bp year-on-year.
Net margin up +3.5pts: favorable trend for financial expenses
Financial expenses are down -€8m, reflecting the reduction in the
volume of net debt following the disposals completed at the end of
the first half of 2023, as well as the strategy built by Gecina
over the past few years to hedge the Group’s debt. With an average
cost of drawn debt that remained at 1.1% (1.5% including undrawn
credit lines) and net debt reduced by an average of -€800m between
the start of 2023 and the first half of 2024, Gecina is benefiting
from an accretive contribution from its financial expenses to
recurrent net income growth.
Gross rental income growth, particularly on a
like-for-like basis
Gross rental income
Jun 30, 2023
Jun 30, 2024
Change (%)
In million euros
Current basis
Like-for-like
(%)
(%)
Offices
266.6
279.3
+4.8%
+6.5%
Residential
66.3
63.8
-3.8%
+5.4%
Total gross rental income
332.9
343.1
+3.1%
+6.3%
Like-for-like, rental income growth exceeded the already
high level reported at end-2023, with growth of +6.3% overall (vs.
+6.1% at end-2023) and +6.5% for offices.
The like-for-like performance primarily reflects the impact of
indexation and the rental uplift captured in central sectors:
- Impacts of indexation, for +5.4% -
Rental uplift, contributing +1.2% - Contribution by the
change in the occupancy rate and other marginal effects
stable overall for the first half of 2024 (-0.3%)
On a current basis, rental income is up +3.1%, benefiting
from not only the robust like-for-like rental performance (+€19m),
but also the pipeline’s significant net rental contribution
(+€7m), offsetting the impacts of the volume of disposals,
primarily completed at the end of the first half of 2023
(-€16m).
Offices: positive rental
trends in central areas
Gross rental income- Offices
Jun 30, 2023
Jun 30, 2024
Change (%)
In million euros
Current basis
Like-for-like
Offices
266.6
279.3
+4.8%
+6.5%
Central areas (Paris, Neuilly,
Southern Loop)
194.2
203.6
+4.8%
+7.1%
Paris City
154.7
159.1
+2.9%
+6.0%
Core Western Crescent
39.5
44.5
+12.7%
+11.7%
La Défense
35.2
37.9
+7.7%
+7.7%
Other locations
37.2
37.8
+1.5%
+2.7%
For the first half of this year, the rental market shows an
outperformance by the Paris Region’s most central sectors. The
volume of rental transactions on the Paris Region market for the
first half of 2024 is slightly lower year-on-year (-5%), masking
significant contrasts in trends between the areas.
In Paris for instance, take-up shows an increase of nearly +12%,
with supply close to an all-time low (vacancy rate of 2.7% in
Paris-CBD), while the volume of rental transactions is down -18%
for the rest of the Paris Region.
In this context of a scarcity of supply in central sectors, the
volume of transactions signed by Gecina since the start of the year
(nearly 30,000 sq.m) reflects the spaces available for letting
across its portfolio, helping capture significant rental uplift in
central areas.
Like-for-like office rental income growth came to +6.5%
year-on-year, benefiting from the positive indexation effect
which is continuing to ramp up (+6%), passing on - with a delayed
impact - the return of an inflationary context, as well as the
impact of the positive reversion captured (+1.1%).
Since the start of the year, nearly 30,000 sq.m have been let,
relet or renegotiated. The vast majority of the transactions
carried out during the first half of the year concerned relettings
or renewals of leases.
- Overall, the average reversion captured came to
+14%.
- This performance was driven by central sectors in particular,
with reversion reaching nearly + 28% in Paris City.
- In the most central sectors (86% of
Gecina’s office portfolio) in Paris City, Neuilly-Levallois and
Boulogne-Issy, like-for-like rental income growth came to +7.1%.
The impact of rental reversion on these sectors is particularly
marked, contributing +2% to like-for-like growth.
- On La Défense market (7% of the
Group’s office portfolio), Gecina’s rental income is up +7.7%
like-for-like, linked mainly to the effects of indexation and
occupancy, while no impact was recorded for rental reversion.
- In secondary sectors (Péri-Défense,
Inner and Outer Rims, and Other regions), like-for-like rental
income growth (+2.7%) was supported by high indexation (+5.1%), but
significantly limited by the effects in terms of occupancy (-2.3%)
and the contraction in market rents (-1%).
Rental income growth on a current basis came to +4.8% for
offices. The robust like-for-like performance and the pipeline’s
positive contribution more than offset the full impact of the
disposals carried out in 2023.
Gecina is continuing to gradually roll out its Yourplace office solutions
Since mid-2023, Gecina has been gradually rolling out its
Yourplace range of serviced offices, with a “ready to use” approach
(furnished and featuring a wide range of services), in the Paris
City’s most central areas. This offer is a response to growing
demand for small and mid-size units (under 1,000 sq.m) in Paris’
Central Business District that are flexible and ready to be
used.
Nearly 5,000 sq.m have already been let based on this
format, enabling Gecina to capture a significantly higher
operating margin than with traditional ways of operating. This
model will be developed floor by floor, at around 40 of the Group’s
buildings – meeting the criteria needed to ensure the relevance of
this letting approach - over the coming years, along tenant’s
rotation on this part of the portfolio. From 2025, nearly 15,000
sq.m could be let in line with this model.
Residential: operational trends confirmed
Gross rental income
Jun 30, 2023
Jun 30, 2024
Change (%)
In million euros
Current basis
Like-for-like
(%)
(%)
Residential
66.3
63.8
-3.8%
+5.4%
YouFirst Residence
55.6
51.5
-7.4%
+4.0%
YouFirst Campus
10.7
12.4
+15.1%
+11.0%
The residential division’s rental income is up + 5.4%
like-for-like. This performance reflects the impact of
indexation, occupancy and the rental reversion
captured with the rotation of tenants.
YouFirst Residence: strong
operational trends Like-for-like, rental income from
residential properties is up +4.0%. This growth benefited
from a significant favorable effect resulting from the
reversion captured (+15% on average) through our tenant
rotation, which has been ramping up steadily for the past two
years.
YouFirst Campus: very strong
rental trends Rental income from the student housing
portfolio is up +11% like-for-like and +15% on a current basis,
linked primarily to the high level of positive reversion captured
thanks to the rapid rotation of tenants with this type of product,
as well as the very significant improvement in lettings processes,
particularly with the possibility offered for young workers to
become tenants, improving the occupancy rates in our residences.
Illustrating this, the number of leases signed during the first
half of 2024 was 40% higher than over the same period in 2023.
Gecina is gradually rolling out a “serviced” YouFirst
residential offering
Building on Gecina’s experience operating student residences,
the Group has been developing an offer since mid-2023 to respond to
the growing demand for furnished “turnkey” residential properties,
with dimensions adapted for new uses and an extensive range of
shared services (coworking spaces, fitness center, reception areas,
etc.).
The performance recorded on the student scope in the past few
years is therefore encouraging the Group to roll out this new
“managed” offer across its YouFirst Residence portfolio. To date,
nearly 150 apartments have already been let or are in the
process of being let under this model. By 2025, this number
could reach nearly 600 apartments.
Financial occupancy rate improving
Average financial occupancy rate -
Offices
Dec 31, 2022
Jun 30, 2023
Dec 31, 2023
Jun 30, 2024
Offices
92.8%
93.8%
93.7%
93.8%
Paris City
94.5%
93.5%
93.0%
93.5%
Core Western Crescent
89.9%
93.9%
94.3%
95.2%
La Défense
91.2%
97.9%
98.3%
99.5%
Other locations (Péri-Défense, Inner /
Outer Rims and Other regions)
90.5%
91.5%
91.9%
88.5%
Residential
94.5%
94.4%
94.7%
95.2%
- YouFirst Residence
96.7%
96.3%
96.4%
96.6%
- YouFirst Campus
86.0%
86.8%
87.7%
90.6%
Group total
93.1%
93.9%
93.9%
94.1%
The Group’s average financial occupancy rate is up +20bp over
12 months to 94.1%.
For the office scope, the average occupancy rate is
stable at 93.8%. This rate reflects the impact of the buildings
vacated during the year in Paris City, which have already been
relet, but were classed as financial vacancies during the time when
minor renovation work was carried out. If we include these
buildings that have now been let as occupied, the normative
occupancy rate reaches 95.2%.
The financial occupancy rate is up year-on-year for both central
areas (Paris, Neuilly, Boulogne) and La Défense. These sectors
represent 93% of the Group’s office portfolio. It is only down for
the secondary sectors and other French regions, which represent
less than 7% of the commercial portfolio.
For residential, the average financial occupancy rate
shows a year-on-year increase of +80bp, linked primarily to the
student portfolio benefiting from the new lettings platforms and
the ramping up of the residences delivered recently.
CSR: Further reduction in energy consumption following an
already particularly virtuous year in 2023
Energy performance plan
already particularly effective In
2022, Gecina launched an energy performance plan aiming to rapidly
reduce energy consumption, while supporting its tenants to use
their offices more efficiently.
This efficiency plan already showed very significant progress in
2023. Average energy consumption across the commercial
portfolio on which Gecina directly manages the technical equipment
consuming energy was reduced by nearly -10%, contributing to
the reduction in carbon emissions.
2023 already saw particularly strong progress with reducing
energy consumption, and Gecina continued building on this trend
through a reduction in its average consumption per square meter by
-3.4% over six months for the buildings in which technical
equipment and facilities are managed directly by Gecina. This rate
of progress is especially significant as it is already higher than
the average annual reduction rate seen before the efficiency plan
was rolled out, i.e. between 2008 and 2021 (annual average of
-2.2%).
This performance was achieved thanks in particular to the task
forces1 set up, promoting ongoing dialogue with the Group’s tenants
to support them with rolling out efficiency measures, such as
reducing the periods and temperatures for heating and air
conditioning.
Since 2008, based on the trend for the first half of this year,
Gecina expects to reduce average energy consumption (per sq.m and
per year) by -38% and carbon emissions by -74% across its entire
portfolio by the end of 2024.
Portfolio value up in central sectors
Breakdown by segment
Appraised values
Net capitalization
rates
Like-for-like change
In million euros
Jun 30, 2024
Jun 30, 2024
Dec 31, 2023
Jun 2024 vs. Dec 2023
Offices (incl. retail units)
13,551
5.2%
5.1%
+0.4%
Central areas
11,672
4.5%
4.4%
+1.1%
- Paris City
9,695
4.2%
4.1%
+1.8%
- Core Western Crescent
1,977
6.3%
6.0%
-2.3%
La Défense
947
8.3%
8.0%
-2.0%
Other locations
932
10.0%
9.6%
-5.0%
Residential (block)
3,540
3.6%
3.4%
-0.3%
Hotels & finance leases
39
Group total
17,130
4.9%
4.8%
+0.2%
The portfolio value (block) came to €17.1bn, with
a like-for-like value revaluation of +0.2% over six
months and nearly -7% over 12 months. This change includes
contrasting trends depending on the areas, reflecting a
polarization of the markets, benefiting the most central sectors,
where values are now rising (+1.1%), while values for the
residential portfolio are stable.
Overall, this stabilization of values factors in:
- A “yield effect” that is still negative, with an adjustment in
yields having a negative impact across all sectors (around
-1.6% over six months).
- This is combined with a positive “rent effect” of around
+1.8%.
These trends reflect the observations made on the investment
market, with volumes - still very restricted - concentrated in the
most central areas.
Offices: contrasting trends
between areas – slight growth for central sectors On a
like-for-like basis, the portfolio value increased slightly over
the first half of the year (+0.4%), but is still down -8%
year-on-year.
- In central sectors: increase
in values by around +1.1% like-for-like over six months, with close
to +2% for Paris City. This increase in value reflects a yield
effect that is still marginally negative for these areas, but
offset by a rent effect showing a positive trend on these markets
where supply is scarce. - In La Défense: moderate
contraction in values (-2% over six months), reflecting the
combination of a still negative yield effect (-2.7%) and a
marginally positive rent effect (+0.8%) - In peripheral areas:
more marked decrease in values (-5% over six months), combining
negative yield and rent effects.
Residential: resilient
values The residential portfolio value is relatively stable for the
first half of the year (-0.3% over six months, -2.7% over 12
months).
NAV: Net Tangible Assets (NTA) stabilized at €142 per
share
- The EPRA Net Disposal Value (NDV) came to €149.5
per share (-0.4%), with €156.9 based on unit values for the
residential portfolio. - The EPRA Net Tangible Assets (NTA)
came to €142.1 per share (-1%), with €149.5 based on
unit values for the residential portfolio. - The EPRA Net
Reinstatement Value (NRV) came to €156.5 per share
(-1%), with €164.5 based on unit values for the residential
portfolio.
The stabilization of NAV primarily reflects the stabilization of
asset values on a like-for-like basis, with the following
breakdown:
- Dividend paid in the first half of 2024: - €2.65 - Recurrent
income: + €3.2 - Value adjustment linked to the yield effect: -
€3.8 - Value adjustment linked to the “rent” effect: + €2.9 - Other
(including IFRS 16, IAS 17): - €1.1
Balance sheet and financial structure: agile structure
making it possible to capitalize on opportunities in an uncertain
context
Ratios
Covenant
June 30, 2024
Loan to value (block, excl. duties)
< 60%
37.1%
EBITDA / net financial expenses
> 2.0x
6.7x
Outstanding secured debt / net asset value
of portfolio (block, excl. duties)
< 25%
0.0%
Net asset value of portfolio (block, excl.
duties) in billion euros
> 6.0
17.1
In the current context, Gecina has a particularly beneficial and
flexible financial structure in place, which supports its strategic
flexibility, enabling opportunistic headroom, as well as long-term
visibility over the maintenance of its current balance sheet
structure.
In an environment that shows encouraging signs (decrease in
inflation and rates during the first half of the year), as well as
various factors for national and international economic and
political uncertainty, Gecina’s balance sheet structure sets out
the Group’s agility to adapt to an uncertain context. The Group is
therefore positioned to benefit from the sustainably precautionary
structure of its balance sheet, while adopting potentially more
proactive choices to move forward, illustrated by the launch of new
development operations in Paris and Neuilly-sur-Seine.
Favorable access to financing and all indicators maintained at
excellent levels or improving Since the start of 2024, thanks to
its recently confirmed strong financial ratings (S&P A-,
Moody’s A3), Gecina has proactively anticipated the refinancing of
its undrawn credit lines, signing €1.0bn of new bank credit lines
with an average maturity of nearly seven years.
Proactive management helping maintain the core indicators at
excellent levels
- Debt maturity came to 7.1 years - LTV
(including duties) of 35.0% (vs. 34.4% end-2023) is still in
line with the best levels on Continental Europe - The ICR is
now 6.7x (vs. 5.9x end-2023) - The debt is c.100% covered
by fixed-rate hedging through to the end of 2026, and 84% on
average through to the end of 2029 - €4.1bn of available
liquidity (including undrawn credit lines) covering all the
bond maturities through to the end of 2028
The average cost of drawn debt was 1.1%, stable compared
with end-2023, reflecting the relevance of the rate hedging
strategy rolled out by Gecina in previous years.
Capital allocation: €280m of additional
investments committed to (new pipeline)
For reference, the Group sold €1.3bn of real estate assets in
2023, with an average loss of rental income of 2.5%:
- 10 office buildings, for over €1bn, with a
loss of rental income of around +2.4% and a premium versus the
latest appraisal values of around +10%
- seven office buildings in Paris City (129 Malesherbes, 142
Haussmann, 43 Friedland, 209 Université, Pyramides, 189 Vaugirard
and 101 Champs Elysées), representing 21,400 sq.m
- three office buildings located in secondary sectors,
representing around 15,000 sq.m
- three residential buildings and a number of
unit sales for a total of €258m, with a +3% premium versus the
appraisals and a loss of rental income of 3.1%
Use of proceeds from
disposals: opportunistic
acceleration of the development pipeline
€850m (with €159m paid out during the first half of the
year) are being or will be redeployed between early 2024 and
2027 through value-creating redevelopment operations, with
around €100m to €120m of additional potential rental
income
€600m of investments recently paid out or to be paid out for the
committed pipeline
- €313m for operations already launched at
end-2023 and to be delivered in 2024 or 2025, with €159m
already paid out during the first half of 20242. - Additional
total of nearly €300m by 2027, on two new redevelopment
projects in Paris and Neuilly (Carreau de Neuilly and Gamma),
representing 55,000 sq.m of offices. These projects will create
strong levels of value in terms of both capital and rental
performance.
€250m of additional investments in potential redevelopment
operations to be launched over the coming half-year periods In
terms of potential redevelopment projects that are now controlled,
Gecina could invest a further €250m over the coming years. These
projects, located in Paris City, are expected to generate a yield
on cost of around 6%.
Volume of debt reduced Since the start of 2023, the Group has
reduced its net debt by over€0.8bn, enabling its LTV to remain at
around 35%. For reference, the proceeds from these disposals were
used to replace short-term financing facilities (commercial
paper) with an average cost of around 3.5%, resulting in an
accretive impact on recurrent net income per share. These
disposals also had a positive impact on Gecina’s debt
aggregates (LTV, ICR, net debt/EBITDA), as well as the level
of available liquidity.
Project pipeline: €100m to €120m additional annualized
potential rental income by 2027
Main changes expected or recorded in 2024
Seven projects delivered or to be
delivered in 2024 (74,000 sq.m), representing c.€40m of annualized
potential rental income
- During the first half of 2024, the Porte Sud building
(Montrouge) was delivered. It offers 12,600 sq.m and is fully let
to the Edenred Group.
- Six other projects representing nearly 62,000 sq.m will
be delivered during the second half of 2024.
- Two office buildings in Paris’ Central Business
District, with Mondo (30,100 sq.m), fully let to the
Publicis Group, and 35-Capucines (6,400 sq.m), fully let to
various luxury industry companies and a law firm.
- Four residential buildings (two in Paris and two in the
Paris Region) representing 25,000 sq.m.
Two new development operations, which
have now been launched (over 55,000 sq.m), will be delivered from
2027, representing over €30m of additional rental income
In a favorable rental context in central areas, Gecina has launched
two new projects, representing over 55,000 sq.m at central
locations in Paris and Neuilly, with the Carreau de Neuilly
project (36,000 sq.m) in Neuilly and the Gamma project in
Paris (19,000 sq.m). These two projects will require €280m
of investment before their scheduled deliveries from 2027 and
could generate more than €30m of potential additional rental
income.
Major new operations to be launched
over the coming half-year periods By the end of this
year, Gecina expects to launch a major new operation in Paris. This
project represents around 40,000 sq.m and could also be delivered
from 2027. Several other projects could be launched over the coming
half-year periods, also in Paris. Before these projects can be
launched, the tenants in place will need to vacate these assets. At
the end of 2024, Gecina expects to see the departure of tenants
representing an annualized rental volume of around €20m.
Pipeline committed or to be committed representing €2.6bn to
date (2024-2027)
- €691m still to be paid out from H2 2024 to end 2027
- Nearly €100/120m of additional potential rental
income
- Yield on cost of nearly 6% on the office projects
- Office projects exclusively in Paris and Neuilly
- 220,000 sq.m of projects expected to be delivered by
2027
- 171,000 sq.m of projects launched (70% offices, 30%
residential)
- 51,000 sq.m to be launched over the coming half-year periods
(92% offices)
At end-June, €437m were still to be invested out of a total
investment of €2bn including land (existing building) on committed
projects, with €140m by end-2024, €163m in 2025, €101m in 2026 and
€32m in 2027.
2024 guidance confirmed: Recurrent net income per share
growth of +5.5% to +6.5% expected (i.e. €6.35 to €6.40)
The results published for the first half of 2024 reflect the
good level of the rental markets in Gecina's preferred sectors.
This robust operational performance is further strengthened through
indexation, which remains high, and the pipeline’s positive
contribution to the Group’s rental income growth.
With the good trends for rental income growth, the improvement
in its operating margin and the visibility over financial expenses,
Gecina is on track to achieve its objectives for 2024.
Gecina confirms that recurrent net income (Group share)
growth is expected to range from +5.5% to +6.5% in 2024, with
between €6.35 and €6.40 per share.
Photo credits: Brenac & Gonzalez This document does not
constitute an offer to sell or a solicitation of an offer to buy
Gecina securities and has not been independently verified. If you
would like to obtain further information concerning Gecina, please
refer to the public documents filed with the French Financial
Markets Authority (Autorité des marchés financiers, AMF), which are
also available on our internet site. This document may contain
certain forward-looking statements. Although the Company believes
that such statements are based on reasonable assumptions on the
date on which this document was published, they are by their very
nature subject to various risks and uncertainties which may result
in differences. However, Gecina assumes no obligation and makes no
commitment to update or revise such statements.
2024 first-half earnings
1- APPENDICES
1.1 Financial statements / Net asset value (NAV) / Pipeline
CONDENSED INCOME STATEMENT AND RECURRENT INCOME At the
Board meeting on July 23, 2024, chaired by Jérôme Brunel, Gecina’s
Directors approved the financial statements at June 30, 2024. The
audit procedures have been completed on these accounts, and the
certification reports have been issued.
In million euros
Jun 30, 2023
Jun 30, 2024
Change (%)
Gross rental income
332.9
343.1
+3.1%
Net rental income
301.3
313.1
+3.9%
Operating margin for other business
1.0
0.8
-25.7%
Services and other income (net)
1.9
0.5
-71.7%
Overheads
(39.7)
(39.4)
-0.8%
EBITDA - recurrent
264.6
275.1
+4.0%
Net financial expenses
(47.5)
(39.4)
-17.1%
Recurrent gross income
217.0
235.7
+8.6%
Recurrent net income from associates
1.1
1.3
+17.3%
Recurrent minority interests
(0.9)
(1.0)
+5.9%
Recurrent tax
(0.8)
(1.0)
+29.9%
Recurrent net income (Group share)
(1)
216.5
235.1
+8.6%
Recurrent net income (Group share) per
share
2.93
3.18
+8.4%
Gains from disposals
76.5
(0.1)
na
Change in fair value of properties
(862.9)
(133.1)
-84.6%
Depreciation and amortization
(5.7)
(5.4)
-6.0%
Change in value of financial instruments
and debt
(12.0)
7.6
na
Other
(7.5)
(2.5)
-66.6%
Consolidated net income attributable to
owners of the parent (2)
(595.1)
101.5
na
(1) EBITDA excluding IFRIC 21
after deducting net financial expenses, recurrent tax, minority
interests, including income from associates and restated for
certain non-recurring items.
(2) Excluding impact of IFRIC 21
CONSOLIDATED BALANCE SHEET
ASSETS
Dec 31, 2023
Jun 30, 2024
LIABILITIES
Dec 31, 2023
Jun 30, 2024
In million euros
In million euros
Non-current assets
17,174.9
17,169.2
Shareholders’ equity
10,599.5
10,293.4
Investment properties
15,153.5
14,833.6
Share capital
575.0
575.0
Buildings under redevelopment
1,398.4
1,722.3
Additional paid-in capital
3,307.6
3,307.6
Operating properties
81.8
81.8
Consolidated reserves
8,487.3
6,305.2
Other property, plant and equipment
9.3
9.6
Consolidated net income
(1,787.2)
89.5
Goodwill
165.8
165.8
Intangible assets
12.8
11.5
Shareholders’ equity attributable to
owners of the parent
10,582.7
10,277.3
Financial receivables on finance
leases
32.8
29.5
Non-controlling interests
16.7
16.1
Financial fixed assets
51.2
38.2
Investments in associates
86.7
79.9
Non-current liabilities
6,051.0
5,585.3
Non-current financial instruments
181.9
196.1
Non-current financial debt
5,784.7
5,310.7
Deferred tax assets
0.9
0.9
Non-current lease obligations
49.6
49.6
Non-current financial instruments
123.9
131.2
Current assets
473.9
790.5
Non-current provisions
92.7
93.9
Properties for sale
184.7
231.0
Trade receivables and related
35.4
55.8
Current liabilities
998.3
2,081.0
Other receivables
82.9
91.3
Current financial debt
599.6
1,429.1
Prepaid expenses
23.6
30.5
Security deposits
86.4
87.3
Current financial instruments
3.6
4.3
Trade payables and related
185.6
170.0
Cash and cash equivalents
143.7
377.5
Current tax and employee-related
liabilities
58.0
108.5
Other current liabilities
68.7
286.1
TOTAL ASSETS
17,648.7
17,959.8
TOTAL LIABILITIES
17,648.7
17,959.8
NET ASSET VALUE
At June 30, 2024
EPRA NRV (Net Reinstatement
Value)
EPRA NTA (Net Tangible Asset
Value)
EPRA NDV (Net Disposal Value)
IFRS equity attributable to
shareholders
10,277.3
10,277.3
10,277.3
Receivable from shareholders
195.8
195.8
195.8
Includes / Excludes
Impact of exercising stock options
-
-
-
Diluted NAV
10,473.1
10,473.1
10,473.1
Includes
Revaluation of investment property
166.1
166.1
166.1
Revaluation of investment property under
construction
-
-
-
Revaluation of other non-current
investments
-
-
-
Revaluation of tenant leases held as
finance leases
0.4
0.4
0.4
Revaluation of trading properties
-
-
-
Diluted NAV at fair value
10,639.6
10,639.6
10,639.6
Excludes
Deferred tax
-
-
x
Fair value of financial instruments
(69.2)
(69.2)
x
Goodwill as a result of deferred tax
-
-
-
Goodwill as per the IFRS balance sheet
x
(165.8)
(165.8)
Intangibles as per the IFRS balance
sheet
x
(11.5)
x
Includes
Fair value of debt (1)
x
x
605.3
Revaluation of intangibles to fair
value
-
x
x
Transfer duties
1,034.4
140.6
x
NAV
11,604.7
10,533.7
11,079.2
Fully diluted number of shares
74,132,098
74,132,098
74,132,098
NAV per share
€156.5
€142.1
€149.5
Unit NAV per share (2)
€164.5
€149.5
€156.9
(1) Fixed-rate debt has been measured at
fair value based on the yield curve at June 30, 2024.
(2) Taking into account the residential
portfolio’s unit values
DEVELOPMENT PIPELINE OVERVIEW
Project
Location
Delivery date
Total space (sq.m)
Total investment (€m)
Already invested (€m)
Still to invest (€m)
Yield on cost (est.)
Pre-let (%)
Paris - 35 Capucines
Paris CBD
Q3-24
6,400
182
100%
Paris - Mondo
Paris CBD
Q3-24
30,100
387
100%
Paris - Icône
Paris CBD
Q1-25
13,500
210
12%
Paris - 27 Canal
Paris
Q2-25
15,300
124
-
Paris - Tour Gamma
Paris
Q1-27
19,200
214
-
Carreau de Neuilly
Western Crescent
Q2-27
36,300
465
-
Total offices
120,800
1,582
1,207
375
5.6%
32%
Paris - Wood'up
Paris
Q3-24
8,000
94
na
Paris - Dareau
Paris
Q3-24
5,500
52
na
Rueil - Arsenal
Rueil
Q3-24
6,000
47
na
Rueil - Doumer
Rueil
Q3-24
5,500
45
na
Bordeaux - Belvédère
Bordeaux
Q1-25
8,000
38
na
Garenne Colombes - Madera
La Garenne Colombes
Q1-25
4,900
42
na
Bordeaux - Brienne
Bordeaux
Q3-25
5,500
26
na
Paris - Glacière
Paris
Q3-25
800
10
na
Paris - Porte Brancion
Paris
Q1-25
2,100
16
na
Paris - Vouillé
Paris
Q1-25
2,400
24
na
Paris - Lourmel
Paris
Q2-25
1,600
17
na
Total residential
50,300
411
350
61
3.8%
Total committed pipeline
171,100
1,993
1,556
437
5.2%
Controlled and certain: Offices
46,900
540
317
223
6.0%
Controlled and certain:
Residential
4,200
31
0
31
4.5%
Total controlled and certain
51,100
571
317
254
5.9%
Total committed + controlled
222,200
2,564
1,873
691
5.4%
Total controlled and likely
48,500
141
57
84
5.7%
TOTAL PIPELINE
270,700
2,705
1,930
775
5.4%
1.2 EPRA reporting at June 30, 2024
Gecina applies the EPRA(1) best practices recommendations
regarding the indicators listed hereafter. Gecina has been a member
of EPRA, the European Public Real Estate Association, since its
creation in 1999. The EPRA best practice recommendations include,
in particular, key performance indicators to make the financial
statements of real estate companies listed in Europe more
transparent and more comparable across Europe.
Gecina reports on all the EPRA indicators defined by the “Best
Practices Recommendations” available on the EPRA website.
Moreover, EPRA defined recommendations related to corporate
social responsibility (CSR), called “Sustainable Best Practices
Recommendations.”
(1) European Public Real Estate Association.
06/30/2024
06/30/2023
See Note
EPRA Earnings (in million euros)
229.7
211.3
2.2.1.
EPRA Earnings per share
€3.11
€2.86
2.2.1.
EPRA Net Tangible Asset Value (in million
euros)
10,533.7
10,638.1(1)
2.2.2.
EPRA Net Tangible Asset Value per share
(in euros)
142.1
143.6(1)
2.2.2.
EPRA Net Initial Yield
4.0%
3.9%(1)
2.2.3.
EPRA “Topped-up” Net Initial Yield
4.4%
4.2%(1)
2.2.3.
EPRA Vacancy Rate
6.1%
7.0%
2.2.4.
EPRA Cost Ratio (including direct vacancy
costs)
20.9%
22.3%
2.2.5.
EPRA Cost Ratio (excluding direct vacancy
costs)
18.5%
20.2%
2.2.5.
EPRA Property related Capex (in million
euros)
211
160
2.2.6.
EPRA Loan-to-Value (including duties)
35.7%
34.5%
2.2.7.
EPRA Loan-to-Value (excluding duties)
37.8%
36.6%
2.2.7.
(1) At December 31, 2023.
1.2.1 EPRA recurrent net income
The table below indicates the transition between the recurrent
net income disclosed by Gecina and the EPRA recurrent net
income:
In thousand euros
06/30/2024
06/30/2023
Recurrent net income (Group
share)(1)
235,080
216,532
Depreciation and amortization, net
impairments and provisions
(5,351)
(5,199)
EPRA recurrent net income (A)
229,730
211,333
Weighted average number of shares before
dilution (B)
73,914,585
73,832,958
EPRA recurrent net income per share
(A/B)
€3.11
€2.86
(1) EBITDA excluding IFRIC 21 after
deducting net financial expenses, recurring tax, minority
interests, including income from associates and restated for
certain non-recurring items.
1.2.2 Net Asset Value
The calculation for the net asset value is explained in section
“Net asset value.”
In euros/share
06/30/2024
12/31/2023
EPRA NAV NRV
€156.5
€158.1
EPRA NAV NTA
€142.1
€143.6
EPRA NAV NDV
€149.5
€150.1
1.2.3 EPRA net initial yield and EPRA “Topped-up” net initial
yield
The table below indicates the transition between the yield
disclosed by Gecina and the yields defined by EPRA:
In %
06/30/2024
12/31/2023
Gecina net capitalization
rate(1)
4.9%
4.8%
Impact of estimated costs and duties
-0.3%
–0.3%
Impact of changes in scope
0.1%
0.0%
Impact of rent adjustments
-0.7%
–0.6%
EPRA net initial yield(2)
4.0%
3.9%
Exclusion of lease incentives
0.4%
0.3%
EPRA “Topped-up” net initial
yield(3)
4.4%
4.2%
(1) Like-for-like June 2024.
(2) The EPRA net initial yield is defined
as the annualized contractual rent, net of property operating
expenses, excluding lease incentives, divided by the portfolio
value including duties.
(3) The EPRA “Topped-up” net initial yield
is defined as the annualized contractual rent, net of property
operating expenses, excluding lease incentives, divided by the
portfolio value including duties.
EPRA net initial yield and EPRA
“Topped-up” net initial yield
(in million euros)
Offices
Residential
Total H1 2024
Investment properties
13,551
3,540
17,091 (3)
Adjustment of assets under development and
land reserves
-2,108
-324
-2,432
Value of the property portfolio in
operation excluding duties
11,443
3,216
14,659
Transfer duties
734
213
947
Value of the property portfolio in
operation including duties
B
12,177
3,429
15,606
Gross annualized rents
533
128
661
Non recoverable property charges
16
23
39
Net annualized rents
A
517
105
622
Rents at the expiration of the lease
incentives or other rent discounts
57
0
57
“Topped-up” net annualized
rents
C
575
105
680
EPRA net initial yield(1)
A/B
4.2%
3.1%
4.0%
EPRA “Topped-up” net initial
yield(2)
C/B
4.7%
3.1%
4.4%
(1) The EPRA net initial yield is defined
as the annualized contractual rent, net of property operating
expenses, excluding lease incentives, divided by the portfolio
value including duties.
(2) The EPRA “Topped-up” net initial yield
is defined as the annualized contractual rent, net of property
operating expenses, excluding lease incentives, divided by the
portfolio value including duties.
(3) Except finance leases and hotel.
1.2.4 EPRA vacancy rate
In %
06/30/2024
06/30/2023
Offices
6.0%
6.9%
Residential
6.5%
7.2%
5.8%
5.8%
9.4%
13.2%
EPRA vacancy rate
6.1%
7.0%
EPRA vacancy rate corresponds to the vacancy rate “spot” at the
end of the period, excepted for YouFirst Campus, for which an
average financial occupancy rate is used to neutralize the business
seasonality. Spot EPRA vacancy rate at the end of the period for
YouFirst Campus was 23.8% at June 30, 2024 and 32.0% at June 30,
2023.
EPRA vacancy rate is calculated as the ratio between the
estimated market rental value of vacant spaces and potential rents
for the operating property portfolio.
EPRA vacancy rate does not include leases signed with a future
effect date
The financial occupancy rate reported in other parts of this
document corresponds to the average financial occupancy rate of the
operating property portfolio.
Market rental value of vacant
spaces (in million euros)
Potential rents (in million
euros)
EPRA vacancy rate at the end of
June 2024 (in %)
Offices
36
593
6.0%
Residential
9
135
6.5%
6
107
5.8%
3
28
9.4%
EPRA vacancy rate
44
728
6.1%
1.2.5 EPRA cost ratios
In thousand euros/In %
06/30/2024
06/30/2023
Property expenses(1)(2)
(129,521)
(135,153)
Overheads(1)(2)
(42,521)
(44,888)
Recharges to tenants
99,561
103,527
Rental expenses charged to tenants in
gross rent
0
0
Other income/income covering overheads
549
1,940
Share in costs of associates
(85)
(147)
Ground rent
0
0
EPRA costs (including vacancy costs)
(A)
(72,016)
(74,720)
Vacancy costs
8,255
7,086
EPRA costs (excluding vacancy costs)
(B)
(63,762)
(67,634)
Gross rental income less ground rent
343,106
332,932
Rental expenses charged to tenants in
gross rent
0
0
Share in rental income from associates
1,675
1,469
Gross rental income (C)
344,781
334,401
EPRA cost ratio (including vacancy
costs) (A/C)
20.9%
22.3%
EPRA cost ratio (excluding vacancy
costs) (B/C)
18.5%
20.2%
(1) Marketing costs, eviction allowances,
and time spent by the operational teams directly attributable to
marketing, development or disposals are capitalized or reclassified
as gains or losses on disposals of €5.7 million in 2024 and €7.2
million in 2023.
(2) Without IFRIC 21.
1.2.6 Capital expenditure
06/30/2024
06/30/2023
In million euros
Group
Joint ventures
Total
Group
Joint ventures
Total
Acquisitions
0
n.a.
0
0
n.a.
0
Pipeline
159
n.a.
159
115
n.a.
115
of which capitalized interest
8
n.a.
8
4
n.a.
4
Maintenance Capex(1)
52
n.a.
52
45
n.a.
45
Incremental lettable space
0
n.a.
0
0
n.a.
0
No incremental lettable space
47
n.a.
47
41
n.a.
41
Tenant incentives
5
n.a.
5
3
n.a.
3
Other expenses
0
n.a.
0
0
n.a.
0
Capitalized interest
0
n.a.
0
0
n.a.
0
Total Capex
211
n.a.
211
160
n.a.
160
Conversion from accrual to cash basis
–13
n.a.
–13
7
n.a.
7
Total Capex on cash basis
197
n.a.
197
166
n.a.
166
(1) Capex corresponding to: (i) renovation
work on apartments or private areas to capture rental reversion,
(ii) work on communal areas, (iii) lessees’ work.
1.2.7 EPRA Loan-to-Value
In million euros
Group
Share of joint ventures
Share of material associates
Non-controlling Interests
Total
Include
Borrowings from financial institutions
165
13
-
178
Commercial papers
911
-
-
911
Hybrids
-
-
-
-
Bond loans
5,645
-
-
5,645
Foreign currency derivatives
-
-
-
-
Net payables
135
1
(2)
134
Owner-occupied property (debt)
-
-
-
-
Current accounts (equity
characteristic)
15
-
(15)
0
Exclude
-
-
Cash and cash equivalents
(378)
(3)
2
(378)
Net debt (A)
6,494
12
(15)
6,490
Include
Owner-occupied property
235
-
-
235
Investment properties at fair value
14,862
89
(30)
14,921
Properties held for sale
231
-
-
231
Properties under development
1,722
-
-
1,722
Intangibles
12
-
-
12
Financial assets
34
0
(0)
35
Total property value (excluding RETTs)
(B)
17,096
90
(31)
17,155
Transfer duties
1,034
7
(2)
1,039
Total property value (including RETTs)
(C)
18,131
96
(33)
18,194
EPRA LTV (excluding RETTs)
(A/B)
38.0%
37.8%
EPRA LTV (including RETTs)
(A/C)
35.8%
35.7%
1.3 Additional information on rental income
1.3.1 Rental situation
Gecina’s tenants come from a wide range of sectors of activity,
reflecting various macro-economic factors.
Breakdown of tenants by sector (offices – based on annualized
headline rents)
Group
Industry
37%
Consulting/services
20%
Technology
11%
Public sector
8%
Retail
7%
Media – television
6%
Finance
5%
Hospitality
5%
Total
100%
Weighting of the top 20 tenants (% of annualized total headline
rents)
Breakdown for office only (not significant for the Residential
portfolio):
Tenant
Group
Engie
7%
Boston Consulting Group
3%
Lagardère
3%
WeWork
3%
Solocal Group
2%
Yves Saint Laurent
2%
EDF
2%
Eight Advisory
1%
Ipsen
1%
Renault
1%
LVMH
1%
Lacoste
1%
Arkema
1%
Edenred
1%
Salesforce
1%
Jacquemus
1%
Orange
1%
CGI France
1%
MSD
1%
Sanofi
1%
Top 10
25%
Top 20
35%
1.3.2 Annualized rental income
Annualized rental income increased by +€9 million compared with
December 31, 2023, primarily reflecting higher like-for-like rents
(+€8 million) and the delivery of buildings in the first half of
the year (+€5 million), offset by disposals (–€1 million) and the
release of assets for redevelopment (–€3 million).
Note that this annualized rental income includes €22 million
from assets intended to be vacated for redevelopment.
In addition, the annualized rental income figures below do not
yet include the rental income that will be generated by committed
or controlled projects, which may represent nearly €137 million of
potential headline rents, including almost €35 million pertaining
to assets that are yet to be committed.
In million euros
06/30/2024
12/31/2023
Offices
546
534
Residential
129
132
104
106
26
26
Total
675
666
1.3.3 Like-for-like rent change factors for the first half of
2024 vs. the first half of 2023
Group
Like-for-like change
Indexation
Reversion
Vacancy & other
+6.3%
+5.4%
+1.2%
-0,3%
Offices
Like-for-like change
Indexation
Reversion
Vacancy & other
+6.5%
+6.0%
+1.1%
-0,5%
Residential
Like-for-like change
Indexation
Reversion
Vacancy & other
+5.4%
+2.7%
+1.9%
+0.7%
1.3.4 Volume of rental income by three-year break and end of
leases
Commercial lease schedule
(in million euros)
2024
2025
2026
2027
2028
2029
2030
>2030
Total
Break-up options
38
95
76
137
43
43
31
130
594
End of leases
38
47
41
98
40
49
70
211
594
1.4 Financial resources
The first half of 2024 was marked by an initial 25-bp cut in key
interest rates following 10 successive increases since July 2022,
bringing the deposit rate down to 3.75%, the refinancing rate to
4.25% and the marginal rate to 4.50%. As this reduction was broadly
anticipated by the market, long-term rates had already started to
fall at the end of 2023, with rates stable on average in the first
half of 2024.
In what remained an uncertain and volatile environment during
the first half of the year, Gecina was able to rely on its
strengths – a robust and flexible balance sheet, low debt,
considerable cash, excellent access to different sources of
financing, and a strong credit rating – to continue with the early
refinancing of its undrawn credit lines, taking out €1.0 billion of
new responsible bank loans with an average maturity of nearly seven
years.
At June 30, 2024, Gecina therefore had immediate liquidity of
€5.0 billion, or €4.1 billion excluding NEU CP, which is
considerably higher than the long-term target of a minimum of €2.0
billion. This excess liquidity notably covers all bond maturities
until 2028 (and in particular the 2025, 2027 and 2028
maturities).
This proactive and dynamic management of the Group’s financial
structure further increases its strength, resilience and visibility
for the coming years. It also ensures that the Group’s main credit
indicators remain at an excellent level. The maturity of the debt
is 7.1 years, the interest rate risk hedging is close to 100% until
the end of 2026 and 84% on average until the end of 2029, and the
average maturity of this hedging is 5.8 years. The loan-to-Value
(LTV) ratio (including duties) was 35.0%, and the interest coverage
ratio (ICR) stood at 6.7x. Gecina therefore has a significant
margin with respect to all of its banking covenants. The average
cost of the drawn debt was stable compared with 2023 at 1.1%.
1.4.1 Debt structure at June 30, 2024
Net financial debt amounted to €6,359 million at the end of June
2024.
The main characteristics of the debt are:
06/30/2024
12/31/2023
Gross financial debt (in million
euros)(1)
6,736
6,380
Net financial debt (in million
euros)(2)
6,359
6,236
Gross nominal debt (in million euros)
6,835
6,445
Unused credit lines (in million euros)
4,615
4,535
Average maturity of debt (years, restated
from available credit lines)
7.1
7.4
LTV (including RETTs)
35.0%
34.4%
LTV (excluding RETTs)
37.1%
36.5%
ICR
6.7x
5.9x
Secured debt/Properties
–
–
(1) Gross financial debt (excluding fair
value related to Eurosic’s debt) = Gross nominal debt + impact of
the recognition of bonds at amortized cost + accrued interest not
yet due + miscellaneous.
(2) Excluding fair value related to
Eurosic’s debt, €6,362 million including these items.
Debt by type
Breakdown of gross nominal debt (€6.8 billion)
Graphic omitted
Breakdown of authorized financing (€10.5 billion, including
€4.6 billion of unused credit lines at June 30, 2024)
Graphic omitted
Gecina uses diversified sources of financing. Long-term bonds
represent 84% of the Group’s nominal debt and 55% of the Group’s
authorized financing.
At June 30, 2024, Gecina’s gross nominal debt was €6,835 million
and comprised:
- €5,750 million in long-term Green Bonds issued under the Euro
Medium-Term Notes (EMTN) program;
- €165 million in responsible bank loans;
- €920 million in NEU CP covered by confirmed medium and
long-term credit lines.
1.4.2 Liquidity
The main objectives of the liquidity are to provide sufficient
flexibility to adapt the volume of debt to the pace of acquisitions
and disposals, cover the refinancing of short-term maturities,
allow refinancing under optimal conditions, meet the criteria of
the credit rating agencies, and finance the Group’s investment
projects.
Financing and refinancing transactions carried out since the
start of 2024 amounted to €1.0 billion and related in particular
to:
- the setting up of eight responsible credit lines for a
cumulative amount of €993 million (including €328 million in July
2024) with an average maturity of nearly seven years, through the
early renewal of lines maturing in 2026. These new financing
programs all have a margin dependent on the achievement of CSR
objectives, and allowed the Group to renew a large part of the 2026
maturities early with longer maturities, mainly in 2031;
- taking out €20 million in responsible bank loans, with an
average term of six years.
Gecina updated its EMTN program with the AMF in June 2024 and
its Negotiable European Commercial Paper (NEU CP) program with the
Banque de France in May 2024, with caps of €8 billion and €2
billion, respectively.
In the first half of 2024, Gecina continued to use short-term
resources via the issue of NEU CPs. At June 30, 2024, the Group’s
short-term resources totaled €920 million.
1.4.3 Debt maturity breakdown
At June 30, 2024, the average maturity of Gecina’s debt, after
allocation of unused credit lines and cash, was 7.1 years.
The following chart shows the debt maturity breakdown after
allocation of unused credit lines at June 30, 2024, pro forma of
the loans taken out in July 2024:
Debt maturity breakdown after taking into account undrawn
credit lines (in billion euros)
Graphic omitted
All of the credit maturities up to 2028, including the 2025,
2027 and 2028 bond maturities in particular, were covered by unused
credit lines as at June 30, 2024 (pro forma of the loans taken out
in July 2024) and by free cash.
1.4.4 Average cost of debt
The average cost of the drawn debt amounted to 1.1% at the end
of June 2024 (and 1.5% for total debt), stable compared with 2023.
This stability in the average cost of debt, despite the very marked
increase in interest rates on the financial markets, is due to the
Group’s financial structure and in particular its hedging
policy.
Average cost of drawn debt
Graphic omitted
Capitalized interest on development projects amounted to €8.6
million at the end of June 2024 (compared with €4.0 million in June
2023).
1.4.5 Credit rating
The Gecina group is rated by both Standard & Poor’s and
Moody’s, which respectively maintained the following ratings in
2023 and 2024:
- A– (stable outlook) for Standard & Poor’s;
- A3 (stable outlook) for Moody’s.
1.4.6 Management of interest rate risk hedge
Gecina’s interest rate risk management policy is aimed at
hedging the Company’s exposure to interest rate risk. To do so,
Gecina uses fixed-rate debt and derivative products (mainly caps
and swaps) in order to limit the impact of interest rate changes on
the Group’s results and to keep the cost of debt under control.
In the first half of 2024, Gecina continued to adjust and
optimize its hedging policy with the aim of:
- maintaining an optimal hedging ratio;
- maintaining a high average maturity of hedges (fixed-rate debt
and derivative instruments), and;
- securing favorable long-term interest rates.
At June 30, 2024, the average duration of the portfolio of firm
hedges stood at 5.8 years.
Based on the current level of debt, the hedging ratio will
average close to 100% until the end of 2026 and 84% until
end-2029.
The chart below shows the profile of the hedge portfolio:
Graphic omitted
Gecina’s interest rate hedging policy is implemented mainly at
Group level and on the long-term; it is not specifically assigned
to certain loans.
Measuring interest rate risk
Gecina’s anticipated nominal net debt in 2024 is fully hedged
against interest rate increase (depending on observed Euribor rate
levels, due to caps).
Based on the existing hedge portfolio, contractual conditions as
at June 30, 2024, and anticipated debt in the second half of 2024,
a 50 basis point increase or decrease in the interest rate,
compared to the forward rate curve of June 30, 2024, would have no
material impact on financial expenses in 2024.
1.4.7 Financial structure and banking covenants
Gecina’s financial position as at June 30, 2024, meets all
requirements that could affect the compensation conditions or early
repayment clauses provided for in the various loan agreements.
The table below shows the status of the main financial ratios
outlined in the loan agreements:
Benchmark standard
Balance at 06/30/2024
LTV – Net financial debt/revalued block
value of property holding (excluding duties)
Maximum 60%
37.1%
ICR – EBITDA/net financial expenses
Minimum 2.0x
6.7x
Outstanding secured debt/revalued block
value of property holding (excluding duties)
Maximum 25%
–
Revalued block value of property holding
(excluding duties), (in billion euros)
Minimum €6 bn
€17.1 bn
The financial ratios shown above are the same as those used in
the covenants included in all the Group’s loan agreements. LTV
excluding duties was 37.1% at June 30, 2024, (36.5% at the end of
2023). The ICR stood at 6.7x (5.9x in 2023).
1.4.8 Guarantees given
At the end of June 2024, the Group did not hold any debt
guaranteed by real sureties (i.e. mortgages, lender’s liens,
unregistered mortgages).
Thus, at June 30, 2024, there was no financing guaranteed by
mortgage-backed assets for an authorized maximum limit of 25% of
the total block value of the property portfolio in the various loan
agreements.
L1ve, 75 avenue de la Grande Armée, Paris 16
1 Dedicated on-site team to reconfigure energy-consuming
equipment to optimize its consumption based on each building’s
specific features and occupancy 2 Nearly €270m was also paid out
for the pipeline in 2023
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240723798950/en/
GECINA
Financial communications
Samuel Henry-Diesbach Tel: +33 (0)1 40 40 52 22
samuelhenry-diesbach@gecina.fr
Attalia Nzouzi Tel: +33 (0)1 40 40 18 44
attalianzouzi@gecina.fr
Press relations
Glenn Domingues Tel: +33 (0)1 40 40 63 86
glenndomingues@gecina.fr
Armelle Miclo Tel: +33 (0)1 40 40 51 98
armellemiclo@gecina.fr
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