Paris, France, February 19, 2019

2018 Results

Recurrent net income per share up +9% for 2018.

EPRA NAV up +5.4% to €161.6 per share.

dividend up +3.8% to €5.5.


  • Solid operational and financial performance in 2018
    • Recurrent net income up +20% to €437.2m and +9% per share to €5.93
    • Rental income up +2.5% like-for-like (+2.7% for offices, +2.0% for traditional residential)
    • EPRA NAV up +5.4% to €161.6 per share (€168.0 based on unit residential values)…
    • …with nearly 1/3 of the increase, i.e. +€2.7 per share, coming from the pipeline
    • €1.5bn of sales completed or secured in 2018 (€2.0bn since Eurosic’s acquisition) with a premium of +4% versus the latest free appraisal values (+6% since Eurosic’s acquisition)
    • LTV at end-2018 of 38.4% (36.2% including duties), down by nearly -6pts since Eurosic’s acquisition
    • Improved financial ratings (S&P: A-; Moody’s: A3), highlighting the strengthening of the financial structure
    • Launch of a share buyback program for a maximum of €150m
  • Historic year for lettings, deliveries and sales
    • 247,000 sq.m let or relet, representing €95m of IFRS annualized rental income…
    • …with nearly 100,000 sq.m on assets under development or delivered in 2018
    • Historically high volume of sales making it possible to accelerate the portfolio’s realignment around the centrality sectors, with 61% of the office portfolio now in Paris City
    • 174,000 sq.m of projects delivered in 2018 (8 office projects, 1 residential project), with 89,000 sq.m of deliveries expected for 2019
    • Committed or “certain” pipeline of €3.2bn, with €0.2bn for residential, topped up for the coming years
  • Business model firmly focused on the client with YouFirst
    • Identification of key success factors for tomorrow’s office, built around users’ needs: Centrality, Flexibility, Connectivity, Wellbeing, Responsibility and Productivity
    • Launch of the YouFirst program with new ambitions, particularly for YouFirst Collaborative: gradual rollout of a network of flexible spaces on the Group’s portfolio with shared services based on a cluster approach
  • Outlook still strong
    • Restated for the impact of sales of non-strategic assets from Eurosic’s scope, recurrent net income per share for 2019 is expected to grow by around +2% despite the significant volume of assets currently being redeveloped or to be launched for redevelopment shortly
    • Growth and value creation potential further strengthened with €3.2bn of projects underway or to be launched shortly
    • Market continuing to show positive trends for the Group’s preferred sectors

2018 highlights and key figures

YouFirst: Gecina’s response to users’ future needs

  • All the commercial offers grouped together under the parent brand YouFirst and its versions: YouFirst bureau, YouFirst collaborative, YouFirst residence and YouFirst campus
  • Two pillars for YouFirst: a human relationship and a high level of services
  • Community of 100,000 clients / end users: 80,000 in commercial living spaces and 20,000 in residential living spaces

Recurrent net income exceeds guidance, driven by Eurosic’s integration, operational performances and the reduction in the cost of debt

  • Recurrent net income up +9% per share to €5.93 (i.e. +20.3% to €437.2m)
  • Rental income for offices up +2.7% like-for-like
  • Reduction in the average cost of debt by -30bp to 1.4% (including cost of undrawn credit lines) and average maturity up to 7.3 years (vs. 6.9 years at end-2017)

EPRA NAV up +5.4% to €161.6, driven by the pipeline’s dynamic development and favorable market trends in Gecina’s preferred sectors

Performance enabling Gecina to propose a cash dividend of €5.50 for 2018

Project portfolio: deliveries accelerated and pipeline topped up

  • Nine operations delivered in 2018 (89% let[1]), with a further nine to follow in 2019 and 2020 (already 60% pre-let)
  • €3.2bn of operations underway or to be launched shortly (with €1.7bn already underway and €1.5bn to potentially follow over the coming half-year periods)
  • €0.9bn of potential operations over the longer term under Gecina’s control, taking the Group’s total pipeline up to €4.0bn, with an average yield of around 6.0%.

€2bn of sales since Eurosic’s acquisition, with €1.5bn in 2018

  • Acceleration of the portfolio’s rotation, with €1.5bn of sales completed in 2018 or under preliminary agreements
  • and €2.0bn since Eurosic’s acquisition at the end of December 2018, with +5.8% premiums overall versus the latest appraisal values
  • Resulting reduction in the LTV to 38.4%, compared with 44% following Eurosic’s acquisition…
  • …and centrality further strengthened for Gecina’s office portfolio (61% in Paris City, 91% including the Western Crescent and La Défense)


Markets continuing to show positive trends

    • Market reflecting the impact of the shortage of supply in areas of scarcity and centrality
    • Take-up of 2.5 million sq.m for the Paris Region in 2018, with 42% at the heart of Paris City
    • Immediate supply down -13%, with 13% exclusively for Paris City
    • Vacancy rate down to 5.1% (vs. 5.9% at end-2017), with the Paris CBD at an all-time low of 1.7%
    • Rents up at the heart of Paris

Operational model further strengthened, driving performance for the coming years

    • The project deliveries completed in 2018 and scheduled for 2019 are expected to offset to a great extent the impacts of the sales carried out in 2018, the expected loss of rent on assets transferred or to be transferred to the pipeline, and the reduction in capitalized financial expenses. Excluding the impacts of the sales carried out on Eurosic’s previous scope following its acquisition, recurrent net income (Group share) per share is expected to increase by around +2% in 2019 (excluding potential impacts of acquisitions or sales not currently committed to), representing around €5.70 to €5.75 per share.


  1. ^ [1] On office projects

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