2019 full-year earnings

Consolidating our positioning

A particularly dynamic year, with over 200,000 sq.m let or pre-let (165,000 sq.m in 2019 with headline reversion of +16% in Paris CBD and 5-6-7, and 44,000 sq.m since the start of 2020)

• First leases signed in the CBD at €900/sq.m at the start of 2020
• Reversion potential of around +10% on average for the portfolio, which is expected to deliver like-for-like rental growth on offices of around +3% in 2020
• 15 projects delivered in two years, generating nearly €780m of net value creation since their launch
• Pipeline topped up with six new operations launched, increasing it to €3.7bn, with €2.9bn committed or “to be committed”, delivering a yield of 5.6%
• Ongoing portfolio rationalization: €1.2bn of sales completed or covered by preliminary agreements (+12% premium)

Transforming our model

• Subsidiarization of the residential business: building on the robust development achieved since 2017 by positioning the business to invest in the residential sector in the Paris Region or diversify in certain leading regional cities, in order to benefit from economies of scale, while maintaining the target capital allocation (80% offices, 20% residential)
• Gecina is further strengthening its strategic total return and centrality approach with the deployment of a service-driven approach focused on its clients. The Group is moving forward with its transformation around YouFirst and digitalizing: deployment of YouFirst launched with YouFirst Collaborative, electronic signatures introduced for leases, new CRM rolled out for all YouFirst clients, partnership set up with GarantMe to facilitate access to housing for students, investment in a Fifth Wall fund focused on urban innovation

Performing sustainably

• Securing long-term operational and financial performance, with sustainable commitments positioning the environment, people and life at the heart of the city as core features of its ambitions for the future
• Environmental commitment built around four pillars (wellbeing, circular economy, biodiversity and low carbon), recognized with very strong sustainability ratings (CDP: A, GRESB: 92/100, MSCI: AAA, Sustainalytics: 88/100)
• Commitment for people to ensure gender diversity and pay equality (92/100 on the gender pay equality index), guaranteeing long-term performance, drawing on its company foundation
• Commitment and tangible actions for an inclusive and desirable city
• In 2020, Gecina formalizes the review into its “Purpose” with “UtilesEnsemble”

Solid results for 2019…

• EPRA NAV of €175.8 per share, up +9% year-on-year, generating a total return of 12.2% over 12 months
• Recurrent net income per share up +6% (excluding the impact of non-strategic assets sold in 2018 from the Eurosic scope), exceeding the Group’s initial expectations, with €5.95 per share (vs. €5.80 to €5.85 expected)
• LTV including duties of 34.0% (vs. 36.2% at end-2018)

…inspiring confidence for the future

• 2020 will be marked by the impacts of the portfolio’s realignment (€1.2bn of sales completed in 2019 or under preliminary agreements), the topping up of the pipeline with strong value creation potential (six operations launched), and the ramping up of project deliveries supported by a favorable market in Gecina’s preferred sectors
• Recurrent net income (Group share) per share expected to be up +2.0% in 2020 restated for the impact of sales completed in 2019, representing a limited contraction of -2.5% without being restated
• Additional rental potential of around €130m to €140m from the pipeline by 2025