Earnings at December 31, 2022

Very strong commercial activity in 2022 across all asset classes

• Several rental transactions signed in the second half of the year around €1,000/sq.m/year
• 100% of the office projects delivered in 2022 or to be delivered in 2023 let or pre-let

Gross rental income up +4.4% like-for-like in 2022 (+3.0% for the first half of the year)

• Average occupancy rate up +190bp year-on-year to 93.1% (+80bp over six months)
• Indexation that is gradually firming up, contributing +2.1% in 2022, while the latest ILAT index published at end-December was 5.9%
• Strong rental reversion captured on offices, with +24% on the buildings relet (+13% at end-June 2022) and over +10% for residential (+8% during the first half of the year)
• Pipeline’s positive net contribution, which accelerated in the second half of the year
• Overheads under control and down slightly in a context of rising inflation

Proactive management of debt despite an uncertain context

• Average cost of debt stable in 2022 at 1.2% overall
• €750m of bond debt raised since the start of 2022, with an average cost of 1.36% and an average maturity of 11 years: bond issue in January 2022, swaps set up in August, and bond lines tapped in December 2022 and January 2023
• Liquidity surplus of around €1bn, making it possible to cover current bond maturities through to 2027
• High hedging rate over the short, medium and long term (over 90% in 2023-2025, and nearly 80% on average through to end-2028, with an average hedging maturity of 7 years)

Solid financial aggregates in 2022

• Recurrent net income per share up +4.5%
• Portfolio value: -0.6% over 12 months (including value creation from the committed pipeline), with a positive rent effect in central sectors offsetting the increase in capitalization rates
• NTA of €172.2 per share (-2.3% year-on-year)
• NDV of €183.8 per share, up +6.3% thanks to the valuation of hedging instruments and fixed-rate debt
• LTV including duties of 33.7%, in line with the best market standards
• 2022 dividend: €5.30 per share, paid in full in cash

2023: positive trends to continue, with +4.3% to +6.1% recurrent net income per share growth expected

Recurrent net income (Group share) is expected to reach €5.80 to €5.90 per share in 2023, up +4.3% to +6.1%.

Beñat Ortega, Chief Executive Officer: “In 2023, Gecina will benefit from the embedded increase in the occupancy rate, the stronger impact of indexation, the positive reversion captured and the development pipeline’s rental contribution. Alongside this, the Group’s balance sheet structure offers good visibility over changes in financial expenses, further strengthening our confidence for the year and supporting our guidance for 2023”.

Read the full press release here