Paris, France, October 19, 2017

Business at September 30, 2017

2017 guidance raised following Eurosic’s integration

At least +6% recurrent net income growth expected excluding healthcare (vs. -5% to -6% initially)

The third quarter of 2017 was marked by Eurosic’s consolidation in Gecina’s accounts from August 29, 2017, with nearly €23.0M of gross revenues recorded from Eurosic. Restated for the healthcare portfolio’s sale (finalized on July 1, 2016), the Group’s gross revenues are up +1.1%. The first effects of this consolidation, the organic performance achieved and the impact of the buildings delivered in 2017 are already offsetting the loss of rent following the transfer of five buildings with strong value creation potential within the project pipeline and the sales completed in 2016.

Acceleration of organic rental income growth and lettings in a buoyant market

  • Market still buoyant, particularly in Gecina’s preferred sectors
  • Rental income for offices up +2.3% like-for-like (+2.1% at end-June and +1.2% at end-March)
  • 197,000 sq.m let, pre-let, relet or renegotiated since the start of the year[1]
  • 40,000 sq.m delivered since the start of the year for Gecina’s scope, including two student residences in La Défense and Marseille and two office buildings in Paris and Lyon
  • 10,000 sq.m delivered for Eurosic’s scope, primarily in Paris’ central business district (CBD)

Largely risk-free project pipeline, driving growth from 2018

  • Strong progress with the pipeline letting rate since the start of the year, up from 22% at end-2016 to nearly 50% at end-September 2017 (for the same scope)
  • Combined committed pipeline representing nearly €2.5bn on a Group share basis at end-September, with an expected yield on delivery of around 5.6% and 93% located in Paris City or the Western Crescent’s most central sectors (La Défense, Neuilly, Levallois and Issy-les-Moulineaux)
  • 17 projects expected to be delivered by end-2018, including 15 office programs representing over 260,000 sq.m and potential annualized rental income of over €100M (Group share)
  • Total combined pipeline of around €4.8bn, primarily in Paris City, with an expected yield of nearly 6%

Continued optimization of liabilities and increase in the float

  • €2.2bn of bonds placed since the start of the year, with an average maturity of 10 years and an average coupon of 1.3%
  • Successful redemption of outstanding bond issues due to mature in 2019, 2020 and 2021 for €274M, with an average coupon of 4.0%
  • Successful capital increase excluding subscription rights for €1bn in August, making it possible to finalize the financing for Eurosic’s acquisition and increase the float by almost +10%

2017 targets raised: +6% compared with 2016 recurrent net income restated for healthcare (vs -5 to -6% expected)

Based on the good level of the Group’s key markets, the optimization of its liabilities and the accretive effects linked to Eurosic’s integration, Gecina is able to raise its targets for 2017 and is now forecasting at least +6% recurrent net income growth (+4.5% per share[2]) restated for the impact of the healthcare sale, representing a minimum of €340M (€5.20 per share).

Please find attached the full press release.

[1] Over the first nine months of 2017, and 143,000 sq.m including transactions on the Eurosic portfolio exclusively since the end of August 2017

[2] The average number of shares retained for calculating this target factors in the change in the number of shares resulting in particular from the capital increase carried out in August, as well as the exchange offer for Eurosic, which closed on October 11, 2017. This growth rate also takes into account the adjustment factor (0.97391) linked to the capital increase excluding subscription rights.



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