Business at September 30, 2018

Paris, France, October 23, 2018

€1.7bn of commercial sales secured since Eurosic’s acquisition and 150,000 sq.m let in 2018

Gecina confirms its target for recurrent net income per share growth of over +8% for 2018

 

Improvement in like-for-like rental income growth

  • Gross rental income up +30.7% on a current basis
  • Like-for-like growth of +2.2%, significantly outperforming the indexation effect and higher than the first half of the year

Strong lettings performance in a buoyant market for central sectors

  • Favorable commercial pressures in central sectors, where Gecina’s pipeline and portfolio are concentrated
  • Almost 150,000 sq.m let, pre-let, relet or renegotiated since the start of the year, representing close to 10% of the Group’s total office space and €56m of full-year rental income (with almost half corresponding to buildings under development)

Market still buoyant in centrality sectors

  • Historically low vacancy rate in Paris’ CBD (1.5%), where available supply contracted -44% faced with sustained demand, driving growth in market rents
  • Situation that is improving more gradually outside of Paris City

Eight real estate projects delivered since the start of the year and renewal of the pipeline, with several buildings about to be transferred into it

  • Gecina has delivered eight buildings since the start of the year, following ambitious redevelopment operations in terms of both environmental aspects and workplace wellness (four assets in Paris, three in the Western Crescent and one in Lyon Part-Dieu)
  • Pipeline to be renewed soon with buildings that are being freed up and will benefit from redevelopments or extensive refurbishments, to continue moving forward with its portfolio’s gradual transformation, incorporating innovation to serve societal and environmental changes

Nearly €1.4bn of sales completed in 2018 or under preliminary agreements at end-September

  • 1.3bn of commercial sales completed or secured since the start of the year, achieving a premium of over +2% versus the latest appraisal values, with €1.7bn since Eurosic’s acquisition
  • Almost €90m of residential sales, primarily on a unit basis, including €68m finalized with a +23% premium versus their appraisal values

Gecina confirms its targets for 2018

  • 2018 will reflect Eurosic’s integration, the deliveries of buildings, primarily over the second half of the year, and the first effects of the high volume of sales already secured since Eurosic’s acquisition
  • Gecina is confident that it will be able to achieve its target for over +8% recurrent net income per share growth in 2018

Read the full press release here

Experts

Contacts

Linked topics

Related links