Earnings at december 31, 2020

Resilient model withstanding the health shock

Gecina’s markets and operational resilience

• Close to 99% of rent collected in 2020, normalized collection for the first quarter of 2021
• Rents signed up in 2020: +2% higher than pre-crisis market rents (market rental values)
• Reversion potential still positive (+6%), particularly at the heart of Paris (+20%)
• Lettings down, but significant upturn in commercial expressions of interest since September 2020
• Lease signed in the last few days for 11,600 sq.m of Carré Michelet in La Défense
• Portfolio value stable over the year (-0.1% like-for-like)

Strategic choices confirmed faced with the uncertainty

Centrality continuing to outperform

• Outperformance in terms of rent and capital growth in the most central areas of scarcity

Healthy and flexible financial structure further optimized

• LTV including duties down -40bp to 33.6%, average debt maturity of 7.1 years
• Average cost of debt down to 1.3% (1.0% for the cost of drawn debt)

Residential strategy continuing to deliver performance, while preparing for the future

• +7.2% reversion achieved on tenant rotations in 2020
• Subsidiarization of the portfolio in H1 and partnership with Nexity to accelerate the portfolio’s development

Polarization of investment markets in Gecina’s strategic areas

• Value growth for central Paris offices (+2.7% over 12 months) and for residential (+6.7% over 12 months)
• Value adjustment for offices in more peripheral sectors (-7.6% outside of Paris City)

Proactive anticipation and transformation strategy

162,000 sq.m of rental transactions with a “bespoke” approach depending on the areas

• Reversion potential captured in Paris City (+25% in the CBD 5,6,7, +12% for the rest of Paris)
• Firm maturity of leases extended outside of Paris and Neuilly (to 5.3 years vs 4.6 years at end-2019)

Client portals / web app, operational CRM, virtual visits, brokers portal, etc. to improve our competitive positioning, help build loyalty among our clients, strengthen commercial performance, differentiate our rental offering and optimize our buildings’ operating expenditure and energy bills

Ongoing portfolio rationalization

• €539m of sales secured and €474m completed with an average premium versus the latest free appraisal values of +4.7%
• Our Office portfolio in central sectors further strengthened (66% in Paris City at end-2020)

Pipeline of 23 projects to be delivered by 2024

• Concentrated in the Paris Region's most central sectors, with 82% in Paris City or Neuilly-sur-Seine
• Expected yield on cost of around 5.3%, supporting future value creation
• €120m to €130m of additional IFRS rental income to come from the pipeline that is already committed or to be committed shortly, as well as work underway to market space still to be let for the 2019 and 2020 deliveries

CSR commitments reflected in concrete results

• For our assets: office CO² emissions reduced by -50% over the last 12 years (i.e. 13.9 kg/sq.m/year), exceeding the 2020 targets
• For our liabilities: 44% responsible bank lines
• Environmental performance criterion incorporated into long-term incentive plans
• Performance recognized with leading sustainability ratings, positioning Gecina as one of the top-performing companies in its industry (GRESB 92/100, MSCI AAA, Sustainalytics 8,8, ISS B- and CDP A list)

Mobilization to support customers and societal commitments

• Mobilization to support tenants, suppliers and people affected by the crisis
• Rent waived in the second and fourth quarters for very small businesses and certain SMEs operating in sectors that were ordered to shut down, rent deferrals and monthly instalments offered for nearly 5% of the annual rental base for offices
• Payment schedules maintained for suppliers
• Vacant student residences made available to healthcare workers and women victims of domestic violence

Stable 2020 dividend proposed at the General Meeting

€5.30 per share for 2020 to be paid in cash

• Dividend yield on the share price of around 4.5%
• Payment of an interim dividend of €2.65 per share at early March and payment of the €2.65 per share balance in July

2021: a transition year

• Following the impact of the sales completed in 2020 and the assets with strong value creation potential freed up for redevelopment, a slowdown in indexation in 2021 and extended letting timeframes, recurrent net income (Group share) per share is expected to contract in 2021 to around €5.3 per share
• Over the longer term, the projects from the “committed” and “to be committed” (controlled and certain) pipeline and the normalization of the lettings rate for the assets delivered in 2019 and 2020 are expected to generate €120m to €130m of additional annualized rental income (IFRS), thanks exclusively to these internal dynamics developed by the Group