Paris, France, July 22, 2021

Earnings at June 30, 2021

Solidly positioned in a recovery context

  • Marked upturn in rental transactions, increase in the pipeline’s pre-letting rate
  • EPRA Net Tangible Assets (NTA) of €172.6 per share, up +1.5% over six months (Net Disposal Value up +2.8%)
  • Ongoing portfolio rationalization, with €453m of sales secured (achieving an average premium of +7.2% vs. the end-2020 values) 
  • LTV of 32.3% (including duties), -130bp over six months
  • Commitment adopted to be carbon neutral by 2030 (CAN0P-2030 plan)
  • 100% of bond debt now based on Green Bonds
  • 2021 guidance affirmed (€5.3 of recurrent net income per share, with €453m of sales)

Upturn in rental transactions in markets focused on centrality and scarcity

  • Over 115,000 sq.m of offices let, relet or renewed: more than double the volume from the first half of 2020
    • +5% reversion achieved (+23% in Paris CBD and 5/6/7) on the leases signed during the first half of 2021
    • Potential positive reversion of around +14% for Paris’ Central Business District, +10% for the rest of Paris and +5% for the entire portfolio
  • Occupancy rate gradually normalizing
    • Normative occupancy rate (including the leases signed but yet to commence) of 94.3% for offices excluding retail units (vs. 92.5% at end-June), reflecting the normalization of Gecina’s preferred markets


Change in the portfolio value showing a positive trend and still polarized

  • Like-for-like growth in values driven by a polarization benefiting central sectors and residential
    • Increase in values for offices in Paris (+1.7% over six months), especially in the CBD (+2.0%), and for residential (+1.2%)
    • Stabilization in more peripheral commercial areas (-0.3% over six months)
  • NTA of €172.6 per share, up +1.5% over six months
  • Sales confirming the robust investment market
    • €453m of sales completed or secured since the start of the year (sale of the Portes d’Arcueil building finalized on July 20, 2021).
    • Average premium versus the end-2020 values of around +7.2%


Favorable outlook for growth and value creation

  • ​​​​​​​Development pipeline, focused primarily on offices in Paris and residential
    • Strong progress with the pre-letting rate for assets delivered before end-2022 over six months, climbing to 53% (vs. 37% at end-2020), and 58% including an operation that is currently being finalized
    • Accretive for recurrent net income, with additional future IFRS rental potential of around €120m to €130m (committed and controlled and certain pipeline) by 2026
    • Accretive for NAV, with a yield on cost of around 5.1% for a pipeline with 81% of assets located in Paris City or Neuilly-sur-Seine, where supply is still structurally constrained
  • Outperformance and resilience for centrality
    • Outperformance in terms of rent and capital in the most central areas of scarcity
    • Centrality further strengthened, with €453m of sales secured during the first half of the year, including €406m of commercial buildings, with 97% located outside of Paris
  • Flexible and agile financial structure
    • LTV including duties down -130bp over six months to 32.3%1, average debt maturity up to 7.6 years (vs. 7.1 years at end-2020)
    • Average cost of drawn debt down to 0.9% (vs. 1.0% in 2020)  
  • Residential strategy performing well and preparing for the future (more than 1,000 potential new housing units)
    • +7% reversion achieved on tenant rotations
    • 540 additional housing units currently being developed, with 320 acquired during the first half of the year for €161m and 90 units that will be created through the transformation of an office building into apartments
    • Discussions underway for further acquisitions covering around 570 housing units


Continued, proactive transformation approach

  • CSR ambitions revealed and commitments affirmed
    • CAN0P-2030: acceleration of the low-carbon roadmap, with the goal for the operational portfolio to be carbon neutral by 2030, some 20 years earlier than the initial target
    • Bond debt now based exclusively on Green Bonds, with a global, dynamic approach
    • Internal carbon tax set up, long-term incentive criterion incorporated based on reducing the portfolio’s energy bill
  • ​​​​​​​​​​​​​​Launch of the first dedicated client websites with a view to optimizing lettings and management costs
    • Launch of the YouFirst Campus client website aimed at optimizing commercial performance on this segment
    • Digitalization to continue moving forward on other activities


Solid prospects for the short and longer term

  •  2021 recurrent net income still expected to be around €5.3 per share despite the €453m of sales completed or secured during the first half of the year
    • The Group’s first-half performance levels were more solid than expected, particularly concerning operational aspects and specifically office lettings, in terms of both volumes and prices, as well as financial aspects, with the reduction in the average cost of debt and the extension of its maturity. These achievements have further strengthened Gecina’s confidence concerning its expected performance for 2021
    • As a result, while the Group has secured or finalized nearly €453m of sales since the start of the year, the solid operational and financial achievements observed during the first half of the year and the good performance by the Group’s core markets make it possible to maintain expectations for recurrent net income of around €5.3 per share, while the initial forecast excluded the impact of potential sales or acquisitions
  • ​​​​​​​​​​​​​​Outlook for growth and value creation
    • Gradual normalization underway for occupancy rates, and indexation expected to normalize
    • Still significant reversion potential that is continuing to be secured in Paris
    • 17 buildings expected to be delivered from 2021 to 2024, driving value creation and growth
    • Additional IFRS rental potential of around €120m to €130m for the committed pipeline and the controlled and certain pipeline

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