Earnings at June 30, 2022

Over 57,000 sq.m of office rental transactions completed by Gecina since the start of the year, illustrating the Group’s robust performance on central markets with positive trends

• 70% for relettings or renewals, with average reversion of +13% (+26% in Paris)
• 17% for vacant space, driving a +110bp increase in the average financial occupancy rate for offices over the first half of the year
• 13% for assets under development: the letting rate for pipeline operations delivered in 2022 and 2023 is now 85% (vs. 67% at end-2021)

Gecina has signed several transactions in line with or higher than prime rents in Paris and Neuilly

• Around 80% of the Boétie building (scheduled for delivery in early 2023) and 64 Lisbonne relet at the start of July 2022 were signed at around €950/sq.m  
• 85% of 157-CDG in Neuilly let above prime market rents (€650-700)

Gross rental income up +3% like-for-like, reflecting the improved occupancy rate and the first increases in indexation

• Rent indexation reflected in like-for-like growth as leases pass their anniversary dates. First-half contribution of around +0.9%, which will mechanically increase progressively over the coming quarters
• For reference, the benchmark index, published each quarter for Office rent indexation (ILAT index), came to +5.1% at end-March 2022 (index published at end-June 2022)

Proactive debt management, ensuring good financial visibility

• Opportunistic €500m bond issue in January 2022, with a 0.875% coupon and a maturity of 11 years, enabling Gecina to increase its liquidity to €3.3bn
• Thanks to this proactive management, Gecina has a liquidity surplus of around €1bn, enabling it to cover its bond maturities through to 2027
• Lastly, Gecina has a high hedging rate in the short term (around 90%), as well as the long term (75% on average through to end-2028, with an average hedging instrument maturity of 7.2 years)
• The average cost of debt is stable for the first half of the year, with the LTV down -150bp year-on-year to 31.9%

NTA up +3% over six months to €181.2

• The portfolio value climbed +1.3% over the first half of the year, in a context of rising inflation and therefore future increases in indexation, with significant reversion potential
• The NTA is up +3% over six months and +5% year-on-year

In this context of good operational performances, and despite interest rates rising more quickly than expected, the recurrent net income per share target for 2022 is being raised to €5.55, up +7% excluding the impact of disposals compared with 2021 (and +4.3% including them).

Please read the full press release here