Business
Gecina: Earnings at June 30, 2025
PARIS, July 23, 2025--Regulatory News: Gecina (Paris:GFC):
About this update from Gecina Sa
On the right side of bifurcation PARIS, July 23, 2025 --( BUSINESS WIRE )--Regulatory News: Gecina (Paris:GFC): | Key takeaways ‒ Divestment of c. €750m of mature residential properties , including our mature student housing portfolio for €538m (excl. duties at a 3.9% rental loss rate). ‒ Simultaneous acquisition of a prime office complex in Paris CBD for €435m (incl. duties), and a c.€40m capex plan on the main building targeting a 6.3% yield-on-cost. ‒ Three ongoing flagship projects from our accretive office pipeline (Quarter, Les Arches du Carreau, Mirabeau), all in our clients’ preferred locations, with anticipated annual rental income of €80–90 million. ‒ Leasing up to record heights underscoring our prime office leadership with 94,600 sq.m let or renewed in H1 2025 across all geographies, already exceeding the full-year 2024 total. ‒ +9% rental uplift achieved , driven by sustained rent growth in core office markets (+29% in Paris CBD). ‒ Group occupancy rate improved +60bp vs end-2024 , sustained by the leasing performance. ‒ Major pre-leasing successes: (1) 27 Canal pre-let to the digital division of a top-tier French retailer ahead of H2-2025 delivery (74% of the asset); (2) 162 Faubourg Saint-Honoré : 3,300 sq.m fully pre-let at prime CBD rents to a consultancy (+87% rental uplift). ‒ Acceleration of Residential leasing , with services now deployed across all large assets (covering c. 70% of the Parisian portfolio), and c. 700 leases signed in H1 2025 (already above the full-year 2024 total); +14% rental uplift achieved on Parisian residential assets. ‒ Robust cash flow momentum , with a Recurrent net income (Group share) per share up +6.4% from H1 2024 (€3.38 per share vs €3.18 in H1 2024), supported by overall gross rental income up +4.9% (current, €359.9m), with +3.8% like-for-like (+0.6pts above indexation, including the impact of rental uplift as well as of a better occupancy). ‒ Asset values up +1.6% over the past six months , mainly driven by value gains in central locations (where the investment market is progressively reopening to large scale transactions and international capital is returning). This has contributed to a +1.1% increase in EPRA NTA since year-end 2024. ‒ Resilient LTV of 33.6% including duties , and 34.9% taking into account transactions under preliminary agreement (mainly Rocher-Vienne acquisition). The Group benefits from a low and stable average cost of drawn debt at 1.2%, alongside an optimized hedging profile that ensures long-term visibility (100% of 2025–2026 maturities are hedged, and 85% of maturities through 2029 are covered). | Beñat Ortega, CEO: "In the first half of the year, we achieved remarkable milestones that underscore the strength of our strategy: prime in quality, central in location, and green by design and operations. This positioning, in the right place at the right time, enabled us to deliver outstanding leasing performance across both business lines. We secured 94,600 sq.m of office space, already exceeding our full-year 2024 activity, and signed nearly 700 residential leases. Alongside this, we completed the disposal of our mature student housing portfolio and executed the strategic acquisition of a major office complex in Paris CBD. These decisive actions reinforce our core fundamentals and lay solid foundations for future growth". Strategy aligned with client expectations ‒ More central – prioritizing transportation hubs and seamless access (benefiting from the world’s second-largest public transit network), as well as vibrant, mixed-use neighborhoods offering dining, sports, and culture options. ‒ More prime – enhancing the workplace experience to make the office more attractive than home, through high-quality design, a smart balance between collaborative and individual spaces, and a strong service offering. ‒ More green – with a growing emphasis on sustainable, energy-efficient buildings. Recurrent net income up +6.4% Sound operational performance in an ever-polarized market | Like-for-like basis: gross rental income up +3.8% (+€11.8m) | Current basis: gross rental income up +4.9% (+€16.8m) | Focus on offices: leasing at record heights ‒ Paris: 45,300 sq.m let (48% of the total, c. €31m of annual rent) representing 42 deals for an average maturity of 7 years, including the two above-mentioned pre-leasing deals and renewals with Christie’s or Herbert Smith. ‒ Core Western Crescent: 16,600 sq.m let (18% of the total, c. €8m of annual rent) representing 7 deals for an average maturity of 6 years, including major clients signed up and renewed (Mondelez on Sources and Renault on Horizons in Boulogne-Billancourt, Streem Interservices on Octant-Sextant in Levallois-Perret, Thésée on Be Issy in Issy-les-Moulineaux). ‒ Other locations (including Peri-Défense, inner rim and regions): 32,700 sq.m (35% of the total, c. €9m of annual rent) representing 11 deals, including renegotiations or new-lease to secure occupancy in Peri-Défense assets and in Lyon. | Focus on housing: diversified offering strategy delivering benefits | Rental margin up +0.5pts | Occupancy continuously up +60bps since year-end 2024 ‒ Office portfolio occupancy reached its highest level since September 2019, driven by the record performance in central locations. This strong momentum more than offsets temporary vacancies in the Southern Loop (Boulogne), where several leases (originally signed around the same period) are maturing concurrently. Recent leasing successes, totaling 38,000 sq.m since 2023 (new leases and renewals), highlight sustained demand in this submarket. To further differentiate these assets in a competitive environment, the Group has launched an innovative initiative (FEAT – Pont de Sèvres), offering distinctive design, enhanced services, and best-in-class CSR performance. ‒ Residential occupancy also showed solid progress, reaching 93.1% up 80bps over the past three months, returning to its year-end 2024 level and positioned for additional improvement. This improvement reflects the transition to the execution phase of the transformation plan and the gradual reduction of strategic vacancies. The multi-offering approach, including the conversion of units into one-bedroom apartments, shared accommodation, redesigned family units, and the integration of shared services, is now starting to yield tangible results. Capital allocation & portfolio strategy | Major capital allocation decisions (€1.3bn) demonstrating the Group’s unique know-how | Preparing a prime repositioning for the T1 Tower | 4 prime projects set to enhance rental base by €90m ‒ End-2026: delivery of Rocher-Vienne (Paris CBD, 25,000 sq.m) and Quarter (Paris, Gare de Lyon, 19,100 sq.m), for an expected annual rent of €35–40m. ‒ 2027: phased delivery of Les Arches du Carreau (Neuilly, Q2 2027, 36,500 sq.m) and Mirabeau (Paris, Q3 2027, 37,300 sq.m), for an expected annual rent of €45–50m. ‒ After 2028: progressive lease-up of the refurbished T1 Tower generating additional rental contributions over time. | CSR: on track to meet the Group’s 2025 targets Balance sheet maintained strong and healthy | Portfolio values firmly recovering with a +1.6% over the past six months Portfolio values up +1.6% since year-end 2024 on a like-for-like basis (excluding the impact of change in transaction tax rates. After this change, values are up +1.2% (like-for-like)), with an overall portfolio value of €17.0bn . This reflects both the underlying valuation trends and the impact of disposals (prior to the acquisition of the new office complex in Paris CBD). ‒ Stabilization of the yield effect in central areas, supported by signs of a potential reopening of the investment market for large office transactions in core Paris locations, while yield decompression continues to decelerate in other areas. ‒ Rental effect remains positive, though stabilizing. Rent growth expectations continue to support values in central locations (Paris, Neuilly), while more subdued dynamics persist in secondary areas where rental values are still adjusting. | Financial strategy: ready to operate and grow | NAV (NTA) up +1.1% vs end-2024 to €144.3 per share ‒ Dividend paid in the first half of 2025: -€2.7 ‒ Recurrent net income: +€3.4 ‒ Value adjustment linked to the yield effect: +€1.3 ‒ Value adjustment linked to the rent effect: +€1.0 ‒ Other (including IFRS 16): -€1.4 | Outlook & upper guidance confirmed ‒ Indexation expected to continue to slow down. ‒ Demand for centrally located offices still strong (bifurcating markets), with office job creations still on the rise in the Paris Region and companies favoring central, accessible, prime office spaces. ‒ Rental income: (1) impact of the disposals of mature residential assets and the student housing portfolio in particular (c. €10.4m of net rent after platform costs, over 6 months); (2) support from the deliveries of newly repositioned assets in 2024 (Mondo, 35 Capucines, Montrouge Porte Sud, Dareau) and 2025 (Icône, 27 Canal); (3) €20m rent loss (on the entire year) due to the transfer of assets to the pipeline, (4) contribution from the fully let building on the recent acquisition (c. €5-6m of annual rent). ‒ Discipline maintained on the cost base and visibility over financial costs. Financial agenda - 10.14.2025: Business at September 30, 2025, after market close About Gecina Gecina is a leading operator, that fully integrates all real estate expertise, owning, managing, and developing a unique prime portfolio valued at €17.0bn as at June 30, 2025. Strategically located in the most central areas of Paris and the Paris Region, Gecina’s portfolio includes 1.2 million sq.m of office space and nearly 5,300 residential units. By combining long-term value creation with operational excellence, Gecina offers high-quality, sustainable living and working environments tailored to the evolving needs of urban users. As a committed operator, Gecina enhances its assets with high-value services and dynamic property and asset management, fostering vibrant communities. Through its YouFirst brand, Gecina places user experience at the heart of its strategy. In line with its social responsibility commitments, the Fondation Gecina supports initiatives across four core pillars: disability inclusion, environmental protection, cultural heritage, and housing access. Gecina is a French real estate investment trust (SIIC) listed on Euronext Paris, and is part of the SBF 120, CAC Next 20 and CAC Large 60 indices. Gecina is also recognized as one of the top-performing companies in its industry by leading sustainability rankings (GRESB, Sustainalytics, MSCI, ISS-ESG, and CDP) and is committed to radically reducing its carbon emissions by 2030. www.gecina.fr Appendices | Financial statements, net asset value (NAV) and pipeline At the Board meeting on July 23, 2025, chaired by Philippe Brassac, Gecina’s Directors approved the financial statements at June 30, 2025. The audit procedures have been completed on these accounts, and the verification reports have been issued. | Condensed income statement and recurrent income | Consolidated balance sheet | Net asset value | Development pipeline overview EPRA reporting at June 30, 2025 Gecina applies the EPRA (1) best practices recommendations regarding the indicators listed hereafter. Gecina has been a member of EPRA, the European Public Real Estate Association, since its creation in 1999. The EPRA best practice recommendations include, in particular, key performance indicators to make the financial statements of real estate companies listed in Europe more transparent and more comparable across Europe. Gecina reports on all the EPRA indicators defined by the "Best Practices Recommendations" available on the EPRA website. When they are not applicable, the lines of the tables defined by EPRA do not appear below. Moreover, EPRA defined recommendations related to corporate social responsibility (CSR), called "Sustainable Best Practices Recommendations". | EPRA earnings The table below indicates the transition between the consolidated net income and the EPRA earnings: | Net Asset Value The calculation for the Net Asset Value is explained in subsection 1.1.7 Net Asset Value. | EPRA net initial yield and EPRA "Topped-up" net initial yield The table below indicates the transition between the yield rate disclosed by Gecina and the yield rates defined by EPRA: | EPRA vacancy rate EPRA vacancy rate corresponds to the vacancy rate "spot" at the end of the period. It is calculated as the ratio between the estimated market rental value of vacant spaces and potential rents for the operating property portfolio. The financial occupancy rate reported in other parts of this document corresponds to the average financial occupancy rate of the operating property portfolio. EPRA vacancy rate does not include leases signed with a future effect date. | EPRA cost ratios | Capital expenditure | EPRA Loan-to-Value Additional information on rental income | Rental situation Gecina’s tenants come from a wide range of sectors of activity, reflecting various macro-economic factors. Breakdown of tenants by sector (offices – based on annualized headline rents) Weighting of the top 20 tenants (% of annualized total headline rents) | Annualized gross rental income Annualized rental income is down by –€55 million from December 31, 2024, mainly reflecting the impact of residential asset disposals (–€34 million, including the student portfolio) and the loss of rents due to the departure of tenants from buildings undergoing or expected to undergo redevelopment (–€33 million), partially offset by the proceeds from building deliveries (+€13 million). In addition, the annualized rental income figures below do not yet include the rental income that will be generated by committed or controlled projects, which may represent nearly €80-€90 million of potential headline rents. | Volume of rental income by three-year break and end of leases 3.4 Financial resources The first half of 2025 was marked by the continuation of the monetary easing initiated in 2024. With the disinflation process well underway, the European Central Bank continued its gradual reduction of the deposit facility rate, which fell from 3.00% to 2.00% during the semester. This accommodative stance further eased long-term interest rates, helping to restore confidence in financial markets. However, the French economic growth remains moderate, held back by still-fragile domestic demand and an uncertain geopolitical environment. At June 30, 2025, Gecina had immediate liquidity of €5.2 billion, or €3.7 billion excluding NEU CP, significantly surpassing the long-term internal target of a minimum of c. €2.0 billion. This excess liquidity notably covers all bond maturities until 2029. The proactive and dynamic management of the Group’s financial structure further increases its strength, resilience and visibility for the coming years. It also ensures that the Group’s main credit indicators remain at an excellent level. The maturity of the debt is 6.4 years, the interest rate risk hedging is fully hedged until the end of 2026 and 85% on average until the end of 2029 (pro forma of secured large office complex acquisitions), and the average maturity of this hedging is 5.3 years. The loan-to-value (LTV) ratio (including duties) was 33.6%, and the interest coverage ratio (ICR) stood at 6.4x. Gecina therefore has a significant margin with respect to all of its banking covenants. The average cost of drawn debt is stable and stands at 1.2%. | Debt structure at June 30, 2025 Net financial debt amounted to €6.1 billion at the end of June 2025, down €468 million compared to end-December 2024, mainly due to disposals carried out during the first half. The main characteristics of the debt are: Debt by type Gecina uses diversified sources of financing. Long-term bonds represent 76% of the Group’s nominal debt and 53% of the Group’s authorized financing. At June 30, 2025, Gecina’s gross nominal debt was €6.9 billion and comprised: ◆ €5.3 billion in long-term Green Bonds issued under the Euro Medium-Term Notes (EMTN) program; ◆ €0.2 billion in Green Term Loans; ◆ €1.5 billion in NEU CP covered by confirmed medium and long-term green credit lines. | Liquidity The main objectives of the liquidity are to provide sufficient flexibility to adapt the volume of debt to the pace of acquisitions and disposals, cover the refinancing of short-term maturities, allow refinancing under optimal conditions, meet the criteria of the credit rating agencies, and finance the Group’s investment projects. As of June 30, 2025, Gecina had €5.2 billion in liquidity (including €4.4 billion in undrawn credit lines and €0.7 billion in cash, mainly linked to the proceeds from the disposal of the student housing portfolio completed at the end of June, which will be reinvested in July for the acquisition of a large office complex), covering all bond maturities through 2029 (including those in 2027, 2028, and 2029). After deducting short-term resources and taking into account available cash, liquidity stands at €3.7 billion. In the first half of 2025, Gecina continued to use short-term resources via the issue of NEU CPs. At June 30, 2025, the Group’s short-term resources totaled €1.5 billion. | Debt maturity breakdown At June 30, 2025, the average maturity of Gecina’s debt, after allocation of unused credit lines and cash, was 6.4 years. The following chart shows the debt maturity breakdown after allocation of unused credit lines at June 30, 2025: Debt maturity breakdown after taking into account undrawn credit lines (in billion euros) All of the credit maturities up to 2029, including the 2027, 2028 and 2029 bond maturities in particular, were covered by unused credit lines as at June 30, 2025 and by free cash. | Average cost of debt The average cost of the drawn debt amounted to 1.2% at the end of June 2025 (and 1.5% for total debt), stable compared to 2024. | Credit rating The Gecina group is rated by both Standard & Poor’s and Moody’s, which maintained the following ratings in the first half of 2025: ◆ A– (stable outlook) for Standard & Poor’s; ◆ A3 (stable outlook) for Moody’s. | Management of interest rate risk hedge Gecina’s interest rate risk management policy is aimed at hedging the Company’s exposure to interest rate risk. To do so, Gecina uses fixed-rate debt and derivative products (mainly caps and swaps) in order to limit the impact of interest rate changes on the Group’s results and to keep the cost of debt under control. In the first half of 2025, Gecina continued to adjust and optimize its hedging policy with the aim of: ◆ maintaining an optimal hedging ratio; ◆ maintaining a high average maturity of hedges (fixed-rate debt and derivative instruments); and ◆ securing favorable long-term interest rates. At June 30, 2025, the average duration of the portfolio of firm hedges stood at 5.3 years. Based on the current level of debt (pro forma of secured large office complex acquisitions), the hedging ratio averages nearly 100% over the next two years, and 85% on average through the end of 2029. The chart below shows the profile of the hedging portfolio (in billion euros): Gecina’s interest rate hedging policy is implemented mainly at Group level and on the long-term; it is not specifically assigned to certain loans. Measuring interest rate risk Gecina’s anticipated nominal net debt in 2025 is fully hedged against interest rate increase. Based on the existing hedging portfolio, contractual conditions as at June 30, 2025, and anticipated debt in 2025, a 50 basis point increase or decrease in the interest rate, compared to the forward rate curve of June 30, 2025, would have no material impact on financial expenses in 2025. | Financial structure and banking covenants Gecina’s financial position as at June 30, 2025, meets all requirements that could affect the compensation conditions or early repayment clauses provided for in the various loan agreements. The table below shows the status of the main financial ratios outlined in the loan agreements: The financial ratios shown above are the same as those used in the covenants included in all the Group’s loan agreements. View source version on businesswire.com: https://www.businesswire.com/news/home/20250723530642/en/ Contacts Gecina Contacts Financial communications Nicolas BROBAND Tel.: +33 (0)1 40 40 18 46 [email protected] Antoine DUBOIS Tel.: +33 (0)1 40 40 63 13 [email protected] Press relations Glenn DOMINGUES Tel.: + 33 (0)1 40 40 63 86 [email protected] Armelle MICLO Tel.: + 33 (0)1 40 40 51 98 [email protected]