Robust and positioned for growth
- Recurrent Net Income per share above the upper guidance range,
up +8.2% to €6.01 in 2023
- 100% of 2023-2024 deliveries already let or pre-let (100,000
sq.m)
- 2023 dividend to be fully paid in cash (€5.3 per share) 1
- LTV broadly stable at 34%, following €1.3bn of disposals in
2023, +8% above appraisals with a 2.5% yield
- 2024 recurrent net income per share expected to be up between
€6.35 to €6.40 (+5.5% to +6.5%)
Regulatory News:
Gecina (Paris:GFC):
Outperforming the leasing market with
156,000 sq.m let or relet, up +60% vs. 2022
- Leasing trends confirmed in central areas
- Reversion captured on offices (+30% for Paris, +14% overall)
and residential (+13%)
- Average occupancy rate up +90bp in 2023 on Offices, +80bp in
total
- Weighted average firm duration of 8.4 years
- 2023-2024 pipeline fully let / prelet (> 100,000
sq.m)
- Mondo (30,000 sq.m) and 35 Capucines (6,300 sq.m) in Paris CBD
fully pre-let in 2023
Driving all P&L aggregates upwards
in 2023 through strong achievements
- Improvement in occupancy, indexation and rental uplifts
reflected in +6.1% LfL growth
- 65,000 sq.m of projects delivered in 2022-2023 (incl. l1ve,
Boétie in Paris CBD) driving the pipeline’s net rental contribution
to +€22m, with gross rents climbing +6.5%
- SG&A and service charges kept under control despite
inflation, with EBITDA up +7.8%
- Hedging and disposals in 2023 kept financial expenses under
control (cost of drawn debt of 1.1%), with +8.2% Recurrent Net
Income per share growth
- Record CSR achievements: #1 European REIT in GRESB, -20%
for CO2 emissions, -10% for energy consumption
Taking decisive capital allocation decisions, ideally positioning the
Group for the new reality
- €1.3bn of disposals with an average premium of
+8% versus the latest appraisals and a c.2.5% yield,
executed in a muted investment market, and resulting in:
- LTV of 34% (including duties), broadly stable vs.
end 2022 despite a -10.6% drop in valuations
- Liquidity further strengthened, now covering bond
maturities until 2028
- Debt now 92% hedged on average through to
2028
- €1.7bn of new debt opportunistically sourced to
anticipate refinancings at same spread conditions thanks to strong
access to all financing sources
- Proceeds from disposals to fund an accretive development
pipeline over the next four years
Shaping Gecina for future
growth
- Favorable operational performances (positive trends on
central markets, supportive rental uplift and indexation)
- Two iconic pre-let projects to be delivered in 2024
(Mondo and 35 Capucines in Paris CBD)
- Two major new projects in central locations to be
launched in 2024 (c.60,000 sq.m, deliveries 2027e)
- Disposals carried out in 2023 with an accretive impact
on recurrent net income
- Anticipating new clients’ requirements with
differentiating operating platforms within the office and
residential portfolios, to capture incremental performance
- 2024 recurrent net Income expected to grow between
€6.35 and €6.40 per share (+5.5% to 6.5%)
Beñat Ortega, Chief Executive Officer: “In a quite
uncertain environment, Gecina delivered strong operational and
financial achievements confirming the unique positionning of our
Group. Our outperformance on our asset portfolio was further
strengthened by our balance sheet, combining to offer good
visibility over our cash flow growth moving forward.
The Group also successfully managed to opportunistically
reinforced its strengths this year by disposing €1.3bn of mature
real estate assets, above their appraisal values with an accretive
impact on earnings, thanks to an average 2.5% yield. This is
enabling us to further strengthen the quality of our balance sheet,
in addition to financing our pipeline, concentrated primarily in
Paris and driving strong value creation, while opening
opportunistic financial headroom as well.
The Group is therefore well placed to achieve growth thanks to
our decisive capital and asset allocation initiatives, combined
with a strong CSR leadership, aligned with the new reality on the
real estate markets. We are building the foundations for a Group
that will be positioned to deliver sustainable outperformance as we
move forward”.
FY 2022
FY 2023
YoY growth
LfL growth
Offices
497.9
534.0
+7.3%
+6.5%
Residential
128.0
132.9
+3.8%
+4.6%
Gross rents
625.9
666.8
+6.5%
+6.1%
RNI in €m
409.9
444.2
+8.4%
RNI per share
5.56
6.01
+8.2%
LTV (excl. duties)
35.7%
36.5%
+0.8pt
LTV (incl. duties)
33.7%
34.4%
+0.8pt
EPRA NRV in € per share
189.5
158.1
-16.6%
EPRA NTA in € per share
172.2
143.6
-16.6%
EPRA NDV in € per share
183.8
150.1
-18.3%
DPS in €
5.30
5.302
-
About Gecina
A specialist in centrality and uses, Gecina operates innovative
and sustainable living spaces. The real estate investment company
owns, manages and develops a unique portfolio in the heart of
central areas of the Paris Region, covering more than 1.2 million
sq.m of offices and more than 9,000 housing units, almost
three-quarters of which are located in Paris City or in
Neuilly-sur-Seine. This portfolio is valued at 17.1 billion euros
at end-2023.
Gecina has firmly established its focus on innovation and its
human approach at the heart of its strategy to create value and
deliver on its purpose: “Empowering shared human experiences at
the heart of our sustainable spaces”. For our 100,000 clients,
this ambition is supported by our client-centric brand YouFirst. It
is also positioned at the heart of UtilesEnsemble, our program
setting out our solidarity-based commitments to the environment, to
people and to the quality of life in cities.
Gecina is a French real estate investment trust (SIIC) listed on
Euronext Paris, and is part of the SBF 120, CAC Next 20, CAC Large
60 and CAC 40 ESG indices. Gecina is also recognized as one of the
top-performing companies in its industry by leading sustainability
benchmarks and rankings (GRESB, Sustainalytics, MSCI, ISS-ESG and
CDP). www.gecina.fr
Recurrent net income : strong growth
In million euros
Dec 31, 2022
Dec 31, 2023
Change (%)
Gross rental income
625.9
666.8
+ 6.5%
Net rental income
569.4
609.5
+ 7.0%
Operating margin for other business
3.0
1.2
- 59.0%
Other income net
3.8
2.1
- 43.7%
Overheads
(79.7)
(77.9)
- 2.3%
EBITDA
496.5
535.0
+ 7.8%
Net financial expenses
(83.6)
(90.0)
+ 7.6%
Recurrent gross income
412.8
445.1
+ 7.8%
Recurrent net income from associates
2.4
2.7
+ 11.9%
Recurrent minority interests
(1.8)
(2.0)
+ 9.2%
Recurrent tax
(3.6)
(1.6)
- 54.1%
Recurrent net income (Group share)
(1)
409.9
444.2
+ 8.4%
Recurrent net income (Group share) per
share
5.56
6.01
+ 8.2%
(1) EBITDA after deducting net financial expenses, recurrent
tax, minority interests, including income from associates and
restated for certain non-recurring items
Recurrent net income (Group share) is up +8.2% to €6.01 per
share, showing a significant improvement compared with end-June
2023 (+7.5%), thanks to the combination of robust rental trends and
the good level of rental expenses, overheads and financial
expenses.
Like-for-like rental
performance: +€34m
Growth driven by Gecina’s intense rental market activity,
reflected in the higher occupancy rate, the rental uplift captured
and the impact of indexation.
Contribution from the
pipeline (deliveries and redevelopments): +€22m net in
rental income
Recurrent net income (Group share) benefited from the
positive impact of the pipeline, with a stronger impact of
building deliveries than the temporary effects of assets vacated
with the view to being redeveloped.
- +€28m of additional rents generated by the recent
deliveries of “157 CDG” in Neuilly and, above all the “l1ve”
building in Paris’ Central Business District in 2022, as well as
“Boétie” in Paris’ CBD and a residential building in Ville d’Avray
during the first half of 2023.
- Reduced rental income by -€6m, including the launch of
Icône project (previously 32 Marbeuf in Paris CBD) and 27 Canal
(previously Flandre in Paris City).
Asset disposals: -€15m net
change in rental income
Most disposals completed since the start of the year (€1.3bn of
disposals, with a loss of rental income of around 2.5%) occurred at
the end of the first half of the year.
Rental margin up +40bp
Group
Offices
Residential
Rental margin at Dec 31, 2022
91.0%
93.4%
81.5%
Rental margin at Dec 31, 2023
91.4%
94.1%
80.4%
Rental margin is up +40bp over 12 months. This growth was
achieved primarily thanks to an higher average occupancy rate and
and a more effective service charges management, offsetting the
increase in local taxes.
EBITDA margin up +90bp: overheads under control
In an inflationary context, the Group paid particularly close
attention to its overheads. This focus has started to deliver
benefits across all of the Company’s cost areas. As a result, the
EBITDA margin shows a significant increase, up +90bp
year-on-year.
Net margin up +110bp: favorable trend for financial expenses over
the second half of the year
The disposals completed at the end of the first half of the year
impacted financial expenses for the second half of 2023, offsetting
the moderate increase in the average cost of debt. The change in
financial expenses over the full year in 2023 remained under
control, with an increase of only +€6m. This moderate increase
compares with EBITDA growth of +€39m, has driven a strong
improvement in the Group’s net margin (+110bp).
On a full year basis, the increase in interest rates was
partially offset by a volume effect: as disposals occurred mainly
at the end of the first half of the year, net debt was down by
nearly -€950m at end-2023 (vs. end-2022), with average debt in 2023
down -€200m. Consequently, financial expenses were optimized in H2
20023 by -€5m compared with the first half of the year.
Gross rental income: strong growth both on a current
basis and like-for-like
Gross rental income
Dec 31, 2022
Dec 31, 2023
Change (%)
In million euros
Current basis
Like-for-like
Offices
497.9
534.0
+7.3%
+6.5%
Residential
128.0
132.9
+3.8%
+4.6%
Total gross rental
income
625.9
666.8
+6.5%
+6.1%
On a current basis, rental income is up +6.5%, benefiting
from not only the robust like-for-like rental performance, but also
the pipeline’s strong net rental contribution (+€22m),
offsetting the impacts of the volume of disposals (-€15m).
Like-for-like, the acceleration in performance exceeded
the levels reported at end-2022, with rental income growth of +6.1%
overall (vs. 4.4% at end-2022) and +6.5% for offices (vs. +4.6% at
end-2022).
All components contributing to like-for-like rental income
growth are trending up:
- The impact of the increase in the occupancy rate
contributed +0.6%
- The impacts of indexation contributed +4.7%
- The rental reversion captured contributed +0.8%
Offices: positive rental achievements
Gross rental income - Offices
Dec 31, 2022
Dec 31, 2023
Change (%)
In million euros
Current basis
Like-for-like
Offices
497.9
534.0
+7.3%
+6.5%
Central areas (Paris,
Neuilly, Southern Loop)
362.0
386.8
+6.9%
+5.2%
Paris City
289.1
304.9
+5.4%
+5.2%
- Paris CBD & 5-6-7
179.7
193.3
+7.6%
+6.1%
- Paris - Other
109.4
111.6
+2.0%
+4.1%
Core Western Crescent
72.8
82.0
+12.6%
+5.2%
- Neuilly-Levallois
28.7
34.2
+19.2%
+4.0%
- Southern Loop
44.2
47.8
+8.2%
+5.7%
La Défense
65.0
72.5
+11.5%
+11.5%
Other locations
70.9
74.6
+5.3%
+7.8%
Increase in occupancy rate, positive
reversion, indexation
Gecina has let, relet or renegotiated around 156,000 sq.m
since the start of the year, nearly +60% more than the level of
lettings activity recorded in 2022. These new leases were signed
with an average firm maturity of 8.4 years.
The majority of the transactions concerned relettings
or renewals.
- Overall, the average releasing spread captured came to
+14%.
- This performance was driven by central locations in particular,
with nearly + 30% uplift in Paris City.
The remaining 30% or so of transactions related to buildings
that were delivered recently or under development.
Iconic transactions confirming the
Group's strategic positioning
During the second half of the year, Gecina notably let the
Mondo building (30,000 sq.m) in Paris’ CBD to the Publicis
Group, thanks to an iconic letting operation, both in terms of size
and quality of the project. This building will be delivered in the
second half of 2024.
Several leasing transactions at close to or over
€1,000/sq.m/year in Paris’ Central Business District were also
finalized this year, confirming the new rental benchmarks,
including:
- 35 Capucines (6,300 sq.m): building
fully pre-let to a law firm and a luxury goods group (delivery
expected for the second quarter of 2024) - 24-26
Saint-Dominique (7,900 sq.m): building fully pre-let to a
private equity group and a law firm, following the BCG Group’s
relocation to the l1ve building in Paris’ CBD - For the 35
Opéra, 16 Montmartre and 32 Haussmann buildings, leases
representing a total of nearly 2,000 sq.m were signed recently
based on prime rents for small and mid-size units let as “serviced
offices”.
As a reminder, 86% of the Group’s portfolio is located in
Paris City, Neuilly-sur-Seine/Levallois or the Southern Loop
(primarily Boulogne-Billancourt), concentrated in the sectors with
the most positive trends, benefiting from the polarization of the
markets.
Offices gross rental
income
Like-for-like office rental income growth came to +6.5%
year-on-year (vs. +4.6% at end-2022), benefiting from an
improvement in the occupancy rate across our buildings for +0.8%,
as well as a positive indexation effect which has continued to ramp
up (+5.3%), in an inflationary context, as well as the impact of
the positive reversion captured in the last few years (+0.4%).
- In the most central sectors (86% of
Gecina’s office portfolio) in Paris City, Neuilly-Levallois and
Boulogne-Issy, like-for-like rental income growth came to +5.2%,
driven primarily by the impact of indexation and rental
uplifts.
- On the La Défense market (7% of the Group’s
office portfolio), Gecina’s rental income is up +11.5%
like-for-like, linked mainly to the impact of indexation and the
improvement in occupancy, mainly during the second half of
2022.
Rental income growth on a current basis came to
+7.3% for offices, reflecting the impact of the pipeline’s
positive net contribution of over €20m, notably taking into account
the delivery of the “l1ve” building during the second half of 2022
and the “Boétie” building during the first half of 2023, which are
both located in Paris’ Central Business District, largely
offsetting the buildings vacated and currently being redeveloped
(Icône-Marbeuf, Carreau de Neuilly and 27 Canal-Flandre in Paris
and Neuilly). The loss of rent resulting from the €1.3bn of
disposals completed in 2023, primarily midway through the year,
represents less than €15m for the full year in 2023, including €13m
for offices.
Residential: operational trends confirmed
Gross rental income
Dec 31, 2022
Dec 31, 2023
Change (%)
In million euros
Current basis
Like-for-like
Residential
128.0
132.9
+3.8%
+4.6%
YouFirst Residence
107.4
110.3
+2.7%
+3.8%
YouFirst Campus
20.6
22.6
+9.8%
+8.1%
Rental income on residential portfolio is up + 4.6%
like-for-like. This performance reflects the impact, of
indexation and rental reversion captured along
tenants’ rotation.
YouFirst Residence: strong
operational trends
Like-for-like rental income from residential properties
is up +3.8%. This growth benefited from a significant
favorable effect resulting from the reversion captured (+13%
on average) through our tenant rotation, which has been ramping up
steadily for the past two years.
YouFirst Campus: very strong
rental trends
Rental income from the student housing portfolio is up
+8% like-for-like and +10% on a current basis, linked primarily to
the significant positive reversion captured thanks to high rotation
rate in this business, as well as the possibility offered for young
workers to become tenants, to grow average occupancy of our
buildings.
Financial occupancy rate up +80bp year-on-year
Average financial occupancy rate
Dec 31, 2022
Jun 30, 2023
Dec 31, 2023
Offices
92.8%
93.8%
93.7%
Central areas (Paris / Neuilly /
Boulogne)
93.6%
93.5%
93.2%
La Défense
91.2%
97.9%
98.3%
Other locations (Péri-Défense, Inner /
Outer Rims and Other regions)
90.5%
91.5%
91.9%
Residential
94.5%
94.4%
94.7%
YouFirst Residence
96.7%
96.3%
96.4%
YouFirst Campus
86.0%
86.8%
87.7%
Group total
93.1%
93.9%
93.9%
The Group’s average financial occupancy rate reached
93.9%, up +80bp over 12 months, back to pre-Covid levels,
benefiting from the strong upturn in leasing activity since
2021.
Regarding offices, the average financial occupancy rate
is up +90bp to 93.7%. This rate takes into account
two buildings vacated in 2023, located in Paris, which have already
been relet, but are considered in financial vacancy while minor
renovation works are carried out. If we consider these two
buildings as occupied, the normative occupancy rate reaches
95.6%.
Financial occupancy rate came to 93.2% in the central sectors
(Paris, Neuilly and Boulogne), 98.3% in La Défense and 91.9%
elsewhere.
Regarding residential buildings, average financial
occupancy rate for 2023 remained stable overall at 94.7% (+20bp),
highlighting this segment’s rental resilience.
CSR: Gecina’s leadership confirmed for Corporate Social
Responsibility
Energy performance plan
already particularly effective
In 2022, Gecina launched an energy performance plan aiming to
rapidly reduce energy consumption, while supporting its tenants to
use their offices more efficiently.
This efficiency plan is already showing very significant
progress. Average energy consumption across the commercial
portfolio where Gecina directly manages the technical
energy-consuming equipment has been reduced by -10%,
contributing to a -20% reduction in carbon emissions
in one year.
Carbon emissions across Gecina’s commercial portfolio have
been reduced by nearly -74% since 2008.
Gecina’s entire operational commercial
portfolio now certified
100% of the Group’s operational office portfolio is now
certified (HQE or BREEAM), which represents significant progress
compared with the 87% recorded at end-2022, thanks to the
certification of 23 new buildings.
In this area, this performance enabled the Group to already
achieve in 2023 the objective set for 2025. Gecina is again very
favorably positioned compared to its benchmark sector, where only
17% to 20% of assets are certified today (sources: OID, CBRE).
Moreover, 61% of this portfolio is certified with “excellent” or
“exceptional” ratings.
Gecina, the GRESB’s top-ranked European
real estate company, confirms its leadership
In 2023, Gecina was ranked first place out of the 100 listed
real estate companies in Europe by GRESB, which assesses the
ESG performance of real estate companies each year, and increased
its overall score by two points to 96/100 compared with 2022. This
score reflects an outstanding performance, with significant
progress across the criteria covering water management, risk
management and greenhouse gas emissions, thanks to a 10% reduction
in emissions reported in 2022. In the “development” section, Gecina
achieved the maximum rating of 100/100.
In addition, Gecina was recognized in the MSCI rankings,
with its AAA rating confirmed for the sixth consecutive year,
positioning the Group as one of the top 18% of the best performers
worldwide.
With ISS ESG, Gecina retained its B- score, clearly
setting out its position as one of its sector’s best-performing
companies. It also retained its “low risk” rating for the third
consecutive year with the prestigious rating agency
Sustainalytics.
Finally, CDP Climate Change once again confirmed in
February 2024 that Gecina is part of the select group of companies
that have been awarded an “A” rating in this climate change
benchmark.
Portfolio value
Breakdown by segment
Appraised values
Net capitalization
rates
Like-for-like change
In million euros
Dec 31, 2023
Dec 31, 2023
Dec 31, 2022
Dec 2023 vs. Dec 2022
Offices (incl. retail
units)
13,476
5.2%
4.3%
-12.1%
Central areas
11,548
4.5%
3.7%
-10.3%
- Paris City
9,481
4.1%
3.4%
-9.1%
- Core Western Crescent
(Neuilly/Levallois Southern Loop)
2,067
5.9%
4.8%
-14.4%
La Défense
966
8.0%
6.0%
-21.2%
Peripheral areas
961
9.6%
7.6%
-19.8%
Residential
3,565
3.4%
3.1%
-4.3%
Hotels & finance leases
42
Group total
17,082
4.8%
4.0%
-10.6%
Total value: unit appraisals
17,630
-10.1%
The portfolio value (block) came to €17.1bn, with
a like-for-like value adjustment of -10.6% over 12 months
and nearly -7% over six months. This change includes contrasting
trends depending on the areas, in a context of markets
polarization, benefiting the most central sectors and residential
assets.
Offices:
The value adjustment for the office portfolio shows a
contraction of around -8% on average during the second half of 2023
and -12% over 12 months.
- The overall portfolio reflects the adjustment in yields
(“yield effect”), with a negative impact across all
sectors (around -18% year-on-year).
- This is combined with a “rent effect” reflecting the
different features of the Paris Region’s rental markets. This
rent effect is positive in Paris City (+9%) and the
Core Western Crescent (Neuilly and Boulogne) with nearly +4.5%, but
it is negative elsewhere (-2% to -3%).
Residential: resilient
values
The residential portfolio value shows an higher level of
resilience with a contraction of -4% for the full year, thanks in
particular to strong rental trends.
NAV: Net Tangible Assets (NTA) of €143.6 per share
- The EPRA Net Disposal Value (NDV) came to €150.1
per share, with €157.5 based on unit values for the
residential portfolio. - The EPRA Net Tangible Assets (NTA)
came to €143.6 per share, with €151.0 based on unit
values for the residential portfolio. - The EPRA Net Reinstatement
Value (NRV) came to €158.1 per share, with
€166 based on unit values for the residential portfolio.
The contraction in the NTA (-11% over six months and around
-16.6% for the year) is linked primarily to the like-for-like
adjustment in the portfolio value.
The change in EPRA Net Tangible Assets (NTA) per share came to
-€29 over 12 months, with the following breakdown:
- Dividend paid in 2023: - €5.30 - 2023
recurrent income: + €6.01 - Value adjustment linked to the yield
effect: - €54.6 - Value adjustment linked to the “rent” effect: +
€25.6 - Other (including IFRS 16, IAS 17): - €0.4
Capital allocation: €1.3bn of disposals
immediately accretive, with positive impacts across all
aggregates
€1.3bn of disposals, +8% above the appraisal values, 2.5%
average yield on cost
In 2023, the Group completed the following disposals:
- 10 office buildings, for over €1bn, with a
loss of rental income of around +2.4% and a premium versus the
latest appraisal values of around +10%
- seven office buildings in Paris City (129 Malesherbes, 142
Haussmann, 43 Friedland, 209 Université, Pyramides, 189 Vaugirard
and 101 Champs Elysées), representing 21,400 sq.m
- 3 office buildings located in secondary sectors, representing
around 15,000 sq.m
- three residential buildings and a number of
unit sales for a total of €258m, with a +3% premium versus the
appraisals and a loss of rental income of 3.1%
In addition to the 101 Champs Elysées building, the Group sold
more than €500m of assets in 2023, securing a premium versus the
appraisals of close to +5% and an average yield of 3.1%.
Use of proceeds from the disposals
In the short term, the proceeds from these disposals were
used to repay short-term financing facilities (commercial
paper) with an average cost of around 3.5%, resulting in an
accretive impact on recurrent net income per share.
These disposals had a positive impact on Gecina’s debt
aggregates (LTV, ICR, net debt/EBITDA), as well as the level
of available liquidity, now enabling it to cover all of its
maturities through to 2028 (at constant debt levels).
These disposals are also enabling the Group to optimize its
debt hedging with a view to increasing its duration and level
over the medium term.
Over the medium term, these disposals provide visibility
to fund the pipeline of committed projects for which the return on
capital employed is very significantly higher than the loss of
rental income.
In 2023, €383m were invested, with nearly 70% focused on the
development pipeline or projects delivered during the year.
The remainder corresponds to investments to improve the
portfolio under operations, helping capture the reversion
potential.
Balance sheet and financial structure: debt structure
further strengthened
Ratios
Covenant
Dec 31, 2023
Loan to value (block, excl. duties)
< 60%
36.5%
EBITDA / net financial expenses
> 2.0x
5.9x
Outstanding secured debt / net asset value
of portfolio (block, excl. duties)
< 25%
0%
Net asset value of portfolio (block, excl.
duties) in billion euros
> 6.0
17.1
Favorable access to all funding sources
Since the start of 2023, thanks to its strong financial ratings,
Gecina has proactively secured opportunistically €1.7bn of new debt
under favorable conditions.
- €400m of bond financing, with an average maturity of 8.5 years
and a margin of 87bp
- €1.3bn of bank loans, including €1.2bn of undrawn credit lines
with a maturity of nearly 7 years based on equivalent financial
conditions (margin) to the other credit lines.
LTV stable at 34% (including duties), improvement in the ICR and
the net debt/EBITDA ratio
The reduction in the Group’s net debt (to €6.2bn at
end-2023 vs. €7.2bn at end-December 2022), particularly following
the disposals completed during the first half of the year,
consolidated the LTV at around 34% (including duties)
despite a significant contraction in the appraisal values during
2023.
Both the ICR (5.9x in 2023 vs. 5.6x in 2022) and the
net debt/EBITDA ratio (11.7x at end-2023 vs. 14.6x at
end-2022) also improved.
The secured debt ratio is still 0%, giving Gecina significant
headroom in relation to its bank covenants.
Liquidity further strengthened, covering bond maturities through
to 2028
The group’s €4.1bn of liquidity net of short-term financing
facilities is considerably higher than the long-term target of
€2.0bn, while securing credit spreads on a high volume. To date,
this surplus liquidity makes it possible cover the bond maturities
through to 2028, i.e. one more year than the situation published at
the end of 2022.
As the Group does not have any mortgage debt, there are no
refinancing in this area for the coming years.
Cost of debt: excellent visibility, with 92% hedging on average
through to 2028
The average cost of debt was effectively under control in 2023,
reflecting the relevance of the rate hedging strategy rolled out by
Gecina in previous years. The average cost of drawn debt was 1.1%
in 2023 (0.9% in 2022), while the overall cost of debt (including
undrawn credit lines) came to 1.4% (vs. 1.2% in 2022).
In terms of the sensitivity of the Group’s average cost of
debt, Gecina capitalized on the opportunity offered by a high
volume of disposals during the first half of the year to also
optimize the hedging of its debt. Based on the current level of
debt, the Group’s debt is fully hedged for 2024 and 2025, with its
hedging rate gradually decreasing to reach 90% in 2027, then 70% in
2028. The hedging rate is now 92% on average through to the end
of 2028.
For comparison, Gecina’s debt at end-2022 was 90% hedged on
average through to 2025.
Project pipeline: rental growth potential
Two major projects were delivered in
2023 (20,000 sq.m)
and fully let
- Two projects were delivered during the first half of 2023, with
the “Boétie” office building offering around 10,000 sq.m, fully let
in line with the sector’s prime rents, and the “Ville d’Avray”
residential building (10,000 sq.m), which was also fully let.
- These two projects secured annual headline rental potential of
around €12m.
Committed projects (deliveries for
2024-2025): €280m of investments
still to be made
92% of the committed pipeline for offices is located in
Paris City, with an expected yield of 5.6%. 63% of this
pipeline is pre-let to date, while all of the operations scheduled
for delivery in 2024. This pipeline includes:
Nine projects to be delivered in 2024 (84,000 sq.m),
including three commercial assets (fully pre-let)
- In 2024, nine projects will be delivered, representing over
80,000 sq.m. These expected deliveries include three fully pre-let
office buildings (Mondo and 35 Capucines in Paris CBD and Porte
Sud-Montrouge).
- Potential annualized headline rental volume from the projects
expected to be delivered in 2024 represents around
€46m.
At end-December, €280m were still to be invested on committed
projects, amongst the total of €1.4bn, including €242m by
end-2024.
“Controlled” projects:
€567m of potential investments over a
five-year period
The €1.3bn pipeline of operations “to be committed”, i.e.
“controlled”, groups together the assets held by Gecina that are
currently being vacated and for which a redevelopment project
aligned with Gecina’s investment criteria has been identified.
- This pipeline includes six projects, with four office
buildings, located exclusively in Paris or Neuilly
- Gecina is finalizing its studies on three major projects in
Paris and Neuilly, representing around 90,000 sq.m, which could be
launched in 2024 and early 2025, with their delivery expected for
2027. These buildings, which have already freed up part of their
space, are expected to make a significant contribution to the
growth in Gecina’s financial aggregates with net additional
potential rents of €35m to €40m.
Gecina offering serviced real estate solutions
In the residential sector, in line with the trends
observed on the student rental market, the growing rental demand,
particularly in Paris, shows a stronger appetite for shared
services and optimized spaces.
Gecina has therefore started to offer furnished rental solutions
and optimize apartment sizes, and is now developing dedicated
spaces for services in certain residences (fitness center,
coworking spaces, etc.) within a more hybrid and turnkey approach.
To date, 220 apartments have been furnished in line with this
approach, while 195 will be optimized over the coming months and 12
buildings have benefited from or will soon be subject to work to
offer shared coworking, dining and fitness spaces.
Lastly, the Group has decided to converge its traditional
residential and student activities, and to merge the in-house teams
and the distribution platforms.
In terms of offices, Gecina is also developing
YourPlace, a “ready-for-use” offering in a selection of
high-end buildings in Paris. This offering, designed for users of
small and mid-size units, makes it possible to meet their needs for
flexibility and friction-less experience. The spaces are fitted out
(partitioning, furniture, cabling, etc.) and include a range of
services (cleaning, technical support, dining, etc.). With this
offering, the Group is able to target a new client segment and it
expects to deliver a significant increase in net rental
profitability. At this stage, this commercial approach has been
integrated into various units across 3 buildings, with a further 9
scheduled to be added in 2024.
Alongside this, Gecina has been developing since mid-2023
new solutions, called “Experiences” offering advertising
displays on facades, as well as unique spaces such as rooftop
terraces, gardens and exceptional volumes for events generating
additional revenues of just over €1m in 2023.
2024 guidance: Recurrent net income per share growth of
+5.5% to +6.5% expected (i.e. €6.35 to €6.40)
Thanks to Gecina’s robust achievements in 2023 and its
confidence in its outlook, a proposal will be submitted at the
Shareholders’ General Meeting to pay out a cash dividend of €5.3
per share for 20233.
The results published at end-2023 reflect the excellent level of
the rental markets in Gecina's preferred sectors. This robust
operational performance is being further strengthened by the
ramping up of indexation and the pipeline’s positive contribution
to the Group’s rental income growth. Each of these factors is
expected to continue having a positive impact in 2024.
Alongside this, Gecina’s long debt maturity, active rate hedging
policy and ability to keep its operating costs under control offer
increased visibility over the outlook for recurrent net income
(Group share) growth, with the positive trend from 2023 expected to
continue in 2024.
Gecina therefore expects recurrent net income (Group share)
growth to range from +5.5% to +6.5% in 2024, with between €6.35 and
€6.40 per share.
Crédit photo : PCA
This document does not constitute an offer to sell or a
solicitation of an offer to buy Gecina securities and has not been
independently verified.
If you would like to obtain further information concerning
Gecina, please refer to the public documents filed with the French
Financial Markets Authority (Autorité des marchés financiers, AMF),
which are also available on our internet site.
This document may contain certain forward-looking statements.
Although the Company believes that such statements are based on
reasonable assumptions on the date on which this document was
published, they are by their very nature subject to various risks
and uncertainties which may result in differences. However, Gecina
assumes no obligation and makes no commitment to update or revise
such statements.
2023 earnings
1- APPENDICES
1.1 Financial statements / Net asset value (NAV) /
Pipeline
CONDENSED INCOME STATEMENT AND RECURRENT INCOME
At the Board meeting on February 14, 2024, chaired by Jérôme
Brunel, Gecina’s Directors approved the financial statements at
December 31, 2023. The audit procedures have been completed on
these accounts, and the certification reports have been issued.
The full consolidated financial statements are available on the
Group’s website.
In million euros
Dec 31, 2022
Dec 31, 2023
Change (%)
Gross rental income
625.9
666.8
+6.5%
Net rental income
569.4
609.5
+7.0%
Operating margin for other
business
3.0
1.2
-59.0%
Other net income
3.8
2.1
-43.7%
Overheads
(79.7)
(77.9)
-2.3%
EBITDA
496.5
535.0
+7.8%
Net financial expenses
(83.6)
(90.0)
+7.6%
Recurrent gross income
412.8
445.1
+7.8%
Recurrent net income from
associates
2.4
2.7
+11.9%
Recurrent minority interests
(1.8)
(2.0)
+9.2%
Recurrent tax
(3.6)
(1.6)
-54.1%
Recurrent net income (Group
share) (1)
409.9
444.2
+8.4%
Recurrent net income (Group
share) per share
5.56
6.01
+8.2%
Gains from disposals
5.4
67.0
Na
Change in fair value of
properties
(285.7)
(2,186.4)
Na
Depreciation and amortization
(2.6)
(29.7)
Na
Non-recurring items
(7.7)
0.0
Na
Change in value of financial
instruments
54.7
(66.2)
Na
Other
(4.4)
(16.0)
Na
Consolidated net income
attributable to owners of the parent
169.6
(1,787.2)
Na
Average number of shares over the
period
73,763,378
73,848,175
+0.1%
(1) EBITDA after deducting net
financial expenses, recurrent tax, minority interests, including
income from associates and restated for certain non-recurring
items
CONSOLIDATED BALANCE SHEET
ASSETS
Dec 31, 2022
Dec 31, 2023
LIABILITIES
Dec 31, 2022
Dec 31, 2023
In million euros
In million euros
Non-current assets
20,267.3
17,174.9
Shareholders' equity
12,780.9
10,599.5
Investment properties
18,131.2
15,153.5
Share capital
574.7
575.0
Buildings under redevelopment
1,354.1
1,398.4
Additional paid-in capital
3,303.9
3,307.6
Operating properties
78.4
81.8
Consolidated reserves
8,709.1
8,487.3
Other property, plant and equipment
11.2
9.3
Consolidated net income
169.6
(1,787.2)
Goodwill
183.2
165.8
Intangible assets
13.5
12.8
Shareholders’ equity attributable to
owners of the parent company
12,757.2
10,582.7
Financial receivables on finance
leases
48.9
32.8
Non-controlling interests
23.7
16.7
Financial fixed assets
57.3
51.2
Investments in associates
108.5
86.7
Non-current liabilities
5,591.7
6,051.0
Non-current financial instruments
279.8
181.9
Non-current financial debt
5,298.2
5,784.7
Deferred tax assets
1.2
0.9
Non-current lease obligations
50.1
49.6
Non-current financial instruments
152.2
123.9
Current assets
410.6
473.9
Non-current provisions
91.2
92.7
Properties for sale
207.5
184.7
Trade receivables and related
38.1
35.4
Current liabilities
2,305.2
998.3
Other receivables
91.0
82.9
Current financial debt
1,929.0
599.6
Prepaid expenses
23.4
23.6
Security deposits
87.6
86.4
Current financial instruments
0.0
3.6
Trade payables and related
178.2
185.6
Cash and cash equivalents
50.6
143.7
Current tax and employee-related
liabilities
41.8
58.0
Other current liabilities
68.6
68.7
TOTAL ASSETS
20,677.9
17,648.7
TOTAL LIABILITIES
20,677.9
17,648.7
NET ASSET VALUE
At December 31, 2023
EPRA NRV (Net Reinstatement
Value)
EPRA NTA (Net Tangible Asset
Value)
EPRA NDV (Net Disposal Value)
IFRS equity attributable to
shareholders
10,582.7
10,582.7
10,582.7
Receivable from shareholders
-
-
-
Includes / Excludes
Impact of exercising stock options
Diluted NAV
10,582.7
10,582.7
10,582.7
Includes
Revaluation of investment property
159.0
159.0
159.0
Revaluation of investment property under
construction
-
-
-
Revaluation of other non-current
investments
-
-
-
Revaluation of tenant leases held as
finance leases
0.7
0.7
0.7
Revaluation of trading properties
-
-
-
Diluted NAV at fair value
10,742.4
10,742.4
10,742.4
Excludes
Deferred tax
-
-
x
Fair value of financial instruments
(61.6)
(61.6)
x
Goodwill as a result of deferred tax
-
-
-
Goodwill as per the IFRS balance sheet
x
(165.8)
(165.8)
Intangibles as per the IFRS balance
sheet
x
(12.8)
x
Includes
Fair value of debt (1)
x
x
546.7
Revaluation of intangibles to fair
value
-
x
x
Transfer duties
1,036.1
135.8
x
NAV
11,717.0
10,638.1
11,123.3
Fully diluted number of shares
74,101,680
74,101,680
74,101,680
NAV per share
€158.1
€143.6
€150.1
Unit NAV per share (2)
€166.0
€151.0
€157.5
(1) Fixed-rate debt has been measured at
fair value based on the yield curve at December 31, 2023
(2) Taking into account the residential
portfolio’s unit values
DEVELOPMENT PIPELINE OVERVIEW
Project
Location
Delivery date
Total space (sq.m)
Total investment (€m)
Already invested (€m)
Still to invest (€m)
Yield on cost (est.)
Pre-let (%)
Montrouge - Porte Sud
Inner Rim
Q2-24
12,600
83
100%
Paris - 35 Capucines
Paris CBD
Q2-24
6,300
182
100%
Paris - Mondo
Paris CBD
Q3-24
30,100
387
100%
Paris - 27 Canal
Paris
Q1-25
15,300
123
-
Paris - Icône
Paris CBD
Q1-25
13,300
210
-
Total offices
77,600
984
825
159
5.6%
63%
Paris - Wood'up
Paris
Q1-24
8,000
97
na
Paris - Dareau
Paris
Q2-24
5,500
52
na
Rueil - Arsenal
Rueil
Q2-24
6,000
47
na
Rueil - Doumer
Rueil
Q2-24
5,500
46
na
Bordeaux - Belvédère
Bordeaux
Q3-24
8,000
39
na
Garenne Colombes - Madera
La Garenne Colombes
Q1-25
4,900
43
na
Bordeaux - Brienne
Bordeaux
Q2-25
5,500
26
na
Paris - Glacière
Paris
Q3-25
800
10
na
Paris - Porte Brancion
Paris
Q3-24
2,100
16
na
Paris - Vouillé
Paris
Q1-25
2,400
24
na
Paris - Lourmel
Paris
Q1-25
1,600
17
na
Total residential
50,300
417
296
121
3.7%
Total committed pipeline
127,900
1,401
1,121
280
5.0%
Controlled: Offices
Paris / Neuilly
2026-28
97,100
1,237
729
508
5.3%
Controlled: Residential
9,800
68
9
59
4.0%
Total controlled
106,900
1,305
738
567
5.2%
Total committed + controlled
234,800
2,705
1,859
846
5.1%
Total controlled and likely
47,800
274
105
169
6.3%
TOTAL PIPELINE
282,600
2,979
1,964
1,016
5.2%
1.2 EPRA reporting at December 31, 2023
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.
Moreover, EPRA defined recommendations related to corporate
social responsibility (CSR), called “Sustainable Best Practices
Recommendations.”
(1) European Public Real Estate Association.
12/31/2023
12/31/2022
See Note
EPRA Earnings (in million euros)
433.0
408.8
1.2.1.
EPRA Earnings per share (in euros)
€5.86
€5.54
1.2.1.
EPRA Net Tangible Asset Value (in million
euros)
10,638.1
12,739.0
1.2.2.
EPRA Net Initial Yield
3.9%
3.2%
1.2.3.
EPRA “Topped-up” Net Initial Yield
4.2%
3.5%
1.2.3.
EPRA Vacancy Rate
5.7%
4.6%
1.2.4.
EPRA Cost Ratio (including direct vacancy
costs)
21.6%
21.9%
1.2.5.
EPRA Cost Ratio (excluding direct vacancy
costs)
19.8%
20.0%
1.2.5.
EPRA Property related capex (in million
euros)
383
356
1.2.6.
EPRA Loan-to-Value (excluding duties)
37.9%
36.8%
1.2.7.
EPRA Loan-to-Value (including duties)
35.7%
34.7%
1.2.7.
1.2.1 EPRA recurrent net income
The table below indicates the transition between the recurrent
net income disclosed by Gecina and the EPRA recurrent net
income:
In thousand euros
12/31/2023
12/31/2022
Recurrent net income (Group
share)(1)
444,160
409,909
Depreciation and amortization, net
impairment and provisions
(11,135)
(1,064)
EPRA recurrent net income (A)
433,025
408,845
Average number of shares excluding
treasury shares (B)
73,848,175
73,763,378
EPRA recurrent net income per share
(A/B)
€5.86
€5.54
(1) EBITDA after deduction of net
financial expenses, recurring taxes, minority interests, including
income from equity-accounted investments, and after restatement of
certain exceptional items.
1.2.2 Net Asset Value
In euros per share
12/31/2023
12/31/2022
EPRA NAV NRV
€158.1
€189.5
EPRA NAV NTA
€143.6
€172.2
EPRA NAV NDV
€150.1
€183.8
1.2.3 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:
In %
12/31/2023
12/31/2022
Gecina net capitalization
rate(1)
4.8%
4.0%
Impact of estimated costs and duties
-0.3%
-0.2%
Impact of changes in scope
0.0%
0.0%
Impact of rent adjustments
-0.6%
-0.6%
EPRA net initial yield(2)
3.9%
3.2%
Exclusion of lease incentives
0.3%
0.3%
EPRA Topped-up net initial
yield(3)
4.2%
3.5%
(1) Like-for-like December 2023.
(2) The EPRA net initial yield rate is
defined as the annualized contractual rent, net of property
operating expenses, excluding lease incentives, divided by the
portfolio value including duties.
(3) The EPRA topped-up net initial yield
rate is defined as the annualized contractual rent, net of property
operating expenses, excluding lease incentives, divided by the
portfolio value including duties.
EPRA net initial yield and EPRA
“Topped-up” net initial yield
(in million euros)
Offices
Residential
Total 2023
Investment properties
13,161
3,565
16,726 (3)
Adjustment of assets under development and
land reserves
(1,692)
(251)
(1,943)
Value of the property portfolio in
operation excluding duties
11,469
3,314
14,783
Transfer duties
744
219
963
Value of the property portfolio in
operation including duties
B
12,213
3,533
15,746
Gross annualized IFRS rents
519
131
650
Non recoverable property charges
(16)
(24)
(40)
Annual net rents
A
504
107
611
Rents at the expiration of the lease
incentives or other rent discount
57
57
“Topped-up” annual net rents
C
561
107
668
EPRA net initial yield(1)
A/B
4.1%
3.0%
3.9%
EPRA “Topped up” net initial
yield(2)
C/B
4.6%
3.0%
4.2%
(1) The EPRA net initial yield rate is
defined as the annualized contractual rent, net of property
operating expenses, excluding lease incentives, divided by the
portfolio value including duties.
(2) The EPRA topped-up net initial yield
rate is defined as the annualized contractual rent, net of property
operating expenses, excluding lease incentives, divided by the
portfolio value including duties.
(3) Except finance lease, hotel,
headquarter and investment in Euler.
1.2.4 EPRA vacancy rate
In %
12/31/2023
12/31/2022
Offices
6.2%
4.6%
Residential
3.9%
4.5%
● YouFirst Residence
3.8%
4.3%
● YouFirst Campus
4.1%
5.4%
EPRA vacancy rate
5.7%
4.6%
EPRA vacancy rate corresponds to the vacancy rate “spot” at
year-end. 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.
Market rental value of vacant
units (in million euros)
Potential rents (in million
euros)
EPRA vacancy rate at the end of
2023 (in %)
Offices
36
581
6.2%
Residential
5
141
3.9%
● YouFirst Residence
4
113
3.8%
● YouFirst Campus
1
28
4.1%
EPRA vacancy rate
41
722
5.7%
1.2.5 EPRA cost ratios
In thousand euros / in %
12/31/2023
12/31/2022
Property expenses(1)
(209,594)
(177,255)
Overheads(1)
(77,857)
(79,716)
Depreciation and amortization, net
impairment and provisions(2)
(11,135)
(1,064)
Recharges to tenants
152,303
120,836
Rental expenses charged to tenants in
gross rent
Other income/income covering overheads
2,127
(404)
Share in costs of associates
(561)
(361)
Ground rent
EPRA costs (including vacancy costs)
(A)
(144,717)
(137,965)
Vacancy costs
12,247
12,272
EPRA costs (excluding vacancy costs)
(B)
(132,470)
(125,693)
Gross rental income less ground rent
666,835
625,857
Rental expenses charged to tenants in
gross rent
Share in rental income from associates
3,785
2,955
Gross rental income (C)
670,620
628,812
EPRA cost ratio (including vacancy
costs) (A/C)
21.6%
21.9%
EPRA cost ratio (excluding vacancy
costs) (B/C)
19.8%
20.0%
(1) (Marketing costs, eviction allowances,
and time spent by the operational teams directly attributable to
marketing, development or disposals are capitalized or reclassified
as gains or losses on disposals of €21.7 million in 2023 and €13.2
million in 2022 (see Notes 5.5.3.1.1, 5.5.5.1.2 and 5.5.6.5 to the
consolidated financial statements).
(2) Excluding impairment of assets
recognized at historical cost.
1.2.6 Capital expenditure
In million euros
12/31/2023
12/31/2022
Group
Joint ventures
Total
Group
Joint ventures
Total
Acquisitions
n.a.
n.a.
Pipeline
256
n.a.
256
245
n.a.
245
Of which capitalized interest
9
n.a.
9
5
n.a.
5
Maintenance Capex(1)
127
n.a.
127
112
n.a.
112
Incremental lettable space
n.a.
n.a.
No incremental lettable space
98
n.a.
98
91
n.a.
91
Tenant incentives
29
n.a.
29
21
n.a.
21
Other expenses
n.a.
n.a.
Capitalized interest
n.a.
n.a.
Total Capex
383
n.a.
383
356
n.a.
356
Conversion from accrual to cash basis
9
n.a.
9
n.a.
Total capex on cash basis
392
n.a.
392
356
n.a.
356
(1) Capex corresponding to (i) renovation
work on apartments or private commercial surface areas to capture
rental reversion, (ii) work on communal areas, (iii) lessees’
work.
1.2.7 EPRA Loan-to-Value
In million euros
Group
Share of joint ventures
Share of material associates
Non-controlling Interests
Total
Include
Borrowings from Financial Institutions
(1)
145
13
158
Commercial paper (1)
550
550
Hybrids
Bond Loans (1)
5,622
5,622
Foreign Currency Derivatives
Net Payables (2)
305
1
(2)
303
Owner-occupied property (debt)
Current accounts (Equity
characteristic)
15
(15)
Exclude:
Cash and cash equivalents
(144)
(6)
(149)
Net Debt (A) (3)
6,493
8
(18)
6,484
Include:
Owner-occupied property (4)
228
228
Investment properties at fair value
(4)
15,185
93
(31)
15,247
Properties held for sale (4)
185
185
Properties under development (4)
1,398
1,398
Intangibles
13
13
Net Receivables
Financial assets
36
(2)
34
Total Property Value (B) (5)
17,045
93
(33)
17,105
Real Estate Transfer Taxes
1,036
7
(2)
1,041
Total Property Value (incl. RETTs)
(C)
18,081
99
(35)
18,146
Loan-to-Value (a/b)
38.1%
37.9%
LTV (incl. RETTs) (a/c)
35.9%
35.7%
(1) See details of the Group’s financial
debt in note 5.5.5.10.1 to the consolidated accounts.
(2) This item includes current liabilities
(accrued interest, security deposits, trade payables, tax and
Social Security liabilities, other liabilities) net of current
receivables (trade receivables, other receivables and prepaid
expenses).
(3) Adjusted for net payables excluding
accrued interest, net financial debt is €6,236 million.
(4) Block values of buildings and finance
leases, excluding real estate transfer taxes.
(5) Adjusted for intangible assets,
financial assets, and the book value of equity-accounted
investments, the value of property portfolio is €17,082
million.
1.3 Additional information on rental income
1.3.1 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)
Group
Public sector
8%
Consulting/services
18%
Industry
37%
Finance
7%
Media – television
6%
Retail
7%
Hospitality
5%
Technology
11%
Other
1%
Total
100%
Weighting of the top 20 tenants (% of annualized total headline
rents)
Breakdown for office only (not significant for the Residential
portfolio):
Tenant
Group
Engie
7%
Lagardère
3%
WeWork
3%
Boston Consulting Group
3%
Solocal Group
2%
Yves Saint Laurent
2%
EDF
2%
Ministères sociaux
2%
Edenred
1%
Arkema
1%
Eight Advisory
1%
Renault
1%
Lacoste Operations Court 37
1%
LVMH
1%
Ipsen
1%
Jacquemus SAS
1%
Salesforce Com.France
1%
CGI France
1%
MSD
1%
Orange
1%
Top 10
25%
Top 20
36%
1.3.2 Annualized gross rental income
Annualized rental income was up by +€14 million compared to
December 31, 2022, mainly reflecting the disposal effect (–€34
million), the rental dynamics on a like-for-like basis (+€32
million) and the proceeds of building deliveries during the year
net of the loss of rents due to the departure of tenants from
buildings undergoing or expected to undergo redevelopment (+€11
million) and other factors including letting of the assets made
unavailable for rent for more than one year to be renovated (+€5
million).
Note that this annualized rental income includes €22 million
from assets intended to be vacated for redevelopment.
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 €65 million of
potential headline rents.
In million euros
12/31/2023
12/31/2022
Offices
534
520
Residential
132
132
● YouFirst Residence
106
109
● YouFirst Campus
26
23
Total
666
652
1.3.3 Like-for-like rent change factors for 2023 vs.
2022
Group
Like-for-like change
Indexes
Business effects
Vacancy
Other
+6.1%
+4.7%
+1.0%
+0.6%
–0.2%
Offices
Like-for-like change
Indexes
Business effects
Vacancy
Other
+6.5%
+5.3%
+0.6%
+0.8%
–0.2%
Residential
Like-for-like change
Indexes
Business effects
Vacancy
Other
+4.6%
+2.3%
+2.2%
+0.0%
+0.1 %
1.3.4 Volume of rental income by three-year break and end of
leases
Commercial lease schedule
(In million euros)
2024
2025
2026
2027
2028
2029
2030
> 2030
Total
Break-up options
78
84
69
123
45
43
26
114
582
End of leases
60
23
37
100
46
50
71
194
582
1.4 Financial resources
Just like the second part of the previous year, 2023 was marked
by central banks increasing key interest rates in order to control
inflation. The ECB’s key rate increased from 2.5% to 4.5% over the
year. This increase was reflected in long-term rates, although
these began to decrease in late 2023. Despite this highly volatile
macroeconomic environment, Gecina carried out a large volume of
disposals under excellent conditions, enabling it to reduce its
debt volume by nearly €950 million over the year.
In this environment, Gecina was able to rely on its strengths –
the solidity and flexibility of its balance sheet, its low level of
debt, a high volume of liquidity, extensive access to various
sources of financing and a high credit rating – to take the
opportunity to raise a total of €400 million (average maturity 8.5
years) via tap issues on existing bonds. Gecina also continued its
strategy of refinancing undrawn credit lines early throughout the
year, by taking out €1.2 billion of new responsible bank loans with
an average maturity of nearly seven years.
At December 31, 2023, Gecina therefore had immediate liquidity
of €4.7 billion, or €4.1 billion excluding NEU CP, which is
considerably higher than the long-term target of a minimum of €2.0
billion. This excess liquidity notably covers all bond maturities
until 2028 (and therefore in particular the 2025, 2027 and 2028
maturities).
This 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 7.4 years, the interest rate risk hedging is close to 100% over
the next three years and 86% on average until the end of 2029, and
the average maturity of this hedging is 6.2 years. The
loan-to-value (LTV) ratio (including duties) was 34.4%, and the
interest coverage ratio (ICR) stood at 5.9x. Gecina therefore has a
significant margin with respect to all of its banking covenants.
The average cost of debt drawn rose only slightly compared to 2022,
at 1.1%, despite the significant increase in short- and long-term
rates in 2023 compared with 2022.
1.4.1 Debt structure at December 31, 2023
Net financial debt amounted to €6,236 million at the end of
2023.
The main characteristics of the debt are:
12/31/2023
12/31/2022
Gross financial debt (in million
euros)(1)
6,380
7,219
Net financial debt (in million
euros)(2)
6,236
7,169
Gross nominal debt (in million
euros)(1)
6,445
7,224
Unused credit lines (in million euros)
4,535
4,610
Average maturity of debt (years, restated
from available credit lines)
7.4
7.5
LTV (including duties)
34.4%
33.7%
LTV (excluding duties)
36.5%
35.7%
ICR
5.9x
5.6x
Secured debt/Properties
–
–
(1) Gross financial debt (excluding fair
value related to Eurosic’s debt) = Gross nominal debt + impact of
the recognition of bonds at amortized cost + accrued interest not
yet due + miscellaneous.
(2) Excluding fair value related to
Eurosic’s debt, €6,241 million including these items.
Debt by type
Gecina uses diversified sources of financing. Long-term bonds
represent 89% of the Group’s nominal debt and 55% of the Group’s
authorized financing.
At December 31, 2023, Gecina’s gross nominal debt was €6,445
million and comprised:
● €5,750 million in long-term Green Bonds issued under the Euro
Medium-Term Notes (EMTN) program; ● €145 million in responsible
bank loans; ● €550 million in NEU CP covered by confirmed medium
and long-term credit lines.
1.4.2 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.
Financing and refinancing transactions carried out since the
start of 2023 amounted to €1.7 billion and related in particular
to:
● the raising of €400 million of green bond debt via tap issues
on existing medium and long-term bonds (maturing in 2028, 2032,
2033 and 2036) placed in January, May, October and December 2023.
The average margin on these new bonds was 87 basis points with an
average term of 8.5 years; ● taking out €145 million in responsible
bank loans, with an average term of five years; ● the setting up of
eight new responsible credit lines for a cumulative amount of
€1,165 million (including €635 million at the start of 2024) with
an average maturity of nearly seven years, through the early
renewal of lines maturing in 2024, 2025, and 2026. These new
financing programs all have a margin dependent on the achievement
of CSR objectives, and allowed the Group to renew all of the 2024
bank maturities as well as a large part of the 2025 and 2026
maturities with longer maturities, mainly in 2030 and 2031.
Gecina updated its EMTN program with the AMF in June 2023 and
its Negotiable European Commercial Paper (NEU CP) program with the
Banque de France in May 2023, with caps of €8 billion and €2
billion, respectively.
In 2023, Gecina continued to use short-term resources via the
issue of NEU CPs. At December 31, 2023, the Group’s short-term
resources totaled €550 million, versus €1,574 million at the end of
2022.
1.4.3 Debt repayment schedule
At December 31, 2023, the average maturity of Gecina’s debt,
after allocation of unused credit lines and cash, was 7.4
years.
Debt maturity breakdown after taking into account undrawn
credit lines (in billion euros)
All of the credit maturities up to 2028, including the 2025,
2027 and 2028 bond maturities in particular, were covered by unused
credit lines as at December 31, 2023 (pro forma of the loans taken
out in January 2024) or by free cash.
1.4.4 Average cost of debt
The average cost of the drawn debt amounted to 1.1% in 2023 (and
1.4% for total debt), slightly higher than in 2022. This limited
increase in the average cost of debt, despite the very marked
increase in interest rates on the financial markets, is due to the
Group’s financial structure and in particular its hedging
policy.
Average cost of drawn debt
Capitalized interest on development projects amounted to €9.5
million in 2023 (compared with €5.3 million in 2022).
1.4.5 Credit rating
The Gecina group is rated by both Standard & Poor’s and
Moody’s, which maintained the following ratings in 2023:
● A– (stable outlook) for Standard & Poor’s; ● A3 (stable
outlook) for Moody’s.
1.4.6 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 2023, 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 December 31, 2023, the average duration of the portfolio of
firm hedges stood at 6.2 years.
Based on the current level of debt, the hedging ratio will
average close to 100% over the next three years and 86% until
end-2029.
The chart below shows the profile of the hedge portfolio:
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 2024 is fully hedged
against interest rate increase (depending on observed Euribor rate
levels, due to caps).
Based on the existing hedge portfolio, contractual conditions as
at December 31, 2023, and anticipated debt in 2024, a 50 basis
point increase in the interest rate compared to the forward rate
curve of December 31, 2023 would generate a reduction in financial
expenses of about €2 million in 2024. A 50 basis point fall in
interest rates compared with December 31, 2023 would result in an
additional financial expense in 2024 of about €2 million.
1.4.7 Financial structure and banking covenants
Gecina’s financial position as at December 31, 2023, 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:
Benchmark standard
Balance at 12/31/2023
LTV – Net financial debt/revalued block
value of property holding (excluding duties)
Maximum 60%
36.5%
ICR – EBITDA/net financial expenses
Minimum 2.0x
5.9x
Outstanding secured debt/revalued block
value of property holding (excluding duties)
Maximum 25%
–
Revalued block value of property holding
(excluding duties), (in billion euros)
Minimum 6
17.1
The financial ratios shown above are the same as those used in
the covenants included in all the Group’s loan agreements.
LTV excluding duties was 36.5% at December 31, 2023, (35.7% at
the end of 2022). The ICR stood at 5.9x (5.6x in 2022).
1.4.8 Guarantees given
At the end of December 2023, the Group did not hold any debt
guaranteed by real sureties (i.e. mortgages, lender’s liens,
unregistered mortgages).
Thus, at December 31, 2023, there was no financing guaranteed by
mortgage-backed assets for an authorized maximum limit of 25% of
the total block value of the property portfolio in the various loan
agreements.
1.4.9 Early repayment in the event of a change of
control
Some loan agreements to which Gecina is party and bonds issued
by Gecina provide for mandatory early repayment and/or cancellation
of loans granted and/or a mandatory early repayment liability, if
control of Gecina changes.
On the basis of a total amount of authorizations of €10.4
billion (including unused credit lines) at December 31, 2023, €4.1
billion of bank debt and €5.8 billion of bonds are concerned by
such a clause relative to a change of control of Gecina (in most
cases, this change must lead to a downgrade in the credit rating to
“Non-Investment Grade” for this clause to be activated).
In the case of bonds issued by Gecina, this clause will not be
activated if this downgrade is followed by an upgrade in the
Investment Grade category within 120 days.
1 In two payments of €2.65 on March 6 and July 4, subject to
approval at the Shareholders’ General Meeting 2 In two payments of
€2.65 on March 6 and July 4, subject to approval at the
Shareholders’ General Meeting 3 In two payments of €2.65 on March 6
and July 4, subject to approval at the Shareholders’ General
Meeting
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240214602961/en/
Financial communications Samuel Henry-Diesbach Tel : + 33
(0)1 40 40 52 22 samuelhenry-diesbach@gecina.fr Virginie Sterling
Tel : + 33 (0)1 40 40 62 48 virginiesterling@gecina.fr
Press relations Glenn Domingues Tel : + 33 (0)1 40 40 63
86 glenndomingues@gecina.fr Armelle Miclo Tel. : + 33 (0)1 40 40 51
98 armellemiclo@gecina.fr
Gecina Nom (EU:GFC)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Gecina Nom (EU:GFC)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024
