Regulatory News:
Gecina (Paris:GFC):
- Acceleration of operational trends during the second half of
the year
- Gross rental income up +4.4% like-for-like to €626m (vs. +3.0%
at end-June)
- Occupancy rate rising (+190bp year-on-year, +210bp for
offices)
- Positive reversion of +24% recorded on offices in 2022
- Pipeline’s positive net contribution to rental income (+€5m)
and NAV (+€2.5/share)
- Recurrent net income per share of €5.56, up +4.5% (vs. +3.9% at
end-June)
- €1.8bn of new credit lines and €750m of 11-year bond
placements
- €161m of sales completed or secured, with a premium of +8%
versus end-2021 appraisal values
- 2023 recurrent net income per share expected to reach €5.80 to
€5.90
Very strong commercial activity in 2022
across all asset classes
- Several rental transactions signed in the second half of the
year at around €1,000/sq.m/year
- 100% of the office projects delivered in 2022 or to be
delivered in 2023 let or pre-let
Gross rental income up +4.4%
like-for-like in 2022 (+3.0% for the first half of the
year)
- Average occupancy rate up +190bp year-on-year to
93.1% (+80bp over six months)
- Indexation that is gradually firming up, contributing
+2.1% in 2022, while the latest ILAT index published at
end-December was 5.9%
- Strong rental reversion captured on offices, with
+24% on the buildings relet (+13% at end-June 2022) and over
+10% for residential (+8% during the first half of the
year)
- Pipeline’s positive net contribution, which accelerated
in the second half of the year
- Overheads under control and down slightly in a context
of rising inflation
Proactive management of debt despite an
uncertain context
- Average cost of debt stable in 2022 at 1.2% overall
- €750m of bond debt raised since the start of 2022, with
an average cost of 1.36% and an average maturity of 11
years: bond issue in January 2022, swaps set up in August, and
bond lines tapped in December 2022 and January 2023
- Liquidity surplus of around €1bn, making it possible to
cover current bond maturities through to 2027
- High hedging rate over the short, medium and long term
(over 90% in 2023-2025, and nearly 80% on average through to
end-2028, with an average hedging maturity of 7 years)
Solid financial aggregates in
2022
- Recurrent net income per share up +4.5%
- Portfolio value: -0.6% over 12 months (including value
creation from the committed pipeline), with a positive rent
effect in central sectors offsetting the increase in capitalization
rates
- NTA of €172.2 per share (-2.3% year-on-year)
- NDV of €183.8 per share, up +6.3% thanks to the
valuation of hedging instruments and fixed-rate debt
- LTV including duties of 33.7%, in line
with the best market standards
- 2022 dividend: €5.30 per share, paid in full in cash
1
2023: positive trends to continue, with
+4.3% to +6.1% recurrent net income per share growth
expected
Recurrent net income (Group share) is expected to reach €5.80
to €5.90 per share in 2023, up +4.3% to +6.1%.
Beñat Ortega, Chief Executive Officer: “In 2023, Gecina
will benefit from the embedded increase in the occupancy rate, the
stronger impact of indexation, the positive reversion captured and
the development pipeline’s rental contribution. Alongside this, the
Group’s balance sheet structure offers good visibility over changes
in financial expenses, further strengthening our confidence for the
year and supporting our guidance for 2023”.
Dec-21
Dec-22
Change (%)
Like-for-like
Offices
490.4
498.5
+1.6%
+4.6%
Traditional residential
105.4
106.8
+1.3%
+2.0%
Student residences
17.5
20.5
+17.7%
+14.2%
Gross rental income
613.3
625.9
+2.0%
+4.4%
Recurrent net income (Group share)2
392.0
409.9
+4.6%
Per share (€)
5.32
5.56
+4.5%
LTV (excluding duties)
34.2%
35.7%
+145 bp
LTV (including duties)
32.3%
33.7%
+136 bp
EPRA Net Reinstatement Value (NRV) per
share
193.5
189.5
-2.1%
EPRA Net Tangible Assets (NTA) per
share
176.3
172.2
-2.3%
EPRA Net Disposal Value (NDV) per
share
173.0
183.8
+6.3%
Dividend per share3
5.30
5.30
-
Gross rental income of €625.9m, up +4.4% like-for-like
(vs +3.0% at June 30, 2022 and -0.4% in
2021)
Offices: positive rental trends further strengthened
during the second half of the year
Gross rental income - Offices
Dec 31, 2021
Dec 31, 2022
Change (%)
In million euros
Current basis
Like-for-like
Offices
490.4
498.5
+1.6%
+4.6%
Central areas
354.3
362.6
+2.3%
+4.0%
Paris City
282.9
289.8
+2.4%
+4.1%
- Paris CBD & 5-6-7
174.8
179.7
+2.8%
+4.0%
- Paris - Other
108.1
110.1
+1.8%
+4.3%
Core Western Crescent
71.4
72.8
+2.0%
+3.4%
La Défense
56.5
65.0
+15.2%
+12.6%
Other locations
79.7
70.9
-11.0%
+0.9%
Improvement in the average financial
occupancy rate by +210bp and positive reversion of +24%
Gecina let, relet or renegotiated nearly 100,000 sq.m in
2022, with a strong level of lettings activity during the second
half of the year, against a backdrop of a reduction in the vacancy
rate in the central markets where Gecina operates.
- Nearly three quarters of the transactions concerned
relettings or renewals of leases, primarily at the heart of
Paris.
- Overall, the average reversion captured came to +24% for
2022, thanks to a significant improvement during the second half of
the year (average reversion was +13% at end-June).
- This performance, driven by central sectors in particular, was
further strengthened during the second half of the year, with
reversion reaching +33% in Paris City (vs. +26% at
end-June)
- One quarter of the transactions concerned buildings
that were delivered recently or under development:
- 100% of the buildings delivered in 2022 or to be delivered
in 2023 are now let or pre-let (l1ve and Boétie in Paris CBD,
157 CDG in Neuilly). The rents obtained exceeded the Group’s
initial expectations and are in line with or even higher than
the prime rents observed to date.
The average financial occupancy rate for offices is up
+210bp to 92.8%. The spot rate at end-December 2022 was
95.4%, up from just 90.8% at end-December 2021, illustrating
the robust trend for lettings over the year in 2022.
Iconic transactions confirming the
Group’s ambitious positioning Among the latest rental
transactions secured since the start of 2022, some operations
highlight the very good rental trends for high-quality buildings in
the most central markets.
During the first half of the year, the Group secured
several rental transactions at around €950/sq.m/year in Paris’
Central Business District, including:
- Boétie: 80% of the space pre-let to the Eight
Advisory group (7,800 sq.m), with the remaining 20% let during
the second half of the year.
- 64 Lisbonne: lease signed for the entire building
(7,850 sq.m), anticipating the departure of the tenant currently in
place and making it possible to capture significant reversion.
During the second half of the year, these performance
levels were confirmed, with the remaining vacant spaces let in the
“Boétie” and “l1ve” buildings. In Paris’ CBD, Gecina also let
several iconic buildings at rents close to the market’s new
prime benchmark levels, with around €1,000/sq.m, including:
- 3 Opéra: fully let to a leading financial company
- 44 Champs-Elysées: fully let to a jewelry group
- 16 rue des Capucines: Gecina’s headquarters building, in
which the lower floors were freed up to welcome the consulting firm
Roland Berger at the start of January 2023
More than 85% of the Group’s real estate assets are 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. In these three sectors, the theoretical timeframe to clear
the stock of vacant space is short, particularly in Paris and
Neuilly (around 0.6 years), where it has decreased in the last few
years.
Change in gross rental income for
offices
Like-for-like office rental income
growth came to +4.6% year-on-year, benefiting for +2.0%
from an improvement in the occupancy rate across our buildings,
reflecting the solid commercial performance levels achieved since
the second quarter of 2021, as well as a positive impact for
indexation, which is gradually firming up (+2.3%) and will continue
to ramp up over the coming quarters.
- In the most central sectors
(85% of Gecina’s office portfolio) in Paris City, Neuilly-Levallois
and Boulogne-Issy, like-for-like rental income growth came to
+4.0%, benefiting from:
- an improvement in the occupancy
rate (+1%)
- a positive level of indexation
(+2.2%), which will become stronger over the coming quarters
- and other effects driven primarily by positive reversion (+0.8%)
- On the La Défense market
(8% of the Group’s office portfolio), Gecina’s rental income is up
+12.6% like-for-like, factoring in the impact of a
significant increase in the occupancy rate for the Group’s
buildings, resulting from the major transactions secured recently
on buildings that were previously vacant (Carré Michelet,
Adamas).
On a current basis, rental
income is up +1.6%, with the like-for-like contribution (+€20m) and
the pipeline of operations delivered recently net of the buildings
vacated for redevelopment (+€5m) offsetting the impact of the sales
completed (-€11m).
Lastly, note that the pipeline’s contribution to rental
income growth (contribution from deliveries net of transfers to the
pipeline) is now positive, at around €5m, benefiting from
the leases signed recently for the Anthos (Boulogne), 157 Charles
de Gaulle (Neuilly) and Sunside (La Défense) buildings, as well as
the first rents from the l1ve-Paris CBD building delivered during
the second half of the year, offsetting the impact of the
departures of tenants from buildings being redeveloped (including
Icône – previously Marbeuf – and Flandre).
Residential: acceleration of rental activity, with
reversion potential confirmed and an excellent start to the 2022
academic year
Gross rental income
Dec 31, 2021
Dec 31, 2022
Change (%)
In million euros
Current basis
Like-for-like
Total residential
122.9
127.3
+3.6%
+3.7%
Traditional residential
105.4
106.8
+1.3%
+2.0%
Student residences
17.5
20.5
+17.7%
+14.2%
The residential division’s rental income is up +3.7%
like-for-like. This performance reflects the impact, on an
equivalent basis, of indexation, rental reversion and
the higher occupancy rate in our buildings.
YouFirst Residence:
improvement in operational performance levels Like-for-like,
rental income from traditional residential properties is up
+2.0%. This performance takes into account the impacts of
positive indexation (+1.4%) and the positive
reversion (+0.7%) secured on the apartments relet, with the
rent for new tenants around +10% higher than levels for the
previous tenants on average since the start of the year.
On a current basis, rental income is up +1.3%, reflecting
the impact of the small number of sales completed during the
year.
The average financial occupancy rate for 2022 was stable
over six months and year-on-year, highlighting this portfolio’s
rental resilience.
YouFirst Campus: strong
upturn in activity Rental income from student residences
shows strong growth, with +14.2% like-for-like and +17.7% on a
current basis, reflecting the improvement in the environment
since the third quarter of 2021. This performance is linked
primarily to the marked increase in the occupancy rate for
residences (contributing +8.3%), as well as the significant
reversion captured (contributing +5.3%).
On a current basis, rental income growth also benefited from the
delivery of the Ynov-Ivry residence in the third quarter of 2021,
with the corresponding rental income offsetting the loss of rent
from the Le Bourget residence, which was also sold in the third
quarter of 2021.
The average financial occupancy rate shows a significant
increase over 12 months (+7pts), illustrating the strong upturn in
activity following a 2020-21 academic year that was greatly
disrupted by the consequences of the pandemic.
Financial occupancy rate:
significant improvement (+190bp over 12
months)
Average financial occupancy rate
Dec 31, 2021
Mar 31, 2022
Jun 30, 2022
Sep 30, 2022
Dec 31, 2022
Offices
90.7%
91.1%
91.8%
92.3%
92.8%
Traditional residential
96.8%
96.9%
96.8%
96.5%
96.7%
Student residences
79.0%
92.6%
86.3%
82.7%
86.0%
Group total
91.2%
92.0%
92.3%
92.5%
93.1%
The Group’s average financial occupancy
rate is at a high level, with 93.1%, up +190bp over
12 months and +80bp over six months, reflecting the benefits of
the strong upturn in rental transactions since the second quarter
of 2021. The spot rate at end-December is higher than the
average rate (95.6%), indicating a trend that will continue to
improve over the coming half-year periods.
This performance reflects the robust trend for rental
transactions, the delivery in 2022 of buildings that were fully let
(l1ve-Paris CBD and 157 CDG-Neuilly), the leases signed during
previous half-year periods that came into effect in the second half
of 2022, and the digitalization of the letting processes, making it
possible to reduce transition vacancies in residential assets, as
well as the normalization of occupancy levels for student
residences.
Recurrent net income:
strong growth in 2022
In million euros
Dec 31, 2021
Dec 31, 2022
Change (%)
Gross rental income
613.3
625.9
+2.0%
Net rental income
549.7
569.4
+3.6%
Operating margin for other business
2.8
3.0
+7.6%
Services and other income (net)
4.3
3.8
-12.9%
Overheads
(80.5)
(79.7)
-0.9%
EBITDA - recurrent
476.4
496.5
+4.2%
Net financial expenses
(81.9)
(83.6)
+2.2%
Recurrent gross income
394.5
412.8
+4.7%
Recurrent net income from associates
1.7
2.4
+42.6%
Recurrent minority interests
(1.5)
(1.8)
+22.4%
Recurrent tax
(2.7)
(3.6)
+29.7%
Recurrent net income (Group share)
(1)
392.0
409.9
+4.6%
Recurrent net income (Group share) per
share
5.32
5.56
+4.5%
- 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) came to €5.56 per share, up
+4.5%, thanks to the combination of robust rental trends, the
increase in the rental margin, and the good level of overheads and
financial expenses. Excluding the impact of the sales completed in
2021 and non-recurring items, per-share growth represents +8%.
Like-for-like rental
performance: +€24m This change takes into account the
increase in the occupancy rate, thanks in particular to the leases
signed previously coming into effect, the gradual impact of
indexation and the positive rental reversion secured.
Portfolio rotation: -€12m
net change in rental income This change reflects the impact of the
portfolio’s rotation since the start of 2021. €512m of sales were
completed in 2021, focused primarily on various office buildings
located outside of Paris, with a premium of around +9% versus the
latest appraisal values. In 2022, the €134m of sales achieved a
premium of +8% compared with the end-2021 appraisal values.
Operations relating to the
pipeline (deliveries and redevelopments): +€5m net
change in rental income Recurrent net income (Group share)
benefited from a positive effect for operations relating to the
pipeline, with the impact of building deliveries now higher
than the temporary effects of the assets made unavailable for rent
with a view to being redeveloped.
- +€12m of additional rental income generated by the
recent deliveries of buildings under development (Anthos in
Boulogne, Sunside in La Défense and Ynov-Ivry in 2021, then 157 CDG
in Neuilly and l1ve Paris-CBD in 2022).
- The space made unavailable in buildings to be redeveloped
reduced rental income for the year by -€7m, including the
launch of work to redevelop the Icône (previously 32 Marbeuf in
Paris CBD) and Flandre (Paris City) buildings.
It is important to note that this positive effect is expected
to be confirmed and ramped up in 2023:
- Gecina will benefit from rental income over a whole year
following the delivery of the fully-let l1ve (Paris CBD) and 157
CDG (Neuilly-sur-Seine) buildings.
- In 2023, this will be followed by the delivery of the Boétie
building (Paris-CBD), which has been fully pre-let, as well as
various residential programs (particularly in Ville d’Avray).
Rental margin up +140bp over 12
months: +€7m
contribution
Group
Offices
Residential
Student
Rental margin at Dec 31, 2021
89.6%
91.9%
82.0%
72.5%
Rental margin at Dec 31, 2022
91.0%
93.4%
82.3%
77.8%
The rental margin is up +140bp over 12 months. This increase is
linked primarily to the higher average occupancy rate and costs
being charged back to tenants more effectively.
Overheads down: -€0.8m
reduction In an inflationary context, the Group paid particularly
close attention to changes in its overheads. This focus has started
to deliver benefits across all of the Company’s cost areas.
Financial expenses up
slightly: +€1.8m increase Overall, financial expenses
were stable for the year (+€1.8m), linked mainly to a volume
effect, while the average cost of debt was also stable at 1.2%,
highlighting the Group’s sound balance sheet structure, especially
in terms of hedging efficiency.
Balance sheet and financial
structure: adapted for an
uncertain environment
Ratios
Covenant
Dec 31, 2022
Loan to value (block, excl. duties)
< 60%
35.7%
Loan to value (block, incl. duties)
33.7%
EBITDA / net financial expenses
> 2.0x
5.6x
Outstanding secured debt / net asset value
of portfolio (block, excl. duties)
< 25%
-
Net asset value of portfolio (block, excl.
duties) in billion euros
> 6.0 - 8.0
20.1
Gecina is benefiting from the work carried out in previous
years, during which the Group optimized, further strengthened and
extended its financial structure. Gecina has also aligned its
financing with its CSR convictions, setting up new responsible
credit lines and requalifying all of its outstanding bonds as Green
Bonds.
Since the start of 2022, thanks to its strong financial ratings,
Gecina has effectively capitalized on favorable windows in a
complex debt market environment to secure over €750m of new bond
debt with a long average maturity (11 years) and a reduced average
cost (1.36%).
- €500m bond issue in January 2022, with a maturity of 11 years
and a 0.875% coupon
- Since the start of the second half of 2022, more than €250m of
new debt has been secured, based on a cost of 2.3% and a maturity
of 11 years, with the swaps set up in August (for a rate of 1.2%)
and the financing secured by issuing tap on existing bonds with a
113bp margin in December 2022 and January 2023.
Since the start of 2022, Gecina has also set up nearly €1.8bn
of new credit lines, which are undrawn, with an average
maturity of 7 years, by renewing ahead of schedule €1.6bn with
an average residual maturity of 1.6 years, based on equivalent
financial conditions overall.
As a result, the Group’s financial structure is now particularly
adapted to the new context of rate rises and uncertainty
surrounding expectations for future changes in rates.
In terms of liquidity,
Gecina has €4.6bn of liquidity (primarily undrawn credit lines).
Available liquidity net of short-term financing represents €3.1bn,
higher than our financial policy requiring a minimum of €2.0bn,
making it possible to date to cover the bond maturities through to
2027.
In terms of the sensitivity of the
Group’s average cost of debt, Gecina’s rate hedging
policy stands out through the long maturity of its hedging
instruments (7 years), making it possible to sustainably protect
the average cost of debt. From 2023 to 2025, around 90% of debt
is hedged on average against changes in the Euribor. The
Group’s hedging policy is also aligned with a longer timeframe,
with nearly 80% of debt hedged on average through to the end of
2028.
Average cost of the Group’s debt stable overall at 1.2% This
balance sheet structure, combining long debt maturities with a
comprehensive, long-term hedging framework, makes it possible to
limit the impact of the increase in the average cost of debt. As a
result, the average cost of debt in 2022 was stable compared
with 2021 at 1.2% (0.9% for drawn debt).
LTV of 33.7% including duties At end-December 2022, Gecina had a
loan to value (LTV) ratio of 33.7% including duties (35.7%
excluding duties), up +1.4pts year-on-year. This increase reflects
the impacts of a marginal contraction in the appraisal values and
an increase in net debt over the year by around +€288m. This ratio
is still very comfortably below the bank covenant of 60%.
The ICR represents 5.6x (vs. 5.8x one year ago), with a
secured debt ratio of 0%, giving Gecina significant headroom in
relation to its bank covenants.
Project pipeline:
€2.8bn of outstanding quality projects
underway or to potentially be launched shortly
With a committed pipeline of around €1.7bn and a €1.1bn
controlled and certain pipeline that could be launched over the
coming years, the Group is expected to benefit from a strong
leverage effect on rental income growth between 2023 and 2027.
€1.7bn of committed projects
(deliveries for 2023-2025), nearly €80m of potential
rental income, €473m of investments still to be paid The office
projects under development are concentrated primarily in central
sectors, with 93% of the committed pipeline for offices in Paris
City, for an expected yield on cost of around 5.3%. Nearly 30%
of the committed pipeline is also made up of residential assets. In
total, 18 projects are currently committed to and will be
delivered between 2023 and 2025.
In the second half of 2022, Gecina launched a new very ambitious
redevelopment project: Icône (previously “32 Marbeuf”) in Paris’
Golden Triangle, with delivery scheduled for early 2025. The
building will offer 13,200 sq.m with the best environmental
certifications and a number of outdoor spaces. Two other projects
in Paris have also been added to the committed pipeline, with
Flandre (15,500 sq.m) and 35 Capucines (6,300 sq.m) at the heart of
Paris’ Central Business District and very close to Place de
l’Opéra.
Growth driver for 2023, secured through the lettings
completed during the year Based on the committed scope at
end-2021, the pre-letting rate for the committed pipeline (for the
buildings scheduled for delivery in 2022-2023) is up +33pts
year-on-year, from 67% to 100%, with the letting of all the space
in the l1ve (Paris-CBD) and 157 CDG (Neuilly) buildings, both
delivered in 2022. The Boétie building (Paris-CBD), with delivery
scheduled for the first half of 2023, has also been fully
pre-let.
At end-December, €473m were still to be invested on committed
projects, with €277m by end-2023, €173m in 2024 and €23m in
2025.
€1.1bn of “controlled and certain”
projects to potentially be launched over the coming
half-year periods (deliveries in 2024-2027) The pipeline of
operations “to be committed”, i.e. “controlled and certain”, 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
eight projects, with six offices, 86% of which are located in
Paris or Neuilly. These projects will be able to be committed
to once the administrative authorizations have been obtained and
they have been vacated by their current tenants.
All of these projects are subject to regular reviews in line
with market developments, and the final launch decision can be
taken by Gecina up until the effective redevelopment start
date.
€0.5bn of “likely” controlled
projects over the longer term (possible deliveries in
2026-2027) The “likely” controlled pipeline covers the projects
identified and owned by Gecina for which tenant departures are not
yet certain. The identification of these projects upstream is
making it possible to achieve a potential yield on cost of
around 6%, with a portfolio of potential projects
concentrated primarily in Paris City (c.90%). These projects
will be launched as decided by Gecina in line with real estate
market developments.
Portfolio value:
positive rent effect in central sectors,
globally offsetting an increase in capitalization rates
Breakdown by segment
Value
Net capitalization
rates
Like-for-like change
Incl. pipeline
In million euros
Dec 31, 2022
Dec 31, 2022
Dec 31, 2021
Dec 2022 vs. Dec 2021
Dec 2022 vs. Dec 2021
Offices (incl. retail units)
16,082
4.2%
3.9%
-1.6%
-0.5%
Central areas
13,631
3.6%
3.4%
-0.2%
+0.9%
- incl. Paris Offices
9,510
3.5%
3.3%
+2.0%
+2.7%
- Core Western Crescent (Neuilly/Levallois
Southern Loop)
2,421
4.7%
4.5%
-1.7%
+0.6%
La Défense
1,227
6.0%
5.4%
-6.1%
-6.1%
Other locations
1,225
7.5%
6.6%
-9.1%
-8.8%
Residential (block)
3,951
3.1%
3.0%
-1.8%
-1.0%
Hotel & finance leases
58
Group total
20,092
4.0%
3.7%
-1.6%
-0.6%
Total value: unit appraisals
20,573
-1.6%
-0.6%
The portfolio value (block) came to €20.1bn, with a
-0.6% value adjustment (like-for-like including net value
creation from investments in assets under development) and
-1.6% on a like-for-like basis (excluding value creation on
the pipeline).
Offices: value growth in
central sectors despite the increase in capitalization rates This
moderate adjustment in values for the office portfolio (-0.5%4)
reflects the combination of contrasting effects, with results that
vary depending on the geographic area, highlighting the dominance
of the most central sectors against a backdrop of increased
polarization on the investment markets.
The appraisals show an increase in values(4) for central
sectors (+0.9%), and a downwards adjustment in La Défense in
particular (-6.1%)
The end-2022 appraisals factor in a decompression of
capitalization rates across all the sectors, with a negative
yield effect on valuations of around -5% over 12 months. On the
other hand, the good performance by rental markets during the year
is reflected in a positive rent effect of around +4.5% on
average, but this was particularly marked at the heart of the
central sectors, where it even reached +6.0% in Paris City,
highlighting the excellent level of the most central rental markets
and their ability to sustainably benefit from indexation.
Residential: values down
slightly over 12 months
For the residential portfolio, the valuation retained
shows a slight drop of -1.0% including the net value
creation from assets under development and -1.8%
like-for-like.
This change factors in a moderate downwards adjustment for
traditional residential, partially offset by an increase in value
for student residences (+2.7% year-on-year).
NAV: Net Tangible Assets (NTA) of €172.2 per share (-2.3%
year-on-year) Net Disposal Value (NDV) of
€183.8 (+6.3% year-on-year),
- EPRA Net Tangible Assets (NTA) represent €172.2
per share (-2.3% year-on-year).
- They represent €178.7 per share including the unit
values for residential.
- The EPRA Net Reinstatement Value (NRV) came to
€189.5 per share (-2.1% year-on-year).
- The EPRA Net Disposal Value (NDV) was €183.8 per
share (+6.3% year-on-year).
This change reflects the like-for-like adjustment in the
portfolio value, as well as the impacts of Gecina’s total return
strategy, through the value created by the portfolio under
development in particular.
The change in EPRA Net Tangible Assets (NTA) per share came to
-€4.1, with the following breakdown:
- Dividend paid in 2022:
- €5.30
- 2022 recurrent net income:
+ €5.56
- Like-for-like value adjustment on Office
assets:
- €4.0
- Like-for-like value adjustment on
Residential assets:
- €1.5
- Net value increase for pipeline and
recent deliveries:
+ €2.5
- Other (including IFRS 16):
- €1.4
The significant increase in the Net Disposal Value (NDV), up
+6.3% year-on-year, is linked primarily to the adjustment in
the fair value of financial instruments and the Group’s fixed-rate
debt. The scale of this change reflects the quality of Gecina’s
debt hedging policy, which proved particularly relevant faced
with the sharp rise in interest rates observed in 2022,
highlighting the significance of the embedded protection of the
Group’s balance sheet in this context.
Capital rotation: disposals, acquisitions, investments
€161m of sales completed / under preliminary
agreements / €356m of investments
€134m of sales completed during the year,
achieving a premium of around +8% versus the end-2021 values, and
€28m of additional sales covered by preliminary agreements
This volume of sales, with a premium of around +8% versus the
latest values from end-2021, mainly includes the sale of the Being
building in La Défense, two small buildings in Paris during the
first half of the year, and nearly €34m of unit-based residential
sales. €28m of sales were also covered by preliminary sales
agreements at end-December 2022.
€356m of investments made, primarily on
development projects 70% of the €356m was invested in 2022
for the development pipeline or projects delivered during the year.
The balance corresponds to investments to improve the residential
and commercial portfolio, helping capture the reversion potential.
On May 20, 2022, Gecina acquired 20.1% of the OPCI fund Euler,
making it possible to increase our interest from 19.9% to 40% for
€58m. This structure holds the asset located at 1-3 rue Euler in
Paris’ Central Business District.
Outlook and guidance:
2023 recurrent net income growth of +4% to
+6% expected (between €5.80 and €5.90)
The results published at end-2022 reflect the very good level of
the rental markets in Gecina's preferred sectors, with an increase
in both rental values and occupancy rates for assets. This robust
operational performance is being further strengthened by the
gradual upturn in indexation.
The pipeline’s positive contribution to recurrent net income
growth is expected to ramp up, with the major building deliveries
in 2022 and 2023, further strengthening Gecina’s confidence.
In addition, Gecina’s long debt maturity and active rate hedging
policy will enable it to limit the impact of interest rate rises on
the Group’s financial expenses in 2023.
In a context that therefore requires a cautious approach, Gecina
expects recurrent net income (Group share) to reach €5.80 to
€5.90 per share in 2023, with growth of between +4.3% and
+6.1%.
About Gecina
As a specialist for centrality and uses, Gecina operates
innovative and sustainable living spaces. The Group owns, manages
and develops Europe’s leading office portfolio, with over 97%
located in the Paris Region, and a portfolio of residential assets
and student residences, with over 9,000 apartments. These
portfolios are valued at 20.1 billion euros at end-2022.
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 Euronext 100 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
Photo credits: 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.
2022 earnings
1.1.Financial statements / net asset value (NAV) /
pipeline
CONDENSED INCOME STATEMENT AND RECURRENT INCOME
At the Board meeting on February 15, 2023, chaired by Jérôme
Brunel, Gecina’s Directors approved the financial statements at
December 31, 2022. 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, 2021
Dec 31, 2022
Change (%)
Gross rental income
613.3
625.9
+2.0%
Net rental income
549.7
569.4
+3.6%
Operating margin for other business
2.8
3.0
+7.6%
Services and other income (net)
4.3
3.8
-12.9%
Overheads
(80.5)
(79.7)
-0.9%
EBITDA - recurrent
476.4
496.5
+4.2%
Net financial expenses
(81.9)
(83.6)
+2.2%
Recurrent gross income
394.5
412.9
+4.7%
Recurrent net income from associates
1.7
2.4
+42.6%
Recurrent minority interests
(1.5)
(1.8)
+22.4%
Recurrent tax
(2.7)
(3.6)
+29.7%
Recurrent net income (Group share)
(1)
392.0
409.9
+4.6%
Recurrent net income (Group share) per
share
5.32
5.56
+4.5%
Gains from disposals
24.4
5.4
-78.0%
Change in fair value of properties
460.4
(285.7)
-162.1%
Real estate margin
0.6
0.0
na
Amortization
(11.1)
(9.9)
-11.1%
Net provisions and depreciation
(0.7)
4.9
na
Compensation
0.0
(4.2)
na
Non-recurring overheads
0.0
0.0
na
Non-recurring net financial expenses
0.0
(3.5)
na
Impact of business combination
0.0
0.0
na
Financial amortization and
depreciation
0.0
2.4
na
Change in value of financial instruments
and debt
11.4
54.7
+378.2%
Bond redemption costs and premiums
(31.7)
(0.0)
-100.0%
Share in non-recurrent net income from
associates
2.9
(8.5)
na
Non-recurring tax
0.9
0.2
-80.9%
Non-recurrent minority interests
0.1
3.9
na
Consolidated net income attributable to
owners of the parent
849.3
169.6
-80.0%
(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, 2021
Dec 31, 2022
LIABILITIES
Dec 31, 2021
Dec 31, 2022
In million euros
In million euros
Non-current assets
20,039.8
20,267.3
Shareholders' equity
12,983.2
12,780.9
Investment properties
17,983.5
18,131.2
Share capital
574.3
574.7
Buildings under redevelopment
1,545.0
1,354.1
Additional paid-in capital
3,300.0
3,303.9
Operating properties
78.9
78.4
Consolidated reserves
8,232.7
8,709.1
Other property, plant and equipment
10.4
11.2
Consolidated net income
849.3
169.6
Goodwill
184.7
183.2
Intangible assets
10.6
13.5
Shareholders’ equity attributable to
owners of the parent
12,956.3
12,757.2
Financial receivables on finance
leases
68.1
48.9
Non-controlling interests
26.9
23.7
Financial fixed assets
47.8
57.3
Investments in associates
57.7
108.5
Non-current liabilities
5,324.7
5,591.7
Non-current financial instruments
51.5
279.8
Non-current financial debt
5,169.2
5,298.2
Deferred tax assets
1.7
1.2
Non-current lease obligations
50.6
50.1
Non-current financial instruments
4.7
152.2
Current assets
399.2
410.6
Non-current provisions
100.3
91.2
Properties for sale
209.8
207.5
Trade receivables and related
44.0
38.1
Current liabilities
2,131.1
2,305.2
Other receivables
113.0
91.0
Current financial debt
1,743.8
1,929.0
Prepaid expenses
17.3
23.4
Security deposits
78.4
87.6
Cash and cash equivalents
15.1
50.6
Trade payables and related
188.4
178.2
Current tax and employee-related
liabilities
48.6
41.8
Other current liabilities
71.8
68.6
TOTAL ASSETS
20,439.0
20,677.9
TOTAL LIABILITIES
20,439.0
20,677.9
NET ASSET VALUE
At Dec 31, 2022
EPRA NRV (Net Reinstatement
Value)
EPRA NTA (Net Tangible Asset
Value)
EPRA NDV (Net Disposal
Value)
IFRS equity attributable to
shareholders
12,757.2
12,757.2
12,757.2
Receivable from shareholders
0.0
0.0
0.0
Includes / Excludes
Impact of exercising stock options
Diluted NAV
12,757.2
12,757.2
12,757.2
Includes
Revaluation of investment property
178.3
178.3
178.3
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
12,936.3
12,936.3
12,936.3
Excludes
Deferred tax
-
-
x
Fair value of financial instruments
(127.6)
(127.6)
x
Goodwill as a result of deferred tax
-
-
-
Goodwill as per the IFRS balance sheet
x
(183.2)
(183.2)
Intangibles as per the IFRS balance
sheet
x
(13.5)
x
Includes
Fair value of debt (1)
x
x
843.8
Revaluation of intangibles to fair
value
-
x
x
Transfer duties
1,209.5
127.0
x
NAV
14,018.2
12,739.0
13,596.8
Fully diluted number of shares
73,975,931
73,975,931
73,975,931
NAV per share
€189.5
€172.2
€183.8
(1) Fixed-rate debt has been measured at fair value based on the
yield curve at December 31, 2022
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.)
Average prime yield (BNPPRE /
CBRE)
Pre-let
Paris - Boétie
Paris CBD
Q2-23
10,000
177
100%
Montrouge - Porte Sud
Inner Rim
Q2-24
12,600
83
100%
Paris - 35 Capucines
Paris CBD
Q2-24
6,300
181
-
Paris - Mondo (formerly Bancelles)
Paris CBD
Q3-24
30,100
391
-
Paris - Flandre
Paris
Q3-24
15,500
115
-
Paris - Icône (formerly Marbeuf)
Paris CBD
Q1-25
13,200
213
-
Total offices
87,700
1,160
896
264
5.3%
3.1%
26%
Ville d'Avray
Inner Rim
Q1-23
10,000
78
na
Paris - Wood'up
Paris
Q4-23
8,000
97
na
Paris - Dareau
Paris
Q1-24
5,500
52
na
Rueil - Arsenal
Rueil
Q1-24
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
Q4-24
4,900
43
na
Bordeaux - Brienne
Bordeaux
Q2-25
5,500
26
na
Paris - Porte Brancion
Paris
Q3-24
2,100
16
na
Paris - Glacière
Paris
Q4-23
800
9
na
Paris - Vouillé
Paris
Q1-25
2,400
25
na
Paris - Lourmel
Paris
Q1-25
1,600
16
na
Residential densification
na
600
2
na
Total residential
60,900
496
286
209
3.7%
3.2%
Total committed pipeline
148,600
1,655
1,182
473
4.8%
3.1%
Controlled and certain: Offices
94,100
1,061
656
405
4.8%
3.4%
Controlled and certain:
Residential
10,300
70
10
59
4.0%
3.0%
Total controlled and certain
104,400
1,131
666
464
4.7%
3.4%
Total committed + controlled and
certain
253,000
2,786
1,848
938
4.8%
3.2%
Total controlled and likely
63,400
531
366
165
6.0%
3.3%
TOTAL PIPELINE
316,400
3,316
2,214
1,102
5.0%
3.2%
1.2 | EPRA reporting at December 31, 2022
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.
12/31/2022
12/31/2021
See Note
EPRA Earnings (in million euros)
408.8
380.2
1.2.1.
EPRA Earnings per share (in euros)
€5.54
€5.16
1.2.1.
EPRA Net Tangible Asset Value (in million
euros)
12,739.0
13,024.4
1.2.2.
EPRA Net Initial Yield
3.2%
2.9%
1.2.3.
EPRA “Topped-up” Net Initial Yield
3.5%
3.2%
1.2.3.
EPRA Vacancy Rate
4.6%
8.3%
1.2.4.
EPRA Cost Ratio (including direct vacancy
costs)
21.9%
24.7%
1.2.5.
EPRA Cost Ratio (excluding direct vacancy
costs)
20.0%
22.5%
1.2.5.
EPRA Property related capex (in million
euros)
356
351
1.2.6.
EPRA Loan-to-Value
36.8%
35.3%
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
12/31/2022
12/31/2021
RECURRENT NET INCOME (GROUP
SHARE)(1)
409,909
391,987
Depreciation and amortization, net
impairment and provisions
(1,064)
(11,824)
1. EPRA RECURRENT NET INCOME
(A)
408,845
380,164
Average number of shares excluding
treasury shares (B)
73,763,378
73,681,782
2. EPRA RECURRENT NET INCOME PER SHARE
(A/B)
€5.54
€5.16
(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
The calculation for the Net Asset Value is explained in section
“Net Asset Value.”
In euros per share
12/31/2022
12/31/2021
EPRA NAV NRV
€189.5
€193.5
3. EPRA NAV NTA
€172.2
€176.3
EPRA NAV NDV
€183.8
€173.0
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 %
12/31/2022
12/31/2021
4. GECINA NET CAPITALIZATION
RATE(1)
4.0%
3.7%
Impact of estimated costs and duties
–0.2%
–0.2%
Impact of changes in scope
0.0%
0.0%
Impact of rent adjustments
–0.6%
–0.6%
5. EPRA NET INITIAL YIELD(2)
3.2%
3.0%
Exclusion of lease incentives
0.3%
0.2%
6. EPRA TOPPED-UP NET INITIAL
YIELD(3)
3.5%
3.2%
(1) Like-for-like December 2022.
(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
Traditional residential
Student residences
Total 2022
Investment properties
15,730
3,556
395
19,681
Adjustment of assets under development and
land reserves
(1,445)
(281)
(26)
(1,751)
Value of the property portfolio in
operation excluding duties
14,286
3,276
369
17,930
Transfer duties
865
227
18
1,111
VALUE OF THE PROPERTY PORTFOLIO IN
OPERATION INCLUDING DUTIES
B
15,151
3,503
387
19,041
Gross annualized IFRS rents
513
108
23
643
Non recoverable property charges
(15)
(19)
(4)
(39)
ANNUAL NET RENTS
A
498
89
19
605
Rents at the expiration of the lease
incentives or other rent discount
53
0
0
53
“TOPPED-UP” ANNUAL NET RENTS
C
550
89
19
657
7. EPRA NET INITIAL YIELD(2)
1. A/B
3.3%
2. 2.5%
4.8%
3.2%
8. EPRA “TOPPED UP” NET INITIAL YIELD
(3)
3. C/B
3.6%
4. 2.5%
4.8%
3.5%
(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.
(4) Except finance lease, hotel,
headquarter and investment in Euler.
1.2.4 EPRA VACANCY RATE
In %
12/31/2022
12/31/2021
Offices
4.6%
9.2%
Traditional residential
4.3%
4.5%
Student residences
5.4%
7.3%
9. EPRA VACANCY RATE
4.6%
8.3%
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
2022
(in %)
Offices
25
556
4.6%
Traditional residential
5
108
4.3%
Student residences
1
26
5.4%
10. EPRA VACANCY RATE
5. 31
690
6. 4.6%
1.2.5 EPRA COST RATIOS
In thousand euros/in %
12/31/2022
12/31/2021
Property expenses(1)
(177,255)
(180,861)
Overheads(1)
(79,716)
(80,475)
Depreciation and amortization, net
impairment and provisions(2)
(1,064)
(11,824)
Recharges to tenants
120,836
117,251
Rental expenses charged to tenants in
gross rent
0
0
Other income/income covering overheads
(404)
4,334
Share in costs of associates
(361)
(167)
Ground rent
0
0
11. EPRA COSTS (INCLUDING VACANCY
COSTS) (A)
(137,965)
(151,742)
Vacancy costs
12,272
13,462
12. EPRA COSTS (EXCLUDING VACANCY
COSTS) (B)
(125,693)
(138,280)
Gross rental income less ground rent
625,857
613,332
Rental expenses charged to tenants in
gross rent
0
0
Share in rental income from associates
2,955
2,009
13. GROSS RENTAL INCOME (C)
628,812
615,341
14. EPRA COST RATIO (INCLUDING VACANCY
COSTS) (A/C)
21.9%
24.7%
15. EPRA COST RATIO (EXCLUDING VACANCY
COSTS) (B/C)
20.0%
22.5%
(1) Marketing costs, eviction allowances,
and time spent by the operational teams directly attributable to
marketing, development or disposal projects are capitalized or
reclassified as a result of disposals of €13.2 million in 2022 and
€11.3 million in 2021 (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
12/31/2022
12/31/2021
Group
Joint ventures
Total
Group
Joint ventures
Total
Acquisitions
0
n.a.
0
0
n.a.
0
Pipeline
245
n.a.
245
259
n.a.
259
Of which capitalized interests
5
n.a.
5
4
n.a.
4
Maintenance capex(1)
112
n.a.
112
92
n.a.
92
Incremental lettable space
0
n.a.
0
0
n.a.
0
No incremental lettable space
91
n.a.
91
84
n.a.
84
Tenant incentives
21
n.a.
21
7
n.a.
7
Other expenses
0
n.a.
0
0
n.a.
0
Capitalized interest
0
n.a.
0
0
n.a.
0
16. TOTAL CAPEX
356
n.a.
356
270
7. n.a.
351
Conversion from accrual to cash basis
0
n.a.
31
n.a.
31
17. TOTAL CAPEX ON CASH BASIS
356
n.a.
356
264
8. n.a.
382
(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 as reported
Share of joint ventures
Share of material associates
Non-controlling Interests
Combined
Include
�
�
Borrowings from Financial Institutions
–
–
13
–
13
Commercial paper(1)
1,574
–
–
–
1,574
Hybrids
–
–
–
–
–
Bond Loans(1)
5,578
–
–
–
5,578
Foreign Currency Derivatives
–
–
–
–
–
Net Payables(2)
275
–
2
(2)
274
Owner-occupied property (debt)
–
–
–
–
–
Current accounts (Equity
characteristic)
16
–
–
(16)
0
Exclude
�
�
Cash and cash equivalents
(51)
–
(4)
–
(55)
NET DEBT (A) (3)
7,392
–
10
(18)
7,384
Include
�
�
Owner-occupied property(4)
244
–
–
–
244
Investment properties at fair value(4)
18,179
–
116
(38)
18,256
Properties held for sale(4)
208
–
–
–
208
Properties under development(4)
1,354
–
–
–
1,354
Intangibles
14
–
–
–
14
Net Receivables
–
–
–
–
–
Financial assets
–
–
1
(2)
(2)
TOTAL PROPERTY VALUE (B) (5)
19,997
–
117
(41)
20,073
Real Estate Transfer Taxes
1,226
–
9
(3)
1,232
TOTAL PROPERTY VALUE (INCL. RETTS)
(C)
21,223
–
125
(43)
21,305
18. LOAN-TO-VALUE (A/B)
37.0%
9.
36.8%
19. LTV (INCL. RETTS) (A/C)
34.8%
10.
34.7%
(1) See details of the group’s financial
debt in note 5.5.5.11.1 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 €7,169 million.
(4) Block values of buildings and finance
leases, excluding real estate transfer taxes.
(5) Adjusted for intangible assets and the
book value of equity-accounted investments, the value of property
portfolio is 20,092 million euros.
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
7%
Consulting/services
17%
Industry
35%
Finance
7%
Media – television
6%
Retail
12%
Hospitality
5%
Technology
12%
20. TOTAL
11. 100%
Weighting of the top 20 tenants (% of annualized total headline
rents)
Breakdown for office only (not significant for the Residential
and Student portfolios):
Tenant
Group
ENGIE
7%
LVMH
3%
LAGARDÈRE
3%
WEWORK
3%
BOSTON CONSULTING GROUP
3%
SOLOCAL GROUP
2%
EDF
2%
YVES SAINT LAURENT
2%
MINISTÈRES SOCIAUX
1%
GRAS SAVOYE
1%
BOSTON CONSULTING GROUP & CIE
1%
EDENRED
1%
ARKEMA
1%
RENAULT
1%
IPSEN
1%
LACOSTE OPÉRATIONS COURT 37
1%
JACQUEMUS SAS
1%
SALESFORCE COM.FRANCE
1%
CGI FRANCE
1%
ORANGE
1%
21. TOP 10
12. 27%
22. TOP 20
13. 38%
1.3.2 ANNUALIZED GROSS RENTAL INCOME
Annualized rental income was up by +€46 million compared to
December 31, 2021, mainly reflecting 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 (+€17 million).
€19 million of this annualized rental income came from assets
intended to be vacated for redevelopment.
(in million euros)
12/31/2022
12/31/2021
Offices
520
479
Traditional residential
109
105
Student residences (campus)
23
22
23. TOTAL
652
606
1.3.3 LIKE-FOR-LIKE RENT CHANGE FACTORS FOR 2022 VS
2021
Group
Like-for-like change
Indexes
Business effects
Vacancy
Other
4.4%
2.1%
0.2%
1.8%
0.3%
Offices
Like-for-like change
Indexes
Business effects
Vacancy
Other
4.6%
+2.3%
–0.1%
+2.0%
+0.4%
Total residential
Like-for-like change
Indexes
Business effects
Vacancy
Other
3.7%
1.3%
1.3%
1.2%
–0.1%
1.3.4 VOLUME OF RENTAL INCOME BY THREE-YEAR BREAK AND END OF
LEASES (IN MILLION EUROS)
Commercial lease schedule
2023
2024
2025
2026
2027
2028
2029
>2029
Total
Break-up options
77
97
77
59
85
40
25
102
563
End of leases
53
48
23
38
98
46
50
207
563
1.4 | Financial resources
2022 was marked by a sharp rise in short- and long-term interest
rates, accompanied by a clear rise in inflation in a very uncertain
economic and geopolitical context.
Amid this volatile environment, Gecina could rely on the robust
and flexible balance sheet it has built up over the last few years.
The Group’s already significant levels of liquidity at December 31,
2021 were further bolstered by an 11-year Green Bond issue in
January 2022, paying a coupon of 0.875%. Gecina also continued its
strategy of refinancing undrawn credit lines early by taking out
€1.8 billion of new responsible bank loans, with an average
maturity of nearly seven years.
At December 31, 2022, Gecina therefore had immediate liquidity
of €4.7 billion, or €3.1 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 2027 (and therefore in particular the 2023 and 2025
maturities).
This proactive management of the financial structure has ensured
that the Group’s main credit indicators remain at an excellent
level. The maturity of the debt was 7.5 years at the end of 2022,
the interest rate risk hedging is 90% over the next three years and
nearly 80% on average until the end of 2028, and the average
maturity of this hedging is seven years. The loan-to-value (LTV)
ratio (including duties) was 33.7%, and the interest coverage ratio
(ICR) stood at 5.6x. Gecina therefore has a significant margin with
respect to all of its banking covenants. Despite the significant
increase in short- and long-term rates in 2022, the cost of debt
remained stable compared to 2021, at 0.9%, its historical low.
1.4.1 DEBT STRUCTURE AT DECEMBER 31, 2022
Net financial debt amounted to €7,169 million at the end of
2022.
The main characteristics of the debt are:
12/31/2022
12/31/2021
Gross financial debt (in million
euros)(1)
7,219
6,896
Net financial debt (in million
euros)(2)
7,169
6,881
Gross nominal debt (in million
euros)(1)
7,224
6,851
Unused credit lines (in million euros)
4,610
4,455
Average maturity of debt (years, restated
from available credit lines)
7.5
7.4
LTV (including duties)
33.7%
32.3%
LTV (excluding duties)
35.7%
34.2%
ICR
5.6 x
5.8 x
Secured debt/Properties
–
0.2%
(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, €7,177 million including these items.
Debt by type
Breakdown of gross nominal debt (€7.2 billion) Graphic
omitted
Breakdown of authorized financing (€10.3 billion, including €4.6
billion of unused credit lines at December 31, 2022) Graphic
omitted
Gecina uses diversified sources of financing. Long-term bonds
represent 78% of the Group’s nominal debt and 55% of the Group’s
authorized financing.
At December 31, 2022, Gecina’s gross nominal debt was €7,224
million and comprised:
� €5,650 million in long-term Green Bonds issued under the Euro
Medium-Term Notes (EMTN) program;
� €1,574 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 in the 2022
financial year amounted to €2.4 billion and related in particular
to:
� the raising of €650 million of bond debt in the Green Bond
format, via a new €500 million bond (eleven-year maturity and a
0.875% coupon) completed in January 2022 and via €150 million of
extensions to existing long-term issues (maturities in 2033 and
2036) placed in December 2022 (a similar transaction was completed
in January 2023 for €100 million). The average margin on these new
bonds was 78 basis points with an average term of eleven years.
� the setting up of 11 new responsible credit lines covering a
cumulative sum of €1,775 million with an average maturity of nearly
seven years, through the early renewal of lines maturing in 2023,
2024, and 2025. These new financing programs all have a margin
dependent on the achievement of CSR objectives, and allowed the
Group to renew all of the 2023 bank maturities as well as a large
part of the 2024 and 2025 maturities with longer maturities, mainly
in 2029 and 2030. The financial terms of these new financing
programs are in line with those of the lines renewed in
advance.
During the first half of the year, Gecina also made early
repayment of the Group’s latest mortgage financing; the outstanding
capital was €44 million.
Gecina updated its EMTN program with the AMF in June 2022 and
its Negotiable European Commercial Paper (NEU CP) program with the
Banque de France in May 2022, with caps of €8 billion and €2
billion, respectively.
In 2022, Gecina continued to use short-term resources via the
issue of NEU CPs. At December 31, 2022, the Group’s short-term
resources totaled €1,574 million, versus €1,130 million at the end
of 2021.
1.4.3 DEBT REPAYMENT SCHEDULE
As at December 31, 2022, the average maturity of Gecina’s debt
(€7.2 billion), after allocation of unused credit lines and cash,
was 7.5 years.
The following chart shows the debt maturity breakdown after
allocation of unused credit lines at December 31, 2022:
Debt maturity breakdown after taking into account undrawn credit
lines (in billion euros) Graphic omitted
All of the credit maturities up to 2027, including 2023 and 2025
bond maturities in particular, were covered by unused credit lines
as at December 31, 2022 or by free cash. Furthermore, 87% of the
debt has a maturity of more than five years.
1.4.4 AVERAGE COST OF DEBT
The average cost of the drawn debt amounted to 0.9% in 2022 (and
1.2% for total debt), stable compared to 2021. The cost of debt
benefits from the Group’s financial structure, including its
quality financial ratings, high level of liquidity, long average
maturity and ability to anticipate short-term refinancing
challenges, and from its extensive and long hedging structure.
Average cost of drawn debt Graphic omitted
Capitalized interest on development projects amounted to €5.4
million in 2022 (compared with €4.2 million in 2021).
1.4.5 CREDIT RATING
The Gecina Group is rated both by Moody’s and Standard &
Poor’s. In 2022:
� Standard & Poor’s rating is A– stable outlook;
� Moody’s rating is A3 stable outlook.
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 2022, 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, 2022, the average duration of the portfolio of
firm hedges stood at seven years.
Based on the current level of debt, the hedging ratio will
average 90% over the next three years and nearly 80% until
end-2028.
The chart below shows the profile of the hedge portfolio:
Graphic omitted
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 2023 is hedged up to
97% 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, 2022, and anticipated debt in 2023, a 50 basis
point increase in the interest rate compared to the forward rate
curve of December 31, 2022, would generate an additional expense of
about €2 million in 2023. A 50 basis point fall in interest rates
compared to December 31, 2022, would result in a reduction in
financial expenses in 2023 of about €2 million.
1.4.7 FINANCIAL STRUCTURE AND BANKING COVENANTS
Gecina’s financial position as at December 31, 2022, 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 12/31/2022
LTV – Net financial debt/revalued block
value of property holding (excluding duties)
Maximum 60%
35.7%
ICR – EBITDA/net financial expenses
Minimum 2.0x
5.6x
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
20.1
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 35.7% at December 31, 2022, (34.2% at
the end of 2021). The ICR stood at 5.6x (5.8x in 2021).
1.4.8 GUARANTEES GIVEN
At the end of December 2022, the Group did not hold any debt
guaranteed by real sureties (i.e. mortgages, lender’s liens,
unregistered mortgages).
Thus, at December 31, 2022, 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 €10.3
billion (including unused credit lines) at December 31, 2022, €4.1
billion of bank debt and €5.7 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 with
ex-dividend dates of March 6 and July 3, 2023, subject to approval
at the General Shareholders’ Meeting. 2 EBITDA after deducting net
financial expenses, recurrent tax, minority interests, including
income from associates and restated for certain non-recurring
items. 3 In two payments of €2.65 with ex-dividend dates of March 6
and July 3, 2023, subject to approval at the General Shareholders’
Meeting 4 Including the value adjustment (net of capex) for assets
under development
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230215005738/en/
GECINA CONTACTS Financial communications Samuel
Henry-Diesbach Tel: +33 (0)1 40 40 52 22
samuelhenry-diesbach@gecina.fr
Sofiane El Amri Tel: +33 (0)1 40 40 52 74
sofianeelamri@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
