Gecina (GFC) Q1 2025 TU earnings summary

Executive summary

• Gross rental income increased by 3.6% year-over-year in Q1 2025, driven by like-for-like growth, indexation, and new asset contributions, especially in prime locations.

• Like-for-like rental growth reached 3.3%, supported by indexation (+4.2%) and reversion captures, with notable uplifts in central Paris.

• Leasing activity was strong, with 41,100 sq m re-let or renewed in Q1, achieving an average rental uplift of 9% (17% in Paris City, 27% in Paris CBD).

• Guidance for 2025 is confirmed, with recurrent net income (Group share) expected at €6.60–€6.70 per share, up 2.8% to 4.4% versus 2024.

• Development pipeline progressing, with Icône delivered in Q1 2025 and student housing disposal expected to close in H1 2025.

Financial highlights

• Gross rental income reached €180.0m in Q1 2025, up 3.6% on a current basis and 3.3% like-for-like versus Q1 2024.

• Office segment gross rental income rose 5.0% (current) and 3.7% (like-for-like); residential segment up 1.1% like-for-like.

• Annualized headline rents from new leases in Q1 totaled €18.9m.

• Occupancy rate increased to 93.6% in Q1 2025 from 93.4% 2024 average, reflecting strong leasing dynamics.

• Like-for-like rental growth in 'other locations' was down 25% due to tenant departures, though some re-letting has occurred.

Outlook and guidance

• 2025 guidance is reaffirmed, with management citing a solid foundation from Q1 results and continued rental growth.

• Indexation is expected to decrease progressively, likely stabilizing around 2%, with limited impact on 2025 cash flows.

• Management anticipates a more normalized inflation environment and lower interest rates going forward.