Gecina (GFC) Q3 2024 TU earnings summary

Executive summary

• Gross rental income increased by 6.7% like-for-like for the first nine months of 2024, mainly due to indexation and strong rental reversion, especially in central Paris.

• Significant rental reversion achieved: +14% overall in office, 28% in Paris, 18% in central office locations, and 16.5% in residential.

• Three major development projects delivered on time and on budget: Mondo and 35 Capucines (fully prelet, Paris CBD, high environmental standards) and Dareau (office-to-residential, 92% of apartments delivered, targeting certifications).

• Occupancy rate slightly increased year-over-year, reaching 93.7% as of September 30, 2024.

• Achieved a 95/100 GRESB score, ranking first among office REITs and peer group; 100% of debt now classified as green.

Financial highlights

• Recurring net cash flow and recurrent net income (Group share) expected around €6.40 per share for 2024.

• Like-for-like rental growth driven by indexation and reversion, with indexation impact expected to decrease in coming quarters due to lower inflation.

• Gross rental income up 4.4% on a current basis compared to Q3 2023.

Outlook and guidance

• Inflation-driven indexation impact will diminish in future quarters as Eurozone inflation slows; reversion will continue to support cash flow.

• Guidance for next year to be provided with annual results.

• 2024 recurrent net income (Group share) now expected to reach around €6.40 per share, reflecting strong leasing and delivery performance.