Gecina (GFC) H1 2024 earnings summary

Executive summary

• Recurring net income per share rose 8.4% in H1 2024, marking the third consecutive year of growth, with Group share recurrent net income up 8.6% to €235.1 million.

• Portfolio valuation stabilized (+0.2% like-for-like), with NTA at €142.1 per share (-1% in six months), supported by strong rental uplifts in central office (+14%) and residential (+15%) segments.

• Balance sheet remains robust with LTV at 35.0%, ICR at 6.7x, and €4.1bn in liquidity covering bond redemptions through 2028.

• Strategic focus on central locations and operational outperformance in both office and residential segments, with ESG achievements including a 3.4% energy reduction and top ESG ratings.

• Two major development projects (Carreau de Neuilly and Gamma) launched with €280 million capex and over €30 million potential annual rent by 2027.

Financial highlights

• Gross rental income up 3.1% year-over-year to €343.1 million; like-for-like rental growth at 6.3% overall and 6.5% for offices.

• Recurrent net income per share at €3.18 (+8.4%); EBITDA margin improved by 70bp; net financial expenses down 17.1% to €39.4 million.

• EPRA NTA per share at €142.1 (-1% vs. Dec 2023); annualized rents at €675 million, up €9 million from December 2023.

• Rental margin improved by 80bp to 91.3%; EPRA earnings per share rose to €3.11 from €2.86.

• Consolidated net income at €89.5 million (vs. -€607.4 million in H1 2023 due to negative revaluations).

Outlook and guidance

• 2024 guidance confirmed: recurrent net income per share expected to grow 5.5%–6.5% (€6.35–€6.40 per share).

• Pipeline of committed and controlled projects expected to generate €100–120 million in additional annualized rental income by 2027/28.

• Confidence in achieving year-end guidance, supported by leasing activity, pipeline deliveries, and operated asset strategies.