In This Article:
-
Earnings Per Share (EPS): EUR6.42, reflecting a 21% growth since 2021.
-
Recurring Net Income: Results above guidance, contributing to robust cash flow performance.
-
Rental Uplift: 10% overall, up to 44% in Paris CBD.
-
Like-for-Like Growth: 6.3%, driven by indexation and rental uplift, adding nearly EUR40 million in additional revenues.
-
Disposals: EUR1.3 billion of mature, low-yielding assets in 2023.
-
Debt Reduction: Decreased by almost 20% over two years due to disposals.
-
Portfolio Value Increase: 0.7% on a like-for-like basis.
-
Dividend Proposal: EUR5.45 per share, a EUR0.15 increase per share.
-
Projected Recurring Net Income for 2025: EUR6.6 to EUR6.7 per share, indicating a 2.8% to 4.4% growth.
-
Energy Consumption Reduction: 4.2% in 2024.
-
Carbon Emission Reduction: 12.3% in 2024.
-
Undrawn Credit Facilities: EUR1.3 billion signed, enhancing liquidity profile.
Release Date: February 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Gecina Nom (GECFF) reported a strong financial performance with earnings of EUR6.42 per share, marking a 21% growth since 2021.
-
The company achieved a notable 10% rental uplift, reaching up to 44% in Paris CBD, demonstrating strong leasing performance.
-
Gecina Nom (GECFF) successfully delivered the Mondo project on time and on budget, creating over EUR130 million in value.
-
The company has a sound and healthy balance sheet, with debt reduced by almost 20% over two years, providing capacity for growth and opportunistic acquisitions.
-
Gecina Nom (GECFF) continues to excel in sustainability, improving energy consumption by 4.2% and reducing carbon emissions by 12.3% in 2024.
Negative Points
-
The leasing market was decelerated due to the Olympics and political uncertainties, impacting overall leasing activity.
-
There are concerns about the replicability of the 44% rental uplift in Paris CBD given the current political context in France.
-
Despite a strong balance sheet, there is uncertainty about how Gecina Nom (GECFF) plans to reinvest capital, with no major acquisitions announced.
-
The company faces leasing challenges outside of Paris, with a decrease in occupancy rates in the Western Crescent and other locations.
-
There is potential for a small negative rental reversion in La Defense as the company prepares for re-letting strategies.
Q & A Highlights
Q: Can you elaborate on the 44% rent uplift in Paris CBD and its sustainability given the current political climate in France? A: Benat Ortega, CEO: The fundamentals in the CBD market remain strong despite political uncertainties. While I hesitate to make broad projections, the scarcity of quality products and strong market feedback, particularly for our turnkey offices, suggest continued positive trends.