Gecina

Latest Results (23.12.2024):

Recurrent Net Income Growth

Gecina reported a robust increase in recurrent net income for the full year of 2023, with a growth of 8.2% to €6.01 per share. This improvement was driven by strong rental trends and effective management of rental expenses, overheads, and financial expenses. The company's strategic focus on enhancing its rental income has significantly contributed to this positive financial outcome.

Pipeline Contributions

The positive impact of Gecina's development pipeline was evident in its 2023 financial results, contributing an additional €22 million in net rental income. Key projects such as the "157 CDG" in Neuilly and the "l1ve" building in Paris' Central Business District, along with other developments, played a crucial role in boosting rental income, despite some temporary effects from assets vacated for redevelopment.

Asset Disposals Impact

Gecina's strategic asset disposals, amounting to €1.3 billion, resulted in a net change of -€15 million in rental income for 2023. These disposals, primarily completed in the first half of the year, were executed with a yield of around 2.5%, reflecting the company's focus on optimizing its portfolio and maintaining financial stability.

Rental and EBITDA Margins

Gecina achieved a rental margin increase of 40 basis points, reaching 91.4% by the end of 2023. This growth was supported by a higher average occupancy rate and effective management of service charges. Additionally, the EBITDA margin improved by 90 basis points, highlighting the company's successful control over overheads in an inflationary environment.

Net Margin Improvement

The company's net margin saw a significant improvement of 110 basis points in 2023, driven by favorable trends in financial expenses during the second half of the year. Despite a moderate increase in the average cost of debt, Gecina's strategic disposals and strong EBITDA growth contributed to this positive financial performance, underscoring the company's effective financial management.