Real estate company Gecina, owner of offices in western Paris, published annual results for 2023 on Wednesday, up 8.4%, in the upper range of its forecasts, and expects a further increase in 2024.
Recurring net profit, a benchmark indicator for real estate companies, stood at 444.2 million euros, up 8.4% year-on-year, or 6.01 euros per share.
The group set itself, at the start of 2023, a target of between 5.80 and 5.90 euros per share, which it raised during the year to a range between 5.90 and 6 euros.
It will offer its shareholders a dividend of 5.3 euros per share, the same amount as in 2022.
For 2024, Gecina, which also owns housing in the Paris region and student residences in major French cities, expects recurring net income of between 6.35 and 6.40 euros per share, i.e. growth of 5.5 to 6.5%.
The group benefited from a marked increase in its rents collected. Its offices have benefited from a “polarization effect” well known in office real estate, which makes already popular locations increasingly attractive – and more expensive.
Gecina significantly reduced its net debt, from 7.22 to 6.38 billion euros, allowing it to finance new investments in the renovation and improvement of offices.
“This will allow us to finance significantly more contributory development operations,” said the general director, Beñat Ortega, during a press briefing.
In 2024, Gecina plans to deliver three office buildings: the future premises of Publicis in Paris (17th arrondissement), those of Edenred in Montrouge (Hauts-de-Seine) and another building on Boulevard des Capucines in Paris.