(AOF) – In the first quarter, Gecina recorded gross rents up 6.2% on a like-for-like basis thanks to indexation (+5.2%) and rental reversion (+1.2%). They amounted to 173.8 million euros. At the end of March 2024, the average financial occupancy rate of Gecina’s assets remains generally stable at 94.3%, slightly below the level at the end of March 2023, but slightly above the rate at the end of 2023.
The group aims to be able to launch 3 emblematic restructuring projects in the heart of the most central areas (Paris and Neuilly) over the next 12 months, which will increase the potential for cash flow growth and exploit a reserve of value creation. These projects represent nearly 500 million euros of investments to be made for an additional net rental potential in the long term of 35 million euros to 40 million euros.
This year, net recurring profit, group share, is anticipated to be between 6.35 euros and 6.40 euros per share, up from 5.5% to 6.5%.
Gecina will propose a dividend of 5.3 euros per share for 2023.
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A demand crisis
According to data from the Federation of Real Estate Developers (FPI), the figures for the third quarter of 2022 continue to be alarming. Sales of new collective housing fell by 12.4% over one year, to 19,006 units. Over the first nine months of 2022, the drop reached 10.2%, to 72,670 units.
Reservations are also plummeting due to the collapse of block sales to social landlords and institutional investors. With interest rates rising, institutional investors are renegotiating or halting operations. First-time buyers are penalized by the rise in rates and the tightening of the Pinel system puts off certain private investors.
Due to the sharp rise in construction costs, the FPI estimates that one in six authorized operations is ultimately not carried out for economic reasons.
Faced with this, prices are still rising: the sales prices of new collective housing increased by 5.9% across France in the third quarter of 2022. Ile-de-France is an exception, with a decrease of 0. 9%.