(Boursier.com) — As of June 30, 2022, Gecina recorded 308.2 million euros in rent, up 2.7% on a like-for-like basis, which reflects the improvement in the occupancy rate and the first increases in indexation.
Net recurring income, Group share amounted to 2.73 euros per share (-0.7%), an increase of +3.9% excluding the effect of disposals carried out in 2021 and non-recurring income received in the 1st quarter 2021.
The NAV (NTA) is up +3% over 6 months at 181.2 euros.
Financial structure
Proactive debt management gives Gecina good financial visibility. An opportunistic bond issue of 500 ME in January 2022, with a coupon of 0.875% for a maturity of 11 years, allows Gecina to increase its liquidity to 3.3 billion euros. Thanks to this proactive management, Gecina has excess liquidity of around €1bn, which enables it to cover its bond maturities until 2027.
The average cost of debt was stable in the 1st half with LTV1 down -150bp in 1 year at 31.9%. Gecina has a high coverage rate in the short term (around 90%), but also in the long term (75% on average until the end of 2028 with an average maturity of coverage of 7.2 years).
Outlook
The results published in the first half of 2022 reflect the good performance of rental markets, an increase in rental values and the occupancy rate of assets, as well as the gradual recovery of indexation. In addition, the positive contribution of the pipeline with major building deliveries over the year, strengthens Gecina’s confidence for the years to come.
Over this first half, Gecina’s operating performance exceeded the Group’s initial expectations on favorable market trends. These encouraging signals, however, are illustrated in a context of rising interest rates which confirms Gecina in the cautious management of its balance sheet.
In a context that requires caution, Gecina raises its net recurring income Group share target to 5.55 euros per share in 2022 (5.50 euros until then), i.e. an expected increase now of +4.3 %, i.e. +7% by neutralizing the contribution in 2021 of the buildings sold and of a non-recurring effect perceived in the 1st half of 2021.