Half Year 2024 Gecina SA Earnings Call Transcript
Key Points
- Net recurring income increased by 8.4% in the first half of 2024.
- Valuation stabilized due to sound rental growth in central locations.
- Strong balance sheet with stable Loan-to-Value (LTV) and excellent hedging of net debt.
- Significant rental uplifts in both residential (+15%) and office segments (+14%).
- Like-for-like rental growth of 6.3% in H1 2024, showing resilience and capacity to beat indexation trends.
- Investment market volumes down by 57% in H1 2024 compared to H1 2023.
- Negative rental reversion in secondary locations, with some areas seeing declines of up to 10%.
- High tenant incentives in Paris area, sometimes reaching 30%-35% for long-term leases.
- Potential challenges in maintaining high rental growth rates in the future.
- Limited number of quality assets available for sale in the market, affecting acquisition opportunities.
Hello, and welcome to the Gecina 2024 half year earnings call. Please note, this call is being recorded. (Operator Instructions)
I will now hand you over to your host Benat Ortega CEO, joined by Nicholas Dutreuil, Deputy CEO in charge of Finance to begin today's conference. Please go ahead, sir.
Good morning, everyone. I would like to thank you for being with us this morning. During this presentation of our H1 2024 results. Let's start with an overview of our financial performance. First, in the first half of 2024, we recorded continuous growth for the third consecutive year with a net recurring income up by 8.4% in euro and per share. Second, valuation has stabilized, notably, thanks to sound rental growth in central location, why yields have been more stable than six months ago. Third, with a broadly stable LTV and excellent hedging of our net debt. Gecina maintains a strong balance sheet that offers room for optionality and visibility. Fourth, during the first as we have worked to
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