Gecina Nom's Q1 2025 Earnings Call Highlights: Rental Growth Amid Market Challenges.

Gecina Nom (GECFF) reported Q1 2025 earnings, with gross rental income up 3.6% due to like-for-like growth and new asset contributions. Rental uplifts were significant in Paris City (17%) and Paris CBD (27%). Occupancy is expected to improve gradually, and the student housing disposal project is on track. However, the company faces tenant departures, rising concerns about vacancy rates in Paris CBD, and decreasing indexation affecting future rental income growth.

Gecina (GECFF) reported its Q1 2025 earnings, showcasing a 3.6% increase in gross rental income on a current basis compared to Q1 2024. This growth was driven by like-for-like rental income growth of 3.3% and the positive impact of new asset contributions. The company's strong leasing activity, with 41,100 sq.m relet or renewed, further contributed to the rental income increase. Significant rental uplifts were observed in Paris City (17%) and Paris CBD (27%).

The company's CEO, Beñat Ortega, highlighted the solid leasing activity across all geographies and the dual polarization trends that favor both top-quality assets and prime locations. The occupancy rate for the group increased slightly to 93.6% in Q1 2025, compared to the 2024 average of 93.4%.

Gecina's development pipeline is on track, with the Icône project delivered in Q1 2025 and fully let ahead of delivery. The student housing disposal project, expected to close in H1 2025, is also progressing well. The company's guidance for recurrent net income (Group share) for 2025 remains at €6.60 to €6.70 per share, marking a fourth consecutive year of growth.

However, the company faces challenges such as tenant departures and rising concerns about vacancy rates in Paris CBD. Additionally, decreasing indexation may affect future rental income growth. Despite these challenges, Gecina remains committed to delivering value and driving sustained growth in a complex macroeconomic environment.

References:
[1] https://www.morningstar.com/news/business-wire/20250417731826/gecina-business-at-march-31-2025